Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 21

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 amount
                                            of the net assets of the entity is more than its market capitalization.

13

Internal sources
of information

●evidence is available
                                            of obsolescence or physical damage of the patent technology.

●significant changes
                                            with an adverse effect on the entity have taken place during the period, or are expected
                                            to take place in the near future, in the extent to which, or manner in which, the patent
                                            technology is used or is expected to be used. These changes include the patent technology
                                            becoming idle, plans to discontinue or restructure the operation to which the patent technology
                                            belongs, and plans to dispose of the patent technology before the previously expected date.

●evidence is available
                                            from internal reporting that indicates that the economic performance of the patent technology
                                            is, or will be, worse than expected.

(4)Financial risk management

The Group is exposed to various financial
risks such as market risk (exchange risk, interest rate risk), credit risk and liquidity risk due to various activities. The Group’s
overall risk management policy focuses on volatility in the financial markets and focuses on minimizing any negative impact on financial
performance. Risk management is conducted under the supervision of the finance department according to the policy approved by the Board
of Directors. The finance department identifies, evaluates and manages financial risks in close cooperation with the sales departments.
The Board of Directors provides written policies on overall risk management principles and specific areas such as foreign exchange risk,
interest rate risk, credit risk, use of derivative and non-derivative financial instruments, and investments in excess of liquidity.

Market risk management 

Market risk is the risk of possible
losses which arise from the changes of market factors, such as interest rate, stock price, foreign exchange rate, commodity value and
other market factors related to the fair value or future cash flows of the financial instruments, such as securities, derivatives and
others.

a.Currency risk

The functional currency of the foreign
subsidiary’s operations is the local currency. Therefore, for purposes of the condensed consolidated financial statements, the
results of foreign operations are translated from the local currency into U.S. dollars. Local currency assets and liabilities are translated
at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange
during the period. Resulting translation gains or losses are included in the accompanying condensed consolidated financial statements
as a component of accumulated other comprehensive loss.

b.Interest rate risk