Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 14

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 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.

o.Fair
value measurements

The
Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent
possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in
the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following
fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

–Level
                                            1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities
                                            accessible to the reporting entity at the measurement date.

–Level
                                            2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the
                                            asset or liability, either directly or indirectly, for substantially the full term of the
                                            asset or liability.

–Level
                                            3 inputs: Un