Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 87

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 87
---
 Expenses

OSR Holding’s R&D expenses consisted primarily of development costs
associated with our product candidates 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 from the middle of 2025, which could
potentially increase to $5.0 million to $6.0 million per quarter.

Operating Loss

Operating loss was $2.9 million for the three months ended March 31, 2025, compared to $3.3 million in the
same period of 2024. The slight improvement was primarily driven by a reduction in SG&A expenses, largely attributable to lower amortization
expenses following a change in the useful lives of certain intangible assets. This benefit was partially offset by an increase in personnel-related
expenses.

Other Income (Expense)

Interest income decreased from $5.5 thousand for the three months ended March 31,
2024 to $4.3 thousand in the same period in 2025, a decrease of 22%. Interest expense increased by $2.9 thousand, or 21%, from $13.5 thousand
in the three months ended March 31, 2024, to $16.4 thousand in the same period in 2025, The increase in interest expense was primarily
due to the addition of approximately $2.6 million in short-term corporate bonds, which were not outstanding during the same period of
the prior year. Other income (gains on foreign currency exchange and foreign currency translation) decreased by $0.3 thousand, from $26.8
thousand for the three months ended March 31, 2024 to $26.5 thousand for the same period in 2025. Other expenses increased significantly
by $8.4 million, from $71.6 thousand to $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