Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 286

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 286
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 United States Securities and Exchange Commission (the “SEC”).
These condensed consolidated financial statements include all adjustments consisting of only normal recurring adjustments, necessary
for a fair statement of the results of the interim periods presented. The results of operations for the interim periods presented are
not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending December 31, 2024.
Certain information and note disclosures normally included 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.

d.Cash and cash equivalents

The