Essemtec, a subsidiary of the Company, located in Switzerland, participates in a defined benefit obligation plan. Employees in Switzerland are insured against the risks of old age, death and disability. The supreme governing body of the pension fund is the Foundation Council, which is made up of an equal number of representatives from the employees and the employer. The pension fund rules, together with the legal provisions concerning occupational pension plans, constitute the formal regulatory framework of the pension plan. During the year ended December 31, 2024, Essemtec was affiliated with the collective foundation Bâloise Collective BVG foundation. All benefits in accordance with the regulations are reinsured in their entirety with Bâloise within the framework of the corresponding contract. This pension solution reinsures the risks of disability, death and longevity with Bâloise. Bâloise invests the vested pension capital and provides a 100% capital and interest guarantee. This plan was not fully insured in the event of termination of the contract. Effective January 1, 2025, the Company changed the underlying pension plan from Baloise to Profond Vorsorgeeinrichtung ("Profond"). Profond does not provide a guarantee nor reinsure risks.

The standard retirement age is 65 for women and men. Employees are entitled to early retirement with a reduced old-age pension. The amount of the old-age pension is the result of multiplying the individual retirement savings account at the time of retirement by a conversion rate set out in the pension-fund rules. The retirement benefits can also be paid out in the form of a capital payment either in full or in part. The amount of disability pensions is determined as a percentage of the insured salary and is independent of the number of years of service.

The Company’s defined benefit obligations and the related defined benefit costs are determined at each balance sheet date by a qualified actuary using the Projected Unit Credit Method. The amount recognized in the consolidated balance sheet represents the present value of the projected benefit obligation reduced by the fair value of plan assets. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

As of December 31, 2025 and 2024, plan assets were $23.2 million and $17.9 million. As of December 31, 2025 the plan assets are accounted for at net asset value and at December 31, 2024, the plan assets are at fair value within Level 3 of the fair value hierarchy and included free funds and reserves such as fluctuation reserves and employer contribution reserves.

For the year ended December 31, 2025, service costs of $0.9 million are included in the respective compensation cost caption, and interest costs of $0.3 million and expected return on plan assets of $0.7 million are included in other (expense) income, net on the consolidated statement of operation and comprehensive income. The remeasurement of pension and postretirement benefit plan was $1.2 million as of December 31, 2025 within accumulated other comprehensive loss on the consolidated balance sheet.


	Projected benefit obligation						Fair value of plan assets						Net defined benefit asset (liability)
	2025			2024			2025			2024			2025			2024
Balance as of January 1	$	(22,608	)	$	(19,593	)	$	17,908		$	17,109		$	(4,700	)	$	(2,484	)
Included in profit or loss
Current service cost		(908	)		(607	)		—			—			(908	)		(607	)
Past service cost		—			223			—			—			—			223
Interest (cost) income		(315	)		(356	)		—			310			(315	)		(46	)
Return on plan assets excluding interest income		—			—			746			—			746			—
Administrative cost		(32	)		(30	)		—			—			(32	)		(30	)
Effect of movements in exchange rates		54			1,399			—			(1,222	)		54			177
Included in other comprehensive income														—
Actuarial gain (loss) arising from financial assumptions		346			(2,356	)		—			—			346			(2,356	)
Actuarial gain (loss) arising from other assumptions		(2,175	)		(930	)		—			—			(2,175	)		(930	)
Return on plan assets excluding interest income		—			—			2,991			523			2,991			523
Effect of movements in exchange rates		(2,983	)		127			2,480			(53	)		(503	)		74
Other movements														—
Contributions paid by the employer		—			—			801			756			801			756
Contributions paid by the employees and plan participants		(700	)		(1,780	)		700			1,780			—			—
Benefits paid		2,462			1,295			(2,462	)		(1,295	)		—			—
Balance as of December 31	$	(26,859	)	$	(22,608	)	$	23,164		$	17,908		$	(3,696	)	$	(4,700	)

The defined benefit liability is attributed to the plans’ participants as follows:

Assumptions regarding future mortality are based on published statistics and mortality tables (BVG 2020 generational).

Changes in actuarial gains and losses in the projected benefit obligation are generally driven by discount rate movement. We use the corridor approach to amortize actuarial gains and losses. Under this approach, net actuarial gains or losses in excess of 10% of the larger of the projected benefit obligation or the fair value of plan assets are amortized on a straight-line basis.

The Company expects to pay approximately $0.7 million in contributions to the funded defined benefit plan in 2026.

On December 31, 2025 the weighted-average duration of the defined benefit obligation was 15.5 years (2024: 15.2 years).

In 2023 the Company’s board of directors approved, as part of a reorganization plan in several departments of the Company, an employment termination of Company employees worldwide, with preferable terms.

In 2023, an expense related to payroll compensation due to this plan, in the amount of $2.1 million was recognized in Other (expense) income, net in the consolidated statements of operations and comprehensive loss. As of December 31, 2023 the remaining termination liability in the amount of $1.5 million was presented under other payables and was paid during 2024.

Note 12 – Employee Benefit Plans