Company: OSRH
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109054
Chunk: 17

Company: OSR Holdings, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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. Income statement accounts are translated at average rates for the year.
Gains or losses from remeasurement of foreign currency financial statements into the US dollars are included in current results of comprehensive
income.

m.Revenue recognition

The Group only has revenue from customers.
The Group recognizes revenue when it satisfies performance obligations under the terms of its contracts, and control of its products is
transferred to its customers in an amount that reflects the consideration the Group expects to receive from its customers in exchange
for those products. This process involves identifying the customer contract, determining the performance obligations in the contract,
determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing
revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in
a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available
to the customer and (b) is separately identified in the contract. The Group considers a performance obligation satisfied once it has transferred
control of a good or product to a customer, meaning the customer has the ability to direct the use and obtain the benefit of the good
or product.

n.Income taxes

Income taxes are accounted for under
the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss
and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes the enactment date. The Group recognizes the effect of income
tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the
largest amount that is greater than 50% likely of being realized. Valuation allowances are established when management determines it is
more likely than not that some portion, or all, of the deferred tax assets will not be realized. Changes in recognition or measurement
are reflected in the period in which the change in judgment occurs. The Group reports income tax-related interest and penalties
relating to uncertain tax positions, if applicable, as a component of income tax expense.

11

o.Fair value measurements

The Group utilizes valuation techniques
that