Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 57

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1
Chunk 57
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 unable to meet
its national tax obligations with its assets, we will be subject to the secondary tax liability for any taxes accrued during the period
we hold our shares in OSR. Under the Local Tax Act (of Korea), we may also be subject to the secondary tax liability if OSR fails to pay
its local taxes. The secondary tax liability is equal to the amount of unpaid taxes multiplied by our shareholding ratio of OSR. There
is no assurance that we will not be subject to such tax liabilities or that the Company will have sufficient cash flow to cover such potential
tax liabilities.

In addition, as of December 31, 2024, OSR had deferred tax liabilities
of approximately $28,035,508, resulting from the differences between book and tax basis for assets acquired or created during previous
business combinations as a result of purchase price allocation for accounting purposes, which will be due if and only when certain taxable
events occur in the future which will reverse or eliminate such basis difference (i.e., sales of subsidiaries).

31

Risks Related to the Company Securities

The price of the Company’ Common Stock and warrants may
be volatile.

The price of the Company’ Common Stock and warrants may fluctuate
due to a variety of factors, including:

●actual or anticipated fluctuations in its quarterly and annual
results and those of other public companies in the same or similar industry;

●mergers and strategic alliances in the industry in which it
operates;

●market prices and conditions in the industry in which it operates;

●changes in government regulation;

●potential or actual military conflicts or acts of terrorism;

●the failure of securities analysts to publish research about
the Company, or shortfalls in its operating results compared to levels forecasts by securities analysts;

●announcements concerning the Company or its competitors; and

●the general state of the securities markets.

These market and industry factors may materially reduce the market
price of the Company’ Common Stock and warrants, regardless of its operating performance.

Following the Business Combination, the Company is a controlled
company within the meaning of the Nasdaq Listing Rules and, as a result, will qualify for, and may rely on, exemptions
from certain corporate governance requirements. Stockholders of the Company may not have the same protection afforded to stockholders
of companies that are subject to such governance requirements.

After the Business Combination, Kuk Hyoun Hwang, the Company’s
Chief Executive Officer will control a majority of the voting power of the