Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 50

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 addition of approximately $2.6 million in short-term corporate bonds, which were not outstanding during the same period of
the prior year. Other income (gains on foreign currency exchange and foreign currency translation) decreased by $0.3 thousand, from $26.8
thousand for the three months ended March 31, 2024 to $26.5 thousand for the same period in 2025. Other expenses increased significantly
by $8.4 million, from $71.6 thousand to $8.5 million, primarily due to the one-time recognition of approximately $8.5 million in merger-related
expenses associated with the business combination that closed on February 14, 2025. 

Loss Before Income Taxes

Loss before income taxes increased by approximately $8.0 million from
$3.4 million for the three months ended March 31, 2024 to $11.4 million in the three months ended March 31, 2025, reflecting the one-time
recognition of $8.5 million in merger-related expenses mentioned above.

Liquidity and Capital Resources

From inception through March 31, 2025, OSR Holdings has incurred significant operating
losses and negative cash flows from its operations. OSR Holdings’ operating loss was $3.3 million for the three months ended
March 31, 2024 and $2.9 million for the three months ended March 31, 2025. As of March 31, 2025, OSR Holdings had an accumulated deficit
of $30.6 million. OSR Holdings has funded its operations primarily through the issuance of common shares and convertible bonds as
well as from bank loans, loans from affiliates and, to a lesser extent, from RMC product revenue. OSR Holdings had $1.6 million in cash
and cash equivalents on March 31, 2025, which consisted primarily of bank deposits. OSR Holdings has incurred significant expenses
in connection with the business combination and the Form S-4, which, together with other expenses, has reduced its available funds
for operations, resulting in the need for immediate capital raising. In response, in February 2025, OSR Holdings entered into an equity
line of credit agreement with an investor for up to $80 million, through which the Company expects to secure ongoing financing.

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Off-Balance Sheet Arrangements

We have no obligations, assets or liabilities which would be