Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 328

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 328
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8.5 million, primarily due to the one-time recognition of approximately $8.5 million in merger-related
expenses associated with the business combination that closed on February 14, 2025. 

Loss Before Income Taxes

Loss before income taxes increased by approximately $8.0 million from
$3.4 million for the three months ended March 31, 2024 to $11.4 million in the three months ended March 31, 2025, reflecting the one-time
recognition of $8.5 million in merger-related expenses mentioned above.

Liquidity and Capital Resources

From inception through March 31, 2025, OSR Holdings has incurred significant operating
losses and negative cash flows from its operations. OSR Holdings’ operating loss was $3.3 million for the three months ended
March 31, 2024 and $2.9 million for the three months ended March 31, 2025. As of March 31, 2025, OSR Holdings had an accumulated deficit
of $30.6 million. OSR Holdings has funded its operations primarily through the issuance of common shares and convertible bonds as
well as from bank loans, loans from affiliates and, to a lesser extent, from RMC product revenue. OSR Holdings had $1.6 million in cash
and cash equivalents on March 31, 2025, which consisted primarily of bank deposits. OSR Holdings has incurred significant expenses
in connection with the business combination and the Form S-4, which, together with other expenses, has reduced its available funds
for operations, resulting in the need for immediate capital raising. In response, in February 2025, OSR Holdings entered into an equity
line of credit agreement with an investor for up to $80 million, through which the Company expects to secure ongoing financing.

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Off-Balance Sheet Arrangements

We have no obligations, assets or liabilities which would be
considered off-balance sheet arrangements as of March 31, 2025. We do not participate in transactions that create relationships
with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established
for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing
arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non