Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 901

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 2
Chunk 901
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 not net cash settlement or conversion of the instrument could be required within 12 months of the balance sheet
date.

Concentration of Credit Risk 

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Deposit Insurance Corporation coverage of $250,000. Any loss incurred or a lack of access to such funds could have a significant
adverse impact on the Company’s financial condition, results of operations, and cash flows.

Warrant Instruments 

The Company accounts for warrants as either equity-classified
or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance
in ASC 480 and ASC 815. The assessment considers whether the instruments are freestanding financial instruments pursuant to ASC 480, meet
the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification
under ASC 815, including whether the instruments are indexed to the Company’s own common shares and whether the instrument holders
could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions
for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance
and as of each subsequent quarterly period end date while the instruments are outstanding. The Company determined that upon review of
the warrant agreement that the Public Warrants (as defined in Note 1) and the Private Placement Warrants (as defined in Note 1) issued
in the Initial Public Offering qualify for equity accounting treatment.

Rights 

In connection with
the Initial Public Offering and the exercise of the over-allotment of up to 6,900,000 Public Units, each Public Unit is
comprised of one share of common stock, $0.0001 par value, a warrant to purchase one share of Common
Stock, and one Public Right to receive one-tenth (1/10) of one share of Common Stock. Simultaneously, with the consummation of
the Initial Public Offering, the Company engaged in a private placement and issued placement units that are identical to the Public
Unit, which included the issuance and delivery of aggregate of 430,000 Placement Rights underlying Placement Units (the
“Placement Rights”, and together with the Public Rights and such other rights as the Company issues from time to time
hereunder