Company: OSRH
Filing Date: 2025-01-29
Form Type: S-4/A
Source: 0001213900-25-007923
Chunk: 468

Company: OSR Holdings, Inc.
Filing Date: 2025-01-29
Form: S-4/A
Chunk 468
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 and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. OSR Holdings evaluates its significant estimates on an ongoing basis, including estimates related to the total costs expected to be incurred from the imports and inventory investments for RMC’s medical device business, research and development prepayments, accruals and related expenses, and stock -basedcompensation. OSR Holdings bases its estimates on historical experience and on various other assumptions that OSR Holdings believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. OSR Holdings believes that the accounting policies described below involve a significant degree of judgment and complexity. Accordingly, OSR Holdings believes these are the most critical to aid in fully understanding and evaluating its financial condition and results of operations. For further information, see Note 2, Summary of Significant Accounting Policies, to the audited financial statements included elsewhere in this proxy statement/prospectus. Revenue Recognition We recognize revenue for sale of products at the point in time when the customer obtains control of the goods, which is generally at the time of the delivery. Revenue is recognized at an amount that reflects the consideration to which we are expected to be entitled in exchange for transferred goods. Although currently variable consideration does not exist within our sales transaction, the variable consideration within the transaction price, if any, reflects concessions provided to a customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the ‘expected value’ or ‘most likely amount’ method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognized to the extent that it is highly probable that a significant reversal in the amount of 295 cumulative revenue recognized will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognized as a liability. OSR Holdings’ revenues are currently comprised of product revenue from the sale of medical devices by RMC. The product revenues consist of a single performance obligation, and the payment terms are typically 30 days. Research and Development Prepayments, Accruals and Related Expenses OSR Holdings incurs costs of R&D activities conducted by third -partyservice providers, which include the conduct of preclinical studies and clinical trials. We are required to estimate our prepaid and