Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 558

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1B
Chunk 558
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 interest income earned in the Trust Account for payment of the Company's franchise tax and income tax liabilities as permitted by the terms of the Trust Agreement governing the Trust Account and paid $798,589 in franchise and incomes taxes resulting in $219,030 having been withdrawn from the Trust Account and not used to pay franchise and income taxes. As of December 31, 2024, the Company's obligations for franchise taxes has been paid in full. As of December 31, 2024, the Company has outstanding income tax obligations of $358,333 and has recorded prepaid franchise taxes of $78,383 related to future periods.

2.The Company failed to maintain effective internal control over
the timely recognition and payment of excise tax obligations, which resulted in the incurrence of penalties and interest totaling $121,186.
As of December 31, 2024, the Company had recorded total excise tax payable of $843,464.

3.The Company did not maintain effective internal control over
the completeness and accuracy of its liabilities.

4.The Company did not have sufficient personnel in its accounting
and financial reporting group which could result in errors in reporting in the future.

A material weakness is a deficiency, or combination
of deficiencies, in internal control over financial reporting, such that there is reasonable possibility that a material misstatement
of the annual or interim financial statements will not be prevented or detected on a timely basis. Because of its inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

This Annual Report does not
include an attestation report of our independent registered public accounting firm, because as an “emerging growth company”
under the JOBS Act our independent registered public accounting firm is not required to issue such an attestation report.

Remediation Process 

To address the material weaknesses related to
the use of funds withdrawn from the Trust Account in 2023, management has devoted, and plans to continue to devote, significant effort
and resources to the remediation and improvement of its internal control over financial reporting. In particular, management’s
plans include enhanced controls and improved internal communications within the Company and its financial reporting advisors related
to the identification of any new contractual arrangements, as well as controls to ensure the Company has oversight of the cash availability
for operating needs, including more clearly design