Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 49

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 partially offset the impact of unfavorable
KRW exchange rates.

31

Selling,
General and Administrative Expenses

OSR Holding’s SG&A expenses in the three months ended March 31,
2025, consisted mainly of personnel-related expenses, including salaries, retirement payment, benefits, bonus, and travel. Other
SG&A expenses included amortization of intangible assets, research and development expenses, professional services fees, such as
legal, audit, investor relations and press releases, non-income taxes, insurance costs, and employee recruiting and training costs.
SG&A expenses decreased by 13% in the three months ended March 31, 2025, primarily attributable to a decrease of approximately $623
thousand in amortization expense, resulting from the change in the useful life of certain intangible assets to align with the useful
life of other intangible assets. This benefit was partially offset by an increase in personnel-related expenses.

Research and Development (R&D) Expenses

OSR Holding’s R&D expenses consisted primarily of development costs
associated with our product candidates in pre-clinical and clinical trials, and related costs of salaries and contractors. R&D costs
are expensed as incurred. OSR Holdings expects to incur and report R&D related expenses mainly from its subsidiaries actively engaged
in R&D at an estimated amount of $2.5 million to $3.0 million per quarter beginning from the middle of 2025, which could
potentially increase to $5.0 million to $6.0 million per quarter.

Operating Loss

Operating loss was $2.9 million for the three months ended March 31, 2025, compared to $3.3 million in the
same period of 2024. The slight improvement was primarily driven by a reduction in SG&A expenses, largely attributable to lower amortization
expenses following a change in the useful lives of certain intangible assets. This benefit was partially offset by an increase in personnel-related
expenses.

Other Income (Expense)

Interest income decreased from $5.5 thousand for the three months ended March 31,
2024 to $4.3 thousand in the same period in 2025, a decrease of 22%. Interest expense increased by $2.9 thousand, or 21%, from $13.5 thousand
in the three months ended March 31, 2024, to $16.4 thousand in the same period in 2025, The increase in interest expense was primarily
due to the