REVISION OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Changes and Error Corrections [Abstract]

Schedule of Annual Revisions

The following tables present the impact of the revisions on our annual consolidated financial statements for the year ended December 31, 2021, including the impact to the accumulated other comprehensive income (loss) and the accumulated deficit balances as of December 31, 2020. The revised unaudited interim consolidated financial statements are included in Note 17 to the consolidated financial statements.

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands USD, except share and per share amounts)

	December 31, 2021
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments*		As revised
Assets
Current assets
Cash	$	85,976	—		—		—		$	85,976
Accounts receivable, net	51,304		—		—		311		51,615
Inventories, net	15,470		—		—		—		15,470
Income taxes receivable	954		—		—		(20)		934
Prepaid expenses and other receivables	7,448		—		—		(85)		7,363
Total current assets	161,152		—		—		206		161,358
Non-current assets
Restricted cash	367		—		—		—		367
Property and equipment, net	12,240		—		—		—		12,240
Intangibles assets, net	203,474		—		—		(924)		202,550
Goodwill	381,962		—		—		1,453		383,415
Other long-term assets	407		—		—		—		407
Total assets	$	759,602	$	—	$	—	$	735	$	760,337
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	16,004	—		—		—		$	16,004
Accrued liabilities	21,311		—		—		1,042		22,353
Income taxes payable	467		—		—		—		467
Current portion of capital lease obligations	191		—		—		(191)		—
Deferred revenue	6,889		—		—		—		6,889
Current portion of long-term debt and other borrowings, net	3,326		—		—		—		3,326
Total current liabilities	48,188		—		—		851		49,039
Non-current liabilities
Deferred tax liabilities	36,722		1,435		—		(232)		37,925
Warrant liability	286		—		—		—		286
Capital lease obligations	264		—		—		(264)		—
Long-term debt and other borrowings, net	399,115		—		—		—		399,115
Other long-term liabilities	2,884		1,994		1,257		315		6,450
Total liabilities	$	487,459	$	3,429	$	1,257	$	670	$	492,815
Stockholders’ equity
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 72,027,743 shares issued and outstanding at December 31, 2021	$	7	—		—		—		$	7
Additional paid-in capital	413,646		—		—		(331)		413,315
Accumulated other comprehensive loss	(3,331)		(46)		—		(86)		(3,463)
Accumulated deficit	(138,179)		(3,383)		(1,257)		482		(142,337)
Total stockholders’ equity	272,143		(3,429)		(1,257)		65		267,522
Total liabilities and stockholders’ equity	$	759,602	$	—	$	—	$	735	$	760,337

*Certain reclassifications have been made to the 2021 consolidated balance sheet to conform to the 2022 presentation for leases.

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands USD, except share and per share amounts)

	December 31, 2021
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other Adjustments		As Revised
Revenue
Services	$	187,962	$	—	$	—	$	218	$	188,180
Products	60,255		—		—		—		60,255
Total revenue	248,217		—		—		218		248,435
Cost of revenue
Cost of services	69,867		—		—		(482)		69,385
Cost of products	52,357		—		—		(382)		51,975
Total cost of revenue (exclusive of depreciation and amortization shown separately below)	122,224		—		—		(864)		121,360
Operating expenses									—
Selling, general and administrative	91,733		—		457		113		92,303
Depreciation and amortization	50,414		—		—		(83)		50,331
Total operating expenses	142,147		—		457		30		142,634
Operating loss	(16,154)		—		(457)		1,052		(15,559)
Interest expense, including amortization of deferred financing costs, net	23,260		—		—		—		23,260
Change in fair value of warrant liability	(5,267)		—		—		—		(5,267)
Loss before income taxes	(34,147)		—		(457)		1,052		(33,552)
Income tax expense (benefit)	(9,694)		732		—		186		(8,776)
Net loss	$	(24,453)	$	(732)	$	(457)	$	866	$	(24,776)
Loss per share:
Basic	$	(1.03)	$	(0.02)	$	(0.01)	$	0.02	$	(1.04)
Diluted	$	(1.03)	$	(0.02)	$	(0.01)	$	0.02	$	(1.04)
Weighted average shares outstanding (in Number):
Basic	41,933,050		—		—		—		41,933,050
Diluted	41,933,050		—		—		—		41,933,050

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(In thousands USD)

	December 31, 2021
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other Adjustments		As Revised
Net loss	$	(24,453)	$	(732)	$	(457)	$	866	$	(24,776)
Other comprehensive income (loss):
Foreign currency translation adjustment	(1,654)		53		—		(300)		(1,901)
Comprehensive loss	$	(26,107)	$	(679)	$	(457)	$	566	$	(26,677)

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Temporary Equity and Stockholders’ Equity

(In thousands, USD, except share amounts)

	Series A Preferred Stock			Series A-1 Preferred Stock			Series B Preferred Stock			Series C Convertible Preferred Stock			Total Temporary Equity		Common Stock			Additional paid-in capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Temporary Equity
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Amount		Shares	Amount		Amount		Amount		Amount		Amount
As Reported
Balance at December 31, 2020	7,756,158	$	77,562	7,862,107	$	78,621	9,090,975	$	90,910	2,566,186	$	16,802	$	263,895	30,281,520	$	3	$	135,616	$	(1,677)	$	(113,726)	$	20,216
Derecognition of shares	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		—		—		—
Accrued dividends payable	765,609	7,656		824,076	8,241		692,543	6,925		—	—		22,822		—	—		(22,822)		—		—		(22,822)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(1,654)		—		(1,654)
Share-based compensation	—	—		—	—		—	—		—	—		—		200,426	—		(1,856)		—		—		(1,856)
Distributions to and conversions of preferred stock	(8,521,767)	(85,218)		(8,686,183)	(86,862)		(9,783,518)	(97,835)		(2,520,368)	(16,502)		(286,417)		7,120,368	1		56,502		—		—		56,503
CTAC shares recapitalized, net of equity issuance costs of $15,943	—	—		—	—		—	—		—	—		—		10,373,491	1		6,428		—		—		6,429
Conversion of KORE warrants	—	—		—	—		—	—		—	—		—		1,365,612	—		10,663		—		—		10,663
Private offering and merger financing, net of equity issuance costs of $8123	—	—		—	—		—	—		—	—		—		22,686,326	2		216,875		—		—		216,877
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999	—	—		—	—		—	—		—	—		—		—	—		12,240		—		—		12,240
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(24,453)		(24,453)
Balance at December 31, 2021	—	$	—	—	$	—	—	$	—	—	$	—	$	—	72,027,743	$	7	$	413,646	$	(3,331)	$	(138,179)	$	272,143
Adjustments
Balance, December 31, 2020	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		115		(3,835)		(3,720)
Derecognition of shares	—	—		—	—		—	—		45,818	300		300		—	—		—		—		—		—
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(247)		—		(247)
Private offering and merger financing	—	—		—	—		—	—		—	—		—		—	—		(331)		—		—		(331)
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(323)		(323)
Total Adjustments	—	—		—	—		—	—		—	—		—		—	—		$	(331)	$	(132)	$	(4,158)	$	(4,621)
As Revised
Balance at December 31, 2020	7,756,158	77,562		7,862,107	78,621		9,090,975	90,910		2,520,368	16,502		263,595		30,281,520	3		135,616		(1,562)		(117,561)		16,496
Derecognition of shares	—	—		—	—		—	—		—	—		—		—	—		—		—		—		—
Accrued dividends payable	765,609	7,656		824,076	8,241		692,543	6,925		—	—		22,822		—	—		(22,822)		—		—		(22,822)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(1,901)		—		(1,901)
Share-based compensation	—	—		—	—		—	—		—	—		—		200,426	—		(1,856)		—		—		(1,856)
Distributions to and conversions of preferred stock	(8,521,767)	(85,218)		(8,686,183)	(86,862)		(9,783,518)	(97,835)		(2,520,368)	(16,502)		(286,417)		7,120,368	1		56,502		—		—		56,503
CTAC shares recapitalized, net of equity issuance costs of $15,943	—	—		—	—		—	—		—	—		—		10,373,491	1		6,428		—		—		6,429
Conversion of KORE warrants	—	—		—	—		—	—		—	—		—		1,365,612	—		10,663		—		—		10,663
Private offering and merger financing, net of equity issuance costs of $8123	—	—		—	—		—	—		—	—		—		22,686,326	2		216,544		—		—		216,546
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999	—	—		—	—		—	—		—	—		—		—	—		12,240		—		—		12,240
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(24,776)		(24,776)
Balance at December 31, 2021	—	$	—	—	$	—	—	$	—	—	$	—	$	—	72,027,743	$	7	$	413,315	$	(3,463)	$	(142,337)	$	267,522

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands USD)

	December 31, 2021
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		As Revised
Cash flows from operating activities
Net loss	$	(24,453)	$	(732)	$	(457)	$	866	$	(24,776)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation and amortization	50,414		—		—		(83)		50,331
Amortization of deferred financing costs	2,097		—		—		—		2,097
Amortization of discount on Backstop Notes	424		—		—		—		424
Deferred income taxes	(9,871)		323				(143)		(9,691)
Non-cash foreign currency loss	344		—		—		—		344
Share-based compensation	4,564		—		—		—		4,564
Provision for doubtful accounts	322		—		—		—		322
Change in fair value of warrant liability	(5,267)		—		—		—		(5,267)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable	(11,884)		—		—		(218)		(12,102)
Inventories	(9,875)		—		—		—		(9,875)
Prepaid expenses and other receivables	(1,700)		—		—		456		(1,244)
Accounts payable and accrued liabilities	(8,371)		409		457		(914)		(8,419)
Deferred revenue	(805)		—		—		—		(805)
Income taxes payable	(697)		—		—		36		(661)
Cash used in operating activities	$	(14,758)	$	—	$	—	$	—	$	(14,758)
Cash flows used in investing activities
Additions to intangible assets	(9,247)		—		—		—		(9,247)
Additions to property and equipment	(4,172)								(4,172)
Net cash (used) in investing activities	$	(13,419)	$	—	$	—	$	—	$	(13,419)
Cash flows from financing activities
Proceeds from revolving credit facility	25,000		—		—		—		25,000
Repayment on revolving credit facility	(25,000)		—		—		—		(25,000)
Repayment of term loan	(3,161)		—		—		—		(3,161)
Repayment of other borrowings - notes payable	(173)		—		—		—		(173)
Proceeds from convertible debt	104,167		—		—		—		104,167
Proceeds from equity portion of convertible debt, net of issuance costs	15,697		—		—		—		15,697
Payment of deferred financing costs	(1,579)		—		—		—		(1,579)
Repayment of related party note	(1,538)		—		—		—		(1,538)
Proceeds from CTAC and PIPE financing, net of issuance costs	223,688		—		—		—		223,688
Settlements of preferred shares	(229,915)		—		—		—		(229,915)
Payment of capital lease obligations	(828)		—		—		—		(828)
Payment of stock option share employee withholding taxes	(2,305)		—		—		—		(2,305)
Cash provided by/(used in) financing activities	$	104,053	$	—	$	—	$	—	$	104,053
Effect of Exchange Rate Change on Cash	(226)		—		—		—		(226)

	December 31, 2021
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		As Revised
Change in Cash and Restricted Cash	75,650		—		—		—		75,650
Cash and Restricted Cash, beginning of period	10,693		—		—		—		10,693
Cash and Restricted Cash, end of period	$	86,343	$	—	$	—	$	—	$	86,343
Non-cash investing and financing activities:
Equity financing fees accrued	$	3,602	$	—	$	—	$	—	$	3,602
Common shares issued to preferred shareholders	56,502		—		—		—		56,502
Equity financing fees settled in common shares	1,863		—		—		—		1,863
Common shares issued to warrant holders	10,663		—		—		—		10,663
Common shares issued to option holders pursuant to the Cancellation Agreements	1,072		—		—		—		1,072
Sponsor shares distributed to lender under Backstop Agreement	683		—		—		—		683
Supplemental cash flow information:
Interest paid	$	19,874	$	—	$	—	$	—	$	19,874
Taxes paid (net of refunds)	957		—		—		—		957

The following tables present the impact of the revisions on the unaudited interim consolidated financial statements.

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands USD, except share amounts)

	March 31, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Assets
Current assets
Cash	$	31,914	$	—	$	—	$	—	$	31,914
Accounts receivable, net	57,073		—		—		366		57,439
Inventories, net	12,069		—		—		(280)		11,789
Income taxes receivable	1,239		—		—		(14)		1,225
Prepaid expenses and other current assets	7,660		—		—		(386)		7,274
Total current assets	$	109,955	$	—	$	—	$	(314)	$	109,641
Non-current assets
Restricted cash	370		—		—		—		370
Property and equipment, net	12,167		—		—		—		12,167
Intangibles assets, net	222,759		—		—		(903)		221,856
Goodwill	426,700		—		—		1,453		428,153
Operating lease right-of-use assets	9,050		—		—		(485)		8,565
Other long-term assets	401		—		—		—		401
Total assets	$	781,402	$	—	$	—	$	(249)	$	781,153
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	19,901	$	—	$	—	$	—	$	19,901
Accrued liabilities	11,424		—		—		252		11,676
Current portion of operating lease liabilities	2,027		—		—		(384)		1,643
Income taxes payable	959		—		—		(405)		554
Deferred revenue	7,020		—		—		—		7,020
Current portion of long-term debt and other borrowings, net	3,206		—		—		—		3,206
Total current liabilities	$	44,537	$	—	$	—	$	(537)	$	44,000
Non-current liabilities
Deferred tax liabilities	36,443		1,627		—		126		38,196
Warrant liability	259		—		—		—		259
Non-current portion of operating lease liabilities	7,430		—		—		—		7,430
Long-term debt and other borrowings, net	414,026		—		—		—		414,026
Other long-term liabilities	3,624		2,112		1,335		313		7,384
Total liabilities	$	506,319	$	3,739	$	1,335	$	(98)	$	511,295
Stockholders’ equity
Common stock	$	8	$	—	$	—	$	—	$	8
Additional paid-in capital	427,377		—		—		(331)		427,046
Accumulated other comprehensive loss	(3,515)		15		—		(86)		(3,586)
Accumulated deficit	(148,787)		(3,754)		(1,335)		266		(153,610)
Total stockholders’ equity	$	275,083	$	(3,739)	$	(1,335)	$	(151)	$	269,858
Total liabilities and stockholders’ equity	$	781,402	$	—	$	—	$	(249)	$	781,153

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands USD, except share and per share amounts) (unaudited)

	For the three months ended
	March 31, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Revenue
Services	$	47,506	$	—	$	—	$	37	$	47,543
Products	21,435		—		—		—		21,435
Total revenue	68,941		—		—		37		68,978
Cost of revenue
Cost of services	17,529		—		—		21		17,550
Cost of products	17,443		—		—		280		17,723
Total cost of revenue (exclusive of depreciation and amortization shown separately below)	34,972		—		—		301		35,273
Operating expenses
Selling, general and administrative	27,628		—		79		10		27,717
Depreciation and amortization	13,196		—		—		(21)		13,175
Total operating expenses	40,824		—		79		(11)		40,892
Operating income (loss)	(6,855)		—		(79)		(253)		(7,187)
Interest expense, including amortization of deferred financing costs, net	6,624		—		—		—		6,624
Change in fair value of warrant liability	(27)		—		—		—		(27)
Loss before income taxes	(13,452)		—		(79)		(253)		(13,784)
Income tax expense (benefit)	(2,545)		371		—		(38)		(2,212)
Net loss	$	(10,907)	$	(371)	$	(79)	$	(215)	$	(11,572)
Loss per share:
Basic	$(0.15)		$(0.01)		$0.00		$0.00		$(0.16)
Diluted	$(0.15)		$(0.01)		$0.00		$0.00		$(0.16)
Weighted average number of shares outstanding:
Basic	74,040,261		—		—		—		74,040,261
Diluted	74,040,261		—		—		—		74,040,261

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(In thousands USD) (unaudited)

	For the three months ended
	March 31, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Net loss	$	(10,907)	$	(371)	$	(79)	$	(215)	$	(11,572)
Other comprehensive loss:
Foreign currency translation adjustment	(184)		61		—		—		(123)
Comprehensive loss	$	(11,091)	$	(310)	$	(79)	$	(215)	$	(11,695)

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity

(In thousands, USD, except share amounts) (unaudited)

	Common Stock			Additional paid-in capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount		Amount		Amount		Amount		Amount
As Reported
Balance at December 31, 2021	72,027,743	$	7	$	413,646	$	(3,331)	$	(138,179)	$	272,143
Opening balance sheet adjustment (as previously reported)	—	—		(11,613)		—		299		(11,314)
Balance at December 31, 2021 - Adjusted	72,027,743	7		402,033		(3,331)		(137,880)		260,829
Foreign currency translation adjustment	—	—		—		(184)		—		(184)
Stock-based compensation	—	—		2,050		—		—		2,050
Common stock issued pursuant to acquisition	4,212,246	1		23,294		—		—		23,295
Net loss	—	—		—		—		(10,907)		(10,907)
Balance at March 31, 2022	76,239,989	$	8	$	427,377	$	(3,515)	$	(148,787)	$	275,083
Adjustments
Balance, December 31, 2021	—	—		(331)		(132)		(4,158)		(4,621)
March 31, 2022	—	—		—		—		—		—
Foreign currency translation adjustment	—	—		—		61		—		61
Net loss	—	—		—		—		(665)		(665)
Total Adjustments - March 31, 2022	—	$	—	$	(331)	$	(71)	$	(4,823)	$	(5,225)
As Revised
Balance at December 31, 2021	72,027,743	7		413,315		(3,463)		(142,337)		267,522
Opening balance sheet adjustment (as previously reported)	—	—		(11,613)		—		299		(11,314)
Balance at December 31, 2021	72,027,743	7		401,702		(3,463)		(142,038)		256,208
Foreign currency translation adjustment	—	—		—		(123)		—		(123)
Stock-based compensation	—	—		2,050		—		—		2,050
Common stock issued pursuant to acquisition	4,212,246	1		23,294		—		—		23,295
Net loss	—	—		—		—		(11,572)		(11,572)
Balance at March 31, 2022	76,239,989	$	8	$	427,046	$	(3,586)	$	(153,610)	$	269,858

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands USD) (unaudited)

	For the three months ended
	March 31, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Cash flows from operating activities
Net loss	$	(10,907)	$	(371)	$	(79)	$	(215)	$	(11,572)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	13,196		—		—		(21)		13,175
Amortization of deferred financing costs	587		—		—		—		587
Non-cash reduction to the operating lease right-of-use assets	587		—		—		—		587
Deferred income taxes	(3,851)		196		—		359		(3,296)
Non-cash foreign currency loss	(3)		—		—		—		(3)
Share-based compensation	2,050		—		—		—		2,050
Provision for doubtful accounts	55		—		—		—		55
Change in fair value of warrant liability	(27)		—		—		—		(27)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable	(2,580)		—		—		(55)		(2,635)
Inventories	4,714		—		—		280		4,994
Prepaid expenses and other receivables	806		—		—		785		1,591
Accounts payable and accrued liabilities	(8,428)		175		79		(337)		(8,511)
Deferred revenue	132		—		—		—		132
Income taxes payable	199		—		—		(412)		(213)
Operating lease liabilities	(510)		—		—		(384)		(894)
Net cash used in operating activities	$	(3,980)	$	—	$	—	$	—	$	(3,980)
Net cash used in investing activities	$	(48,503)	$	—	$	—	$	—	$	(48,503)
Net cash used in financing activities	$	(1,550)	$	—	$	—	$	—	$	(1,550)
Effect of Exchange Rate Change on Cash and Restricted Cash	(26)		—		—		—		(26)
Change in Cash and Restricted Cash	(54,059)		—		—		—		(54,059)
Cash and Restricted Cash, beginning of period	86,343		—		—		—		86,343
Cash and Restricted Cash, end of period	$	32,284	$	—	$	—	$	—	$	32,284

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands USD, except share amounts)

	June 30, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Assets
Current assets
Cash	$	40,441	$	—	$	—	$	—	$	40,441
Accounts receivable, net	50,767		—		—		277		51,044
Inventories, net	9,897		—		—		—		9,897
Income taxes receivable	712		—		—		189		901
Prepaid expenses and other receivables	9,089		—		—		(386)		8,703
Total current assets	110,906		—		—		80		110,986
Non-current assets
Restricted cash	363		—		—		—		363
Property and equipment, net	11,890		—		—		—		11,890
Intangibles assets, net	211,829		—		—		(883)		210,946
Goodwill	426,126		—		—		1,453		427,579
Operating lease right-of-use assets	7,914		—		—		196		8,110
Other long-term assets	381		—		—		—		381
Total assets	$	769,409	$	—	$	—	$	846	$	770,255
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	19,288	$	—	$	—	$	—	$	19,288
Accrued liabilities	15,348		—		—		312		15,660
Current portion of operating lease liabilities	1,764		—		—		212		1,976
Income taxes payable	502		—		—		(502)		—
Deferred revenue	7,698		—		—		(684)		7,014
Current portion of long-term debt and other borrowings, net	3,165		—		—		—		3,165
Total current liabilities	47,765		—		—		(662)		47,103
Non-current liabilities
Deferred tax liabilities	32,618		1,801		—		615		35,034
Warrant liability	153		—		—		—		153
Non-current portion of operating lease liabilities	6,852		—		—		—		6,852
Long-term debt and other borrowings, net	413,788		—		—		—		413,788
Other long-term liabilities	4,349		2,102		1,414		264		8,129
Total liabilities	$	505,525	$	3,903	$	1,414	$	217	$	511,059
Stockholders’ equity
Common stock	$	8	$	—	$	—	$	—	$	8
Additional paid-in capital	429,878		—		—		(331)		429,547
Accumulated other comprehensive loss	(6,074)		201		—		(86)		(5,959)
Accumulated deficit	(159,928)		(4,104)		(1,414)		1,046		(164,400)
Total stockholders’ equity	$	263,884	$	(3,903)	$	(1,414)	$	629	$	259,196
Total liabilities and stockholders’ equity	$	769,409	$	—	$	—	$	846	$	770,255

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands USD, except share and per share amounts) (unaudited)

	For the three months ended
	June 30, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Revenue
Services	$	47,778	$	—	$	—	$	27	$	47,805
Products	22,575		—		—		541		23,116
Total revenue	70,353		—		—		568		70,921
Cost of revenue
Cost of services	16,577		—		—		33		16,610
Cost of products	17,298		—		—		(280)		17,018
Total cost of revenue (exclusive of depreciation and amortization shown separately below)	33,875		—		—		(247)		33,628
Operating expenses
Selling, general and administrative	29,413		—		79		(85)		29,407
Depreciation and amortization	13,774		—		—		(21)		13,753
Total operating expenses	43,187		—		79		(106)		43,160
Operating income (loss)	(6,709)		—		(79)		921		(5,867)
Interest expense, including amortization of deferred financing costs, net	7,297		—		—		—		7,297
Change in fair value of warrant liability	(106)		—		—		—		(106)
Loss before income taxes	(13,900)		—		(79)		921		(13,058)
Income tax expense (benefit)	(2,759)		350		—		141		(2,268)
Net loss	$	(11,141)	$	(350)	$	(79)	$	780	$	(10,790)
Loss per share:
Basic	$(0.15)		$0.00		$0.00		$0.01		$(0.14)
Diluted	$(0.15)		$0.00		$0.00		$0.01		$(0.14)
Weighted average number of shares outstanding:
Basic	76,239,989		—		—		—		76,239,989
Diluted	76,239,989		—		—		—		76,239,989

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands USD, except share and per share amounts) (unaudited)

	For the six months ended
	June 30, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Revenue
Services	$	95,284	$	—	$	—	$	64	$	95,348
Products	44,010		—		—		541		44,551
Total revenue	139,294		—		—		605		139,899
Cost of revenue
Cost of services	34,105		—		—		54		34,159
Cost of products	34,741		—		—		—		34,741
Total cost of revenue (exclusive of depreciation and amortization shown separately below)	68,846		—		—		54		68,900
Operating expenses
Selling, general and administrative	57,042		—		158		(75)		57,125
Depreciation and amortization	26,970		—		—		(42)		26,928
Total operating expenses	84,012		—		158		(117)		84,053
Operating income (loss)	(13,564)		—		(158)		668		(13,054)
Interest expense, including amortization of deferred financing costs, net	13,921		—		—		—		13,921
Change in fair value of warrant liability	(133)		—		—		—		(133)
Loss before income taxes	(27,352)		—		(158)		668		(26,842)
Income tax expense (benefit)	(5,304)		721		—		103		(4,480)
Net loss	$	(22,048)	$	(721)	$	(158)	$	565	$	(22,362)
Loss per share:
Basic	$(0.29)		$(0.01)		$0.00		$0.01		$(0.30)
Diluted	$(0.29)		$(0.01)		$0.00		$0.01		$(0.30)
Weighted average number of shares outstanding:
Basic	75,146,201		—		—		—		75,146,201
Diluted	75,146,201		—		—		—		75,146,201

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(In thousands USD) (unaudited)

	For the three months ended
	June 30, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Net loss	$	(11,141)	$	(350)	$	(79)	$	780	$	(10,790)
Other comprehensive loss:
Foreign currency translation adjustment	(2,559)		186		—		—		(2,373)
Comprehensive loss	$	(13,700)	$	(164)	$	(79)	$	780	$	(13,163)

	For the six months ended
	June 30, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Net loss	$	(22,048)	$	(721)	$	(158)	$	565	$	(22,362)
Other comprehensive loss:
Foreign currency translation adjustment	(2,743)		247		—		—		(2,496)
Comprehensive loss	$	(24,791)	$	(474)	$	(158)	$	565	$	(24,858)

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity

(In thousands, USD, except share amounts) (unaudited)

	Common Stock			Additional paid-in capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount		Amount		Amount		Amount		Amount
As Reported
Balance at December 31, 2021	72,027,743	7		413,646		(3,331)		(138,179)		272,143
Opening balance sheet adjustment (as previously reported)	—	—		(11,613)		—		299		(11,314)
Balance at December 31, 2021 - Adjusted	72,027,743	7		402,033		(3,331)		(137,880)		260,829
Foreign currency translation adjustment	—	—		—		(184)		—		(184)
Stock-based compensation	—	—		2,050		—		—		2,050
Common stock issued pursuant to acquisition	4,212,246	1		23,294		—		—		23,295
Net loss	—	—		—		—		(10,907)		(10,907)
Balance at March 31, 2022	76,239,989	8		427,377		(3,515)		(148,787)		275,083
Foreign currency translation adjustment	—	—		—		(2,559)		—		(2,559)
Stock-based compensation	—	—		2,501		—		—		2,501
Net loss	—	—		—		—		(11,141)		(11,141)
Balance at June 30, 2022	76,239,989	8		429,878		(6,074)		(159,928)		263,884
Adjustments
Balance, December 31, 2021	—	—		(331)		(132)		(4,158)		(4,621)
March 31, 2022	—	—		—		—		—		—
Foreign currency translation adjustment	—	—		—		61		—		61
Net loss	—	—		—		—		(665)		(665)
Total Adjustments - March 31, 2022	—	—		(331)		(71)		(4,823)		(5,225)
June 30, 2022
Foreign currency translation adjustment	—	—		—		186		—		186
Net loss	—	—		—		—		351		351
Total Adjustments - June 30, 2022	—	—		(331)		115		(4,472)		(4,688)
As Revised
Balance at December 31, 2021	72,027,743	7		413,315		(3,463)		(142,337)		267,522
Opening balance sheet adjustment (as previously reported)	—	—		(11,613)		—		299		(11,314)
Balance at December 31, 2021	72,027,743	7		401,702		(3,463)		(142,038)		256,208
Foreign currency translation adjustment	—	—		—		(123)		—		(123)
Stock-based compensation	—	—		2,050		—		—		2,050
Common stock issued pursuant to acquisition	4,212,246	1		23,294		—		—		23,295
Net loss	—	—		—		—		(11,572)		(11,572)
Balance at March 31, 2022	76,239,989	8		427,046		(3,586)		(153,610)		269,858
Foreign currency translation adjustment	—	—		—		(2,373)		—		(2,373)
Stock-based compensation	—	—		2,501		—		—		2,501
Net loss	—	—		—		—		(10,790)		(10,790)
Balance at June 30, 2022	76,239,989	$	8	$	429,547	$	(5,959)	$	(164,400)	$	259,196

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands USD) (unaudited)

	For the six months ended
	June 30, 2022
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Cash flows from operating activities
Net loss	$	(22,048)	$	(721)	$	(158)	$	565	$	(22,362)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	26,970		—		—		(42)		26,928
Amortization of deferred financing costs	1,188		—		—		—		1,188
Non-cash reduction to the operating lease right-of-use assets	1,129		—		—		—		1,129
Deferred income taxes	(7,666)		398		—		847		(6,421)
Non-cash foreign currency loss	489		—		—		—		489
Share-based compensation	4,551		—		—		—		4,551
Provision for doubtful accounts	183		—		—		—		183
Change in fair value of warrant liability	(133)		—		—		—		(133)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable	2,421		—		—		33		2,454
Inventories	6,661		—		—		—		6,661
Prepaid expenses and other receivables	(769)		—		—		105		(664)
Accounts payable and accrued liabilities	(2,674)		323		158		(325)		(2,518)
Deferred revenue	872		—		—		(684)		188
Income taxes payable	269		—		—		(711)		(442)
Operating lease liabilities	(752)		—		—		212		(540)
Net cash provided by operating activities	$	10,691	$	—	$	—	$	—	$	10,691
Net cash used in investing activities	$	(53,201)	$	—	$	—	$	—	$	(53,201)
Net cash used in financing activities	$	(2,454)	$	—	$	—	$	—	$	(2,454)
Effect of exchange rate change on cash and restricted cash	(575)		—		—		—		(575)
Change in cash and restricted cash	(45,539)		—		—		—		(45,539)
Cash and restricted cash, beginning of period	86,343		—		—		—		86,343
Cash and restricted cash, end of period	$	40,804	$	—	$	—	$	—	$	40,804

KORE Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Temporary Equity and Stockholders’ Equity

(In thousands, USD, except share amounts) (unaudited)

	Series A Preferred Stock			Series A-1 Preferred Stock			Series B Preferred Stock			Series C Convertible Preferred Stock			Total Temporary Equity		Common Stock			Additional paid-in capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Temporary Equity
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Amount		Shares	Amount		Amount		Amount		Amount		Amount
As Reported
Balance at December 31, 2020 (as previously reported)	7,756,158	$	77,562	7,862,107	$	78,621	9,090,975	$	90,910	2,566,186	$	16,802	$	263,895	30,281,520	$	3	$	135,616	$	(1,677)	$	(113,726)	$	20,216
Accrued dividends payable	248,622	2,486		266,558	2,666		224,161	2,241		—	—		7,393		—	—		(7,393)		—		—		(7,393)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(900)		—		(900)
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(1,081)		(1,081)
Balance at March 31, 2021	8,004,780	80,048		8,128,665	81,287		9,315,136	93,151		2,566,186	16,802		271,288		30,281,520	3		128,538		(2,577)		(114,807)		11,157
Adjustments
Balance, December 31, 2020	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		115		(3,835)		(3,720)
March 31, 2021															—	—		—		—		—		—
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		4		—		4
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(918)		(918)
Total Adjustments - March 31, 2021	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		119		(4,753)		(4,634)
As Revised
Balance at December 31, 2020	7,756,158	77,562		7,862,107	78,621		9,090,975	90,910		2,520,368	16,502		263,595		30,281,520	3		135,616		(1,562)		(117,561)		16,496
Accrued dividends payable	248,622	2,486		266,558	2,666		224,161	2,241		—	—		7,393		—	—		(7,393)		—		—		(7,393)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(896)		—		(896)
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(1,999)		(1,999)
Balance at March 31, 2021	8,004,780	$	80,048	8,128,665	$	81,287	9,315,136	$	93,151	2,520,368	$	16,502	$	270,988	30,281,520	$	3	$	128,538	$	(2,458)	$	(119,560)	$	6,523

KORE Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands USD) (unaudited)

	For the three months ended
	March 31, 2021
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Cash flows from operating activities
Net loss	$	(1,081)	$	(238)	$	(114)	$	(566)	$	(1,999)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	13,114		—		—		(21)		13,093
Amortization of deferred financing costs	524		—		—		—		524
Deferred income taxes	(1,366)		238		—		(259)		(1,387)
Non-cash foreign currency loss	(70)		—		—		—		(70)
Share-based compensation	315		—		—		—		315
Provision for doubtful accounts	(18)		—		—		—		(18)
Change in fair value of warrant liability	(2,424)		—		—		—		(2,424)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable	(1,855)		—		—		(55)		(1,910)
Inventories	(878)		—		—		—		(878)
Prepaid expenses and other receivables	(5,375)		—		—		1,274		(4,101)
Accounts payable and accrued liabilities	(13,311)		—		114		(365)		(13,562)
Deferred revenue	(81)		—		—		—		(81)
Income taxes payable	186		—		—		(8)		178
Net cash used in operating activities	$	(12,320)	$	—	$	—	$	—	$	(12,320)
Net cash used in investing activities	$	(3,091)	$	—	$	—	$	—	$	(3,091)
Net cash provided financing activities	$	18,291	$	—	$	—	$	—	$	18,291
Effect of Exchange Rate Change on Cash and Restricted Cash	(67)		—		—		—		(67)
Change in Cash and Restricted Cash	2,813		—		—		—		2,813
Cash and Restricted Cash, beginning of period	10,693		—		—		—		10,693
Cash and Restricted Cash, end of period	$	13,506	$	—	$	—	$	—	$	13,506

KORE Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, USD, except share amounts) (unaudited)

	Series A Preferred Stock			Series A-1 Preferred Stock			Series B Preferred Stock			Series C Convertible Preferred Stock			Total Temporary Equity		Common Stock			Additional paid-in capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Temporary Equity
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Amount		Shares	Amount		Amount		Amount		Amount		Amount
As Reported
Balance at December 31, 2020	7,756,158	$	77,562	7,862,107	$	78,621	9,090,975	$	90,910	2,566,186	$	16,802	$	263,895	30,281,520	$	3	$	135,616	$	(1,677)	$	(113,726)	$	20,216
Accrued dividends payable	248,622	2,486		266,558	2,666		224,161	2,241		—	—		7,393		—	—		(7,393)		—		—		(7,393)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(900)		—		(900)
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(1,081)		(1,081)
Balance at March 31, 2021	8,004,780	80,048		8,128,665	81,287		9,315,136	93,151		2,566,186	16,802		271,288		30,281,520	3		128,538		(2,577)		(114,807)		11,157
Derecognition of shares	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		—		—		—
Accrued dividends payable	251,385	2,514		269,520	2,695		232,240	2,323		—	—		7,532		—	—		(7,532)		—		—		(7,532)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		743		—		743
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(6,885)		(6,885)
Balance at June 30, 2021	8,256,165	82,562		8,398,185	83,982		9,547,376	95,474		2,520,368	16,502		278,520		30,281,520	3		121,321		(1,834)		(121,692)		(2,202)
Adjustments
Balance, December 31, 2020	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		115		(3,835)		(3,720)
March 31, 2021															—	—		—		—		—		—
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		4		—		4
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(918)		(918)
Total Adjustments - March 31, 2021	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		119		(4,753)		(4,634)
June 30, 2021															—	—		—		—		—		—
Derecognition of shares	—	—		—	—		—	—		45,818	300		300		—	—		—		—		—		—
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(325)		—		(325)
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		683		683
Total Adjustments - June 30, 2021	—	—		—	—		—	—		—	—		—		—	—		—		(206)		(4,070)		(4,276)
As Revised
Balance at December 31, 2020	7,756,158	77,562		7,862,107	78,621		9,090,975	90,910		2,520,368	16,502		263,595		30,281,520	3		135,616		(1,562)		(117,561)		16,496
Accrued dividends payable	248,622	2,486		266,558	2,666		224,161	2,241		—	—		7,393		—	—		(7,393)		—		—		(7,393)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(896)		—		(896)
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(1,999)		(1,999)
Balance at March 31, 2021	8,004,780	80,048		8,128,665	81,287		9,315,136	93,151		2,520,368	16,502		270,988		30,281,520	3		128,538		(2,458)		(119,560)		6,523
Accrued dividends payable	251,385	2,514		269,520	2,695		232,240	2,323		—	—		7,532		—	—		(7,532)		—		—		(7,532)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		418		—		418
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(6,202)		(6,202)
Balance at June 30, 2021	8,256,165	$	82,562	8,398,185	$	83,982	9,547,376	$	95,474	2,520,368	$	16,502	$	278,520	30,281,520	$	3	$	121,321	$	(2,040)	$	(125,762)	$	(6,478)

KORE Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands USD) (unaudited)

	For the six months ended
	June 30, 2021
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Cash flows from operating activities
Net loss	$	(7,966)	$	(403)	$	(228)	$	396	$	(8,201)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	25,507		—		—		(42)		25,465
Amortization of deferred financing costs	1,047		—		—		—		1,047
Deferred income taxes	(4,308)		237		—		694		(3,377)
Non-cash foreign currency loss	77		—		—		—		77
Share-based compensation	630		—		—		—		630
Provision for doubtful accounts	11		—		—		—		11
Change in fair value of warrant liability	(2,383)		—		—		—		(2,383)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable	(7,049)		—		—		(109)		(7,158)
Inventories	(4,089)		—		—		—		(4,089)
Prepaid expenses and other receivables	(9,016)		—		—		(109)		(9,125)
Accounts payable and accrued liabilities	(6,103)		166		228		(563)		(6,272)
Deferred revenue	(671)		—		—		—		(671)
Income taxes payable	(32)		—		—		(267)		(299)
Net cash used in operating activities	$	(14,345)	$	—	$	—	$	—	$	(14,345)
Net cash used in investing activities	$	(5,973)	$	—	$	—	$	—	$	(5,973)
Net cash provided by financing activities	$	18,375					$	—	$	18,375
Effect of exchange rate change on cash and restricted cash	(82)		—		—		—		(82)
Change in cash and restricted cash	(2,025)		—		—		—		(2,025)
Cash and restricted cash, beginning of period	10,693		—		—		—		10,693
Cash and restricted cash, end of period	$	8,668	$	—	$	—	$	—	$	8,668

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Unaudited)

(In thousands, USD)

	Series A Preferred			Series A-1			Series B Preferred			Series C Convertible			Total		Common Stock			Additional		Accumulated		Accumulated		Total
	Stock			Preferred Stock			Stock			Preferred Stock			Temporary					paid-in		Other		Deficit		Stockholders’
													Equity					capital		Comprehensive				Equity
																				Income (Loss)
	Temporary Equity
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Amount		Shares	Amount		Amount		Amount		Amount		Amount
As Reported
Balance at December 31, 2020	7,756,158	$	77,562	7,862,107	$	78,621	9,090,975	$	90,910	2,566,186	$	16,802	$	263,895	30,281,520	$	3	$	135,616	$	(1,677)	$	(113,726)	$	20,216
Accrued dividends payable	248,622	2,486		266,558	2,666		224,161	2,241		—	—		7,393		—	—		(7,393)		—		—		(7,393)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(900)		—		(900)
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(1,081)		(1,081)
Balance at March 31, 2021	8,004,780	80,048		8,128,665	81,287		9,315,136	93,151		2,566,186	16,802		271,288		30,281,520	3		128,538		(2,577)		(114,807)		11,157
Derecognition of shares	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		—		—		—
Accrued dividends payable	251,385	2,514		269,520	2,695		232,240	2,323		—	—		7,532		—	—		(7,532)		—		—		(7,532)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		743		—		743
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(6,885)		(6,885)
Balance at June 30, 2021	8,256,165	82,562		8,398,185	83,982		9,547,376	95,474		2,520,368	16,502		278,520		30,281,520	3		121,321		(1,834)		(121,692)		(2,202)
Accrued dividends payable	265,602	2,656		287,998	2,880		236,142	2,361		—	—		7,897		—	—		(7,897)		—		—		(7,897)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(1,322)		—		(1,322)
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		(3,519)		—		—		(3,519)
Distributions to and conversions of preferred stock	(8,521,767)	(85,218)		(8,686,183)	(86,862)		(9,783,518)	(97,835)		(2,520,368)	(16,502)		(286,417)		7,120,368	1		56,502		—		—		56,503
CTAC shares recapitalized, net of equity issuance costs of $15,912	—	—		—	—		—	—		—	—		—		10,373,491	1		6,456		—		—		6,457
Conversion of KORE warrants	—	—		—	—		—	—		—	—		—		1,365,612			10,663		—		—		10,663
Private offering and merger financing, net of equity issuance costs of $7,718	—	—		—	—		—	—		—	—		—		22,686,326	2		217,280		—		—		217,282
Equity portion of convertible debt, net of issuance costs of $224	—	—		—	—		—	—		—	—		—		—	—		12,510		—		—		12,510
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(4,508)		(4,508)
Balance at September 30, 2021	—	—		—	—		—	—		—	—		—		71,827,317	7		413,316		(3,156)		(126,200)		283,967
Adjustments
Balance, December 31, 2020	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		115		(3,835)		(3,720)
March 31, 2021
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		4		—		4
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(918)		(918)
Total Adjustments - March 31, 2021	—	—		—	—		—	—		(45,818)	(300)		(300)		—	—		—		119		(4,753)		(4,634)
June 30, 2021
Derecognition of shares	—	—		—	—		—	—		45,818	300		300		—	—		—		—		—		—
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(325)		—		(325)
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		683		683
Total Adjustments - June 30, 2021	—	—		—	—		—	—		—	—		—		—	—		—		(206)		(4,070)		(4,276)
September 30, 2021
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		67		—		67
Private offering and merger financing	—	—		—	—		—	—		—	—		—		—	—		(331)		—		—		(331)
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		135		135
Total Adjustments - September 30, 2021	—	—		—	—		—	—		—	—		—		—	—		(331)		(139)		(3,935)		(4,405)
As Revised
Balance at December 31, 2020	7,756,158	77,562		7,862,107	78,621		9,090,975	90,910		2,520,368	16,502		263,595		30,281,520	3		135,616		(1,562)		(117,561)		16,496
Accrued dividends payable	248,622	2,486		266,558	2,666		224,161	2,241		—	—		7,393		—	—		(7,393)		—		—		(7,393)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(896)		—		(896)
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(1,999)		(1,999)
Balance at March 31, 2021	8,004,780	80,048		8,128,665	81,287		9,315,136	93,151		2,520,368	16,502		270,988		30,281,520	3		128,538		(2,458)		(119,560)		6,523
Accrued dividends payable	251,385	2,514		269,520	2,695		232,240	2,323		—	—		7,532		—	—		(7,532)		—		—		(7,532)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		418		—		418
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		315		—		—		315
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(6,202)		(6,202)
Balance at June 30, 2021	8,256,165	82,562		8,398,185	83,982		9,547,376	95,474		2,520,368	16,502		278,520		30,281,520	3		121,321		(2,040)		(125,762)		(6,478)
Accrued dividends payable	265,602	2,656		287,998	2,880		236,142	2,361		—	—		7,897		—	—		(7,897)		—		—		(7,897)
Foreign currency translation adjustment	—	—		—	—		—	—		—	—		—		—	—		—		(1,255)		—		(1,255)
Stock-based compensation	—	—		—	—		—	—		—	—		—		—	—		(3,519)		—		—		(3,519)
Distributions to and conversions of preferred stock	(8,521,767)	(85,218)		(8,686,183)	(86,862)		(9,783,518)	(97,835)		(2,520,368)	(16,502)		(286,417)		7,120,368	1		56,502		—		—		56,503
CTAC shares recapitalized, net of equity issuance costs of $15,912	—	—		—	—		—	—		—	—		—		10,373,491	1		6,456		—		—		6,457
Conversion of KORE warrants	—	—		—	—		—	—		—	—		—		1,365,612	—		10,663		—		—		10,663
Private offering and merger financing, net of equity issuance costs of $7,718	—	—		—	—		—	—		—	—		—		22,686,326	2		216,949		—		—		216,951
Equity portion of convertible debt, net of issuance costs of $224	—	—		—	—		—	—		—	—		—		—	—		12,510		—		—		12,510
Net loss	—	—		—	—		—	—		—	—		—		—	—		—		—		(4,373)		(4,373)
Balance at September 30, 2021	—	—		—	—		—	—		—	—		—		71,827,317	$	7	$	412,985	$	(3,295)	$	(130,135)	$	279,562

KORE Group Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(In thousands USD)

	For nine months ended
	September 30, 2021
	As previously reported		Income tax adjustments		Indirect tax adjustments		Other adjustments		Revised
Cash flows from operating activities
Net loss	$	(12,474)	$	(702)	$	(342)	$	944	$	(12,574)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	37,947		—		—		(63)		37,884
Amortization of deferred financing costs	1,569		—		—		—		1,569
Deferred income taxes	(8,197)		293		—		463		(7,441)
Non-cash foreign currency loss (gain)	(163)		—		—		—		(163)
Stock-based compensation	4,564		—		—		—		4,564
Provision for doubtful accounts	117		—		—		—		117
Change in fair value of warrant liability	(5,281)		—		—		—		(5,281)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable	(12,792)		—		—		(164)		(12,956)
Inventories	(6,461)		—		—		—		(6,461)
Prepaid expenses and other current assets	(5,054)		—		—		(51)		(5,105)
Accounts payable and accrued liabilities	(2,366)		409		342		(749)		(2,364)
Deferred revenue	(911)		—		—		—		(911)
Income taxes payable	63		—		—		(380)		(317)
Net cash used in operating activities	$	(9,439)	$	—	$	—	$	—	$	(9,439)
Net cash used in investing activities	$	(9,782)	$	—	$	—	$	—	$	(9,782)
Net cash provided by financing activities	$	81,772	$	—	$	—	$	—	$	81,772
Effect of exchange rate change on cash	(188)								(188)
Change in cash and restricted cash	62,363		—		—		—		62,363
Cash and restricted cash, beginning of period	$	10,693	—		—		—		$	10,693
Cash and restricted cash, end of period	$	73,056	$	—	$	—	$	—	$	73,056