AVer Information Inc. and Subsidiaries

Consolidated Financial Statements and Independent Auditor's Report

2025 and 2024 Fiscal Years

Address: 8F., No. 157, Da'an Road, Tucheng District, New Taipei City 236042, Taiwan, R. O. C. Tel: (02)22698535

Representation Letter

The entities that are required to be included in the consolidated financial statements of AVer Information Inc. for the fiscal year of 2025 (from January 1, 2025 to December 31), under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements of the parent company and subsidiaries prepared in conformity with the International Financial Reporting Standard 10, "Consolidated Financial Statements." In addition, the information required to be disclosed in the combined financial statements of affiliated enterprises is included in the consolidated financial statements of the parent company and subsidiaries. Consequently, AVer Information Inc. and its subsidiaries do not prepare a separate set of consolidated financial statements.

Very truly yours

AVer Information Inc.

Chung-Song Kuo
Chairman

March 4, 2026

Independent Auditor's Report (translated from Chinese)

To the Board of Directors and Shareholders of AVer Information Inc.

Opinion

We have audited the accompanying consolidated financial statements of Aver Information Inc. and its subsidiaries (AVer Group), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and related consolidated statements of comprehensive income, changes in equity, cash flows, and notes to consolidated financial statements (including summary of significant accounting policies) from January 1 to December 31, 2025 and 2024. The independent auditor has completed the audits of these statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of AVer Information Inc. as of December 31, 2025 and 2024 and its consolidated financial performance and its consolidated cash flows from January 1 to December 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of AVer Information Inc. in accordance with The Norm of the Professional Ethics for Certified Public Accountant of the Republic of China

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of AVer Group for the fiscal year of 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for AVer Group's consolidated financial statements for the fiscal year of 2025 as stated as follows:

Assessment of sales returns and allowances

The main customers of AVer Group are distributors in the Americas. In order to promote sales and expand the market, AVer Group and its main distributors have entered multiple contracts on sales discounts (allowances). Since calculation methods applied to respective contracts vary by product or sales achievement; bases of the calculations also involve the risks of estimation uncertainty of expected sales amount, therefore, the assessment of the sales discounts (allowances) has been identified as a key auditor matter.

We obtained an understanding of the methods applied to sales discounts (allowances) by AVer Group, inquired the basis of management's estimation on expected sales amount, and obtained documents to assess the reasonableness thereof. Furthermore, we inspected AVer Group's contracts of sales discounts (allowances), checked whether the sales discount (allowance) calculations were implemented in accordance with AVer Group's established policies, verified the actual payment requests by the distributors and inspected the achievement of sales forecast after the reporting period in order to assess the reasonableness of the sales discount (allowance) estimations.

Other Matter

AVer Information Inc. has prepared parent company only financial statements for the fiscal years of 2025 and 2024 as references on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and maintains the internal control as management determines necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing AVer Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the Audit Committee) are responsible for overseeing AVer Group's financial reporting process.

Auditors' Responsibilities for the audit of the Consolidated Financial Statements

The objectives of our audit are to obtain reasonable assurance on whether the consolidated financial statements are free from material misstatement as a whole, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, however, is not a guarantee that an audit conducted in accordance with the auditing standards on auditing of the Republic of China will always detect a material misstatement when it exists in the consolidated financial statements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, could reasonably be expected to

influence the economic decisions of users taken on the basis of these consolidated financial statements.

We exercise professional judgment and professional skepticism throughout the audit as part of an audit in accordance with the standards on auditing of the Republic of China. We also conduct the following tasks:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error; design and perform audit procedures in response to those risks; and obtain audit evidence that are sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of AVer Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events of conditions that may cast significant doubt on AVer Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause AVer Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements (including relevant notes), and whether the consolidated

financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within AVer Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings (including any significant deficiencies in internal control that we identify during our audit).

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the fiscal year of 2025. And are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors' report are Pei-Dep Chen and I-Ching Liu.

Deloitte & Touche
Taipei, Taiwan
Republic of China
March 11, 2026

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and consolidated financial statements shall prevail.

AVer Information Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
December 31, 2025 and 2024
Unit: In Thousands of New Taiwan Dollars

Code	A	December 31, 2025			December 31, 2024
		A	m	o	u	n	t
CURRENT ASSETS
1100	Cash and cash equivalents (Note 6)		$ 1,306,885	29	$ 1,527,225	32
1136	Financial assets at amortized cost(Note 8)		-	-	28,916	1
1150	Notes receivable		12	-	1,373	-
1170	Account receivable (Notes 9 and 25)		375,743	8	304,149	6
1200	Other receivable (Note 25)		14,930	-	10,757	-
1220	Income tax assets for current period		30,456	1	26,396	1
130X	Inventories (Note 10)		380,375	9	325,535	7
1479	Other current assets		38,655	1	49,725	1
11XX	Total current assets		2,147,056	48	2,274,076	48
NONCURRENT ASSETS
1517	Financial assets at fair value through other comprehensive income (Note 7)		1,076,471	24	1,152,123	24
1600	Property, plant, and equipment (Note 12)		1,101,536	25	1,145,071	24
1755	Right-of-use assets (Note 13)		62,849	1	74,915	2
1780	Intangible assets		8,379	-	15,263	-
1840	Deferred income tax assets (Note 21)		84,147	2	85,930	2
1990	Other noncurrent assets		11,673	-	12,420	-
15XX	Total noncurrent assets		2,345,055	52	2,485,722	52
1XXX	TOTAL ASSETS		$ 4,492,111	100	$ 4,759,798	100
Code	LIABILITIES AND EQUITY
CURRENT LIABILITIES
2100	Short-term loans (Note 14)		$ 400,000	9	$ 400,000	9
2170	Accounts payable (Note 25)		189,893	4	93,628	2
2200	Other payables (Notes 15 and 25)		340,717	8	346,225	7
2230	Income tax liabilities for current period		9,253	-	55,080	1
2280	Capital lease liabilities (Note 13)		22,482	-	16,592	-
2365	Refund liability (Note 5)		77,742	2	69,557	2
2399	Other current liabilities (Note 16)		16,813	-	13,820	-
21XX	Total current liabilities		1,056,900	23	994,902	21
NONCURRENT LIABILITIES
2550	Provision (Note 16)		49,835	1	44,824	1
2570	Deferred income tax liabilities (Note 21)		18,633	1	24,387	1
2580	Capital lease liabilities (Note 13)		49,289	1	64,682	1
2670	Other noncurrent liabilities		5,437	-	12,383	-
25XX	Total noncurrent liabilities		123,194	3	146,276	3
2XXX	Total Liabilities		1,180,094	26	1,141,178	24
EQUITY (Note 18)
3110	Capital - common stock		929,200	21	929,200	20
3200	Capital surplus		735,120	16	735,120	15
Retained earnings
3310	Appropriated as legal reserve		444,526	10	425,576	9
3320	Appropriated as special reserve		-	-	266,115	6
3350	Unappropriated earnings		1,394,448	31	1,200,006	25
3300	Total retained earnings		1,838,974	41	1,891,697	40
3400	Other equity		( 191,277)	( 4)	62,603	1
3XXX	Total equity		3,312,017	74	3,618,620	76
TOTAL
			$ 4,492,111	100	$ 4,759,798	100

The accompanying notes are an integral part of the consolidated financial statements.

AVer Information Inc. and Subsidiaries
CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME
January 1 to December 31, 2025 and 2024
Unit: In Thousands of New Taiwan Dollars, Except Earnings Per Share

Code		Fiscal year 2025		Fiscal year 2024
		Amount	%	Amount	%
4000	REVENUE (Notes 19, 25 and 28)	$ 2,530,372	100	$ 2,610,003	100
5000	COST OF REVENUE (Notes 10, 20 and 25)	1,052,634	42	1,045,243	40
5900	GROSS PROFIT	1,477,738	58	1,564,760	60
	OPERATING EXPENSES (Notes 9 and 20)
6100	Marketing	813,430	32	821,553	32
6200	General and administrative	98,306	4	99,482	4
6300	Research and development	454,441	18	477,673	18
6450	Expected credit loss(gain)	352	-	2,305	-
6000	Total operating expenses	1,366,529	54	1,401,013	54
6900	INCOME FROM OPERATIONS	111,209	4	163,747	6
	NON-OPERATING INCOME AND EPENSES (Notes 20 and 25)
7100	Interest revenue	23,670	1	30,135	1
7010	Other revenues	11,344	-	14,056	1
7020	Other gains and losses	( 4,628)	-	57,049	2
7050	Finance cost	( 13,170)	-	( 13,108)	-
7000	Total non-operating income and expenses	17,216	1	88,132	4
				(Continued)

Code		Fiscal year 2025		Fiscal year 2024
		Amount	%	Amount	%
7900	INCOME BEFORE INCOME TAX	$ 128,425	5	$ 251,879	10
7950	INCOME TAX EXPENSE (Note 21)	23,184	1	62,376	3
8200	NET INCOME OTHER COMPREHENSIVE INCOME (LOSS)	105,241	4	189,503	7
8310	Items that will not be reclassified subsequently to profit or loss
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	( 244,822)	( 10)	304,942	12
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences arising on translation of foreign operations	( 9,058)	-	23,776	1
8300	Other comprehensive income, net	( 253,880)	( 10)	328,718	13
8500	TOTAL COMPREHENSIVE INCOME FOR THE YEAR	($ 148,639)	( 6)	$ 518,221	20

(Continued)

Code		Fiscal year 2025		Fiscal year 2024
		Amount	%	Amount	%
8610	NET INCOME ATTRIBUTABLE TO: Shareholders of the Company	$ 105,241	4	$ 189,503	7
	TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO : Shareholders of the Company	($ 148,639)	(6)	$ 518,221	20
8710	Earnings per share (Note 22)
9710	Basic	$ 1.13		$ 2.04
9810	Diluted	$ 1.13		$ 2.02

The accompanying notes are an integral part of the consolidated financial statements.

AVer Information Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
January 1 to December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars, Except Dividends Per Share)

Code		Capital - common s t o c k	Capital surplus	R e t a i n e d e a r n i n g s			O t h e r e q u i t y
				Appropriated as legal reserve	Appropriated as special reserve	Unappropriated e a r n i n g s	Total	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Foreign operation Translation of the financial statements Exchange difference	Total
A1	BALANCE, JANUARY 1, 2024	$ 929,200	$ 735,120	$ 400,580	$ 555,630	$ 870,497	$ 1,826,707	($ 283,827)	$ 17,712	($ 266,115)
	Appropriation and distribution of 2023 retained earnings:
B1	Legal reserve	-	-	24,996	-	( 24,996 )	-	-	-	-
B5	Cash dividends to shareholders - NT$1.34 per share	-	-	-	-	( 124,513 )	( 124,513 )	-	-	( 124,513 )
B17	Reversal of special reserve	-	-	-	( 289,515 )	289,515	-	-	-	-
D1	Net income in 2024	-	-	-	-	189,503	189,503	-	-	189,503
D3	Other comprehensive income (loss) in 2024, net of income tax	-	-	-	-	-	-	304,942	23,776	328,718
D5	Total comprehensive income (loss) in 2024	-	-	-	-	189,503	189,503	304,942	23,776	328,718
Z1	BALANCE, DECEMBER 31, 2024	929,200	735,120	425,576	266,115	1,200,006	1,891,697	21,115	41,488	62,603
	Appropriation and distribution of 2024 retained earnings
B1	Legal reserve	-	-	18,950	-	( 18,950 )	-	-	-	-
B5	Cash dividends to shareholders - NT$1.70 per share	-	-	-	-	( 157,964 )	( 157,964 )	-	-	( 157,964 )
B17	Reversal of special reserve	-	-	-	( 266,115 )	266,115	-	-	-	-
D1	Net income in 2025	-	-	-	-	105,241	105,241	-	-	105,241
D3	Other comprehensive income (loss) in 2025, net of income tax	-	-	-	-	-	-	( 244,822 )	( 9,058 )	( 253,880 )
D5	Total comprehensive income (loss) in 2025	-	-	-	-	105,241	105,241	( 244,822 )	( 9,058 )	( 253,880 )
Z1	BALANCE,DECEMBER 31, 2025	$ 929,200	$ 735,120	$ 444,526	$ -	$ 1,394,448	$ 1,838,974	($ 223,707 )	$ 32,430	($ 191,277)

The accompanying notes are an integral part of the consolidated financial statements.

AVer Information Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
January 1 to December 31, 2025 and 2024
Unit: In Thousands of New Taiwan Dollars

Code	CASH FLOWS FROM OPERATING ACTIVITIES	Fiscal year 2025	Fiscal year 2024
A10000	Profit (loss) before tax	$ 128,425	$ 251,879
A20010	Adjustments to reconcile profit (loss):
A20100	Depreciation expense	114,496	132,020
A20200	Amortization expense	8,365	11,789
A20300	Expected credit impairment loss (Reversal)	352	2,305
A20400	Net loss (gain) on financial instruments at fair value through profit or loss	( 4,972)	( 2,904)
A20900	Interest expense	13,170	13,108
A21200	Interest revenue	( 23,670)	( 30,135)
A21300	Dividend income	( 5,133)	( 3,142)
A22500	Loss (gain) on disposal of property, plan and equipment	104	568
A23700	Provision of inventory valuation loss and stock obsolescence	( 3,116)	5,693
A24100	Unrealized foreign exchange loss (gain)	7,533	( 19,260)
A29900	Provision of liability reserve	24,802	8,258
A30000	Net changes of operating assets and liabilities
A31115	Financial assets at fair value enforced through profit or loss	6,558	2,904
A31130	Notes receivable	1,361	605
A31150	Accounts receivable	( 68,252)	( 25,941)
A31180	Other receivables	( 4,185)	( 2,260)
A31200	Inventories	( 54,049)	13,895
A31240	Other current assets	11,146	( 8,724)
A32110	Financial liability at fair value enforced through profit or loss	( 1,682)	-
			(Continued)

Code		Fiscal year 2025	Fiscal year 2024
A32150	Accounts payable	$ 94,417	$ 11,200
A32180	Other payables	( 4,901 )	33,128
A32200	Provision of liability	( 17,687 )	( 12,775 )
A32230	Other current liabilities	619	87
A32990	Refund liability	10,722	7,400
A32990	Other noncurrent liabilities	( 6,671 )	( 2,425 )
A33000	Cash inflow generated from operations	227,752	387,273
A33300	Interest paid	( 13,066 )	( 13,540 )
A33500	Income taxes (paid) refund	( 79,583 )	18,251
AAAA	Net cash inflow from operating activities	135,103	391,984
CASH FLOWS FROM INVESTING ACTIVITIES
B00010	Financial assets at fair value through other comprehensive income	( 169,170 )	( 95,048 )
B00040	Acquisitions of financial assets at amortized cost	-	( 100,927 )
B00050	Proceeds from disposal of financial assets at amortized cost	32,851	227,650
B02700	Acquisition of property, plant and equipment	( 47,782 )	( 63,068 )
B02800	Proceeds from sales of property, plant and equipment	-	2,203
B03700	Increase of refundable deposit	( 369 )	-
B03800	Decrease in refundable deposits	341	3,459
B04500	Acquisition of intangible assets	( 1,490 )	( 10,918 )
B07500	Interest received	23,721	30,294
B07600	Dividends received	5,133	3,142
BBBB	Net cash flows from (used in) investing activities	( 156,765 )	( 3,213 )
CASH FLOWS FROM FINANCING ACTIVITIES
C00200	Decrease in short-term loans	-	( 120,000 )
C03000	Increase in guarantee deposits received	-	9
C04020	Payments of lease liabilities	( 21,422 )	( 19,405 )
C04500	Cash dividends paid	( 157,964 )	( 124,513 )
CCCC	Cash inflow (outflow) from financing activities	( 179,386 )	( 263,909 )
			(Continued)

Code		Fiscal year 2025	Fiscal year 2024
DDDD	Effect of exchanges rate change rates on cash	($ 19,292)	$ 10,956
EEEE	Net increase (decrease) in cash and cash equivalents	( 220,340)	135,818
E00100	Cash and cash equivalents at beginning of period	1,527,225	1,391,407
E00200	Cash and cash equivalents at end of period	$1,306,885	$1,527,225

The accompanying notes are an integral part of the consolidated financial statements.

AVer Information Inc. and subsidiaries
Notes to Consolidated Financial Statements
January 1 to December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars, unless otherwise specified)

GENERAL

AVer Information Inc. (hereinafter referred to as “AVer” or “the Company”) was incorporated on January, 2008, with the business that mainly engages in selling, manufacturing, researching, and developing of related products including computer system equipment and presentation and video conferencing systems.

AVer’s shares were listed on the Taiwan Stock Exchange (TWSE) on August 25, 2011.

The consolidated financial statements were expressed in the functional currency of the Company to be New Taiwan Dollars (NT$).

APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on March 4, 2026.

APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

(1) The Company applied for the first time International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”), which were endorsed and issued by the Financial Supervisory Commission of the Republic of China (hereinafter referred to as the “FSC”) and became effective.

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Company’s accounting policies.

(2) The IFRSs Accounting Standards as endorsed by the FSC, applicable starting from 2026.

Newly issued/revised/amended standards and i n t e r p r e t a t i o n s	Effective Date Announced by I A S B
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

The Company has assessed that the adoption of the amendments to IFRSs endorsed and issued into effect by the FSC will not have a material impact on the Company's accounting policies.

(3) The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC.

Newly issued/revised/amended standards and i n t e r p r e t a t i o n s	Effective Date Announced by IASB (Note)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to

apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Company is continuously assessing the possible impacts that the application of other standards and interpretations will have on the Company's financial position and financial performance and will disclose the relevant impacts when the assessment is completed.

In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Company has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the Company's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of compliance

The consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by

Securities Issuers and IFRSs Accounting Standards as endorsed and issued into effect by the FSC.

(2) Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are mentioned at fair value.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the relevant inputs are observable and based on the significance thereof, are described as follows:

Level 1 inputs: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 inputs: inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3 inputs: unobservable inputs for an asset or liability.

(3) Classification of current and noncurrent assets and liabilities

Current assets include:

Assets held primarily for the purpose of trading
Assets expected to be realized within 12 months after the reporting period; and
Cash and cash equivalents (unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period).

Current liabilities include:

Liabilities held primarily for the purpose of trading
Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and

Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current assets or current liabilities are classified as noncurrent assets or noncurrent liabilities respectively.

(4) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intercompany transactions, balances, income, and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company.

See Note 11 and Table 4 for detailed information, percentages of ownership, and main businesses on subsidiaries.

(5) Foreign currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from the settlement of translation are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslated of non-monetary items in respect of which gains and losses are recognized directly in other

comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction, i.e., not retranslated.

For the purpose of presenting the consolidated financial statements, the functional currencies of assets and liabilities of its foreign operations (including subsidiaries that operate in countries or use currencies different from the Company) are translated into the presentation currency, the New Taiwan dollars, at the exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

If the Company fully disposes of the equity of the foreign operations, or partially disposes of them with loss of control, all accumulated exchange differences related to the foreign operations will be reclassified to profit or loss.

(6) Inventories

Inventories consist of raw materials, finished goods, and work in progress. Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar to related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

(7) Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation.

Except for freehold land which is not depreciated, the depreciation of property, plant, and equipment is recognized using the straight-line method. Each significant part is depreciated separately within its useful life. The Company at least reviews the estimated useful lives, residual values, and

depreciation methods at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

(8) Intangible assets

Computer software costs are initially measured at cost. Subsequent to initial recognition, computer software costs are measured at cost less accumulated amortization and accumulated impairments. Intangible assets are recognized using the straight-line method for depreciation within the useful life. The Company at least reviews the estimated useful lives, residual values, and depreciation methods at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

Computer software is amortized according to the useful life of 2 years.

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss of the current period.

(9) Impairment of property, plant and equipment, right-of-use asset and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset of cash-generating unit is

estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss (less amortization or depreciation) been recognized on the asset of cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

(10) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss (FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

(1) Measurement categories

Financial assets of the Company are classified into the following categories: financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

A. Financial asset at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or designated as at

FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVOCI criteria. Financial assets at FVTPL are subsequently measured at fair value, and any dividends, interest earned and remeasurement gains or losses on such financial assets are recognized in other gains or losses.

B. Financial assets at amortized cost

If investment assets of the Company meet the following two conditions, the investment assets are categorized as financial assets at amortized cost:

a. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets (including cash and cash equivalents, accounts receivable and refundable deposits) are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These

cash equivalents are held for the purpose of meeting short-term cash commitments.

C. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company's right to receive the dividends is established, unless the Company's rights clearly represent a recovery of part of the cost of the investment.

(2) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable) at the end of each reporting period.

The Company always recognizes lifetime expected credit losses (ECL) for accounts receivable. For all other financial instruments, the Company recognizes lifetime ECLs. when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. The 12-month ECLs represent the portion of ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. In contrast, lifetime ECLs represent the expected credit losses that will result

from all possible default events over the expected life of a financial instrument.

For internal credit risk management purposes, the Company determines the Internal or external information shows that the debtor is unlikely to pay its creditors that a financial asset is in default.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

(3) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Equity instruments

Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Financial liabilities

(1) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method, except the Derivative financial instruments.

(2) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized consideration paid is recognized in profit or loss.

Derivative financial instruments

Derivative instruments that the Company enters into are foreign exchange forward contracts in order to manage its exposure to foreign exchange rate risks.

Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss directly. When the fair value of derivative financial instruments is positive, the derivative is recognized as a financial asset; when the fair value of derivative financial instruments is negative, the derivative is recognized as a financial liability.

(11) Provision of liability

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. A provision is measured using the cash flows estimated to settle the present obligation.

Warranty

Warranty obligations guarantee that the product complies with agreed-upon specifications are measured at the best estimate of expenses by the management to settle the Company's obligation and recognized when relevant products are recognized.

(12) Revenue recognition

The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods

Revenue from the sale of goods comes from sales of computer system equipment, presentation, and video conferencing systems. When the goods are delivered to the customer's specific location because it is the time when the customer has full discretion over the price to sell the goods, right-of-use, and has the primary responsibility for sales to future customers and bears the risks of obsolescence. The Company recognizes the income and trade receivables concurrently.

The Company does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

Revenue from the rendering of services

Revenue from the rendering of services comes from the repair service and revenue are recognized when services are provided.

(13) Leases

At the inception of a contract, the Company assesses whether the contract is (or contains) a lease.

The Company as lessor

Leases are classified as finance leases whenever the terms of a lase transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments from operating leases, less any lease incentives, are recognized as income on a straight-line basis over the terms of the relevant leases.

The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for low-value asset leases and short-term leases accounted for applying for a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease term.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities, lease payments made at or before the commencement date less any lease incentives received, plus

any initial direct costs incurred, and an estimate of costs needed to restore the underlying assets. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease term.

Lease liabilities are initially measured at the present value of the lease payments, including fixed payments and variable lease payments depending on the index or rate. If the interest rate implicit in a lease can be readily determined, the lease payments are discounted using such interest rate. If the interest rate implicit in a lease cannot be readily determined, the Company uses the lessee's incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

(14) Employee benefits

Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

(15) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current income tax

Income tax payable (recoverable) of the Company is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Law in the Republic of China, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

Deferred income tax

Deferred income tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit in the financial statements of each entity.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, or purchases of machinery and equipment, and expenses of research and developments, to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the

foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previous unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized as an increase of adjustment to the carrying amount, to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred taxes

Current and deferred taxes are recognized in profit or loss.

CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, management is required to make judgments, estimations, and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and

other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Company considers the implications when making its critical accounting estimates in cash flow projections growth rate, discount rate, profitability, etc. The management will review the estimates and underlying assumptions on an ongoing basis.

Key Sources of Estimation Uncertainty

Sales discounts (allowances) estimation

The Company has distributors in the Americas as its main customers. In order to promote sales and expand the market, Aver Information Inc. (USA) and its main distributors have entered multiple contracts on sales discounts (allowances). Since calculation methods applied to respective contracts vary by product or sales achievement; bases of the calculations also involve the risks of estimation uncertainty of expected sales amount.

6. CASH AND CASH EQUIVALENTS

	December 31, 2025	December 31, 2024
Cash on hand and petty cash	$ 1,115	$ 1,002
Checking accounts and demand deposits	1,017,190	1,295,083
Cash equivalents
Time deposits with original maturities of less than 3 months	288,580	231,140
	$1,306,885	$1,527,225

Ranges of the market interest rate of bank deposits at the end of the reporting period are as follows:

	December 31, 2025	December 31, 2024
Bank deposits	0.005%~3.65%	0.001%~4.25%
Time deposits	1.58%~4.00%	1.70%~4.80%

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31, 2025	December 31, 2024
Investments in equity instruments—non current
Domestic Investment
Publicly traded stocks	$ 1,056,471	$ 1,132,123
Non – publicly traded	20,000	20,000
	$ 1,076,471	$ 1,152,123

The company invested in the common shares of AVerMedia Technologies, Inc. (AVerMedia) and Taiwan Bio-Manufacturing Corporation for medium- to long-term strategic purposes and expects to generate profits through long-term investments. Management of the company believes that recognizing short-term fair value fluctuations of such investments in profit or loss would be inconsistent with the aforementioned long-term investment strategy. Therefore, these investments are designated to be measured at FVTOCI.

FINANCIAL ASSETS AT AMORTIZED COST

	December 31, 2025	December 31, 2024
Current
Domestic instruments
Time deposits with original maturities of more than 3 months	$ -	$ 28,916

Ranges of the market interest rate of time deposits at the end of the reporting period are as follows:

	December 31, 2025	December 31, 2024
Time deposits	-	0.001%~1.60%

ACCOUNTS RECEIVABLE

	December 31,2025	December 31,2024
At amortized cost
Gross carrying amount	$ 381,773	$ 309,849
Less: Loss allowance	( 6,030)	( 5,700)
	$ 375,743	$ 304,149

The Company provides $30\sim 60$ days for the average credit period of sales of goods within which interests on the accounts receivable are waived. In order to minimize credit risks, the management of the Company has delegated a team responsible for determining credit limits, credit approvals, and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews and recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Company's credit risk was significantly reduced.

The Company measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The lifetime expected credit losses on accounts receivable are estimated using a provision matrix by reference to the past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate. As the Company's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on the past due status is not further distinguished according to the Company's different customer base. The Company estimates expected credit losses based on the number of days for which receivables are past due.

The Company has purchased credit insurance for the accounts receivable of major customers. The insurance-to-value ratio is $85\% \sim 90\%$ of the approved limit of the buyer's insured amount. When the expected credit loss rate is set based on the number of overdue days of the accounts receivable, the recoverable amount of the insurance has been considered.

The Company writes off accounts receivable when there is information indicating that the debtor is experiencing severe financial difficulty, and there is no realistic prospect of recovery of the receivable. For accounts receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables with are due. When recoveries are made, they are recognized in profit or loss.

Loss allowances of accounts receivables of the Company based on the provision matrix are as follows:

December 31, 2025

	Not past due	Past due 1~30 Days	Past due 31~90 Days	Past due 91~210 Days	Past due over 211 days	T o t a l
Gross carrying amount	$ 348,506	$ 24,721	$ 5,685	$ -	$ 2,861	$ 381,773
Loss allowance (lifetime expected credit loss)	( 1,187 )	( 1,054 )	( 928 )	-	( 2,861 )	( 6,030 )
Amortized cost	$ 347,319	$ 23,667	$ 4,757	$ -	$ -	$ 375,743

December 31, 2024

	Not past due	Past due 1~30 Days	Past due 31~90 Days	Past due 91~210 Days	Past due over 211 days	T o t a l
Gross carrying amount	$ 238,349	$ 64,021	$ 4,618	$ -	$ 2,861	$ 309,849
Loss allowance (lifetime expected credit loss)	( 266 )	( 706 )	( 1,867 )	-	( 2,861 )	( 5,700 )
Amortized cost	$ 238,083	$ 63,315	$ 2,751	$ -	$ -	$ 304,149

The movements of the loss allowance of accounts receivable are as follows:

	Fiscal year 2025	Fiscal year 2024
Balance at January 1	$ 5,700	$ 3,395
Add : Impairment losses	352	2,305
Less : Reversal	( 22 )	-
Balance at December 31	$ 6,030	$ 5,700

INVENTORIES

	December 31, 2025	December 31, 2024
Finished goods	$ 173,180	$ 183,472
Work in progress	59,767	28,989
Raw materials	147,428	113,074
	$ 380,375	$ 325,535

The nature of the cost of goods sold is as follows:

	Fiscal year 2025	Fiscal year 2024
Cost of inventories sold	$1,055,750	$1,039,550
Provision (reversal) of inventory valuation and obsolescence loss	(3,116)	5,693
	$1,052,634	$1,045,243

The reversal of inventory valuation was included in the cost of revenue mainly from the clearance of aged stock

11. SUBSIDIARIES

(1) The Company and Subsidiaries both are included in the consolidated financial statements

Main content of the consolidated financial statements:

Investor	In v e s t e e	Nature of Activities	% of Ownership
			2025 December 31	2024 December 31
The Company	AVer Information Inc. (USA)	Sales of computer system equipment, presentation and video conferencing systems	100%	100%
	AVer Information Europe B.V.	Sales of computer system equipment, presentation and video conferencing systems	100%	100%
	AVer Information Inc. (Japan)	Sales of computer system equipment, presentation and video conferencing systems	100%	100%
	AVer Information (Vietnam) Co., Ltd.	Sales of computer system equipment, presentation and video conferencing systems	100%	100%
	Yuan Chen Investment Co., Ltd.	Investment company	100%	100%

12. PROPERTY, PLANT AND EQUIPMENT

	L a n d	Houses and buildings	Machinery equipment	Transportation equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress a n d Equipment pending acceptance	T o t a l
Cost
BALANCE, January 1, 2025	$ 373,218	$ 904,142	$ 191,770	$ 13,526	$ 78,455	$ 18,406	$ 94,756	$ 55,687	$1,729,960
Addition	-	16,254	4,877	1,620	12,523	432	4,733	6,775	47,214
Disposal	-	-	-	-	( 640)	-	( 245)	-	( 885)
Reclassified as other noncurrent assets	-	-	2,240	-	351	-	3,124	( 5,617)	98
Net exchange difference	-	-	( 169)	-	( 1,491)	( 529)	-	-	( 2,189)
BALANCE, DECEMBER 31, 2025	$ 373,218	$ 920,396	$ 198,718	$ 15,146	$ 89,198	$ 18,309	$ 102,368	$ 56,845	$1,774,198

(Continued)

	L a n d	Houses and buildings	Machinery equipment	Transportation equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress a n d Equipment pending acceptance	T o t a l
Accumulated depreciation
BALANCE, January 1, 2025	$ -	$ 287,219	$ 136,601	$ 8,597	$ 62,667	$ 17,432	$ 72,373	$ -	$ 584,889
Depreciation expense	-	27,115	31,303	1,339	9,537	688	20,413	-	90,395
Disposal	-	-	-	-	(536)	-	(245)	-	(781)
Net exchange difference	-	-	(91)	-	(1,211)	(539)	-	-	(1,841)
BALANCE, DECEMBER 31, 2025	$ -	$ 314,334	$ 167,813	$ 9,936	$ 70,457	$ 17,581	$ 92,541	$ -	$ 672,662
NET VALUE, December 31, 2025	$ 373,218	$ 606,062	$ 30,905	$ 5,210	$ 18,741	$ 728	$ 9,827	$ 56,845	$1,101,536
Cost
BALANCE, January 1, 2024	$ 373,218	$ 900,305	$ 190,003	$ 11,486	$ 79,774	$ 17,455	$ 88,897	$ 20,748	$1,681,886
Addition	-	3,527	3,526	4,510	5,898	-	10,530	33,873	61,864
Disposal	-	-	(1,937)	(2,583)	(9,790)	-	(4,729)	-	(19,039)
Reclassified as other current and noncurrent assets	-	310	-	-	-	-	58	1,066	1,434
Net exchange difference	-	-	178	113	2,573	951	-	-	3,815
BALANCE, DECEMBER 31, 2024	$ 373,218	$ 904,142	$ 191,770	$ 13,526	$ 78,455	$ 18,406	$ 94,756	$ 55,687	$1,729,960
Accumulated depreciation
BALANCE, January 1, 2024	$ -	$ 259,572	$ 102,446	$ 8,081	$ 59,560	$ 15,825	$ 44,074	$ -	$ 489,558
Depreciation expense	-	27,647	35,952	1,059	10,032	652	33,028	-	108,370
Disposal	-	-	(1,937)	(560)	(9,042)	-	(4,729)	-	(16,268)
Net exchange difference	-	-	140	17	2,117	955	-	-	3,229
BALANCE, DECEMBER 31, 2024	$ -	$ 287,219	$ 136,601	$ 8,597	$ 62,667	$ 17,432	$ 72,373	$ -	$ 584,889
NET VALUE, December 31, 2024	$ 373,218	$ 616,923	$ 55,169	$ 4,929	$ 15,788	$ 974	$ 22,383	$ 55,687	$1,145,071

For the year ended December 31 of 2025 and 2024, no indication of an impairment loss of the Company's property, plant, and equipment was present, and therefore, no impairment assessment was performed.

The above items of property, plant, and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Plant main buildings 50 years

Electromechanical power and engineering systems 5-10 years

Machinery equipment 3-10 years

Transportation equipment 5 years

Office equipment 3-10 years

Leasehold improvements 3-15 years

Other equipment 2-3 years

13. LEASE ARRANGEMENTS

(1) Right-of-use assets

	December 31, 2025	December 31, 2024
Right-of-use assets carrying amount
Buildings	$ 62,849	$ 74,915
	Fiscal year 2025	Fiscal year 2024
Additions of right-of-use assets	$ 14,977	$ 81,908
Depreciation of right-of-use assets
Buildings	$ 24,101	$ 23,650

Except for additions to leases and depreciation recognized, there were no material subleases or impairment of the Company's right-of-use assets for the years ended December 31, 2025 and 2024.

(2) Lease liabilities

	December 31, 2025	December 31, 2024
Lease liability carrying amount
Current	$ 22,482	$ 16,592
Noncurrent	$ 49,289	$ 64,682

Range of discount rates for lease liabilities was as follows:

	December 31, 2025	December 31, 2024
Buildings	0.20%~7.80%	0.001%~7.80%

(3) Material terms of right-of-use assets

The Company leases certain buildings for the use as offices, plants and dormitories with lease terms of 1~5 years. The lease of buildings located in France and the Netherlands agrees to adjust the lease payment according to the local consumer price index each year. The Company has no bargain purchase option to acquire the leasehold offices, plants, and dormitories at the end of the lease terms.

(4) Other lease information

	Fiscal year 2025	Fiscal year 2024
Total cash outflow for leases	($ 26,889)	($ 24,294)

SHORT-TERM LOANS

	December 31, 2025	December 31, 2024
Unsecured loans	$ 400,000	$ 400,000
Annual interest rate (%)	1.88%~1.89%	1.86%~1.92%
Maturity date	2026/1/16	2025/1/20

OTHER PAYABLES

	December 31, 2025	December 31, 2024
Salary and bonus payable	$ 172,859	$ 168,153
Vacation payable	50,675	48,889
Payable for license fees	26,900	25,794
Payable for employees and directors' compensation	17,388	34,402
Others	72,895	68,987
	$ 340,717	$ 346,225

PROVISION OF LIABILITY

	December 31, 2025	December 31, 2024
Current – warranty (classified under other current liabilities)	$ 10,229	$ 8,113
Noncurrent – warranty	49,835	44,824
	$ 60,064	$ 52,937

The provision of liability is the present value of the best estimate of the future economic benefit outflow resulted from the warranty obligations by the management of the Company as agreed in the product sales contract. The estimate is based on historical warranty experience.

RETIREMENT BENEFIT PLANS

The Company adopted a pension plan under the Labor Pension Act (LPA) which is a government-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

The overseas subsidiaries of the Company are required to contribute at certain percentages of payroll costs to the retirement benefit scheme in accordance with local laws and regulations and recognized the contributions as pension expenses.

18. EQUITY

(1) Capital - Common Stock

	December 31, 2025	December 31, 2024
Number of shares authorized (in thousands of shares)	150,000	150,000
Authorized shares	$1,500,000	$1,500,000
Number of shares issued (in thousands of shares)	92,920	92,920
Shares issued	$929,200	$929,200

A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends.

(2) Capital surplus

	December 31, 2025	December 31, 2024
Additional paid-in capital	$734,624	$734,624
Treasury share transactions	496	496
	$735,120	$735,120

Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital which is limited to a certain percentage of the Company's capital surplus and to once a year.

(3) Retained earnings and dividends policy

The Company's Articles of Incorporation state that, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of the previous year, setting aside a legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations; and then any remaining profit together with any undistributed retained earnings shall be used by the Company's board of directors as the basis for proposing a distribution plan, which shall be resolved

in the shareholders' meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of employees' compensation and remuneration of directors stated by the Company's Articles of Incorporation, please refer to "Employees' compensation and remuneration of directors" in Note 20 (7).

In consideration of the Company's long-term financial planning and meeting the shareholders' needs of cash inflow, cash dividends distributed to shareholders each year shall not be lower than 10% of the total dividends distributed in the current year in accordance with the Company's Articles of Incorporation.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeds 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2024 and 2023 had been approved in the meetings of the shareholders of the Company held on June 11, 2025 and June 12, 2024 respectively. The appropriations and dividends per share were as follows:

	Appropriations of E a r n i n g s		Dividends Per Share (NT$)
	Fiscal year 2024	Fiscal year 2023	Fiscal year 2024	Fiscal year 2023
Appropriated as legal reserve	$ 18,950	$ 24,996
Appropriations (Reversal) in respect of special reserve	( 266,115)	( 289,515)
Cash dividends	157,964	124,513	$ 1.70	$ 1.34

The appropriation of earnings for 2025 that had been proposed by the Company's Board of Directors on March 4, 2026 was as follows:

The appropriation of earnings for 2025 will be resolved in the shareholders' meeting to be held on June 9, 2026.

19. REVENUE

	Fiscal year 2025	Fiscal year 2024
Revenue from contracts with customers
sale of goods	$ 2,508,528	$ 2,545,011
services and other	21,844	64,992
	$ 2,530,372	$ 2,610,003

Disaggregation of Revenue from contracts with customers – Type of goods

	Fiscal year 2025	Fiscal year 2024
Video conferencing systems products	$ 2,062,112	$ 1,954,556
Integrated education products	413,700	614,288
Others	54,560	41,159
	$ 2,530,372	$ 2,610,003

20. ADDITIONAL INFORMATION OF NET INCOME

(1) Interest income

	Fiscal year 2025	Fiscal year 2024
Bank deposits	$ 23,665	$ 30,132
Others	5	3
	$ 23,670	$ 30,135

(2) Other income

	Fiscal year 2025	Fiscal year 2024
Rental income	$ 480	$ 680
Dividends received	5,133	3,142
Others	5,731	10,234
	$ 11,344	$ 14,056

(3) Other gains and losses

	Fiscal year 2025	Fiscal year 2024
Gains(losses) on Financial assets at FVTPL	$ 4,972	$ 2,904
Net foreign exchange gains (losses)	( 9,496 )	54,713
Gains(losses) on disposal and write-off of property, plant, and equipment	( 104 )	( 568 )
	($ 4,628)	$ 57,049

(4) Finance costs

	Fiscal year 2025	Fiscal year 2024
Interest on bank loans	$ 7,617	$ 8,219
Interest on lease liabilities	5,467	4,889
Other interest expenses	86	-
	$ 13,170	$ 13,108

(5) Depreciation and amortization

	Fiscal year 2025	Fiscal year 2024
Property, plant, and equipment	$ 90,395	$ 108,370
Right-of-use assets	24,101	23,650
Intangible assets	8,365	11,789
	$ 122,861	$ 143,809
An analysis of depreciation by function
Cost of revenue	$ 47,712	$ 64,647
Operating expenses	66,784	67,373
	$ 114,496	$ 132,020
An analysis of amortization by function
Cost of revenue	$ 143	$ 3,426
Marketing	94	96
General and administrative	2,638	4,602
Research and development	5,490	3,665
	$ 8,365	$ 11,789

(6) Employee benefits expense

	Fiscal year 2025	Fiscal year 2024
Post-employment benefits
Defined contribution plans	$ 31,865	$ 31,469
Short-term benefits
Salary expense	937,457	943,981
Insurance expense	98,766	92,797
Others	24,735	23,389
Total employee benefits expense	$1,092,823	$1,091,636
An analysis of employee benefits expense by function
Cost of revenue	$ 131,295	$ 129,488
Operating expenses	961,528	962,148
	$1,092,823	$1,091,636

(7) Employees' compensation and remuneration of directors

In compliance with the Articles of Incorporation, the Company accrued employees' compensation and remuneration of directors at the rate of $5\% \sim 20\%$ and no more than $2\%$ , respectively, of net profit before income tax, employees' compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the Company has approved the amendment to its Articles of Incorporation at the 2025 shareholders' meeting, stipulating that at least $1\%$ of the current year's net profit before income tax, before deducting employees' and directors' compensation, shall be allocated as compensation to basic-level employees. For the fiscal years of 2025 and 2024, the accrued employees' compensation and the remuneration of directors approved by the Board of Directors were as follows:

Accrual rate

	Fiscal year 2025	Fiscal year 2024
Compensation of employees	10%	10%
Remuneration of directors	1.99%	1.99%

Amount (NT$)

	Fiscal year 2025	Fiscal year 2024
Compensation of employees
—Cash	$ 14,502	$ 28,692
Remuneration of directors	2,886	5,710
	$ 17,388	$ 34,402
Recognized amount in consolidated financial statements	$ 17,388	$ 34,402

If there is a change in the amounts after the annual consolidated financial statements were authorized for issue, the differences are recorded as a change in the accounting estimate.

There were no difference between the employees' compensation and directors' remuneration approved for 2024 and 2023 and the amounts reported as expenses in 2024 and 2023.

Information on the employees' compensation and remuneration of directors approved by the Company's Board of Directors is available at the "Market Observation Post System" website of the Taiwan Stock Exchange.

INCOME TAX

(1) Income tax recognized in profit or loss

Major components of income tax expense as follows:

	Fiscal year 2025	Fiscal year 2024
Current income tax
In respect of the current year	$ 14,795	$ 42,117
Income tax on unappropriated earnings	13,935	18,064
Adjustments in respect of prior years	-	( 145)
	28,730	60,036
Deferred tax
In respect of the current year	( 5,546)	2,340
Income tax expenses recognized in profit or loss	$ 23,184	$ 62,376

A reconciliation of accounting loss and income tax expenses were as follows:

	Fiscal year 2025	Fiscal year 2024
Income before income tax	$ 128,425	$ 251,879
Income tax expense calculated at the statutory rate (20%) of the parent company	$ 25,685	$ 50,376
Non-deductible expenses in determining taxable income	171	361
Income tax on unappropriated earnings	13,935	18,064
Tax-exempt income and other	( 1,026)	( 628)
Unrecognized loss deduction and deductible temporary differences	( 12,150)	18,962
Investment tax credit in current year	( 4,066)	( 23,901)
Adjustments of prior years' income tax expenses added to current year	-	( 145)
Tax effect of different applicable tax rates for individual consolidated entities	635	( 713)
Income tax expenses recognized in profit or loss	$ 23,184	$ 62,376

The applicable tax rate of the Company's subsidiary in the U. S. region was 35% for both 2025 and 2024. For other jurisdictions, income taxes are calculated based on the applicable tax rates in the respective jurisdictions.

(2) Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

Fiscal year 2025

	Opening balance	Recognized in profit or loss	Exchange difference	Closing balance
Deferred tax assets
Temporary differences
Property, plant, and equipment	$ 1,234	($ 750)	($ 58)	$ 426
Deferred income	2,425	( 1,256)	( 68)	1,101
Refund liability	18,116	3,445	( 720)	20,841
Bonus payable	1,121	156	( 47)	1,230
Provision of liability	10,537	1,435	( 1)	11,971
Inventory valuation losses	10,635	408	( 219)	10,824
Vacation pay payable	10,047	( 124)	( 198)	9,725
Unrealized gross profit of sales between affiliated companies	1,542	( 272)	-	1,270
Capital lease liabilities	19,583	( 4,138)	( 843)	14,602
Others	4,638	( 388)	( 119)	4,131
	79,878	( 1,484)	( 2,273)	76,121
Loss deduction	6,052	2,322	( 348)	8,026
	$ 85,930	$ 838	($ 2,621)	$ 84,147
Deferred tax liabilities
Temporary differences
Deferred state tax	$ 4,800	($ 589)	($ 203)	$ 4,008
Right-of-use assets	19,583	( 4,138)	( 843)	14,602
Others	4	19	-	23
	$ 24,387	($ 4,708)	($ 1,046)	$ 18,633

Fiscal year 2024

	Opening balance	Recognized in profit or loss	Exchange difference	Closing balance
Deferred tax assets
Temporary differences
Property, plant and equipment	$ 1,378	($ 232)	$ 88	$ 1,234
Deferred income	2,521	( 213)	117	2,425
Refund liability	14,343	2,745	1,028	18,116
Bonus payable	1,904	( 892)	109	1,121
Provision of liability	11,430	( 893)	-	10,537
Vacation pay payable	9,791	537	307	10,635
Inventory valuation losses	7,479	2,429	139	10,047
Unrealized gross profit of sales between affiliated companies	1,027	515	-	1,542
Capital lease liabilities	927	18,212	444	19,583
Others	11,277	( 6,789)	150	4,638
	62,077	15,419	2,382	79,878
Loss deduction	5,362	879	( 189)	6,052
	$ 67,439	$ 16,298	$ 2,193	$ 85,930

(Continued)

	Opening balance	Recognized in profit or loss	Exchange difference	Closing balance
Deferred tax liabilities
Temporary differences
Deferred state tax	$ 4,087	$ 428	$ 285	$ 4,800
Right-of-use assets	927	18,211	445	19,583
Others	4	-	-	4
	$ 5,018	$ 18,639	$ 730	$ 24,387

(3) Income tax assessments

The Company's tax returns through 2023 have been assessed by the tax authorities.

EARNINGS PER SHARE

The net profit and weighted average number of ordinary shares outstanding in the computation of earnings per share from continuing operations were as follows:

Net profit for the year

	Fiscal year 2025	Fiscal year 2024
Net profits used in the computation of basic earnings and diluted earnings per share	$ 105,241	$ 189,503
Number of shares	Fiscal year 2025	Unit: in Thousands
Fiscal year 2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	92,920	92,920
Effect of potential dilutive ordinary shares ;
Compensation of employees	544	699
The weighted average number of ordinary shares used in the computation of diluted earnings per share	93,464	93,619

If the Company offered to settle the employees' compensation in cash or shares, the Company assumed that the entire amount of the compensation will be settled in shares, and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of

diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

23. CAPITAL RISK MANAGEMENT

The Company manages its capital to ensure that all entities of the Company will be able to operate under the premises of going concerns and growth while maximizing the return to shareholders through the optimization of the debt and equity balance.

The Company's capital structure is composed of the net debt (i.e., total liabilities less cash and cash equivalents) of the Company and owner equity (i.e., capital, capital surplus, retained earnings, and other equity items) of the Company.

The Company has no other external capital requirements that need to be complied with.

24. FINANCIAL INSTRUMENTS

(1) Fair value of financial instruments not measured at fair value

The management of the Company considers that the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values or their fair values cannot be reliably measured.

(2) Fair value of financial instruments measured at fair value on a recurring basis

Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments
Publicly traded stocks	$1,056,471	$ -	$ -	$1,056,471
Non-publicly traded	-	-	20,000	20,000
	$1,056,471	$ -	$ 20,000	$1,076,471

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments
Publicly traded stocks	$1,132,123	$ -	$ -	$1,132,123
Non-publicly traded	-	-	20,000	20,000
	$1,132,123	$ -	$ 20,000	$1,152,123

There were no transfer between Level 1 and Level 2 in the year of 2025 and 2024.

Valuation techniques and inputs applied for Level 3 fair value measurement

The investments in domestic non-publicly traded stock are measured at fair value based on the price of cash capital increase conducted by the investee company.

(3) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Amortized cost (Note 1)	$1,708,710	$1,883,772
Financial assets at FVTOCI-Investments in equity instruments	1,076,471	1,152,123
Financial liability
Amortized cost (Note 2)	665,401	569,136

Note 1: The balances included financial liabilities measured at amortized cost, which comprise cash and cash equivalents, notes receivable and trade receivable, other receivables, and other financial assets.

Note 2: The balances included financial liabilities measured at amortized cost, which comprise short-term bank loans, trade payable and trade payable, other payable, and guarantee deposits.

(4) Financial risk management objectives and policies

The Company manages its exposure to risks relating to the operations through market risk (including exchange rate risk, interest rate risk, and other

price risks), credit risk, and liquidity risk as the objective of its financial risk management. To reduce relevant financial risk, the Company identifies, assesses, and avoids the market uncertainties, in order to reduce the potentially adverse effects on the Company's financial performance.

Before entering into significant transactions, approval process by the Audit Committee and the Board of Directors and must be carried out based on related standards and internal control procedures.

Market risk

The Company's activities are exposed primarily to the financial risks of changes in foreign currency exchange rates, interest rates, and the Company utilizes some derivative financial instruments (mainly forward foreign exchange contracts) to manage the related risks.

There has been no change to the Company's exposure to market risks or the manner in which these risks are managed and measured.

(1) Foreign currency risk

The Company uses forward foreign exchange contracts to manage the foreign currency risk of accounts receivable that are not denominated in functional currency created from export sales. The carrying amounts of the Company's foreign currency-denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 26.

Sensitivity analysis

The Company is mainly exposed to the USD, EUR and JPY.

The following table details the Company's sensitivity to a 5% increase or decrease in the New Taiwan dollars (i.e., functional currency) against relevant foreign currencies. The positive number below indicates an increase in pre-tax profit associated with the functional currency depreciating 5% against the relevant currency; the aforementioned number but of the negative value indicates a decrease in pre-tax profit associated with the functional currency strengthening 5% against the relevant currency.

	P r o f i t o r l o s s
	Fiscal year 2025	Fiscal year 2024
USD	$ 23,759	$ 32,549
EUR	11,136	15,670
JPY	7,192	6,188

(2) Interest rate risk

The carrying amounts of the Company's financial assets and financial liabilities with exposure to interest rate risk at the end of the reporting period were as follows:

	December 31, 2025	December 31, 2024
Fair value interest rate risk
- Financial assets	$ 225,720	$ 260,056
- Financial liabilities	471,771	81,274
Cash flow interest rate risk
- Financial assets	924,493	1,179,308
- Financial liabilities	-	400,000

The Company is exposed to cash flow interest rate risk because of having bank deposits and short-term loans at floating interest rates.

Sensitivity analysis

The sensitivity analysis below was determined based on the Company's exposure to interest rate risk for non-derivative instruments at the end of the reporting period.

If interest rates had been increased/decreased by 25 basis points and all other variables were held constant, the Company's pre-tax profit for the fiscal years of 2025 and 2024 would increase/decrease by NT$2,311 thousand and NT$1,948 thousand, respectively.

(3) Other price risks

The Company was exposed to price risk arising from the investments in equity securities.

Price sensitivity analysis

A sensitivity analysis is performed based on the equity price risk at the end of the reporting period.

If equity prices had been increased/decreased by 10%, the Company's comprehensive income for the fiscal years of 2025 and 2024 would increase/decrease by NT$107,647 thousand and NT$115,212 thousand, respectively, as a result of the increase/decrease in fair value of financial assets at FVTOCI.

Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company's exposure to credit risk mainly arises from cash, bank deposits, receivables of the operating activities and other financial instruments created by investment activities.

Financial credit risk

The Company controls and manages its exposure to credit risk which pertained in every financial institute. Since the Company's bank deposits are from creditworthy financial institutes, therefore, no significant credit risk was identified.

Business related credit risk

In order to reduce credit risk, the Company continuously assesses the financial position and historical transaction records of each customer through payment policies, except without requiring the counterparty to provide collateral or security. In order to reduce credit risk, the Company purchased the credit insurance for major customers on receivables. The insurance-to-value ratio is 85%~90% of the approved limit of buyer's insured amount. In addition, the Company reviews and recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. Therefore, the management of the Company concluded that the Company does not have significant credit risk.

Liquidity risk

The Company finances its operations and mitigates the effects of fluctuations in cash flows through controlling and maintaining sufficient cash. The management of the Company monitors the utilization of bank financing amounts and ensures compliance with loan covenants, in order to manage liquidity risk. The Company has sufficient circulating capital to finance the due liabilities and the risk that the Company is unable to provide cash or other financial assets to settle financial liabilities, or to fulfill relevant obligations is not identified. Therefore, bank borrowing is not a significant source of liquidity to the Company.

As of December 31, 2025 and 2024, the Company had available unutilized financing amount set out as following descriptions of the financing amounts in (2).

(1) Liquidity and interest rate risk tables

The following table details the analysis of the Company's remaining contractual maturities for its non-derivative financial liabilities with agreed-upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The table includes undiscounted cash flow based on financial liabilities (include principal and accrued interest).

December 31, 2025

| | On Demand
o r
Less than 1 t o 3 3 months to
M o n t h m o n t h s 1 y e a r 1-5 years |
| --- | --- |
| Non-derivative
financial liability | |
| Non-interest
bearing | $200,654 $122,331 $5,585 $ - |
| Lease liability | 2,028 4,877 19,830 53,957 |
| Fixed interest
instruments | 400,000 - - - - |
| | $602,682 $127,208 $25,415 $53,957 |

December 31, 2024

| | On Demand
o r
Less than 1
M o n t h | 1-3 months | 3 months-1
y e a r | 1-5 years |
| --- | --- | --- | --- | --- |
| Non-derivative
financial liability | | | | |
| Non-interest
bearing | $ 92,413 | $ 68,947 | $ 6,987 | $ - |
| Lease liability | 1,911 | 4,175 | 16,323 | 73,845 |
| Floating interest
rate liabilities | 400,000 | - | - | - |
| | $494,324 | $ 73,122 | $ 23,310 | $ 73,845 |

(2) Financing amount

	December 31, 2025	December 31, 2024
Unsecured bank financing amount
- Amount used	$ 400,000	$ 400,000
- Amount unused	600,000	600,000
	$1,000,000	$1,000,000
Secured bank financing amount
- Amount used	$ -	$ -
- Amount unused	300,000	300,000
	$ 300,000	$ 300,000

TRANSACTIONS WITH RELATED PARTIES

The Company's parent is AVerMedia Technologies, Inc., which held a 49.92% ownership interest in the Company, both directly and indirectly, as of December 31, 2025 and 2024.

Transactions, balances, income and expenses between the Company and its subsidiaries (related parties of the Company) have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Company and other related parties are disclosed as follows.

(1) Related party name and relationship with the Company

Related Party Name	Relationship with the Company
AVerMedia Technologies, Inc.	Parent company
AVerMedia Technologies (Shanghai) Inc.	Fellow subsidiary

(2) Operating income

Line Items	Related Party Category	Fiscal year 2025	Fiscal year 2024
Sales revenue	Parent company	$ 26,650	$ 26,991

Purchase and sales of goods from/to related parties follows the regular trade condition (market price); the sales terms for the related parties were 90 days after the goods were shipped.

(3) Purchases

Related Party Category	Fiscal year 2025	Fiscal year 2024
Parent Company	$ 6,272	$ 6,577

(4) Receivables from related parties

Line Items	Related Party Category/ Name	December 31, 2025	December 31, 2024
Accounts receivable	Parent company	$ 6,960	$ 7,215
Other Accounts receivables	Parent company	$ 2,532	$ 3,079
	Fellow company	22	272
		$ 2,554	$ 3,351

The outstanding trade receivables from related parties are unsecured. For the fiscal years of 2025 and 2024, no impairment loss was recognized for trade receivables from related parties.

(5) Payables to related parties

Line Items	Related Party Category/ Name	December 31, 2025	December 31, 2024
Accounts payable	Parent company	$ 1,511	$ 563
Other payables	Parent company	$ 88	$ 443
	Fellow company	194	209
		$ 282	$ 652

(6) Others

Line Items	Related Party	December 31, 2025	December 31, 2024
	Category/ Name
Other revenues	Parent company
	AVerMedia	$ 2,880	$ 2,997
	Technologies, Inc.

The outstanding trade payables from related parties are unsecured.

(7) Compensation of key management personnel

	Fiscal year 2025	Fiscal year 2024
Short-term benefits	$ 48,826	$ 53,296
Post-employment benefits	540	557
	$ 49,366	$ 53,853

The remuneration of Board of Directors and other key executives were determined by the remuneration committee based on the performance of individuals and market trends.

SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Company's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows. Significant assets and liabilities denominated in foreign currencies are as follows:

(Unit: NTD and Foreign Currency in Thousands)

December 31, 2024

	Foreign currency	Exchange rate	Carrying amount
Financial assets
Monetary items
USD	$ 19,848	31.43 (USD: NTD)	$ 623,827
EUR	6,036	36.90 (EUR: NTD)	222,711
JPY	716,299	0.20 (JPY: NTD)	143,833

	Foreign currency	Exchange rate	Carrying amount
Financial liability
Monetary items
USD	4,729	31.43 (USD: NTD)	$ 148,643

December 31, 2024

	Foreign currency	Exchange rate	Carrying amount
Financial assets
Monetary items
USD	$ 22,909	32.79 (USD: NTD)	$ 751,085
EUR	9,180	34.14 (EUR: NTD)	313,394
JPY	589,576	0.21 (JPY: NTD)	123,752
Financial liability
Monetary items
USD	3,053	32.79 (USD: NTD)	100,107

For the years ended December 31, 2025 and 2024, the net foreign exchange gains (losses) were (NT$ 9,496) thousand and net foreign exchange gains (losses) NT$ 54,713 thousand, respectively. It is impractical to disclose net foreign exchange gains or losses by each significant foreign currency due to the variety of the foreign currency.

27. SEPARATELY DISCLOSED ITEMS

(1) Information on significant transactions:

Financing provided to others : None
Endorsements/guarantees provided : None
Marketable securities held (excluding investment in subsidiaries, associates and joint ventures): Table 1 (attached)
Total purchases from or sales to related parties amounting to at least NT$100 million or more than 20% of the paid-in capital : Table 2 (attached)
Receivables from related parties amounting to at least NT$100 million or more than 20% of the paid-in capital : None

Other : Intercompany relationships and significant intercompany transactions : Table 3 (attached)

(2) Information on investees: Table 4 (attached)

(3) Information on investments in mainland China :

Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, shareholding ratio, investment gains or losses, carrying amount of the investment at the end of the reporting period, repatriation of investment gains or losses, and the limit on the amount of investment in the mainland China area : None
Any of the significant transactions with investee companies in mainland China, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses : None
SEGMENTS INFORMATION

The Company determined its operating segment to be only one education and video conference department; the department mainly engages in selling, manufacturing, researching, and developing of related products including computer system equipment and presentation and video conferencing systems. Furthermore, information of segment income (loss), segment assets, and segment liabilities are consistent with those of the Company's consolidated financial statements. Please refer to the consolidated balance sheet and consolidated statement of comprehensive income.

(1) Financial information by geographic location

The Company's revenue from external customers by location of operations and information as detailed below:

L o c a t i o n	Fiscal year 2025	Fiscal year 2024
	R e v e n u e	R e v e n u e
America	$1,094,333	$1,125,046
Asia	723,244	726,045
Europe	626,946	641,529
Others	85,849	117,383
	$2,530,372	$2,610,003

The Company's noncurrent assets by location of assets and information as detailed below:

	Fiscal year 2025	Fiscal year 2024
L o c a t i o n	A m o u n t	A m o u n t
Asia	$1,108,365	$1,152,837
America	63,110	79,207
Europe	1,823	4,273
	$1,173,298	$1,236,317

Noncurrent assets excluding deferred tax assets and financial instruments.

(2) Major customers information

Customers representing at least 10% of net revenue of the Company are detailed as follows:

	Fiscal year 2025		Fiscal year 2024
	A m o u n t	%	A m o u n t	%
Customer A	$ 242,075	10	$ 283,922	11

AVer Information Inc. and subsidiaries
Marketable securities held at the end of the reporting period.
December 31, 2025

Table 1 (attached)

Unit: unless stated otherwise
• In Thousands of New Taiwan Dollars

Held Company Name	Marketable Securities Type and Name	Relationship With the Company	Financial Statement Accounting	End date of the Reporting Period
				Unit (In Thousands)	Carrying Value	Percentage of Ownership	Fair Value
The Company	Beneficiary Certificates
AVerMedia Technologies, Inc.	Parent company of the Company	Financial assets at fair value through other comprehensive income	27,194	$1,056,471	17.29%	$1,056,471

Note : This table is the securities that the company judges and must be listed in accordance with the principle of significance.

AVer Information Inc. and subsidiaries

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF PAID-IN CAPITAL

January 1 to December 31, 2025

Table 2 (attached)

Unit: unless stated otherwise

· In Thousands of New Taiwan Dollars

Purchase (Sale)Company	Related Party	Nature of Relationship	Transaction Details				Abnormal Transaction Condition and Reason (Note 1)		Notes, Accounts Receivable (Payable)		Note
			Purchase (Sale)	Amount	Percentage to Total Purchase (Sale) (%)	Payment Term	Unit Price	Payment Term	Ending Balance	% to Total Notes, Account Receivable (Payable) (%)
The Company	AVer Information Inc. (USA)	Subsidiary	Sales	$ 527,281	(30)	90 days after the goods were shipped	$ -	-	$ 18,774	5	Note
The Company	AVer Information Europe B.V.	Subsidiary	Sales	334,802	(19)	90 days after the goods were shipped	-	-	73,400	21	Note

Note: All the amounts above have been eliminated upon consolidation.

AVer Information Inc. and subsidiaries
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
January 1 to December 31, 2025

Table 3 (attached)

Unit: unless stated otherwise
• In Thousands of New Taiwan Dollars

N o .	I n v e s t e e C o m p a n y	C o u n t e r p a r t y	R e l a t i o n s h i p (N o t e 1)	T r a n s a c t i o n D e t a i l s
				F i n a n c i a l S t a t e m e n t A c c o u n t s	A m o u n t	P a y m e n t T e r m s	% t o T o t a l R e v e n u e s o r A s s e t s
0	The Company	AVer Information Inc. (USA)	1	Sales revenue	$ 527,281	Note 2	21%
				Accounts receivable	18,774	Note 3	0%
		AVer Information Europe B.V.	1	Sales revenue	334,802	Note 2	13%
				Accounts receivable	73,400	Note 3	2%
		AVer Information Inc. (Japan)	1	Sales revenue	93,239	Note 2	4%
				Accounts receivable	31,972	Note 3	1%
		AVer Information (Vietnam) Co., Ltd.	1	Sales revenue	31,534	Note 2	1%
				Accounts receivable	13,014	Note 3	0%

Note 1: (1) from the parent company to the subsidiary.
(2) from the subsidiary to the parent company.
(3) between two subsidiaries

Note 2: Payment terms are similar to those of general customer and specified based on the local market conditions.

Note 3: 90 days after the goods were shipped.

AVer Information Inc. and subsidiaries

INFORMATION ON INVESTEES

January 1 to December 31, 2025

Table 4 (attached)

Unit: unless stated otherwise,

New Taiwan Dollars/Foreign Currencies in Thousands

Investor Company	Investee Company	Main Businesses	Original Investment Amount		Balance at the End of the Period			Investee Company Net Income (Loss) of the Period	Share of Profit (Loss)	Note
			End date of the Reporting Period	End date of the Previous Period	Shares	Percentage (%)	Carrying Amount (Note 2 and 3)
The Company	AVer Information Inc. (USA)	United States	Sales of computer system equipment, presentation and video conferencing systems	$ 217,848 (USD 6,000)	$ 217,848 (USD 6,000)	6,990,000	100	$ 284,894	$ 34,064	Subsidiary
	AVer Information Europe B.V.	Netherlands	Sales of computer system equipment, presentation and video conferencing systems	131,089 (EUR 3,000)	131,089 (EUR 3,000)	(Note 1)	100	38,134	9,454	Subsidiary
	AVer Information Inc. (Japan)	Japan	Sales of computer system equipment, presentation and video conferencing systems	24,828 (JPY 70,000)	24,828 (JPY 70,000)	1,400	100	166	5,340	Subsidiary
	AVer Information (Vietnam) Co., Ltd.	Vietnam	Sales of computer system equipment, presentation and video conferencing systems	10,710 (VND8,172,000)	10,710 (VND8,172,000)	(Note 1)	100	17,636	(1,162)	Subsidiary
	Yuan Chen Investment Co., Ltd.	Taiwan	Investment	500	500	50,000	100	441	3	Subsidiary

Note 1: Only the investment amount is displayed on the company business license with no record of shares recorded.
Note 2: Carrying amount is the net amount after unrealized sales profit is deducted.
Note 3: All the amounts above have been eliminated upon consolidation.

AI assistant

AVer Audit Report / Information 2025

52362_rns_2026-05-21_b123755d-c616-43d8-a989-f13b2191bb69.pdf

Key Audit Matters

Assessment of sales returns and allowances

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the audit of the Consolidated Financial Statements

Notice to Readers

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of compliance

Key Sources of Estimation Uncertainty

Sales discounts (allowances) estimation

6. CASH AND CASH EQUIVALENTS

11. SUBSIDIARIES

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

18. EQUITY

19. REVENUE

Disaggregation of Revenue from contracts with customers – Type of goods

20. ADDITIONAL INFORMATION OF NET INCOME

(1) Interest income

(2) Other income

(7) Employees' compensation and remuneration of directors

23. CAPITAL RISK MANAGEMENT

24. FINANCIAL INSTRUMENTS

27. SEPARATELY DISCLOSED ITEMS

AI assistant

AVer — Audit Report / Information 2025

52362_rns_2026-05-21_b123755d-c616-43d8-a989-f13b2191bb69.pdf

Key Audit Matters

Assessment of sales returns and allowances

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the audit of the Consolidated Financial Statements

Notice to Readers

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of compliance

Key Sources of Estimation Uncertainty

Sales discounts (allowances) estimation

6. CASH AND CASH EQUIVALENTS

11. SUBSIDIARIES

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

18. EQUITY

19. REVENUE

Disaggregation of Revenue from contracts with customers – Type of goods

20. ADDITIONAL INFORMATION OF NET INCOME

(1) Interest income

(2) Other income

(7) Employees' compensation and remuneration of directors

23. CAPITAL RISK MANAGEMENT

24. FINANCIAL INSTRUMENTS

27. SEPARATELY DISCLOSED ITEMS

More from AVer

AVer Audit Report / Information 2025