Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 317

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1A
Chunk 317
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 and possibly longer, until RMC can replace sales of Penumbra’s products by increasing sales of products from other manufacturers.
While RMC intends to replace sales of Penumbra products by becoming the sales representative of other neuro-intervention medical
device equipment manufacturers, as well as expanding sales of products offered by companies it currently represents, such efforts may
take a substantial time period (which RMC cannot predict) for revenues to return to their current levels.

RMC is required under some of its sales agency agreements to make annual
minimum purchases of products, which if not sold may decline in value and require RMC to write-down the value under accounting standards.
In addition, failure to meet sales goals may result in termination of RMC’s contracts with medical product manufacturers. RMC’s
sales are currently exclusively to hospitals, hospital networks and physicians across Korea, so that its business is highly dependent
upon economic conditions and government regulation of the healthcare industry in Korea.

Our principal assets are our interests in our various subsidiaries,
and accordingly, we will depend on distributions and dividends from our subsidiaries to make additional cash investments, pay taxes and
cover our corporate and other overhead expenses.

We are a holding company and have no material assets other than our
ownership interests in our subsidiaries. We are dependent on our subsidiaries for generating revenue or cash flow and have no other means
of generating revenue or operating cash flow. In the future, we may be limited, however, in our ability to cause our subsidiaries to make
dividend payments or other distributions to us due to restrictions contained in any credit agreement to which our subsidiaries are bound.
To the extent that we need funds and our subsidiaries are restricted from making dividend payments or other distributions under applicable
law or regulation or under the terms of their financing arrangements or are otherwise unable to provide such funds, our liquidity and
financial condition could be adversely affected.

The Company has identified material weaknesses in its internal
control over financial reporting, which could adversely affect its ability to report its financial condition and results of operations
accurately and on a timely basis.

Management has concluded that the Company’s internal control over financial reporting
was not effective as of December 31, 2024, due to the identification of material weaknesses. These include (i) improper use of Trust
Account funds for general operating expenses in violation of the Trust Agreement, (ii) failure to obtain timely Audit Committee approval
for related party transactions, (iii) inadequate documentation of related party financing transactions, and (iv) insufficient personnel
in