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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the period ended September 30, 2025

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40206

XBP Global Holdings, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware		85-2002883
(State of or other Jurisdiction Incorporation or Organization)		(I.R.S. Employer Identification No.)

6641 N. Belt Line Road, Suite 100 Irving, Texas		75063
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (844) 935-2832

(Former name, former address and former fiscal year, if changed since last report)

Securities Registered Pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common stock, par value $0.0001 per share	XBP	The Nasdaq Capital Market
Redeemable warrants, each whole warrant exercisable for one share of common stock at an exercise price of $11.50	XBPEW	The Nasdaq Capital Market

Indicate by check mark whether the Registrant (1) has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

As of November 14, 2025, the Registrant had 117,515,972 shares of common stock outstanding.

Table of Contents

XBP Global Holdings, Inc.

Quarterly Financial Statements

For the quarterly period ended September 30, 2025

TABLE OF CONTENTS


Item 1. Financial Statements

Condensed Consolidated and Combined Financial Statements

Condensed Consolidated and Combined Balance Sheets as of September 30, 2025 (Successor) (Unaudited) and December 31, 2024 (Predecessor)	2

Condensed Consolidated and Combined Statements of Operations for the periods August 1, 2025 to September 30, 2025 (Successor), July 1, 2025 to July 31, 2025 (Predecessor), January 1, 2025 to July 31, 2025 (Predecessor), and the three and nine months ended September 30, 2024 (Predecessor) (Unaudited)	3

Condensed Consolidated and Combined Statements of Comprehensive Loss for the periods August 1, 2025 to September 30, 2025 (Successor), July 1, 2025 to July 31, 2025 (Predecessor), January 1, 2025 to July 31, 2025 (Predecessor), and the three and nine months ended September 30, 2024 (Predecessor) (Unaudited)	5

Condensed Consolidated and Combined Statements of Stockholders’ Deficit for the periods August 1, 2025 to September 30, 2025 (Successor), July 1, 2025 to July 31, 2025 (Predecessor), January 1, 2025 to July 31, 2025 (Predecessor), and the three and nine months ended September 30, 2024 (Predecessor) (Unaudited)	6

Condensed Consolidated and Combined Statements of Cash Flows for the periods August 1, 2025 to September 30, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and the nine months ended September 30, 2024 (Predecessor) (Unaudited)	8

Notes to the Condensed Consolidated and Combined Financial Statements (Unaudited)	9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	55

Item 3. Quantitative and Qualitative Disclosures about Market Risk	80

Item 4. Controls and Procedures	80

PART II — OTHER INFORMATION	81

Item 1. Legal Proceedings	81

Item 1A. Risk Factors	82

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Equity Securities	83

Item 3. Defaults Upon Senior Securities	83

Item 4. Mine Safety Disclosures	83

Item 5. Other Information	83

Item 6. Exhibits	84

Signatures	85

Table of Contents

XBP Global Holdings, Inc. and Subsidiaries

Condensed Consolidated and Combined Balance Sheets

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor)

(in thousands of United States dollars except share and per share amounts)


	Successor		Predecessor
	Consolidated		Combined and Consolidated
	September 30,
	2025		December 31,
	(Unaudited)		2024
Assets
Current assets
Cash and cash equivalents	$	34,534	$	11,635
Restricted cash		29,705		52,432
Accounts receivable, net of allowance for credit losses of $4,504 and $3,279, respectively		136,586		18,663
Related party receivables and prepaid expenses		515		12,105
Inventories, net		11,680		7,204
Prepaid expenses and other current assets		28,960		22,358
Total current assets		241,980		124,397
Property, plant and equipment, net of accumulated depreciation of $2,175 and $193,946, respectively		88,534		45,106
Operating lease right-of-use assets, net		31,304		30,543
Goodwill		214,264		39,718
Intangible assets, net		352,686		132,842
Other noncurrent assets		19,164		17,815
Total assets	$	947,932	$	390,421

Liabilities and Stockholders' Equity (Deficit)
Liabilities
Current liabilities
Current portion of long-term debt	$	34,863	$	1,433,484
Accounts payable		67,626		42,602
Related party payables		5,568		3,383
Income tax payable		3,114		5,682
Accrued liabilities		56,389		44,898
Accrued compensation and benefits		55,798		68,179
Accrued interest		7,433		80,039
Customer deposits		16,853		19,900
Deferred revenue		13,138		6,583
Obligation for claim payment		53,902		70,805
Current portion of finance lease liabilities		5,464		5,441
Current portion of operating lease liabilities		10,215		9,210
Total current liabilities		330,363		1,790,206
Long-term debt, net of current maturities		346,603		1,468
Finance lease liabilities, net of current portion		6,684		6,381
Net defined benefit liability		12,693		1,041
Deferred income tax liabilities		50,368		13,118
Long-term income tax liabilities		8,057		8,285
Operating lease liabilities, net of current portion		23,195		23,907
Other long-term liabilities		39,466		2,803
Total liabilities		817,429		1,847,209
Commitments and Contingencies (Note 10)

Stockholders' Equity (Deficit)
Successor's common stock, par value of $0.0001 per share; 400,000,000 shares authorized; 117,515,972 shares issued and outstanding as of September 30, 2025		12		—
Successor's preferred stock, par value of $0.0001 per share; 20,000,000 shares authorized; none issued and outstanding as of September 30, 2025		—		—
Additional paid in capital		437,368		—
Accumulated deficit		(305,838)		—
Predecessor’s net parent investment		—		(1,449,634)
Accumulated other comprehensive loss:
Foreign currency translation adjustment		(1,039)		(7,154)
Unrealized pension actuarial gains, net of tax		—		—
Total accumulated other comprehensive loss		(1,039)		(7,154)
Total stockholder's equity (deficit)		130,503		(1,456,788)
Total liabilities and stockholder's equity (deficit)	$	947,932	$	390,421

The accompanying notes are an integral part of these condensed consolidated and combined financial statements.

Table of Contents

XBP Global Holdings, Inc. and Subsidiaries

Condensed Consolidated and Combined Statements of Operations

For the periods August 1, 2025 to September 30, 2025 (Successor), July 1, 2025 to July 31, 2025 (Predecessor), January 1, 2025 to July 31, 2025 (Predecessor), and the three and nine months ended September 30, 2024 (Predecessor)

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	Successor		Predecessor
	Consolidated		Combined and Consolidated
	Period from August 1, 2025 through September 30,		Period from July 1, 2025 through July 31,		Three Months Ended September 30,
	2025		2025		2024
Revenue	$	152,403	$	56,527	$	231,939
Related party revenue		4		151		1,487
Cost of revenue (exclusive of depreciation and amortization)		119,324		43,800		189,387
Selling, general and administrative expenses (exclusive of depreciation and amortization)		17,980		10,966		26,824
Depreciation and amortization		9,142		3,196		12,100
Impairment of goodwill		295,800		—		343
Related party expense		2,327		599		2,667
Operating profit (loss)		(292,166)		(1,883)		2,105
Other expense (income), net:
Interest expense, net		9,709		4,551		26,388
Debt modification and extinguishment costs, net		—		—		256
Sundry expense (income), net		684		(361)		(563)
Other income, net		(923)		(28)		(23)
Loss before reorganization items and income taxes		(301,636)		(6,045)		(23,953)
Reorganization items		831		(1,519,485)		—
Profit (loss) before income taxes		(302,467)		1,513,440		(23,953)
Income tax expense		3,371		33,347		4,364
Net profit (loss)	$	(305,838)	$	1,480,093	$	(28,317)
Net loss per common share
Basic and diluted		(2.60)

The accompanying notes are an integral part of these condensed consolidated and combined financial statements.

Table of Contents

XBP Global Holdings, Inc. and Subsidiaries

Condensed Consolidated and Combined Statements of Operations

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	Successor		Predecessor
	Consolidated		Combined and Consolidated
	Period from August 1, 2025 through September 30,		Period from January 1, 2025 through July 31,		Nine Months Ended September 30,
	2025		2025		2024
Revenue	$	152,403	$	429,187	$	660,293
Related party revenue		4		2,474		3,724
Cost of revenue (exclusive of depreciation and amortization)		119,324		339,981		520,382
Selling, general and administrative expenses (exclusive of depreciation and amortization)		17,980		53,946		94,392
Depreciation and amortization		9,142		22,313		38,709
Impairment of goodwill		295,800		—		343
Related party expense		2,327		5,750		8,488
Operating profit (loss)		(292,166)		9,671		1,703
Other expense (income), net:
Interest expense, net		9,709		75,226		75,339
Debt modification and extinguishment costs, net		—		121		256
Sundry expense (income), net		684		1,644		(422)
Other income, net		(923)		(28)		(54)
Loss before reorganization items and income taxes		(301,636)		(67,292)		(73,416)
Reorganization items		831		(1,557,825)		—
Profit (loss) before income taxes		(302,467)		1,490,533		(73,416)
Income tax expense		3,371		35,875		9,410
Net profit (loss)	$	(305,838)	$	1,454,658	$	(82,826)
Net loss per common share
Basic and diluted		(2.60)

The accompanying notes are an integral part of these condensed consolidated and combined financial statements.

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XBP Global Holdings, Inc. and Subsidiaries

Condensed Consolidated and Combined Statements of Comprehensive Loss

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	Successor		Predecessor
	Consolidated		Combined and Consolidated
	Period from August 1, 2025 through September 30,		Period from July 1, 2025 through July 31,		Three Months Ended September 30,
	2025		2025		2024
Net profit (loss)	$	(305,838)	$	1,480,093	$	(28,317)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(1,039)		2,148		(1,874)
Total other comprehensive (loss) gains, net of tax		(1,039)		2,148		(1,874)
Comprehensive profit (loss)	$	(306,877)	$	1,482,241	$	(30,191)


	Successor		Predecessor
	Consolidated		Combined and Consolidated
	Period from August 1, 2025 through September 30,		Period from January 1, 2025 through July 31,		Nine Months Ended September 30,
	2025		2025		2024
Net profit (loss)	$	(305,838)	$	1,454,658	$	(82,826)
Other comprehensive loss, net of tax
Foreign currency translation adjustments		(1,039)		(690)		(1,995)
Total other comprehensive loss, net of tax		(1,039)		(690)		(1,995)
Comprehensive profit (loss)	$	(306,877)	$	1,453,968	$	(84,821)

The accompanying notes are an integral part of these condensed consolidated and combined financial statements.

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XBP Global Holdings, Inc. and Subsidiaries

Condensed Consolidated and Combined Statements of Stockholders’ Deficit

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	Combined and Consolidated
			Accumulated Other Comprehensive Loss
			Foreign
			Currency		Total
	Net Parent		Translation		Stockholders'
	Investment		Adjustment		Deficit
Balances at January 1, 2025 (Predecessor)	$	(1,449,634)	$	(7,154)	$	(1,456,788)
Net profit January 1, 2025 to March 31, 2025		39,623		—		39,623
Foreign currency translation adjustment		—		(2,113)		(2,113)
Equity-based compensation		105		—		105
Net intercompany transactions with parent group entities		1,305		—		1,305
Balances at March 31, 2025 (Predecessor)	$	(1,408,601)	$	(9,267)	$	(1,417,868)
Net loss April 1, 2025 to June 30, 2025		(65,059)		—		(65,059)
Foreign currency translation adjustment		—		(725)		(725)
Equity-based compensation		(1,899)		—		(1,899)
Net intercompany transactions with parent group entities		(1,602)		—		(1,602)
Balances at June 30, 2025 (Predecessor)	$	(1,477,161)	$	(9,992)	$	(1,487,153)
Net loss July 1, 2025 to July 31, 2025, excluding plan of reorganization and fresh start accounting adjustments		(28,095)		—		(28,095)
Foreign currency translation adjustment		—		2,148		2,148
Equity-based compensation		—		—		—
Net intercompany transactions with parent group entities		6,439		—		6,439
Balances prior to application of fresh start accounting and the business combination at July 31, 2025 (Predecessor)	$	(1,498,817)	$	(7,844)	$	(1,506,661)

The accompanying notes are an integral part of these condensed consolidated and combined financial statements.

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XBP Global Holdings, Inc. and Subsidiaries

Condensed Consolidated and Combined Statements of Stockholders’ Deficit

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	Consolidated
								Accumulated Other
								Comprehensive Loss
										Unrealized
								Foreign		Pension
								Currency		Actuarial
	Common Stock			Additional		Net Parent		Translation		Gains (Losses),		Accumulated		Total stockholder's
	Shares	Amount		Paid in Capital		Investment		Adjustment		net of tax		Deficit		Equity
Balances at August 1, 2025 (Successor) (1)	117,515,972	$	12	$	437,110	$	—	$	—	$	—	$	—	$	437,122
Net loss August 1, 2025 to September 30, 2025	—		—		—		—		—		—		(305,838)		(305,838)
Equity-based compensation	—		—		258		—		—		—		—		258
Foreign currency translation adjustment	—		—		—		—		(1,039)		—		—		(1,039)
Net unrealized pension actuarial gains, net of tax	—		—		—		—		—		—		—		—
Balances at September 30, 2025 (Successor)	117,515,972	$	12	$	437,368	$	—	$	(1,039)	$	—	$	(305,838)	$	130,503

(1)

Balances after the Business Combination, Plan (as such terms are described in Note 1, General) and the fresh start accounting adjustments as discussed in Note 4, Fresh Start Accounting. Initial equity balances of the Successor reflects the 35,915,548 shares of Common Stock of the Company (the combined entity XBP Global Holdings, Inc.) assigned to the stockholders of XBP Europe Holdings, Inc. prior to the Business Combination and the issuance of 81,600,424 shares of Common Stock of the Company to the holders of Allowed Notes Claims ((as such terms are described in Note 1, General).


	Combined and Consolidated
			Accumulated Other Comprehensive Loss
			Foreign
			Currency		Total
	Net Parent		Translation		Stockholders'
	Investment		Adjustment		Deficit
Balances at January 1, 2024 (Predecessor)	$	(1,239,674)	$	(4,604)	$	(1,244,278)
Net loss January 1, 2024 to March 31, 2024		(25,664)		—		(25,664)
Foreign currency translation adjustment		—		766		766
Equity-based compensation		1,182		—		1,182
Net intercompany transactions with parent group entities		7,901		—		7,901
Balances at March 31, 2024 (Predecessor)	$	(1,256,255)	$	(3,838)	$	(1,260,093)
Net loss April 1, 2024 to June 30, 2024		(28,845)		—		(28,845)
Foreign currency translation adjustment		—		(887)		(887)
Equity-based compensation		218		—		218
Net intercompany transactions with parent group entities		(1,688)		—		(1,688)
Balances at June 30, 2024 (Predecessor)	$	(1,286,570)	$	(4,725)	$	(1,291,295)
Net loss July 1, 2024 to September 30, 2024		(28,317)		—		(28,317)
Foreign currency translation adjustment		—		(1,874)		(1,874)
Equity-based compensation		92		—		92
Net intercompany transactions with parent group entities		(3,588)		—		(3,588)
Balances at September 30, 2024 (Predecessor)	$	(1,318,383)	$	(6,599)	$	(1,324,982)

The accompanying notes are an integral part of these condensed consolidated and combined financial statements.

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XBP Global Holdings, Inc. and Subsidiaries

Condensed Consolidated and Combined Statements of Cash Flows

For the periods August 1, 2025 to September 30, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and the nine months ended September 30, 2024 (Predecessor)

(in thousands of United States dollars except share and per share amounts)

(Unaudited)


	Successor		Predecessor
	Consolidated		Combined and Consolidated
	Period from August 1, 2025 through September 30,		Period from January 1, 2025 through July 31,		Nine Months Ended September 30,
	2025		2025		2024
Cash flows from operating activities
Net profit (loss)	$	(305,838)	$	1,454,658	$	(82,826)
Adjustments to reconcile net profit (loss) to cash provided by (used in) operating activities
Depreciation and amortization		9,142		22,313		38,709
Original issue discount, debt premium and debt issuance cost amortization		1,400		(14,595)		(50,081)
Reorganization items		—		(1,626,790)		—
Interest on BR Exar AR Facility		—		(2,399)		(3,752)
Debt modification and extinguishment loss (gain), net		—		121		256
Impairment of goodwill		295,800		—		343
Provision for credit losses		920		914		14,825
Deferred income tax provision		958		36,396		7,050
Equity-based compensation expense		258		204		1,491
Unrealized foreign currency (gain) loss		(858)		(659)		(449)
Loss (gain) on sale of assets		190		1,967		(558)
Fair value adjustment for private warrants liability		3		—		—
Paid-in-kind interest		—		28,848		86,688
Change in operating assets and liabilities, net of effect from acquisitions
Accounts receivable		6,821		(94,905)		6,413
Prepaid expenses and other current assets		1,536		(2,203)		3,279
Accounts payable and accrued liabilities		(894)		30,172		(37,063)
Related party payables		4,448		6,134		8,996
Additions to outsourced contract costs		(20)		(118)		(330)
Net cash provided by (used in) operating activities		13,866		(159,942)		(7,009)
Cash flows from investing activities
Net cash received from acquisition (Refer Note 5)		—		1,485		—
Purchase of property, plant and equipment		(3,396)		(3,081)		(5,154)
Additions to internally developed software		(473)		(1,067)		(2,533)
Proceeds from sale of assets		603		(27)		3,412
Net cash used in investing activities		(3,266)		(2,690)		(4,275)

Cash flows from financing activities
Cash paid for debt issuance costs		(1,035)		(3,719)		(359)
Principal payments on finance lease obligations		(322)		(3,360)		(5,484)
Borrowings from other loans		1,436		3,785		7,115
Proceeds from Revolving Credit Facility		—		18,000		—
Proceeds from Super Senior Secured Term Loan		—		40,000		—
Proceeds from ABL Facility		23,000		58,903		—
Repayments on ABL Facility		(9,600)		—		—
Repayment of Second Lien Note		(2,000)		(5,975)		(4,000)
Proceeds from DIP New Money Loans		—		80,000		—
Borrowing under BR Exar AR Facility		10,000		23,775		45,424
Repayments under BR Exar AR Facility		(9,266)		(23,397)		(37,522)
Principal repayments on senior secured term loans and other loans		(2,235)		(42,748)		(8,602)
Net cash provided by (used in) financing activities		9,978		145,264		(3,428)
Effect of exchange rates on cash, restricted cash and cash equivalents		(234)		(2,806)		(1,129)
Net increase (decrease) in cash, restricted cash and cash equivalents		20,344		(20,174)		(15,841)
Cash, restricted cash and cash equivalents
Beginning of period		43,895		64,069		53,496
End of period	$	64,239	$	43,895	$	37,655
Supplemental cash flow data:
Income tax payments, net of refunds received	$	1,190	$	2,897	$	2,233
Interest paid		2,187		10,077		63,740
Cash paid for reorganization items		—		68,965		—
Noncash investing and financing activities:
Assets acquired through right-of-use arrangements		237		11,070		16,384
Waiver and consent fee payable added to outstanding balance of Senior Secured Term Loan		—		—		1,000
Promissory note issued for assets acquisition		—		—		2,371
Common stock issued for the Business Combination		—		32,328		—
Common stock issued to settle liabilities subject to compromise		—		407,363		—
Issuance of July 2030 Notes for settlement of the DIP Facility		—		175,000		—
Conversion of DIP Facility into Super Senior Term Loan		—		6,000		—
Accrued capital expenditures		60		180		805

The accompanying notes are an integral part of these condensed consolidated and combined financial statements.

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XBP Global Holdings, Inc. and Subsidiaries

Notes to the Condensed Consolidated and Combined Financial Statements

(in thousands of United States dollars except share and per share amounts or unless otherwise noted)

(Unaudited)

1. General

XBP Global Holdings, Inc. (the “Company” or “XBP Global”) is a multinational technology and services company powering intelligent workflows for organizations worldwide. The Company’s proprietary platforms, agentic AI-driven automation, and deep domain expertise across industries and the public and private sectors enable its clients to entrust the Company with their most impactful digital transformations and workflows. The Company’s automation solutions containing proprietary software suites and deep domain expertise allow global organizations to address critical challenges resulting from the massive amounts of data obtained and created from their mission critical operations. The Company’s solutions address the life cycle of transaction processing and enterprise information management, from enabling payment gateways and data exchanges across multiple systems, to matching inputs against contracts and handling exceptions, to ultimately depositing payments and distributing communications. The Applied Workflow Automation segment provides services powered by intelligent, AI-enabled workflows that generate outcomes for clients’ mission critical systems. Revenue primarily stems from transactions processed and includes payment processing, data capture, analysis, decisioning, distribution and transformation across industries and the public and private sectors, primarily in Americas and Europe, and increasingly in Asia. The Technology segment of the Company primarily focuses on sales of recurring software licenses and related maintenance, hardware solutions and related maintenance and professional services. The Company believes that its process expertise, information technology capabilities and operational insights enable its customers to more efficiently and effectively execute transactions, make decisions, drive revenue and profitability, and communicate critical information to their employees, end-customers, partners, and vendors. By combining innovation with execution excellence, the Company helps organizations reimagine how they work, transact, and unlock value.

On July 29, 2025, the Company finalized its acquisition of Exela Technologies BPA, LLC (n/k/a XBP Americas, LLC)(collectively with its subsidiaries, “BPA,” and such acquisition, the “Business Combination”) pursuant to a Membership Interest Purchase Agreement dated July 3, 2025 (the “MIPA”). The consideration for the sale was $1.00, reflecting the encumbered nature of BPA which at the time of entry into the MIPA was involved in voluntary bankruptcy proceedings under the caption In re DocuData Solutions, L.C., Case No. 25-90023 (CML) (the “Chapter 11 Cases”). The Business Combination was subject to certain conditions subsequent including emergence of BPA and certain of its affiliates from the Chapter 11 Cases, which occurred on July 29, 2025. Prior to the Business Combination, the Company and BPA had both been indirect subsidiaries of Exela Technologies, Inc. (“ETI”). In connection with the Business Combination, the Company changed its name from “XBP Europe Holdings, Inc.” to “XBP Global Holdings, Inc.”

BPA is comprised of the assets and operations of (i) the following wholly-owned and indirect subsidiaries of BPA: DocuData Solutions, L.C., Exela Intermediate, LLC, Exela Finance, Inc., BancTec (Canada), Inc., BancTec (Philippines), Inc., BancTec (Puerto Rico), Inc., BancTec Group LLC, BancTec India Pvt. Ltd., BancTec Intermediate Holding, Inc., BancTec, Inc., BillSmart Solutions LLC, BTC Ventures, Inc., Charter Lason, Inc., CorpSource Holdings, LLC, Deliverex, LLC, DFG2 Holdings, LLC, DFG2, LLC, Digital Mailroom LLC, DrySign, LLC, Economic Research Services, Inc., Exela BR SPV, LLC, Exela Receivables 3 Holdco, LLC, Exela Receivables 3, LLC, Exela Technologies India Private Ltd., Exela XBP, LLC, ExelaPay, LLC, FTS Parent Inc., Glo-X, Inc., HOV Enterprise Services, Inc., HOV Services, Inc., HOV Services, LLC, HOVG, LLC, Ibis Consulting, Inc., Imagenes Digitales S.A. de C.V., J & B Software, Inc., Kinsella Media, LLC, Lason International, Inc., LexiCode Healthcare, Inc., Managed Care Professionals, LLC, Meridian Consulting Group, LLC, Novitex Government Solutions, LLC, Novitex Intermediate, LLC, Pacific Northwest United Information Services, LLC, Pangea Acquisitions, Inc., PCH Subscription Services, LLC, Plexus Global Finance, LLC, Promotora de Tecnologia, S.A. de C.V., RC4 Capital, LLC, Recognition de Mexico S.A. de C.V., Recognition Mexico Holding, Inc., Regulus America LLC, Regulus Group II LLC, Regulus Group LLC, Regulus Holding Inc., Regulus Integrated Solutions LLC, Regulus West LLC, Rust Consulting, Inc., Rustic Canyon III, LLC, S-Corp Philippines, Inc., Services Integration Group, L.P., SIG-G.P., L.L.C., SourceCorp BPS, Inc., Sourcecorp de Mexico S.A. de C.V., SourceCorp Legal, Inc., SourceCorp Management, Inc., Sourcecorp, Incorporated, SourceHOV Canada

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Company, SourceHOV HealthCare, Inc., SourceHOV Holdings, Inc., SourceHOV India Pvt. Ltd., SourceHOV LLC, TRAC Holdings, LLC, TransCentra, Inc., and United Information Services, Inc. and (ii) the following affiliates of BPA: Exela Enterprise Solutions, Inc., NEON Acquisition, LLC, Novitex Enterprise Solutions Canada, Inc. and Reaktr LLC.

The Business Combination was accounted for as a reverse acquisition in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). Under this method of accounting, XBP Europe Holdings, Inc. (now XBP Global) was treated as the “acquired” company for financial reporting purposes even though BPA survives as an indirect wholly-owned subsidiary of XBP Global.

Chapter 11 Reorganization

On March 3, 2025 (the “Petition Date”), BPA along with certain affiliates (the “BPA Debtors”) commenced the Chapter 11 Cases in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). On April 16, 2025 the BPA Debtors entered into a Plan Support Agreement (as amended, the “Plan Support Agreement”) with an ad hoc group of holders (the “Ad Hoc Group”) of certain 11.5% secured notes issued pursuant to the 2026 Indentures (as defined below), ETI, certain non-BPA Debtor subsidiaries of ETI (together with ETI, the “Consenting ETI Entities”), and certain other parties thereto. In the Plan Support Agreement such parties agreed, subject to certain conditions, to support the BPA Debtors’ reorganization plan in the Chapter 11 Cases and to take all commercially reasonable actions necessary and appropriate to facilitate the restructuring of the BPA Debtors’ indebtedness and to complete the restructuring transactions contemplated under the Plan Support Agreement (the “Restructuring”). On May 7, 2025, the BPA Debtors filed a plan of reorganization (the “Plan”) reflecting the proposed Restructuring. The Plan was confirmed by the Bankruptcy Court on June 23, 2025.

On July 29, 2025 (the “Emergence Date”), BPA consummated the Restructuring and emerged from bankruptcy having satisfied or waived all the conditions set forth in the Plan. In accordance with ASC 852, Reorganizations (“ASC 852”), BPA was required to apply fresh start accounting upon its emergence from bankruptcy. The Company evaluated transaction activity of BPA between the Emergence Date and July 31, 2025 and concluded that an accounting convenience date of July 31, 2025 (the “Convenience Date”) was appropriate for the adoption of fresh start accounting which resulted in BPA becoming a new entity for financial reporting purposes as of the Convenience Date.

On the Emergence Date, in connection with the consummation of the Restructuring and pursuant to the Plan:

●

The Company’s Third Amended and Restated Certificate of Incorporation was filed with the Delaware Secretary of State and became effective increasing authorized shares to 400,000,000 shares of common stock, par value $0.0001 per share (“Common Stock”) and 20,000,000 shares of preferred stock of the Company, and changing the Company’s name to XBP Global Holdings, Inc.

●

The Company issued 81,799,821 shares of Common Stock to holders of Allowed Notes Claims (claims based on the 2026 Indentures (as defined below), and as further defined in the Plan) and for backstop and funding fees, resulting in 117,515,972 shares of Common Stock issued and outstanding, and new warrants to purchase 6,632,418 shares of Common Stock to GP 3XCV LLC and XCV-STS, LLC (two subsidiaries of ETI). The issuances reflected a value of $4.98 per share for purposes of the Plan (“Plan Equity Value”) based on a valuation of BPA equity at $407.0 million and an overall implied equity valuation of the combined Company of $585.7 million) and were exempt from registration under Section 1145 of the U.S. Bankruptcy Code. The warrants have standard terms and are exercisable immediately at Plan Equity Value.

●

The Company entered into a Tax Funding Agreement (the “Tax Funding Agreement”) with the Reorganized Debtors (the BPA Debtors following the Restructuring), as Agent, and the Consenting ETI Parties. The Tax Funding Agreement provides for the Consenting ETI Parties to fund certain Transaction Tax Liabilities (as defined in the Plan) (up to an initial funding obligation of $15 million and any excess over $25 million), with security over Blocked ETI Shares (as defined therein) and provisions for release upon payment.

●

The Reorganized Debtors entered into exit financing arrangements (refer to Note 7, Long-term Debt and Credit Facilities), including:

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o

An Indenture reflecting the issuance of $183.0 million of July 2030 Notes as described in Note 7, Long-term Debt and Credit Facilities, in a cashless rollover of a comparable amount of debtor-in-possession obligations from the Chapter 11 Cases, plus $18.0 million in additional funding provided by the Company in exchange for July 2030 Notes (the “XBP Funding”), with the remaining $10.0 million of debtor-in-possession obligations from the Chapter 11 Cases being cancelled and replaced with $6.0 million of loans under the Super Senior Term Loan as described in Note 7, Long-term Debt and Credit Facilities.

o

The Super Senior Term Loan consisting of $40.0 million of new loans used to refinance the BPA Debtors’ prepetition senior secured term loan facility, which was in the aggregate principal amount of approximately $38.9 million, plus accrued interest, fees, and expenses, and $6.0 million of take-back loans, secured by Term Loan Priority Collateral (as defined therein).

o

An Amended and Restated Credit and Security Agreement with BRF Finance Co. LLC, as Agent, and the lenders party thereto, amending and restating the Second Lien Note, dated February 27, 2023, as described in Note 7, Long-term Debt and Credit Facilities, providing for term loans bearing interest at Term SOFR plus 7.5%, and other terms as set forth therein.

o

The ABL Facility, as described in Note 7, Long-term Debt and Credit Facilities, with MidCap Financial Trust as Agent and Lender, providing a $150 million revolving credit facility, secured by ABL Priority Collateral (as defined therein), with terms including interest at SOFR plus Applicable Margin (3.75%-4.25% based on EBITDA), maturity 36 months from closing, financial covenants (e.g., Fixed Charge Coverage Ratio), and other customary provisions.

In addition, on the Emergence Date, the indenture dated as of December 9, 2021 (as amended, supplemented or otherwise modified from time to time), among Exela Intermediate LLC and Exela Finance Inc., as issuers, the guarantors party thereto (including certain of the Debtors, as defined therein), and U.S. Bank Trust Company, National Association, as trustee and collateral agent, governing the 11.500% first-priority senior secured notes due 2026, and the indenture dated as of July 11, 2023 (as amended, supplemented or otherwise modified from time to time), among Exela Intermediate LLC and Exela Finance Inc., as issuers, the guarantors party thereto (including certain of the Debtors), and U.S. Bank Trust Company, National Association, as trustee and collateral agent, governing the 11.500% first-priority senior secured notes due 2026 (together, the “2026 Indentures”), were terminated, and all obligations thereunder were cancelled and discharged, with holders of claims thereunder receiving distributions of Common Stock as described above. The ABL Facility also replaced BPA’s then existing securitization arrangements with PNC Bank.

As a result of the Restructuring and the Business Combination, the Company was no longer considered a “controlled company” under the rules of The Nasdaq Stock Market. Prior to the Restructuring and the Business Combination, BTC International Holdings, Inc. (“BTC”), an indirect subsidiary of ETI, owned approximately 60.7% of the Company’s Common Stock. Pursuant to the Plan, BTC’s shares were distributed to holders of Allowed Notes Claims (including ETI). Post-issuance of new shares under the Plan, beneficial ownership is dispersed, with no beneficial holder owning more than 50% of the voting securities of the Company. As of September 30, 2025 ETI held approximately 29.1%, Gates Capital Management approximately 25.7%, and Avenue Capital approximately 9.8%, in each case, assuming the exercise of all warrants held by the Consenting ETI Parties. The Restructuring and the Business Combination represent a dissipation of control, not a “change of control” in the traditional sense, because no new third party acquired control of XBP Europe Holdings, Inc. as a result of the Restructuring of the BPA Debtors and the subsequent Business Combination. As of the date of this quarterly report, there are no known arrangements that may result in a further change in control.

Basis of Presentation

Financial information prior to the Emergence Date is referred to as “Predecessor” company information, which reflects the combined historical financial statements of BPA prepared using BPA’s previous combined basis of accounting. The financial information beginning August 1, 2025 is referred to as “Successor” company information and reflects the consolidated financial statements of XBP Global, including the financial statement effects of recording fair value adjustments and the capital structure resulting from the Business Combination and fresh start accounting of BPA.

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Black lines have been drawn to separate the Successor’s financial information from that of the Predecessor since their financial statements are not comparable as a result of the application of acquisition accounting and the Company’s capital structure resulting from the Business Combination and fresh start accounting of BPA.

Successor:

The accompanying unaudited condensed consolidated financial statements as of and for the period August 1, 2025 to September 30, 2025, includes the condensed consolidated balance sheet, and statement of operations, comprehensive income (loss), changes in equity, and cash flows of XBP Global. All significant intercompany items and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been omitted pursuant to the SEC’s rules and regulations. However, management believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments (which are of a normal recurring nature) necessary to present fairly the Company’s unaudited financial position, results of operations and cash flows. The unaudited results of operations and cash flows for the period from August 1, 2025 to September 30, 2025 are not necessarily indicative of the results of operations or cash flows that may be expected for the remainder of 2025. The unaudited condensed consolidated financial statements should be read in conjunction with the combined and consolidated financial statements of the accounting acquirer and related notes thereto for the year ended December 31, 2024 included on pages F-126 through F-171 in the Company’s Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 filed with the SEC on July 15, 2025.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Predecessor:

The condensed combined and consolidated BPA financial statements (the “BPA financial statements”) include the accounts of the wholly-owned direct and indirect subsidiaries and affiliates of BPA (as listed above). Throughout fiscal 2024 and the period January 1, 2025 to the Petition Date that are covered by the BPA financial statements, BPA operated as part of ETI. The accompanying combined and consolidated financial statements have been prepared from ETI’s historical accounting records and are presented on a stand-alone basis as if BPA’s operations had been conducted independently from ETI. The operations of BPA are in various legal entities either with a direct ownership relationship or affiliate relationship through ETI. Accordingly, ETI and its subsidiaries’ net parent investment in these operations is shown in lieu of a statement of member’s equity in the combined and consolidated financial statements. The combined and consolidated financial statements and related notes to the combined and consolidated financial statements have been prepared in accordance with U.S. GAAP.

The consolidated and combined statements of operations and comprehensive loss include all revenues and costs directly attributable to BPA, including costs for facilities, functions and services used by BPA. Costs for certain functions and services delivered by ETI are directly charged to BPA based on specific identification when possible or based on a reasonable allocation driver or other allocation methods. Current and deferred income taxes have been determined based on the stand-alone results of BPA. However, because BPA filed as part of ETI’s tax group in certain jurisdictions, BPA’s actual tax balances may differ from those reported. BPA’s portion of its domestic and certain income taxes for jurisdictions outside the United States are deemed to have been settled in the period the related tax expense was recorded.

All intercompany transactions and balances within BPA have been eliminated. The Predecessor financial statements include assets and liabilities that have been determined to be specifically identifiable or otherwise attributable

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to BPA. Transactions with affiliated companies owned by ETI or its subsidiaries which are not a part of BPA are reflected as related party transactions.

All of the allocations and estimates in the combined and consolidated financial statements are based on assumptions that management believes are reasonable. However, the combined and consolidated financial statements included herein may not be indicative of the financial position, results of operations, and cash flows of BPA if BPA had been a separate, stand-alone entity during the periods presented.

Actual costs that would have been incurred if BPA had been a stand-alone business would depend on multiple factors, including organizational structure and strategic decisions.

As described below, as a result of the application of fresh start accounting and the effects of the implementation of the Plan, the combined and consolidated financial statements after the Emergence Date are not comparable with the combined and consolidated financial statements on or before the Emergence Date. Refer to Note 4, Fresh Start Accounting, for additional information.

As part of Business Combination, the Company reevaluated its segment reporting, resulting in the presentation of two businesses: Applied Workflow Automation and Technology.

●

Applied Workflow Automation. The Applied Workflow Automation segment provides services powered by intelligent, AI-enabled workflows that generate outcomes for clients’ mission critical systems. Revenue primarily stems from transactions processed and includes payment processing, data capture, analysis, decisioning, distribution and transformation across industries and the public and private sectors, primarily in Americas and Europe, and increasingly in Asia. The Applied Workflow Automation segment includes the Company’s Bills & Payments, healthcare industry solutions, on-site enterprise solutions, integrated communications and enterprise legal management business units which serve leading banks, payers and providers, utilities as well as federal, regional and local government entities.

●

Technology. The Technology segment focuses on the sale of recurring and perpetual software licenses, software maintenance and professional services, as well as hardware solutions and maintenance. The Company offers an industry-agnostic and cross-departmental suite of products, with primary focus on scalable workflows leveraging AI through neural networks together with deep domain expertise. The Company also offers industry specific platforms for the banking and healthcare industries.

Prior periods have been recast to reflect the Company's current segment presentation. See Note 15, Segment Information.

Certain prior period amounts have been reclassified to conform to the 2025 presentation.

Net Profit (Loss) per Share

Earnings per share (“EPS”) is computed by dividing net profit (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, using the more dilutive of the two-class method and the if-converted method in the period of earnings. The two-class method is an earnings allocation method that determines earnings per share (when there are earnings) for common stock and participating securities. The if-converted method assumes all convertible securities are converted into common stock. Diluted EPS excludes all dilutive potential shares of common stock if their effect is anti-dilutive.

As the Company experienced a net loss for the period August 1, 2025 to September 30, 2025, the Company did not include the effect of 13,267,398 of Common Stock issuable upon exercise of 13,267,398 outstanding warrants as of September 30, 2025 (refer to Note 13, Stockholders’ Equity and Warrants) or the effect of the aggregate number of shares issuable pursuant to outstanding restricted stock units (2,175,762 as of September 30, 2025, refer to Note 12,

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Stock-Based Compensation) in the calculation of diluted profit (loss) per share for the three months ended September 30, 2025, because their effects were anti-dilutive (i.e., if included, would reduce the net loss per share).

The following table provides details underlying Company’s loss per basic and diluted share calculation for the period from August 1, 2025 to September 30, 2025 (Successor):


	Successor
	Consolidated
	Period from August 1, 2025 through September 30,
	2025
Net loss attributable to common stockholders (A)	$	(305,838)
Weighted average common shares outstanding – basic and diluted (B)		117,515,972
Loss Per Share:
Basic and diluted (A/B)	$	(2.60)

2. Significant Accounting Policies

The information presented below supplements the Significant Accounting Policies information presented in the combined and consolidated financial statements of BPA (as the accounting acquirer) and related notes thereto for the year ended December 31, 2024 included on pages F-126 through F-171 in the Company’s Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 filed with the SEC on July 15, 2025.

There were changes to accounting policies implemented during the period from August 1, 2025 through September 30, 2025, as described below. These policy changes were made in connection with the adoption of fresh start accounting and the Business Combination. The Company set new accounting policies and updated existing accounting policies for business combinations, segment reporting, restricted cash, impairment of indefinite-lived assets, goodwill and long-lived assets and foreign currency translation. There were no changes to accounting policies during the period from January 1, 2025 through July 31, 2025.

Use of Estimates in Preparation of the Condensed Consolidated Financial Statements

Estimates and judgments relied upon in preparing these condensed consolidated and combined financial statements include, among others, revenue recognition for multiple element arrangements, allowance for expected credit losses, income taxes, depreciation, amortization, employee benefits, equity-based compensation, contingencies, goodwill, intangible assets, right of use assets, pension obligations, pension assets, and asset and liability valuations. The Company regularly assesses these estimates and records changes in estimates in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Stock-Based Compensation

The Company accounts for all equity-classified awards under stock-based compensation plans at their fair value. This fair value is measured at the fair value of the awards at the grant date and recognized as compensation expense on a straight-line basis over the vesting period. The fair value of the awards on the grant date is determined using the stock price on the respective grant date in the case of restricted stock units and using an option pricing model in the case of stock options. The Company accounts for forfeitures as they occur. The expense resulting from share-based payments is recorded in selling, general and administrative expense in the condensed consolidated and combined statements of operations.

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Business Combinations

The Company includes the results of operations of the businesses acquired as of the respective dates of acquisition. The Company allocates the fair value of the purchase price of acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill.

Segment Reporting

The Company consists of two segments: Applied Workflow Automation and Technology (as further described in Note 1, General, above, and Note 15, Segment Information, below).

Restricted Cash

Restricted cash is the carrying amount of cash and cash equivalents which are restricted under contract or otherwise as to withdrawal or usage. These include deposits held for claim payments on behalf of customers or under agreements entered into with others, but exclude compensating balance arrangements that do not legally restrict the use of cash amounts shown on the balance sheet.

Impairment of Indefinite-Lived Assets

The Company conducts its annual indefinite-lived assets impairment tests on October 1st of each year for its indefinite-lived assets, including trade names, or more frequently if indicators of impairment exist. When performing the impairment test, the Company has the option of performing a qualitative or quantitative assessment to determine if an impairment has occurred. A quantitative assessment requires comparison of the fair value of the asset to its carrying value. If the carrying value of the indefinite-lived assets exceeds fair value, the Company recognizes an impairment loss by an amount which is equal to the excess of carrying value over fair value. The Company utilizes the “Income Approach,” specifically the “Relief-from-Royalty Method” (“RFR”), which has the basic tenet that a user of an intangible asset would have to make a stream of payments to the owner of the asset in return for the rights to use that asset. Refer to Note 6, Intangible Assets and Goodwill for additional discussion of impairment of trade names.

Impairment of Long-Lived Assets

The Company reviews the recoverability of its long-lived assets, including finite-lived trade names, customer relationships, developed technology, capitalized software costs, outsourced contract costs, acquired software, and property, plant and equipment, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the ability to recover the carrying value of the asset from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. The primary measure of fair value is based on discounted cash flows based in part on the financial results and the expectation of future performance.

Goodwill

Goodwill represents the excess purchase price over tangible and intangible assets acquired less liabilities assumed arising from business combinations. Goodwill is generally allocated to reporting units based upon relative fair value (taking into consideration other factors such as synergies) when an acquired business is integrated into multiple reporting units. The Company’s reporting units are at the component level, for which discrete financial information is prepared and regularly reviewed by management. When a business within a reporting unit is disposed of, goodwill is allocated to the disposed business using the relative fair value method.

The Company conducts its annual goodwill impairment tests on October 1st of each year, or more frequently if indicators of impairment exist. When performing the annual impairment test, the Company has the option of performing a qualitative or quantitative assessment to determine if an impairment has occurred. If a qualitative assessment indicates

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that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would be required to perform a quantitative impairment analysis for goodwill. The quantitative analysis requires a comparison of fair value of the reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company uses a combination of the “Guideline Public Company Method of the Market Approach” and the “Discounted Cash Flow Method of the Income Approach” to determine the reporting unit fair value. Refer to Note 6, Intangible Assets and Goodwill for additional discussion of the consideration of impairment of goodwill.

Foreign Currency Translation

The functional currency for the Company’s subsidiaries located in India, the Philippines, and Mexico is the United States dollar. All other international subsidiaries’ functional currency is their local currency. These assets and liabilities of such subsidiaries are translated at exchange rates in effect at the balance sheet date while income and expense amounts are translated at average exchange rates during the period. The resulting foreign currency translation adjustments are disclosed as a separate component of other comprehensive profit (loss).

Revenue Recognition

The Company accounts for revenue by first evaluating whether a performance obligation exists. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. All of the Company’s material sources of revenue are derived from contracts with customers, primarily relating to the provision of business and transaction processing services and sales of recurring software licenses and professional services within each of the Company’s segments. The Company does not have any significant extended payment terms, as payment is typically received shortly after goods are delivered or services are provided.

Nature of Services

The Company’s primary performance obligations are to stand ready to provide various forms of workflow automation services, consisting of a series of distinct services, but that are substantially the same, and have the same pattern of transfer over time, and accordingly are combined into a single performance obligation. The Company’s obligation to its customers is typically to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of transactions processed, requests fulfilled, etc.); as such, the total transaction price is variable. The Company allocates variable fees to the single performance obligation charged to the distinct service period in which the Company has the contractual right to bill under the contract.

Revenue from the sale of software licenses is recognized as a single performance obligation at the point in time that the software license is delivered to the customer. Perpetual licenses or non-cancelable licenses are granted for a non-refundable fee, which are recognized at a point in time. No significant obligations or contingencies exist with regard to delivery, customer acceptance or rights of return at the time revenue is recognized. Professional services revenue consists of implementation services for new customers, or implementations of new products for existing customers. Professional services are typically sold on a time-and-materials basis and billed monthly based on actual hours incurred.

Revenue from the sale of hardware solutions is recognized on a point in time basis and related maintenance is recognized ratably over the contractual term.

Disaggregation of Revenues

The Company is organized into two segments: Applied Workflow Automation and Technology (See Note 15, Segment Information). The following tables disaggregate revenue from contracts by segment and by geographic region

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for the periods August 1, 2025 to September 30, 2025 (Successor), July 1, 2025 to July 31, 2025 (Predecessor), January 1, 2025 to July 31, 2025 (Predecessor) and the three and nine months ended September 30, 2024 (Predecessor):


	Successor						Predecessor
	Consolidated						Combined and Consolidated
	Period from August 1 2025 through September 30, 2025						Period from July 1 2025 through July 31, 2025						Three Months Ended September 30, 2024
	Applied Workflow Automation		Technology		Total		Applied Workflow Automation		Technology		Total		Applied Workflow Automation		Technology		Total
U.S.A.	$	115,165	$	8,235	$	123,400	$	51,693	$	3,804	$	55,497	$	215,453	$	13,089	$	228,542
EMEA		18,546		7,638		26,184		—		—		—		—		—		—
Other		2,823		—		2,823		1,181		—		1,181		4,884		—		4,884
Total	$	136,534	$	15,873	$	152,407	$	52,874	$	3,804	$	56,678	$	220,337	$	13,089	$	233,426


	Successor						Predecessor
	Consolidated						Combined and Consolidated
	Period from August 1 2025 through September 30, 2025						Period from January 1 2025 through July 31, 2025						Nine Months Ended September 30, 2024
	Applied Workflow Automation		Technology		Total		Applied Workflow Automation		Technology		Total		Applied Workflow Automation		Technology		Total
U.S.A.	$	115,165	$	8,235	$	123,400	$	390,987	$	30,068	$	421,055	$	608,092	$	40,527	$	648,619
EMEA		18,546		7,638		26,184		—		—		—		—		—		—
Other		2,823		—		2,823		10,606		—		10,606		15,398		—		15,398
Total	$	136,534	$	15,873	$	152,407	$	401,593	$	30,068	$	431,661	$	623,490	$	40,527	$	664,017

Contract Balances

The following table presents contract assets, contract liabilities and contract costs recognized at September 30, 2025 (Successor), December 31, 2024 (Predecessor) and January 1, 2024 (Predecessor):


	Successor		Predecessor
	Consolidated		Combined and Consolidated
	September 30,		December 31,		January 1,
	2025		2024		2024
Accounts receivable, net	$	136,586	$	18,663	$	42,833
Deferred revenues (1)		13,474		6,940		6,466
Customer deposits		16,853		19,900		23,302
Costs to obtain and fulfill a contract		1,053		1,164		1,397

(1)

Includes $0.4 million and $0.4 million of non-current portion of deferred revenues reported as part of other long-term liabilities on the Company’s combined and consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively. Non-current portion of deferred revenues was $1.0 million as of January 1, 2024.

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The following table describes the changes in the allowance for expected credit losses for the periods August 1, 2025 to September 30, 2025 (Successor) and January 1, 2025 to July 31, 2025 (Predecessor) and the year ended December 31, 2024 (Predecessor) (all related to accounts receivables):


	September 30,
	2025
Balance at January 1 of the allowance for expected credit losses (Predecessor)	$	3,279
Provision for expected loss		914
Write-off charged against the allowance		(162)
Recoveries collected		(1,192)
Foreign currency exchange rate adjustment		8
Balance at July 31 of the allowance for expected credit losses (Predecessor)	$	2,847
Balance at August 1 of the allowance for expected credit losses (Successor)		3,764
Provision for expected loss		920
Write-off charged against the allowance		(14)
Recoveries collected		(188)
Foreign currency exchange rate adjustment		22
Balance at September 30 of the allowance for expected credit losses (Successor)	$	4,504


	December 31,
	2024
Balance at January 1 of the allowance for expected credit losses (Predecessor)	$	5,580
Provision for expected loss		18,094
Write-off charged against the allowance		(17,887)
Recoveries collected		(2,517)
Foreign currency exchange rate adjustment		9
Balance at December 31 of the allowance for expected credit losses (Predecessor)	$	3,279

Accounts receivable, net includes $22.8 million and $13.5 million as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively, representing amounts not yet billed to customers. The Company has accrued the unbilled receivables for work performed in accordance with the terms of its contracts with customers.

Deferred revenues relate to payments received in advance of performance under a contract. A significant portion of this balance relates to maintenance contracts or other service contracts where the Company received payments for upfront conversions or implementation activities which do not transfer a service to the customer but rather are used in fulfilling the related performance obligations that transfer over time. The advance consideration received from customers is deferred over the contract term. The Company recognized revenue of $0.8 million, $0.5 million and $6.4 million during the periods August 1, 2025 to September 30, 2025 (Successor), July 1, 2025 to July 31, 2025 (Predecessor) and January 1, 2025 to July 31, 2025 (Predecessor), respectively, that had been deferred as of January 1, 2025 (Predecessor). The Company recognized revenue of $1.9 million during the period August 1, 2025 to September 30, 2025 (Successor) out of $5.1 million of the deferred revenue acquired as part of the Business Combination on July 31, 2025 (Refer to Note 5, Business Combination). The Company recognized revenue of $0.8 million and $5.2 million during the three and nine months ended September 30, 2024 (Predecessor), respectively, that had been deferred as of January 1, 2024 (Predecessor). The Company recognized revenue of $5.8 million during the year ended December 31, 2024 (Predecessor), that had been deferred as of January 1, 2024 (Predecessor).

Costs incurred to obtain and fulfill contracts are deferred and presented as part of intangible assets, net and expensed on a straight-line basis over the estimated benefit period. The Company recognized $0.1 million, less than $0.1 million and $0.2 million of amortization for these costs during the periods August 1, 2025 to September 30, 2025 (Successor), July 1, 2025 to July 31, 2025 (Predecessor) and January 1, 2025 to July 31, 2025 (Predecessor), respectively, within depreciation and amortization expense in the Company’s consolidated and combined statements of operations. The Company recognized $0.2 million and $0.5 million of amortization for these costs during the three and nine months ended September 30, 2024 (Predecessor), respectively, within depreciation and amortization expense in the Company’s condensed consolidated and combined statements of operations. These costs represent incremental external

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costs or certain specific internal costs that are directly related to the contract acquisition or fulfillment and can be separated into two principal categories: contract commissions and fulfillment costs. Applying the practical expedient in ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred, if the amortization period would have been one year or less. These costs are included in selling, general and administrative expenses. The effect of applying this practical expedient was not material.

Customer deposits consist primarily of amounts received from customers in advance for postage. These advanced postage deposits are used to cover the costs associated with postage, with the corresponding postage revenue being recognized as services are performed.

Performance Obligations

At the inception of each contract, the Company assesses the goods and services promised in its contracts and identifies each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts. For the majority of the Company’s business and transaction processing service contracts, revenues are recognized as services are provided based on an appropriate input or output method, typically based on the related labor or transactional volumes.

Certain of the Company’s contracts have multiple performance obligations, including contracts that combine software implementation services with post-implementation customer support. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company estimates its expected costs of satisfying a performance obligation and adds an appropriate margin for that distinct good or service. The Company also uses the adjusted market approach whereby it estimates the price that customers in the market would be willing to pay. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Certain of the Company’s software implementation performance obligations are deemed satisfied at a point in time, typically when customer acceptance is obtained.

When evaluating the transaction price, the Company analyzes, on a contract-by-contract basis, all applicable variable consideration. The nature of the Company’s contracts gives rise to variable consideration, including volume discounts, contract penalties, and other similar items that generally decrease the transaction price. The Company estimates these amounts based on the expected amount to be provided to customers and reduces revenues recognized. The Company does not anticipate significant changes to its estimates of variable consideration.

The Company includes reimbursements from customers, such as postage costs, in revenue, while the related costs are included in cost of revenue.

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Transaction Price Allocated to the Remaining Performance Obligations

In accordance with optional exemptions available under GAAP, the Company does not disclose the value of unsatisfied performance obligations for (a) contracts with an original expected length of one year or less, and (b) contracts for which variable consideration relates entirely to an unsatisfied performance obligation, which comprise the majority of the Company’s contracts. The Company has certain non-cancellable contracts where the Company receives a fixed monthly fee in exchange for a series of distinct services that are substantially the same and have the same pattern of transfer over time, with the corresponding remaining performance obligations as of September 30, 2025 (Successor) in each of the future periods below:


Estimated Remaining Fixed Consideration for Unsatisfied Performance Obligations

Remainder of 2025	$	6,755
2026		11,089
2027		7,716
2028		4,024
2029		1,248
2030 and thereafter		3,963
Total	$	34,795

3. New Accounting Pronouncements

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an annual tabular effective tax rate reconciliation disclosure including information for specified categories and jurisdiction levels, as well as, disclosure of income taxes paid, net of refunds received, disaggregated by federal, state/local, and significant foreign jurisdiction. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact this ASU adoption will have on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-04, Debt-Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which amends ASC 470-20 to clarify the requirements related to accounting for the settlement of a debt instrument as an induced conversion. This ASU is intended to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20 for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible. This ASU is effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently assessing the impact this ASU adoption will have on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which is intended to provide more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation and amortization) included in certain expense captions presented on the consolidated statement of operations. This new standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently assessing the impact this ASU adoption will have on its consolidated financial statements.

In May 2025, the FASB issued ASU 2025-03, Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, which revises the guidance in ASC 805 on identifying the accounting acquirer in a business

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combination in which the legal acquiree is a variable interest entity (“VIE”). This ASU is intended to improve comparability between business combinations that involve VIEs and those that do not. Under this ASU, a reporting entity involved in a business combination effected primarily by the exchange of equity interests must consider the factors in ASC 805-10-55-12 through 55-15 to determine which entity is the accounting acquirer regardless of whether the legal acquiree is a VIE. More specifically, when considering those factors, the reporting entity can determine that a transaction in which the legal acquiree is a VIE represents a reverse acquisition (in which the legal acquirer is identified as the acquiree for accounting purposes). As a result, comparability is increased with business combinations in which the legal acquiree is a VIE. This ASU is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The amendments in this ASU must be applied prospectively to any business combination that occurs after the initial adoption date. The Company is currently assessing the impact this ASU adoption will have on its consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. This ASU is effective for fiscal years beginning after December 15, 2025, and interim reporting periods in those years, with early adoption permitted. Entities should apply the new guidance prospectively. The Company is currently assessing the impact this ASU adoption will have on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, to modernize the accounting guidance for the costs to develop software for internal use. The standard applies to costs incurred to develop or obtain software for internal use. ASU 2025-06 amends the existing standard that refers to various stages of a software development project to align better with current software development methods, such as agile programming. Under the new standard, entities will commence capitalizing eligible costs when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed, and the software will be used to perform the function intended. The new standard also supersedes the guidance related to costs incurred to develop a website. The ASU’s amendments are effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The guidance can be applied on a prospective basis, a modified basis for in-process projects or on a retrospective basis. The Company is currently assessing the impact this ASU adoption will have on its consolidated financial statements.

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4. Fresh Start Accounting

Upon emergence from the Restructuring, the Predecessor met the criteria and was required to adopt fresh start accounting in accordance with ASC 852, Reorganizations, which on the Emergence Date resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or deficit as of the fresh start reporting date. The criteria requiring fresh start accounting are: (1) the holders of the then-existing common shares of the Predecessor received less than 50 percent of the new common shares of the Successor outstanding upon emergence from bankruptcy and (2) the reorganization value of the entity’s assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims.

Fresh start accounting requires that new fair values be established for BPA’s assets, liabilities and equity as of the Emergence Date or the Convenience Date (July 31, 2025, as discussed above), and therefore certain values and operational results of the condensed consolidated financial statements subsequent to July 31, 2025 are not comparable to those in the Company’s condensed consolidated financial statements prior to and including July 31, 2025. The Convenience Date fair values of the Successor’s assets and liabilities differ materially from their recorded values as reflected on the historical balance sheet of the Predecessor.

Reorganization Value

The reorganization value derived from the range of enterprise values associated with the Plan was allocated to BPA’s identifiable tangible and intangible assets and liabilities based on their fair values. Under ASC 852, Reorganization, value generally approximates the fair value of the entity before considering liabilities and is intended to approximate the amount a willing buyer would pay for the assets immediately after the effects of the restructuring. The value of the reconstituted entity (i.e., Successor) was based on management projections and the valuation models as determined by the Company’s financial advisors in setting an estimated range of enterprise values. As set forth in the Disclosure Statement for Joint Plan of Reorganization approved by the Bankruptcy Court, the valuation analysis resulted in an enterprise value between $682 million and $800 million, with a mid-point of $741 million. For U.S. GAAP purposes, we valued the Successor’s individual assets, liabilities, and equity instruments and determined the value of the enterprise was approximately $733 million as of the Emergence Date, which is between the low-point and the mid-point of the forecast enterprise value ranges approved by the Bankruptcy Court. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of fresh start accounting, are described below in greater detail within the valuation process.

The following table reconciles the enterprise value to the equity value of the Successor as of the Convenience Date:


		July 31, 2025
Enterprise value	$	732,730
Plus: Cash and cash equivalents		11,667
Less: Total debt		(337,034)
Equity value	$	407,363

The following table reconciles enterprise value to reorganization value of the Successor (i.e., value of the reconstituted entity) and total reorganization value:


		July 31, 2025
Enterprise value	$	732,730
Plus: Cash and cash equivalents		11,667
Plus: Current liabilities excluding current maturities of long-term debt		218,079
Plus: Non-interest bearing noncurrent liabilities		125,993
Reorganization value of the reconstituted Successor	$	1,088,469

With the assistance of third-party valuation advisors, the Company determined the enterprise and corresponding equity value of the Successor using various valuation approaches and methods, including: (i) income approach using a

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calculation of the present value of future cash flows based on financial projections, (ii) the market approach using selling prices of similar assets and (iii) the cost approach.

The enterprise value and corresponding equity value are dependent upon achieving the future financial results set forth in the Company’s valuation model using an asset-based methodology of estimated financial information, considerations and projections, applying a combination of the income, cost and market approaches as of the Convenience Date. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the financial projections, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond the Company’s control. Accordingly, there is no assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially, including variances when presented in the Company’s Form 10-K report for the year ending December 31, 2025.

Reorganization Items, net

Reorganization items represent (i) expenses incurred relating to the Chapter 11 Cases as a direct result of the Plan, (ii) gains or losses from liabilities settled and (iii) fresh start accounting adjustments, and are recorded in “Reorganization items, net” in the Company’s unaudited condensed consolidated and combined statements of operations. Contractual interest expense from the Petition Date through the Emergence Date associated with BPA’s 2026 Indentures was accrued or recorded in the condensed combined and consolidated statement of operations in interest expense, net. Professional service provider charges associated with reorganization that were incurred before the Petition Date are recorded in selling, general and administrative in the consolidated and combined statements of operations.

The following table summarizes the losses (gains) on reorganization items, net:


	Successor		Predecessor
	Consolidated		Combined and Consolidated
	Period from August 1, 2025 through September 30,		Period from July 1, 2025 through July 31,			Period from January 1, 2025 through July 31, 2025
	2025		2025			2025
Legal and professional fees	$	926	$	25,304	$	68,404
Derecognition of unamortized debt discount, premium and issuance costs		—		—		(81,384)
Gain on settlement of liabilities subject to compromise		—		(902,106)		(902,162)
Fresh start accounting adjustments		—		(639,040)		(639,040)
Cost of debt refinancing pursuant to reorganization plan		—		1,591		1,591
Gain on rejected contracts and leases		(95)		(1,260)		(1,260)
Gain on settlement of DIP facility		—		(4,000)		(4,000)
DIP credit agreement fees		—		26		26
Total reorganization items, net	$	831	$	(1,519,485)	$	(1,557,825)

Valuation Process

The fair values of BPA’s principal assets, including trade names, customer relationships, internally developed product suite, leased real property, owned real property and personal property were estimated as of the Emergence Date.

Trade Names

The fair value of trade names was estimated using the RfR method under the income approach. RfR estimates the value of the trade names based on the royalty payments that would be avoided by owning the assets. The analysis considered projected revenues attributable to the trade names over their expected useful life, royalty rates derived from market data for trade names/trademarks in the business services industry, and discount rates reflecting the risk profile of

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the cash flows. The royalty savings were tax-affected and discounted to present value using a rate consistent with market participant expectations.

Customer Relationships

The fair value of customer relationships was estimated using the multi-period excess earnings method (“MPEEM”) under the income approach. The MPEEM attributes cash flow to a specific intangible asset based on residual cash flows from a set of assets generating revenues after accounting for appropriate returns on and of other assets contributing to that revenue generation. Cash flows were forecasted based on expected revenue from existing customers, adjusted for renewal probabilities/attrition rates, and anticipated operating costs required to service these relationships. After-tax cash flows were discounted using a rate considering the risk of these customers relative to the overall risk of the business.

Internally Developed Product Suite

The fair value of the internally developed product suite was estimated using the replacement cost method under the cost approach. This method estimates the value based on the cost a market participant would incur to recreate the existing internally developed software, adjusted for physical, functional, and economic obsolescence. The analysis considered historical development costs, current labor and overhead rates, and an allowance for developer profit and entrepreneurial incentive. The resulting cost was tax-affected and adjusted to reflect the economic benefits of the software/developed product suite in its current state.

Leased Real Property

The off-market component of the right of use assets (ROUA) was estimated using the Income Approach. Under this approach, the cash flow differential between the contract and market rents for each lease are present valued using a market-derived discount rate. Leases with a present value of contract rent cash flows within 5.0% of the present value of market rent cash flows were assumed to have no off-market component.

Owned Real Property

The fair values of the buildings and land improvements were estimated via the Cost Approach, and the underlying land was valued via the Sales Comparison Approach.

For the buildings and land improvements, utilizing the direct method of the Cost Approach, the replacement cost new (“RCN”) was estimated using construction cost information obtained from published data sources such as Marshall Valuation Service (for the owned location located in the U.S.) or CBRE market reports as well as publicly available data from Central Public Works Department (for the owned location located in India).

For the land, utilizing the Sales Comparison Approach, comparable land sale data and listings of land for sale were compiled and qualitatively compared to the subject properties. Variances in market conditions at the time of sale, property characteristics, and other relevant factors were considered and analyzed when necessary.

Personal Property

The fair value of the personal property such as machinery and equipment, leasehold improvements, office furniture and equipment, computer hardware and software were estimated using the indirect method of the Cost Approach. Under the indirect method of the Cost Approach, the reproduction cost new (“CRN”) for each asset or group of assets was estimated by indexing historical costs recorded in the Fixed Asset Registers based on asset type and acquisition dates. Given the assets have been in use for a period of time, consideration was given to physical deterioration, economical and functional obsolescence. The estimate of physical deterioration was primarily conducted under the age/life concept. Under this concept, the physical loss in value was attributed to the relationship between the estimated useful life of an asset and its remaining useful life at a given point in time. Hold factors were estimated

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depreciation floors used to establish a minimal value for assets remaining in use that have met or exceeded their expected normal useful life (“NUL”). Construction in progress was reported at its cost as of the Convenience Date.

Condensed Consolidated and Combined Balance Sheet

The following illustrates the effects on the Company’s consolidated and combined balance sheet due to the reorganization and fresh start accounting adjustments. The explanatory notes following the table below provide further details on the adjustments, including the assumptions and methods used to determine fair value for the Company’s assets, liabilities, and warrants as of the Convenience Date.


	As of July 31, 2025
	Predecessor		Reorganization Adjustments			Fresh Start Adjustments			Successor (a)
Assets
Current assets
Cash and cash equivalents	$	17,958	$	(6,291)	(1)	$	—		$	11,667
Restricted cash		30,743		—			—			30,743
Accounts receivable, net		38,187		74,467	(2)		—			112,654
Related party receivables and prepaid expenses		3,938		—			—			3,938
Inventories, net		6,508		—			—			6,508
Prepaid expenses and other current assets		32,164		(5,413)	(3)		—			26,751
Total current assets		129,498		62,763			—			192,261
Property, plant and equipment, net		42,785		—			30,330	(16)		73,115
Operating lease right-of-use assets, net		29,542		—			—			29,542
Goodwill		39,718		—			414,499	(17)		454,217
Intangible assets, net		119,032		—			201,741	(18)		320,773
Other noncurrent assets		16,297		2,264	(4)		—			18,561
Total assets	$	376,872	$	65,027		$	646,570		$	1,088,469

Liabilities and Stockholders' Equity (Deficit)
Liabilities
Current liabilities
Current portion of long-term debt	$	247,322	$	(217,344)	(5)	$	—		$	29,978
Accounts payable		23,008		19,115	(6)		—			42,123
Related party payables		39		1,311	(7)		—			1,350
Income tax payable		10,126		(7,814)	(8)		—			2,312
Accrued liabilities		21,181		20,185	(9)		—			41,366
Accrued compensation and benefits		25,376		8,562	(10)		—			33,938
Accrued interest		—		1,877	(11)		—			1,877
Customer deposits		83		17,696	(7)		—			17,779
Deferred revenue		9,701		—			—			9,701
Obligation for claim payment		53,176		—			—			53,176
Current portion of finance lease liabilities		4,884		290	(7)		—			5,174
Current portion of operating lease liabilities		9,283		—			—			9,283
Total current liabilities		404,179		(156,122)			—			248,057
Long-term debt, net of current maturities		1,465		305,591	(12)		—			307,056
Finance lease liabilities, net of current portion		7,303		—			—			7,303
Net defined benefit liability		1,069		—			—			1,069
Deferred income tax liabilities		13,721		35,793	(8)		—			49,514
Long-term income tax liabilities		8,496		(545)	(8)		—			7,951
Operating lease liabilities, net of current portion		22,533		—			—			22,533
Other long-term liabilities		288		37,335	(13)		—

XBP Global Holdings, Inc. 10-Q