Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read in conjunction with our audited consolidated financial statements included elsewhere in this Annual Report. This discussion contains forward-looking statements based upon our current expectations, estimates and projections, and involves numerous risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements due to, among other considerations, the matters discussed in the sections titled "Risk Factors" and "Special Note Regarding Forward-Looking Statements."

Overview

We are a global, artificial intelligence ("AI") powered technology platform ("Technology Platform") that serves a broad constituency of Creators and Brands around the world. "Creators" include influencers, artists, athletes, other individuals and public figures that utilize or have utilized our Technology Platform to create and publish content. Numerous famous Creators use our Technology Platform, including influencers like Charli D'Amelio and Bryce Hall and music artists like The Weeknd. "Brands" are companies, products or product lines which are active on our Technology Platform and utilize or have utilized one or more of our products or services offered through our Technology Platform ("Direct Brands"), or companies, products or product lines whose associated data we track, report on and make available to our clients as part of one or more of our product offerings ("Tracked Brands," and collectively with Direct Brands, "Brands"). Brands that have utilized or continue to utilize our platform include McDonalds, Pepsi, Walmart, L'Oréal, Puma, Charmin and Major League Baseball.

We help both Creators and Brands build relationships with their audiences to create awareness, drive content consumption, generate commerce and build culture. Our Triller app is a short-form video app similar to TikTok, Instagram Reels, YouTube shorts and other video apps that allow users to access both user generated and professionally generated content from Creators around the world. Since our inception through September 30, 2023, we have raised more than $420 million in capital and established more than 327 million Consumer Accounts on the Triller app and a total of 436 million Consumer Accounts on our Technology Platform. "Consumer Accounts" are included when consumers create accounts on a Triller brand or owned property and also when we employ our Technology Platform to create accounts on behalf of our Brands and Creators. We define Consumer Accounts as the total number of individual Consumer Accounts recorded in databases across the Triller app and TrillerTV (whether they are active or inactive on our Technology Platform) at or around the time of measurement, that we track and that are able to benefit from the services and features offered through our Technology Platform during the reported period. Users that simply accessed or viewed our content or partner content on our platform or any other social media platform are not included in the total number of Consumer Accounts above. Consumer Accounts that were created prior to acquisition by us are not included in the total number of Consumer Accounts above. Recently, we elected to take a proactive approach to the way in which we report our Consumer Accounts, which we believe is uncommon in our industry. While we believe that many social media companies include a significant number of "bot" accounts or "duplicate" accounts in their user metrics, we undertook a robust process to purge as many duplicate and bot accounts as practicable with our resources and in doing so we purged in excess of 200 million Consumer Accounts from our total user accounts metric.

Alongside the Triller app, Triller has dramatically expanded its portfolio of offerings through organic growth and strategic acquisitions becoming a diversified Technology Platform for the creation, distribution, measurement and monetization of digital, live and virtual content. It also produces content under its own and third-party Brands, including trendsetting music, sports, lifestyle, fashion and entertainment media that creates cultural moments, attracts users to Triller's offerings and drives social interaction that serves as a cultural wellspring across digital society.

We operate within the global digital content marketplace, which is estimated to reach $577.4 billion in 2023 according to Statistica's August 2023 report on worldwide digital media, and we focus our efforts on the $250 billion creator economy, as forecasted in a recent Goldman Sachs report on the creator economy. Goldman Sachs Research estimated the creator economy could reach $480 billion by 2027 in its April 2023 report titled "The creator economy could approach half-a-trillion dollars by 2027." Our revenue was $21.6 million and $27.5 million in the fiscal years ended December 31, 2025 and 2024. We have incurred net losses in each year since our inception, including $174.5 million and $1,138.0 million for the fiscal years ended December 31, 2025 and 2024, respectively.

Through our subsidiaries in Hong Kong, we are also a leading wealth management and healthcare institution based in Hong Kong servicing over 400,000 individual and corporate customers. We offer the broadest set of financial services and healthcare products in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) through a tech-led ecosystem, enabling clients to unlock the choices that best suit their needs.

In addition to operating our Technology Platform, we currently operate in four market-leading businesses: our Platform Business, Distribution Business, Healthcare Business, and Fintech Business (collectively as "Financial Services Business").

Since 2019, we have implemented a strategy to expand and upgrade our long-standing broker-dealer business into a platform business and a distribution business. Today, we offer unique product and service offerings:

- B2B: tech-enabled broker management platform for advisors ("Platform Business"); and

- B2C: market leading portfolio of wealth and health products ("Distribution Business").

We also have a market leadership in our healthcare business through our 4% stake in and a strategic partnership with HCMPS. It is one of the most reputed healthcare brands in Hong Kong. It has a network of over 700 healthcare service providers.

Finally, we are an established operator and successful investor in the FinTech industry. We have carefully built out investment positions in FinTech, WealthTech and HealthTech businesses, applying lessons learned from our own distribution, platform and healthcare businesses.

Our largest distribution channel is the FA Business, operating under the brand name Focus. With its large salesforce of financial advisors, "Focus" provides a wide range of financial products and independent advisory services to individual and corporate customers, primarily in connection with life insurance products. Our FA Business has been the clear market leader in the insurance brokerage industry in Hong Kong for decades, building up a large and highly productive salesforce. As of December 31, 2025, there were around 338 financial advisors at "Focus", organized into 9 sales teams. Each team is led by a "tree head", responsible for managing the financial advisors within their teams.

In addition to the FA Business, we continued to expand our distribution footprint with the establishment and expansion of a number of additional distribution channels, collectively known as our Alternative Distribution Business. These distribution channels are targeted at specific customer segments and/or capturing specific distribution opportunities.

During 2025, we continued to make significant investments into developing and expanding our financial advisors salesforce, broadening and deepening the product range, as well as upgrading the supporting infrastructure. Our infrastructure not only supports the financial consultants in engaging with their customers, it also provides extensive operational support in relation to the processing of transactions, associated payment flows, as well as after-sales services. Building our infrastructure required substantial investments into technological, operational and financial systems, as well as the development of comprehensive operational and support teams (operations support, customer services, payments, etc.). Since many of the financial products offered to our customers are regulated, on top of the various operational requirements, we have built significant internal capabilities in the areas of risk and internal control, as well as legal and compliance to ensure an appropriate level of regulatory compliance and supervision.

As a result of our efforts to expand our distribution capabilities and improve our supporting infrastructure, we have successfully developed these inter-related strategic assets:

	●	Vast customer base in Hong Kong and growing customer base in Mainland China.
	●	State-of-the-art supporting infrastructure.
	●	Relationships with and access to a broad range of leading global financial product providers.
	●	Deep market knowledge and understanding.
	●	Highly productive and well-trained salesforce.

We will continue to capitalize on these core strategic assets and match them with the emerging opportunities in our three core industries (life insurance, wealth management and healthcare).

For the year ended December 31, 2025, the Company made $21.6 million from commission in the financial services business. The revenue attributed to the Company during 2025 only captured an insignificant portion of the revenues actually generated by the financial advisors currently associated with Focus.

We will continue to widen our distribution footprint and actively explore further opportunities to develop partnerships and generate customer leads on the ground in Mainland China, as well as refining our abilities to service our customer base. We expect sales volumes to return to the levels previously recorded, prior to the pandemic period, especially with the re-opening of the Mainland border and the ongoing integration of Hong Kong into the Greater Bay area.

Key Factors Affecting Our Results of Operations and Future Performance

We believe that our financial performance has been, and in the foreseeable future will continue to be, primarily driven by multiple factors as described below, each of which presents growth opportunities for our business. These factors also pose important challenges that we must successfully address in order to sustain our growth and improve our results of operations. Our ability to successfully address these challenges is subject to various risks and uncertainties, including those described in Part I, Item 1A of this Form 10-K.

Results of Operations

Comparison of the Years Ended December 31, 2025 and 2024:

The following tables set forth our results of operations by segment for the years ended December 31, 2025 and 2024 presented in U.S. dollars (in thousands):

		For the year ended December 31, 2025
		Social media				Sports streaming				Financial services				Corporate				Elimination				Consolidated
Revenue
Loans interest income		$	-			$	-			$	34			$	-			$	-			$	34
Commission			-				-				20,308				-				-				20,308
Recurring asset management service fees			-				-				1,280				-				-				1,280
Total revenue			-				-				21,622				-				-				21,622
Operating expenses
Commission expense			-				-				(13,374	)			-				-				(13,374	)
Sales and marketing expenses			(583	)			-				(680	)			-				-				(1,263	)
Research and development expenses			(2,971	)			-				(1,157	)			-				-				(4,128	)
Personnel and benefit expenses			(14,547	)			(2,362	)			(165	)			(90,891	)			-				(107,965	)
Legal and professional fee			(8,495	)			(437	)			(2,226	)			(13,537	)			-				(24,695	)
Office and operating fee, related party			-				-				-				(4,256	)			-				(4,256	)
Reversal of allowance for expected credit losses			385				-				3				-				-				388
Other general and administrative expenses			(1,111	)			(831	)			(344	)			(2,456	)			-				(4,742	)
Total operating expenses			(27,322	)			(3,630	)			(17,943	)			(111,140	)			-				(160,035	)
Other income (expense), net
Interest income			-				-				10				-				-				10
Interest expense			(11,213	)			(785	)			(613	)			(5,985	)			-				(18,596	)
Foreign exchange (loss) gain, net			537				(81	)			1,967				4				-				2,427
Impairment on right-of-use assets			-				-				-				(2,773	)			-				(2,773	)
Bad debts written off			(5,441	)			-				-				-				-				(5,441	)
Investment loss, net			-				-				(7,086	)			-				-				(7,086	)
Change in fair value of convertible debts			(6,616	)			-				-				-				-				(6,616	)
Change in fair value of warrant liabilities			-				-				-				977				-				977
Change in fair value of asset held for sale			-				-				(218	)			-				-				(218	)
Others			-				-				1,242				54				-				1,296
Total other expense, net			(22,733	)			(866	)			(4,698	)			(7,723	)			-				(36,020	)
Income tax expense			-				-				(109	)			-				-				(109	)
Net loss		$	(50,055	)		$	(4,496	)		$	(1,128	)		$	(118,863	)		$	-			$	(174,542	)

		For the year ended December 31, 2024
		Social media				Sports streaming				Financial services				Corporate				Elimination				Consolidated
Revenue
Loans interest income			-				-				151				-				-				151
Commission			-				-				20,348				-				-				20,348
Recurring asset management service fees			-				-				1,887				-				-				1,887
Advertising revenue			275				1				-				-				-				276
SaaS fees			707				-				-				-				-				707
Subscription fees and paid-per-view fees			19				4,088				-				-				-				4,107
Total revenue			1,001				4,089				22,386				-				-				27,476
Operating expenses
Operating expenses for social media and streaming platform			(522	)			(3,491	)			-				-				-				(4,013	)
Commission expense			-				-				(10,531	)			-				-				(10,531	)
Sales and marketing expenses			(921	)			(426	)			(219	)			-				-				(1,566	)
Research and development expenses			(1,193	)			(135	)			(1,853	)			-				-				(3,181	)
Personnel and benefit expenses			(2,091	)			(86	)			(38,106	)			(44,603	)			-				(84,886	)
Legal and professional fee			(3,048	)			(70	)			(2,321	)			(16,931	)			-				(22,370	)
Legal and professional fee, related party			-				-				-				(949	)			-				(949	)
Office and operating fee, related party			-				-				(4,303	)			-				-				(4,303	)
Provision for allowance for expected credit losses			5				(10	)			(2,544	)			-				-				(2,549	)
Other general and administrative expenses			(1,659	)			(109	)			(4,287	)			(253	)			-				(6,308	)
Total operating expenses			(9,429	)			(4,327	)			(64,164	)			(62,736	)			-				(140,656	)
Other income (expense), net
Interest income			6				-				19				765				(339	)			451
Interest expense			(2,581	)			(132	)			(785	)			(4,778	)			339				(7,937	)
Foreign exchange (loss) gain, net			-				16				(717	)			-				-				(701	)
Impairment on property and equipment			-				-				(104	)			-				-				(104	)
Impairment on intangible assets			(621	)			(210	)			(369	)			-				-				(1,200	)
Impairment on goodwill			(1,000,002	)			(5,776	)															(1,005,778	)
Impairment on right-of-use assets			-				-				(1,664	)			-				-				(1,664	)
Investment loss, net			-				-				(15,971	)			-				-				(15,971	)
Change in fair value of convertible debts			4,447				-				-				-				-				4,447
Change in fair value of warrant liabilities			-				-				-				3,463				-				3,463
Sundry income			31				6				101				-				-				138
Total other expense, net			(998,720	)			(6,096	)			(19,490	)			(550	)			-				(1,024,856	)
Income tax expense			-				-				-				-				-				-
Net loss			(1,007,148	)			(6,334	)			(61,268	)			(63,286	)			-				(1,138,036	)

Revenues

The following table summarizes the major operating revenues for the years ended December 31, 2025 and 2024:

		Years ended December 31,
		2025				2024				Variance
		(US$ in thousands)								$				%
Business segment
Social media		$	-			$	1,001				(1,001	)			(100.00	)
Sports streaming			-				4,089				(4,089	)			(100.00	)
Financial services			21,622				22,386				(764	)			(3.41	)
TOTAL		$	21,622			$	27,476				(5,854	)			(21.31	)

Social media and Sports streaming

Since October 2024, we completed the merger transaction pursuant to the merger agreement, through which we acquired all of the equity interests of Triller Corp. Following the acquisition, Triller Corp.'s operations have been consolidated into our operations, consisting of two major business segments: social media and sports streaming.

The social media business segment mainly comprises revenue from the provision of advertising services and SaaS services. The technology platform integrated from Triller Corp. provides brands a variety of advertising services including AI-powered conversations and the augmentation and execution of advertising campaigns. In addition, the SaaS platform provides customers with a detailed dashboard to measure creator-driven marketing campaigns, as well as a marketplace that allows e-commerce brands to automate the onboarding of creators with per-transaction incentives for e-commerce transactions.

The sports streaming business segment mainly comprises revenue from subscriptions for streaming services and pay-per-view ("PPV") services for premium content and events. The technology platform provides streaming services that acquire content licenses from various sports and entertainment franchises to create a content-rich environment for both subscription-based and pay-per-view consumption across a variety of platforms, including mobile phones, tablets, PCs, streaming devices, set-top boxes, and connected TVs.

No income from social media and sports streaming business segments are generated during the year ended December 31, 2025. The Company generated $5.1 million revenues in these two segments during the year ended December 31, 2024.

Financial services

Financial services business segment mainly comprises of commission income, recurring assets management service income, and interest income. Income from financial services decreased by $0.8 million or 3.41% from $22.4 million for the year ended December 31, 2024 to $21.6 million for the year ended December 31, 2025. The decrease in revenue was primarily attributable to softer market conditions in Hong Kong and lower business volumes in the financial services segment.

Operating Expenses

Operating expenses for social media and streaming platform

For the years ended December 31, 2025 and 2024, the aggregate operating expenses for social media and streaming platform were $0 and $4.0 million. The operating expenses for social media primarily consisted of expenses related to talent and influencers for brand activations. The operating expenses for the streaming platform relate primarily to license fees, event rights fees, revenue-sharing costs, production costs, and influencer costs. The operating expenses for social media and streaming platform decreased in line with the decline in revenues generated from social media and sports streaming.

Commission expense

The commission expense related to financial services increased $2.8 million, or 27.00% from $10.5 million for the year ended December 31, 2024 to $13.4 million for the year ended December 31, 2025. As a result of the increase in commission rate associated with the financial services, commission expense increased correspondingly.

Sales and marketing expenses

Social media and Sports streaming

Sales and marketing expenses of social media and sports streaming segments primarily consist of marketing costs related to talent and influencers that are not directly tied to revenue-generating activity. These costs represent expenditure incurred to attract users to the Triller app. For the years ended December 31, 2025 and 2024, aggregate sales and marketing expenses for these segments totaled $0.6 million and $1.3 million, respectively. The decrease was consistent with the decline in revenue generated from the social media and sports streaming segments.

Financial services and Corporate

Sales and marketing expenses of financial services and corporate segment primarily consist of brand promotion and spending on marketing programs to launch the insurance and investments products distributed by our consultants. The aggregate sales and marketing expenses for these segments increased $0.5 million, or 210.50% from $0.2 million for the year ended December 31, 2024 to $0.7 million for the year ended December 31, 2025. The increase was mainly attributable to higher allowances and incentives paid to financial advisors.

Research and development expenses

Social media and Sports streaming

Research and development expenses of social media and sports streaming segments primarily consist of personnel costs and related expenses, internet hosting costs, as well as third party tools and labor. For the years ended December 31, 2025 and 2024, aggregate research and development expenses for these segments totaled $3.0 million and $1.3 million, respectively, representing an increase of $1.6 million or 123.72%. The increase was primarily attributable to the recognition of a full year of expenses for the year ended December 31, 2025 as compared to only a partial period in 2024 following the acquisition of Triller Corp. and its subsidiaries on October 15, 2024.

Financial services and Corporate

Research and development expenses of financial services and corporate segment primarily include personnel-related costs attributable to our IT team, technology contractors, server facilities expenses, telecommunications expenses, software and hardware expenses to support and maintain the technology platform infrastructure for financial services. The aggregate research and development expenses for these segments decreased $0.7 million, or 37.56% from $1.8 million for the year ended December 31, 2024 to $1.1 million for the year ended December 31, 2025. The decrease was mainly attributable to lower headcount.

Personnel and benefit expenses

Personnel and benefit expenses primarily consist of personnel-related costs and benefits and stock-based compensation costs for our administrative, legal, human resources, information technology, corporate development, finance and accounting employees and executives.

Social media and Sports streaming

For the years ended December 31, 2025 and 2024, aggregate personnel and benefit expenses for social media and sports streaming segments totaled $16.9 million and $2.2 million, respectively, representing an increase of $14.7 million or 676.71%. The increase was primarily attributable to the recognition of a full year of expenses for the year ended December 31, 2025 as compared to only a partial period in 2024 following the acquisition of Triller Corp. and its subsidiaries on October 15, 2024.

Financial services and Corporate

		Years ended December 31,
		2025				2024				Variance
		(US$ in thousands)								$				%
Personnel and benefit		$	10,087			$	14,964				(4,877	)			(32.59	)
Stock-based compensation			80,969				67,745				13,224				19.52
TOTAL		$	91,056			$	82,709				8,347				10.09

Personnel and benefit cost for these segments decreased by $4.9 million, or 32.59% from $15.0 million for the year ended December 31, 2024 to $10.1 million for the year ended December 31, 2025. The decrease was mainly attributed to the decreased headcounts.

Stock-based compensation for executive directors and employees increased by $13.2 million for the year ended December 31, 2025, as compared to the year ended December 31, 2024. The increase was primarily due to the settlement of accrued salaries to certain executive directors and employees of the Company and the amortization of the fair value of restricted share units. The fair value of the restricted share units is recognized over the period based on the derived service period (usually the vesting period), on a straight-line basis.

Legal and professional fee

Legal and professional fees mainly consisted of certain professional consulting services in legal, audit, accounting and taxation, and others.

Social media and Sports streaming

For the years ended December 31, 2025 and 2024, the legal and professional fee for social media and sports streaming segments totaled $8.9 million and $3.1 million, respectively, representing an increase of $5.8 million or 186.47%. The increase was primarily attributable to the recognition of a full year of expenses for the year ended December 31, 2025 as compared to only a partial period in 2024 following the acquisition of Triller Corp. and its subsidiaries on October 15, 2024.

Financial services and Corporate

		Years ended December 31,
		2025				2024				Variance
		(US$ in thousands)								$				%
Legal and professional fees		$	8,478			$	9,223				(745	)			(8.08	)
Consulting fees (stock-based related)			7,285				10,029				(2,744	)			(27.36	)
TOTAL		$	15,763			$	19,252				(3,489	)			(18.12	)

Legal and professional fees decreased by $0.7 million, or 8.08%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. The decrease was primarily attributable to higher consulting fees incurred during the year.

Consulting fees under stock-based compensation decreased by $2.7 million or 27.36% for the year ended December 31, 2025, as compared to the year ended December 31, 2024. The decrease was mainly attributed to the decrease in corporate strategic consultancy and business marketing services incurred during the year.

Legal and professional fee, related party

Legal and professional fee, related party decreased by $0.9 million from $0.9 million for the year ended December 31, 2024 to $0 for the year ended December 31, 2025. The decrease was primarily attributed to the termination of advisory services provided by a related company owned by the former Chairman of the Company, following his resignation in December 2024.

Provision for allowance for expected credit losses

In accordance with Accounting Standards Codification ("ASC") Topic 326, Credit Losses - Measurement of Credit Losses on Financial Instruments, the Company applies the current expected credit losses ("CECL") model to determine an allowance that reflects its best estimate of expected credit losses on accounts receivable, loans receivable, notes receivable, and deposits, prepayments, and other receivables. This allowance is recorded against the related receivable balances. For the years ended December 31, 2025 and 2024, the aggregated reversal of (provision for) allowance for expected credit losses on accounts receivable, loans receivable, notes receivable, and other receivables was $0.4 million and $(2.5) million, respectively.

Other general and administrative expenses

Social media and Sports streaming

Other general and administrative expenses of social media and sports streaming segments primarily consist of professional service fees, business process outsourcing costs, music licensing, and insurance premiums. For the years ended December 31, 2025 and 2024, aggregate other general and administrative expenses for these segments totaled $1.9 million and $1.8 million, respectively, representing a slight increase of $0.2 million or 9.84%.

Financial services and Corporate

Other general and administrative expenses of financial services and corporate segments primarily consist of rent and facilities expenses allocated based upon total direct costs, depreciation and amortization expenses, allowance for expected credit losses, professional services fees, allocated overhead expenses, and other corporate expenses that are not allocated to the above expense categories. The aggregate other general and administrative expenses for these segments decreased $1.7 million, or 37.97% from $4.5 million for the year ended December 31, 2024 to $2.8 million for the year ended December 31, 2025.

Other Income (Expense), net

The following table summarizes the other income (expense), net for the years ended December 31, 2025 and 2024:

		Years ended December 31,
Other expense, net		2025				2024				Variance
		(US$ in thousands)								$				%
Business segment
Social media		$	(22,733	)		$	(998,720	)			(975,987	)			(97.72	)
Sports streaming			(866	)			(6,096	)			(5,230	)			(85.79	)
Financial services			(4,698	)			(19,490	)			(14,792	)			(75.90	)
Corporate			(7,723	)			(550	)			7,173				1,304.18
TOTAL		$	(36,020	)		$	(1,024,856	)			(988,836	)			(96.49	)

Other income (expense), net consist of interest income, net foreign exchange gain, sundry income and offset by interest expense, bad debts written-off and change in fair value of convertible debts.

Social media and Sports streaming

For the years ended December 31, 2025 and 2024, aggregate other expenses, net for these segments totaled $23.6 million and $1,004.8 million, respectively, representing a decrease of $981.2 million or 97.65%. The significant decrease was primarily attributed to the impairment on goodwill recognized during the year ended December 31, 2024, with no comparable impairment recorded in 2025.

Financial services and Corporate

For the years ended December 31, 2025 and 2024, the aggregate other expenses, net for financial services and corporate segments was $12.4 million and $20.0 million, respectively, a decrease of $7.6 million or 38.02%. The decrease was mainly attributed to the decrease in investment loss of $8.9 million, or 55.63%, from $16.0 million in 2024 to $7.1 million in 2025.

Net Loss

Net loss decreased by $963.5 million, or 84.66% for the year ended December 31, 2025, as compared to December 31, 2024. The decrease was primarily due to the decrease in total other expenses, net.

Liquidity and Capital Resources

Sources of Liquidity

We have a history of operating losses and negative operating cash flows. For the year ended December 31, 2025, we reported a net loss of $174.5 million and reported a negative operating cash flow of $25.9 million. As of December 31, 2025, our cash balance was $2.3 million for working capital use. Our management estimates that currently available cash will not be able to provide sufficient funds to meet the planned obligations for the next 12 months.

Our ability to continue as a going concern is dependent on our ability to successfully implement our plans. Our management believes that it will be able to continue to grow our revenue base and control expenditures. In parallel, we continually monitor our capital structure and operating plans and evaluates various potential funding alternatives that may be needed in order to finance our business development activities, general and administrative expenses, and growth strategy. These alternatives include external borrowings, raising funds through public equity, or tapping debt markets. Although there is no assurance that, if needed, we will be able to pursue these fundraising initiatives and have access to the capital markets going forward. The consolidated financial statements attached to this Form 10-K do not include any adjustments that might result from the outcome of these uncertainties.

Future Liquidity

On a recurring basis, the primary future cash needs of the Company will be focused on operating activities, working capital, capital expenditures, investment, regulatory and compliance costs. The ability of the Company to fund these needs will depend, in part, on its ability to generate or raise cash in the future, which is subject to general economic, financial, competitive, regulatory, and other factors that are beyond its control.

The ability to fund our operating needs will depend on its future ability to continue to generate positive cash flow from operations and raise capital in the capital markets. Our management believe that we will meet known or reasonably likely future cash requirements through the combination of cash flows from operating activities, available cash balances, and external borrowings and fund raising. Our management expects that the primary cash requirements in 2026 will be to fund capital expenditures for the repayment of debts and obligation and the businesses operations.

If our sources of liquidity need to be augmented, additional cash requirements would likely need to be financed through the issuance of debt or equity securities; however, there can be no assurances that we will be able to obtain additional debt or equity financing on acceptable terms, or at all, in the future.

Based upon our current operating plans, our management believes that cash and equivalents will be able to provide sufficient funds to its operations for at least the next 12 months from the date of its consolidated financial statements provided with this Form 10-K. However, these forecasts involve risks and uncertainties, and actual results could vary materially. Our management has based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. See "Liquidity and Going Concern" below.

Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our rate of revenues growth, the timing and extent of spending on sales and marketing, the expansion of sales and marketing activities, the timing of new product introductions, market acceptance of our brand, and overall economic conditions. We may also seek additional capital to fund our operations, including through the sale of equity or debt financing. To the extent that we raise additional capital through the future sale of equity, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing stockholders. The incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations.

Cash Flows

As of December 31, 2025, we had cash and cash equivalents totaling $2.4 million, and $10.3 million in restricted cash.

As of December 31, 2024, we had cash and cash equivalents totaling $3.1 million, and $14.2 million in restricted cash.

Comparison of the year ended December 31, 2025 and 2024

The following table summarizes our cash flows for the years presented:

		Years ended December 31,
		2025				2024
		(US$ in thousands)
Net cash used in operating activities			(25,938	)			(29,037	)
Net cash provided by investing activities			1,524				3,740
Net cash provided by financing activities			19,609				24,046
Effect on exchange rate change on cash and cash equivalents			154				(166	)
Net change in cash, cash equivalents and restricted cash			(4,651	)			(1,417	)
Cash, cash equivalents and restricted cash, at the beginning			17,261				18,678
Cash, cash equivalents and restricted cash, at the end			12,610				17,261
Representing as:-
Cash and cash equivalents			2,294				3,065
Restricted cash - fund held in escrow			10,316				14,196
			12,610				17,261

The following table sets forth a summary of our working capital:

		As of December 31,
		2025				2024				Variance
		(US$ in thousands)								$				%
Total Current Assets		$	15,228			$	24,089				(8,861	)			(36.78	)
Total Current Liabilities			361,195				295,738				65,457				22.13
Working Capital Deficit			(345,967	)			(271,649	)			74,318				27.36

Working Capital Deficit

The working capital deficit as of December 31, 2025 amounted to approximately $346.0 million, as compared to approximately $271.6 million as of December 31, 2024, an increase of $74.3 million or 27.36%. The increase was mainly attributed to the increase in current liabilities related to the acquisition of Triller Corp.

Cash Flows from Operating Activities

Net cash used in operating activities was $25.9 million for the year ended December 31, 2025, as compared to net cash used in operating activities of $29.0 million for the year ended December 31, 2024.

Net cash used in operating activities for the year ended December 31, 2025 was primarily the result of a net loss of $174.5 million, an increase in accounts receivable of $0.6 million, deposits, prepayments and other receivables of $0.1 million, a decrease in escrow liabilities of $3.9 million and operating lease liabilities of $2.1 million. These amounts were partially offset by the increase in accounts payable and accrued liabilities of $28.7 million, income tax payable of $0.1 million and non-cash adjustments consisting of stock-based compensation of $89.6 million, interest expense on borrowings of $18.6 million, net foreign exchange gain of $2.4 million, bad debts written-off of $5.4 million, investment loss, net of $7.1 million, reversal of allowance for expected credit losses of $0.4 million, change in fair value of warrant liabilities of $1.0 million and change in fair value of convertible debts of $6.6 million.

Net cash used in operating activities for the year ended December 31, 2024 was primarily the result of a net loss of $1,138.0 million, a decrease in escrow liabilities of $2.6 million, operating lease liabilities of $1.9 million, and income tax payable of $0.3 million. These amounts were partially offset by the decrease in accounts receivable of $2.5 million, increase in accounts payable and accrued liabilities of $4.1 million, and non-cash adjustments consisting of stock-based compensation of $77.8 million, lease expense of $2.6 million, depreciation and amortization of $0.3 million, interest expense on borrowings of $7.9 million, impairment on goodwill of $1,005.8 million, impairment on intangible assets of $1.2 million, impairment on right-of-use assets of $1.7 million, investment loss, net of $16.0 million, provision for allowance for expected credit losses of $2.5 million, change in fair value of warrant liabilities of $(3.5) million, change in fair value of convertible debts of $(4.4) million, and impairment on property and equipment of $0.1 million.

Cash Flows from Investing Activities

Net cash provided by investing activities for the year ended December 31, 2025 of $1.5 million was primarily consisted of proceeds from disposal of assets held for sale.

Net cash provided by investing activities for the year ended December 31, 2024 of $3.7 million was primarily due to proceeds from sale of long-term investments of $2.5 million and cash from acquisition of Triller Corp. of $1.2 million.

Cash Flows from Financing Activities

Net cash provided by financing activities for the year ended December 31, 2025 of $19.6 million was primarily consisted of proceeds from borrowings from related parties of $20.8 million and repayments of borrowings of $1.2 million.

Net cash provided by financing activities for the year ended December 31, 2024 of $24.0 million was primarily due to advances from stock holder of $15.6 million, proceeds from convertible debts of $28.7 million, and proceeds from borrowings of $7.4 million, offset by the repayments of convertible debts of $23.9 million, and repayments of borrowings of $3.9 million.

Liquidity and Going Concern

Our consolidated financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets, and settlement of liabilities in the normal course of business. The Management of the Company has determined that the Company's currently available cash will not be sufficient to meet its obligations for the twelve months following the date these consolidated financial statements are issued.

For the year ended December 31, 2025, the Company reported net loss of approximately $174.5 million and net cash outflows from operating activities of approximately $25.9 million. As of December 31, 2025, the Company had a working capital deficit of approximately $346.0 million, stockholders' deficit of approximately $328.1 million and cash and cash equivalents balance of approximately $2.3 million for working capital purposes.

On December 26, 2025, the Company received a determination letter from the Panel confirming the suspension trading on the Nasdaq Stock Market effective at the opening of the market on December 30, 2025 and delisting of the Company's securities.

The Company is also exposed to legal and regulatory matters, as disclosed in Note 21 to the accompanying consolidated financial statements, which may result in additional defense and settlement costs. Unfavorable outcomes could further strain the Company's liquidity.

As of the date of issuance of the accompanying consolidated financial statements, the Company has not repaid certain short-term loans, TFI Note, exchangeable notes and convertible promissory notes, all of which are past due and considered in default.

These conditions raise substantial doubt about the Company's ability to continue as a going concern for a period of twelve months from the date of issuance of these consolidated financial statements.

The management of the Company has developed a funding plan intended to support the Company's liquidity and enable it to meet its operating obligations as they fall due. Management continues to monitor the Company's capital structure and operating plans and will evaluate available funding alternatives as needed. Details of the funding plan are as follows:

Fund raising project		Target timeline		Target amount
PIPE / rights issue		April - June 2026		$40 million - $50 million
Convertible notes		September 2026		$150 million - $200 million
New equity issuance		2027		$200 million

Management's ability to execute its near-term funding plans and liquidity measures is important to the Company's continued operation as a going concern. After considering the cash flow forecast, the funding initiatives under evaluation, management's ability to defer or restructure certain obligations, and its ability to manage liquidity closely during the assessment period, management believes that the going concern basis of preparation remains appropriate. Management continues to monitor the Company's liquidity position closely and update this assessment through the issuance of the accompanying consolidated financial statements.

However, the Company cannot predict the exact amount or timing of the alternatives or guarantee those alternatives will be favorable to its stockholders. Any failure to obtain financing when required will have a material adverse impact on the Company's business, operation and financial result.

On March 24, 2026, pursuant to the Company's appeal, the Nasdaq Stock Market Listing and Hearing Review Council (the "Listing Council") modified a prior determination to delist the Company's securities from the Nasdaq Stock Market and suspend trading effective December 30, 2025. The Listing Council determined that (i) if the Company fails to file its 2025 Form 10-K by March 31, 2026, or within the extension period permitted under SEC Rule 12b-25, its securities will be immediately delisted without further appeal, and (ii) if the filing is made within such timeframe, trading will resume on the next trading day, subject to timely notification to Nasdaq.

As of the date of issuance of the accompanying consolidated financial statements, the Company has filed its 2025 Form 10-K by April 15, 2026 to regain compliance with Nasdaq listing requirements, resume trading of its securities, and proceed with its funding plans.

Material Cash Requirements

We reported a net loss during the year ended December 31, 2025. The management of the Company has developed a funding plan intended to support the Company's liquidity and enable it to meet its operating obligations as they fall due. Management continues to monitor the Company's capital structure and operating plans and will evaluate available funding alternatives as needed. Details of the funding plan are as follows:

Fund raising project		Target timeline		Target amount
PIPE / rights issue		April - June 2026		$40 million - $50 million
Convertible notes		September 2026		$150 million - $200 million
New equity issuance		2027		$200 million

As a result, management expects our net cash position to expand in 2026. As of December 31, 2025, we had an accumulated deficit of $1,378.2 million. Our material cash requirements are highly dependent upon additional financial support associated with our business operations for the next 12 to 18 months.

Capital commitments

Details of capital commitments are disclosed in Note 21 in the accompanying consolidated financial statements.

Off-Balance Sheet Arrangements

We are not party to any off-balance sheet transactions. We have no guarantees or obligations other than those which arise out of normal business operations.

We have not engaged in any off-balance sheet financial arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, net revenue or expenses, results of operations, liquidity, capital expenditures, or capital resources.

Critical Accounting Policies, Judgements and Estimates

Our audited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods and the related disclosures in the audited consolidated financial statements and accompanying footnotes. Out of our significant accounting policies, which are described in "Note 2 - Summary of significant accounting policies" of our audited consolidated financial statements included under Item 8 of Part II in this Annual Report, certain accounting policies are deemed "critical," as they require our management's highest degree of judgment, estimates and assumptions. While our management believes our judgments, estimates and assumptions are reasonable, they are based on information presently available and actual results may differ significantly from those estimates under different assumptions and conditions.

Critical accounting policies

When reading our consolidated financial statements, you should consider our selection of critical accounting policies, including revenue recognition, and long-term investments, net, of which the details are set out in our audited consolidated financial statements.

Critical accounting estimates

You should also consider the judgment and other uncertainties affecting the application of such policies and the sensitivity of reported results to changes in conditions and assumptions. We believe the following accounting policies involve the most significant judgments and estimates used in the preparation of our financial statements.

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Impairment of long-lived assets

We review long-lived assets, including property and equipment, intangible assets and ROU assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future pre-tax cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value is generally determined by discounting the cash flows expected to be generated by the asset (asset group), when the market prices are not readily available. The adjusted carrying amount of the asset is the new cost basis and is depreciated over the asset's remaining useful lives. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.

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Warrant liabilities

We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in ASC Topic 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC Topic 815, Derivatives and Hedging ("ASC 815"). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to our own common stock and whether the warrant holders could potentially require "net cash settlement" in a circumstance outside of our control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

Equity-classified

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. Warrants classified as equity instruments are initially recognized at fair value and are not subsequently remeasured. We account for its (i) Public Warrants and (ii) Replacement Warrants of Triller Group Warrants as equity.

Liability-classified

For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the consolidated statements of operations and comprehensive loss. We account for its (i) SPAC Private Warrants, (ii) Common Warrants, and (iii) Warrants - Class A of Triller Group warrants as liabilities. Warrants classified as liabilities are recorded at fair value and are remeasured at each reporting date until settlement. Changes in fair value is recognized as a component of change in fair value of warrant liability in the consolidated statements of operations and comprehensive loss. Transaction costs allocated to warrants that are presented as a liability are immediately expensed in the consolidated statements of operations and comprehensive loss.