Cosmos Health Inc. New Standards Disclosure

In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance enhances the transparency and decision usefulness of income tax disclosures, primarily through expanded disclosures related to the effective tax rate reconciliation and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024. The Company adopted this guidance during the year ended December 31, 2025, and the adoption did not have a material impact on the Company’s consolidated financial statements, but resulted in expanded income tax disclosures.

In November 2023, the Financial Accounting Standards Board issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance expands public entities’ segment disclosures by requiring disclosure of significant segment expenses regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this standard for the year ended December 31, 2025, and the related disclosures are included in Note 19 – Segment Reporting.

In November 2024, the Financial Accounting Standards Board issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). This guidance requires public entities to provide additional disclosures about specific expense categories presented within income statement line items, including purchases of inventory, employee compensation, depreciation, and amortization. The guidance also requires disclosure of total selling expenses and, on an annual basis, the definition of selling expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statement disclosures.

In July 2025, the Financial Accounting Standards Board issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update introduces a practical expedient and policy election for estimating expected credit losses on current accounts receivable and contract assets arising from contracts accounted for under ASC 606. The amendments are effective for annual reporting periods beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements.

The Company does not expect the adoption of other recently issued accounting pronouncements to have a material impact on its consolidated financial statements.