OSR | 10-Q: FY2025 Q1 Revenue: USD 761.27 K

Revenue: As of FY2025 Q1, the actual value is USD 761.27 K.

EPS: As of FY2025 Q1, the actual value is USD -1.04.

Segment Revenue

• Net Sales: For the three months ended March 31, 2025, net sales were $761,272, a decrease of 16% compared to $910,225 for the same period in 2024. This decline was primarily due to the termination of a key customer relationship with Penumbra in late 2024.

Operational Metrics

• Gross Profit: Gross profit for the three months ended March 31, 2025, was $168,686, a decrease of 30% from $239,802 in the same period in 2024. The gross margin percentage decreased from 26.3% to 22.2%.
• Operating Loss: Operating loss was $2,917,826 for the three months ended March 31, 2025, compared to $3,302,528 in the same period of 2024, reflecting a 12% improvement.
• Net Loss: The net loss for the three months ended March 31, 2025, was $11,392,814, compared to $3,355,366 for the same period in 2024, primarily due to merger-related expenses.

Cash Flow

• Net Cash Used in Operating Activities: For the three months ended March 31, 2025, net cash used in operating activities was -$64,069, compared to -$498,776 for the same period in 2024.
• Net Cash Provided by Investing Activities: Net cash provided by investing activities was $1,185,591 for the three months ended March 31, 2025, compared to $226,631 for the same period in 2024.
• Net Cash Provided by Financing Activities: Net cash provided by financing activities was $149,381 for the three months ended March 31, 2025, compared to $266,582 for the same period in 2024.

Unique Metrics

• Merger-Related Expenses: A significant increase in other expenses by $8.4 million was 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.

Future Outlook and Strategy

• Core Business Focus: OSR Holdings expects revenue to decrease in 2025 and possibly longer until RMC can replace the sales of Penumbra’s products by increasing other sales or securing additional products from other manufacturers.
• Research and Development (R&D) Expenses: OSR Holdings expects to incur and report R&D related expenses mainly from its subsidiaries actively engaged in R&D at an estimated amount of $2.5 million to $3.0 million per quarter beginning from the middle of 2025, which could potentially increase to $5.0 million to $6.0 million per quarter.