DEBT OBLIGATIONS |
6 Months Ended |
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Jun. 30, 2025 | |
| DEBT OBLIGATIONS [Abstract] | |
| DEBT OBLIGATIONS |
6.
DEBT OBLIGATIONS
Supplier financing arrangements
The Group utilizes supplier financing arrangements to fund insurance premiums. Under the arrangements, the settlement of the supplier obligations is paid directly by the financiers. The Group pays the financiers a set amount per month over an agreed period of approximately 10 months. These repayments are recognized as financing cash outflows. In the event that the Group defaults on payments to the financiers, the financiers can cancel the related insurance.
At the time of initial recognition of the supplier financing arrangement, an asset (recognized in other assets) and a corresponding debt obligation is recognized representing both the future insurance benefits and the obligation to repay the financiers respectively. The asset is subsequently expensed on a straight-line basis over the period of the insurance term.
As of June 30, 2025, the total amount payable to the financiers was $0.4 million, and was recognized as a current debt obligation. No amounts were outstanding as of December 31, 2024. There were no outstanding payment obligations to the insurance suppliers under this arrangement as of June 30, 2025 or December 31, 2024.
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