Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 646

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1B
Chunk 646
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 a period of 180 days immediately
following the effective date of the registration statements related to the Initial Public Offering, nor may they be sold, transferred,
assigned, pledged or hypothecated for a period of 180 days immediately following the effective date of the registration statements related
to the Initial Public Offering except to any underwriter and selected dealer participating in the Initial Public Offering and their bona
fide officers or partners. Chardan may not exercise its demand and “piggyback” registration rights after five and seven
years, respectively, after the effective date of the registration statement and may not exercise its demand rights on more than one occasion.

Excise Tax Liability

The Inflation Reduction
Act (“IR Act”) of 2022 imposes a 1% Excise Tax Liability on the repurchase of corporate stock by a publicly traded U.S.
corporation following December 31, 2022. For purposes of the Excise Tax Liability, a repurchase will generally include redemptions,
corporate buybacks and other transactions in which the corporation acquires its stock from a stockholder in exchange for cash or property,
subject to exceptions for de minimis transactions and certain reorganizations.

As a result, subject
to certain rules, the Excise Tax Liability will apply to any redemption by a U.S.-domiciled special purpose acquisition company (“SPAC”)
taking place after December 31, 2022, including redemptions (i) by stockholders in connection with the SPAC’s initial
Business Combination or a proxy vote to extend the lifespan of the SPAC, (ii) by SPACs if the SPAC does not complete a de-SPAC transaction within
the required time set forth in its constituent documents, or (iii) in connection with the wind-up and liquidation
of the SPAC. The financial responsibility for such Excise Tax resides with the Company and the Sponsor. This amount of 1% has been
included in these consolidated financial statements.

At this time, it has been determined that the
IR Act tax provisions have an impact to the Company’s fiscal 2023 income tax provision as there were redemptions by the public stockholders
in November 2023 and May 2024; as a result, the Company recorded $722,278 and $359,957 excise tax liability as of December 31,
2024 and 2023, respectively. In connection with