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Note 11 - Costs to Obtain and Fulfill a Contract

6 Months Ended

Jun. 30, 2025

11. Costs to obtain and fulfill a Contract

Deferred costs of fulfillment

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, 2025. 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, 2025 is as follows (Dollar amounts in thousands of U.S. dollars).

	*June 30, 2025*

Balance, beginning of period	$	116,975
Deferral of costs		93,991
Amortized expense included in cost of revenue		(92,005	)
Balance, end of period	$	118,961