9) Short-Term Borrowing

A. Recourse Financing

During 2022, the Company obtained a credit facility from Seacoast Business Funding (SBF), a division of Seacoast National Bank. The funding is against the accounts receivable of the Company and one of its subsidiaries. The maximum amount of advance under the arrangement is $10,000 and the bank may advance upto 90% of the unpaid domestic outstanding accounts under the recourse agreement.

The SBF facility incurred a factoring interest cost of 8.5% during the quarter ended March 31, 2026, amounting to $10 and 8.5% for the quarter ended March 31, 2025, amounting to $16. The gross receivables against which advances were received from such arrangement as at March 31, 2026, and December 31, 2025, were $2,463 and $2,225 respectively.

The carrying amount of associated recourse financing liability was $24 and $161, as of March 31, 2026, and December 31, 2025, respectively.

In addition, a recently acquired subsidiary with an acquisition date of January 1, 2026, of the Company utilizes recourse-based accounts receivable financing arrangement with a number of banks, whereby the subsidiary receives cash against the customer invoices. Under this arrangement, the maximum advance amount available to the subsidiary is $4,038, subject to invoice ageing and related terms. As the arrangement is with recourse, the subsidiary retains the credit risk associated with the underlying receivables and accordingly continues to recognize the related accounts receivable on its balance sheet. Amounts advanced by the bank are recognized as current liability at fair value, which approximates the actual proceeds received due to the short-term nature of the advances, generally ranging from 60 to 120 days. Interest incurred on the advances is recognized as finance expense in the period incurred. Since the arrangement does not constitute a transfer of receivables under applicable accounting standards, no gain or loss is recognized on the transaction.

This facility incurred a factoring interest rate ranging from 2.77% to 3.52% during the quarter ended March 31, 2026, whereas the interest cost amounted to $31. The gross receivables against which advances were received from such arrangement as at March 31, 2026, was $6,170.

The carrying amount of associated recourse financing liability was $3,734 as at March 31, 2026.

B. 2025 Convertible Notes

The following table represents changes in the fair value of the 2025 Debentures for the periods presented:

As of March 31, 2026, the significant assumptions used by an independent third party valuer in the valuation included the Company’s common stock price of $2.69 per share ($37.95 per share as of December 31, 2025), expected volatility of 87% (90.7% as of December 31, 2025), a risk-free rate of 3.5% (3.53% as of December 31, 2025), and a remaining contractual term of approximately 0.7 years (0.89 years as of December 31, 2025). The valuation also reflected assumptions regarding expected conversion behavior and settlement outcomes over the remaining life of the instruments. In addition, the model was calibrated to observed transaction proceeds. No financing below the contractual floor price is expected in 2026, and accordingly no floor-reset event was incorporated into the March 31, 2026, valuation.

C. Debt from credit institutions

Teyame and Datono have secured various credit facilities across multiple financial institutions. As of March 31, 2026, the total available credit facilities and loans amounted to $9,989, and the amount withdrawn and utilized as of that date was $8,467, of which $7,838 is due within a period of 12 months from the balance sheet date, whereas $629 is classified as long-term debt with maturity dates falling due beyond 1 year. These loans and facilities carry interest rates ranging from 1.3% - 5.24% and are obtained to cover the working capital and liquidity needs.

The debt with credit institutions was acquired as part of the Teyame and Datono business combination on January 1, 2026, and represents liabilities assumed at the acquisition date. No new facilities have been entered into by the consolidated group subsequent to the acquisition date during the quarter ended March 31, 2026.