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

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
---
 the indefinite-lived intangible assets. When it is more likely than not that an indefinite-lived intangible
asset is impaired, then the Group calculates the fair value of the intangible asset and performs a quantitative impairment test.

j.Impairment of long--lived assets

Long-lived assets, such as equipment,
vehicles and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested
for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its
carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis,
an impairment loss is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various
valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered
necessary.

k.Leases

The Group is a lessee in several non-cancellable
operating leases, primarily for plants and main offices. The Group does not have a finance lease.

The Group accounts for leases in accordance
with ASC Topic 842, Leases. The Group determines if an arrangement is or contains a lease at contract inception. The Group recognizes
a right-of-use (ROU) asset and a lease liability at the lease commencement date.

For operating leases, the lease liability
is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For finance
leases, the lease liability is initially measured in the same manner and date as for operating leases and is subsequently measured at
amortized cost using the effective-interest method.

Key estimates and judgments include
how the Group determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) lease term, and (3)
lease payments.

●Topic 842 requires a lessee to discount
                                            its unpaid lease payments using the interest rate implicit in the lease or, if that rate
                                            cannot be readily determined, its incremental borrowing rate. Generally, the Group cannot
                                            determine the interest rate implicit in the lease because it does not have access to the
                                            lessor’s estimated residual value or the amount of the lessor’s deferred initial
                                            direct costs. Therefore, the Group generally uses its incremental borrowing rate as the discount