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Note 15 - Growth Equity Fund
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Variable Interest Entity Disclosure [Text Block]

15. Growth Equity Fund

 

On  February 28, 2024, the Company and Lumens Capital Partners Ltd. (“LCP”) established A3V JV Co. (the “Venture”), with each owning an equal share of the Venture. In addition, the Company entered into a separate agreement with LCP to form the Fund. The Fund is a Cayman Islands-exempted limited partnership, aimed at investing in companies in the growth equity phase and mature cashflow generating businesses with strong growth potential. The Fund looks to invest in companies situated in enterprise software markets aligning with the professional expertise and geographical presence of both the Company and LCP.

 

The Venture wholly owns A3V GP Co., which serves as the general partner of the Fund. As a limited partner, the Company committed to contribute $50.0 million to the Fund, to be called as needed, for portfolio investments, fees, and expenses of the Fund. The Company also participates in Fund establishment costs and an annual management fee equal to 2.0% of the total commitment. Any future repayment obligations will be triggered upon the receipt by LCP of profit allocations related to the Fund.

 

In September 2025, the Company decided to discontinue its participation in the Fund. As a result, during the year ended December 31, 2025, the Company recorded a credit loss of $3.5 million, which was a non-cash investing activity, offset by a reduction of $0.8 million of accrued expenses. Both were included in general and administrative in the consolidated statements of income (loss). During the year ended December 31, 2025, the Company also recorded a $0.5 million interest loss included in other income (expense), net in the consolidated statements of income (loss).

 

As of  December 31, 2025no portion of the Company’s $50.0 million commitment has been called or was callable.

 

As of  December 31, 2025 and 2024, an estimated payable of $1.6 million and $2.4 million, respectively, were included in accrued expenses and other current liabilities in the consolidated balance sheets.