Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 20

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 estimates will, by definition, seldom equal the related actual results. The estimates
and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below.

Income taxes 

The Group’s taxable income generated
from these operations are subject to income taxes based on tax laws and interpretations of tax authorities in numerous jurisdictions.
There are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain.

Deferred tax assets are recognized
for deductible temporary differences and unused tax losses to the extent that it is probable that taxable profit will be available against
which the temporary differences and the losses can be utilized. Significant management judgement is required to determine the amount
of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits, together with future
tax planning strategies

Business combinations 

Business combinations are initially
accounted for on a provisional basis. The fair value of assets acquired, liabilities and contingent liabilities assumed are initially
estimated by the Parent taking into consideration all available information at the reporting date. Fair value adjustments on the finalization
of the business combination accounting is retrospective, where applicable, to the period the combination occurred and may have an impact
on the assets and liabilities, depreciation and amortization reported.

Patent technology

Patent technology is recognized in Intangible
assets on the condensed consolidated balance sheets. The Group considers both qualitative and quantitative factors when determining whether
the patent technology may be impaired. For the purpose of assessing impairment, the Group follows its accounting policy disclosed in
Note 2. In assessing whether there is any indication that the patent technology may be impaired, the Group considers, at minimum, the
following indications:

External sources
of information

●there are observable
                                            indications that the patent technology’s value has declined during the period significantly
                                            more than would be expected as a result of the passage of time or normal use.

●significant changes
                                            with an adverse effect on the Group have taken place during the period, or will take place
                                            in the near future, in the technological, market, economic or legal environment in which
                                            the entity operates or in the market to which an asset is dedicated.

●market interest
                                            rates or other market rates of return on investments have increased during the period, and
                                            those increases are likely to affect the discount rate used in calculating an asset’s
                                            value in use and decrease the asset’s recoverable amount materially.

●the carrying