Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 41

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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472,122  
     201,468  
     -270,654  
     -57%
  
    Expenses: 

    Selling, general and administrative expenses 
     6,984,758  
     8,348,471  
     1,363,713  
     20%
  
    Operating loss 
     (6,512,636) 
     (8,147,004) 
     -1,634,368  
     25%
  
    Other income (expense) 
     (93,841) 
     (8,471,009) 
     -8,377,168  
     8,927%
  
    Profit (loss) before income taxes 
     (6,606,477) 
     (16,618,012) 
     -10,011,535  
     152%

Net Sales, Cost of Sales and 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.

RMC’s net sales for the three months ended June 30, 2025, increased
by $253,688, or 29%, compared to the same period in the prior year. However, cost of sales increased by $453,226, or 70%, resulting in
a decline in gross profit of $199,539, or 86%. This disproportionate increase in cost of sales was primarily attributable to a one-time
factor related to a change in the contractual arrangement with one of RMC’s suppliers. Specifically, RMC transitioned from a traditional
purchase-and-resale model to a consignment-based arrangement under which only commission revenue is recognized. As part of this transition,
RMC sold previously held inventory back to the supplier at cost, which materially impacted gross margin for the quarter.

For the
six months ended June 30, 2025, the impact of the transaction was partially normalized. Net sales increased by $104,735, or 6%, while
cost of sales increased by $375,389, or 28%, compared to the same period in the prior year. As a result, gross profit decreased by $270,654,
or 57%. 

27

Selling, General and Administrative Expenses

For the three months ended June 30, 2025, OSR Holdings’ selling,
general and