6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 6-K 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September, 2024

Commission File Number: 001-41540

Perfect Corp.

14F, No. 98 Minquan Road

Xindian District

New Taipei City 231

Taiwan

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. 

Form 20-F  ☒    Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

INCORPORATION BY REFERENCE

Exhibits 99.1 and 99.2 to this report on Form 6-K shall be deemed to be incorporated by reference into (1) the Company’s registration statement on Form F-3 (File No. 333-274835) (including the prospectus forming a part of such registration statement); and (2) the Company’s registration statement on Form S-8 (File No. 333-268059) (including the prospectus forming a part of such registration statement) and, in each case, to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

Exhibit	Description of Exhibit
99.1	Condensed Consolidated Interim Financial Statements as of and for the Six Months ended June 30, 2024.
99.2	Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Period Ended June 30, 2024.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 6-K may be viewed as “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These statements are based on the beliefs and assumptions of our management. Although we believe that our respective plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be preceded by, followed by or include the words “believe,” “estimate,” “expect,” “forecast,” “may,” “will,” “should,” “seek,” “plan,” “scheduled,” “anticipate” or “intend” or similar expressions. Forward-looking statements contained in this Form 6-K (including information incorporated by reference herein) include, but are not limited to, statements about:

•our ability to maintain the listing of our securities on the NYSE;

•changes adversely affecting the business in which we are engaged;

•management of growth;

•commencement of any war, armed hostilities or other international calamity, including any act of terrorism, on or after the date of this annual report, in or involving the U.S. or Taiwan, or the material escalation of any such war, armed hostilities or other international calamity that had commenced before the date of this annual report, in each case which is reasonably likely to have a material adverse effect on the Company;

•general economic conditions;

•our business strategy and plans;

•the result of future financing efforts;

•our future market position and growth prospects;

•expected operating results, such as revenue growth, and earnings;

•the effects of health epidemics; and

•the other matters described in this Form 6-K.

Such forward-looking statements, if any, with respect to our revenues, earnings, performance, strategies, prospects and other aspects of the businesses are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, anticipated events and trends, the economy and other future conditions that are subject to risks and uncertainties. These forward-looking statements are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability regarding future performance, events or circumstances. Many of the factors affecting actual performance, events and circumstances are beyond our control.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us, as of the date of this Form 6-K, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and such statements should not be read to indicate that such party has conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Form 6-K. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date.

All forward-looking statements included herein and in the documents incorporated by reference in this Form 6-K are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except to the extent required by applicable laws and regulations, we undertake no obligations to update these forward-looking statements to reflect events or circumstances after the date of this Form 6-K or to reflect the occurrence of unanticipated events. In the event that any forward-looking statement is updated, no inference should be made that we will make additional updates with respect to that statement, related matters, or any other forward-looking statements. Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from forward-looking statements, including discussions of additional significant risk factors, may appear in our public filings with the SEC, which are or will be (as appropriate) accessible at www.sec.gov, and which you are advised to consult.

Capitalized terms used herein without definition shall have the meanings assigned to them in the Company’s latest Annual Report on Form 20-F, as filed with the Securities and Exchange Commission (the “Form 20-F”). Please also see the “Risk Factors” section of the Form 20-F.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Perfect Corp.
Date: September 24, 2024	By:	/s/ Alice H. Chang
		Name: Alice H. Chang
		Title: Chief Executive Officer

EX-99.1

Exhibit 99.1

INDEX TO FINANCIAL STATEMENTS

Unaudited Interim Financial Statements:	Page(s)
Unaudited Condensed Interim Consolidated Balance Sheets as of December 31, 2023 And June 30, 2024	F-2
Unaudited Condensed Interim Consolidated Statements Of Comprehensive Income For The Six Months Ended June 30, 2023 And 2024	F-4
Unaudited Condensed Interim Consolidated Statements Of Changes In Equity For The Six Months Ended June 30, 2023 And 2024	F-5
Unaudited Condensed Interim Consolidated Statements Of Cash Flows For The Six Months Ended June 30, 2023 And 2024	F-6
Notes to the Consolidated Financial Statements	F-7

F-1

PERFECT CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2023 AND JUNE 30, 2024

(Expressed in thousands of United States dollars)

		December 31, 2023		June 30, 2024
Assets	Notes	Amount		Amount
Current assets
Cash and cash equivalents	6(1)	$	123,871	$	120,796
Current financial assets at amortized cost	6(2)	30,300		37,970
Current contract assets	6(16)	2,770		1,543
Accounts receivable	6(3)	6,992		7,102
Other receivables		343		737
Current income tax assets		311		281
Inventories		33		21
Other current assets	6(4)	4,042		2,832
Total current assets		168,662		171,282
Non-current assets
Property, plant and equipment	6(5)	380		545
Right-of-use assets	6(6) and 7	847		679
Intangible assets	6(7)	77		57
Deferred income tax assets		257		1,120
Guarantee deposits paid		140		147
Total non-current assets		1,701		2,548
Total assets		$	170,363	$	173,830

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

F-2

PERFECT CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (continued)
DECEMBER 31, 2023 AND JUNE 30, 2024

(Expressed in thousands of United States dollars)

		December 31, 2023		June 30, 2024
Liabilities and Equity	Notes	Amount		Amount
Current liabilities
Current contract liabilities	6(16)	$	15,346	$	16,858
Other payables	6(9)	10,331		10,239
Other payables – related parties	7	50		50
Current tax liabilities		21		390
Current provisions	6(10)	2,394		1,775
Current lease liabilities	6(6) and 7	481		524
Other current liabilities		277		195
Total current liabilities		28,900		30,031
Non-current liabilities
Non-current financial liabilities at fair value through profit or loss	6(8)	1,566		1,520
Non-current lease liabilities	6(6) and 7	387		187
Net defined benefit liability, non-current	6(11)	79		81
Guarantee deposits received		25		25
Total non-current liabilities		2,057		1,813
Total liabilities		30,957		31,844
Equity
Capital stock	6(13)
Perfect Class A Ordinary Shares, $0.1 (in dollars) par value		8,513		8,506
Perfect Class B Ordinary Shares, $0.1 (in dollars) par value		1,679		1,679
Capital surplus	6(14)
Capital surplus		510,399		511,653
Retained earnings	6(15)
Accumulated deficit		(380,472)		(379,078)
Other equity interest
Other equity interest		(523)		(774)
Treasury shares	6(13)(14)	(190)		—
Total equity		139,406		141,986
Total liabilities and equity		$	170,363	$	173,830

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

F-3

PERFECT CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024

(Expressed in thousands of United States dollars)

		Six months ended June 30
		2023		2024
Items	Notes	Amount		Amount
Revenue	6(16) and 7	$	24,832	$	28,194
Cost of sales and services	6(11)(21)(22)	(5,024)		(5,971)
Gross profit		19,808		22,223
Operating expenses	6(5)(6)(7)(11)(21)(22)(26) and 7
Sales and marketing expenses		(12,585)		(14,184)
General and administrative expenses		(5,427)		(4,614)
Research and development expenses		(5,396)		(6,010)
Total operating expenses		(23,408)		(24,808)
Operating loss		(3,600)		(2,585)
Non-operating income and expenses
Interest income	6(17)	4,609		3,952
Other income	6(18)	7		14
Other gains and losses	6(8)(19)	(459)		(291)
Finance costs	6(6)(20) and 7	(5)		(10)
Total non-operating income and expenses		4,152		3,665
Income before income tax		552		1,080
Income tax benefit (expense)	6(23)	(63)		314
Net income		$	489	$	1,394
Other comprehensive loss
Components of other comprehensive loss that will be reclassified to profit or loss
Exchange differences arising on translation of foreign operations		$	(168)	$	(251)
Other comprehensive loss, net		$	(168)	$	(251)
Total comprehensive income		$	321	$	1,143
Net income attributable to:
Shareholders of the parent		$	489	$	1,394
Total comprehensive income attributable to:
Shareholders of the parent		$	321	$	1,143
Earnings per share (in dollars)	6(24)
Basic earnings per share of Class A and Class B Ordinary Shares		$	0.004	$	0.014
Diluted earnings per share of Class A and Class B Ordinary Shares		$	0.004	$	0.014

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

F-4

PERFECT CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024

(Expressed in thousands of United States dollars)

		Equity attributable on owners of the parent
				Capital surplus						Other equity interest
	Notes	Capital stock		Additional paid-in capital		Other		Accumulated deficit		Exchange differences arising on translation of foreign operations		Treasury shares		Total
Year 2023
Balance at January 1, 2023		$	11,826	$	554,209	$	2,220	$	(385,884)	$	(407)	$	—	$	181,964
Net income for the period		—		—		—		489		—		—		489
Other comprehensive loss for the period	6(8)	—		—		—		—		(168)		—		(168)
Total comprehensive income (loss)		—		—		—		489		(168)		—		321
Share-based payment transactions	6(12)	—		—		1,441		—		—		—		1,441
Shares repurchased	6(13)	—		—		—		—		—		(429)		(429)
Balance at June 30, 2023		$	11,826	$	554,209	$	3,661	$	(385,395)	$	(575)	$	(429)	$	183,297
Year 2024
Balance at January 1, 2024		$	10,192	$	477,734	$	32,665	$	(380,472)	$	(523)	$	(190)	$	139,406
Net income for the period		—		—		—		1,394		—		—		1,394
Other comprehensive loss for the period	6(8)	—		—		—		—		(251)		—		(251)
Total comprehensive income (loss)		—		—		—		1,394		(251)		—		1,143
Share-based payment transactions	6(12)	—		—		1,437		—		—		—		1,437
Shares retired	6(13)(14)	(7)		(319)		136		—		—		190		—
Balance at June 30, 2024		$	10,185	$	477,415	$	34,238	$	(379,078)	$	(774)	$	—	$	141,986

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

F-5

PERFECT CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024

(Expressed in thousands of United States dollars)

		Six months ended June 30
	Notes	2023		2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$	552	$	1,080
Adjustments to reconcile profit (loss)
Depreciation expense	6(5)(6)(21)	326		344
Amortization expense	6(7)(21)	37		26
Interest income	6(17)	(4,609)		(3,952)
Interest expense	6(6)(20)	5		10
Net (gains) losses on financial liabilities at fair value through profit or loss	6(8)(19)	244		(46)
Share-based payment transactions	6(12)	1,441		1,437
Changes in operating assets and liabilities
Accounts receivable		87		(134)
Current contract assets		2,130		1,214
Other receivables		3		—
Inventories		11		12
Other current assets		47		1,210
Current contract liabilities		3,035		1,622
Other payables		(1,183)		(51)
Other payables – related parties		(12)		3
Current provisions		320		(563)
Other current liabilities		(107)		(67)
Net defined benefit liability, non-current		1		1
Cash inflow generated from operations		2,328		2,146
Interest received		4,331		3,558
Interest paid		(5)		(10)
Income tax paid		(205)		(176)
Net cash flows from operating activities		6,449		5,518
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortized cost	6(2)	(160,800)		(44,470)
Proceeds from disposal of financial assets at amortized cost	6(2)	30,000		36,800
Acquisition of property, plant and equipment	6(5)	(170)		(259)
Acquisition of intangible assets	6(7)	(33)		(6)
Increase in guarantee deposits paid		—		(8)
Net cash flows used in investing activities		(131,003)		(7,943)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of principal portion of lease liabilities	6(6)(25)	(203)		(239)
Payments to acquire treasury shares	6(13)	(429)		—
Net cash flows used in financing activities		(632)		(239)
Effects of exchange rates changes on cash and cash equivalents		(262)		(411)
Net decrease in cash and cash equivalents		(125,448)		(3,075)
Cash and cash equivalents at beginning of period		162,616		123,871
Cash and cash equivalents at end of period		$	37,168	$	120,796

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

F-6

PERFECT CORP. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024
(Expressed in thousands of United States dollars, except as otherwise indicated)

1.    History and Organization

Perfect Corp. (the “Company” or “Perfect”), is a Cayman Islands exempted company with limited liability, which incorporated on February 13, 2015 with registered address PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The Company and its subsidiaries (collectively referred herein as the “Group”) are SaaS technology companies offering AR/AI solution dedicated to the beauty and fashion industry as well as mobile applications to consumers. The principal place of business is at 14F, No. 98 Minquan Road, Xindian District, New Taipei City 231, Taiwan.

On October 28, 2022 (the “Closing Date”), the Company consummated the previously announced merger transaction pursuant to the Business Combination Agreement dated as of March 3, 2022, by and among Perfect, Beauty Corp., a wholly-owned subsidiary of Perfect, Fashion Corp., a wholly-owned subsidiary of Perfect, and Provident Acquisition Corp. (“Provident”).

Pursuant to the Business Combination Agreement, dated as of March 3, 2022, Beauty Corp., a Cayman Islands exempted company with limited liability, merged with and into Provident (the “First Merger”), a special purpose acquisition company incorporated in the Cayman Islands and listed on the Nasdaq Stock Market (“NASDAQ”), with Provident surviving as a wholly-owned subsidiary of Perfect, and then immediately following the First Merger, Provident merged with and into Fashion Corp. (the “Second Merger”), a Cayman Islands exempted company with limited liability, with Fashion Corp. surviving as a wholly-owned subsidiary of Perfect. The consummation of the merger transactions was referred to as the “Closing”, dated as of October 28, 2022.

In connection with the merger, each Perfect original share (consisting of Perfect common share, par value $0.1 (in dollars) per share, and Perfect preferred share, par value $0.1 (in dollars) per share) converted to Perfect Class A or Perfect Class B ordinary share, par value $0.1 (in dollars) per share, based on a conversion ratio 0.17704366. Each Provident share (consisting of Provident Class A ordinary share, par value $0.0001 (in dollars) per share, and Provident Class B ordinary share, par value $0.0001 (in dollars) per share) converted to one Perfect Class A ordinary share.

Upon the consummation of the mergers and the other transactions contemplated by the Business Combination Agreement, the shareholders of Provident became shareholders of Perfect, and the Company became a publicly traded company on the New York Stock Exchange (“NYSE”) on October 31, 2022.

The merger transaction pursuant to the Business Combination Agreement is accounted for as a recapitalization.

On November 24, 2023, the Board of Directors approved a tender offer to purchase up to 16,129,032 Class A Ordinary Shares at a price of $3.10 (in dollars) per share for an aggregate purchase price of approximately $50,000, subject to certain limitations and legal requirements. The Board of Directors has concluded that the tender offer is a prudent use of our available cash from operations and other financial resources and delivers value to our shareholders. The Board of Directors has also determined that a cash tender offer is an appropriate mechanism to return capital to shareholders that seek liquidity under current market conditions while, at the same time, allowing shareholders who do not participate in the tender offer to share in a higher proportion of our future potential.

In accordance with the terms and conditions of the tender offer, and based on the final results reported by the Depositary, the Company has accepted for purchase 16,129,010 shares, through the tender offer at a price of $3.10 (in dollars) per share, for an aggregate cost of approximately $50,000, excluding fees relating to the tender offer. All the purchased shares were retired on December 29, 2023.

2.    The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization

These unaudited condensed interim consolidated financial statements were authorized for issuance by the Board of Directors on September 23, 2024.

F-7

Index to Financial Statements

3.    Application of New Standards, Amendments and Interpretations

3(1)    New and amended standards adopted by the Group

New standards, interpretations and amendments issued by International Accounting Standards Board (the “IASB”) and became effective from 2024 are as follows:

New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’	January 1, 2024
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024

The above standards and interpretations had no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. The new disclosures related to supplier finance arrangements are not required to be provided in the 2024 interim report.

3(2)    New and revised International Financial Reporting Standards not yet adopted

New and amendments to IFRSs which have been published but are not mandatory for the financial period ending June 30, 2024 are listed below:

New Standards, Interpretations and Amendments	Effective date by IASB
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
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial Instruments’	January 1, 2026
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4.    Summary of Significant Accounting Policies

The unaudited condensed interim consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of operations for the interim period. All such adjustments to the financial information are of a normal, recurring nature. Accordingly, these unaudited condensed interim consolidated financial statements are to be read in conjunction with the annual financial statements for the year ended December 31, 2023. The principal accounting policies applied in the preparation of these unaudited condensed interim consolidated financial statements are disclosed in financial statements for the year ended December 31, 2023 and have been consistently applied to all the periods presented, except for the adoption of new and amended standards as set out below and Note 3(1).

F-8

Index to Financial Statements

4(1)    Compliance statement

These unaudited condensed interim consolidated financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the IASB.

4(2)    Basis of preparation

A.Except for the following items, the unaudited condensed interim consolidated financial statements have been prepared under the historical cost convention:

(a)Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

(b)Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

B.The preparation of the unaudited condensed interim consolidated financial statements in conformity with IAS 34 Interim Financial Reporting requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the unaudited condensed interim consolidated financial statements are disclosed in Note 5.

4(3)    Basis of consolidation

A.Basis for preparation of unaudited condensed interim consolidated financial statements:

(a)All subsidiaries are included in the Group’s unaudited condensed interim consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

(b)Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

(c)When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

F-9

Index to Financial Statements

B.Subsidiaries included in the unaudited condensed interim consolidated financial statements:

			Ownership (%)
Name of investor	Name of subsidiary	Main business activities	December 31, 2023	June 30, 2024
The Company	Perfect Mobile Corp. (Taiwan)	Design, development, marketing and sales of AR/AI SaaS solution and mobile applications.	100%	100%
The Company	Perfect Corp. (USA)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Corp. (Japan)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Corp. (Shanghai)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Mobile Corp.(B.V.I.)	Investment activities.	100%	100%
Perfect Mobile Corp. (Taiwan)	Perfect Corp. (France)	Marketing and service center for sales of AR/AI SaaS solution.	100%	100%

C.Subsidiaries not included in the consolidated financial statements:

None.

D.Adjustments for subsidiaries with different balance sheet dates:

None.

E.Significant restrictions:

None.

F.Subsidiaries that have non-controlling interests that are material to the Group:

None.

5.    Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

There have been no significant changes with regards to critical accounting judgements, estimates and key sources of assumption uncertainty as of June 30, 2024. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2023.

6.    Details of Significant Accounts

6(1)    Cash and cash equivalents

	December 31, 2023		June 30, 2024
Petty cash	$	1	$	1
Checking accounts	2,139		1,976
Demand deposits	12,547		15,114
Time deposits	109,000		103,500
Others	184		205
	$	123,871	$	120,796

F-10

Index to Financial Statements

A.The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. As of June 30, 2024, the majority of our cash and cash equivalents, 95%, are denominated in U.S. Dollars.

B.The Group has no cash and cash equivalents pledged to others.

6(2)    Current financial assets at amortized cost

	December 31, 2023		June 30, 2024
Time deposits with maturities over three months	$	30,300	$	37,970

A.The Group has no financial assets at amortized cost pledged to others.

B.The counterparties of the Group's time deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote. As of June 30, 2024, 95% of current financial assets at amortized cost are denominated in U.S. Dollars.

C.Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2).

6(3)    Accounts receivable

	December 31, 2023		June 30, 2024
Accounts receivable	$	6,992	$	7,102

A.The ageing analysis of accounts receivable is as follows:

	December 31, 2023		June 30, 2024
Not past due	$	5,791	$	5,399
Up to 30 days	594		563
31 to 90 days	340		302
91 to 180 days	196		643
Over 181 days	71		195
	$	6,992	$	7,102

The above ageing analysis was based on days overdue.

B.As at December 31, 2023 and June 30, 2024, accounts receivable were all from contracts with customers. And as at January 1, 2023, the balance of receivables from contracts with customers amounted to $7,756.

C.As at December 31, 2023 and June 30, 2024, without taking into account other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable was $6,992 and $7,102, respectively.

D.Information relating to credit risk of accounts receivable is provided in Note 12(2).

6(4)    Other current assets

	December 31, 2023		June 30, 2024
Prepaid expenses	$	3,773	$	2,761
Others	269		71
	$	4,042	$	2,832

F-11

Index to Financial Statements

6(5)    Property, plant and equipment

	Leasehold improvements		Machinery		Office equipment		Total
At December 31, 2023
Cost	$	675	$	729	$	53	$	1,457
Accumulated depreciation	(553)		(488)		(36)		(1,077)
	$	122	$	241	$	17	$	380
Opening net book amount	$	122	$	241	$	17	$	380
Additions	69		190		—		259
Depreciation expense	(27)		(64)		(3)		(94)
Closing net book amount	$	164	$	367	$	14	$	545
At June 30, 2024
Cost	$	744	$	919	$	53	$	1,716
Accumulated depreciation	(580)		(552)		(39)		(1,171)
	$	164	$	367	$	14	$	545

The Group has no property, plant and equipment pledged to others.

6(6)    Leasing arrangements  —  lessee

A.The Group leases various assets including buildings and business vehicles. Rental contracts are typically made for periods of 2 to 3 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Leased assets cannot be used as collateral for borrowing purposes and are prohibited from being subleased, sold or lent to others or corporations under any circumstances.

B.Short-term leases with a lease term of 12 months or less include offices located in United States, Japan, China and France. As of December 31, 2023 and June 30, 2024, lease commitments for short-term leases amounted to $136 and $148, respectively.

C.The movements of right-of-use assets of the Group are as follows:

	Buildings		Business vehicles		Total
At December 31, 2023
Cost	$	942	$	202	$	1,144
Accumulated depreciation	(237)		(60)		(297)
	$	705	$	142	$	847
Opening net book amount	$	705	$	142	$	847
Additions	82		—		82
Depreciation expense	(204)		(46)		(250)
Closing net book amount	$	583	$	96	$	679
At June 30, 2024
Cost	$	1,024	$	202	$	1,226
Accumulated depreciation	(441)		(106)		(547)
	$	583	$	96	$	679

F-12

Index to Financial Statements

D.Lease liabilities relating to lease contracts:

	December 31, 2023		June 30, 2024
Total lease liabilities	$	868	$	711
Less: current portion (shown as ‘current lease liabilities’)	(481)		(524)
	$	387	$	187

E.The information on profit and loss accounts relating to lease contracts is as follows:

	Six months ended June 30,
	2023		2024
Items affecting profit or loss
Interest expense on lease liabilities	$	5	$	10
Expense on short-term lease contracts	193		177
	$	198	$	187

F.For the six months ended June 30, 2023 and 2024, the Group’s total cash outflow for leases were $401 and $426, respectively, including the interest expense on lease liabilities amounting to $5 and $10, expense on short-term lease contracts amounting to $193 and $177, and repayments of principal portion of lease liabilities amounting to $203 and $239, respectively.

6(7)    Intangible assets

	Software		Other intangible assets		Total
At December 31, 2023
Cost	$	137	$	89	$	226
Accumulated amortization	(68)		(81)		(149)
	$	69	$	8	$	77
Opening net book amount	$	69	$	8	$	77
Additions	6		—		6
Cost of disposals	—		(74)		(74)
Accumulated amortization on disposals	—		74		74
Amortization charge	(24)		(2)		(26)
Closing net book amount	$	51	$	6	$	57
At June 30, 2024
Cost	$	143	$	15	$	158
Accumulated amortization	(92)		(9)		(101)
	$	51	$	6	$	57

Details of amortization on intangible assets are as follows:

	Six months ended June 30,
	2023		2024
Research and development expenses	$	37	$	26

F-13

Index to Financial Statements

6(8)    Financial liabilities at fair value through profit or loss

	December 31, 2023		June 30, 2024
Non-current items:
Warrant liabilities	$	8,431	$	8,431
Add: Valuation adjustment	(6,865)		(6,911)
	$	1,566	$	1,520

A.    Amounts recognized in profit or loss and other comprehensive income in relation to financial liabilities at fair value through profit or loss are as follows:

	Six months ended June 30,
	2023		2024
Net gains (losses) recognized in profit or loss
Warrant liabilities	$	(244)	$	46

B.    Warrant liabilities

(a)As part of Business Combination, warrants sold and issued by Provident were automatically converted to Perfect Warrants. Each warrants entitles the holder to purchase one Class A Ordinary Share at a price of $11.50 (in dollars) per share.

(b)As of June 30, 2024 there were 20,850 thousand warrants outstanding, consisting of 12,750 thousand Public Warrants, 6,600 thousand Private Placement Warrants and 1,500 thousand Forward Purchase Warrants (as defined below). Each warrant is exercisable for one Perfect Class A Ordinary Share, in accordance with its terms.

Public Warrants

Provident sold an aggregate of 11,500 thousand Public Warrants in the Provident Initial Public Offering. On November 20, 2023, 1,250 thousand Forward Purchase Warrants were converted into 1,250 thousand Public Warrants.

Private Placement Warrants

Provident privately issued and sold an aggregate of 6,600 thousand Private Warrants to the Sponsor simultaneously with the consummation of the Provident Initial Public Offering on January 7, 2021.

Forward Purchase Warrants

Pursuant to the Forward Purchase Agreements (“FPA”), Provident issued and sold to FPA Investors, an aggregate of 5,500 thousand Forward Purchase Shares and 2,750 thousand Forward Purchase Warrants in consideration for an aggregate purchase price of $55,000, as closed on October 27, 2022.

(c)Movements in all kinds of Perfect Warrants are as follows:

	Public Warrants (units in thousands)	Private Placement Warrants (units in thousands)	Forward Purchase Warrants (units in thousands)
At December 31, 2023	12,750	6,600	1,500
At June 30, 2024	12,750	6,600	1,500

F-14

Index to Financial Statements

(d)Redemption of warrants when the price per Perfect Class A Ordinary Shares equal or exceed $18.00 (in dollars).

Once the warrants become exercisable, the Company may redeem the outstanding warrants (except as described herein with respect to Perfect Private Placement Warrants):

(i) in whole and not in part (ii) at a price of $0.01 (in dollars) per warrant (iii) upon not less than 30 days’ prior written notice of redemption to each warrant holder (the “30-day redemption period”) and (iv) if, and only if, the last reported sale price of the Perfect Class A Ordinary Shares for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders (which the Company refers to as the “Reference Value”) equals or exceeds $18.00 (in dollars) per share.

(e)Redemption of warrants when the price per Class A Ordinary Share equals or exceeds $10.00 (in dollars).

Once the warrants become exercisable, the Company may redeem the outstanding warrants:

(i) in whole and not in part (ii) at $0.10 (in dollars) per warrant upon a minimum of 30 days’ prior written notice of redemption (iii) provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares based on the redemption date and the “fair market value” of Perfect Class A Ordinary Shares (iv) if, and only if, the Reference Value equals or exceeds $10.00 (in dollars) per share and (v) if the Reference Value is less than $18.00 (in dollars) per share, Perfect Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Perfect Public Warrants, as described above.

(f)Private Placement Warrants

The Private Placement Warrants are identical to the Public Warrants and Forward Purchase Warrants except that Private Placement Warrants, so long as they are held by Provident Acquisition Holdings Ltd., (the “Sponsor”) or its permitted transferees, (i) will not be redeemable by the Company (ii) may not (including the Class A Ordinary shares issuable upon exercise of these Private Placement Warrants), subject to certain limited exceptions, be transferred assigned or sold by the holder until 30 days after the completion of the Company’s initial Business Combination (iii) may be exercised by the holders on a cashless basis and (iv) will be entitled to certain registration rights.

If the Private Placement Warrants are held by holders other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same basis as Public Warrants and Forward Purchase Warrants.

6(9)    Other payables

	December 31, 2023		June 30, 2024
Employee bonus	$	4,662	$	5,200
Payroll	2,228		1,532
Remuneration to directors	115		460
Promotional fees	1,090		1,437
Professional service fees	1,415		750
Sales VAT payables	126		205
Post and telecommunications expenses	171		214
Others	524		441
	$	10,331	$	10,239

F-15

Index to Financial Statements

6(10)    Provisions

	Warranty
At December 31, 2023	$	2,394
Additional provisions	287
Used during the period	(850)
Net exchange differences	(56)
At June 30, 2024	$	1,775

Analysis of total provisions:

	December 31, 2023		June 30, 2024
Current	$	2,394	$	1,775

The Group enters into the contract with customers with warranties on services provided. The warranties (loss indemnification) provide customers with assurance that the related services will function as agreed by both parties. Provision for warranty is estimated based on historical warranty data, other known events and management’s judgement. The Group recognizes such expenses within ‘Cost of sales and services’ when related services are provided. Any changes in industry circumstances might affect the provisions. Provisions shall be paid when the payment is actually claimed.

6(11)    Pensions

A.Defined benefit plan

(a)The Group’s subsidiary, Perfect Mobile Corp. (Taiwan), was incorporated in Taiwan, which has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular foreign employees’ service years. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. Perfect Mobile Corp. (Taiwan) contributes to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, Perfect Mobile Corp. (Taiwan) would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, Perfect Mobile Corp. (Taiwan) will make contributions for the deficit by next March.

(b)For the aforementioned pension plan, the Group recognized pension costs of $2 and $2 for the six months ended June 30, 2023 and 2024, respectively.

(c)Expected contributions to the defined benefit pension plans of Perfect Mobile Corp. (Taiwan) for the year ending December 31, 2024 amount to $6.

B.Defined contribution plans

(a)Perfect Mobile Corp. (Taiwan) has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, Perfect Mobile Corp. (Taiwan) contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum when employees retire.

(b)The pension costs under defined contribution pension plan of Perfect Mobile Corp. (Taiwan) for the six months ended June 30, 2023 and 2024 were $265 and $282, respectively.

F-16

Index to Financial Statements

(c)The pension costs under local government law of other foreign subsidiaries for the six months ended June 30, 2023 and 2024 were $121 and $132, respectively.

6(12)    Share-based payment

A.Share Incentive Plan

(a)For the six months ended June 30, 2023 and 2024, the Group’s Share Incentive Plan’s terms and condition are as follows:

Plan	Type of arrangement	Settled by	Maximum terms of option granted	Vesting conditions
Share Incentive Plan	Employee stock options	Equity	Five years	2 years’ service: exercise 50%
				3 years’ service: exercise 75%
				4 years’ service: exercise 100%

(b)Movements of outstanding options under Share Incentive Plan are as follows:

	2023			2024
	No. of options (units in thousands)	Weighted- average exercise price per share (in dollars)		No. of options (units in thousands)	Weighted- average exercise price per share (in dollars)
Options outstanding at January 1	2,063	$	3.95	4,073	$	4.47
Options granted	2,276	4.94		5	2.13
Options forfeited	(67)	4.04		(143)	4.50
Options outstanding at June 30	4,272	4.48		3,935	4.47
Options exercisable at June 30	—			914

(c)As of December 31, 2023 and June 30, 2024, the range of exercise prices of stock options outstanding were $2.43 ~ $7.20 and $2.13 ~ $7.20 (in dollars) per share, respectively; the weighted-average remaining contractual period was 3.06 ~ 4.84 years and 2.56 ~ 4.91 years, respectively.

(d)The fair value of stock options granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Plan	Grant date	Units granted  (in thousands)	Stock price per share (in dollars)		Exercise price per share (in dollars)		Expected price volatility	Expected option life	Expected dividends	Risk-free interest rate	Fair value per unit (in dollars)
Share Incentive Plan	2022.01.21	2,143	$	5.39	$	3.95	53.75%	3.88	0.00%	1.46%	$	2.7637
	2023.01.03	8	7.20		7.20		64.85%	3.87	0.00%	4.07%	3.7198
	2023.05.23	2,260	4.93		4.93		69.15%	3.88	0.00%	3.90%	2.6615
	2023.08.21	7	4.00		3.916		70.65%	3.88	0.00%	4.64%	2.2411
	2023.11.02	5	2.43		2.43		70.37%	3.88	0.00%	4.77%	1.3487
	2024.05.27	5	2.13		2.13		72.67%	3.88	0.00%	4.65%	1.2069

Note i: Stock price, exercise price and fair value of stock option granted on January 21, 2022 were adjusted in connection with the recapitalization. All amounts in the table are presented on a consistent adjusted basis.

Note ii: Expected price volatility is estimated based on the daily historical stock price fluctuation data of the Company and guideline companies of the last five years before the grant date.

F-17

Index to Financial Statements

B.Expenses incurred on share-based payment transactions are shown below:

	Six months ended June 30,
	2023		2024
Equity settled	$	1,441	$	1,437

C.In 2022, the Group has service agreements with its Board of Directors to grant them awards of the Company’s Ordinary Shares at a fixed monetary value. Expense incurred for the six months ended June 30, 2023 and 2024 was $175 and $0, respectively. The fixed monetary value of equity awards of director compensation was paid in cash in the first year, resulting in expenses incurred for the year ended December 31, 2022, being paid in cash. In the future, the Group may compensate directors either entirely in cash or partially in cash and partially in equity.

D.Shareholder Earnout

In connection with the merger transaction in 2022, the Company executed additional capitalization by way of the potential issuance of Earnout Shares for Perfect shareholders. In accordance with Shareholder Earnout terms and conditions contemplated by the Business Combination Agreement, 3,000 thousand, 3,000 thousand and 4,000 thousand of the Shareholder Earnout Shares are issuable if over any 20 trading days within any 30-trading-day period during the Earnout Period when the daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $11.50 (in dollars), $13.00 (in dollars) and $14.50 (in dollars), respectively. None of these conditions had been met in the period up through June 30, 2024.

Shareholder Earnout Shares are considered a potential contingent payment agreement with Shareholders, based on a market condition without link to service. The expense related to these instruments was previously recorded in connection with the merger in 2022.

E.Sponsor Earnout

In connection with the Business Combination Agreement, the Company entered into a Sponsor Letter Agreement pursuant to which it agreed to issue Earnout shares to the Sponsors. Subject to the terms and conditions contemplated by the Sponsor Letter Agreement, upon the occurrence of specific Sponsor Earnout Event (as defined below) from October 28, 2022 to October 28, 2027 (“Earnout Period”), Perfect will issue Perfect Class A Ordinary Shares of up to 1,175,624 Class A Ordinary Shares(the “Sponsor Earnout Promote Shares”) to Sponsor, with (a) 50% of the Sponsor Earnout Promote Shares issuable if over any 20 trading days within any 30-trading-day period during the Earnout Period the daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $11.50 (in dollars), and (b) 50% of the Sponsor Earnout Promote Shares issuable if over any twenty (20) trading days within any 30-trading-day period during the Earnout Period the daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $13.00 (in dollars). None of these conditions had been met in the period up through June 30, 2024.

6(13)    Share capital

A.As of June 30, 2024, the Company’s authorized capital is $82,000 consisting of 700,000 thousand shares of Class A Ordinary Shares, 90,000 thousand shares of Class B Ordinary Shares, 30,000 thousand shares of classes reserved and may determine by Board of Directors. The paid-in capital was $10,185, including 85,060 thousand Class A Ordinary Shares after the retirement of 16,388 thousand treasury shares and 27 thousand shares surrendered by a shareholder, and 16,789 thousand Class B Ordinary Shares. All proceeds from shares issued have been collected.

Perfect Class A Ordinary shares

Perfect Class A Ordinary shares have a par value of $0.1 (in dollars). Amounts received above the par value are recorded as share premium. Each holder of Perfect Class A Ordinary shares will be entitled to one vote per share. Class A Ordinary Shares are listed on NYSE under the trading symbol “PERF”.

F-18

Index to Financial Statements

Perfect Class B Ordinary shares

Perfect Class B Ordinary shares have a par value of $0.1 (in dollars). Perfect Class B Ordinary Shares have the same rights as Perfect Class A Ordinary Shares except for voting and conversion rights. Each Perfect Class B Ordinary Shares is entitled to 10 votes and is convertible into Perfect Class A Ordinary Shares at any time by the holder thereof. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time at the option of the holder thereof. The right to convert shall be exercisable by the holder of the Class B Ordinary Share delivering a written notice to the Company that such holder elects to convert a specified number of Class B Ordinary Shares into Class A Ordinary Shares. Each Class B Ordinary Share shall, automatically and immediately, without any further action from the holder thereof, convert into one Class A Ordinary Share when it ceases being beneficially owned by any of the Principals. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances.

B.Movements for the Company’s share capital are as follows:

	Shares (in thousands)
At December 31, 2023	101,917
Retirement of treasury shares	(68)
At June 30, 2024	101,849

On February 7, 2024, the Company completed the retirement of 68 thousand of Class A Ordinary shares. These retired shares were acquired as part of the share repurchase plan announced on May 4, 2023.

C.Share Repurchase Plan

On May 4, 2023, the Board of Directors approved a share repurchase plan authorizing the Company may repurchase up to $20,000 of its Class A Ordinary shares over the next 12-month period. During this plan, the Company repurchased 259 thousand of Class A Ordinary shares with a total consideration paid amounted $1,064. The Company retired 191 thousand shares repurchased from this plan in 2023 and retired the remaining of 68 thousand shares in 2024.

D.Tender Offer

On November 24, 2023, the Board of Directors approved a tender offer, which commenced on November 27, 2023, and withdrawal rights expired on December 26, 2023, to purchase up to 16,129 thousand shares of Class A Ordinary at a price of $3.10 (in dollars) per share for an aggregate purchase price of approximately $50,000. The Company completed the repurchase, and all the purchased shares were retired on December 29, 2023.

6(14)    Capital surplus

Except as required by the Company’s Articles of Incorporation or Cayman’s law, capital surplus shall not be used for any other purpose but covering accumulated deficit. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

The following tables illustrates the detail of capital surplus:

	December 31, 2023		June 30, 2024
Additional paid-in capital	$	477,734	$	477,415
Other:
Employees’ stock option cost	5,430		6,867
Retirement of treasury shares	27,235		27,371
Subtotal	32,665		34,238
	$	510,399	$	511,653

F-19

Index to Financial Statements

6(15)    Accumulated deficits

Under the Company’s Articles of Incorporation, distribution of earnings would be based on the Company’s operating and capital needs.

6(16)    Revenue

	Six months ended June 30,
	2023		2024
Revenue from contracts with customers	$	24,832	$	28,194

A.Disaggregation of revenue from contracts with customers

(a)The Group derives revenue from the transfer of goods and services over time and at a point in time in the following geographical regions:

Six months ended June 30, 2023	United States		Japan		France		Others		Total
Revenue from external customer contracts	$	11,256	$	2,203	$	1,979	$	9,394	$	24,832
Timing of revenue recognition:
At a point in time	$	794	$	418	$	328	$	1,353	$	2,893
Over time	10,462		1,785		1,651		8,041		21,939
	$	11,256	$	2,203	$	1,979	$	9,394	$	24,832

Six months ended June 30, 2024	United States		Japan		France		Others		Total
Revenue from external customer contracts	$	11,308	$	2,748	$	2,427	$	11,711	$	28,194
Timing of revenue recognition:
At a point in time	$	505	$	575	$	520	$	793	$	2,393
Over time	10,803		2,173		1,907		10,918		25,801
	$	11,308	$	2,748	$	2,427	$	11,711	$	28,194

(b)Alternatively, the disaggregation of revenue could also be distinct as follows:

	Six months ended June 30,
	2023		2024
AR/AI cloud solutions and Subscription	$	21,359	$	25,305
Licensing	2,875		2,288
Advertisement	580		496
Others (Note)	18		105
	$	24,832	$	28,194

Note: Others are immaterial revenue streams to the Group.

(c)The revenue generated from AR/AI cloud solutions was $9,622, and $8,549 for the six months ended June 30, 2023 and 2024, respectively.

B.Contract assets and liabilities

(a)The Group has recognized the following revenue-related contract assets mainly arose from unbilled receivables and contract liabilities mainly arose from sales contracts with receipts from customers in

F-20

Index to Financial Statements

advance. Generally, the contract period is one year, the contract liabilities are reclassified as revenue within the following one year after the balance sheet date.

	December 31, 2023		June 30, 2024
Contract assets:
Unbilled revenue	$	2,770	$	1,543
Contract liabilities:
Advance sales receipts	$	15,346	$	16,858

(b)Revenue recognized that was included in the contract liability balance at the beginning of the period

	Six months ended June 30,
	2023		2024
Revenue recognized that was included in the contract liability balance at the beginning of the period
Advance sales receipts	$	9,763	$	11,877

(c)Unsatisfied contracts

Aggregate amount of the transaction price allocated to contracts that are partially or fully unsatisfied as of December 31, 2023 and June 30, 2024, amounting to $ 28,133 and $ 28,104, respectively. The Group expects that 93% of the transaction price allocated to the unsatisfied contracts as of June 30, 2024, are expected to be recognized as revenue less than one year. The remaining 7% is expected to be recognized as revenue from July 2025 to 2027.

6(17)    Interest income

	Six months ended June 30,
	2023		2024
Interest income from bank deposits	$	2,100	$	2,951
Interest income from financial assets at amortized cost	2,509		990
Others	—		11
	$	4,609	$	3,952

The nature of interest income from financial assets at amortized cost was time deposits with maturities over three months.

6(18)    Other income

	Six months ended June 30,
	2023		2024
Subsidy from government	$	—	$	14
Others	7		—
	$	7	$	14

F-21

Index to Financial Statements

6(19)    Other gains and losses

	Six months ended June 30,
	2023		2024
Foreign exchange losses	$	(215)	$	(337)
Gains (losses) on financial liabilities at fair value through profit or loss	(244)		46
	$	(459)	$	(291)

Please refer to Note 6(8) for details of gains (losses) on financial liabilities at fair value through profit or loss.

6(20)    Finance costs

	Six months ended June 30,
	2023		2024
Interest expense – lease liabilities	$	5	$	10

6(21)    Costs and expenses by nature

	Six months ended June 30,
	2023		2024
Cost of goods sold	$	2	$	11
Employee benefit expenses	13,516		14,479
Promotional fees	4,823		5,611
Platform fees	4,220		5,196
Professional service fees	2,893		2,710
Insurance expenses	1,170		723
Warranty cost	335		287
Depreciation of right-of-use assets	212		250
Depreciation of property, plant and equipment	114		94
Amortization of intangible assets	37		26
Others	1,110		1,392
	$	28,432	$	30,779

6(22)    Employee benefit expenses

	Six months ended June 30,
	2023		2024
Wages and salaries	$	10,425	$	11,107
Remuneration to directors	335		345
Employee insurance fees	685		711
Pension costs	388		416
Employee stock options	1,266		1,437
Other personnel expenses	417		463
	$	13,516	$	14,479

F-22

Index to Financial Statements

6(23)    Income tax

	Six months ended June 30,
	2023		2024
Current income tax:
Current tax expense recognized for the current period	$	63	$	574
Prior year income tax underestimation	—		6
Total current tax	63		580
Deferred income tax:
Origination and reversal of temporary differences	—		(894)
Taxable losses	—		—
Total deferred income tax	—		(894)
Income tax expense (benefit)	$	63	$	(314)

6(24)    Earnings per share

	Six months ended June 30, 2023
	Amount after tax		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$	489	118,248	$	0.004
Dilutive earnings per share
Profit attributable to ordinary shareholders of the Group plus assumed conversion of all dilutive potential ordinary shares	$	489	118,248	$	0.004

	Six months ended June 30, 2024
	Amount after tax		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$	1,394	101,849	$	0.014
Dilutive earnings per share
Profit attributable to ordinary shareholders of the Group plus assumed conversion of all dilutive potential ordinary shares	$	1,394	101,849	$	0.014

Note: Warrant liabilities, Employee stock options, Shareholder Earnout and Sponsor Earnout were excluded from the calculation of diluted earnings per share as they are anti-dilutive for the six months ended June 30, 2023 and 2024. As at December 31, 2023 and June 30, 2024, the potentially dilutive instruments are as follows:

	December 31, 2023	June 30, 2024
Potentially dilutive instruments (shares in thousands)
Warrant liabilities	20,850	20,850
Employee stock options	4,073	3,935
Shareholder Earnout	10,000	10,000
Sponsor Earnout	1,176	1,176
	36,099	35,961

F-23

Index to Financial Statements

6(25)    Changes in liabilities from financing activities

	2024
	Financial liabilities at fair value through profit or loss		Lease liabilities (including current portion)		Liabilities from financing activities-gross
At December 31, 2023	$	1,566	$	868	$	2,434
Changes in cash flow from financing activities	—		(239)		(239)
Change in fair value through profit and loss	(46)		—		(46)
Changes in other non-cash items – additions	—		82		82
At June 30, 2024	$	1,520	$	711	$	2,231

7.    Related Party Transactions

7(1)    Names of related parties and relationship

Names of related parties	Relationship with the Group
CyberLink Corp. (CyberLink)	Other related party (Significant influence (Note) over the Company)
CyberLink Inc. (CyberLink-Japan)	Other related party (Subsidiary of CyberLink)
ClinJeff Corp. (ClinJeff)	Other related party (Major shareholder of CyberLink)

Note: CyberLink owns more than 36% of the Company’s issued and outstanding ordinary shares.

7(2)    Significant related party transactions

A.Revenue

		Six months ended June 30,
	Description	2023		2024
CyberLink	Revenue-others (service revenue)	$	11	$	19

Sales of services are negotiated with related parties based on agreed-upon agreement and the conditions and payment terms are same as third parties.

B.Other payables

	December 31, 2023		June 30, 2024
CyberLink	$	26	$	28
CyberLink-Japan	24		22
	$	50	$	50

Other payables are mainly expenses from professional service, rental and payments on behalf of others.

C.Operating expenses

		Six months ended June 30,
	Description	2023		2024
CyberLink	Management service fee	$	26	$	26

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Index to Financial Statements

CyberLink provides support and assistance in legal services, network infrastructure and equipment maintenance services, marketing activity supports and employee training programs. The service fees are calculated based on the agreed-upon hourly rate. The conditions and payment terms are same as third parties.

D.Lease transactions — lessee/rent expense

(a)The Group leases offices from CyberLink, ClinJeff and CyberLink-Japan. Rental contracts are typically made for periods of 1~2 years. The rents were paid to CyberLink and ClinJeff each month and were paid to CyberLink-Japan each quarter.

(b)Rent expense

	Six months ended June 30,
	2023		2024
CyberLink-Japan	$	44	$	39

(c)Acquisition of right-of-use assets:

	Six months ended June 30,
	2023		2024
CyberLink	$	390	$	—
ClinJeff	—		82
	$	390	$	82

(d)Lease liabilities

i.Outstanding balance:

	December 31, 2023		June 30, 2024
Total lease liabilities	$	381	$	343
Less: Current portion (shown as ‘current lease liabilities’)	(238)		(287)
	$	143	$	56

ii.Interest expense

	Six months ended June 30,
	2023		2024
CyberLink	$	1	$	4

7(3)    Key management compensation

	Six months ended June 30,
	2023		2024
Salaries and other short-term employee benefits	$	1,153	$	1,458
Share-based payment	386		177
Post-employment benefits	5		5
	$	1,544	$	1,640

The unpaid portion of the aforementioned information were $335 and $345 for June 30, 2023 and 2024.

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Index to Financial Statements

8.    Pledged Assets

None.

9.    Significant Contingent Liabilities and Unrecognized Contract Commitments

9(1)    Contingencies

None.

9(2)    Commitments

Except for Notes 6(6), 6(8) and 7(2), there is no other significant commitments.

10.    Significant Disaster Loss

None.

11.    Significant Events After the Balance Sheet Date

None.

12.    Others

12(1)    Capital management

The Group’s objectives of capital management are to ensure the Group’s sustainable operation and to maintain an optimal capital structure to reduce the cost of capital and provide returns for shareholders. In order to maintain or adjust to optimal capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as total liabilities divided by total equity.

As of December 31, 2023 and June 30, 2024, the Group’s gearing ratios are as follows:

	December 31, 2023		June 30, 2024
Total liabilities	$	30,957	$	31,844
Total equity	$	139,406	$	141,986
Gearing ratio	0.22		0.22

12(2)    Financial instruments

A.Financial instruments by category

	December 31, 2023		June 30, 2024
Financial assets
Financial assets at amortized cost
Cash and cash equivalents	$	123,871	$	120,796
Current financial assets at amortized cost	30,300		37,970
Accounts receivable	6,992		7,102
Other receivables	343		737
Guarantee deposits paid	140		147
	$	161,646	$	166,752

F-26

Index to Financial Statements

	December 31, 2023		June 30, 2024
Financial liabilities
Financial liabilities at fair value through profit or loss
Warrant liabilities	$	1,566	$	1,520
Financial liabilities at amortized cost
Other payables (including related parties)	$	10,381	$	10,289
Guarantee deposits received	25		25
	$	10,406	$	10,314
Lease liabilities	$	868	$	711

B.Financial risk management policies

(a)The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance.

(b)Risk management is carried out by the Group’s finance department under policies approved by the management team. The Group’s finance department identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units.

C.Significant financial risks and degrees of financial risks

(a)Market risk

Foreign exchange risk

i.The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, JPY, RMB and EUR. Exchange rate risk arises from future commercial transactions and recognized assets and liabilities.

ii.The Group’s business involves some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: USD; other certain subsidiaries’ functional currency: JPY, RMB and EUR). The information of and sensitivity analysis for significant financial assets and liabilities denominated in foreign currencies illustrate as follows:

	December 31, 2023
								Sensitivity analysis
	Foreign currency amount (in thousands)		Exchange rate	Functional currency		Book value (USD)		Degree of variation	Effect on profit or loss
Financial assets
Monetary items
NTD:USD	$	79,097	0.0326	$	2,579	$	2,579	1%	$	26
EUR:USD	664		1.1064	735		735		1%	7
JPY:USD	317,217		0.0071	2,252		2,252		1%	23
Financial liabilities
Monetary items
EUR:USD	138		1.1064	153		153		1%	2
USD:JPY	168		141.39	23,754		168		1%	2

F-27

Index to Financial Statements

	June 30, 2024
								Sensitivity analysis
	Foreign currency amount (in thousands)		Exchange rate	Functional currency		Book value (USD)		Degree of variation		Effect on profit or loss
Financial assets
Monetary items
NTD:USD	$	41,085	0.0308	$	1,265	$	1,265	1	%	$	13
EUR:USD	172		1.0696	184		184		1	%	2
JPY:USD	432,341		0.0062	2,681		2,681		1	%	27
Financial liabilities
Monetary items
EUR:USD	192		1.0696	205		205		1	%	2
USD:JPY	155		160.88	24,936		155		1	%	2

iii.The total exchange loss, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the six months ended June 30, 2023 and 2024, amounted to $215 and $337, respectively.

(b)Credit risk

i.Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms and the contract cash flow of financial assets at amortized cost.

ii.The Group’s credit risk was mainly arising from bank deposits, trade receivables, other financial assets and deposits. The Company adopted a policy of only dealing with creditworthy counterparties and financial institutions to mitigate the risk of financial loss from defaults. The majority of cash and cash equivalents as well as current financial assets at amortized cost are held with financial institutions with a rating of ‘A’.

iii.The default occurs when the contract payments are past due over 180 days.

iv.The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

v.The following indicators are used to determine whether the credit impairment of accounts receivable has occurred:

(i)It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

(ii)Default or delinquency in principal repayments.

vi.The Group classifies customers’ accounts receivable in accordance with geographic area and credit rating of customer. The Group applies the modified approach to estimate expected credit loss under the provision matrix basis.

F-28

Index to Financial Statements

vii.The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

viii.The Group used the territory economic forecasts to adjust historical and timely information to assess the default possibility of accounts receivable.

ix.The loss amounts of accounts receivable allowance using simplified method were de minimis, thus, the loss was not recognized as at December 31, 2023 and June 30, 2024.

(c)Liquidity risk

i.Cash flow forecasting is performed in the operating entities of the Group and aggregated by the Group’s finance department. The Group’s finance department monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

ii.Surplus cash held by the operating entities over and above balance required for working capital management are managed by the Group’s finance department. The Group’s finance department invests surplus cash in interest bearing current accounts and time deposits, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts. As at December 31, 2023 and June 30, 2024, the Group held demand deposits and time deposits position of $151,847 and $156,584, respectively. The Group manages liquidity risk by ensuring that these balances are available to meet short-term cash needs. Time deposits withdrawn early receive a lower interest rate through the withdrawal date compared to the stated interest rate applicable on the nominal maturity date. However, there are no significant risk of change in value as a result of an early withdrawal for time deposits classified as cash equivalents.

iii.The table below analyses the Group’s non-derivative financial liabilities based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities: December 31, 2023	Less than 1 year		Between 2-5 years		Over 5 years
Financial liabilities at fair value through profit or loss	$	—	$	1,566	$	—
Other payables (including related parties)	10,381		—		—
Lease liabilities (Note)	496		392		—
Guarantee deposits received	—		25		—

Non-derivative financial liabilities: June 30, 2024	Less than 1 year		Between 2-5 years		Over 5 years
Financial liabilities at fair value through profit or loss	$	—	$	1,520	$	—
Other payables (including related parties)	10,289		—		—
Lease liabilities (Note)	535		189		—
Guarantee deposits received	—		25		—

Note: The amount included the interest of estimated future payments.

12(3)    Fair value information

A.The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which

F-29

Index to Financial Statements

transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

B.The carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, current financial assets at amortized cost, accounts receivable, other receivables (including related parties), guarantee deposits paid, accounts payable, other payables (including related parties) and guarantee deposits received) are approximate to their fair values.

C.The related information of financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the liabilities at December 31, 2023 and June 30, 2024 are as follows:

(a)The related information of natures of the liabilities is as follows:

December 31, 2023	Level 1		Level 2		Level 3		Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Compound instrument:
Warrant liabilities	$	954	$	612	$	—	$	1,566

June 30, 2024	Level 1		Level 2		Level 3		Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Compound instrument:
Warrant liabilities	$	922	$	598	$	—	$	1,520

(b)The methods and assumptions the Group used to measure fair value are as follows:

i.Except those mentioned in point (ii) ~ (iii) below, the carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, accounts receivable, other receivables, notes payable, accounts payable and other payables) approximate to their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(2).

ii.Fair value of the Perfect Public Warrants is determined based on market quotation price.

iii.Fair value of the Perfect Private Placement Warrants and Forward Purchase Warrants are determined based on the Perfect Public Warrants with adjustments to the implied volatility.

D.For the year ended December 31, 2023 and six months ended June 30, 2024, there was no transfer between Level 1 and Level 2.

E.For the year ended December 31, 2023 and six months ended June 30, 2024, there was no transfer into or out from Level 3.

F-30

Index to Financial Statements

13.    Segment Information

13(1)    General information

Although the Group has multiple operating segments by geography, the management takes the aggregation criteria outlined in Paragraphs 11 to 14 of IFRS 8 into consideration to decide the reportable operating segments. In light of the qualitative and quantitative criteria, the Group concluded that it has only one reportable operating segment.

13(2)    Geographical information

Geographical information for the six months ended June 30, 2023 and 2024 is as follows:

	Six months ended June 30,
	2023		2024
	Revenue		Revenue
United States	$	11,256	$	11,308
Japan	2,203		2,748
France	1,979		2,427
Others	9,394		11,711
	$	24,832	$	28,194

Geographical information on the revenue shows the location in which sales were generated. Non-current assets amounted to $1,304 and $1,281 as of December 31, 2023 and June 30, 2024, respectively.

Substantially all of the Group’s non-current assets, including property, plant and equipment, right-of-use assets and intangible assets, are located in Taiwan.

13(3)    Major customer information

There is no major customer of the Group (exceed 10% of revenue) for the six months ended June 30, 2023 and 2024.

F-31

EX-99.2

Exhibit 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE PERIOD ENDED JUNE 30, 2024

The following discussion and analysis of financial condition and results of operations (“MD&A”) is dated September 24, 2024 and provides information which the management of Perfect Corp. believes is relevant to an assessment and understanding of the consolidated results of operations and financial condition of Perfect Corp. for the six months ended June 30, 2024 and 2023. This MD&A should be read together with Perfect Corp.’s condensed consolidated interim financial statements and related notes for the six months ended June 30, 2024, which are attached as Exhibit 99.1 to our Form 6-K furnished to the SEC on September 24, 2024 (the “Interim Financial Statements” or “our Interim Financial Statements”), and Perfect Corp.’s audited consolidated financial statements and management’s discussion and analysis for the year ended December 31, 2023, which are included in our annual report on Form 20-F for the year ended December 31, 2023 (the “Annual Report”). In addition to historical financial information, this MD&A contains forward-looking statements based upon current expectations that involve risks, uncertainties and assumptions. For more information about forward-looking statements, see the section entitled “Cautionary Note Regarding Forward-Looking Statements”. Actual results and timing of selected events may differ materially from those anticipated by these forward-looking statements as a result of various factors, including those set forth under the section entitled “Key Factors Affecting Our Results of Operations”. Unless the context otherwise requires, all references in this section to “Perfect,” the “Company,” “we,” “us” and “our” refer to Perfect Corp. and its consolidated subsidiaries. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Annual Report.

Perfect’s annual consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Our Interim Financial Statements have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”. All amounts are in U.S. dollars except as otherwise indicated. For more information about the basis of presentation of Perfect’s consolidated financial statements, see the section entitled “Basis of Presentation.”

Certain figures included in this discussion and analysis have been rounded for ease of presentation. Percentage figures included in this MD&A have not in all cases been calculated on the basis of the rounded figures but on the basis of the amounts prior to rounding. For this reason, percentage amounts in this MD&A may vary slightly from those obtained by performing the same calculations using the figures in Perfect’s consolidated financial statements or in the associated text. Certain other amounts that appear in this MD&A may similarly not sum due to rounding.

Company Overview

Founded in 2015, we are the leading beautiful artificial intelligence (“AI”) Software-as-a-Service (“SaaS”) technology company offering AI- and augmented reality (“AR”)- powered solutions dedicated to making the world beautiful. We operate a hybrid business model of enterprise business (B2B business) and direct consumer business (B2C business). Our platform transforms how brands and consumers interact and create opportunities to connect that were previously unimaginable. With our cutting-edge, hyper-realistic virtual try-on solutions, we are transforming the traditional online and in-store shopping journey by creating instant, seamless and engaging omni-channel shopping experiences.

For our B2B business, we offer AI- and AR- powered solutions tailored to the beauty and fashion industry. We empower beauty, skincare clinics, med spa, jewelry, fashion brands and retailers by providing subscription-based tech modules that enable them to offer beauty product virtual try-on experiences to their end consumers across multiple channels and product groups. As of June 30, 2024, our cumulative customer base includes 686 brands, including global industry leaders such as Estée Lauder Group, LVMH Group, COTY Group and Shiseido Group, with over 774,000 digital stock keeping units (“SKUs”) for makeup,

1

hairstyles, haircare, skincare, eyewear, and jewelry products, and over 10 billion virtual product try-ons annually. We have 151 Key Customers within our customer base as of June 30, 2024.1.

For our B2C business, we primarily offer five mobile apps under the “YouCam” suite and online services featuring AI- and AR- technologies. The flagship mobile apps, YouCam Makeup, YouCam Perfect, YouCam Video, YouCam Enhance and YouCam AI Pro, along with online editing services YouCam Online Editor provide users with virtual try-ons, beauty camera / portrait retouching, photo / video enhancement / editing features and Generative AI features for selfies, avatars and generative imaging. These apps and online services, powered by our AI- and AR-technologies, have attracted a growing number of active subscribers, reaching over 919,000 active subscribers as of June 30, 2024, up from over 879,000 active subscribers as of December 31, 2023. Our B2C business also provides us with a unique opportunity to pilot our latest AI- and AR-innovations directly in the end consumer market, which may, in turn, benefit our B2B business.

We have achieved significant scale and steady growth since our inception in 2015. Our total revenue increased to $28.2 million for the six months ended June 30, 2024, up from $24.8 million for the same period in 2023. This increase is primarily driven by the growth of our AI- and AR- powered cloud solutions, increased subscription revenue, and rapid advancements in AI- and AR- technologies. We recorded a net income of $1.4 million for the six months ended June 30, 2024, compared with a net income of $0.5 million for the six months ended June 30, 2023, primarily due to our continued revenue growth. Our momentum in acquiring new brands customers remains solid, growing to 686 cumulative brands as of June 30, 2024, from 645 cumulative brands as of December 31, 2023. As we grow and continue to expand our product offerings, we expect to significantly increase our brand presence and provide a comprehensive suite of products that extends beyond the beauty and fashion industries.

Key Factors Affecting Our Results of Operations

Our results of operations are affected by the following factors:

Overall adoption rate of AI- and AR-technologies in beauty and fashion industries

Our results of operations are affected by the overall growth and adoption of AI- and AR-technologies in the beauty and fashion industries, which are, in turn, affected by customer demand for these technologies and the pace of brands’ digital transformation. Any changes or innovations in the beauty and fashion industries and our ability to adapt to such changes or innovations promptly could affect our business and results of operation.

Despite the rapid pace of digital transformation in recent years, the adoption of AI- andAR- technologies among beauty and fashion brands and retailers remains relatively low. We see significant opportunities to advance the digitization and proliferation of AI- and AR-solutions in the beauty and fashion industries. We believe that, with our unique technological capabilities and extensive collection of training data sets from over 10 billion real-life try-ons annually, we can strengthen our market leadership in the beauty AI- and AR-SaaS industry and drive adoption of AI- andAR- technologies among beauty and fashion brands and retailers.

Overall adoption rate of our premium mobile app subscriptions

Our results of operations are affected by the overall growth and renewal of the premium subscription versions within our YouCam suite. We observe significant opportunities for growth in mobile app monetization through the rollout of new apps and the enhancement of our premium features to convert free users into paying customers. With the latest Generative AI technologies unlocking a new wave of visual

1 “Key Customer” refers to the Company’s brand customers who contributed revenue of more than $50,000 in the trailing 12 months ended on the measurement date.

2

creation capabilities, we observe a steady demand from end users integrating these paid apps into their daily digital lifestyles.

Our ability to monetize our services

We offer a diverse range of AI- and AR- powered solutions, including virtual try-ons for makeup, nail art, hairstyles, beard dye and styling, eyewear, and jewelry, advanced skin diagnostic technology, foundation shade finder and our interactive platform. Our solutions can be deployed across various channels and platforms, including brand-owned channels, such as brands’ official mobile apps and websites, in-store kiosks, as well as leading third-party platforms, including Alphabet (Google and YouTube), Snap, WeChat, Douyin and Alibaba (Taobao and Tmall).

We are able to provide customized solutions tailored to each brand. For details of our products and services, see “Item 4. Information on the Company – B. Business — Overview – Our Business” of the Annual Report. For details of revenue recognition of our products and services, see “— Components of Results of Operations — Revenue” of the MD&A and Note 4 “Summary of Significant Accounting Policies” to our Interim Financial Statements. The following table sets forth a breakdown of our revenue for the periods indicated based on the types of customers:

	Six months ended June 30,
	2023		2024
	US$’000	% of total revenue	US$’000	% of total revenue
Revenue from brands	12,503	50.4%	10,865	38.5%
Revenue from Key Customers(1)	11,912	48.0%	9,775	34.6%
Revenue from non-Key Customer brands(2)	591	2.4%	1,090	3.9%
Revenue from mobile apps subscribers	11,737	47.3%	16,756	59.4%
Revenue from advertisement network service providers	580	2.3%	496	1.8%
Others	12	0.0%	77	0.3%
Total revenue	24,832	100%	28,194	100%

Notes:

(1)    Represents 95.3% and 90.0% of our revenue from brands for the six months ended June 30, 2023 and 2024, respectively.

(2)    Represents 4.7% and 10.0% of our revenue from brands for the six months ended June 30, 2023 and 2024, respectively.

Our ability to increase revenue from B2B business depends in part on retaining our existing brand customers and expanding their use of our services. In managing our B2B business, our management vigilantly monitors the revenue contribution from our Key Customers, as these metric provide reliable insights into the growth of our B2B business, due to the following reasons: (i) revenue from Key Customers accounted for approximately 48.0% and 34.6% of our total revenue for the six months ended June 30, 2023 and 2024, respectively; and (ii) revenue from Key Customers represented 95.3% and 90.0% of our total revenue from brands for the six months ended June 30, 2023 and 2024, respectively.

3

As we strengthen long-term relationships with existing brands, we aim to increase the average recurring fees per brand through a combination of cross-selling across sister brands, geographies and verticals of beauty and luxury groups, and upselling incremental SKUs, modules and functions to beauty brands. We believe the stickiness and scalability of our platform well positions us to capture this monetization opportunity.

In addition to the Key Customers, which are major brand customers, we also generate revenue from other customers. Revenue from non-Key Customers contributed 2.4% and 3.9% of our total revenue as of June 30, 2023 and 2024, respectively. Such non-Key Customers primarily include non-Key Customer brands, consumers subscribing for premium value-added functions in our mobile apps and advertisement network service providers that display advertisements in our mobile apps.

Our ability to generate revenues from our B2C business primarily depends on our ability to retain current paying subscribers and convert free app users into paying subscribers. Since 2022, our mobile app business has experienced significant growth due to the adoption of the following multifaceted approach. Firstly, our freemium model of YouCam apps attracts users to download and explore various features, while we continuously introduced and upgraded premium features, enticing free app users to subscribing for our services and retaining our existing subscribers. Secondly, we bolstered our cross-promotion efforts among our YouCam suite of mobile apps and executed strategic marketing campaigns such as search engine optimization (SEO) to strengthen our brand recognition. Thirdly, by continuously introducing new mobile apps within YouCam suite into the market, we expanded our avenues for monetization. Fourthly, we skillfully increased subscription prices while maintaining competitiveness. Lastly, our subscriber base grew as more users opt in. These combined efforts fueled our B2C business’s impressive growth.

We manage our B2C business by closely monitoring metrics such as MAUs and monthly active subscribers, and benchmark against the product ratings and functionalities of our primary mobile app competitors, so that we can identify which features are key drivers for converting free app users into paying subscribers. We observed a steady growth in our average monthly active subscribers from approximately 705 thousand as of June 30, 2023 to approximately 903 thousand as of June 30, 2024, primarily driven by the sustained demand for our YouCam mobile beauty app services from subscribers. This increase in subscribers not only reflected our successful efforts in converting free app users to paying subscribers, but also highlights our ability to monetize our mobile app services. The following table sets forth our average MAUs and average monthly active subscribers of our mobile apps for the periods indicated:

	Six months ended June 30,
	2023	2024
Average MAUs (in millions)	14.4	11.9
Average monthly active subscribers (in thousands)(1)	705	903

Note:

(1)    Monthly active subscribers refer to paying users who subscribe to our mobile apps’ premium functions and maintain an active subscription at the end of the measured month.

We also generated advertisement revenue from advertisement network service providers that display advertisements in our mobile apps. The advertisement revenue is being gradually phased out over the past two years, as it is no longer a core component of our revenue strategy for mobile apps. Our primary focus has shifted towards a premium subscription model rather than monetization through the display of third-party advertisements via advertisement network service providers.

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Our primary business strategies at current stage focus on strengthening our market leadership in providing AI- and AR-SaaS solutions to brand customers and expanding the distribution and monetization of mobile apps to individual consumers. We plan to distribute resources evenly between developing our premium mobile apps for individual customers and enhancing our SaaS offering for brand customers. Conversely, we will progressively allocate fewer resources to our traditional advertisement services, and consequently, our revenue from advertisement network service providers will become increasingly insignificant in proportion to our total revenue in the foreseeable future.

Our ability to expand into new verticals and grow our brand base.

Our vision is to transform the world with digital tech innovations that make the world more beautiful, by partnering with both global beauty and luxury groups and indie brands. We see significant growth opportunities among indie beauty brands, and we are committed to continuing providing them with seamless and user-friendly solutions, recognizing that capturing this brand base is crucial for driving the future growth of our own brand base.

Leveraging our extensive industry and technology expertise, along with our broad customer network that we have established in the beauty AI- and AR-SaaS industry, we aim to further expand our product offering into complementary categories and broaden our product portfolio beyond beauty to further grow our brand base. We have already made inroads into luxury and fashion industries, including jewelry, eyewear, watches, and accessories, and now are exploring opportunities beyond fashion industry, such as solutions for hair salons, med-spa and aesthetic non-surgical beauty treatments. Some of these services have already been in place, and we are actively engaging with various businesses in these areas.

We are uniquely positioned to integrate our industry-leading facial solutions with these new categories. For example, with respect to jewelry, we can provide a solution which enables consumers to virtually try on earrings, watches, rings and bracelets with virtual makeup applied at the same time This capability is challenging for a jewelry AI- and AR-vendor to replicate given the complexity of AI- and AR-makeup. Ultimately, our goal is to expand our product offerings, achieve widespread adoption, and provide a comprehensive suite of products that extends beyond the beauty and fashion industries.

Our ability to manage and improve operating efficiency

Our results of operations partly depend on our ability to effectively manage our costs and expenses. As we scale our business and advance our technology, we anticipate that marginal operating costs and expenses may decrease. We expect our customer acquisition efforts to benefit from our strong brand recognition and word-of-mouth referrals as we expand our brand customer base.

Our continued investment in technology also contributes to the increase of operational efficiency, enabling the same number of employees to deliver higher productivity over time. In addition, we believe that we will continue to benefit from economies of scale as we continue to actively manage the level of our general and administrative expenses. Certain expenses, such as the professional advisors’ fees in connection with our ongoing reporting obligations as a public company, however, may negatively affect our profitability in the next few years.

Our people and technology

We are committed to investing in our people and technology, as these are essential for delivering innovative solutions and services that meet our customer needs, expanding our customer base, and maintaining our market leadership in the beauty AI- and AR-SaaS industry.

We have invested considerable resources in our people. We recruit talents from renowned universities and academic institutions across various regions. We have built up a comprehensive talent development program that includes diverse training programs featuring lectures, senior experience sharing, study groups,

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and participation in conferences and external forums. We also foster a working environment that motivates employees to raise questions and adopts a problem-solving mindset. Our ultimate goal is to retain these talents in the long term and turn them into valuable asset for our business success.

We have also invested a substantial portion of our resources in technology development, recognizing it as the cornerstone of our business success. By collaborating with prestigious universities and research labs, we bring emerging talents and cutting-edge technologies from academic institutions to our Company, bridging the gap between academic research and commercial application. This collaboration offers us unique opportunities to access innovative ideas and latest technology developments at an early stage, allowing us for proactive planning. Additionally, we are committed to continually improving and upgrading our technologies to ensure the highest quality to our customers. We believe these efforts are crucial to our business, as the success of our AI- and AR-powered solutions relies on technology that provides exceptional accuracy, scalability, and performance.

Basis of Presentation

Our Interim Financial Statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". All intercompany accounts and transactions have been eliminated on consolidation. For the purposes of presenting the Interim Financial Statements, our assets and liabilities and our foreign operations (including subsidiaries in other countries that use currencies which are different from our functional currency) are translated into U.S. dollarsusing exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences, if any, are recognized in other comprehensive income and accumulated in equity.

Components of Results of Operations

Revenue

Our revenue sources include three major components: AI- and AR- cloud solutions and subscription, licensing and advertisement. We would anticipate the revenue contribution from licensing and advertisement becoming increasingly insignificant, as we progressively allocate fewer resources to these areas and instead focus on strengthening our market leadership to provide AI- and AR- SaaS subscription solutions for brand customers and individual customers.

(1)AI- and AR- cloud solutions and subscription

For AI- and AR- cloud solutions and subscription, we provide online cloud-based services to our customers, primarily including virtual try-on solutions for our brand customers and app premium subscriptions for our individual customers.

Our typical contract terms with brand customers range from three months to several years, with one-year term being the most common. Our contract terms are determined based on the following considerations: (1) the functionality of the subscribed modules (e.g., makeup, skincare, hair, nail); (2) the duration of the service; (3) the geographical coverage, such as the number of countries / regions for module deployment or the number of website domains for integration into our module; (4) the maximum number of SKUs that a brand can utilize at the same time; and (5) any additional manpower hours required for customization, if any.

Furthermore, depending on the nature of the services provided, the charges of brand customers can be further divided to one-time fees, recurring fees, or a combination of both. One-time fees are made up of service setup fee, customization fee, and console base fee, which allow brands to create a brand console account on our platform for uploading and managing SKUs. Recurring fees are related to granting

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customers access to the modules throughout the contract period. These fees are recurring as the service is time-limited and scope-limited, requiring renewal upon the expiration of the service term.

In terms of the premium value-added features in our mobile apps to which individual customers subscribe through Apple App Store and Google Play, we currently offer monthly and yearly subscription plans. The pricing of such premium services varies by country. We recognize revenue from such services based on the fulfilled contract obligations for each month.

(2)Licensing

We collect licensing fees from (1) licensing self-developed technologies, which include offline SDK and AI- and AR- offline solutions to brand customers, and (2) licensing customized mobile apps designed and created based on customers’ specifications that do not require continuous support from our backend cloud computing infrastructure. In this scenario, the mobile apps are operated by customers on their own infrastructure, with no additional supporting services required from us after delivery to customers.

Furthermore, depending on the type of the licensing services provided, brand customers may elect to renew licensing agreements with us, as the right to use our intellectual property is only granted to them for a specific period. We collect recurring revenue from the renewal of licensing agreements by customers. We generate recurring revenue from renewals of these licensing agreements by customers.

(3)Advertisement

Advertisement revenue is generated from the advertisements displayed by advertisement network service providers in our apps. The consideration of such service is determined based on the frequency of click or impression of the advertisement, which should be treated as a variable consideration. The typical contract term is for one month. The numbers of advertisements are delivered and the associated fees are tracked on a daily basis, and we recognize revenue on a monthly basis based on the daily collected information.

For further details on our revenue recognition, see Note 4 “Summary of Significant Accounting Policies” to our Interim Financial Statements.

Cost of Sales and Services

Our cost of sales and services primarily consists of kiosk hardware cost, certain research and development personnel-related expenses allocated to cost of sales and services which are directly related to revenue and services activities, warranty provision as well as third-party payment processing fees for distribution partners such as Google and Apple. We expect that our cost of sales and services will increase in absolute dollars in tandemwith the growth of our businesses in the foreseeable future, as we continue to invest and broaden our product offerings and scale up our business operations.

Sales and Marketing Expenses

Our sales and marketing expenses consist of personnel-related expenses for salaries, employee benefits, and stock-based compensation for employees engaged in sales and marketing, advertising and promotional fees, cloud-hosting fees as well as allocated facilities and information technology costs. We plan to continue to invest in sales and marketing to grow our customer base and increase our brand awareness. As such, we expect sales and marketing expenses to increase in absolute dollars. In the near term, we anticipate fluctuations in sales and marketing expenses as a percentage of revenue due to our investments in accelerating market adoption of our AI- and AR-technologies, while we expect the sales and marketing expenses to decrease in the long term as we achieve and benefit from greater scale.

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General and Administrative Expenses

Our general and administrative expenses primarily consist of personnel-related expenses for employees involved in general corporate operations, including administration, legal, human resources, accounting and finance. Personnel-related expenses primarily include salaries, benefits, and share-based compensation. In addition, general and administrative expenses also include allocated facilities costs, such as rent, depreciation expenses, professional service fees and other general corporate expenses.

Furthermore, we have incurred and expect to further incur expenses as a result of becoming a public company since October 2022, including costs for complying with the rules and regulations applicable to companies listed on a national securities exchange, costs related to compliance and reporting obligations, and increased expenses for insurance, investor relations, and professional services. We expect that our general and administrative expenses will increase in absolute dollars as we scale up our business operations.

Research and Development Expenses

Our research and development expenses primarily consist of salaries and benefits, including share-based compensation, for our technology and product development personnel, and depreciation and other associated corporate costs.

We expect our research and development expenses to increase in the future as we expand our team of technology and product development professionals and continue to invest in technology infrastructure and innovative AI- and AR-solutions to enhance and broaden our product offerings.

Interest Income

Our interest income primarily consists of interests earned on bank deposits and financial assets at amortized costs.

Other Income

Our other income primarily consists of subsidies from local government and VAT adjustments. We do not expect material subsidies from local government in the foreseeable future.

Other Gains and Losses

Our other gains and losses primarily consist of losses on financial liabilities at fair value through profit or loss (“FVTPL”) and foreign exchange gains and losses. The FVTPL is primarily associated with our outstanding warrants.

Finance Costs

Our finance costs primarily consist of interest expenses on our lease liabilities.

Income Tax Benefit (Expense)

Our income tax expense primarily consists of current income tax expenses. As a global company, we are subject to income taxes in the jurisdictions where we do business. These foreign jurisdictions have different statutory tax rates. Accordingly, our effective tax rate will vary depending on the relative proportion of income derived in each jurisdiction, use of tax credits, changes in the valuation of our deferred tax assets and liabilities as well as changes in tax laws. Currently, the applicable tax rate in our headquarters in Taiwan is 20% while the tax rate for unappropriated earnings is 5%.

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Results of Operations

Our results of operations for the six months ended June 30, 2023 and 2024 are presented below:

	Six months ended June 30,
($ in thousands)	2023		2024
Revenue	$	24,832	$	28,194
Cost of sales and services	(5,024)		(5,971)
Gross profit	19,808		22,223
Operating expenses
Sales and marketing expenses	(12,585)		(14,184)
General and administrative expenses	(5,427)		(4,614)
Research and development expenses	(5,396)		(6,010)
Total operating expenses	(23,408)		(24,808)
Operating loss	(3,600)		(2,585)
Non-operating income and expenses
Interest income	4,609		3,952
Other income	7		14
Other gains and losses	(459)		(291)
Finance costs	(5)		(10)
Total non-operating income and expenses	4,152		3,665
Income before income tax	552		1,080
Income tax benefit (expense)	(63)		314
Net income	$	489	$	1,394

Comparison of Six Months Ended June 30, 2023 to Six Months Ended June 30, 2024

Revenue

Total revenue increased by $3.4 million, or 13.5%, from $24.8 million for the six months ended June 30, 2023 to $28.2 million for the six months ended June 30, 2024. The steady increase was primarily attributable to an increase by 18.5% of our revenue generated from AI- and AR- cloud solutions and subscription from $21.4 million for thesix months ended June 30, 2023 to $25.3 million for the same period in 2024, which was primarily driven by the stable demand for our online virtual product try-on solutions from brand customers and robust growth momentum in our mobile beauty app subscriptions. However, such increase was offset by (i) the decrease by 20.4% of our licensing revenue, from $2.9 million for the six months ended June 30, 2023 to $2.3 million for the same period in 2024, and (ii) the decrease of our advertisement revenue from $0.6 million for the six months ended June 30, 2023 to $0.5 million for the same period in 2024, as a result of our strategy of allocating less resources to licensing services and advertisement services. We expect the licensing revenue and advertisement revenue will become increasingly insignificant, as we continue to focus on strengthening our market leadership to provide AI- and AR- SaaS subscription solutions for our brand customers and individual customers.

With respect to geographical contribution, revenue from the United States remains stable for the six months ended June 30, 2024, compared to the same period in 2023, being$11.3 million, revenue from Japan has increased by 24.7% from $2.2 million for the six months ended June 30, 2023 to $2.7 million for the same period in 2024, and revenue from France has increased by 22.6% from $2.0 million for thesix

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months ended June 30, 2023 to $2.4 million for the same period in 2024. Revenue outside of these three major countries have grown by 24.7% from $9.4 million for the six months ended June 30, 2023 to $11.8 million for the same period in 2024.

Cost of Sales and Services

Cost of sales and services increased by $1.0 million, or 18.8%, from $5.0 million for the six months ended June 30, 2023 to $5.9 million for the six months ended June 30, 2024. The increase was primarily due to the increase in payment processing fees paid to third-party digital distribution platforms such as Apple App Store and Google Play resulting from the increase in our mobile app subscription revenue.

Gross Profit

Gross profit increased by $2.4 million, or 12.2%, from $19.8 million for the six months ended June 30, 2023 to $22.2 million for the six months ended June 30, 2024. Despite the continuous increase in gross profit, our gross margin slightly decreased by 1.0% from 79.8% for the six months ended June 30, 2023 to 78.8% for the six months ended June 30, 2024. The slight decrease in gross margin was primarily due to the sustained increase in third-party payment processing fees paid to digital distribution partners such as Google and Apple related to the growth in our mobile app subscription revenue.

Total Operating Expenses

Total operating expenses increased by $1.4 million, or 6.0%, from $23.4 million for the six months ended June 30, 2023 to $24.8 million for the six months ended June 30, 2024. The increase was primarily associated with higher sales and marketing expenses and research and development expenses, which were partially offset by a slight decline in general and administrative expenses.

Sales and Marketing Expenses

Sales and marketing expenses increased by $1.6 million, or 12.7%, from $12.6 million for the six months ended June 30, 2023 to $14.2 million for the six months ended June 30, 2024. The increase was primarily due to the increase in marketing events and advertising costs for our mobile apps and cloud computing costs.

General and Administrative Expenses

General and administrative expenses decreased by $0.8 million, or 15.0%, from $5.4 million for the six months ended June 30, 2023 to $4.6 million for the six months ended June 30, 2024. The decrease was primarily due to lower corporate expenses and enhanced operational efficiencies.

Research and Development Expenses

Research and development expenses increased by $0.6 million, or 11.4%, from $5.4 million for the six months ended June 30, 2023 to $6.0 million for the six months ended June 30, 2024. The increase was primarily due to the increase of our research and development headcount and related personnel costs.

Total Non-operating income and expenses

Total non-operating income and expenses decreased by $0.5 million, or 11.7%, from $4.2 million for the six months ended June 30, 2023 to $3.7 million for the six months ended June 30, 2024. The increase was primarily due to the decrease of interest income and other gains and losses.

Interest Income

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Interest income decreased by $0.7 million, or 14.3%, from $4.6 million for the six months ended June 30, 2023 to $4.0 million for the six months ended June 30, 2024. The decrease was primarily attributable to reduced balance of time deposits, which were used to purchase the 16,129,010 Class A ordinary shares, at a price of $3.10 per share, that are validly tendered and not properly withdrawn by the shareholders before December 26, 2023, in an aggregate amount of approximately $50.0 million (excluding fees relating to the tender offer), pursuant to the tender offer launched by the Company on November 27, 2023.

Other Gains and Losses

Other gains and losses decreased by $0.2 million for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023.

Net Income

As a result of the foregoing, our net income for the six months ended June 30, 2024 was $1.4 million, compared to $0.5 million for the six months ended June 30, 2023.

Adjusted Net Income (Non-IFRS)

Our adjusted net income was $2.8 million for the six months ended June 30, 2024, compared to adjusted net income of $2.2 million in the same period of 2023. See “— Use of Non-IFRS Financial Measures” below for more information.

Use of Non-IFRS Financial Measures

In addition to the measures presented in our consolidated financial statements, we use certain non-IFRS financial measures, including adjusted net income (loss), as supplemental metrics in reviewing and assessing our operating performance and formulating our business plan. We define these non-IFRS financial measures as follows:

Adjusted net income (loss) is defined as net income (loss) excluding one-off transaction costs2, non-cash equity-based compensation, and non-cash valuation (gain)/loss of financial liabilities. Starting from the first quarter of 2024, we no longer exclude foreign exchange (gain)/loss from adjusted net income (loss). As we transitioned to using the U.S. dollar as the functional currency for certain subsidiaries in 2023, our foreign exchange (gain)/loss, which historically have predominantly been unrealized, have not been material since 2023. The majority of the above-mentioned adjustments relate to items in zero tax jurisdictions. With respect to non-zero tax jurisdictions, any related deferred tax assets do not qualify for recognition because of the cumulative losses. Hence, none of the adjusted net income (loss) for the six months ended June 30, 2023 and 2024 was subject to income tax effects. For a reconciliation of adjusted net income (loss) to net income (loss), please see the following reconciliation table.

2 The one-off transaction cost in the first half of 2023 included professional services expenditures that the Company incurred in connection with the de-SPAC transaction. No such cost was incurred in the same period of 2024.

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	Six months ended June 30,
($ in thousands)	2023		2024
Net Income	$	489	$	1,394
One-off Transaction Costs	33		—
Non-Cash Equity-Based Compensation	1,441		1,437
Non-Cash Valuation (Gain)/Loss of Financial Liabilities	244		(46)
Adjusted Net Income (Loss)3	$	2,207	$	2,785

Non-IFRS financial measures are not defined under IFRS and are not presented in accordance with IFRS. Non-IFRS financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of the non-IFRS financial measures. In addition, the non-IFRS financial measures Perfect uses may differ from the non-IFRS measures used by other companies, including peer companies, and therefore their comparability may be limited. The presentation of these non-IFRS financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with IFRS. The items excluded from our adjusted net income (loss) are not driven by core results of operations and render comparison of IFRS financial measures with prior periods less meaningful. We believe adjusted net income (loss) provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, such non-IFRS measures are used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Liquidity and Capital Resources

Since inception, we have financed our operations mainly through equity contributions from our shareholders and payments received from our customers. As of June 30, 2024, we had cash and cash equivalents of $120.8 million, which primarily consisted of checking accounts, demand deposits and time deposits. Our cash and cash equivalents are primarily denominated in U.S. dollars, and we do not currently enter into any hedging arrangements. In addition, we have 6-month time deposits of $38.0 million classified as current financial assets at amortized cost according to IFRS and we do not have any loan and bank borrowings as of the same date. Our net income increased from $0.5 million for the six months ended June 30, 2023 to $1.4 million for the six months ended June 30, 2024, primarily due to the Company’s continued revenue growth and effective cost control.

We believe that our cash and cash equivalents, including the cash we obtained from the Business Combination, and our credit facilities will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months from the date of this MD&A and sufficient to fund our operations. As of the date of this MD&A, there has been no material change to our liquidity position since December 31, 2023. To the extent that our current resources are insufficient to satisfy our cash requirements in the future, we may need to seek additional equity or debt financing. If the financing is not available, or if the terms of financing are less desirable than we expect, we may be forced to decrease our level of investment in product development or we may delay, scale back or abandon all or part of our growth strategy, which could have an adverse impact on our business and financial prospects.

3 In accordance with the changed definition of “adjusted net income (loss)” that is detailed in the “Use of Non-IFRS Financial Measures” section above, we have made a retrospective adjustment to our adjusted net income for the six months ended June 30, 2023 not adjusting for “foreign exchange gain (loss)” (which amounted to a loss of $215,000 for the period, as previously disclosed in our Form 6-K furnished to the SEC on July 25, 2023).

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Our cash requirements for the six months ended June 30, 2024 and any subsequent interim period primarily include our capital expenditure, lease obligations, contractual obligations and other commitments. Our capital expenditures are primarily related to purchase ofcertain servers in our ordinary course of business and ERP system upgrade, which has been immaterial from a dollar amount perspective. From January 1, 2024 through June 30, 2024, we incurred capital expenditure of less than $0.3 million. Our lease obligations consist of the commitments under the rental agreements for our office premises. Our contractual obligations primarily consist of minimum commitments for marketing activities. From a dollar amount perspective, both lease obligations and contractual obligations have been immaterial. In addition, we will consume cash for additional expenses as a public company for, among other things, directors’ and officers’ liability insurance, director fees and additional internal and external accounting, legal and administrative resources, including increased audit and legal fees. We expect these items to be the primary part of our short-term cash requirements, and we currently do not expect any material capital expenditures in the foreseeable future. Furthermore, as part of our growth strategy, we have plans to further invest in research and development, develop new AI- and AR-solutions, broaden our customer bases in the beauty industry, and expand into synergistic categories like skin and fashion solutions. These new developments and expansions may generate long-term cash requirements. We intend to continue to fund our future material cash requirements with net proceeds in connection with our Business Combination, equity contributions from our shareholders and payments received from our customers. We will continue to make cash commitments, including capital expenditures, to support the growth of our business.

On October 28, 2022, we completed the Business Combination. In connection with the Business Combination, holders of 21,651,203 Provident Class A Ordinary Shares, or 94.14% of the shares with redemption rights, exercised their right to redeem their shares for cash. Given a significant number of Provident shareholders elected to redeem their shares prior to the consummation of the Business Combination, our gross proceeds from the Business Combination accordingly reduced compared to a no redemption scenario. Nevertheless, we raised $105 million from PIPE Investors and FPA Investors, which, together with the proceeds from non-redeeming Provident shareholders, amounted to $119 million in gross proceeds, and added $113 million in net proceeds to our balance sheet.

We would receive the proceeds from any exercise of any outstanding Warrants that are exercised for cash pursuant to their terms. Assuming the exercise for cash of all of the 20,849,975 Warrants, consisting of 11,499,975 Perfect Public Warrants, 6,600,000 Perfect Private Placement Warrants and 2,750,000 Perfect Forward Purchase Warrants, we would receive an aggregate of approximately $239.8 million, but would not receive any proceeds from the resale of Class A Ordinary Shares issuable upon such exercise We will have broad discretion over the use of proceeds from the exercise of these Warrants. To the extent that any of these Warrants are exercised on a “cashless basis,” the amount of cash we would receive from the exercise of these Warrants will decrease. Any proceeds from the exercise of the Warrants would increase our liquidity, but our ability to fund our operations is not dependent upon receipt of cash proceeds from the exercise of the Warrants.

There is no assurance that our Warrants will be in the money prior to their expiration or that the holders of the Warrants will elect to exercise any or all of such Warrants. The likelihood that Warrant holders will exercise their Warrants, and therefore any cash proceeds that we may receive in relation to the exercise of the issued and outstanding Warrants, will be dependent on the trading price of our Class A Ordinary Shares. If the market price for our Class A Ordinary Shares is less than the exercise price of our Warrants, which is $11.50 per share, we believe Warrant holders will be unlikely to exercise their Warrants. As the closing price of our Class A Ordinary Shares was $2.01 as of September 24, 2024, we believe that holders of the Warrants are currently unlikely to exercise their Warrants. Accordingly, we do not expect to rely on the cash exercise of Warrants to fund our operations.

On October 18, 2023, the SEC declared effective a registration statement on Form F-3, under which the selling securityholders identified therein or their permitted transferees may offer and sell, from time to time, up to 38,542,254 Class A Ordinary Shares, 9,350,000 Warrants and 9,350,000 Class A Ordinary Shares underlying such Warrants. Given the substantial number of Class A Ordinary Shares registered for potential resale by the selling securityholders, the sale of shares by the selling securityholders, or the

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perception in the market that the selling securityholders holding a large number of shares intend to sell their shares, could increase the volatility of the market price of our Class A Ordinary Shares or result in a significant decline in the public trading price of our Class A Ordinary Shares. These sales, or the possibility that these sales may occur, and any related volatility or decrease in market price of our Class A Ordinary Shares and Warrants, might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate.

Cash Flows Summary

Presented below is a summary of our operating, investing, and financing cash flows:

	Six months ended June 30,
($ in thousands)	2023		2024
Cash flows from (used in) operating activities	$	6,449	$	5,518
Cash flows from (used in) investing activities	(131,003)		(7,943)
Cash flows from (used in) financing activities	(632)		(239)
Effects of exchange rates changes on cash and cash equivalents	(262)		(411)
Net increase (decrease) in cash and cash equivalents	$	(125,448)	$	(3,075)

Cash Flows Generated from (Used in) Operating Activities

Cash flows generated from or used in operating activities primarily relate to the collection of accounts receivables, payment of provision and payables, net interest received and income tax paid. Our business primarily operates in a prepaid service subscription model, enabling us to collect cash in advance upon the signing of contract and then deliver services pursuant to terms of contract.

Net cash generated from operating activities decreased by $0.9million, or 14.4%, from $6.4 million for the six months ended June 30, 2023 to $5.5 million for the six months ended June 30, 2024. This change was primarily due to less interests received compared to the same period in 2023.

Cash Flows Generated from (Used in) Investing Activities

Cash flows generated from or used in investing activities primarily relates to acquisition of financial assets, proceeds from disposal of financial assets, acquisition of property, plant and equipment, acquisition of intangible assets, and changes in guarantee deposits paid.

Net cash used in investing activities was $7.9 million for the six months ended June 30, 2024 and net cash used in investing activities was $131.0 million for the six months ended June 30, 2023. The substantial decrease of net cash used in investing activities was primarily attributable to the reduced acquisition of six-month time deposits classified as current financial assets at amortized cost according to IFRS, partially offset by proceeds from disposal of financial assets at amortized cost.

Cash Flows Generated from (Used in) Financing Activities

Net cash used in financing activities was $0.2 million for the six months ended June 30, 2024, consisting of $0.2 million in the repayment of the principal portion of lease liabilities.

Net cash from financing activities was $0.6 million for the six months ended June 30, 2023, primarily consisting of $0.4 million in the payments to acquire treasury shares, and $0.2 million in the repayment of the principal portion of lease liabilities.

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Material Contractual Obligations and Commitments

During the periods presented, we did not have any material contractual obligations and commitments other than two office leases entered into by and between Perfect Mobile Corp., a wholly-owned subsidiary of the Company, and CyberLink Corp., a related party, for two years starting from June 1, 2023 and December 1, 2023 respectively, and an office lease entered into by and between Perfect Mobile Corp., a wholly-owned subsidiary of the Company, and ClinJeff Corp., a related party, for two years starting from May 15, 2024.

Off-Balance Sheet Arrangements

During the periods presented, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities, which were established for the purpose of facilitating off-balance sheet arrangements.

Critical Accounting Estimates

Our Interim Financial Statements have been prepared in accordance with IFRS. The preparation of our Interim Financial Statements requires us to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue, expenses and related disclosures. See Note 5 “Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty” to our Interim Financial Statements included elsewhere in this MD&A for additional information on our critical accounting estimates.

Recent Accounting Pronouncements

For a discussion of our new or recently adopted accounting pronouncements, see Note 3 “Application of New Standards, Amendments and Interpretations” to our Interim Financial Statements.

Emerging Growth Company Status

As defined in Section 102(b)(1) of the JOBS Act, we are an emerging growth company. As such, we are eligible for and intend to rely on certain exemptions and reduced reporting requirements provided by the JOBS Act, including (a) the exemption from the auditor attestation requirements with respect to internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act, (b) the exemptions from say-on-pay, say-on-frequency and say-on-golden parachute voting requirements and (c) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements.

The Company will remain an emerging growth company under the JOBS Act until the earliest of:

(1)the last day of the fiscal year (a) following the fifth anniversary of the date on which Class A Ordinary Shares were offered in connection with the Transactions, (b) in which it has total annual gross revenues of at least $1.235 billion, or (c) in which it is deemed to be a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of its ordinary shares that are held by non-affiliates exceeds $700 million as of the end of the prior fiscal year’s second fiscal quarter; or

(2)the date on which it has issued more than $1 billion in non-convertible debt during the prior three-year period.

Foreign Private Issuer Status

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We are an exempted company limited by shares incorporated in 2015 under the laws of the Cayman Islands. We are a foreign private issuer within the meaning of the rules under the Exchange Act. Under Rule 405 of the Securities Act, the determination of foreign private issuer status is made annually on the last business day of an issuer’s most recently completed second fiscal quarter, and accordingly, the next determination will be made with respect to us on June 30, 2025. Even after we no longer qualifies as an emerging growth company, for so long as we qualify as a foreign private issuer, it will be exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies, including:

•the rules requiring domestic filers to issue financial statements prepared under U.S. GAAP;

•the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the SEC;

•the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act;

•the sections of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and

•the selective disclosure rules by issuers of material nonpublic information under Regulation Fair Disclosure, or Regulation FD, which regulates selective disclosure of material non-public information by issuers.

We are required to file an annual report on Form 20-F within four months of the end of each fiscal year. In addition, we intend to publish our results on a quarterly basis through press releases, distributed pursuant to the rules and regulations of the NYSE. Press releases relating to financial results and material events will also be furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. Accordingly, our shareholders will receive less or different information about us than a shareholder of a U.S. domestic public company would receive.

We are a non-U.S. company with foreign private issuer status and are listed on the NYSE. NYSE rules permit a foreign private issuer such as us to follow the corporate governance practices of our home country. Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from NYSE corporate governance listing standards. Among other things, we are not required to have:

•a majority of the Board consisting of independent directors;

•a compensation committee;

•a nominating committee; or

•regularly scheduled executive sessions with only independent directors each year.

We intend to rely on the exemptions listed above. As a result, you may not be provided with the benefits of certain corporate governance requirements of the NYSE applicable to U.S. domestic public companies. We would cease to be a foreign private issuer at such time as more than 50% of our outstanding voting securities are held by U.S. residents and any of the following three circumstances applies: (i) the majority of our executive officers or directors are U.S. citizens or residents, (ii) more than 50% of our assets are located in the United States or (iii) our business is administered principally in the United States.

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Foreign private issuers, similar to emerging growth companies, are also exempt from certain more stringent executive compensation disclosure rules. Thus, even if we are no longer qualified as an emerging growth company but remain a foreign private issuer, we will continue to be exempt from the more stringent compensation disclosures required of public companies that are neither an emerging growth company nor a foreign private issuer.

If at any time we cease to be a foreign private issuer, we will take all action necessary to comply with the applicable rules of the SEC and the NYSE.

Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various risks in relation to financial instruments. The main types of risks are foreign currency risk and interest rate risk. While we may enter into hedging contracts from time to time, any change in the fair value of the contracts could be offset by changes in the underlying value of the transactionsbeing hedged. Furthermore, we do not have foreign-exchange hedging contracts in place with respect to all currencies in which we do business.

Foreign Currency Risk

We are exposed to foreign exchange risk on transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings that are denominated in a currency other than the respective functional currencies of our entities. Our sales are substantially denominated in U.S. dollars, but the functional currencies of our entities also include Euro Dollars, RMB and Japanese yen. Accordingly, changes in exchange rates are reflected in reported income and loss from our international businesses included in our consolidated statements of operations. A continued strengthening of the U.S. dollar would therefore reduce reported revenue and expenses from our international businesses included in our consolidated statements of operations.

Interest on external borrowings is denominated in the currency of the borrowing. Generally, our entities’ external borrowings are denominated in currencies that match the cash flows generated by the underlying operations, which is also the currency of the country in which the entity operates.

For the six months ended June 30, 2024, we had $0.3 million of other comprehensive loss generated from the exchange differences on translation of foreign operations, whereas for the same period in 2023, we had $0.2 million of other comprehensive loss generated from the same.

A hypothetical 10% change in foreign currency exchange rates on our monetary assets and liabilities would not be material to our financial condition or results of operations.

Based on the above, we believe we are not exposed to significant currency transactional foreign currency risk. While we have not engaged in the hedging of our foreign currency transactions to date and do not enter into any hedging contracts for trading or speculative purposes, we may in the future, enter into derivatives or other financial instruments in an attempt to hedge our foreign currency exchange risk. It is difficult to predict the impact that hedging activities would have on our results of operations.

Interest Rates Risk

Given that we have no indebtedness as of the date of this MD&A, the risk arising from the fluctuation of interest rates should only be limited to interest income from interest-bearing assets such as cash and cash-equivalent assets and financial assets at amortized cost that bear variable interest rates.

Credit Risk

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Credit risk refers to the risk of financial loss to us arising from default by the customers or counterparties of financial instruments on the contract obligations. Our main credit risk was that counterparties could not repay in full the accounts receivables based on the agreed terms and the financial assets at amortized cost.

We actively monitor and manage our credit risk by performing credit checks and monitoring credit limits. With respect to banks and financial institutions, we only accept independently rated parties with a minimum rating of “A.” With respect to our customers, our local entities are responsible for managing and analyzing the credit risk for each of their new customers before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by our Board.

Liquidity Risk

We manage liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance our operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

Cautionary Note Regarding Forward-Looking Statements

This MD&A includes forward-looking statements regarding, among other things, our plans, strategies and prospects, both business and financial. These statements are based on the beliefs and assumptions of our management. Although we believe that our respective plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be preceded by, followed by or include the words “may,” “will,” “should,” “could,” “would,” “predict,” “potential,” “continue,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” “forecast,” “seek,” “schedule,” or similar expressions.

Such forward-looking statements, if any, with respect to our revenues, earnings, performance, strategies, prospects and other aspects of the businesses are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, anticipated events and trends, the economy and other future conditions that are subject to risks and uncertainties. These forward-looking statements are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability regarding future performance, events or circumstances. Many of the factors affecting actual performance, events and circumstances are beyond our control. The risk factors and cautionary language discussed in this MD&A and the Annual Report provide examples of risks, uncertainties and events that may cause actual results to differ materially from the expectations described by us in such forward-looking statements, including among other things:

•changes in applicable laws or regulations;

•our estimates of expenses and profitability;

•our ability to innovate, develop and provide new products and services or upgrade our existing products and services in a timely and cost-effective manner;

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•our ability to retain and expand sales to existing brands or attract new brands;

•our ability to compete effectively or maintain market leadership in the markets in which we currently operate or expand into;

•our ability to meet the challenges presented by our increasingly globalized operations;

•our ability to maintain and enhance our brand awareness;

•our need to retain, attract or maintain high-quality personnel;

•continued and increased consumer engagement with brands in our portfolio and our mobile apps;

•changes in laws and regulations related to privacy and data protection;

•the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, and the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and retain our management and key employees;

•our ability to enforce, protect and maintain intellectual property rights; and

•the other matters described in the section entitled “Risk Factors” of the Annual Report.

Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those anticipated in these forward-looking statements. There may be additional risks currently considered to be immaterial or which are unknown. It is not possible to predict or identify all such risks.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us, as of the date of this MD&A, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and such statements should not be read to indicate that such party has conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this MD&A. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date.

All forward-looking statements included herein are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except to the extent required by applicable laws and regulations, we undertake no obligations to update these forward-looking statements to reflect events or circumstances after the date of this MD&A or to reflect the occurrence of unanticipated events. In the event that any forward-looking statement is updated, no inference should be made that we will make additional updates with respect to that statement, related matters, or any other forward-looking statements. Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from forward-looking statements, including discussions of additional significant risk factors, may appear in our public filings with the SEC, which are or will be (as appropriate) accessible at www.sec.gov, and which you are advised to consult.

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XML

Cover Page	6 Months Ended
	Jun. 30, 2024
Cover [Abstract]
Document Type	6-K
Document Fiscal Year Focus	2024
Entity Registrant Name	Perfect Corp.
Amendment Flag	false
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001899830
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2024

XML

UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 120,796	$ 123,871
Current financial assets at amortized cost	37,970	30,300
Current contract assets	1,543	2,770
Accounts receivable	7,102	6,992
Other receivables	737	343
Current income tax assets	281	311
Inventories	21	33
Other current assets	2,832	4,042
Total current assets	171,282	168,662
Non-current assets
Property, plant and equipment	545	380
Right-of-use assets	679	847
Intangible assets	57	77
Deferred income tax assets	1,120	257
Guarantee deposits paid	147	140
Total non-current assets	2,548	1,701
Total assets	173,830	170,363
Current liabilities
Current contract liabilities	16,858	15,346
Other payables	10,239	10,331
Other payables – related parties	50	50
Current tax liabilities	390	21
Current provisions	1,775	2,394
Current lease liabilities	524	481
Other current liabilities	195	277
Total current liabilities	30,031	28,900
Non-current liabilities
Non-current financial liabilities at fair value through profit or loss	1,520	1,566
Non-current lease liabilities	187	387
Net defined benefit liability, non-current	81	79
Guarantee deposits received	25	25
Total non-current liabilities	1,813	2,057
Total liabilities	31,844	30,957
Equity
Capital stock	10,185
Capital surplus
Capital surplus	511,653	510,399
Retained earnings
Accumulated deficit	(379,078)	(380,472)
Other equity interest
Other equity interest	(774)	(523)
Treasury shares	0	(190)
Total equity	141,986	139,406
Total liabilities and equity	173,830	170,363
Perfect Class A Ordinary Shares
Equity
Capital stock	8,506	8,513
Perfect Class B Ordinary Shares
Equity
Capital stock	$ 1,679	$ 1,679

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UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Perfect Class B Ordinary Shares
Statement
Ordinary shares (in USD per share)	$ 0.1	$ 0.1
Perfect Class A Ordinary Shares
Statement
Ordinary shares (in USD per share)	$ 0.1	$ 0.1

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UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Profit or loss [abstract]
Revenue	$ 28,194	$ 24,832
Cost of sales and services	(5,971)	(5,024)
Gross profit	22,223	19,808
Operating expenses
Sales and marketing expenses	(14,184)	(12,585)
General and administrative expenses	(4,614)	(5,427)
Research and development expenses	(6,010)	(5,396)
Total operating expenses	(24,808)	(23,408)
Operating loss	(2,585)	(3,600)
Non-operating income and expenses
Interest income	3,952	4,609
Other income	14	7
Other gains and losses	(291)	(459)
Finance costs	(10)	(5)
Total non-operating income and expenses	3,665	4,152
Income before income tax	1,080	552
Income tax benefit (expense)	314	(63)
Net income	1,394	489
Components of other comprehensive loss that will be reclassified to profit or loss
Exchange differences arising on translation of foreign operations	(251)	(168)
Other comprehensive loss, net	(251)	(168)
Total comprehensive income	1,143	321
Net income attributable to:
Shareholders of the parent	1,394	489
Total comprehensive income attributable to:
Shareholders of the parent	$ 1,143	$ 321
Earnings per share (in dollars)
Basic earnings (loss) per share of class A and class B ordinary shares (in USD per share)	$ 0.014	$ 0.004
Diluted earnings (loss) per share of class A and class B ordinary shares (in USD per share)	$ 0.014	$ 0.004

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UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Additional paid-in capital	Other	Accumulated deficit	Exchange differences arising on translation of foreign operations	Treasury shares	Capital stock
Beginning balance at Dec. 31, 2022	$ 181,964	$ 554,209	$ 2,220	$ (385,884)	$ (407)	$ 0	$ 11,826
Net income for the period	489			489
Other comprehensive loss for the period	(168)				(168)
Total comprehensive income (loss)	321			489	(168)
Share-based payment transactions	1,441		1,441
Shares repurchased and retired	(429)					(429)
Ending balance at Jun. 30, 2023	183,297	554,209	3,661	(385,395)	(575)	(429)	11,826
Beginning balance at Dec. 31, 2023	139,406	477,734	32,665	(380,472)	(523)	(190)	10,192
Net income for the period	1,394			1,394
Other comprehensive loss for the period	(251)				(251)
Total comprehensive income (loss)	1,143			1,394	(251)
Share-based payment transactions	1,437		1,437
Shares repurchased and retired	0	(319)	136			190	(7)
Ending balance at Jun. 30, 2024	$ 141,986	$ 477,415	$ 34,238	$ (379,078)	$ (774)	$ 0	$ 10,185

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UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax	$ 1,080	$ 552
Adjustments to reconcile profit (loss)
Depreciation expense	344	326
Amortization expense	26	37
Interest income	(3,952)	(4,609)
Interest expense	10	5
Net (gains) losses on financial liabilities at fair value through profit or loss	(46)	244
Share-based payment transactions	1,437	1,441
Changes in operating assets and liabilities
Accounts receivable	(134)	87
Current contract assets	1,214	2,130
Other receivables	0	3
Inventories	12	11
Other current assets	1,210	47
Current contract liabilities	1,622	3,035
Other payables	(51)	(1,183)
Other payables – related parties	3	(12)
Current provisions	(563)	320
Other current liabilities	(67)	(107)
Net defined benefit liability, non-current	1	1
Cash inflow generated from operations	2,146	2,328
Interest received	3,558	4,331
Interest paid	(10)	(5)
Income tax paid	(176)	(205)
Net cash flows from operating activities	5,518	6,449
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortized cost	(44,470)	(160,800)
Proceeds from disposal of financial assets at amortized cost	36,800	30,000
Acquisition of property, plant and equipment	(259)	(170)
Acquisition of intangible assets	(6)	(33)
Increase in guarantee deposits paid	(8)	0
Net cash flows used in investing activities	(7,943)	(131,003)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of principal portion of lease liabilities	(239)	(203)
Payments to acquire treasury shares	0	(429)
Net cash flows used in financing activities	(239)	(632)
Effects of exchange rates changes on cash and cash equivalents	(411)	(262)
Net decrease in cash and cash equivalents	(3,075)	(125,448)
Cash and cash equivalents at beginning of period	123,871	162,616
Cash and cash equivalents at end of period	$ 120,796	$ 37,168

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History and Organization

6 Months Ended

Jun. 30, 2024

History and Organization

History and Organization

History and Organization

Perfect Corp. (the “Company” or “Perfect”), is a Cayman Islands exempted company with limited liability, which incorporated on February 13, 2015 with registered address PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The Company and its subsidiaries (collectively referred herein as the “Group”) are SaaS technology companies offering AR/AI solution dedicated to the beauty and fashion industry as well as mobile applications to consumers. The principal place of business is at 14F, No. 98 Minquan Road, Xindian District, New Taipei City 231, Taiwan.

On October 28, 2022 (the “Closing Date”), the Company consummated the previously announced merger transaction pursuant to the Business Combination Agreement dated as of March 3, 2022, by and among Perfect, Beauty Corp., a wholly-owned subsidiary of Perfect, Fashion Corp., a wholly-owned subsidiary of Perfect, and Provident Acquisition Corp. (“Provident”).

Pursuant to the Business Combination Agreement, dated as of March 3, 2022, Beauty Corp., a Cayman Islands exempted company with limited liability, merged with and into Provident (the “First Merger”), a special purpose acquisition company incorporated in the Cayman Islands and listed on the Nasdaq Stock Market (“NASDAQ”), with Provident surviving as a wholly-owned subsidiary of Perfect, and then immediately following the First Merger, Provident merged with and into Fashion Corp. (the “Second Merger”), a Cayman Islands exempted company with limited liability, with Fashion Corp. surviving as a wholly-owned subsidiary of Perfect. The consummation of the merger transactions was referred to as the “Closing”, dated as of October 28, 2022.

In connection with the merger, each Perfect original share (consisting of Perfect common share, par value $0.1 (in dollars) per share, and Perfect preferred share, par value $0.1 (in dollars) per share) converted to Perfect Class A or Perfect Class B ordinary share, par value $0.1 (in dollars) per share, based on a conversion ratio 0.17704366. Each Provident share (consisting of Provident Class A ordinary share, par value $0.0001 (in dollars) per share, and Provident Class B ordinary share, par value $0.0001 (in dollars) per share) converted to one Perfect Class A ordinary share.

Upon the consummation of the mergers and the other transactions contemplated by the Business Combination Agreement, the shareholders of Provident became shareholders of Perfect, and the Company became a publicly traded company on the New York Stock Exchange (“NYSE”) on October 31, 2022.

The merger transaction pursuant to the Business Combination Agreement is accounted for as a recapitalization.

On November 24, 2023, the Board of Directors approved a tender offer to purchase up to 16,129,032 Class A Ordinary Shares at a price of $3.10 (in dollars) per share for an aggregate purchase price of approximately $50,000, subject to certain limitations and legal requirements. The Board of Directors has concluded that the tender offer is a prudent use of our available cash from operations and other financial resources and delivers value to our shareholders. The Board of Directors has also determined that a cash tender offer is an appropriate mechanism to return capital to shareholders that seek liquidity under current market conditions while, at the same time, allowing shareholders who do not participate in the tender offer to share in a higher proportion of our future potential.

In accordance with the terms and conditions of the tender offer, and based on the final results reported by the Depositary, the Company has accepted for purchase 16,129,010 shares, through the tender offer at a price of $3.10 (in dollars) per share, for an aggregate cost of approximately $50,000, excluding fees relating to the tender offer. All the purchased shares were retired on December 29, 2023.

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The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

6 Months Ended

Jun. 30, 2024

The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization

These unaudited condensed interim consolidated financial statements were authorized for issuance by the Board of Directors on September 23, 2024.

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Application of New Standards, Amendments and Interpretations

6 Months Ended

Jun. 30, 2024

Disclosure of initial application of standards or interpretations [abstract]

Application of New Standards, Amendments and Interpretations

Application of New Standards, Amendments and Interpretations

3(1)    New and amended standards adopted by the Group

New standards, interpretations and amendments issued by International Accounting Standards Board (the “IASB”) and became effective from 2024 are as follows:

New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’	January 1, 2024
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024

The above standards and interpretations had no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. The new disclosures related to supplier finance arrangements are not required to be provided in the 2024 interim report.

3(2)    New and revised International Financial Reporting Standards not yet adopted

New and amendments to IFRSs which have been published but are not mandatory for the financial period ending June 30, 2024 are listed below:

New Standards, Interpretations and Amendments	Effective date by IASB
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
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial Instruments’	January 1, 2026
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The unaudited condensed interim consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair statement of the results of operations for the interim period. All such adjustments to the financial information are of a normal, recurring nature. Accordingly, these unaudited condensed interim consolidated financial statements are to be read in conjunction with the annual financial statements for the year ended December 31, 2023. The principal accounting policies applied in the preparation of these unaudited condensed interim consolidated financial statements are disclosed in financial statements for the year ended December 31, 2023 and have been consistently applied to all the periods presented, except for the adoption of new and amended standards as set out below and Note 3(1).

4(1)    Compliance statement

These unaudited condensed interim consolidated financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the IASB.

4(2)    Basis of preparation

A.Except for the following items, the unaudited condensed interim consolidated financial statements have been prepared under the historical cost convention:

(a)Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

(b)Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

B.The preparation of the unaudited condensed interim consolidated financial statements in conformity with IAS 34 Interim Financial Reporting requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the unaudited condensed interim consolidated financial statements are disclosed in Note 5.

4(3)    Basis of consolidation

A.Basis for preparation of unaudited condensed interim consolidated financial statements:

(a)All subsidiaries are included in the Group’s unaudited condensed interim consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

(b)Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

(c)When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B.Subsidiaries included in the unaudited condensed interim consolidated financial statements:

			Ownership (%)
Name of investor	Name of subsidiary	Main business activities	December 31, 2023	June 30, 2024
The Company	Perfect Mobile Corp. (Taiwan)	Design, development, marketing and sales of AR/AI SaaS solution and mobile applications.	100%	100%
The Company	Perfect Corp. (USA)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Corp. (Japan)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Corp. (Shanghai)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Mobile Corp.(B.V.I.)	Investment activities.	100%	100%
Perfect Mobile Corp. (Taiwan)	Perfect Corp. (France)	Marketing and service center for sales of AR/AI SaaS solution.	100%	100%

C.Subsidiaries not included in the consolidated financial statements:

None.

D.Adjustments for subsidiaries with different balance sheet dates:

None.

E.Significant restrictions:

None.

F.Subsidiaries that have non-controlling interests that are material to the Group:

None.

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Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

6 Months Ended

Jun. 30, 2024

Disclosure of changes in accounting estimates [abstract]

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

There have been no significant changes with regards to critical accounting judgements, estimates and key sources of assumption uncertainty as of June 30, 2024. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2023.

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Details of Significant Accounts

6 Months Ended

Jun. 30, 2024

Details of Significant Accounts

Details of Significant Accounts

Details of Significant Accounts

6(1)    Cash and cash equivalents

	December 31, 2023		June 30, 2024
Petty cash	$	1	$	1
Checking accounts	2,139		1,976
Demand deposits	12,547		15,114
Time deposits	109,000		103,500
Others	184		205
	$	123,871	$	120,796

A.The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. As of June 30, 2024, the majority of our cash and cash equivalents, 95%, are denominated in U.S. Dollars.

B.The Group has no cash and cash equivalents pledged to others.

6(2)    Current financial assets at amortized cost

	December 31, 2023		June 30, 2024
Time deposits with maturities over three months	$	30,300	$	37,970

A.The Group has no financial assets at amortized cost pledged to others.

B.The counterparties of the Group's time deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote. As of June 30, 2024, 95% of current financial assets at amortized cost are denominated in U.S. Dollars.

C.Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2).

6(3)    Accounts receivable

	December 31, 2023		June 30, 2024
Accounts receivable	$	6,992	$	7,102

A.The ageing analysis of accounts receivable is as follows:

	December 31, 2023		June 30, 2024
Not past due	$	5,791	$	5,399
Up to 30 days	594		563
31 to 90 days	340		302
91 to 180 days	196		643
Over 181 days	71		195
	$	6,992	$	7,102

The above ageing analysis was based on days overdue.

B.As at December 31, 2023 and June 30, 2024, accounts receivable were all from contracts with customers. And as at January 1, 2023, the balance of receivables from contracts with customers amounted to $7,756.

C.As at December 31, 2023 and June 30, 2024, without taking into account other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable was $6,992 and $7,102, respectively.

D.Information relating to credit risk of accounts receivable is provided in Note 12(2).

6(4)    Other current assets

	December 31, 2023		June 30, 2024
Prepaid expenses	$	3,773	$	2,761
Others	269		71
	$	4,042	$	2,832

6(5)    Property, plant and equipment

	Leasehold improvements		Machinery		Office equipment		Total
At December 31, 2023
Cost	$	675	$	729	$	53	$	1,457
Accumulated depreciation	(553)		(488)		(36)		(1,077)
	$	122	$	241	$	17	$	380
Opening net book amount	$	122	$	241	$	17	$	380
Additions	69		190		—		259
Depreciation expense	(27)		(64)		(3)		(94)
Closing net book amount	$	164	$	367	$	14	$	545
At June 30, 2024
Cost	$	744	$	919	$	53	$	1,716
Accumulated depreciation	(580)		(552)		(39)		(1,171)
	$	164	$	367	$	14	$	545

The Group has no property, plant and equipment pledged to others.

6(6)    Leasing arrangements  —  lessee

A.The Group leases various assets including buildings and business vehicles. Rental contracts are typically made for periods of 2 to 3 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Leased assets cannot be used as collateral for borrowing purposes and are prohibited from being subleased, sold or lent to others or corporations under any circumstances.

B.Short-term leases with a lease term of 12 months or less include offices located in United States, Japan, China and France. As of December 31, 2023 and June 30, 2024, lease commitments for short-term leases amounted to $136 and $148, respectively.

C.The movements of right-of-use assets of the Group are as follows:

	Buildings		Business vehicles		Total
At December 31, 2023
Cost	$	942	$	202	$	1,144
Accumulated depreciation	(237)		(60)		(297)
	$	705	$	142	$	847
Opening net book amount	$	705	$	142	$	847
Additions	82		—		82
Depreciation expense	(204)		(46)		(250)
Closing net book amount	$	583	$	96	$	679
At June 30, 2024
Cost	$	1,024	$	202	$	1,226
Accumulated depreciation	(441)		(106)		(547)
	$	583	$	96	$	679

D.Lease liabilities relating to lease contracts:

	December 31, 2023		June 30, 2024
Total lease liabilities	$	868	$	711
Less: current portion (shown as ‘current lease liabilities’)	(481)		(524)
	$	387	$	187

E.The information on profit and loss accounts relating to lease contracts is as follows:

	Six months ended June 30,
	2023		2024
Items affecting profit or loss
Interest expense on lease liabilities	$	5	$	10
Expense on short-term lease contracts	193		177
	$	198	$	187

F.For the six months ended June 30, 2023 and 2024, the Group’s total cash outflow for leases were $401 and $426, respectively, including the interest expense on lease liabilities amounting to $5 and $10, expense on short-term lease contracts amounting to $193 and $177, and repayments of principal portion of lease liabilities amounting to $203 and $239, respectively.

6(7)    Intangible assets

	Software		Other intangible assets		Total
At December 31, 2023
Cost	$	137	$	89	$	226
Accumulated amortization	(68)		(81)		(149)
	$	69	$	8	$	77
Opening net book amount	$	69	$	8	$	77
Additions	6		—		6
Cost of disposals	—		(74)		(74)
Accumulated amortization on disposals	—		74		74
Amortization charge	(24)		(2)		(26)
Closing net book amount	$	51	$	6	$	57
At June 30, 2024
Cost	$	143	$	15	$	158
Accumulated amortization	(92)		(9)		(101)
	$	51	$	6	$	57

Details of amortization on intangible assets are as follows:

	Six months ended June 30,
	2023		2024
Research and development expenses	$	37	$	26

6(8)    Financial liabilities at fair value through profit or loss

	December 31, 2023		June 30, 2024
Non-current items:
Warrant liabilities	$	8,431	$	8,431
Add: Valuation adjustment	(6,865)		(6,911)
	$	1,566	$	1,520

A.    Amounts recognized in profit or loss and other comprehensive income in relation to financial liabilities at fair value through profit or loss are as follows:

	Six months ended June 30,
	2023		2024
Net gains (losses) recognized in profit or loss
Warrant liabilities	$	(244)	$	46

B.    Warrant liabilities

(a)As part of Business Combination, warrants sold and issued by Provident were automatically converted to Perfect Warrants. Each warrants entitles the holder to purchase one Class A Ordinary Share at a price of $11.50 (in dollars) per share.

(b)As of June 30, 2024 there were 20,850 thousand warrants outstanding, consisting of 12,750 thousand Public Warrants, 6,600 thousand Private Placement Warrants and 1,500 thousand Forward Purchase Warrants (as defined below). Each warrant is exercisable for one Perfect Class A Ordinary Share, in accordance with its terms.

Public Warrants

Provident sold an aggregate of 11,500 thousand Public Warrants in the Provident Initial Public Offering. On November 20, 2023, 1,250 thousand Forward Purchase Warrants were converted into 1,250 thousand Public Warrants.

Private Placement Warrants

Provident privately issued and sold an aggregate of 6,600 thousand Private Warrants to the Sponsor simultaneously with the consummation of the Provident Initial Public Offering on January 7, 2021.

Forward Purchase Warrants

Pursuant to the Forward Purchase Agreements (“FPA”), Provident issued and sold to FPA Investors, an aggregate of 5,500 thousand Forward Purchase Shares and 2,750 thousand Forward Purchase Warrants in consideration for an aggregate purchase price of $55,000, as closed on October 27, 2022.

(c)Movements in all kinds of Perfect Warrants are as follows:

	Public Warrants (units in thousands)	Private Placement Warrants (units in thousands)	Forward Purchase Warrants (units in thousands)
At December 31, 2023	12,750	6,600	1,500
At June 30, 2024	12,750	6,600	1,500

(d)Redemption of warrants when the price per Perfect Class A Ordinary Shares equal or exceed $18.00 (in dollars).

Once the warrants become exercisable, the Company may redeem the outstanding warrants (except as described herein with respect to Perfect Private Placement Warrants):

(i) in whole and not in part (ii) at a price of $0.01 (in dollars) per warrant (iii) upon not less than 30 days’ prior written notice of redemption to each warrant holder (the “30-day redemption period”) and (iv) if, and only if, the last reported sale price of the Perfect Class A Ordinary Shares for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders (which the Company refers to as the “Reference Value”) equals or exceeds $18.00 (in dollars) per share.

(e)Redemption of warrants when the price per Class A Ordinary Share equals or exceeds $10.00 (in dollars).

Once the warrants become exercisable, the Company may redeem the outstanding warrants:

(i) in whole and not in part (ii) at $0.10 (in dollars) per warrant upon a minimum of 30 days’ prior written notice of redemption (iii) provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares based on the redemption date and the “fair market value” of Perfect Class A Ordinary Shares (iv) if, and only if, the Reference Value equals or exceeds $10.00 (in dollars) per share and (v) if the Reference Value is less than $18.00 (in dollars) per share, Perfect Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Perfect Public Warrants, as described above.

(f)Private Placement Warrants

The Private Placement Warrants are identical to the Public Warrants and Forward Purchase Warrants except that Private Placement Warrants, so long as they are held by Provident Acquisition Holdings Ltd., (the “Sponsor”) or its permitted transferees, (i) will not be redeemable by the Company (ii) may not (including the Class A Ordinary shares issuable upon exercise of these Private Placement Warrants), subject to certain limited exceptions, be transferred assigned or sold by the holder until 30 days after the completion of the Company’s initial Business Combination (iii) may be exercised by the holders on a cashless basis and (iv) will be entitled to certain registration rights.

If the Private Placement Warrants are held by holders other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same basis as Public Warrants and Forward Purchase Warrants.

6(9)    Other payables

	December 31, 2023		June 30, 2024
Employee bonus	$	4,662	$	5,200
Payroll	2,228		1,532
Remuneration to directors	115		460
Promotional fees	1,090		1,437
Professional service fees	1,415		750
Sales VAT payables	126		205
Post and telecommunications expenses	171		214
Others	524		441
	$	10,331	$	10,239

6(10)    Provisions

	Warranty
At December 31, 2023	$	2,394
Additional provisions	287
Used during the period	(850)
Net exchange differences	(56)
At June 30, 2024	$	1,775

Analysis of total provisions:

	December 31, 2023		June 30, 2024
Current	$	2,394	$	1,775

The Group enters into the contract with customers with warranties on services provided. The warranties (loss indemnification) provide customers with assurance that the related services will function as agreed by both parties. Provision for warranty is estimated based on historical warranty data, other known events and management’s judgement. The Group recognizes such expenses within ‘Cost of sales and services’ when related services are provided. Any changes in industry circumstances might affect the provisions. Provisions shall be paid when the payment is actually claimed.

6(11)    Pensions

A.Defined benefit plan

(a)The Group’s subsidiary, Perfect Mobile Corp. (Taiwan), was incorporated in Taiwan, which has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular foreign employees’ service years. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. Perfect Mobile Corp. (Taiwan) contributes to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, Perfect Mobile Corp. (Taiwan) would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, Perfect Mobile Corp. (Taiwan) will make contributions for the deficit by next March.

(b)For the aforementioned pension plan, the Group recognized pension costs of $2 and $2 for the six months ended June 30, 2023 and 2024, respectively.

(c)Expected contributions to the defined benefit pension plans of Perfect Mobile Corp. (Taiwan) for the year ending December 31, 2024 amount to $6.

B.Defined contribution plans

(a)Perfect Mobile Corp. (Taiwan) has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, Perfect Mobile Corp. (Taiwan) contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum when employees retire.

(b)The pension costs under defined contribution pension plan of Perfect Mobile Corp. (Taiwan) for the six months ended June 30, 2023 and 2024 were $265 and $282, respectively.

(c)The pension costs under local government law of other foreign subsidiaries for the six months ended June 30, 2023 and 2024 were $121 and $132, respectively.

6(12)    Share-based payment

A.Share Incentive Plan

(a)For the six months ended June 30, 2023 and 2024, the Group’s Share Incentive Plan’s terms and condition are as follows:

Plan	Type of arrangement	Settled by	Maximum terms of option granted	Vesting conditions
Share Incentive Plan	Employee stock options	Equity	Five years	2 years’ service: exercise 50%
				3 years’ service: exercise 75%
				4 years’ service: exercise 100%

(b)Movements of outstanding options under Share Incentive Plan are as follows:

	2023			2024
	No. of options (units in thousands)	Weighted- average exercise price per share (in dollars)		No. of options (units in thousands)	Weighted- average exercise price per share (in dollars)
Options outstanding at January 1	2,063	$	3.95	4,073	$	4.47
Options granted	2,276	4.94		5	2.13
Options forfeited	(67)	4.04		(143)	4.50
Options outstanding at June 30	4,272	4.48		3,935	4.47
Options exercisable at June 30	—			914

(c)As of December 31, 2023 and June 30, 2024, the range of exercise prices of stock options outstanding were $2.43 ~ $7.20 and $2.13 ~ $7.20 (in dollars) per share, respectively; the weighted-average remaining contractual period was 3.06 ~ 4.84 years and 2.56 ~ 4.91 years, respectively.

(d)The fair value of stock options granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Plan	Grant date	Units granted  (in thousands)	Stock price per share (in dollars)		Exercise price per share (in dollars)		Expected price volatility	Expected option life	Expected dividends	Risk-free interest rate	Fair value per unit (in dollars)
Share Incentive Plan	2022.01.21	2,143	$	5.39	$	3.95	53.75%	3.88	0.00%	1.46%	$	2.7637
	2023.01.03	8	7.20		7.20		64.85%	3.87	0.00%	4.07%	3.7198
	2023.05.23	2,260	4.93		4.93		69.15%	3.88	0.00%	3.90%	2.6615
	2023.08.21	7	4.00		3.916		70.65%	3.88	0.00%	4.64%	2.2411
	2023.11.02	5	2.43		2.43		70.37%	3.88	0.00%	4.77%	1.3487
	2024.05.27	5	2.13		2.13		72.67%	3.88	0.00%	4.65%	1.2069

Note i: Stock price, exercise price and fair value of stock option granted on January 21, 2022 were adjusted in connection with the recapitalization. All amounts in the table are presented on a consistent adjusted basis.

Note ii: Expected price volatility is estimated based on the daily historical stock price fluctuation data of the Company and guideline companies of the last five years before the grant date.

B.Expenses incurred on share-based payment transactions are shown below:

	Six months ended June 30,
	2023		2024
Equity settled	$	1,441	$	1,437

C.In 2022, the Group has service agreements with its Board of Directors to grant them awards of the Company’s Ordinary Shares at a fixed monetary value. Expense incurred for the six months ended June 30, 2023 and 2024 was $175 and $0, respectively. The fixed monetary value of equity awards of director compensation was paid in cash in the first year, resulting in expenses incurred for the year ended December 31, 2022, being paid in cash. In the future, the Group may compensate directors either entirely in cash or partially in cash and partially in equity.

D.Shareholder Earnout

In connection with the merger transaction in 2022, the Company executed additional capitalization by way of the potential issuance of Earnout Shares for Perfect shareholders. In accordance with Shareholder Earnout terms and conditions contemplated by the Business Combination Agreement, 3,000 thousand, 3,000 thousand and 4,000 thousand of the Shareholder Earnout Shares are issuable if over any 20 trading days within any 30-trading-day period during the Earnout Period when the daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $11.50 (in dollars), $13.00 (in dollars) and $14.50 (in dollars), respectively. None of these conditions had been met in the period up through June 30, 2024.

Shareholder Earnout Shares are considered a potential contingent payment agreement with Shareholders, based on a market condition without link to service. The expense related to these instruments was previously recorded in connection with the merger in 2022.

E.Sponsor Earnout

In connection with the Business Combination Agreement, the Company entered into a Sponsor Letter Agreement pursuant to which it agreed to issue Earnout shares to the Sponsors. Subject to the terms and conditions contemplated by the Sponsor Letter Agreement, upon the occurrence of specific Sponsor Earnout Event (as defined below) from October 28, 2022 to October 28, 2027 (“Earnout Period”), Perfect will issue Perfect Class A Ordinary Shares of up to 1,175,624 Class A Ordinary Shares(the “Sponsor Earnout Promote Shares”) to Sponsor, with (a) 50% of the Sponsor Earnout Promote Shares issuable if over any 20 trading days within any 30-trading-day period during the Earnout Period the daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $11.50 (in dollars), and (b) 50% of the Sponsor Earnout Promote Shares issuable if over any twenty (20) trading days within any 30-trading-day period during the Earnout Period the daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $13.00 (in dollars). None of these conditions had been met in the period up through June 30, 2024.

6(13)    Share capital

A.As of June 30, 2024, the Company’s authorized capital is $82,000 consisting of 700,000 thousand shares of Class A Ordinary Shares, 90,000 thousand shares of Class B Ordinary Shares, 30,000 thousand shares of classes reserved and may determine by Board of Directors. The paid-in capital was $10,185, including 85,060 thousand Class A Ordinary Shares after the retirement of 16,388 thousand treasury shares and 27 thousand shares surrendered by a shareholder, and 16,789 thousand Class B Ordinary Shares. All proceeds from shares issued have been collected.

Perfect Class A Ordinary shares

Perfect Class A Ordinary shares have a par value of $0.1 (in dollars). Amounts received above the par value are recorded as share premium. Each holder of Perfect Class A Ordinary shares will be entitled to one vote per share. Class A Ordinary Shares are listed on NYSE under the trading symbol “PERF”.

Perfect Class B Ordinary shares

Perfect Class B Ordinary shares have a par value of $0.1 (in dollars). Perfect Class B Ordinary Shares have the same rights as Perfect Class A Ordinary Shares except for voting and conversion rights. Each Perfect Class B Ordinary Shares is entitled to 10 votes and is convertible into Perfect Class A Ordinary Shares at any time by the holder thereof. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time at the option of the holder thereof. The right to convert shall be exercisable by the holder of the Class B Ordinary Share delivering a written notice to the Company that such holder elects to convert a specified number of Class B Ordinary Shares into Class A Ordinary Shares. Each Class B Ordinary Share shall, automatically and immediately, without any further action from the holder thereof, convert into one Class A Ordinary Share when it ceases being beneficially owned by any of the Principals. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances.

B.Movements for the Company’s share capital are as follows:

	Shares (in thousands)
At December 31, 2023	101,917
Retirement of treasury shares	(68)
At June 30, 2024	101,849

On February 7, 2024, the Company completed the retirement of 68 thousand of Class A Ordinary shares. These retired shares were acquired as part of the share repurchase plan announced on May 4, 2023.

C.Share Repurchase Plan

On May 4, 2023, the Board of Directors approved a share repurchase plan authorizing the Company may repurchase up to $20,000 of its Class A Ordinary shares over the next 12-month period. During this plan, the Company repurchased 259 thousand of Class A Ordinary shares with a total consideration paid amounted $1,064. The Company retired 191 thousand shares repurchased from this plan in 2023 and retired the remaining of 68 thousand shares in 2024.

D.Tender Offer

On November 24, 2023, the Board of Directors approved a tender offer, which commenced on November 27, 2023, and withdrawal rights expired on December 26, 2023, to purchase up to 16,129 thousand shares of Class A Ordinary at a price of $3.10 (in dollars) per share for an aggregate purchase price of approximately $50,000. The Company completed the repurchase, and all the purchased shares were retired on December 29, 2023.

6(14)    Capital surplus

Except as required by the Company’s Articles of Incorporation or Cayman’s law, capital surplus shall not be used for any other purpose but covering accumulated deficit. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

The following tables illustrates the detail of capital surplus:

	December 31, 2023		June 30, 2024
Additional paid-in capital	$	477,734	$	477,415
Other:
Employees’ stock option cost	5,430		6,867
Retirement of treasury shares	27,235		27,371
Subtotal	32,665		34,238
	$	510,399	$	511,653

6(15)    Accumulated deficits

Under the Company’s Articles of Incorporation, distribution of earnings would be based on the Company’s operating and capital needs.

6(16)    Revenue

	Six months ended June 30,
	2023		2024
Revenue from contracts with customers	$	24,832	$	28,194

A.Disaggregation of revenue from contracts with customers

(a)The Group derives revenue from the transfer of goods and services over time and at a point in time in the following geographical regions:

Six months ended June 30, 2023	United States		Japan		France		Others		Total
Revenue from external customer contracts	$	11,256	$	2,203	$	1,979	$	9,394	$	24,832
Timing of revenue recognition:
At a point in time	$	794	$	418	$	328	$	1,353	$	2,893
Over time	10,462		1,785		1,651		8,041		21,939
	$	11,256	$	2,203	$	1,979	$	9,394	$	24,832

Six months ended June 30, 2024	United States		Japan		France		Others		Total
Revenue from external customer contracts	$	11,308	$	2,748	$	2,427	$	11,711	$	28,194
Timing of revenue recognition:
At a point in time	$	505	$	575	$	520	$	793	$	2,393
Over time	10,803		2,173		1,907		10,918		25,801
	$	11,308	$	2,748	$	2,427	$	11,711	$	28,194

(b)Alternatively, the disaggregation of revenue could also be distinct as follows:

	Six months ended June 30,
	2023		2024
AR/AI cloud solutions and Subscription	$	21,359	$	25,305
Licensing	2,875		2,288
Advertisement	580		496
Others (Note)	18		105
	$	24,832	$	28,194

Note: Others are immaterial revenue streams to the Group.

(c)The revenue generated from AR/AI cloud solutions was $9,622, and $8,549 for the six months ended June 30, 2023 and 2024, respectively.

B.Contract assets and liabilities

(a)The Group has recognized the following revenue-related contract assets mainly arose from unbilled receivables and contract liabilities mainly arose from sales contracts with receipts from customers in

advance. Generally, the contract period is one year, the contract liabilities are reclassified as revenue within the following one year after the balance sheet date.

	December 31, 2023		June 30, 2024
Contract assets:
Unbilled revenue	$	2,770	$	1,543
Contract liabilities:
Advance sales receipts	$	15,346	$	16,858

(b)Revenue recognized that was included in the contract liability balance at the beginning of the period

	Six months ended June 30,
	2023		2024
Revenue recognized that was included in the contract liability balance at the beginning of the period
Advance sales receipts	$	9,763	$	11,877

(c)Unsatisfied contracts

Aggregate amount of the transaction price allocated to contracts that are partially or fully unsatisfied as of December 31, 2023 and June 30, 2024, amounting to $ 28,133 and $ 28,104, respectively. The Group expects that 93% of the transaction price allocated to the unsatisfied contracts as of June 30, 2024, are expected to be recognized as revenue less than one year. The remaining 7% is expected to be recognized as revenue from July 2025 to 2027.

6(17)    Interest income

	Six months ended June 30,
	2023		2024
Interest income from bank deposits	$	2,100	$	2,951
Interest income from financial assets at amortized cost	2,509		990
Others	—		11
	$	4,609	$	3,952

The nature of interest income from financial assets at amortized cost was time deposits with maturities over three months.

6(18)    Other income

	Six months ended June 30,
	2023		2024
Subsidy from government	$	—	$	14
Others	7		—
	$	7	$	14

6(19)    Other gains and losses

	Six months ended June 30,
	2023		2024
Foreign exchange losses	$	(215)	$	(337)
Gains (losses) on financial liabilities at fair value through profit or loss	(244)		46
	$	(459)	$	(291)

Please refer to Note 6(8) for details of gains (losses) on financial liabilities at fair value through profit or loss.

6(20)    Finance costs

	Six months ended June 30,
	2023		2024
Interest expense – lease liabilities	$	5	$	10

6(21)    Costs and expenses by nature

	Six months ended June 30,
	2023		2024
Cost of goods sold	$	2	$	11
Employee benefit expenses	13,516		14,479
Promotional fees	4,823		5,611
Platform fees	4,220		5,196
Professional service fees	2,893		2,710
Insurance expenses	1,170		723
Warranty cost	335		287
Depreciation of right-of-use assets	212		250
Depreciation of property, plant and equipment	114		94
Amortization of intangible assets	37		26
Others	1,110		1,392
	$	28,432	$	30,779

6(22)    Employee benefit expenses

	Six months ended June 30,
	2023		2024
Wages and salaries	$	10,425	$	11,107
Remuneration to directors	335		345
Employee insurance fees	685		711
Pension costs	388		416
Employee stock options	1,266		1,437
Other personnel expenses	417		463
	$	13,516	$	14,479

6(23)    Income tax

	Six months ended June 30,
	2023		2024
Current income tax:
Current tax expense recognized for the current period	$	63	$	574
Prior year income tax underestimation	—		6
Total current tax	63		580
Deferred income tax:
Origination and reversal of temporary differences	—		(894)
Taxable losses	—		—
Total deferred income tax	—		(894)
Income tax expense (benefit)	$	63	$	(314)

6(24)    Earnings per share

	Six months ended June 30, 2023
	Amount after tax		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$	489	118,248	$	0.004
Dilutive earnings per share
Profit attributable to ordinary shareholders of the Group plus assumed conversion of all dilutive potential ordinary shares	$	489	118,248	$	0.004

	Six months ended June 30, 2024
	Amount after tax		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$	1,394	101,849	$	0.014
Dilutive earnings per share
Profit attributable to ordinary shareholders of the Group plus assumed conversion of all dilutive potential ordinary shares	$	1,394	101,849	$	0.014

Note: Warrant liabilities, Employee stock options, Shareholder Earnout and Sponsor Earnout were excluded from the calculation of diluted earnings per share as they are anti-dilutive for the six months ended June 30, 2023 and 2024. As at December 31, 2023 and June 30, 2024, the potentially dilutive instruments are as follows:

	December 31, 2023	June 30, 2024
Potentially dilutive instruments (shares in thousands)
Warrant liabilities	20,850	20,850
Employee stock options	4,073	3,935
Shareholder Earnout	10,000	10,000
Sponsor Earnout	1,176	1,176
	36,099	35,961

6(25)    Changes in liabilities from financing activities

	2024
	Financial liabilities at fair value through profit or loss		Lease liabilities (including current portion)		Liabilities from financing activities-gross
At December 31, 2023	$	1,566	$	868	$	2,434
Changes in cash flow from financing activities	—		(239)		(239)
Change in fair value through profit and loss	(46)		—		(46)
Changes in other non-cash items – additions	—		82		82
At June 30, 2024	$	1,520	$	711	$	2,231

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Related Party Transactions

6 Months Ended

Jun. 30, 2024

Disclosure of transactions between related parties [abstract]

Related Party Transactions

Related Party Transactions

7(1)    Names of related parties and relationship

Names of related parties	Relationship with the Group
CyberLink Corp. (CyberLink)	Other related party (Significant influence (Note) over the Company)
CyberLink Inc. (CyberLink-Japan)	Other related party (Subsidiary of CyberLink)
ClinJeff Corp. (ClinJeff)	Other related party (Major shareholder of CyberLink)

Note: CyberLink owns more than 36% of the Company’s issued and outstanding ordinary shares.

7(2)    Significant related party transactions

A.Revenue

		Six months ended June 30,
	Description	2023		2024
CyberLink	Revenue-others (service revenue)	$	11	$	19

Sales of services are negotiated with related parties based on agreed-upon agreement and the conditions and payment terms are same as third parties.

B.Other payables

	December 31, 2023		June 30, 2024
CyberLink	$	26	$	28
CyberLink-Japan	24		22
	$	50	$	50

Other payables are mainly expenses from professional service, rental and payments on behalf of others.

C.Operating expenses

		Six months ended June 30,
	Description	2023		2024
CyberLink	Management service fee	$	26	$	26

CyberLink provides support and assistance in legal services, network infrastructure and equipment maintenance services, marketing activity supports and employee training programs. The service fees are calculated based on the agreed-upon hourly rate. The conditions and payment terms are same as third parties.

D.Lease transactions — lessee/rent expense

(a)The Group leases offices from CyberLink, ClinJeff and CyberLink-Japan. Rental contracts are typically made for periods of 1~2 years. The rents were paid to CyberLink and ClinJeff each month and were paid to CyberLink-Japan each quarter.

(b)Rent expense

	Six months ended June 30,
	2023		2024
CyberLink-Japan	$	44	$	39

(c)Acquisition of right-of-use assets:

	Six months ended June 30,
	2023		2024
CyberLink	$	390	$	—
ClinJeff	—		82
	$	390	$	82

(d)Lease liabilities

i.Outstanding balance:

	December 31, 2023		June 30, 2024
Total lease liabilities	$	381	$	343
Less: Current portion (shown as ‘current lease liabilities’)	(238)		(287)
	$	143	$	56

ii.Interest expense

	Six months ended June 30,
	2023		2024
CyberLink	$	1	$	4

7(3)    Key management compensation

	Six months ended June 30,
	2023		2024
Salaries and other short-term employee benefits	$	1,153	$	1,458
Share-based payment	386		177
Post-employment benefits	5		5
	$	1,544	$	1,640

The unpaid portion of the aforementioned information were $335 and $345 for June 30, 2023 and 2024.

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Pledged Assets

6 Months Ended

Jun. 30, 2024

Pledged Assets

Pledged Assets

Pledged Assets

None.

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Significant Contingent Liabilities and Unrecognized Contract Commitments

6 Months Ended

Jun. 30, 2024

Disclosure of contingent liabilities [abstract]

Significant Contingent Liabilities and Unrecognized Contract Commitments

Significant Contingent Liabilities and Unrecognized Contract Commitments

9(1)    Contingencies

None.

9(2)    Commitments

Except for Notes 6(6), 6(8) and 7(2), there is no other significant commitments.

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Significant Disaster Loss

6 Months Ended

Jun. 30, 2024

Significant Disaster Loss

Significant Disaster Loss

Significant Disaster Loss

None.

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Significant Events After the Balance Sheet Date	6 Months Ended
	Jun. 30, 2024
Disclosure of non-adjusting events after reporting period [abstract]
Significant Events After the Balance Sheet Date	Significant Events After the Balance Sheet DateNone

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Others

6 Months Ended

Jun. 30, 2024

Others

Others

Others

12(1)    Capital management

The Group’s objectives of capital management are to ensure the Group’s sustainable operation and to maintain an optimal capital structure to reduce the cost of capital and provide returns for shareholders. In order to maintain or adjust to optimal capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as total liabilities divided by total equity.

As of December 31, 2023 and June 30, 2024, the Group’s gearing ratios are as follows:

	December 31, 2023		June 30, 2024
Total liabilities	$	30,957	$	31,844
Total equity	$	139,406	$	141,986
Gearing ratio	0.22		0.22

12(2)    Financial instruments

A.Financial instruments by category

	December 31, 2023		June 30, 2024
Financial assets
Financial assets at amortized cost
Cash and cash equivalents	$	123,871	$	120,796
Current financial assets at amortized cost	30,300		37,970
Accounts receivable	6,992		7,102
Other receivables	343		737
Guarantee deposits paid	140		147
	$	161,646	$	166,752

	December 31, 2023		June 30, 2024
Financial liabilities
Financial liabilities at fair value through profit or loss
Warrant liabilities	$	1,566	$	1,520
Financial liabilities at amortized cost
Other payables (including related parties)	$	10,381	$	10,289
Guarantee deposits received	25		25
	$	10,406	$	10,314
Lease liabilities	$	868	$	711

B.Financial risk management policies

(a)The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance.

(b)Risk management is carried out by the Group’s finance department under policies approved by the management team. The Group’s finance department identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units.

C.Significant financial risks and degrees of financial risks

(a)Market risk

Foreign exchange risk

i.The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, JPY, RMB and EUR. Exchange rate risk arises from future commercial transactions and recognized assets and liabilities.

ii.The Group’s business involves some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: USD; other certain subsidiaries’ functional currency: JPY, RMB and EUR). The information of and sensitivity analysis for significant financial assets and liabilities denominated in foreign currencies illustrate as follows:

	December 31, 2023
								Sensitivity analysis
	Foreign currency amount (in thousands)		Exchange rate	Functional currency		Book value (USD)		Degree of variation	Effect on profit or loss
Financial assets
Monetary items
NTD:USD	$	79,097	0.0326	$	2,579	$	2,579	1%	$	26
EUR:USD	664		1.1064	735		735		1%	7
JPY:USD	317,217		0.0071	2,252		2,252		1%	23
Financial liabilities
Monetary items
EUR:USD	138		1.1064	153		153		1%	2
USD:JPY	168		141.39	23,754		168		1%	2

	June 30, 2024
								Sensitivity analysis
	Foreign currency amount (in thousands)		Exchange rate	Functional currency		Book value (USD)		Degree of variation		Effect on profit or loss
Financial assets
Monetary items
NTD:USD	$	41,085	0.0308	$	1,265	$	1,265	1	%	$	13
EUR:USD	172		1.0696	184		184		1	%	2
JPY:USD	432,341		0.0062	2,681		2,681		1	%	27
Financial liabilities
Monetary items
EUR:USD	192		1.0696	205		205		1	%	2
USD:JPY	155		160.88	24,936		155		1	%	2

iii.The total exchange loss, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the six months ended June 30, 2023 and 2024, amounted to $215 and $337, respectively.

(b)Credit risk

i.Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms and the contract cash flow of financial assets at amortized cost.

ii.The Group’s credit risk was mainly arising from bank deposits, trade receivables, other financial assets and deposits. The Company adopted a policy of only dealing with creditworthy counterparties and financial institutions to mitigate the risk of financial loss from defaults. The majority of cash and cash equivalents as well as current financial assets at amortized cost are held with financial institutions with a rating of ‘A’.

iii.The default occurs when the contract payments are past due over 180 days.

iv.The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

v.The following indicators are used to determine whether the credit impairment of accounts receivable has occurred:

(i)It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

(ii)Default or delinquency in principal repayments.

vi.The Group classifies customers’ accounts receivable in accordance with geographic area and credit rating of customer. The Group applies the modified approach to estimate expected credit loss under the provision matrix basis.

vii.The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

viii.The Group used the territory economic forecasts to adjust historical and timely information to assess the default possibility of accounts receivable.

ix.The loss amounts of accounts receivable allowance using simplified method were de minimis, thus, the loss was not recognized as at December 31, 2023 and June 30, 2024.

(c)Liquidity risk

i.Cash flow forecasting is performed in the operating entities of the Group and aggregated by the Group’s finance department. The Group’s finance department monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

ii.Surplus cash held by the operating entities over and above balance required for working capital management are managed by the Group’s finance department. The Group’s finance department invests surplus cash in interest bearing current accounts and time deposits, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts. As at December 31, 2023 and June 30, 2024, the Group held demand deposits and time deposits position of $151,847 and $156,584, respectively. The Group manages liquidity risk by ensuring that these balances are available to meet short-term cash needs. Time deposits withdrawn early receive a lower interest rate through the withdrawal date compared to the stated interest rate applicable on the nominal maturity date. However, there are no significant risk of change in value as a result of an early withdrawal for time deposits classified as cash equivalents.

iii.The table below analyses the Group’s non-derivative financial liabilities based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities: December 31, 2023	Less than 1 year		Between 2-5 years		Over 5 years
Financial liabilities at fair value through profit or loss	$	—	$	1,566	$	—
Other payables (including related parties)	10,381		—		—
Lease liabilities (Note)	496		392		—
Guarantee deposits received	—		25		—

Non-derivative financial liabilities: June 30, 2024	Less than 1 year		Between 2-5 years		Over 5 years
Financial liabilities at fair value through profit or loss	$	—	$	1,520	$	—
Other payables (including related parties)	10,289		—		—
Lease liabilities (Note)	535		189		—
Guarantee deposits received	—		25		—

Note: The amount included the interest of estimated future payments.

12(3)    Fair value information

A.The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which

transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

B.The carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, current financial assets at amortized cost, accounts receivable, other receivables (including related parties), guarantee deposits paid, accounts payable, other payables (including related parties) and guarantee deposits received) are approximate to their fair values.

C.The related information of financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the liabilities at December 31, 2023 and June 30, 2024 are as follows:

(a)The related information of natures of the liabilities is as follows:

December 31, 2023	Level 1		Level 2		Level 3		Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Compound instrument:
Warrant liabilities	$	954	$	612	$	—	$	1,566

June 30, 2024	Level 1		Level 2		Level 3		Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Compound instrument:
Warrant liabilities	$	922	$	598	$	—	$	1,520

(b)The methods and assumptions the Group used to measure fair value are as follows:

i.Except those mentioned in point (ii) ~ (iii) below, the carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, accounts receivable, other receivables, notes payable, accounts payable and other payables) approximate to their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(2).

ii.Fair value of the Perfect Public Warrants is determined based on market quotation price.

iii.Fair value of the Perfect Private Placement Warrants and Forward Purchase Warrants are determined based on the Perfect Public Warrants with adjustments to the implied volatility.

D.For the year ended December 31, 2023 and six months ended June 30, 2024, there was no transfer between Level 1 and Level 2.

E.For the year ended December 31, 2023 and six months ended June 30, 2024, there was no transfer into or out from Level 3.

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Segment Information

6 Months Ended

Jun. 30, 2024

Disclosure of operating segments [abstract]

Segment Information

Segment Information

13(1)    General information

Although the Group has multiple operating segments by geography, the management takes the aggregation criteria outlined in Paragraphs 11 to 14 of IFRS 8 into consideration to decide the reportable operating segments. In light of the qualitative and quantitative criteria, the Group concluded that it has only one reportable operating segment.

13(2)    Geographical information

Geographical information for the six months ended June 30, 2023 and 2024 is as follows:

	Six months ended June 30,
	2023		2024
	Revenue		Revenue
United States	$	11,256	$	11,308
Japan	2,203		2,748
France	1,979		2,427
Others	9,394		11,711
	$	24,832	$	28,194

Geographical information on the revenue shows the location in which sales were generated. Non-current assets amounted to $1,304 and $1,281 as of December 31, 2023 and June 30, 2024, respectively.

Substantially all of the Group’s non-current assets, including property, plant and equipment, right-of-use assets and intangible assets, are located in Taiwan.

13(3)    Major customer information

There is no major customer of the Group (exceed 10% of revenue) for the six months ended June 30, 2023 and 2024.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Summary of Significant Accounting Policies

Compliance statement

Compliance statement

These unaudited condensed interim consolidated financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the IASB.

Basis of preparation

Basis of preparation

A.Except for the following items, the unaudited condensed interim consolidated financial statements have been prepared under the historical cost convention:

(a)Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

(b)Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

B.The preparation of the unaudited condensed interim consolidated financial statements in conformity with IAS 34 Interim Financial Reporting requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the unaudited condensed interim consolidated financial statements are disclosed in Note 5.

Basis of consolidation

Basis of consolidation

A.Basis for preparation of unaudited condensed interim consolidated financial statements:

(a)All subsidiaries are included in the Group’s unaudited condensed interim consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

(b)Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

(c)When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B.Subsidiaries included in the unaudited condensed interim consolidated financial statements:

			Ownership (%)
Name of investor	Name of subsidiary	Main business activities	December 31, 2023	June 30, 2024
The Company	Perfect Mobile Corp. (Taiwan)	Design, development, marketing and sales of AR/AI SaaS solution and mobile applications.	100%	100%
The Company	Perfect Corp. (USA)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Corp. (Japan)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Corp. (Shanghai)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Mobile Corp.(B.V.I.)	Investment activities.	100%	100%
Perfect Mobile Corp. (Taiwan)	Perfect Corp. (France)	Marketing and service center for sales of AR/AI SaaS solution.	100%	100%

C.Subsidiaries not included in the consolidated financial statements:

None.

D.Adjustments for subsidiaries with different balance sheet dates:

None.

E.Significant restrictions:

None.

F.Subsidiaries that have non-controlling interests that are material to the Group:

None.

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Application of New Standards, Amendments and Interpretations (Tables)

6 Months Ended

Jun. 30, 2024

Disclosure of initial application of standards or interpretations [abstract]

Summary of new and amended standards adopted by the group

New standards, interpretations and amendments issued by International Accounting Standards Board (the “IASB”) and became effective from 2024 are as follows:

New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’	January 1, 2024
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024

Summary of new and revised International financial reporting standards not yet adopted

New and amendments to IFRSs which have been published but are not mandatory for the financial period ending June 30, 2024 are listed below:

New Standards, Interpretations and Amendments	Effective date by IASB
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
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial Instruments’	January 1, 2026
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Summary of Significant Accounting Policies

Summary of subsidiaries included in the consolidated financial statements

Subsidiaries included in the unaudited condensed interim consolidated financial statements:

			Ownership (%)
Name of investor	Name of subsidiary	Main business activities	December 31, 2023	June 30, 2024
The Company	Perfect Mobile Corp. (Taiwan)	Design, development, marketing and sales of AR/AI SaaS solution and mobile applications.	100%	100%
The Company	Perfect Corp. (USA)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Corp. (Japan)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Corp. (Shanghai)	Marketing and sales of AR/AI SaaS solution.	100%	100%
The Company	Perfect Mobile Corp.(B.V.I.)	Investment activities.	100%	100%
Perfect Mobile Corp. (Taiwan)	Perfect Corp. (France)	Marketing and service center for sales of AR/AI SaaS solution.	100%	100%

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Details of Significant Accounts (Tables)

6 Months Ended

Jun. 30, 2024

Details of Significant Accounts

Schedule of cash and cash equivalents

Cash and cash equivalents

	December 31, 2023		June 30, 2024
Petty cash	$	1	$	1
Checking accounts	2,139		1,976
Demand deposits	12,547		15,114
Time deposits	109,000		103,500
Others	184		205
	$	123,871	$	120,796

Schedule of current financial assets at amortized cost

Current financial assets at amortized cost

	December 31, 2023		June 30, 2024
Time deposits with maturities over three months	$	30,300	$	37,970

Schedule of accounts receivable

Accounts receivable

	December 31, 2023		June 30, 2024
Accounts receivable	$	6,992	$	7,102

Schedule of ageing analysis of accounts receivable

The ageing analysis of accounts receivable is as follows:

	December 31, 2023		June 30, 2024
Not past due	$	5,791	$	5,399
Up to 30 days	594		563
31 to 90 days	340		302
91 to 180 days	196		643
Over 181 days	71		195
	$	6,992	$	7,102

Schedule of other current assets

Other current assets

	December 31, 2023		June 30, 2024
Prepaid expenses	$	3,773	$	2,761
Others	269		71
	$	4,042	$	2,832

Schedule of property, plant and equipment

Property, plant and equipment

	Leasehold improvements		Machinery		Office equipment		Total
At December 31, 2023
Cost	$	675	$	729	$	53	$	1,457
Accumulated depreciation	(553)		(488)		(36)		(1,077)
	$	122	$	241	$	17	$	380
Opening net book amount	$	122	$	241	$	17	$	380
Additions	69		190		—		259
Depreciation expense	(27)		(64)		(3)		(94)
Closing net book amount	$	164	$	367	$	14	$	545
At June 30, 2024
Cost	$	744	$	919	$	53	$	1,716
Accumulated depreciation	(580)		(552)		(39)		(1,171)
	$	164	$	367	$	14	$	545

Schedule of movements of right-of-use assets

The movements of right-of-use assets of the Group are as follows:

	Buildings		Business vehicles		Total
At December 31, 2023
Cost	$	942	$	202	$	1,144
Accumulated depreciation	(237)		(60)		(297)
	$	705	$	142	$	847
Opening net book amount	$	705	$	142	$	847
Additions	82		—		82
Depreciation expense	(204)		(46)		(250)
Closing net book amount	$	583	$	96	$	679
At June 30, 2024
Cost	$	1,024	$	202	$	1,226
Accumulated depreciation	(441)		(106)		(547)
	$	583	$	96	$	679

Schedule of lease liabilities relating to lease contracts

Lease liabilities relating to lease contracts:

	December 31, 2023		June 30, 2024
Total lease liabilities	$	868	$	711
Less: current portion (shown as ‘current lease liabilities’)	(481)		(524)
	$	387	$	187

Schedule of information on profit and loss accounts relating to lease contracts

The information on profit and loss accounts relating to lease contracts is as follows:

	Six months ended June 30,
	2023		2024
Items affecting profit or loss
Interest expense on lease liabilities	$	5	$	10
Expense on short-term lease contracts	193		177
	$	198	$	187

Schedule of intangible assets

Intangible assets

	Software		Other intangible assets		Total
At December 31, 2023
Cost	$	137	$	89	$	226
Accumulated amortization	(68)		(81)		(149)
	$	69	$	8	$	77
Opening net book amount	$	69	$	8	$	77
Additions	6		—		6
Cost of disposals	—		(74)		(74)
Accumulated amortization on disposals	—		74		74
Amortization charge	(24)		(2)		(26)
Closing net book amount	$	51	$	6	$	57
At June 30, 2024
Cost	$	143	$	15	$	158
Accumulated amortization	(92)		(9)		(101)
	$	51	$	6	$	57

Schedule of amortization on intangible assets

Details of amortization on intangible assets are as follows:

	Six months ended June 30,
	2023		2024
Research and development expenses	$	37	$	26

Schedule of financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss

	December 31, 2023		June 30, 2024
Non-current items:
Warrant liabilities	$	8,431	$	8,431
Add: Valuation adjustment	(6,865)		(6,911)
	$	1,566	$	1,520

Schedule of amounts recognized in profit or loss and other comprehensive income in relation to financial liabilities at fair value through profit or loss

Amounts recognized in profit or loss and other comprehensive income in relation to financial liabilities at fair value through profit or loss are as follows:

	Six months ended June 30,
	2023		2024
Net gains (losses) recognized in profit or loss
Warrant liabilities	$	(244)	$	46

Schedule of movement in all kinds of Perfect warrants

Movements in all kinds of Perfect Warrants are as follows:

	Public Warrants (units in thousands)	Private Placement Warrants (units in thousands)	Forward Purchase Warrants (units in thousands)
At December 31, 2023	12,750	6,600	1,500
At June 30, 2024	12,750	6,600	1,500

Schedule of other payables

Other payables

	December 31, 2023		June 30, 2024
Employee bonus	$	4,662	$	5,200
Payroll	2,228		1,532
Remuneration to directors	115		460
Promotional fees	1,090		1,437
Professional service fees	1,415		750
Sales VAT payables	126		205
Post and telecommunications expenses	171		214
Others	524		441
	$	10,331	$	10,239

Schedule of provisions

Provisions

	Warranty
At December 31, 2023	$	2,394
Additional provisions	287
Used during the period	(850)
Net exchange differences	(56)
At June 30, 2024	$	1,775

Schedule of analysis of total provisions

Analysis of total provisions:

	December 31, 2023		June 30, 2024
Current	$	2,394	$	1,775

Schedule of terms and condition

For the six months ended June 30, 2023 and 2024, the Group’s Share Incentive Plan’s terms and condition are as follows:

Plan	Type of arrangement	Settled by	Maximum terms of option granted	Vesting conditions
Share Incentive Plan	Employee stock options	Equity	Five years	2 years’ service: exercise 50%
				3 years’ service: exercise 75%
				4 years’ service: exercise 100%

Schedule of movements of outstanding options under share incentive plan

Movements of outstanding options under Share Incentive Plan are as follows:

	2023			2024
	No. of options (units in thousands)	Weighted- average exercise price per share (in dollars)		No. of options (units in thousands)	Weighted- average exercise price per share (in dollars)
Options outstanding at January 1	2,063	$	3.95	4,073	$	4.47
Options granted	2,276	4.94		5	2.13
Options forfeited	(67)	4.04		(143)	4.50
Options outstanding at June 30	4,272	4.48		3,935	4.47
Options exercisable at June 30	—			914

Schedule of fair value of stock options granted on grant date measured using the black-scholes option-pricing model

The fair value of stock options granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Plan	Grant date	Units granted  (in thousands)	Stock price per share (in dollars)		Exercise price per share (in dollars)		Expected price volatility	Expected option life	Expected dividends	Risk-free interest rate	Fair value per unit (in dollars)
Share Incentive Plan	2022.01.21	2,143	$	5.39	$	3.95	53.75%	3.88	0.00%	1.46%	$	2.7637
	2023.01.03	8	7.20		7.20		64.85%	3.87	0.00%	4.07%	3.7198
	2023.05.23	2,260	4.93		4.93		69.15%	3.88	0.00%	3.90%	2.6615
	2023.08.21	7	4.00		3.916		70.65%	3.88	0.00%	4.64%	2.2411
	2023.11.02	5	2.43		2.43		70.37%	3.88	0.00%	4.77%	1.3487
	2024.05.27	5	2.13		2.13		72.67%	3.88	0.00%	4.65%	1.2069

Note i: Stock price, exercise price and fair value of stock option granted on January 21, 2022 were adjusted in connection with the recapitalization. All amounts in the table are presented on a consistent adjusted basis.

Note ii: Expected price volatility is estimated based on the daily historical stock price fluctuation data of the Company and guideline companies of the last five years before the grant date.

Schedule of expenses incurred on share-based payment transactions

Expenses incurred on share-based payment transactions are shown below:

	Six months ended June 30,
	2023		2024
Equity settled	$	1,441	$	1,437

Schedule of illustrates movement for the company's share capital

Movements for the Company’s share capital are as follows:

	Shares (in thousands)
At December 31, 2023	101,917
Retirement of treasury shares	(68)
At June 30, 2024	101,849

Schedule of capital surplus

The following tables illustrates the detail of capital surplus:

	December 31, 2023		June 30, 2024
Additional paid-in capital	$	477,734	$	477,415
Other:
Employees’ stock option cost	5,430		6,867
Retirement of treasury shares	27,235		27,371
Subtotal	32,665		34,238
	$	510,399	$	511,653

Schedule of revenue from contracts with customers

Revenue

	Six months ended June 30,
	2023		2024
Revenue from contracts with customers	$	24,832	$	28,194

Schedule of disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following geographical regions:

Six months ended June 30, 2023	United States		Japan		France		Others		Total
Revenue from external customer contracts	$	11,256	$	2,203	$	1,979	$	9,394	$	24,832
Timing of revenue recognition:
At a point in time	$	794	$	418	$	328	$	1,353	$	2,893
Over time	10,462		1,785		1,651		8,041		21,939
	$	11,256	$	2,203	$	1,979	$	9,394	$	24,832

Six months ended June 30, 2024	United States		Japan		France		Others		Total
Revenue from external customer contracts	$	11,308	$	2,748	$	2,427	$	11,711	$	28,194
Timing of revenue recognition:
At a point in time	$	505	$	575	$	520	$	793	$	2,393
Over time	10,803		2,173		1,907		10,918		25,801
	$	11,308	$	2,748	$	2,427	$	11,711	$	28,194

(b)Alternatively, the disaggregation of revenue could also be distinct as follows:

	Six months ended June 30,
	2023		2024
AR/AI cloud solutions and Subscription	$	21,359	$	25,305
Licensing	2,875		2,288
Advertisement	580		496
Others (Note)	18		105
	$	24,832	$	28,194

Schedule of contract assets and contract liabilities

	December 31, 2023		June 30, 2024
Contract assets:
Unbilled revenue	$	2,770	$	1,543
Contract liabilities:
Advance sales receipts	$	15,346	$	16,858

Schedule of revenue recognized that was included in contract liability balance at beginning of the period

	Six months ended June 30,
	2023		2024
Revenue recognized that was included in the contract liability balance at the beginning of the period
Advance sales receipts	$	9,763	$	11,877

Schedule of interest income

Interest income

	Six months ended June 30,
	2023		2024
Interest income from bank deposits	$	2,100	$	2,951
Interest income from financial assets at amortized cost	2,509		990
Others	—		11
	$	4,609	$	3,952

Schedule of other income

Other income

	Six months ended June 30,
	2023		2024
Subsidy from government	$	—	$	14
Others	7		—
	$	7	$	14

Schedule of other gains and losses

Other gains and losses

	Six months ended June 30,
	2023		2024
Foreign exchange losses	$	(215)	$	(337)
Gains (losses) on financial liabilities at fair value through profit or loss	(244)		46
	$	(459)	$	(291)

Schedule of finance costs

Finance costs

	Six months ended June 30,
	2023		2024
Interest expense – lease liabilities	$	5	$	10

Schedule of costs and expenses by nature

Costs and expenses by nature

	Six months ended June 30,
	2023		2024
Cost of goods sold	$	2	$	11
Employee benefit expenses	13,516		14,479
Promotional fees	4,823		5,611
Platform fees	4,220		5,196
Professional service fees	2,893		2,710
Insurance expenses	1,170		723
Warranty cost	335		287
Depreciation of right-of-use assets	212		250
Depreciation of property, plant and equipment	114		94
Amortization of intangible assets	37		26
Others	1,110		1,392
	$	28,432	$	30,779

Schedule of employee benefit expenses

Employee benefit expenses

	Six months ended June 30,
	2023		2024
Wages and salaries	$	10,425	$	11,107
Remuneration to directors	335		345
Employee insurance fees	685		711
Pension costs	388		416
Employee stock options	1,266		1,437
Other personnel expenses	417		463
	$	13,516	$	14,479

Schedule of income tax expense

Income tax

	Six months ended June 30,
	2023		2024
Current income tax:
Current tax expense recognized for the current period	$	63	$	574
Prior year income tax underestimation	—		6
Total current tax	63		580
Deferred income tax:
Origination and reversal of temporary differences	—		(894)
Taxable losses	—		—
Total deferred income tax	—		(894)
Income tax expense (benefit)	$	63	$	(314)

Schedule of earnings (losses) per share

Earnings per share

	Six months ended June 30, 2023
	Amount after tax		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$	489	118,248	$	0.004
Dilutive earnings per share
Profit attributable to ordinary shareholders of the Group plus assumed conversion of all dilutive potential ordinary shares	$	489	118,248	$	0.004

	Six months ended June 30, 2024
	Amount after tax		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$	1,394	101,849	$	0.014
Dilutive earnings per share
Profit attributable to ordinary shareholders of the Group plus assumed conversion of all dilutive potential ordinary shares	$	1,394	101,849	$	0.014

Schedule of potential dilutive instruments not included in calculation of diluted earnings per share

As at December 31, 2023 and June 30, 2024, the potentially dilutive instruments are as follows:

	December 31, 2023	June 30, 2024
Potentially dilutive instruments (shares in thousands)
Warrant liabilities	20,850	20,850
Employee stock options	4,073	3,935
Shareholder Earnout	10,000	10,000
Sponsor Earnout	1,176	1,176
	36,099	35,961

Schedule of changes in liabilities from financing activities

Changes in liabilities from financing activities

	2024
	Financial liabilities at fair value through profit or loss		Lease liabilities (including current portion)		Liabilities from financing activities-gross
At December 31, 2023	$	1,566	$	868	$	2,434
Changes in cash flow from financing activities	—		(239)		(239)
Change in fair value through profit and loss	(46)		—		(46)
Changes in other non-cash items – additions	—		82		82
At June 30, 2024	$	1,520	$	711	$	2,231

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2024

Disclosure of transactions between related parties [abstract]

Schedule of significant related party transactions

Names of related parties and relationship

Names of related parties	Relationship with the Group
CyberLink Corp. (CyberLink)	Other related party (Significant influence (Note) over the Company)
CyberLink Inc. (CyberLink-Japan)	Other related party (Subsidiary of CyberLink)
ClinJeff Corp. (ClinJeff)	Other related party (Major shareholder of CyberLink)

Revenue

		Six months ended June 30,
	Description	2023		2024
CyberLink	Revenue-others (service revenue)	$	11	$	19

Other payables

	December 31, 2023		June 30, 2024
CyberLink	$	26	$	28
CyberLink-Japan	24		22
	$	50	$	50

Operating expenses

		Six months ended June 30,
	Description	2023		2024
CyberLink	Management service fee	$	26	$	26

Rent expense

	Six months ended June 30,
	2023		2024
CyberLink-Japan	$	44	$	39

Acquisition of right-of-use assets:

	Six months ended June 30,
	2023		2024
CyberLink	$	390	$	—
ClinJeff	—		82
	$	390	$	82

Outstanding balance:

	December 31, 2023		June 30, 2024
Total lease liabilities	$	381	$	343
Less: Current portion (shown as ‘current lease liabilities’)	(238)		(287)
	$	143	$	56

Interest expense

	Six months ended June 30,
	2023		2024
CyberLink	$	1	$	4

Schedule of key management compensation

Key management compensation

	Six months ended June 30,
	2023		2024
Salaries and other short-term employee benefits	$	1,153	$	1,458
Share-based payment	386		177
Post-employment benefits	5		5
	$	1,544	$	1,640

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Others (Tables)

6 Months Ended

Jun. 30, 2024

Others

Schedule of gearing ratios

As of December 31, 2023 and June 30, 2024, the Group’s gearing ratios are as follows:

	December 31, 2023		June 30, 2024
Total liabilities	$	30,957	$	31,844
Total equity	$	139,406	$	141,986
Gearing ratio	0.22		0.22

Schedule of financial instruments by category

Financial instruments by category

	December 31, 2023		June 30, 2024
Financial assets
Financial assets at amortized cost
Cash and cash equivalents	$	123,871	$	120,796
Current financial assets at amortized cost	30,300		37,970
Accounts receivable	6,992		7,102
Other receivables	343		737
Guarantee deposits paid	140		147
	$	161,646	$	166,752

	December 31, 2023		June 30, 2024
Financial liabilities
Financial liabilities at fair value through profit or loss
Warrant liabilities	$	1,566	$	1,520
Financial liabilities at amortized cost
Other payables (including related parties)	$	10,381	$	10,289
Guarantee deposits received	25		25
	$	10,406	$	10,314
Lease liabilities	$	868	$	711

Schedule of significant financial assets and liabilities denominated in foreign currencies

sensitivity analysis for significant financial assets and liabilities denominated in foreign currencies illustrate as follows:

	December 31, 2023
								Sensitivity analysis
	Foreign currency amount (in thousands)		Exchange rate	Functional currency		Book value (USD)		Degree of variation	Effect on profit or loss
Financial assets
Monetary items
NTD:USD	$	79,097	0.0326	$	2,579	$	2,579	1%	$	26
EUR:USD	664		1.1064	735		735		1%	7
JPY:USD	317,217		0.0071	2,252		2,252		1%	23
Financial liabilities
Monetary items
EUR:USD	138		1.1064	153		153		1%	2
USD:JPY	168		141.39	23,754		168		1%	2

	June 30, 2024
								Sensitivity analysis
	Foreign currency amount (in thousands)		Exchange rate	Functional currency		Book value (USD)		Degree of variation		Effect on profit or loss
Financial assets
Monetary items
NTD:USD	$	41,085	0.0308	$	1,265	$	1,265	1	%	$	13
EUR:USD	172		1.0696	184		184		1	%	2
JPY:USD	432,341		0.0062	2,681		2,681		1	%	27
Financial liabilities
Monetary items
EUR:USD	192		1.0696	205		205		1	%	2
USD:JPY	155		160.88	24,936		155		1	%	2

Schedule of contractual undiscounted cash flows of non-derivative financial liabilities

The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities: December 31, 2023	Less than 1 year		Between 2-5 years		Over 5 years
Financial liabilities at fair value through profit or loss	$	—	$	1,566	$	—
Other payables (including related parties)	10,381		—		—
Lease liabilities (Note)	496		392		—
Guarantee deposits received	—		25		—

Non-derivative financial liabilities: June 30, 2024	Less than 1 year		Between 2-5 years		Over 5 years
Financial liabilities at fair value through profit or loss	$	—	$	1,520	$	—
Other payables (including related parties)	10,289		—		—
Lease liabilities (Note)	535		189		—
Guarantee deposits received	—		25		—

Note: The amount included the interest of estimated future payments.

Schedule of natures of the liabilities

The related information of natures of the liabilities is as follows:

December 31, 2023	Level 1		Level 2		Level 3		Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Compound instrument:
Warrant liabilities	$	954	$	612	$	—	$	1,566

June 30, 2024	Level 1		Level 2		Level 3		Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Compound instrument:
Warrant liabilities	$	922	$	598	$	—	$	1,520

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Disclosure of operating segments [abstract]

Schedule of Geographical information

Geographical information for the six months ended June 30, 2023 and 2024 is as follows:

	Six months ended June 30,
	2023		2024
	Revenue		Revenue
United States	$	11,256	$	11,308
Japan	2,203		2,748
France	1,979		2,427
Others	9,394		11,711
	$	24,832	$	28,194

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History and Organization (Details) $ / shares in Units, $ in Thousands					6 Months Ended	18 Months Ended
	Feb. 07, 2024 shares	Nov. 24, 2023 USD ($) $ / shares shares	May 04, 2023 USD ($)	Oct. 28, 2022 $ / shares shares	Jun. 30, 2024 $ / shares shares	Jun. 30, 2024 $ / shares shares	Dec. 31, 2023 $ / shares
History and Organization
Common stock conversion ratio				0.17704366
Shares retired (in shares) | shares					68,000	16,388,000
Perfect common share
History and Organization
Par value per share (in USD per share)				$ 0.1
Perfect Class A Ordinary Shares
History and Organization
Par value per share (in USD per share)					$ 0.1	$ 0.1	$ 0.1
Number of perfect class A ordinary share issued upon requested redemption of each provident share (in USD per share)				$ 0.1
Number of shares after share combination (in shares) | shares				1
Stock repurchase program authorized shares (in shares) | shares		16,129,032
Share price per share (in USD per share)		$ 3.10
Share repurchase, authorised amount | $		$ 50,000	$ 20,000
Shares retired (in shares) | shares	68,000	16,129,010
Perfect Class B Ordinary Shares
History and Organization
Par value per share (in USD per share)					$ 0.1	$ 0.1	$ 0.1
Number of perfect class A ordinary share issued upon requested redemption of each provident share (in USD per share)				$ 0.1
Provident Class A Ordinary Shares
History and Organization
Par value per share (in USD per share)				0.0001
Provident Class B Ordinary Shares
History and Organization
Par value per share (in USD per share)				$ 0.0001

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Summary of Significant Accounting Policies (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Perfect Mobile Corp. (Taiwan)
Disclosure of subsidiaries [line items]
Ownership percentage	100.00%	100.00%
Perfect Corp. (USA)
Disclosure of subsidiaries [line items]
Ownership percentage	100.00%	100.00%
Perfect Corp. (Japan)
Disclosure of subsidiaries [line items]
Ownership percentage	100.00%	100.00%
Perfect Corp. (Shanghai)
Disclosure of subsidiaries [line items]
Ownership percentage	100.00%	100.00%
Perfect Mobile Corp.(B.V.I.)
Disclosure of subsidiaries [line items]
Ownership percentage	100.00%	100.00%
Perfect Corp. (France)
Disclosure of subsidiaries [line items]
Ownership percentage	100.00%	100.00%

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Details of Significant Accounts - Cash and cash equivalents, schedule of cash and cash equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Details of Significant Accounts
Petty cash	$ 1	$ 1
Checking accounts	1,976	2,139
Demand deposits	15,114	12,547
Time deposits	103,500	109,000
Others	205	184
Cash and cash equivalents	$ 120,796	$ 123,871	$ 37,168	$ 162,616

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Details of Significant Accounts - Cash and cash equivalents - Additional Information (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Details of Significant Accounts
Percentage of cash and cash equivalents in reporting currency	95.00%
Cash and cash equivalent pledged	$ 0

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Details of Significant Accounts - Current financial assets, schedule of current financial assets at amortized cost (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Details of Significant Accounts
Time deposits with maturities over three months	$ 37,970	$ 30,300

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Details of Significant Accounts - Current financial assets at amortized cost - Additional Information (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Details of Significant Accounts
Financial assets at amortised cost pledged to others	$ 0
Percentage of financial assets at amortized cost denominated in reporting currency	95.00%

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Details of Significant Accounts - Accounts receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Details of Significant Accounts
Accounts receivable	$ 7,102	$ 6,992	$ 7,756

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Details of Significant Accounts - Accounts receivable, schedule of ageing analysis of accounts receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Trade and other current receivables [abstract]
Accounts receivable	$ 7,102	$ 6,992	$ 7,756
Not past due
Trade and other current receivables [abstract]
Accounts receivable	5,399	5,791
Up to 30 days
Trade and other current receivables [abstract]
Accounts receivable	563	594
31 to 90 days
Trade and other current receivables [abstract]
Accounts receivable	302	340
91 to 180 days
Trade and other current receivables [abstract]
Accounts receivable	643	196
Over 181 days
Trade and other current receivables [abstract]
Accounts receivable	$ 195	$ 71

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Details of Significant Accounts - Accounts receivable, additional information (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Details of Significant Accounts
Accounts receivable	$ 7,102	$ 6,992	$ 7,756
Maximum exposure to credit risk in respect of amount that best represents accounts receivable	$ 7,102	$ 6,992

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Details of Significant Accounts - Schedule of other current assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Details of Significant Accounts
Prepaid expenses	$ 2,761	$ 3,773
Others	71	269
Total	$ 2,832	$ 4,042

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Details of Significant Accounts - Schedule of property, plant and equipment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	$ 380
Additions	259
Depreciation expense	(94)	$ (114)
Closing net book amount	545
Cost
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	1,457
Closing net book amount	1,716
Accumulated depreciation
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	(1,077)
Closing net book amount	(1,171)
Leasehold improvements
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	122
Additions	69
Depreciation expense	(27)
Closing net book amount	164
Leasehold improvements | Cost
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	675
Closing net book amount	744
Leasehold improvements | Accumulated depreciation
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	(553)
Closing net book amount	(580)
Machinery
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	241
Additions	190
Depreciation expense	(64)
Closing net book amount	367
Machinery | Cost
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	729
Closing net book amount	919
Machinery | Accumulated depreciation
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	(488)
Closing net book amount	(552)
Office equipment
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	17
Additions	0
Depreciation expense	(3)
Closing net book amount	14
Office equipment | Cost
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	53
Closing net book amount	53
Office equipment | Accumulated depreciation
Reconciliation of changes in property, plant and equipment [abstract]
Opening net book amount	(36)
Closing net book amount	$ (39)

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Details of Significant Accounts - Schedule of property, plan and equipment - Additional Information (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Details of Significant Accounts
Property, plant and equipment, pledged as security	$ 0

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Details of Significant Accounts - Leasing arrangements - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Disclosure of quantitative information about right-of-use assets [line items]
Lease commitments for short-term leases	$ 148	$ 136
Minimum
Disclosure of quantitative information about right-of-use assets [line items]
Lease term	2 years
Maximum
Disclosure of quantitative information about right-of-use assets [line items]
Lease term	3 years

XML

Details of Significant Accounts - Leasing arrangements, schedule of movements of right-of-use assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	$ 847
Additions	82	$ 390
Depreciation expense	(250)	$ (212)
Closing net book amount	679
Cost
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	1,144
Closing net book amount	1,226
Accumulated depreciation
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	(297)
Closing net book amount	(547)
Buildings
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	705
Additions	82
Depreciation expense	(204)
Closing net book amount	583
Buildings | Cost
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	942
Closing net book amount	1,024
Buildings | Accumulated depreciation
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	(237)
Closing net book amount	(441)
Business vehicles
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	142
Additions	0
Depreciation expense	(46)
Closing net book amount	96
Business vehicles | Cost
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	202
Closing net book amount	202
Business vehicles | Accumulated depreciation
Disclosure of quantitative information about right-of-use assets [line items]
Opening net book amount	(60)
Closing net book amount	$ (106)

XML

Details of Significant Accounts - Leasing arrangements, schedule of lease liabilities relating to lease contracts (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Details of Significant Accounts
Total lease liabilities	$ 711	$ 868
Less: current portion (shown as ‘current lease liabilities’)	(524)	(481)
Non-current lease liabilities	$ 187	$ 387

XML

Details of Significant Accounts - Leasing arrangements, schedule of information on profit and loss accounts (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Items affecting profit or loss
Interest expense on lease liabilities	$ 10	$ 5
Expense on short-term lease contracts	177	193
Items affecting profit or loss due to leases	$ 187	$ 198

XML

Details of Significant Accounts - Leasing arrangements - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Cash outflow for leases	$ 426	$ 401
Interest expense on lease liabilities	10	5
Expense on short-term lease contracts	177	193
Repayments of principal portion of lease liabilities	$ 239	$ 203

XML

Details of Significant Accounts - Intangible assets, schedule of intangible assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	$ 77
Additions	6
Amortization charge	(26)	$ (37)
Closing net book amount	57
Cost
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	226
Disposals, intangible assets other than goodwill	(74)
Closing net book amount	158
Accumulated depreciation
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	(149)
Disposals, intangible assets other than goodwill	74
Closing net book amount	(101)
Software
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	69
Additions	6
Amortization charge	(24)
Closing net book amount	51
Software | Cost
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	137
Disposals, intangible assets other than goodwill	0
Closing net book amount	143
Software | Accumulated depreciation
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	(68)
Disposals, intangible assets other than goodwill	0
Closing net book amount	(92)
Other intangible assets
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	8
Additions	0
Amortization charge	(2)
Closing net book amount	6
Other intangible assets | Cost
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	89
Disposals, intangible assets other than goodwill	(74)
Closing net book amount	15
Other intangible assets | Accumulated depreciation
Reconciliation of changes in intangible assets other than goodwill [abstract]
Opening net book amount	(81)
Disposals, intangible assets other than goodwill	74
Closing net book amount	$ (9)

XML

Details of Significant Accounts - Intangible assets, schedule of amortization on intangible assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure of detailed information about intangible assets [line items]
Amortization of intangible assets	$ 26	$ 37
Research and development expenses
Disclosure of detailed information about intangible assets [line items]
Amortization of intangible assets	$ 26	$ 37

XML

Details of Significant Accounts - Financial liabilities, schedule of financial liabilities at fair value through profit or loss (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Non-current items:
Non-current warrant liabilities	$ 1,520	$ 1,566
Warrant liabilities
Non-current items:
Non-current warrant liabilities	8,431	8,431
Add: Valuation adjustment	$ (6,911)	$ (6,865)

XML

Details of Significant Accounts - Financial liabilities at FV, schedule of amounts recognized in profit or loss and OCI in relation to financial liabilities at fair value through profit or loss (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Warrant liabilities
Disclosure of financial liabilities [line items]
Net losses recognized in profit or loss, financial liabilities designated as at fair value through profit or loss	$ 46	$ (244)

XML

Details of Significant Accounts - Financial liabilities at FV, warrant liabilities - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands				6 Months Ended
	Nov. 20, 2023	Oct. 27, 2022	Jan. 07, 2021	Jun. 30, 2024	Dec. 31, 2023
Disclosure of financial liabilities [line items]
Minimum threshold written notice period for redemption of warrants				30 days
Forward Purchase Agreements
Disclosure of financial liabilities [line items]
Number of forward purchase shares issued and sold (in shares)		5,500,000
Aggregate purchase price		$ 55,000
Public Warrants and Forward Purchase Warrants | Redemption of warrants when the price per perfect class A ordinary shares equal or exceed $18.00
Disclosure of financial liabilities [line items]
Stock price trigger for redemption of warrants (in dollars per share)				$ 18.00
Public Warrants and Forward Purchase Warrants | Redemption of warrants when the price per class A ordinary share equals or exceeds $10.00
Disclosure of financial liabilities [line items]
Stock price trigger for redemption of warrants (in dollars per share)				$ 10.00
Private Placement Warrants
Disclosure of financial liabilities [line items]
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination				30 days
Private Placement Warrants | Redemption of warrants when the price per perfect class A ordinary shares equal or exceed $18.00
Disclosure of financial liabilities [line items]
Stock price trigger for redemption of warrants (in dollars per share)				$ 18.00
Private Placement Warrants | Redemption of warrants when the price per class A ordinary share equals or exceeds $10.00
Disclosure of financial liabilities [line items]
Stock price trigger for redemption of warrants (in dollars per share)				$ 10.00
Warrant liabilities
Disclosure of financial liabilities [line items]
Number of shares called by each warrant (in shares)				20,850,000
Warrant liabilities | Public Warrants
Disclosure of financial liabilities [line items]
Number of shares called by each warrant (in shares)				12,750,000	12,750,000
Number of warrants issued and sold (in shares)				11,500,000
Warrant liabilities | Public Warrants and Forward Purchase Warrants
Disclosure of financial liabilities [line items]
Warrants converted during period (in shares)	1,250,000
Warrant liabilities | Public Warrants and Forward Purchase Warrants | Redemption of warrants when the price per perfect class A ordinary shares equal or exceed $18.00
Disclosure of financial liabilities [line items]
Stock price trigger for redemption of warrants (in dollars per share)				$ 18.00
Redemption price per warrant (in dollars per share)				$ 0.01
Minimum threshold written notice period for redemption of warrants				30 days
Threshold trading days for redemption of warrants				20 days
Threshold consecutive trading days for redemption of warrants				30 days
Threshold business days before sending notice of redemption to warrant holders				3 days
Warrant liabilities | Public Warrants and Forward Purchase Warrants | Redemption of warrants when the price per class A ordinary share equals or exceeds $10.00
Disclosure of financial liabilities [line items]
Redemption price per warrant (in dollars per share)				$ 0.10
Minimum threshold written notice period for redemption of warrants				30 days
Warrant liabilities | Forward Purchase Warrants
Disclosure of financial liabilities [line items]
Number of shares called by each warrant (in shares)				1,500,000	1,500,000
Warrant liabilities | Forward Purchase Warrants | Forward Purchase Agreements
Disclosure of financial liabilities [line items]
Number of warrants issued and sold (in shares)		2,750,000
Warrant liabilities | Private Placement Warrants
Disclosure of financial liabilities [line items]
Number of shares called by each warrant (in shares)				6,600,000	6,600,000
Number of warrants issued and sold (in shares)			6,600,000
Warrant liabilities | Class A Ordinary Shares
Disclosure of financial liabilities [line items]
Number of shares called by each warrant (in shares)				1
Exercise price of warrants (in USD per share)				$ 11.50
Warrant liabilities | Perfect Class A Ordinary Shares | Public Warrants
Disclosure of financial liabilities [line items]
Number of shares called by each warrant (in shares)				1

XML

Details of Significant Accounts - Financial liabilities at FV, schedule of movement in all kinds of Perfect warrants (Details) - Warrant liabilities - shares shares in Thousands	Jun. 30, 2024	Dec. 31, 2023
Warrants
Perfect warrants outstanding (in shares)	20,850
Public Warrants
Warrants
Perfect warrants outstanding (in shares)	12,750	12,750
Private Placement Warrants
Warrants
Perfect warrants outstanding (in shares)	6,600	6,600
Forward Purchase Warrants
Warrants
Perfect warrants outstanding (in shares)	1,500	1,500

XML

Details of Significant Accounts - Other payables, schedule of other payables (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Details of Significant Accounts
Employee bonus	$ 5,200	$ 4,662
Payroll	1,532	2,228
Remuneration to directors	460	115
Promotional fees	1,437	1,090
Professional service fees	750	1,415
Sales VAT payables	205	126
Post and telecommunications expenses	214	171
Others	441	524
Total other payables	$ 10,239	$ 10,331

XML

Details of Significant Accounts - Provisions, schedule of provisions (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Details of Significant Accounts
Beginning balance	$ 2,394
Additional provisions	287
Used during the period	(850)
Net exchange differences	(56)
Ending balance	$ 1,775

XML

Details of Significant Accounts - Provisions, schedule of analysis of total provisions (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Details of Significant Accounts
Current provisions	$ 1,775	$ 2,394

XML

Details of Significant Accounts - Pensions, defined benefit plan - Narrative (Details) - Perfect Mobile Corp. (Taiwan) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) item	Jun. 30, 2023 USD ($)
Disclosure of defined benefit plans [line items]
Number of units accrued for each year of service for first 15 years	2
Number of units accrued for each additional year thereafter	1
Maximum number of units accrued	45
Number of months prior to retirement	6 months
Post-employment benefit expense, defined contribution plans | $	$ 2	$ 2
Expected contributions to the defined benefit pension plans | $	$ 6

XML

Details of Significant Accounts - Pensions, defined contribution plans - Narrative (Details) - Perfect Mobile Corp. (Taiwan) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure of defined benefit plans [line items]
Percentage of monthly contribution	6.00%
Pension cost	$ 282	$ 265
Pension cost for other foreign subsidiaries	$ 132	$ 121

XML

Details of Significant Accounts - Share-based payment, schedule of terms and conditions of share incentive plan (Details) - Share Incentive Plan	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based payment arrangements
Maximum terms of options granted	5 years	5 years
2 years' service
Share-based payment arrangements
Number of years of service	2 years	2 years
Vesting (in percent)	50.00%	50.00%
3 years' service
Share-based payment arrangements
Number of years of service	3 years	3 years
Vesting (in percent)	75.00%	75.00%
4 years' service
Share-based payment arrangements
Number of years of service	4 years	4 years
Vesting (in percent)	100.00%	100.00%

XML

Details of Significant Accounts - Share-based payment, schedule of movements of outstanding share incentive plan (Details) shares in Thousands							6 Months Ended
	May 27, 2024 shares	Nov. 02, 2023 shares	Aug. 21, 2023 shares	May 23, 2023 shares	Jan. 03, 2023 shares	Jan. 21, 2022 shares	Jun. 30, 2024 shares $ / shares	Jun. 30, 2023 shares $ / shares
No. of options
Options exercisable at June 30 (in shares)							914	0
Share Incentive Plan
No. of options
Options outstanding at January 1 (in shares)							4,073	2,063
Options granted (in shares)	5	5	7	2,260	8	2,143	5	2,276
Options forfeited (in shares)							(143)	(67)
Options outstanding at June 30 (in shares)							3,935	4,272
Weighted-average exercise price per share
Options outstanding at January 1 (in USD per share) | $ / shares							$ 4.47	$ 3.95
Options granted (in USD per share) | $ / shares							2.13	4.94
Options forfeited (in USD per share) | $ / shares							4.50	4.04
Options outstanding at June 30 (in USD per share) | $ / shares							$ 4.47	$ 4.48

XML

Details of Significant Accounts - Share-based payment, share incentive plan - Narrative (Details) - Share Incentive Plan - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Minimum
Share-based payment arrangements
Exercise prices of stock options (in USD per share)	$ 2.13	$ 2.43
Weighted-average remaining contractual period	2 years 6 months 21 days	3 years 21 days
Maximum
Share-based payment arrangements
Exercise prices of stock options (in USD per share)	$ 7.20	$ 7.20
Weighted-average remaining contractual period	4 years 10 months 28 days	4 years 10 months 2 days

XML

Details of Significant Accounts - Share-based payment, schedule of FV of stock options granted using black-scholes option-pricing model (Details) - Share Incentive Plan shares in Thousands							6 Months Ended
	May 27, 2024 Y shares $ / shares	Nov. 02, 2023 shares Y $ / shares	Aug. 21, 2023 Y shares $ / shares	May 23, 2023 Y shares $ / shares	Jan. 03, 2023 shares Y $ / shares	Jan. 21, 2022 Y shares $ / shares	Jun. 30, 2024 shares	Jun. 30, 2023 shares
Share-based payment arrangements
Options granted (in shares) | shares	5	5	7	2,260	8	2,143	5	2,276
Stock price (in USD per share)	$ 2.13	$ 2.43	$ 4.00	$ 4.93	$ 7.20	$ 5.39
Exercise price (in USD per share)	$ 2.13	$ 2.43	$ 3.916	$ 4.93	$ 7.20	$ 3.95
Expected price volatility	72.67%	70.37%	70.65%	69.15%	64.85%	53.75%
Expected option life | Y	3.88	3.88	3.88	3.88	3.87	3.88
Expected dividends	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	4.65%	4.77%	4.64%	3.90%	4.07%	1.46%
Fair value per unit (in USD per share)	$ 1.2069	$ 1.3487	$ 2.2411	$ 2.6615	$ 3.7198	$ 2.7637

XML

Details of Significant Accounts - Share-based payment, schedule of expenses incurred on share-based payment transactions (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Equity settled	$ 1,437	$ 1,441

XML

Details of Significant Accounts - Share-based payment expenses, shareholder earnout - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Service agreements with board of directors
Share-based payment arrangements
Expenses recorded	$ 0	$ 175
Shareholder Earnout
Share-based payment arrangements
Threshold trading days over which the daily volume-weighted average price of the perfect class A ordinary shares is considered	20 days
Threshold trading day period over which the daily volume-weighted average price of the perfect class A ordinary shares is considered	30 days
Shareholder Earnout | If daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $11.50
Share-based payment arrangements
Number of earnout shares issuable (in shares)	3,000
Daily volume-weighted average price of the perfect class A ordinary shares considered (in USD per share)	$ 11.50
Shareholder Earnout | If daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $13.00
Share-based payment arrangements
Number of earnout shares issuable (in shares)	3,000
Daily volume-weighted average price of the perfect class A ordinary shares considered (in USD per share)	$ 13.00
Shareholder Earnout | If daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $14.50
Share-based payment arrangements
Number of earnout shares issuable (in shares)	4,000
Daily volume-weighted average price of the perfect class A ordinary shares considered (in USD per share)	$ 14.50

XML

Details of Significant Accounts - Share-based payment, sponsor earnout - Narrative (Details) - Sponsor Earnout	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share-based payment arrangements
Maximum number of class A ordinary shares issuable (in shares) | shares	1,175,624
If daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $11.50
Share-based payment arrangements
Percentage of sponsor earnout promote shares issuable	50.00%
Threshold trading days over which the daily volume-weighted average price of the perfect class A ordinary shares is considered	20 days
Daily volume-weighted average price of the perfect class A ordinary shares considered (in USD per share)	$ 11.50
If daily volume-weighted average price of the Perfect Class A Ordinary Shares is greater than or equal to $13.00
Share-based payment arrangements
Percentage of sponsor earnout promote shares issuable	50.00%
Threshold trading days over which the daily volume-weighted average price of the perfect class A ordinary shares is considered	20 days
Daily volume-weighted average price of the perfect class A ordinary shares considered (in USD per share)	$ 13.00

XML

Details of Significant Accounts - Share capital - Narrative (Details) $ / shares in Units, $ in Thousands			6 Months Ended	18 Months Ended
	Feb. 07, 2024 shares	Nov. 24, 2023 shares	Jun. 30, 2024 USD ($) Vote $ / shares shares	Jun. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Share capital
Authorized capital | $			$ 82,000	$ 82,000
Shares reserved for employee stock options (in shares)			30,000,000	30,000,000
Capital stock | $			$ 10,185	$ 10,185
Number of shares of ordinary stock (in shares)			101,849,000	101,849,000	101,917,000
Shares retired (in shares)			68,000	16,388,000
Number of shares surrendered by shareholder (in shares)				27,000
Number of class B ordinary share convertible into class A ordinary share			1	1
Perfect Class A Ordinary Shares
Share capital
Number of shares authorized (in shares)			700,000,000	700,000,000
Capital stock | $			$ 8,506	$ 8,506	$ 8,513
Number of shares of ordinary stock (in shares)			85,060,000	85,060,000
Shares retired (in shares)	68,000	16,129,010
Ordinary shares (in USD per share) | $ / shares			$ 0.1	$ 0.1	$ 0.1
Number of votes per share | Vote			1
Perfect Class B Ordinary Shares
Share capital
Number of shares authorized (in shares)			90,000,000	90,000,000
Capital stock | $			$ 1,679	$ 1,679	$ 1,679
Number of shares of ordinary stock (in shares)			16,789,000	16,789,000
Ordinary shares (in USD per share) | $ / shares			$ 0.1	$ 0.1	$ 0.1
Number of votes per share | Vote			10

XML

Details of Significant Accounts - Share capital, movements in shares outstanding (Details) - shares shares in Thousands	6 Months Ended	18 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Details of Significant Accounts
Shares outstanding at beginning of period (in shares)	101,917
Retirement of treasury shares (in shares)	(68)	(16,388)
Shares outstanding at end of period (in shares)	101,849	101,849

XML

Details of Significant Accounts - Share capital, movements in shares outstanding - Additional Information (Details) - shares			6 Months Ended	18 Months Ended
	Feb. 07, 2024	Nov. 24, 2023	Jun. 30, 2024	Jun. 30, 2024
Share capital
Shares retired (in shares)			68,000	16,388,000
Perfect Class A Ordinary Shares
Share capital
Shares retired (in shares)	68,000	16,129,010

XML

Details of Significant Accounts - Share capital, share repurchase plan and tender offer- Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands				6 Months Ended	8 Months Ended	12 Months Ended	18 Months Ended
	Feb. 07, 2024	Nov. 24, 2023	May 04, 2023	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2023	Jun. 30, 2024
Share capital
Maximum period authorised for share repurchase				12 months
Shares retired (in shares)				68,000			16,388,000
Perfect Class A Ordinary Shares
Share capital
Share repurchase, authorised amount		$ 50,000	$ 20,000
Number of treasury shares repurchased (in shares)			259,000
Treasury shares repurchased, amount					$ 1,064
Number of treasury shares retired (in shares)				68,000		191,000
Shares retired (in shares)	68,000	16,129,010
Stock repurchase program authorized shares (in shares)		16,129,032
Share price per share (in USD per share)		$ 3.10

XML

Details of Significant Accounts - Capital Surplus, schedule of capital surplus (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Details of Significant Accounts
Additional paid-in capital	$ 477,415	$ 477,734
Other:
Employees’ stock option cost	6,867	5,430
Retirement of treasury shares	27,371	27,235
Subtotal	34,238	32,665
Capital surplus	$ 511,653	$ 510,399

XML

Details of Significant Accounts - Revenue, schedule of revenue from contracts with customers (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Revenue from contracts with customers	$ 28,194	$ 24,832

XML

Details of Significant Accounts - Revenue, schedule of disaggregation of revenue from contracts with customers (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Revenue
Revenue from contracts with customers	$ 28,194	$ 24,832
At a point in time
Revenue
Revenue from contracts with customers	2,393	2,893
Over time
Revenue
Revenue from contracts with customers	25,801	21,939
United States
Revenue
Revenue from contracts with customers	11,308	11,256
United States | At a point in time
Revenue
Revenue from contracts with customers	505	794
United States | Over time
Revenue
Revenue from contracts with customers	10,803	10,462
Japan
Revenue
Revenue from contracts with customers	2,748	2,203
Japan | At a point in time
Revenue
Revenue from contracts with customers	575	418
Japan | Over time
Revenue
Revenue from contracts with customers	2,173	1,785
France
Revenue
Revenue from contracts with customers	2,427	1,979
France | At a point in time
Revenue
Revenue from contracts with customers	520	328
France | Over time
Revenue
Revenue from contracts with customers	1,907	1,651
Others
Revenue
Revenue from contracts with customers	11,711	9,394
Others | At a point in time
Revenue
Revenue from contracts with customers	793	1,353
Others | Over time
Revenue
Revenue from contracts with customers	$ 10,918	$ 8,041

XML

Details of Significant Accounts - Revenue, schedule of alternative disaggregation of revenue from contracts with customers (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
AR/AI cloud solutions and Subscription	$ 25,305	$ 21,359
Licensing	2,288	2,875
Advertisement	496	580
Others	105	18
Revenue from contracts with customers	$ 28,194	$ 24,832

XML

Details of Significant Accounts - Revenue, alternative disaggregation of revenue and contract assets - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
AR/AI cloud solutions	$ 8,549	$ 9,622

XML

Details of Significant Accounts - Revenue, schedule of contract liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Contract assets:
Unbilled revenue	$ 1,543	$ 2,770
Contract liabilities:
Advance sales receipts	$ 16,858	$ 15,346

XML

Details of Significant Accounts - Revenue, schedule of revenue recognized that was included in contract liability balance at beginning of the period (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Revenue recognized that was included in the contract liability balance at the beginning of the period	$ 11,877	$ 9,763

XML

Details of Significant Accounts - Revenue, unsatisfied contracts - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Revenue
Amount of transaction price allocated to contracts	$ 28,104	$ 28,133
Not later than one year
Revenue
Percentage of transaction price allocated to the unsatisfied contracts	93.00%
2025 to 2027
Revenue
Percentage of transaction price allocated to the unsatisfied contracts	7.00%

XML

Details of Significant Accounts - Interest income, schedule of interest income (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Interest income from bank deposits	$ 2,951	$ 2,100
Interest income from financial assets at amortized cost	990	2,509
Others	11	0
Interest income	$ 3,952	$ 4,609

XML

Details of Significant Accounts - Other income, schedule of other income (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Subsidy from government	$ 14	$ 0
Others	0	7
Other income	$ 14	$ 7

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Details of Significant Accounts - Other gains and losses, schedule of other gains and losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Foreign exchange losses	$ (337)	$ (215)
Gains (losses) on financial liabilities at fair value through profit or loss	46	(244)
Other gains and losses	$ (291)	$ (459)

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Details of Significant Accounts - Finance costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Interest expense on lease liabilities	$ 10	$ 5

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Details of Significant Accounts - Costs and expenses by nature, schedule of costs and expenses by nature (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Cost of goods sold	$ 11	$ 2
Employee benefit expenses	14,479	13,516
Promotional fees	5,611	4,823
Platform fees	5,196	4,220
Professional service fees	2,710	2,893
Insurance expenses	723	1,170
Warranty cost	287	335
Depreciation of right-of-use assets	250	212
Depreciation of property, plant and equipment	94	114
Amortization of intangible assets	26	37
Others	1,392	1,110
Total operating costs and operating expenses	$ 30,779	$ 28,432

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Details of Significant Accounts - Employee benefit expenses, schedule of employee benefit expenses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Details of Significant Accounts
Wages and salaries	$ 11,107	$ 10,425
Remuneration to directors	345	335
Employee insurance fees	711	685
Pension costs	416	388
Employee stock options	1,437	1,266
Other personnel expenses	463	417
Employee benefit expenses	$ 14,479	$ 13,516

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Details of Significant Accounts - Income tax, schedule of income tax expense (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Current income tax:
Current tax expense recognized for the current period	$ 574	$ 63
Prior year income tax underestimation	6	0
Total current tax	580	63
Deferred income tax:
Origination and reversal of temporary differences	(894)	0
Taxable losses	0	0
Total deferred income tax	(894)	0
Income tax expense (benefit)	$ (314)	$ 63

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Details of Significant Accounts - Earnings per share, schedule of earnings (losses) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 1,394	$ 489
Profit attributable to ordinary shareholders of the parent, weighted average number of ordinary shares outstanding (in shares)	101,849	118,248
Profit attributable to ordinary shareholders of the parent, loss per share (in USD per share)	$ 0.014	$ 0.004
Dilutive earnings per share
Profit attributable to ordinary shareholders of the group plus assumed conversion of all dilutive potential ordinary shares, amount after tax	$ 1,394	$ 489
Profit attributable to ordinary shareholders of the group plus assumed conversion of all dilutive potential ordinary shares, weighted average number of ordinary shares outstanding (in shares)	101,849	118,248
Profit attributable to ordinary shareholders of the Group plus assumed conversion of all dilutive potential ordinary shares, loss per share (in USD per share)	$ 0.014	$ 0.004

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Details of Significant Accounts - Earnings per share, schedule of potential dilutive instruments not included in calculation of diluted EPS (Details) - shares shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Potentially dilutive instruments (shares in thousands)
Warrants liabilities (in thousand shares)	20,850	20,850
Employee stock options (in thousand shares)	3,935	4,073
Shareholder earnout (in thousand shares)	10,000	10,000
Sponsor earnout (in thousand shares)	1,176	1,176
Potentially dilutive instruments (in thousands shares)	35,961	36,099

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Details of Significant Accounts - Changes in liabilities from financing activities, schedule of changes in liabilities from financing activities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Changes in liabilities from financing activities
Balance at the beginning	$ 2,434
Changes in cash flow from financing activities	(239)
Change in fair value through profit and loss	(46)
Changes in other non-cash items – additions	82
Balance at the end	2,231
Financial liabilities at fair value through profit or loss
Changes in liabilities from financing activities
Balance at the beginning	1,566
Changes in cash flow from financing activities	0
Change in fair value through profit and loss	(46)
Changes in other non-cash items – additions	0
Balance at the end	1,520
Lease liabilities (including current portion)
Changes in liabilities from financing activities
Balance at the beginning	868
Changes in cash flow from financing activities	(239)
Change in fair value through profit and loss	0
Changes in other non-cash items – additions	82
Balance at the end	$ 711

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Related Party Transactions - Additional Information (Details)	6 Months Ended
	Jun. 30, 2024
Disclosure of transactions between related parties [abstract]
Percentage of ownership interest held	36.00%

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Related Party Transactions - Schedule of significant related party transactions, revenue (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CyberLink
Related Party Transactions
Revenue-others (service revenue)	$ 19	$ 11

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Related Party Transactions - Schedule of significant related party transactions, other payables (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Related Party Transactions
Other payables	$ 50	$ 50
CyberLink
Related Party Transactions
Other payables	28	26
CyberLink-Japan
Related Party Transactions
Other payables	$ 22	$ 24

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Related Party Transactions - Schedule of significant related party transactions, operating expenses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CyberLink
Related Party Transactions
Management service fee	$ 26	$ 26

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Related Party Transactions - Schedule of significant related party transactions, lease transactions - Narrative (Details)	6 Months Ended
	Jun. 30, 2024
CyberLink | Minimum
Related Party Transactions
Lease rental contractual period	1 year
CyberLink | Maximum
Related Party Transactions
Lease rental contractual period	2 years
CyberLink-Japan | Minimum
Related Party Transactions
Lease rental contractual period	1 year
CyberLink-Japan | Maximum
Related Party Transactions
Lease rental contractual period	2 years

XML

Related Party Transactions - Schedule of significant related party transactions, lease transactions rent expense (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CyberLink-Japan
Related Party Transactions
Rent expense	$ 39	$ 44

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Related Party Transactions - Schedule of significant related party transactions, acquisition of right-of-use assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Related Party Transactions
Additions	$ 82	$ 390
CyberLink
Related Party Transactions
Additions	0	390
ClinJeff
Related Party Transactions
Additions	$ 82	$ 0

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Related Party Transactions - Schedule of significant related party transactions, lease liabilities outstanding balance and interest expense (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Outstanding balance:
Less: current portion (shown as ‘current lease liabilities’)	$ (524)		$ (481)
Net Lease liabilities	711		868
Interest expense on lease liabilities	10	$ 5
CyberLink
Outstanding balance:
Total lease liabilities	343		381
Less: current portion (shown as ‘current lease liabilities’)	(287)		(238)
Net Lease liabilities	56		$ 143
Interest expense on lease liabilities	$ 4	$ 1

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Related Party Transactions - Schedule of key management compensation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Disclosure of transactions between related parties [abstract]
Salaries and other short-term employee benefits	$ 1,458	$ 1,153
Share-based payment	177	386
Post-employment benefits	5	5
Total key management compensation	$ 1,640	$ 1,544

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Related Party Transactions - Key management compensation Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Disclosure of transactions between related parties [abstract]
Unpaid portion	$ 345	$ 335

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Others - Capital management , schedule of gearing ratios (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Others
Total liabilities	$ 31,844	$ 30,957
Total equity	$ 141,986	$ 139,406	$ 183,297	$ 181,964
Gearing ratio	0.22	0.22

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Others - Financial instruments, schedule of financial instruments by category (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financial instruments
Financial assets	$ 166,752	$ 161,646
Financial liabilities	10,314	10,406
Total lease liabilities	711	868
Warrant liabilities | Financial liabilities at fair value through profit or loss
Financial instruments
Financial liabilities	1,520	1,566
Other payables (including related parties) | Financial liabilities at amortized cost
Financial instruments
Financial liabilities	10,289	10,381
Guarantee deposits received | Financial liabilities at amortized cost
Financial instruments
Financial liabilities	25	25
Cash and cash equivalents | Financial assets at amortized cost
Financial instruments
Financial assets	120,796	123,871
Current financial assets at amortized cost | Financial assets at amortized cost
Financial instruments
Financial assets	37,970	30,300
Accounts receivable | Financial assets at amortized cost
Financial instruments
Financial assets	7,102	6,992
Other receivables | Financial assets at amortized cost
Financial instruments
Financial assets	737	343
Guarantee deposits paid | Financial assets at amortized cost
Financial instruments
Financial assets	$ 147	$ 140

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Others - Financial instruments, schedule of significant financial assets and liabilities denominated in foreign currencies (Details) € in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2024 TWD ($)	Jun. 30, 2024 EUR (€)	Jun. 30, 2024 JPY (¥)	Dec. 31, 2023 TWD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 JPY (¥)
Financial instruments
Currency amount, assets	$ 166,752	$ 161,646
Currency amount, liabilities	10,314	10,406
Foreign exchange risk | NTD:USD
Financial instruments
Currency amount, assets	$ 1,265	$ 2,579	$ 41,085			$ 79,097
Exchange rate	0.0308	0.0326	0.0308	0.0308	0.0308	0.0326	0.0326	0.0326
Degree of variation, assets	1.00%	1.00%
Effect on profit or loss, assets	$ 13	$ 26
Foreign exchange risk | EUR:USD
Financial instruments
Currency amount, assets	184	735		€ 172			€ 664
Currency amount, liabilities	$ 205	$ 153		€ 192			€ 138
Exchange rate	1.0696	1.1064	1.0696	1.0696	1.0696	1.1064	1.1064	1.1064
Degree of variation, assets	1.00%	1.00%
Degree of variation, liabilities	1.00%	1.00%
Effect on profit or loss, assets	$ 2	$ 7
Effect on profit or loss, liabilities	2	2
Foreign exchange risk | JPY:USD
Financial instruments
Currency amount, assets	$ 2,681	$ 2,252			¥ 432,341			¥ 317,217
Exchange rate	0.0062	0.0071	0.0062	0.0062	0.0062	0.0071	0.0071	0.0071
Degree of variation, assets	1.00%	1.00%
Effect on profit or loss, assets	$ 27	$ 23
Foreign exchange risk | USD:JPY
Financial instruments
Currency amount, liabilities	$ 155	$ 168			¥ 24,936			¥ 23,754
Exchange rate	160.88	141.39	160.88	160.88	160.88	141.39	141.39	141.39
Degree of variation, liabilities	1.00%	1.00%
Effect on profit or loss, liabilities	$ 2	$ 2

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Others - Financial instruments - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financial instruments
Foreign exchange losses	$ 337	$ 215
Level 1and 2
Financial instruments
Transfers out of Level 1 into Level 2 of fair value hierarchy, liabilities	0		$ 0
Transfers out of Level 2 into Level 1 of fair value hierarchy, liabilities	0		0
Level 3
Financial instruments
Transfers into level 3	0		0
Transfers out of level 3	0		0
Liquidity risk
Financial instruments
Money market position	$ 156,584		$ 151,847

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Others - Financial instruments, schedule of contractual undiscounted cash flows of non-derivative financial liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Less than 1 year | Financial liabilities at fair value through profit or loss
Financial instruments
Non-derivative financial liabilities	$ 0	$ 0
Less than 1 year | Other payables (including related parties)
Financial instruments
Non-derivative financial liabilities	10,289	10,381
Less than 1 year | Lease liabilities (including current portion)
Financial instruments
Non-derivative financial liabilities	535	496
Less than 1 year | Guarantee deposits received
Financial instruments
Non-derivative financial liabilities	0	0
Between 2-5 years | Financial liabilities at fair value through profit or loss
Financial instruments
Non-derivative financial liabilities	1,520	1,566
Between 2-5 years | Other payables (including related parties)
Financial instruments
Non-derivative financial liabilities	0	0
Between 2-5 years | Lease liabilities (including current portion)
Financial instruments
Non-derivative financial liabilities	189	392
Between 2-5 years | Guarantee deposits received
Financial instruments
Non-derivative financial liabilities	25	25
Over 5 years | Financial liabilities at fair value through profit or loss
Financial instruments
Non-derivative financial liabilities	0	0
Over 5 years | Other payables (including related parties)
Financial instruments
Non-derivative financial liabilities	0	0
Over 5 years | Lease liabilities (including current portion)
Financial instruments
Non-derivative financial liabilities	0	0
Over 5 years | Guarantee deposits received
Financial instruments
Non-derivative financial liabilities	$ 0	$ 0

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Others - Fair value information, schedule of natures of the liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair value information
Financial liabilities	$ 10,314	$ 10,406
Warrant liabilities | Recurring fair value | Financial liabilities at fair value through profit or loss
Fair value information
Financial liabilities	1,520	1,566
Warrant liabilities | Recurring fair value | Level 1 | Financial liabilities at fair value through profit or loss
Fair value information
Financial liabilities	922	954
Warrant liabilities | Recurring fair value | Level 2 | Financial liabilities at fair value through profit or loss
Fair value information
Financial liabilities	598	612
Warrant liabilities | Recurring fair value | Level 3 | Financial liabilities at fair value through profit or loss
Fair value information
Financial liabilities	$ 0	$ 0

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Segment Information - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) segment	Dec. 31, 2023 USD ($)
Disclosure of operating segments [abstract]
Number of reportable operating segments | segment	1
Non-current assets | $	$ 1,281	$ 1,304

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Segment Information - Schedule of geographic information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Geographic information
Revenue	$ 28,194	$ 24,832
United States
Geographic information
Revenue	11,308	11,256
Japan
Geographic information
Revenue	2,748	2,203
France
Geographic information
Revenue	2,427	1,979
Others
Geographic information
Revenue	$ 11,711	$ 9,394