SOS Ltd

Classification and Presentation

Certain customer arrangements may involve advance payments, offsetting transactions, or settlement through non-standard payment terms. The Company evaluates these arrangements to determine whether balances should be presented as accounts receivable or contract liabilities based on the underlying contractual terms and the timing of revenue recognition.

Management applies judgment in determining the appropriate classification of such balances. Management applies judgment in determining the appropriate classification of such balances based on the underlying contractual arrangements and settlement terms.

Other receivables consist of the following:

Prepayments primarily represent advances to suppliers and service providers in connection with commodity trading, procurement and other operating activities. These balances are generally expected to be settled through the delivery of goods, provision of services or, where applicable, refunds in accordance with the underlying contractual arrangements.

During the six months ended June 30, 2026, prepayments decreased significantly, primarily due to refunds received in respect of certain system development arrangements entered into during 2025. The Company had made prepayments of approximately US$228 million to seven service providers for the development of systems relating to its international commodity trading operations. During the current period, the arrangements were terminated as the service providers were unable to complete the contracted services, and the related prepayments were refunded to the Company.

Loan receivable include loans to third parties and employees, refundable deposits, and other advances. Certain balances relate to non-operating or financing-type arrangements and are subject to separate recoverability assessment.

Credit risk and aging

A portion of the Company’s other receivables and prepayments has been outstanding for extended periods. Long-aged balances are subject to increased uncertainty regarding recoverability, particularly where:

Management performs specific assessments for such balances and records allowances where appropriate. As of June 30, 2026, the total allowance of approximately US$215.7 million comprised approximately US$78.6 million of allowance for expected credit losses relating to other receivables and approximately US$137.1 million of impairment allowance relating to prepayments.

During the six months ended June 30, 2026, the Company recognized impairment losses of approximately US$1.6 million on other receivables.

These impairments primarily relate to: