Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 16

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 ROU asset is impaired, and if so, the amount of the impairment loss to recognize.

The Group monitors for events or changes
in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability,
a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount
of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance
is recorded in profit or loss.

Operating lease ROU assets are presented
as operating lease right of use assets on the condensed consolidated balance sheets. The current portion of operating lease liabilities
are presented separately on the condensed consolidated balance sheets.

The Group has elected not to recognize
ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Group recognizes the lease payments
associated with its short-term leases as an expense on a straight-line basis over the lease term.

l.Foreign currency translation

The Group has operations in South Korea,
Switzerland, and Germany. Accounting records in foreign operations are maintained in local currencies and remeasured to the US dollars
during the consolidation. Nonmonetary assets and liabilities are translated at historical rates, and monetary assets and liabilities
are translated at exchange rates in effect at the end of the year. Income statement accounts are translated at average rates for the
year. Gains or losses from remeasurement of foreign currency financial statements into the US dollars are included in current results
of comprehensive income.

10

m.Revenue recognition

The Group only has revenue from customers.
The Group recognizes revenue when it satisfies performance obligations under the terms of its contracts, and control of its products
is transferred to its customers in an amount that reflects the consideration the Group expects to receive from its customers in exchange
for those products. This process involves identifying the customer contract, determining the performance obligations in the contract,
determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing
revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations
in a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available
to the customer and (b) is separately identified in the contract. The Group considers a performance obligation satisfied once it has
transferred control of a good or