Company: OSRH
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109054
Chunk: 43

Company: OSR Holdings, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 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 in 2026, which could potentially
increase to $5.0 million to $6.0 million per quarter.

Operating Loss

For the three months ended September 30, 2025, OSR Holdings’
operating loss increased by $236,923, or 7%, compared to the same period in the prior year.

On a year-to-date basis, operating loss increased by $1,871,291, or 19%, for the nine months ended September 30, 2025.

As discussed in the section titled “Selling, General and Administrative Expenses,” this increase was primarily due to the
rise in SG&A expenses beginning in the second quarter of 2025 following the completion of the Business Combination on February 14,
2025.

Other Income (Expense)

OSR Holdings’ other income (expense) consists of interest income,
interest expense, foreign exchange-related gains and losses, and other non-operating items.

For the three months ended September 30, 2025, the Company recorded net other expenses of $686,361, representing an increase of $756,809
compared to the same period in the prior year. The primary drivers of this increase were the loss on change in fair value of financial
liabilities and higher interest expense.

For the nine months ended September 30, 2025, net other expenses increased
significantly to $9,157,369 from $23,392 in the prior-year period, an increase of $9,133,977. This substantial increase was primarily
due to the one-time recognition of approximately $8.5 million in merger-related expenses incurred in connection with the Business Combination
completed on February 14, 2025.

29

Loss Before Income Taxes 

For the three months ended September 30, 2025, OSR Holdings’
loss before income taxes increased by $993,732, or 28%, compared to the same period in the prior year. As previously discussed, this increase
was primarily attributable to higher expenses incurred following the completion of the Business Combination on February 14, 2025.

For the nine months ended September 30