Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 11

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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if it is more likely than not that the indefinite-lived intangible assets are impaired; this includes considering any potential effect
on significant inputs to determining the fair value of the indefinite-lived intangible assets. When it is more likely than not that an
indefinite-lived intangible asset is impaired, then the Group calculates the fair value of the intangible asset and performs a quantitative
impairment test.

j.Impairment of long--lived
assets

Long-lived
assets, such as equipment, vehicles and intangible assets subject to amortization, are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or
asset group to be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset
or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted
cash flow basis, an impairment loss is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined
through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals,
as considered necessary.

k.Leases

The
Group is a lessee in several noncancellable operating leases, primarily for plants and main offices. The Group does not have a finance
lease.

The
Group accounts for leases in accordance with ASC Topic 842, Leases. The Group determines if an arrangement is or contains a lease
at contract inception. The Group recognizes a right-of-use (ROU) asset and a lease liability at the lease commencement date.

For
operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the
lease commencement date. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases
and is subsequently measured at amortized cost using the effective-interest method.

Key
estimates and judgments include how the Group determines (1) the discount rate it uses to discount the unpaid lease payments to present
value, (2) lease term, and (3) lease payments.

●Topic
                                            842 requires a lessee to discount its unpaid lease payments using the interest rate implicit
                                            in the lease or, if that rate cannot be readily determined, its incremental borrowing rate.
                                            Generally, the Group cannot determine the interest rate implicit in the lease because it