Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 78

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1
Chunk 78
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 are a minority shareholder may not consult us on business decisions and could take actions without our consent, which could have an
adverse impact on our returns.

If we acquire less than all of the ownership interests in a subsidiary
or if we reduce our interest in a wholly-owned subsidiary, our resulting majority ownership will create additional risks because
we must be sure that any contracts between such subsidiaries and our company or any of our other subsidiaries are conducted on an “arms-length”
basis. As a result, we will be unable to manage majority-owned subsidiaries in the same fashion as our wholly-owned subsidiaries
(where contracts with affiliates need not be on an arms-length basis). These constraints may require management to incur time and
resources to determine “arms-length” provisions of contracts with majority-owned subsidiaries. Minority shareholders
of majority-owned subsidiaries may, after the fact, claim breach of fiduciary duties with respect to contracts that they assert are
not “arms-length” or not fair to the minority shareholders. These types of claims may result in judgments or settlements that
require us or our subsidiaries to pay damages to the minority shareholders.

41

A single or limited number of portfolio companies may comprise
a large proportion of our value.

A large proportion of our value may, at any time, reside in one or
two of our subsidiaries, including intellectual property rights and the value ascribed to the product candidate or program that it is
developing. Our consolidated financial condition and prospects may be materially diminished if the clinical development or potential commercialization
prospects of a subsidiary’s product candidate or program or one or more of the intellectual property rights held by a specific subsidiary
becomes impaired. Furthermore, a large proportion of our consolidated revenue may at any time be derived from one, or a small number of,
licensed technologies, and termination or expiration of licenses to these technologies would likely have a material adverse effect on
our consolidated revenue. Any material adverse impact on the value of a particular subsidiary, including its intellectual property rights
or the clinical development of its product candidate or program, could have a material adverse effect on our consolidated business, financial
condition, results of operations or prospects.

The business of our subsidiary that is a distributor of medical
products is subject to other risks, including risks related to its customer concentration, its holding inventory that may decline in value,
foreign exchange rate fluctuations, its dependency on sales agency agreements and the risks relating to economic conditions and government
regulation of