The Group’s objectives of capital management are to ensure the Group’s sustainable operation and to maintain an optimal capital structure to reduce the cost of capital and provide returns for shareholders. In order to maintain or adjust to optimal capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as total liabilities divided by total equity.


	December 31, 2022		December 31, 2023
Financial assets
Financial assets at amortized cost
Cash and cash equivalents	$	162,616	$	123,871
Current financial assets at amortized cost	30,000		30,300
Accounts receivable	7,756		6,992
Other receivables	314		343
Guarantee deposits paid	125		140
	$	200,811	$	161,646


	December 31, 2022		December 31, 2023
Financial liabilities
Financial liabilities at fair value through profit or loss
Warrant liabilities	$	3,207	$	1,566
Financial liabilities at amortized cost
Other payables (including related parties)	$	9,371	$	10,381
Guarantee deposits received	25		25
	$	9,396	$	10,406
Lease liabilities	$	338	$	868

(a)The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance.

(b)Risk management is carried out by the Group’s finance department under policies approved by the management team. The Group’s finance department identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units.

i.The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, JPY, RMB and EUR. Exchange rate risk arises from future commercial transactions and recognized assets and liabilities. Notably, the subsidiary in Taiwan, Perfect Mobile Corp. (Taiwan), changed its functional currency from NTD to USD starting from January 1, 2023. This change was made due to the majority of transactions being conducted in USD.

ii.The Group’s business involves some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: USD; other certain subsidiaries’ functional currency: JPY, RMB and EUR). The information of and sensitivity analysis for significant financial assets and liabilities denominated in foreign currencies illustrate as follows:


	December 31, 2022
								Sensitivity analysis
	Foreign currency amount (in thousands)		Exchange rate	Functional currency		Book value (USD)		Degree of variation	Effect on profit or loss
Financial assets
Monetary items
USD:NTD	$	22,660	30.71	$	695,889	$	22,660	1%	$	227
EUR:NTD	833		32.72	27,256		888		1%	9
JPY:NTD	436,755		0.23	100,454		3,271		1%	33
Financial liabilities
Monetary items
USD:NTD	2,620		30.71	80,460		2,620		1%	26
USD:JPY	221		132.14	29,203		221		1%	2
USD:RMB	65		6.97	453		65		1%	1


	December 31, 2023
								Sensitivity analysis
	Foreign currency amount (in thousands)		Exchange rate	Functional currency		Book value (USD)		Degree of variation		Effect on profit or loss
Financial assets
Monetary items
NTD:USD	$	79,097	0.0326	$	2,579	$	2,579	1	%	$	26
EUR:USD	664		1.1064	735		735		1	%	7
JPY:USD	317,217		0.0071	2,252		2,252		1	%	23
Financial liabilities
Monetary items
EUR:USD	138		1.1064	153		153		1	%	2
USD:JPY	168		141.39	23,754		168		1	%	2

iii.The total exchange (loss) gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2021, 2022 and 2023, amounted to $(893), $1,303 and $34, respectively.

i.Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms and the contract cash flow of financial assets at amortized cost.

ii.The Group’s credit risk was mainly arising from bank deposits, trade receivables, other financial assets and deposits. The Company adopted a policy of only dealing with creditworthy counterparties and financial institutions to mitigate the risk of financial loss from defaults. The

iv.The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

vi.The Group classifies customers’ accounts receivable in accordance with geographic area and credit rating of customer. The Group applies the modified approach to estimate expected credit loss under the provision matrix basis.

vii.The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

ix.The loss amounts of accounts receivable allowance using simplified method were de minimis, thus, the loss was not recognized as at December 31, 2021, 2022 and 2023.

i.Cash flow forecasting is performed in the operating entities of the Group and aggregated by the Group’s finance department. The Group’s finance department monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

ii.Surplus cash held by the operating entities over and above balance required for working capital management are managed by the Group’s finance department. The Group’s finance department invests surplus cash in interest bearing current accounts and time deposits, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts. As at December 31, 2022 and 2023, the Group held demand deposits and time deposits position of $191,077 and $151,847, respectively. The Group manages liquidity risk by ensuring that these balances are available to meet short-term cash needs. Time deposits withdrawn early receive a lower interest rate through the withdrawal date compared to the stated interest rate applicable on the nominal maturity date.

iii.The table below analyses the Group’s non-derivative financial liabilities based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.


Non-derivative financial liabilities: December 31, 2022	Less than 1 year		Between 2-5 years		Over 5 years
Financial liabilities at fair value through profit or loss	$	—	$	3,207	$	—
Other payables (including related parties)	9,371		—		—
Lease liabilities (Note)	255		89		—
Guarantee deposits received	—		25		—


Non-derivative financial liabilities: December 31, 2023	Less than 1 year		Between 2-5 years		Over 5 years
Financial liabilities at fair value through profit or loss	$	—	$	1,566	$	—
Other payables (including related parties)	10,381		—		—
Lease liabilities (Note)	496		392		—
Guarantee deposits received	—		25		—

A.The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s compound instrument such as convertible preferred shares is included in Level 3.

B.The carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, current financial assets at amortized cost, accounts receivable, other receivables (including related parties), guarantee deposits paid, accounts payable, other payables (including related parties) and guarantee deposits received) are approximate to their fair values.

C.The related information of financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the liabilities at December 31, 2022 and 2023 are as follows:


December 31, 2022	Level 1		Level 2		Level 3		Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Compound instrument:
Warrant liabilities	$	1,769	$	1,438	$	—	$	3,207


December 31, 2023	Level 1		Level 2		Level 3		Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Compound instrument:
Warrant liabilities	$	954	$	612	$	—	$	1,566

i.Except those mentioned in point (ii) ~ (iv) below, the carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, accounts receivable, other receivables, notes payable, accounts payable and other payables) approximate to their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(2).

iii.Fair value of the Perfect Private Placement Warrants and Forward Purchase Warrants are determined based on the Perfect Public Warrants with adjustments to the implied volatility.

(ii)If there are no recent fund raising prices as applicable, using market approach by considering market comparable entities and income approach to calculate total equity value first, and conduct equity value allocation via option pricing model under different scenarios (IPO and liquidation) to calculate probability weighted value of all classes of equities (including preferred shares).

In connection with the SPAC transaction closing on October 28, 2022, the fair value of preferred shares was measured based on the quoted market price which was viewed as the market participants’ expectations for the Company’s value.


	2022
	Compound instrument: Convertible preferred shares
At January 1, 2022	$	259,230
Gains and losses recognized in profit or loss
Recorded as non-operating income and expenses	99,001
Gains and losses recognized in other comprehensive income
Recorded as credit risk changes in financial instrument through other comprehensive income	7
Transfers to Level 2	(358,238)
At December 31, 2022	$	—

E.Along with the insufficient observable market information became available in connection with the SPAC transaction closing on October 28, 2022, the Company transferred the fair value from Level 3 into Level 2