{"url_path":"/sec/chai/10-k/2026/item-5","section_key":"item-5","section_title":"Item 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS, Subsection A. “Outlook” for trend information.","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1649009/0001493152-26-023908-index.html","accession_number":"0001493152-26-023908","cik":"0001649009","ticker":"CHAI","issuer_name":"Core AI Holdings, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1649009/0001493152-26-023908-index.html","primary_entity_key":"0001649009","primary_entity_name":"Core AI Holdings, Inc."},"word_count":593,"has_tables":true,"body_markdown":"Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS, Subsection A. “Outlook” for trend information.\n\n \n\n47\n\n \n\n \n\n**D.**\n**Critical\nAccounting Estimates**\n\n \n\nThe\npreparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates, judgments and\nassumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses.\nActual results may differ from these estimates:\n\n \n\n \n**i)**\n**Critical\naccounting estimates**\n\n \n\n*Estimates\nand underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which\nthe estimates are revised and in any future periods affected. Information about critical estimates in applying accounting policies that\nhave the most significant effect on the amounts recognized in the consolidated financial statements are, but not limited to the following:*\n\n \n\n \n☐\nIncome\ntaxes - Tax provisions are based on enacted or substantively enacted laws. Changes in those laws could affect amounts recognized\nin profit or loss both in the period of change, which would include any impact on cumulative provisions, and future periods. Deferred\ntax assets, if any, are recognized to the extent it is considered probable that those assets will be recoverable. This involves an\nassessment of when those deferred tax assets are likely to reverse.\n\n \n\n \n☐\nImpairment\nof non-financial assets - The Company assesses impairment at each reporting date by evaluating conditions specific to the Company\nthat may lead to asset impairment. The recoverable amount of an asset or a cash-generating unit (“CGU”) is determined\nusing the greater of fair value less costs to sell and value in use which requires the use of various judgments, estimates, and assumptions.\n\n \n \n \n\n \n☐\nUseful\nlife of intangible assets – The Company estimates the useful life used to amortize intangible assets which relates to the expected\nfuture performance of the assets acquired based on management estimate of the sales forecast.\n\n \n\n \n☐\nFuture\npurchase consideration - In a business combination, the Company recognizes a contingent consideration at fair value at the acquisition\ndate. Contingent consideration classified as an asset or liability or equity on the basis of the guidance in ASC 480 and other applicable\nU.S. GAAP (e.g., ASC 815-40). Contingent consideration classified as equity is not remeasured, and its subsequent settlement is accounted\nfor within equity. Contingent consideration classified as an asset or a liability is remeasured to fair value at each reporting date,\nwith changes in fair value recognized in earnings, unless the arrangement qualifies for recognition in other comprehensive income\nunder the hedge accounting guidance in ASC 815.\n\n  \n\n \n**ii)**\n**Critical\naccounting judgments**\n\n \n\n*Information\nabout critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated\nfinancial statements are, but are not limited to, the following:*\n\n \n\n \n☐\nFunctional\ncurrency - The functional currency for the Company and each of the Company’s subsidiaries is the currency of the primary economic\nenvironment in which the respective entity operates. Such determination involves certain judgments to identify the primary economic\nenvironment. The Company reconsiders the functional currency of its subsidiaries if there is a change in events and/or conditions\nthat determine the primary economic environment.\n\n \n \n \n\n \n☐\nGoing\nconcern – As disclosed in Note 1 to the consolidated financial statements.\n\n \n \n \n\n \n \nDiscontinued\noperation –The Company evaluates whether the divestment of Siyata PTT represents a discontinued operation in accordance with\nASC 205-20. Such determination involves significant judgments to identify whether the disposal represents a strategic shift that\nhas (or will have) a major effect on the Company’s operations and financial results. As disclosed in Note 18 to the consolidated\nfinancial statements.\n\n \n\n**RECENT\nACCOUNTING PRONOUNCEMENTS**\n\n \n\nSee"}