Company: OSRH
Filing Date: 2025-06-10
Form Type: S-1/A
Source: 0001213900-25-053114
Chunk: 58

Company: OSR Holdings, Inc.
Filing Date: 2025-06-10
Form: S-1/A
Chunk 58
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 on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes the enactment date. The Group recognizes the effect of income
tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the
largest amount that is greater than 50% likely of being realized. Valuation allowances are established when management determines it is
more likely than not that some portion, or all, of the deferred tax assets will not be realized. Changes in recognition or measurement
are reflected in the period in which the change in judgment occurs. The Group reports income tax-related interest and penalties
relating to uncertain tax positions, if applicable, as a component of income tax expense.

| o. | Fair               
 value measurements |

The Group utilizes valuation techniques that maximize the
use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on
assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering
market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable
inputs, which are categorized in one of the following levels:

| - | Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible 
 to the reporting entity at the measurement date.                                                          |

| - | Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset   
 or liability, either directly or indirectly, for substantially the full term of the asset or liability. |

| - | Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent                                   
 that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset 
 or liability at measurement date.                                                                                                         |

The carrying value of cash and cash
equivalents, trade and other receivables, inventories, prepaid expenses and other current and financial assets, trade and other payable,
short-term borrowing, current operating lease liabilities, and accrued expenses and other current liabilities approximates their fair
value due to the short-term nature of these instruments. The carrying amount reported in the condensed consolidated balance sheets for
notes payable to related party may differ from fair value since the interest rate is fixed.

| p. | Accounting                         
 pronouncements adopted during 2024 |

In October 2021, the F