Company: OSRH
Filing Date: 2025-05-28
Form Type: S-1
Source: 0001213900-25-048346
Chunk: 53

Company: OSR Holdings, Inc.
Filing Date: 2025-05-28
Form: S-1
Chunk 53
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 in the Company’s annual audited consolidated financial statements and accompanying notes prepared in accordance with US-GAAP
have been condensed in, or omitted from, these interim financial statements. Accordingly, these unaudited condensed consolidated financial
statements should be read in conjunction with the condensed consolidated financial statements and related notes to the condensed consolidated
financial statements for the fiscal year ended December 31, 2023 included in the Company’s Annual Report on Form S-4 filed with
the SEC on December 27, 2024.

| b. | Principle        
 of consolidation |

The condensed consolidated financial
statements include the accounts of OSR Holdings, Inc. and its subsidiaries. All significant intercompany transactions and balances have
been eliminated in consolidation.

The Company consolidates entities in
which it has a controlling financial interest based on either the variable interest entity (VIE) or voting interest model. The Company
is required to first apply the VIE model to determine whether it holds a variable interest in an entity, and if so, whether the entity
is a VIE. If the Company determines it does not hold a variable interest in a VIE, it then applies the voting interest model. Under the
voting interest model, the Company consolidates an entity when it holds a majority voting interest in an entity.

The Company accounts for investments
in which it has significant influence but not a controlling financial interest using the equity method of accounting.

| c. | Use          
 of estimates |

The preparation of the condensed consolidated
financial statements in conformity with US-GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements
and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant
items subject to such estimates and assumptions include allowance for credit losses, valuation of inventories, valuation of deferred tax
assets, the useful lives of equipment and vehicles, lease liabilities and right-of-use assets, and other contingencies.

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| d. | Cash                 
 and cash equivalents |

The Group considers all highly liquid
financial instruments with original maturities of three months or less when purchased to be cash equivalents.

| e. | Allowance         
 for credit losses |

The Group records an allowance for
credit losses (ACL) under Subtopic 326-20 Financial Instruments - Credit Losses – Measured at Amortized Cost for
the current expected credit losses inherent in its financial assets measured at