Deferred costs to fulfill contracts primarily consist of domain registration costs which have been paid to a domain registry and are capitalized as deferred costs of fulfillment. These costs are deferred and amortized over the life of the domain which generally ranges from one to ten years. The Company also defers certain technology design and data migration costs it incurs to fulfill its performance obligations contained in our platform services arrangements. There were no impairment losses recognized in relation to the costs capitalized during the six months ended June 30, 2026. Amortization expense is included in cost of revenue.

The breakdown of the movement in the deferred costs of fulfillment balance for the six months ended June 30, 2026 and year ended December 31, 2025 is as follows (Dollar amounts in thousands of U.S. dollars).


	June 30, 2026		December 31, 2025

Balance, beginning of period	$	113,034	$	116,975
Deferral of costs	95,172		188,420
Amortized expense included in cost of revenue	(92,092)		(192,361)
Balance, end of period	$	116,114	$	113,034