Company: OSRH
Filing Date: 2025-06-10
Form Type: S-1/A
Source: 0001213900-25-053114
Chunk: 55

Company: OSR Holdings, Inc.
Filing Date: 2025-06-10
Form: S-1/A
Chunk 55
---
 generated by that asset or asset group to its carrying
amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment
loss is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques
including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.

37

| k. | Leases |

The Group is a lessee in several noncancellable
operating leases, primarily for plants and main offices. The Group does not have a finance lease.

The Group accounts for leases in accordance
with ASC Topic 842, Leases. The Group determines if an arrangement is or contains a lease at contract inception. The Group
recognizes a right-of-use (ROU) asset and a lease liability at the lease commencement date.

For operating leases, the lease liability
is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For finance leases,
the lease liability is initially measured in the same manner and date as for operating leases and is subsequently measured at amortized
cost using the effective-interest method.

Key estimates and judgments include
how the Group determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) lease term, and (3)
lease payments.

| ● | Topic                                                                                        
 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit 
 in the lease or, if that rate cannot be readily determined, its incremental borrowing rate.  
 Generally, the Group cannot determine the interest rate implicit in the lease because it     
 does not have access to the lessor’s estimated residual value or the amount of the           
 lessor’s deferred initial direct costs. Therefore, the Group generally uses its incremental  
 borrowing rate as the discount rate for the lease. The Group’s incremental borrowing         
 rate for a lease is the rate of interest it would have to pay on a collateralized basis to   
 borrow an amount equal to the lease payments under similar terms. Because the Group does     
 not generally borrow on a collateralized basis, it uses the interest rate it pays on its     
 noncollateralized borrowings as an input to deriving an appropriate incremental borrowing    
 rate, adjusted for the amount of the lease payments, the lease term, and the effect on that  
 rate of designating specific collateral with a value equal to the unpaid lease payments for  
 that lease.