NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2025 15. PROVISION FOR WARRANTIES Group 2025 2024 $’000 $’000 At 1 January 914 316 Provision for warranties made, net 42 651 Provision utilised (432) (42) Currency realignment (19) (11) At 31 December 505 914 Provision for warranties relates to estimated costs for possible rectification work during the warranty period of the Group’s projects. The provision for such costs is based on estimates made from historical data associated with similar projects. Upon the expiry of the warranty period, the Group would proceed to write back any unused portion of the warranty provision. 16. SHARE CAPITAL AND TREASURY SHARES (a) Share capital Group and Company 2025 2024 No of shares No of Shares ’000 $’000 ’000 $’000 Issued and fully paid ordinary shares At 1 January 706,834 166,390 618,548 131,902 Shares issued pursuant to placement shares − − 60,000 23,209 Shares issued pursuant to Scrip Dividend Scheme 17,304 8,778 28,286 11,279 At 31 December 724,138 175,168 706,834 166,390 The holders of ordinary shares except treasury shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restriction. The ordinary shares have no par value. In 2024, 60,000,000 ordinary shares of the Company at the issue price of S$0.40 were issued following the completion of the placement, raising net proceeds of $23,209,000. The equity raised was for the acquisition of synergistic communication businesses. In 2024, the net proceeds of S$14,345,000 raised from the placement exercise had been utilised to fund the acquisition of RFC Wireless, Inc. During the year, the remaining net proceeds of S$8,864,000 raised from the placement exercise had been utilised to fund the acquisition of Chicago Communications, Inc. On 10 November 2025, the Company entered into a transaction agreement with Amazon.com, Inc. (“Amazon”) under which the Company agreed to grant 62,968,580 warrants to a wholly owned subsidiary of Amazon. Each warrant entitles the holder to subscribe for one ordinary share of the Company at an exercise price of S$0.7671, exercisable upon vesting and expiring at 5:00 p.m., Seattle Time, on 9 November 2030. The warrants vest based on qualifying payments made by Amazon and its affiliates for the purchase of the Company’s products and services, with full vesting upon cumulative qualifying payments of US$1.5 billion. ANNUAL REPORT 2025 165
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