Core AI Holdings, Inc.

14)Commitments and Contingencies

The Group accounts for loss contingencies in accordance with ASC Topic 450, Contingencies (“ASC 450”).

The Group records an accrual for a loss contingency when it is probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. If a loss is probable and a range of loss can be reasonably estimated but no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued.

When a loss is reasonably possible but not probable, or when a loss is probable but the amount cannot be reasonably estimated, the Group discloses the nature of the contingency and an estimate of the possible loss or range of loss, if such an estimate can be made.

The Group evaluates its contingencies on an ongoing basis and adjusts its accruals and related disclosures as additional information becomes available.