Company: OSRH
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109054
Chunk: 72

Company: OSR Holdings, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 72
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 30, 

    2024  
    2025  
    Change $  
    Change % 
  
    Net Sales: 
     2,615,051  
     2,524,536  
     -90,515  
     -3%
  
    Cost of Sales 
     1,963,835  
     2,061,335  
     97,500  
     5%
  
    Gross Profit 
     651,215  
     463,201  
     -188,014  
     -29%
  
    Expenses: 

    Selling, general and administrative expenses 
     10,730,393  
     12,413,670  
     1,683,277  
     16%
  
    Operating loss 
     (10,079,178) 
     (11,950,469) 
     -1,871,291  
     19%
  
    Other income (expense) 
     (23,392) 
     (9,157,369) 
     -9,133,977  
     39,047%
  
    Profit (loss) before income taxes 
     (10,102,570) 
     (21,107,838) 
     -11,005,268  
     109%

Net Sales, Cost of Sales, Gross Profit

OSR Holdings’ net sales, cost of sales, and gross profit are
primarily derived from RMC, its subsidiary engaged in the distribution of medical devices.

For the three months ended September 30, 2025, RMC’s net sales decreased by $195,249, or 24%, compared to the same period in the
prior year. However, cost of sales decreased by $277,889, or 43%, resulting in an increase in gross profit of $82,641, or 46%.

This improvement in profitability was driven by a change in RMC’s contractual arrangement with one of its major suppliers. Specifically,
RMC transitioned from a traditional purchase-and-resale model to a consignment-based arrangement under which only commission revenue
is recognized. Although the new contract was executed in April, the change began to affect revenue recognition starting in July. Management
expects this consignment-based model to enhance gross-margin stability in future periods.

For the nine months ended September 30