LESAKA TECHNOLOGIES INC

See “Item

1A RISK

FACTORS”

in Part

I of

for the

fiscal year

ended June

for a

discussion

of

risk

factors

to

(i)

our

(ii)

in

South

Africa

and

other

foreign

markets,

(iii)

government

regulation, and (iv) our common stock. Except

as set forth below, there have been no material

changes from the risk factors previously

disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30,

We

may

identify

errors

related

to

our

Value

Added

Tax

(VAT)

processes,

tax

positions,

or

similar

transaction-level tax matters, which could require future adjustments to

our financial statements.

During

the

second

quarter

of

fiscal

2026,

we

errors

in

the

historical

VAT

treatment

of

certain

gaming

voucher

transactions within our Merchant business. Although we

have completed an initial review of the matter and

determined to correct the

identified errors through revisions to

our previously issued financial

statement, our review is

ongoing. Refer to Note

1 to our unaudited

condensed consolidated financial

statements for additional

information. The error arose

from the incorrect application

of indirect tax

rules, the configuration of underlying systems, and operational practices involving

downstream vendors.

While we have

implemented remedial actions,

including enhancing our

system of internal

control and conducting

further analyses

with our external

advisors, there is

a risk that

we have not

identified all errors

associated with this

matter.

Additional issues

may be

discovered

as

we

to

evaluate

historical

periods,

refine

our

technical

tax

conclusions,

or

from

inadequate

updates

to

our

systems. Moreover,

similar errors

could exist

in accounting

and reporting

for other

indirect tax

transactions particularly

where our

involves

complex

multi-party

arrangements,

voucher

products,

commissions,

or

involving

non-registered

VAT

vendors.

Identification

of

errors

may

require

us

to

record

further

adjustments,

amend

or

restate

issued

statements, update our tax filings,

make additional payments of tax,

penalties, or interest, or

make further enhancements to our

internal

control processes. Any such developments could result in increased compliance

costs, additional administrative burdens, diversion of

attention,

or

investor

perceptions

of

weaknesses

in

our

or

tax

compliance

processes.

If

material,

additional errors could

also adversely affect

our financial condition,