Company: OSRH
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001213900-25-056351
Chunk: 57

Company: OSR Holdings, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 57
---

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.

<div align='center'>35</div>

| d. | Cash                 
 and cash equivalents |

The Group considers all highly liquid
financial instruments with original maturities of three months or less when purchased to be cash equivalents.

| e. | Allowance         
 for credit losses |

The Group records an allowance for
credit losses (ACL) under Subtopic 326-20 Financial Instruments - Credit Losses – Measured at Amortized Cost for
the current expected credit losses inherent in its financial assets measured at amortized cost and contract assets. The ACL is a valuation
account deducted from the amortized cost basis to present the net amount expected to be collected. The estimate of expected credit losses
includes expected recoveries of amounts previously written off as well as amounts expected to be written off.

Accounts receivable

The Group uses an aging schedule to
estimate the ACL for trade accounts receivable. This method categorizes trade receivables into different groups based on industry and
the number of days past due. Past due status is measured based on the number of days since the payment due date. The trade receivables
are evaluated individually for expected credit losses if they no longer share similar risk characteristics. The Group determines that
the receivables no longer share similar risk characteristic if they are past due balances over 90 days and over a specified amount.
The Group evaluates the collectability of trade accounts receivables with payments that are more than 90 days past due on an individual
basis to determine if any are deemed uncollectible. Trade accounts receivable balances are deemed uncollectible and written off as a deduction
from the allowance after all means of collection have been exhausted.

| f. | Accounts   
 receivable |

Accounts receivables are recorded at
the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in cash flows from operating
activities in the condensed consolidated statements of cash flows.

| g. | Inventories |

Inventories are stated at the lower
of cost or net realizable value and cost is determined