Prepayments and other current assets

3 Months Ended

Jun. 30, 2026

Prepayments And Other Current Assets

5. Prepayments and other current assets

	As of June 30, 2026		As of March 31, 2026

Balance with statutory authorities ⁽ⁱ⁾		3,116,326		2,587,264
Unbilled revenue ⁽ⁱⁱ⁾		6,124,421		5,827,805
Advances given ⁽ⁱⁱⁱ⁾		1,957,364		1,635,623
Other receivables ^(iv)		1,076,813		47,835
Prepayments		578,031		673,595
Forward purchase agreement ^(v)		—		6,800,000
Deposits		280,879		260,997
		13,133,834		17,833,119

Balance with statutory authorities represents withholding taxes and value added tax receivables from local tax authorities.

ii)

Unbilled revenue is net of allowances amounting to $2,661,392 and $1,809,347 as of June 30, 2026 and March 31, 2026, respectively.

iii)

Advances given include:

		a)	$1,085,735 and $1,106,447 of advances to suppliers as of June 30, 2026 and March 31, 2026, respectively.

		b)	$433,284 and $336,381 of advances to employees as of June 30, 2026 and March 31, 2026, respectively. Advances to employees include related party balances of $64,499 and $70,456 as of June 30, 2026 and March 31, 2026, respectively.

	iv)	Other receivable includes $914,726.53 representing the updated carrying value of the FPA-related asset.

	v)	Forward purchase agreement

On August 25, 2023, the Company entered into an agreement with (i) Meteora Capital Partners, LP (“MCP”), (ii) Meteora Select Trading Opportunities Master, LP (“MSTO”), and (iii) Meteora Strategic Capital, LLC (“MSC” and, collectively with MCP and MSTO, “Seller” or “Meteora”) (the “Forward Purchase Agreement” or “FPA”) for OTC Equity Prepaid Forward Transactions.

The FPA represented the recognition of the cash payments to the Seller of $42.11 million (including prepayment of $42.06 million and the reimbursable transaction cost of $0.05 million) and the FPA with regard to 3,204,407 shares (recycled shares) and 702,255 shares (FPA subscription shares). The fair value of the FPA was initially comprised of the Prepayment Amount (as defined in the FPA, $42.11 million), reduced by the economics of the downside provided to the Sellers ($35.31 million) and the estimated consideration payment at the Cash Settlement Payment Date (as defined in the FPA, $0.9 million).

During the quarter ended June 30, 2026, the Company recorded a non-cash write-down of approximately $5.9 million with respect to the FPA-related prepaid asset, reducing its carrying value from approximately $6.8 million to $914,726.53 as of June 30, 2026 and reclassifying it as Other Receivables.

A contractual dispute arose between the Company and the Seller regarding alleged breaches of the terms of the FPA. In April 2025, the Company initiated legal proceedings against the Seller, citing that despite negotiated safeguards, Meteora sold shares without honoring its payment obligations or providing the required notices under the FPA. The Seller subsequently filed a counterclaim, alleging breach of contract by the Company on the grounds of non-registration of FPA subscription shares. The dispute includes disagreement over the number of outstanding shares held by the Seller as reported by the Company versus those disclosed in the Seller’s filing of Schedule 13G/A with the Securities and Exchange Commission, and the termination date of the FPA. On July 9, 2026, the United States District Court dismissed the Company’s affirmative claims against the Seller, and the Company is prosecuting an appeal of that order to the United States Court of Appeals for the Second Circuit. In addition, the Company is a defendant in a related action pending in the Court of Chancery of the State of Delaware. These matters, and the Company’s assessment of the related loss contingency, are more fully described in Note 21, “Commitments and contingencies,” and in Part II, Item 1, “Legal Proceedings.”