OSR Holdings, Inc. Fair Value Disclosure
| (5) | Fair value measurements |
Book value and fair value of financial instruments
The difference between the carrying amount and fair value of the Group’s financial assets and liabilities as of December 31, 2025 and December 31, 2024 are insignificant.
Fair value hierarchy
All financial assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
| ● | Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities |
| ● | Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable |
| ● | Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable |
Fair values of the Group’s financial assets and liabilities as of December 31, 2025 and December 31, 2024, which are accounted as amortized cost, are categorized as Level 3.
Recurring transfer between levels of the fair value hierarchy
Fair value hierarchy classifications of the financial instruments that are measured at fair value level 3 as at December 31, 2025 is as follows (Null at December 31, 2024):
| December 31, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Recurring fair value measurements Financial liabilities at fair value through profit or loss | $ | $ | $ | 2,530,176 | $ | 2,530,176 | ||||||||||
Valuation Techniques and the Inputs
Valuation techniques and inputs used in the recurring and non-recurring fair value measurements categorized within Level 3 of the fair value hierarchy as at December 31, 2025 is as follows (Null at December 31, 2024):
The Group did not change any valuation techniques in determining the fair value, which is categorized within Level 3 of the fair value hierarchy.
| December 31, 2025 | ||||||||||||
| Fair Value | Level | Valuation Techniques | Inputs | |||||||||
| Financial liabilities at fair value through profit or loss | $ | 2,530,176 | 3 | Tsiveriotis- Fernandes model | Stock Volatility, Risk-free rate | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Apr 22, 2025 | |
| 2023 | Apr 17, 2024 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.