Our principal financial liabilities are comprised of borrowings, lease liabilities, accounts payable, and accrued expense. The main purpose of these financial liabilities is to finance our operations and to provide guarantees to support its operations. We also have various financial assets, including accounts receivable, and cash and short-term investments that arrive directly from its operations.

We are exposed to market risk, credit risk, and liquidity risk. The Company's management reviews risk management process of each risk and whether it follows our policies as follows.

We operate internationally and are exposed to foreign exchange risk arising from various currency exposures. Foreign exchange risk arises from future expected transactions, recognized as assets and liabilities. Periodically, the Company evaluates, manages, and reports on foreign exchange risk through the management of receivables and payables denominated in foreign currency.

The financial instruments denominated in major foreign currencies as of December 31, 2024, and 2023, and January 1, 2023 are as follows (in thousands):


	December 31, 2024				December 31, 2023				January 1, 2023
Classification	Financial assets		Financial liabilities		Financial assets		Financial liabilities		Financial assets		Financial liabilities
USD	$	99,212	$	—	$	95,837	$	—	$	87,075	$	157
CAD	13		—		18		—		—		—
EUR	1,640		1,228		1,566		1,116		—		—
GBP	3,569		1,337		1,620		780		—		6
NZD	38		—		49		—		—		—
SEK	269		71		231		59		—		—
NOK	38		—		42		—		—		—
Total	$	104,779	$	2,636	$	99,363	$	1,955	$	87,075	$	163

The Company measures foreign exchange risk as a 5% fluctuation in the exchange rate of each foreign currency, which reflects the management's assessment of the risk of exchange rate fluctuation that can reasonably occur. The impact of a

5% fluctuation in foreign currency exchange rates on the Company’s monetary assets and liabilities as of December 31, 2024, and 2023, and January 1, 2023, are as follows (in thousands):


	December 31, 2024				December 31, 2023				January 1, 2023
Classification	5% Increase		5% Decrease		5% Increase		5% Decrease		5% Increase		5% Decrease
USD	$	4,961	$	(4,961)	$	4,792	$	(4,792)	$	4,346	$	(4,346)
CAD	1		(1)		1		(1)		—		—
EUR	21		(21)		23		(23)		—		—
GBP	112		(112)		42		(42)		—		—
NZD	2		(2)		2		(2)		—		—
SEK	10		(10)		9		(9)		—		—
NOK	2		(2)		2		(2)		—		—
Total	$	5,109	$	(5,109)	$	4,871	$	(4,871)	$	4,346	$	(4,346)

We are subject to interest rate risk on our borrowings. We manage interest rate risk in the aggregate, focusing on our immediate and intermediate liquidity needs. We borrow mainly on a long-term, fixed-rate basis. The fair values of our financial instruments are analyzed at year-end to determine their sensitivity to interest rate changes.

Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. Cash and cash equivalents and short-term financial instruments are deposited to financial institutions with strong credit ratings. Accounts receivables are mainly due from payment processing companies and platform service providers, which resulted in a low level of credit risk.

We monitor rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance, compliance with the internal statement of financial position ratio targets, and, if applicable, external regulatory or legal requirements.


	December 31, 2024
	Book value		< 3 months		3-12 months		1-2years		2-5years		> 5years		Total
Accounts payable and accrued expenses	$	14,990	$	12,890	$	2,100	$	—	$	—	$	—	$	14,990
Lease liabilities (1)	4,672		266		1,025		1,215		2,500		232		5,238
Long-term borrowings with related party (1)	34,014		—		—		37,140		—		—		37,140
Total	$	53,676	$	13,156	$	3,125	$	38,355	$	2,500	$	232	$	57,368


	December 31, 2023
	Book value		< 3 months		3-12 months		1-2years		2-5years		> 5years		Total
Accounts payable and accrued expenses	$	13,293	$	1,740	$	11,553	$	—	$	—	$	—	$	13,293
Lease liabilities (1)	7,577		907		2,352		1,379		3,828		—		8,466
Current portion of borrowings with related party (1)	38,778		—		48,998		—		—		—		48,998
Total	$	59,648	$	2,647	$	62,903	$	1,379	$	3,828	$	—	$	70,757


	January 1, 2023
	Book value		< 3 months		3-12 months		1-2years		2-5years		>5years		Total
Accounts payable and accrued expenses	$	13,830	$	3,170	$	10,660	$	—	$	—	$	—	$	13,830
Loss contingency	95,250		—		95,250		—		—		—		95,250
Lease liabilities (1)	4,675		869		2,256		1,732		—		—		4,857
Long-term borrowings with related party(1)	39,454		—		—		49,852		—		—		49,852
Total	$	153,209	$	4,039	$	108,166	$	51,584	$	—	$	—	$	163,789

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, we may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The purpose, policies, and procedures of capital management have not changed.

The Company manages its capital on the basis of its net debt ratio, which is calculated by dividing the net debt by total equity. Net debt is calculated as accounts payable, accrued expenses and loss contingencies less cash and cash equivalents.