Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 18

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 value of cash and cash
equivalents, trade and other receivables, inventories, prepaid expenses and other current and financial assets, trade and other payable,
short-term borrowing, current operating lease liabilities, and accrued expenses and other current liabilities approximates their fair
value due to the short-term nature of these instruments. The carrying amount reported in the condensed consolidated balance sheets for
notes payable to related party may differ from fair value since the interest rate is fixed.

11

p.Compound Financial Instruments

Compound financial instruments are
convertible bonds that can be converted into equity instruments at the option of the holder. The liability component of a compound financial
instrument is recognized initially at the fair value of a similar liability that does not have an equity conversion right and subsequently
measured at amortized cost until extinguished on conversion or maturity of the bonds. The equity component is recognized initially on
the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component.
Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying
amounts.

q.Accounting pronouncements adopted as of June 30, 2025

In October 2021,
the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts
with Customers, which provides an exception to fair value measurement for contract assets and contract liabilities related to revenue
contracts acquired in a business combination. The ASU requires an entity (acquirer) to recognize and measure contract assets and contract
liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for
the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU is effective for the Company
for annual and interim periods in fiscal years beginning after December 15, 2023. The ASU is applied to business combinations occurring
on or after the effective date. The Group adopted this ASU as of January 1, 2024 and there is no impact on the Group’s condensed
consolidated financial statements.

In November 2023,
the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced
disclosure of significant segment expenses on an annual and interim basis. This ASU will be