Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 11

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 policies

a.Basis of presentation

The accompanying unaudited condensed
consolidated financial statements have been prepared pursuant to US-GAAP and reflect all adjustments which are, in the opinion of management,
necessary to a fair presentation of the results of the interim periods presented, under the rules and regulations of the 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, 2025. 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 audited consolidated financial statements and related notes to the audited consolidated financial statements
for the fiscal year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 22,
2025, which is presented in Korean won.

6

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