8. Convertible Bonds

On March 14, 2022, Advasa Japan, the Company’s subsidiary, issued JPY1,000,000, approximately $8,475, aggregate principal amount of convertible bonds denominated in Japanese yen at par with a third-party investor for working capital purposes. The convertible bonds were unsecured, bore interest of 1.0% per annum and were scheduled to mature on March 31, 2027. The bonds were convertible into Series B preferred shares of Advasa Japan from April 1, 2022 through March 31, 2027 at a conversion price of JPY9,804, approximately $83, per share. If fully converted, convertible bonds would have resulted in the issuance of approximately 102 new shares of Advasa Japan.

On November 16, 2022, Advasa Japan issued JPY1,000,000, approximately $7,164, aggregate principal amount of convertible bonds denominated in Japanese yen at par with a third-party investor for working capital purposes. The convertible bonds were unsecured, bore interest of 1.0% per annum and were scheduled to mature on March 31, 2027. The bonds were convertible into Series B preferred shares of Advasa Japan from December 1, 2022 through November 30, 2027 at a conversion price of JPY38,828, approximately $278, per share. If fully converted, convertible bonds would have resulted in the issuance of approximately 25 new shares of Advasa Japan.

In the fiscal year ended March 31, 2026, Advasa Japan fully repaid the outstanding principal and accrued interest of the convertible bonds issued on March 14, 2022. During the three months ended June 30, 2026, Advasa Japan fully repaid the outstanding principal and accrued interest on the convertible bonds issued on November 16, 2022. Accordingly, no amounts related to these convertible bonds remained outstanding as of June 30, 2026.

The conversion feature represents an equity instrument in Advasa Japan, and any potential dilution affects only the subsidiary’s capital structure, not that of the Company.