VARIABLE INTEREST ENTITY

6 Months Ended

Jun. 30, 2025

10.

VARIABLE INTEREST ENTITY

At each reporting period, the Company reassesses whether it remains the primary beneficiary for VIEs consolidated under the VIE model. Pursuant to the guidance under ASC 810, the Company determined that v2vmedtech, inc. (“v2v”) is a VIE and that the Company is the primary beneficiary of v2v. This determination is based on the Company having both power over the most significant activities of v2v, primarily through appointing and holding a majority of the Board and certain benefits through equity ownership. Therefore, the Company consolidated v2v from the acquisition date of its equity interest.

The following table presents the assets and liabilities for VIE:


	AS OF
(in thousands)		June 30, 2025 $		December 31, 2024 $
Assets
Other current assets		34		28
Total assets		34		28
Liabilities
Other current liabilities		522		86
Non-current liabilities		46		54
Total liabilities		568		140
Net (liabilities)/assets		(534	)	(112	)

Included in other current liabilities is a loan to v2v from v2v’s parent entity amounting to $0.03 million as of June 30, 2025 and $0.02 million as of December 31, 2024. This loan has been provided to support v2v’s working capital needs. It is unsecured and repayable on demand. This balance is eliminated in the condensed consolidated financial statements. v2v is wholly financed by the Group. The Group contributed $0.5 million and $0.9 million to v2v to finance its operations during the three months and six months ended June 30, 2025.

Non-controlling Interests

The Company recognizes non-controlling interests related to v2v and provides a roll forward of the non-controlling interests balance, as follows:


(in thousands)	2025 $		2024 $
Balance as of December 31 prior year	(79	)	(403	)
Net (loss)/gain attributable to non-controlling interests	(67	)	197

Balance as of March 31	(146	)	(206	)
Net (loss) attributable to non-controlling interests	(228	)	(112	)
Balance as of June 30	(374	)	(318	)