0001558370-24-011812 | 10-Q | XBRL Viewer

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Fair Value Measurement - Schedule of Beginning And Ending Balances of Net Assets And Liabilities (Details) - Private Warrants $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of period	$ 50
Change in the fair value of the private warrants liability	$ (40)
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Fair Value Adjustment of Warrants
Balance at end of period	$ 10

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (4,723)	$ (2,208)	$ (558)	$ (2,506)	$ (6,931)	$ (3,064)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

4.Summary of Significant Accounting Policies

The information presented below supplements the Significant Accounting Policies information presented in the 2023 Form 10-K.

Stock-Based Compensation

The Company accounts for all equity-classified awards under stock-based compensation plans at their “fair value.” This fair value is measured at the fair value of the awards at the grant date and recognized as compensation expense on a straight-line basis over the vesting period. The fair value of the awards on the grant date is determined using the stock price on the respective grant date in the case of restricted stock units and using an option pricing model in the case of stock options. The Company accounts for forfeitures as they occur. The expense resulting from share-based payments is recorded in selling, general and administrative expense in the condensed consolidated statements of operations.

Revenue Recognition

The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. Revenue is measured as the amount of consideration that is expected to receive in exchange for transferring goods or providing services. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. All of the Company’s material sources of revenue are derived from contracts with customers, primarily relating to the provision of business and transaction processing services and sales of recurring software licenses and professional services within each of the Company’s segments. The Company does not have any significant extended payment terms, as payment for invoices issued is received shortly after goods are delivered or services are provided.

Nature of Services

The primary performance obligations are to stand ready to provide various forms of business processing services, consisting of a series of distinct services that are substantially the same and have the same pattern of transfer over time, and accordingly are combined into a single performance obligation. The Company’s promise to our customers is typically to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of transactions processed, requests fulfilled, etc.); as such, the total transaction price is variable. The variable fees are allocated to the single performance obligation charged to the distinct service period in which the Company performs the service.

Revenue from the sale of recurring software licenses is recognized ratably over the contractual term, unless perpetual licenses are granted or a noncancelable license is granted for a nonrefundable fee, which are recognized at a point in time. Professional services revenue consists of implementation services for new customers, or implementations of new products for existing customers. Professional services are typically sold on a time-and-materials basis and billed monthly based on actual hours incurred.

Revenue from the sale of hardware solutions is recognized on a point in time basis and related maintenance are recognized ratably over the contractual term.

Disaggregation of Revenues

The following tables disaggregate revenue from contracts by geographic region for the three and six months ended June 30, 2024 and 2023:


	Three months ended				Six months ended
	June 30,				June 30,
(dollars in thousands)	2024		2023		2024		2023
France	$	12,773	$	14,463	$	27,000	$	31,905
Germany		10,868		8,138		23,305		18,680
United Kingdom		7,182		11,230		14,738		19,421
Sweden		3,105		5,899		7,084		9,983
Other		2,103		2,564		4,188		5,083
Total Revenue, net	$	36,031	$	42,294	$	76,315	$	85,072

Contract Balances

The following table presents contract assets, contract liabilities and contract costs recognized at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(dollars in thousands)	2024		2023
Accounts receivable, net	$	27,935	$	30,795
Deferred revenues		5,194		6,004
Customer deposits		713		536
Costs to obtain and fulfill a contract		169		350

Accounts receivable, net includes $10.5 million and $11.2 million as of June 30, 2024 and December 31, 2023, respectively, representing amounts not billed to customers. Unbilled receivables are accrued and represent work performed in accordance with the terms of contracts with customers.

Deferred revenues relate to payments received in advance of performance under a contract. A significant portion of this balance relates to maintenance contracts or other service contracts where the Company received payments for upfront conversions or implementation activities which do not transfer a service to the customer but rather are used in fulfilling the related performance obligations that transfer over time. The advance consideration received from customers

is deferred over the contract term. The Company recognized revenue of $1.5 million and $3.4 million during the three and six months ended June 30, 2024, respectively, that had been deferred as of December 31, 2023. We recognized revenue of $6.3 million during the year ended December 31, 2023 that had been deferred as of January 1, 2023.

Costs incurred to obtain and fulfill contracts are deferred and presented as part of intangible assets, net and expensed on a straight-line basis over the estimated benefit period. These costs represent incremental external costs or certain specific internal costs that are directly related to the contract acquisition or fulfillment and can be separated into two principal categories: contract commissions and fulfillment costs. Applying the practical expedient in ASC 340-40-25-4, the incremental costs of obtaining contracts are recognized as an expense when incurred if the amortization period would have been one year or less. These costs are included in selling, general and administrative expenses. The effect of applying this practical expedient was not material.

Customer deposits consist primarily of amounts received from customers in advance for postage. These advanced postage deposits are used to cover the costs associated with postage, with the corresponding postage revenue being recognized as services are performed.

Performance Obligations

At the inception of each contract, the Company assesses the goods and services promised in the Company’s contracts and identifies each distinct performance obligation. The majority of our contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts. For the majority of our business and transaction processing service contracts, revenues are recognized as services are provided based on an appropriate input or output method, typically based on the related labor or transactional volumes.

Certain of our contracts have multiple performance obligations, including contracts that combine software implementation services with post-implementation customer support. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company estimates the expected costs of satisfying a performance obligation and adds an appropriate margin for that distinct good or service. The adjusted market approach is also used whereby the Company estimates the price that customers in the market would be willing to pay. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Certain of our software implementation performance obligations are satisfied at a point in time, typically when customer acceptance is obtained.

When evaluating the transaction price, the Company analyzes, on a contract-by-contract basis, all applicable variable considerations. The nature of our contracts gives rise to variable consideration, including volume discounts, contract penalties, and other similar items that generally decrease the transaction price. These amounts are estimated based on the expected amount to be provided to customers and reduce revenues recognized. The Company does not anticipate significant changes to our estimates of variable consideration.

Reimbursements from customers, such as postage costs, are included in revenue, while the related costs are included in cost of revenue.

Transaction Price Allocated to the Remaining Performance Obligations

In accordance with optional exemptions available under ASC 606, the Company did not disclose the value of unsatisfied performance obligations for (a) contracts with an original expected length of one year or less, and (b) contracts for which variable consideration relates entirely to an unsatisfied performance obligation, which comprise the majority of the Company’s contracts. The Company has certain non-cancellable contracts where a fixed monthly fee is received in exchange for a series of distinct services that are substantially the same and have the same pattern of transfer over time, with the corresponding remaining performance obligations as of June 30, 2024 in each of the future periods below:


(dollars in thousands)
Remainder of 2024	$	4,670
2025		446
2026		9
2027		69
Total	$	5,194

Net Loss per Share

Earnings per share (“EPS”) is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, using the more dilutive of the two-class method and if-converted method in the period of earnings. The two-class method is an earnings allocation method that determines earnings per share (when there are earnings) for common stock and participating securities. The if-converted method assumes all convertible securities are converted into common stock. Diluted EPS excludes all dilutive potential shares of common stock if their effect is anti-dilutive.

As the Company experienced net losses for the periods presented, the Company did not include the effect of 6,634,980 shares of Common Stock issuable upon exercise of 6,634,980 warrants sold in the IPO and Private Placement and issued in connection with completion of the Business Combination, or the effect of the aggregate number of shares issuable pursuant to outstanding restricted stock units and options (3,420,329 as of June 30, 2024) in the calculation of diluted loss per share for the three and six months ended June 30, 2024 and 2023, because their effects were anti-dilutive.

The components of basic and diluted EPS are as follows:


	Three months ended				Six months ended
	June 30,				June 30,
(dollars in thousands, except share and per share amounts)	2024		2023		2024		2023
Net loss attributable to common stockholders (A)	$	(4,723)	$	(558)	$	(6,931)	$	(3,064)
Weighted average common shares outstanding – basic and diluted (B)		30,166,102		21,802,689		30,166,102		21,802,689
Loss Per Share:
Basic and diluted (A/B)	$	(0.16)	$	(0.03)	$	(0.23)	$	(0.14)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Taxes
Income tax expense	$ 542	$ 385	$ 1,002	$ 477
Effective tax rate	(13.00%)	(249.00%)	(16.90%)	(18.60%)
Statutory income tax rate	21.00%	21.00%	21.00%	21.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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+ Details

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 07, 2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Securities Act File Number	001-40206
Entity Registrant Name	XBP Europe Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-2002883
Entity Address, Address Line One	2701 East Grauwyler Road
Entity Address, City or Town	Irving
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75061
City Area Code	844
Local Phone Number	935-2832
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	true
Entity Common Stock, Shares Outstanding		30,166,102
Entity Central Index Key	0001839530
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Document Quarterly Report	true
Common Stock, Par Value $0.0001 per share
Title of 12(b) Security	Common Stock, Par Value $0.0001 per share
Trading Symbol	XBP
Security Exchange Name	NASDAQ
Redeemable warrants, each whole warrant exercisable for one share of common stock at an exercise price of $11.50
Title of 12(b) Security	Redeemable warrants, each whole warrant exercisable for oneshare of common stock at an exercise price of $11.50
Trading Symbol	XBPEW
Security Exchange Name	NASDAQ

Related Parties (Tables)

6 Months Ended

Jun. 30, 2024


	Three months ended				Six months ended
	June 30,				June 30,
(dollars in thousands)	2024		2023		2024		2023
Related party shared services	$	839	$	869	$	1,583	$	1,776
Related party royalty		—		93		—		223
Related party service fee		376		171		594		299
Total related party expense	$	1,215	$	1,133	$	2,177	$	2,298

Debt - Maturities of long-term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Maturities of long-term debt
Total debt	$ 32,210	$ 16,626

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Stock-Based Compensation - 2024 Stock Incentive Plan (Details)	Jun. 14, 2024 shares
2024 Plan
Stock-Based Compensation
Number of shares authorized for issuance (in shares)	5,520,270

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Restructuring (Tables)

6 Months Ended

Jun. 30, 2024

Restructuring

Schedule of restructuring activity and balance of restructuring liability


	June 30,		December 31,
(dollars in thousands)	2024		2023
Balance at beginning of the period	$	5,454	$	2,036
Restructuring charges		558		4,484
Payment of benefits		(4,136)		(1,066)
Balance at end of the period	$	1,876	$	5,454

Stock-Based Compensation - Options (Details) - Employee Stock Option	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Stock-Based Compensation
Expiration period (in years)	10 years
Outstanding
Granted \| shares	95,000
Outstanding Balance as of June 30, 2024 \| shares	95,000
Weighted Average Grant Date Fair Value
Granted \| $ / shares	$ 0.58
Outstanding Balance as of June 30, 2024 \| $ / shares	0.58
Weighted Average Exercise Price
Outstanding Balance as of June 30, 2024 \| $ / shares	$ 1.31
Average Remaining Vesting Period (Years)
Outstanding Balance as of June 30, 2024	3 years 10 months 2 days
Exercisable \| shares	0
Minimum
Stock-Based Compensation
Minimum percentage of grant price to the fair market value (in %)	100.00%
Vesting period (in years)	4 years

Accounts Receivable

6 Months Ended

Jun. 30, 2024

Accounts Receivable

Accounts Receivable

6.Accounts Receivable

Accounts receivable, net consist of the following:


	June 30,		December 31,
(dollars in thousands)	2024		2023
Billed receivables	$	18,875	$	20,885
Unbilled receivables		10,508		11,182
Less: Allowance for credit losses		(1,448)		(1,272)
Total accounts receivable, net	$	27,935	$	30,795

Unbilled receivables represent balances recognized as revenue that have not been billed to the customer. Our allowance for doubtful accounts is based on a policy developed by historical experience and management judgment. Adjustments to the allowance for credit losses may occur based on market conditions or specific client circumstances.

The following table describes the changes in the allowance for expected credit losses for the six months ended June 30, 2024 (all related to accounts receivables):


(dollars in thousands)
Balance at January 1, 2024 of the allowance for expected credit losses	$	1,272
Change in the provision for expected credit losses for the period		176
Balance at June 30, 2024 of the allowance for expected credit losses	$	1,448

Related Parties - Components of related party expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Shared Services
Related Parties
Total related party expense	$ 839	$ 869	$ 1,583	$ 1,776
Royalty
Related Parties
Total related party expense		93		223
Service Fee
Related Parties
Total related party expense	376	171	594	299
Related Party
Related Parties
Total related party expense	$ 1,215	$ 1,133	$ 2,177	$ 2,298
Operating Cost and Expense, Related Party [Extensible Enumeration]	Related Party	Related Party	Related Party	Related Party
Related Party \| Shared Services
Related Parties
Total related party expense	$ 900	$ 900	$ 1,600	$ 1,800
Related Party \| Royalty
Related Parties
Total related party expense	0	100	0	200
Related Party \| Service Fee
Related Parties
Total related party expense	$ 400	$ 200	$ 600	$ 300

Debt

6 Months Ended

Jun. 30, 2024

Debt

Debt

9.Debt

Secured Borrowing Facility

On August 25, 2020, certain entities entered into an agreement wherein amounts due from clients were pledged to a third party, in exchange for a borrowing facility in amounts up to a total of €31.0 million (the “Secured Borrowing Facility”). The proceeds from the Secured Borrowing Facility were determined by the amounts invoiced to the Company’s clients. The amounts due from clients were recorded in accounts receivable and the amount due to the third party as a liability, presented under current portion of long-term debt on the condensed consolidated balance sheets. The cost of the Secured Borrowing Facility was 0.10% of newly assigned receivables with minimum of €0.1 million in annual fees and the Secured Borrowing Facility bore interest at Euribor rate plus 0.70% on the unpaid principal amount. During the three months ended June 30, 2024 and 2023, the Company incurred interest expense of $0 and $0.1 million, respectively, and $0 and $0.3 million for the six months ended June 30, 2024 and 2023, respectively, related to the Secured Borrowing Facility. As of June 30, 2024 and December 31, 2023, the outstanding balances payable under the Secured Borrowing Facility were $0.1 million.

On September 15, 2023, the relevant entities entered into an amendment to the Secured Borrowing Facility (the “Amended Factoring Agreement”) to convert the existing arrangement into a non-recourse factoring program wherein an unrelated third party (the “Factor”) shall provide financing to certain subsidiaries of the Company by purchase of certain approved and partially approved accounts receivables (as defined in the Amended Factoring Agreement) up to a maximum amount of €15.0 million while assuming the risk of non-payment on the purchased accounts receivables up to the level of approval. The relevant entities shall have no continuing involvement in the transferred accounts receivable,

other than collection and administrative responsibilities and, once sold, the accounts receivable shall no longer be available to satisfy creditors of the relevant entities.

The Company accounted for the transactions under the Amended Factoring Agreement as a sale under ASC 860, Transfers and Servicing, and treats it as an off-balance sheet arrangement. Net funds received from the transfers reflect the face value of the account less a fee, which is recorded as an increase to cash and a reduction to accounts receivable outstanding in the condensed consolidated balance sheets. The Company reports the cash flows attributable to the sale of account receivables to the Factor and the cash receipts from collections made on behalf of and paid to the Factor under the Amended Factoring Agreement, on a net basis as trade accounts receivables in cash flows from operating activities in the Company’s condensed consolidated statements of cash flows.

During the six months ended June 30, 2024, the Company factored accounts receivable invoices totaling approximately $7.0 million pursuant to the Amended Factoring Agreement, representing the face value of the invoices. The Company recognizes factoring costs upon disbursement of funds. The Company incurred a loss on sale of accounts receivables including expenses pursuant to the Amended Factoring Agreement totaling approximately $0.2 million and $0.4 million for the three and six months ended June 30, 2024, respectively, which is presented in selling, general and administrative expenses (exclusive of depreciation and amortization) on the condensed consolidated statements of operations.

2019 Credit Agreement

In October 2019, a wholly-owned UK subsidiary of XBP Europe (the “UK Subsidiary”) entered into a secured credit agreement (the “2019 Credit Agreement”) for a £9.0 million Secured Credit Facility (the “Secured Credit Facility”) consisting of (i) a secured Term Loan A facility in an aggregate principal amount of £2.0 million (the “Term Loan A Facility”), (ii) a secured Term Loan B facility in an aggregate principal amount of £2.0 million (the “Term Loan B Facility”), and (iii) a secured revolving credit facility in an aggregate principal amount of £5.0 million (the “Revolving Credit Facility”). On December 21, 2022, the UK Subsidiary amended its 2019 Credit Agreement, allowing the UK Subsidiary to affirm to extend the maturity of Term Loan A Facility and Term Loan B Facility to October 31, 2024 subject to compliance with financial covenants. On February 9, 2023, the UK Subsidiary amended its 2019 Credit Agreement, allowing the UK Subsidiary to extend the maturity of the Revolving Credit Facility to October 31, 2024 subject to compliance with financial covenants. The maturity of the Revolving Credit Facility has since been extended on various dates. On May 10, 2024, the maturity was further extended to August 31, 2025. As of June 30, 2024, the outstanding balance of the Term Loan A Facility, the Term Loan B Facility, and the Revolving Credit Facility was $1.7 million, $0.1 million, and $6.3 million, respectively. As of December 31, 2023, the outstanding balance of the Term Loan A Facility, the Term Loan B Facility, and the Revolving Credit Facility was $1.9 million, $0.4 million, and $6.4 million, respectively.

The 2019 Credit Agreement contains financial covenants including, but not limited to (a) a Combined Cashflow Coverage Ratio, which measures the ratio of (i) Combined Cashflow and (ii) Debt Service defined as finance charges in addition to mandatory repayments in respect to the 2019 Credit Agreement, (b) Combined Interest Coverage Ratio, which measures the ratio of (i) Combined EBITDA to (ii) Combined Finance Charges, (c) a Combined Total Net Leverage Ratio, which measures the ratio of (i) Combined Net Indebtedness in respect to the last day of the most recent period to (ii) EBITDA, (d) Guaranteed Intragroup Balances, (e) the Loan to Market Value defined as the Facility A Loan outstanding to the market value of the property in each case, as defined in the 2019 Credit Agreement. The term “Combined” refers to the UK Subsidiary and its wholly-owned subsidiaries.

The 2019 Credit Agreement and indenture governing the Secured Credit Facility contains limitations on the ability of the UK subsidiary to effect mergers and change of control events as well as certain other limitations, including limitations on: (i) the declaration and payment of dividends or other restricted payments (ii) substantial changes of the general nature of the business, (iii) acquisition of a company, (iv) enter a joint venture, (v) or effect a dormant subsidiary to commence trading or cease to satisfy the criteria of a dormant subsidiary.

The UK Subsidiary’s obligations under the 2019 Credit Agreement are jointly and severally guaranteed by certain of its existing and future direct and indirectly wholly owned subsidiaries. The 2019 Credit Agreement and the

2022 Committed Facility Agreement (defined below) contain cross default provisions which relate to the UK Subsidiary and its subsidiaries, but not any other entities within the consolidated group.

At inception, borrowings under the Secured Credit Facility bore interest at a rate per annum equal to the LIBOR plus the applicable margin of 2%, 2.5%, and 3% per annum for the Term Loan A Facility, the Term Loan B Facility, and the Revolving Credit Facility respectively. Effective October 29, 2021, borrowings under the Revolving Credit Facility bore interest at a rate per annum equal to the Sterling Overnight Index Average (“SONIA”) plus the applicable margin of 3%. Effective December 31, 2021, borrowings under the Term Loan A Facility and the Term Loan B Facility bore interest at a rate per annum equal to the SONIA plus the applicable margin of 2% and 2.5%, respectively.

In June 2020, the UK Subsidiary entered into an amendment to the 2019 Credit Agreement, to provide an additional aggregate principal amount of £4.0 million under a credit agreement (the “Revolving Working Capital Loan Facility” or “2020 Credit Agreement”) together with Revolving Credit Facility (the “Revolving Credit Facilities”). At the inception of the Revolving Working Capital Loan Facility, the borrowing bore an interest rate per annum equal to the LIBOR plus the applicable margin of 3.5% per annum. Effective March 31, 2023, borrowings under the Revolving Working Capital Loan Facility bore interest at a rate per annum equal to the SONIA plus the applicable margin of 3.5%.

The maturity of the Revolving Working Capital Loan Facility has since been extended on various dates subject to compliance with financial covenants. On May 10, 2024 the maturity was further extended to August 31, 2025. As of June 30, 2024 and December 31, 2023, the Revolving Working Capital Loan Facility had an outstanding principal balance of $7.4 million and $6.4 million, respectively.

As of June 30, 2024, the Company had $11.3 million in outstanding principal balance and less than $0.1 million available for additional borrowings under the Revolving Credit Facilities to the extent the Company’s compliance with financial covenants permits such borrowings.

As of June 30, 2024 and December 31, 2023, the UK Subsidiary was in compliance with all affirmative and negative covenants under the 2019 Credit Agreement, including any financial covenants, pertaining to its financing arrangements.

2022 Committed Facility Agreement

In May 2022, the UK Subsidiary entered into a committed facility agreement (the “2022 Committed Facility Agreement”), which includes a term loan for £1.4 million to be used in refinancing a property owned by XBP Europe in Dublin, Ireland (the “Property”). At inception of the 2022 Committed Facility Agreement, the borrowing bore an interest rate equal to 3.5% per annum in addition to the Bank of England Base Rate. The maturity of the 2022 Committed Facility Agreement is May 2027. As of June 30, 2024 and December 31, 2023, the 2022 Committed Facility Agreement had an outstanding balance of $1.4 million and $1.5 million, respectively.

The 2022 Committed Facility Agreement contains financial covenants including, but not limited to (a) a Combined Debt Service Coverage Ratio, which measures the cashflow less dividends, net capital expenditure, and taxation relative to the debt service for that relevant period, (b) interest cover, which measures EBITDA relative to the aggregate of (i) interest charges and (ii) interest element of finance leases in any relevant period, (c) Total Net Debt to EBITDA, which measures the total net debt relative to EBITDA for any relevant period, and (d) loan to market value, which measures the loan as a percentage of the aggregate market value of the Property. The term “Combined” refers to the UK subsidiary and its wholly-owned subsidiaries.

As of June 30, 2024 and December 31, 2023, the UK Subsidiary was in compliance with all affirmative and negative covenants under the 2022 Committed Facility Agreement, including any financial covenants pertaining to its financing arrangements. The Company continually monitors its compliance with such covenants. The Company believes it will remain in compliance with all such covenants for the next twelve months; however, due to the inherent uncertainty, management’s estimates of the achievement of its financial covenants may change in the future.

2024 Facilities Agreement

In June 2024, XBP Europe, Inc. a wholly-owned subsidiary of the Company, together with certain other subsidiaries (the “XBP Group”), entered into a Facilities Agreement (the “2024 Facilities Agreement”) with HSBC UK Bank plc (“HSBC”) for a £15.0 million and €10.5 million Secured Credit Facility consisting of (i) a single draw, secured Term Loan A facility in an aggregate principal amount of £3.0 million (the “2024 Term Loan A Facility”), (ii) a single draw, secured Term Loan B facility in an aggregate principal amount of €10.5 million (the “2024 Term Loan B Facility”, collectively with the 2024 Term Loan A Facility, the “2024 Term Loan Facilities”) and (iii) a multi-draw, multi-currency secured revolving credit facility in an aggregate principal amount of £12.0 million (the “2024 Revolving Credit Facility”), and, together with the 2024 Term Loan Facilities, (the “2024 Senior Credit Facilities”). The 2024 Term Loan Facilities mature on June 26, 2028 and the 2024 Revolving Credit Facility matures on June 26, 2027, with certain extension rights at the discretion of HSBC. An additional £14.0 million of credit under the 2024 Revolving Credit Facility may be made available at HSBC’s discretion for specific purposes as per the 2024 Facilities Agreement.

The Company will use the 2024 Term Loan Facilities to repay in full all outstanding indebtedness under the 2019 Credit Agreement, 2020 Credit Agreement and 2022 Committed Facility Agreement. The Company incurred $1.4 million in debt issuance costs related to the 2024 Facilities Agreement.

The 2024 Facilities Agreement contains financial covenants including, but not limited to, (i) requiring the maintenance of a consolidated total leverage ratio of not greater than 2.50 to 1.00 (with step-downs to (a) 2.25 to 1.00 starting January 1, 2025 and (b) 2.00 to 1.00 starting January 1, 2026); (ii) a cash flow coverage ratio of at least 1.10:1.00; and (iii) a consolidated interest coverage ratio of not less than 4.00 to 1.00.

The 2024 Facilities Agreement and indenture governing the 2024 Secured Credit Facilities contains certain affirmative and negative covenants limiting on the ability of the XBP Group to effect mergers and change of control events as well as certain other limitations, including limitations on (i) incurrence of additional indebtedness or liens, (ii) dispositions of assets, (iii) substantial changes of the general nature of the business, (iv) entering into restrictive agreements, (v) making certain investments, loans, advances, guarantees and acquisitions, (vi) prepaying certain indebtedness, (vii) the declaration and payment of dividends or other restricted payments, (viii) engaging in transactions with affiliates, or (ix) amending certain material documents.

Except as otherwise provided by applicable law, all obligations under the 2024 Facilities Agreement are jointly and severally unconditionally guaranteed by each member of the XBP Group.

Borrowings under the 2024 Term Loan A Facility, the 2024 Term Loan B Facility and 2024 Revolving Credit Facility bear interest at a rate per annum equal to the SONIA plus the applicable margin of 3.25%, Euro Interbank Offered Rate (“EURIBOR”) plus the applicable margin of 3.25% and Reference Rate plus the applicable margin of 3.25%, respectively. “Reference Rate” for any period means (i) Secured Overnight Financing Rate (“SOFR”) for funds extended in U.S. Dollars; (ii) the EURIBOR, for funds extended in Euros; (iii) the SONIA, for funds extended in Pounds Sterling; and the Stockholm Interbank Offered Rate (“STIBOR”) for funds extended in Swedish Krona.

As of June 30, 2024, the Company has drawn £12.0 million under 2024 Revolving Credit Facility in Euros currency. As of June 30, 2024, the outstanding balance under the 2024 Revolving Credit Facility was $15.2 million.

The Company may, at any time, prepay the principal of the 2024 Senior Credit Facilities. Each prepayment shall be accompanied by the payment of accrued interest, without any premium or penalty. However, the Company is limited to a maximum of four voluntary prepayments of the 2024 Revolving Credit Facility within any consecutive twelve-month period.

Debt Outstanding

As of June 30, 2024, and December 31, 2023, the following debt instruments were outstanding:


	June 30,		December 31,
(dollars in thousands)	2024		2023
Term loan	$	3,292	$	3,785
Revolvers		13,653		12,767
2024 Revolving Credit Facility		15,205		—
Secured borrowings under Securitization Facility		60		74
Total debt		32,210		16,626
Less: Current portion of long-term debt		5,373		3,863
Long-term debt, net of current maturities	$	26,837	$	12,763

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

New Accounting Pronouncements

6 Months Ended

Jun. 30, 2024

New Accounting Pronouncements

New Accounting Pronouncements

3.New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Effective January 1, 2024, the Company adopted ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. The FASB-issued guidance clarifies the accounting for leasehold improvements associated with common control leases by requiring that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term), as long as the lessee controls the use of the underlying asset through a lease. Additionally, leasehold improvements associated with common control leases should be accounted for as a transfer between entities under common control through an adjustment to equity, if, and when, the lessee no longer controls the use of the underlying asset. The adoption had no impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures.

Recently Issued Accounting Pronouncements

In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements-Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which modifies the disclosure and presentation requirements of a variety of US GAAP codification topics by aligning them with the SEC Regulation S-X or S-K, which are rules about the form and content of financial reports. The provisions of this ASU are contingent upon when the SEC removes the related disclosure provisions from Regulation S-X and S-K. This guidance is effective for the Company no later than June 30, 2027 and is not expected to have a material impact on the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires retrospective disclosure of significant segment expenses and other segment items on an annual and interim basis. Additionally, it requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”). This ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that adopting this standard will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an annual tabular effective tax rate reconciliation disclosure including information for specified categories and jurisdiction levels, as well as, disclosure of income taxes paid, net of refunds received, disaggregated by federal, state/local, and significant foreign jurisdiction. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that adopting this standard will have on its consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Stockholders' Deficit

6 Months Ended

Jun. 30, 2024

Stockholders' Deficit

Stockholders' Deficit

16.Stockholders’ Deficit

Preferred Stock — The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.0001 per share. As of June 30, 2024, there were no shares of preferred stock issued or outstanding.

Common Stock — The Company is authorized to issue 200,000,000 shares of Common stock with a par value of $0.0001 per share. Each holder of Common Stock will be entitled to one (1) vote in person or by proxy for each share of the Common Stock. The holders of shares of Common Stock will not have cumulative voting rights. As of June 30, 2024, there were 30,166,102 shares of Common stock issued and outstanding, respectively.

- Definition

The entire disclosure for equity.

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+ Details

Intangible Assets and Goodwill - Estimated intangibles amortization expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Estimated Amortization Expenses
Remainder of 2024	$ 356
2025	431
2026	425
2027	58
Total	$ 1,270	$ 1,498

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Stock-Based Compensation

Summary of restricted stock unit activity


				Average
		Weighted		Remaining
	Number	Average Grant		Contractual Life
	of Units	Date Fair Value		(Years)
Granted	3,325,329	$	1.24
Forfeited	—		—
Vested	—		—
Outstanding Balance as of June 30, 2024	3,325,329	$	1.24	2.70

Summary of stock option activity


						Average
		Weighted		Weighted		Remaining
		Average Grant		Average		Vesting Period
	Outstanding	Date Fair Value		Exercise Price		(Years)
Granted	95,000	$	0.58	$
Exercised	—		—
Forfeited	—		—
Expired	—		—
Outstanding Balance as of June 30, 2024⁽¹⁾	95,000	$	0.58	$	1.31	3.84

(1)	None of the outstanding options are exercisable as of June 30, 2024.

Fair Value Measurement (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Level 3 \| Private Warrants
Fair Value Measurement
Value of private warrants	$ 0.0	$ 0.0

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (4,723)	$ (558)	$ (6,931)	$ (3,064)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	144	(505)	422	(699)
Unrealized pension actuarial gains (losses), net of tax	247	(113)	537	(203)
Total other comprehensive loss, net of tax	$ (4,332)	$ (1,176)	$ (5,972)	$ (3,966)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Inventories

Schedule of Inventories, Net


	June 30,		December 31,
(dollars in thousands)	2024		2023
Finished goods	$	7,068	$	7,182
Allowance for obsolescence		(2,379)		(2,442)
Total inventories, net	$	4,689	$	4,740

Warrants (Tables)

6 Months Ended

Jun. 30, 2024

Warrants

Schedule of common stock warrants outstanding


	Warrants	Exercise Price	Issuance Date	Expiration
Private Placement Warrants	135,000	11.50	3/11/2021	11/29/2028
Forward Purchase Warrants	250,000	11.50	3/11/2021	11/29/2028
Public Warrants	6,249,980	11.50	3/11/2021	11/29/2028
Total	6,634,980

Subsequent event (Details) € in Thousands, £ in Thousands, $ in Thousands				6 Months Ended
	Jul. 02, 2024 USD ($) installment	Jul. 02, 2024 GBP (£) installment	Jul. 02, 2024 EUR (€) installment	Jun. 30, 2024 USD ($)
Subsequent event
Proceeds from credit facility				$ 15,339
Subsequent event
Subsequent event
Unamortized debt issuance cost	$ 100
Subsequent event \| 2024 Facilities Agreement \| Term Loan A Facility
Subsequent event
Proceeds from credit facility	$ 3,800
Number of equal instalments \| installment	15	15	15
Frequency of repayment of instalments	quarterly	quarterly	quarterly
Instalment principal amount \| £		£ 150
Remaining principal amount to be paid on maturity \| £		£ 750
Subsequent event \| 2024 Facilities Agreement \| Term Loan B Facility
Subsequent event
Proceeds from credit facility	$ 11,300
Number of equal instalments \| installment	15	15	15
Frequency of repayment of instalments	quarterly	quarterly	quarterly
Instalment principal amount \| €			€ 525
Remaining principal amount to be paid on maturity \| £		£ 2,625
Subsequent event \| 2024 Facilities Agreement \| Revolving Working Capital Loan Facility
Subsequent event
Repayments of credit facility	$ 5,100
Subsequent event \| 2024 Facilities Agreement \| Secured Credit Facility
Subsequent event
Repayments of credit facility	8,100
Subsequent event \| 2024 Facilities Agreement \| 2022 Committed Facility Agreement
Subsequent event
Repayments of credit facility	$ 1,400

Summary of Significant Accounting Policies - Remaining Performance Obligations (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total	$ 5,194
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation - Period of satisfaction (in years)	6 months
Total	$ 4,670
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation - Period of satisfaction (in years)	1 year
Total	$ 446
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation - Period of satisfaction (in years)	1 year
Total	$ 9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation - Period of satisfaction (in years)	1 year
Total	$ 69

Restructuring - Schedule of restructuring activity and balance of restructuring liability (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Restructuring
Balance at beginning of the period	$ 5,454	$ 2,036
Restructuring charges	$ 558	$ 4,484
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration]	Selling General And Administrative Expense, Excluding Depreciation, Depletion and Amortization	Selling General And Administrative Expense, Excluding Depreciation, Depletion and Amortization
Payment of benefits	$ (4,136)	$ (1,066)
Balance at end of the period	1,876	5,454
Current portion of the restructuring liability included in Accrued compensation and benefits	$ 1,900	$ 5,500

General

6 Months Ended

Jun. 30, 2024

General

General

1.General

XBP Europe Holdings, Inc. (the “Company”, “XBP Europe”, “we”, “our” or “us”) is a pan-European integrator of bills, payments and related solutions and services seeking to enable digital transformation of businesses. The Company’s name — “XBP” — stands for “exchange for bills and payments” and reflects the Company’s strategy to facilitate connections between buyers and suppliers to optimize clients’ bills and payments and related digitization processes. XBP believes its business ultimately advances digital transformation, improves market-wide liquidity, and encourages sustainable business practices.

The Company provides business process management solutions with proprietary software suites and deep domain expertise, serving as a technology and operations partner for its clients’ strategic journeys and streamlining their complex, disconnected payment processes. The Company serves over 2,000 clients across Europe, the Middle East and Africa (“EMEA”). The Company’s client relationships span multiple industries, including banking, healthcare, insurance, and the public sector. The Company is able to deploy its solutions to clients in any EMEA market due to its cloud-based structure. Its physical footprint spans 15 countries with 32 locations.

These condensed consolidated financial statements should be read in conjunction with the below notes and the notes to the consolidated financial statements as of and for the year ended December 31, 2023 included in the XBP Europe annual report on Form 10-K for such period (the “2023 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) on April 1, 2024 and available at the SEC’s website at http://www.sec.gov.

The accompanying condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X under the Securities Act of 1933, as amended (the “Securities Act”), as they apply to interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These accounting principles require us to use estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from our estimates.

The condensed consolidated financial statements are unaudited, but in our opinion include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results for the interim period. The interim financial results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year.

Merger/Business Combination with CF Acquisition Corp. VIII

The Company was a special purpose acquisition company called CF Acquisition Corp. VIII (“CF VIII”) prior to the closing of a business combination (the “Business Combination”) on November 29, 2023. Pursuant to that certain Agreement and Plan of Merger, dated October 9, 2022 (the “Merger Agreement”) whereby XBP Europe, Inc., a Delaware corporation, and an indirect subsidiary of Exela Technologies, Inc., a Delaware corporation (“ETI”), became a wholly owned subsidiary of CFV III. In connection with the consummation of the Business Combination, the Company changed its name from CF VIII to “XBP Europe Holdings, Inc.” The Business Combination was accounted for as a reverse capitalization in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). Under this method of accounting, CF VIII was treated as the “acquired” company for financial reporting purposes with XBP Europe surviving as a direct wholly-owned subsidiary of CF VIII.

Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Intangibles, net
Gross Carrying Amount	$ 3,970		$ 3,970		$ 3,913
Accumulated Amortization	(2,700)		(2,700)		(2,415)
Total	1,270		1,270		$ 1,498
Amortization of intangible assets	$ 200	$ 100	$ 360	$ 228
Customer relationships
Intangible Assets and Goodwill
Weighted Average Remaining Useful Life (in Years)	2 years 6 months		2 years 6 months		3 years
Intangibles, net
Gross Carrying Amount	$ 3,054		$ 3,054		$ 3,145
Accumulated Amortization	(2,126)		(2,126)		(1,997)
Total	$ 928		$ 928		$ 1,148
Internally developed software
Intangible Assets and Goodwill
Weighted Average Remaining Useful Life (in Years)	3 years		3 years
Intangibles, net
Gross Carrying Amount	$ 173		$ 173
Total	$ 173		$ 173
Outsource contract costs
Intangible Assets and Goodwill
Weighted Average Remaining Useful Life (in Years)	6 months		6 months		1 year
Intangibles, net
Gross Carrying Amount	$ 743		$ 743		$ 768
Accumulated Amortization	(574)		(574)		(418)
Total	$ 169		$ 169		$ 350

Employee Benefit Plans

6 Months Ended

Jun. 30, 2024

Employee Benefit Plans

Employee Benefit Plans

11.Employee Benefit Plans

U.K. Pension Plan

Two of our subsidiaries in the United Kingdom provide pension benefits to certain retirees and eligible dependents. Employees eligible for participation included all full-time regular employees who were more than three years from retirement prior to October 2001. A retirement pension or a lump-sum payment may be paid dependent upon length of service at the mandatory retirement age. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan. No new employees are registered under this plan and the pension obligation for the existing participants of the plan is calculated based on actual salary of the participants at the earlier of two dates, the participants leaving the Company or March 31, 2015. The expected rate of return assumptions for plan assets relate solely to the UK plan and are based mainly on historical performance achieved over a long period of time (15 to 20 years) encompassing many business and economic cycles.

German Pension Plan

XBP Europe’s subsidiaries in Germany, Exela Technologies ECM Solutions GmbH, provides pension benefits to certain retirees. Employees eligible for participation include all employees who started working for the Company or

its predecessors prior to September 30, 1987 and have finished a qualifying period of at least 10 years. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan. The German pension plan is an unfunded plan and therefore has no plan assets. No new employees are registered under this plan and the participants who are already eligible to receive benefits under this plan are no longer employees of the Company.

Norway Pension Plan

Our subsidiary in Norway provides pension benefits to eligible retirees and eligible dependents. Employees eligible for participation include all employees who were more than three years from retirement prior to March 2018. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan. No new employees are registered under this plan and the pension obligation for the existing participants of the plan is calculated based on actual salary of the participants at the earlier of two dates, the participants leaving the Company or April 30, 2018.

Asterion Pension Plan

In 2018, Exela Technologies Holding GmbH (through the Asterion Business Combination), acquired the obligation to provide pension benefits to eligible retirees and eligible dependents. Employees eligible for participation included all full-time regular employees who were more than three years from retirement prior to July 2003. A retirement pension or a lump-sum payment may be paid dependent upon length of service at the mandatory retirement age. The Company accrues the cost of these benefits over the service lives of the covered employees based on an actuarial calculation. The Company uses a December 31 measurement date for this plan. No new employees are registered under this plan and the pension obligation for the existing participants of the plan is calculated based on actual salary of the participants at the earlier of two dates, the participants leaving the Company or April 10, 2018.

Tax Effect on Accumulated Other Comprehensive Loss

As of June 30, 2024, and December 31, 2023, the Company had actuarial gain of $0.7 million and $0.2 million, respectively, which is net of a deferred tax benefit of $1.3 million for each period.

Pension and Postretirement Expense

The components of the net periodic benefit cost are as follows:


	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Service cost	$	9	$	10	$	19	$	20
Interest cost		739		770		1,482		1,519
Expected return on plan assets		(726)		(685)		(1,455)		(1,352)
Amortization
Amortization of prior service cost		—		90		—		178
Amortization of net loss		305		398		612		783
Net periodic benefit cost	$	327	$	583	$	658	$	1,148

The Company records pension interest cost within interest expense, net. Expected return on plan assets, amortization of prior service costs, and amortization of net losses are recorded within pension income, net. Service cost is recorded within cost of revenue.

Employer Contributions

XBP Europe’s funding of employer contributions is based on governmental requirements and differs from those methods used to recognize pension expense. The Company made contributions of $0.2 and $0.6 million to its pension plans during the three months ended June 30, 2024 and 2023, respectively, and $0.2 million and $1.2 million for the six

months ended June 30, 2024 and 2023, respectively. The Company has plans to fund the pension plans with the required contributions for 2024 based on current plan provisions.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480266/715-60-50-3

+ Details

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Selling, general and administrative expenses (exclusive of depreciation and amortization)	$ 6,905	$ 8,181	$ 14,851	$ 16,595
Depreciation and amortization	923	946	1,880	1,856
Operating profit (loss)	(2,413)	1,427	(2,342)	398
Other expense (income), net
Foreign exchange losses, net	704	661	1,536	940
Changes in fair value of warrant liability	(3)		(40)
Pension income, net	(421)	(197)	(843)	(389)
Net loss before income taxes	(4,181)	(173)	(5,929)	(2,587)
Income tax expense	542	385	1,002	477
Net loss	$ (4,723)	$ (558)	$ (6,931)	$ (3,064)
Loss per share:
Basic (in dollars per share)	$ (0.16)	$ (0.03)	$ (0.23)	$ (0.14)
Diluted (in dollars per share)	$ (0.16)	$ (0.03)	$ (0.23)	$ (0.14)
Related Party
Revenue, net	$ 81	$ 73	$ 147	$ 96
Cost of revenue (exclusive of depreciation and amortization)	10	12	28	63
Related party expense	1,215	1,133	2,177	2,298
Other expense (income), net
Interest expense (income), net	22	(51)	41	(6)
Non-related party
Revenue, net	36,031	42,294	76,315	85,072
Cost of revenue (exclusive of depreciation and amortization)	29,472	30,668	59,868	63,958
Other expense (income), net
Interest expense (income), net	$ 1,466	$ 1,187	$ 2,893	$ 2,440

Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2024

Intangible Assets and Goodwill

Schedule of intangible assets


	Weighted
	Average	June 30, 2024
	Remaining	Gross
	Useful Life	Carrying		Accumulated		Intangible Asset,
(dollars in thousands)	(in Years)	Amount (a)		Amortization		net
Customer relationships	2.5	$	3,054	$	(2,126)	$	928
Internally developed software	3.0		173		—		173
Outsource contract costs	0.5		743		(574)		169
Total intangibles, net		$	3,970	$	(2,700)	$	1,270


	Weighted
	Average	December 31, 2023
	Remaining	Gross
	Useful Life	Carrying		Accumulated		Intangible Asset,
(dollars in thousands)	(in Years)	Amount (a)		Amortization		net
Customer relationships	3.0	$	3,145	$	(1,997)	$	1,148
Outsource contract costs	1.0		768		(418)		350
Total intangibles, net		$	3,913	$	(2,415)	$	1,498

(a)	Amounts include intangibles acquired in business combinations and asset acquisitions

Schedule of estimated intangibles amortization expense


	Estimated
	Amortization
(dollars in thousands)	Expenses
Remainder of 2024	$	356
2025		431
2026		425
2027		58
Total	$	1,270

Schedule of goodwill by reporting segment


	Balances at								Currency		Balances at
	January 1,								Translation		June 30,
(dollars in thousands)	2024		Additions		Disposals		Impairments		Adjustments		2024
Bills and Payments	$	10,058	$	—	$	—	$	—	$	(276)	$	9,782
Technology		12,852		—		—		—		(319)		12,533
Total	$	22,910	$	—	$	—	$	—	$	(595)	$	22,315


	Balances at								Currency		Balances at
	January 1,								Translation		December 31,
(dollars in thousands)	2023		Additions		Disposals		Impairments		Adjustments		2023
Bills and Payments	$	9,689	$	—	$	—	$	—	$	369	$	10,058
Technology		12,373		—		—		—		479		12,852
Total	$	22,062	$	—	$	—	$	—	$	848	$	22,910

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment, Net.

Property, Plant and equipment, Net

7.Property, Plant and Equipment, Net

Property, plant, and equipment, which include assets recorded under finance leases, are stated at cost less accumulated depreciation, and amortization, and consist of the following:


	Expected Useful Lives	June 30,		December 31,
(dollars in thousands)	(in Years)	2024		2023
Buildings and improvements	7 – 40	$	8,947	$	9,115
Leasehold improvements	Shorter of life of improvement or lease term		641		709
Machinery and equipment	5 – 15		8,321		8,256
Computer equipment and software	3 – 8		26,353		26,763
Furniture and Fixtures	5 – 15		7,673		7,766
Finance lease right-of use assets	Shorter of life of the asset or lease term		4,253		4,380
			56,188		56,989
Less: Accumulated depreciation and amortization			(43,473)		(42,990)
Total property, plant and equipment, net		$	12,715	$	13,999

Depreciation expense related to property, plant and equipment was $0.7 million and $0.9 million for the three months ended June 30, 2024 and 2023, respectively, and $1.5 million and $1.7 million for the six months ended June 30, 2024 and 2023, respectively.

Income Taxes

6 Months Ended

Jun. 30, 2024

Income Taxes

Income Taxes

10.Income Taxes

The Company applies an estimated annual effective tax rate (“ETR”) approach for calculating tax provision for interim periods, as required under GAAP. The Company recorded an income tax expense of $0.5 million and $0.4 million for the three months ended June 30, 2024 and 2023, respectively, and $1.0 million and $0.5 million for the six months ended June 30, 2024 and 2023, respectively, from continuing operations.

The Company’s ETR of (13.0)% and (16.9)% for three and six months ended June 30, 2024, respectively, differed from the expected U.S. statutory tax rate of 21.0% and was primarily impacted by permanent tax adjustments, foreign tax rates that differ from the U.S. federal statutory rate, and valuation allowances on a portion of the Company’s foreign deferred tax assets that are not more likely than not to be realized.

For the three and six months ended June 30, 2023, the Company’s ETR of (249.0)% and (18.6)%, respectively, differed from the expected U.S. statutory tax rate of 21.0%, and was primarily impacted by permanent tax adjustments, foreign tax rates that differ from the U.S. federal statutory rate, and valuation allowances on a portion of the Company’s foreign deferred tax assets that are not more likely than not to be realized.

As of June 30, 2024, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2023.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Summary of Significant Accounting Policies

Stock-Based Compensation

Stock-Based Compensation

Revenue Recognition

Revenue Recognition

Nature of Services

Revenue from the sale of hardware solutions is recognized on a point in time basis and related maintenance are recognized ratably over the contractual term.

Disaggregation of Revenues

The following tables disaggregate revenue from contracts by geographic region for the three and six months ended June 30, 2024 and 2023:


	Three months ended				Six months ended
	June 30,				June 30,
(dollars in thousands)	2024		2023		2024		2023
France	$	12,773	$	14,463	$	27,000	$	31,905
Germany		10,868		8,138		23,305		18,680
United Kingdom		7,182		11,230		14,738		19,421
Sweden		3,105		5,899		7,084		9,983
Other		2,103		2,564		4,188		5,083
Total Revenue, net	$	36,031	$	42,294	$	76,315	$	85,072

Contract Balances

The following table presents contract assets, contract liabilities and contract costs recognized at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(dollars in thousands)	2024		2023
Accounts receivable, net	$	27,935	$	30,795
Deferred revenues		5,194		6,004
Customer deposits		713		536
Costs to obtain and fulfill a contract		169		350

Performance Obligations

Reimbursements from customers, such as postage costs, are included in revenue, while the related costs are included in cost of revenue.

Transaction Price Allocated to the Remaining Performance Obligations


(dollars in thousands)
Remainder of 2024	$	4,670
2025		446
2026		9
2027		69
Total	$	5,194

Net Loss per Share

The components of basic and diluted EPS are as follows:


	Three months ended				Six months ended
	June 30,				June 30,
(dollars in thousands, except share and per share amounts)	2024		2023		2024		2023
Net loss attributable to common stockholders (A)	$	(4,723)	$	(558)	$	(6,931)	$	(3,064)
Weighted average common shares outstanding – basic and diluted (B)		30,166,102		21,802,689		30,166,102		21,802,689
Loss Per Share:
Basic and diluted (A/B)	$	(0.16)	$	(0.03)	$	(0.23)	$	(0.14)

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

- Definition

Disclosure of accounting policy for revenue from contract with customer.

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- Definition

Disclosure of accounting policy for award under share-based payment arrangement. Includes, but is not limited to, methodology and assumption used in measuring cost.

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+ Details

Related Parties

6 Months Ended

Jun. 30, 2024

Related Parties

Related Parties

18.Related Parties

The components of related party expense in the condensed consolidated statements of operations are summarized as follows:


	Three months ended				Six months ended
	June 30,				June 30,
(dollars in thousands)	2024		2023		2024		2023
Related party shared services	$	839	$	869	$	1,583	$	1,776
Related party royalty		—		93		—		223
Related party service fee		376		171		594		299
Total related party expense	$	1,215	$	1,133	$	2,177	$	2,298

Historically, the Company has been managed and operated in the ordinary course of business with other affiliates of ETI. Accordingly, certain shared costs have been allocated to the Company and reflected as expenses in the condensed consolidated financial statements.

Sales of Products and Services

During the historical periods presented, the Company sold products and services to non-XBP Europe subsidiaries of ETI. Revenue, net in the condensed consolidated statements of operations include sales to affiliates of ETI of $0.1 million and $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and less than $0.2 million and $0.1 million for the six months ended June 30, 2024 and 2023, respectively.

Purchases

During the historical periods presented, the Company purchased high-speed scanners and related products from non-XBP Europe subsidiaries of ETI. These purchases totaled $0 and $0.2 million for the three months ended June 30, 2024 and 2023, respectively, and $0 and $1.0 million for the six months ended June 30, 2024 and 2023, respectively.

Shared Service Center Costs

The historical costs and expenses reflected in our financial statements include costs for certain shared service functions historically provided by the non-XBP Europe subsidiaries of the Company’s parent, ETI, including, but not limited to accounting and finance, IT and business process operations. Where possible, these charges were allocated based on full-time equivalents (FTE’s), formal agreements between XBP Europe and subsidiaries of ETI, or other allocation methodologies that Management determined to be a reasonable reflection of the utilization of services provided or the benefit received by XBP Europe and all costs of operating XBP Europe during the periods presented.

The allocated shared service expenses and general corporate expenses incurred pursuant to the Services Agreement for the three months ended June 30, 2024 and 2023 were $0.9 million and $0.9 million, respectively, and

$1.6 million and $1.8 million for the six months ended June 30, 2024 and 2023, respectively, and are included in the related party expenses in the condensed consolidated statements of operations.

In the opinion of management of ETI and the Company, the expense and cost allocations have been determined on a basis considered to be a reasonable reflection of the utilization of services provided or the benefit received by the Company during 2024 and 2023. The amounts that would have been, or will be incurred, on a stand-alone basis could differ from the amounts allocated due to economies of scale, difference in management judgment, a requirement for more or fewer employees or other factors. Management does not believe, however, that it is practicable to estimate what these expenses would have been had the Company operated as an independent entity, including any expenses associated with obtaining any of these services from unaffiliated entities. In addition, the future results of operations, financial position and cash flows could differ materially from the historical results presented herein.

Royalty Expenses

During the historical periods presented, subsidiaries of the Company’s parent, ETI, charged royalty fees for allowing the Company to use tradenames and trademarks owned by subsidiaries of ETI. The Company incurred royalty expense of $0 and $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and $0 and $0.2 million for the six months ended June 30, 2024 and 2023, respectively, included in related party expense within the condensed consolidated statements of operations.

Service Fee

During the historical periods presented, subsidiaries of ETI provided management services to the Company in exchange for a management fee. These management services included provision of legal, human resources, corporate finance, and marketing support. The management fee was calculated based on a weighted average of total external revenue, headcount and total assets attributable to the Company. On October 9, 2022 the management fee was terminated when the Merger Agreement was entered into and was replaced by the related party service fee pursuant to the Services Agreement, which reduced the fee and modified the services provided. Services provided under Annex A of the Services Agreement include sales of certain hardware, operations delivery, finance, accounting, human resource and technology support services. The Company incurred total fees of $0.4 million and $0.2 million for the three months ended June 30, 2024 and 2023, respectively, and $0.6 million and $0.3 million for the six months ended June 30, 2024 and 2023, respectively.

Note Receivable

The Company entered into an Intercompany Loan Agreement with an affiliate of ETI on January 1, 2016, where the Company agreed to lend up to €20 million to the affiliate. The related party note receivable had a six year term with the option to extend for an additional one year term and bore annual interest of 9.5%, due at the end of the term. On January 1, 2023, the Company amended its Intercompany Loan Agreement, extending the maturity of the Intercompany Loan Agreement to December 31, 2023. In accordance with the Ultimate Parent Support Agreement, related party note receivable was eliminated at Closing against related party payables with a residual amount recorded to additional paid-in capital. No related party note receivable was recorded in the condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023. The condensed consolidated statements of operations included $0 and $0.3 million of related party interest income for the three months ended June 30, 2024 and 2023, respectively, and $0 and $0.6 million for the six months ended June 30, 2024 and 2023, respectively.

Notes Payable

The Company entered into three Intercompany Loan Agreements with an affiliate of ETI, in September 2009 and May 2010, whereby the affiliate of ETI agreed to lend up to £9.3 million to the Company (“related party notes payable”). The related party notes payable which were denominated in Great British pounds accrued interest daily at the one-month LIBOR rate for United States dollar deposits in the London interbank market plus four percentage points. These notes had an original maturity date of one year (which was extended by the lender for one additional year on each anniversary of the notes) and were assigned by the lender to another affiliate of ETI and amended with an effective date

of December 1, 2012. The amendment amended (a) the interest rate to a fixed rate of 4% plus LIBOR for the remainder of 2012, 12% for 2013 and 13.5% thereafter, (b) extended the term of the agreement to December 31, 2024, and (c) denominated the notes in United States dollars. In accordance with the Ultimate Parent Support Agreement, related party notes payable were eliminated at closing with a corresponding impact to additional paid-in capital. As a result, no related party notes payable was recorded in the condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023. The condensed consolidated statements of operations included related party interest expense of $0 and $0.4 million for the three months ended June 30, 2024 and 2023, respectively, and $0 and $0.8 million for the six months ended June 30, 2024 and 2023, respectively, in the related party interest expense (income), net.

Further, the Company entered into another four Intercompany Loan Agreements (“new related party notes payable”) with affiliates of ETI, three of the notes are dated September 4, 2023 (and subsequently amended on September 15, 2023) and one note is dated September 15, 2023. The new related party notes payable have a ten year term and bear annual interest of 6.0%, due at the end of the term. The condensed consolidated balance sheets included $1.5 million new related party notes payable as of June 30, 2024 and December 31, 2023. The condensed consolidated statements of operations included less than $0.1 million of related party interest expense for the three and six months ended June 30, 2024 in the related party interest expense (income), net.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

Accounts Receivable - Allowance for expected credit losses (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Changes in allowance for expected credit losses:
Balance of the allowance for expected credit losses, beginning	$ 1,272
Change in the provision for expected credit losses for the period	176
Balance of the allowance for expected credit losses, ending	$ 1,448

Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Segment Information

Reconciliation of segment profit to net loss before income taxes


	Three months ended June 30, 2024
(dollars in thousands)	Bills & Payments		Technology		Total
Revenue, net (including related party revenue of $0.1 million)	$	27,305	$	8,807	$	36,112
Cost of revenue (including related party cost of revenue of $0.0 million, exclusive of depreciation and amortization)		25,074		4,408		29,482
Segment profit		2,231		4,399		6,630
Selling, general and administrative expenses (exclusive of depreciation and amortization)						6,905
Related party expense						1,215
Depreciation and amortization						923
Interest expense, net						1,466
Related party interest expense, net						22
Foreign exchange losses, net						704
Changes in fair value of warrant liability						(3)
Pension income, net						(421)
Net loss before income taxes					$	(4,181)


	Three months ended June 30, 2023
(dollars in thousands)	Bills & Payments		Technology		Total
Revenue, net (including related party revenue of $0.1 million)	$	30,198	$	12,169	$	42,367
Cost of revenue (including related party cost of revenue of $0.0 million, exclusive of depreciation and amortization)		26,465		4,215		30,680
Segment profit		3,733		7,954		11,687
Selling, general and administrative expenses (exclusive of depreciation and amortization)						8,181
Related party expense						1,133
Depreciation and amortization						946
Interest expense, net						1,187
Related party interest income, net						(51)
Foreign exchange losses, net						661
Pension income, net						(197)
Net loss before income taxes					$	(173)


	Six months ended June 30, 2024
(dollars in thousands)	Bills & Payments		Technology		Total
Revenue, net (including related party revenue of $0.1 million)	$	56,179	$	20,283	$	76,462
Cost of revenue (including related party cost of revenue of $0.0 million, exclusive of depreciation and amortization)		50,391		9,505		59,896
Segment profit		5,788		10,778		16,566
Selling, general and administrative expenses (exclusive of depreciation and amortization)						14,851
Related party expense						2,177
Depreciation and amortization						1,880
Interest expense, net						2,893
Related party interest expense, net						41
Foreign exchange losses, net						1,536
Changes in fair value of warrant liability						(40)
Pension income, net						(843)
Net loss before income taxes					$	(5,929)


	Six months ended June 30, 2023
(dollars in thousands)	Bills & Payments		Technology		Total
Revenue, net (including related party revenue of $0.1 million)	$	63,766	$	21,402	$	85,168
Cost of revenue (including related party cost of revenue of $0.1 million, exclusive of depreciation and amortization)		55,189		8,832		64,021
Segment profit		8,577		12,570		21,147
Selling, general and administrative expenses (exclusive of depreciation and amortization)						16,595
Related party expense						2,298
Depreciation and amortization						1,856
Interest expense, net						2,440
Related party interest income, net						(6)
Foreign exchange losses, net						940
Pension income, net						(389)
Net loss before income taxes					$	(2,587)

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2024

Employee Benefit Plans

Schedule of components of net periodic benefit cost


	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Service cost	$	9	$	10	$	19	$	20
Interest cost		739		770		1,482		1,519
Expected return on plan assets		(726)		(685)		(1,455)		(1,352)
Amortization
Amortization of prior service cost		—		90		—		178
Amortization of net loss		305		398		612		783
Net periodic benefit cost	$	327	$	583	$	658	$	1,148

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts Receivable
Less: Allowance for credit losses	$ (1,448)	$ (1,272)
Total accounts receivable, net	27,935	30,795
Billed receivables
Accounts Receivable
Accounts receivables, gross	18,875	20,885
Unbilled receivables
Accounts Receivable
Accounts receivables, gross	$ 10,508	$ 11,182

Segment Information

6 Months Ended

Jun. 30, 2024

Segment Information

Segment Information

19.Segment Information

The Company’s operating segments are significant strategic business units that align its products and services with how it manages its business, approaches the markets and interacts with its clients. The Company is organized into two segments: Bills and Payments and Technology.

Bills and Payments

The Bills & Payments business unit primarily focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. It offers automation of Accounts Payable (“AP”) and Accounts Receivables (“AR”) processes and through its platform, XBP, seeks to integrate buyers and suppliers across Europe. This business unit also includes our digital transformation revenue, which is both project based and recurring.

Technology

The Technology business unit primarily focuses on sales of recurring software licenses and related maintenance, hardware solutions and related maintenance and professional services.

The chief operating decision maker reviews segment profit to evaluate operating segment performance and determine how to allocate resources to operating segments. “Segment profit” is defined as revenue less cost of revenue (exclusive of depreciation and amortization). The Company does not allocate Selling, general, and administrative expenses, depreciation and amortization, interest expense and foreign exchange losses, net. The Company manages assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segments are not presented. A reconciliation of segment profit to net loss before income taxes is presented below.


	Three months ended June 30, 2024
(dollars in thousands)	Bills & Payments		Technology		Total
Revenue, net (including related party revenue of $0.1 million)	$	27,305	$	8,807	$	36,112
Cost of revenue (including related party cost of revenue of $0.0 million, exclusive of depreciation and amortization)		25,074		4,408		29,482
Segment profit		2,231		4,399		6,630
Selling, general and administrative expenses (exclusive of depreciation and amortization)						6,905
Related party expense						1,215
Depreciation and amortization						923
Interest expense, net						1,466
Related party interest expense, net						22
Foreign exchange losses, net						704
Changes in fair value of warrant liability						(3)
Pension income, net						(421)
Net loss before income taxes					$	(4,181)


	Three months ended June 30, 2023
(dollars in thousands)	Bills & Payments		Technology		Total
Revenue, net (including related party revenue of $0.1 million)	$	30,198	$	12,169	$	42,367
Cost of revenue (including related party cost of revenue of $0.0 million, exclusive of depreciation and amortization)		26,465		4,215		30,680
Segment profit		3,733		7,954		11,687
Selling, general and administrative expenses (exclusive of depreciation and amortization)						8,181
Related party expense						1,133
Depreciation and amortization						946
Interest expense, net						1,187
Related party interest income, net						(51)
Foreign exchange losses, net						661
Pension income, net						(197)
Net loss before income taxes					$	(173)


	Six months ended June 30, 2024
(dollars in thousands)	Bills & Payments		Technology		Total
Revenue, net (including related party revenue of $0.1 million)	$	56,179	$	20,283	$	76,462
Cost of revenue (including related party cost of revenue of $0.0 million, exclusive of depreciation and amortization)		50,391		9,505		59,896
Segment profit		5,788		10,778		16,566
Selling, general and administrative expenses (exclusive of depreciation and amortization)						14,851
Related party expense						2,177
Depreciation and amortization						1,880
Interest expense, net						2,893
Related party interest expense, net						41
Foreign exchange losses, net						1,536
Changes in fair value of warrant liability						(40)
Pension income, net						(843)
Net loss before income taxes					$	(5,929)


	Six months ended June 30, 2023
(dollars in thousands)	Bills & Payments		Technology		Total
Revenue, net (including related party revenue of $0.1 million)	$	63,766	$	21,402	$	85,168
Cost of revenue (including related party cost of revenue of $0.1 million, exclusive of depreciation and amortization)		55,189		8,832		64,021
Segment profit		8,577		12,570		21,147
Selling, general and administrative expenses (exclusive of depreciation and amortization)						16,595
Related party expense						2,298
Depreciation and amortization						1,856
Interest expense, net						2,440
Related party interest income, net						(6)
Foreign exchange losses, net						940
Pension income, net						(389)
Net loss before income taxes					$	(2,587)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Summary of Significant Accounting Policies - Net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common Stock excluded in calculation of diluted net-loss per share (in shares)	6,634,980				6,634,980
Net loss attributable to common stockholders	$ (4,723)	$ (2,208)	$ (558)	$ (2,506)	$ (6,931)	$ (3,064)
Weighted average common shares outstanding - basic (in shares)	30,166,102		21,802,689		30,166,102	21,802,689
Weighted average common shares outstanding - diluted (in shares)	30,166,102		21,802,689		30,166,102	21,802,689
Loss Per Share - basic (in $ per share)	$ (0.16)		$ (0.03)		$ (0.23)	$ (0.14)
Loss Per Share - diluted (in $ per share)	$ (0.16)		$ (0.03)		$ (0.23)	$ (0.14)
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common Stock excluded in calculation of diluted net-loss per share (in shares)	6,634,980				6,634,980
Restricted stock units and options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common Stock excluded in calculation of diluted net-loss per share (in shares)					3,420,329

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false	false
Non-Rule 10b5-1 Arrangement Adopted	false	false
Rule 10b5-1 Arrangement Terminated	false	false
Non-Rule 10b5-1 Arrangement Terminated	false	false

Commitments and Contingencies - Company Subsidiary Litigation (Details) - Claim brought by former employees for their dismissal $ in Millions			1 Months Ended		6 Months Ended
	Nov. 10, 2023 USD ($)	May 09, 2023 USD ($)	Mar. 31, 2023 USD ($) claim	Apr. 30, 2020 location employee	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Loss Contingencies [Line Items]
Number of plaintiff employees \| employee				71
Number Of Production Sites Closed \| location				2
Number of claimants who filed an application for summary proceedings \| claim			67
Principle settlement \| claim			4
Amount claimed by the claimants who filed an application for summary proceedings			$ 1.1
Settlement value decided by the court		$ 1.1			$ 1.2
Settlement paid by the company	$ 1.1				1.8
Settlement amount remain unpaid					1.0
Accrued Liabilities					$ 1.0	$ 2.2

Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2024

Accounts Receivable

Schedule of accounts receivable


	June 30,		December 31,
(dollars in thousands)	2024		2023
Billed receivables	$	18,875	$	20,885
Unbilled receivables		10,508		11,182
Less: Allowance for credit losses		(1,448)		(1,272)
Total accounts receivable, net	$	27,935	$	30,795

Schedule of changes in allowance for expected credit losses


(dollars in thousands)
Balance at January 1, 2024 of the allowance for expected credit losses	$	1,272
Change in the provision for expected credit losses for the period		176
Balance at June 30, 2024 of the allowance for expected credit losses	$	1,448

Subsequent event

6 Months Ended

Jun. 30, 2024

Subsequent event

Subsequent event

20.Subsequent event

2024 Facilities Agreement

On July 2, 2024 the Company has drawn $3.8 million under 2024 Term Loan A Facility and $11.3 million under 2024 Term Loan B Facility, and repaid $8.1 million outstanding indebtedness under the 2019 Credit Agreement, $5.1 million outstanding indebtedness under the 2020 Credit Agreement and $1.4 million outstanding indebtedness under the 2022 Committed Facility Agreement. Accordingly, the Company wrote off the unamortized balance of less than $0.1 million of debt issuance costs related to the 2019 Credit Agreement and 2020 Credit Agreement. The outstanding principal amount of the 2024 Term Loan A Facility shall be repaid in fifteen (15) equal quarterly instalments of £150 thousands commencing September 30, 2024, with the remaining outstanding principal amount of £750 thousands payable at maturity along with accrued and unpaid interest. The outstanding principal amount of the 2024 Term Loan B Facility shall be repaid in fifteen (15) equal quarterly instalments of €525 thousands commencing September 30, 2024, with the remaining outstanding principal amount of €2.625 million payable at maturity along with accrued and unpaid interest.

Warrants

6 Months Ended

Jun. 30, 2024

Warrants

Warrants

15.Warrants

As of June 30, 2024, the Company had the following common stock warrants outstanding:


	Warrants	Exercise Price	Issuance Date	Expiration
Private Placement Warrants	135,000	11.50	3/11/2021	11/29/2028
Forward Purchase Warrants	250,000	11.50	3/11/2021	11/29/2028
Public Warrants	6,249,980	11.50	3/11/2021	11/29/2028
Total	6,634,980

Public Warrants

The Public Warrants qualify for the derivative scope exception under ASC 815 and are therefore classified as equity on the condensed consolidated balance sheets. They may only be exercised for a whole number of shares at a price of $11.50. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants are

currently exercisable and will expire five years from the completion of the Business Combination or earlier upon redemption or liquidation.

The Company may redeem the outstanding Public Warrants if the price per share of common stock equals or exceeds $18.00 (except as described with respect to the Private Placement Warrants and Forward Purchase Warrants):

●

in whole and not in part;

●

at a price of $0.01 per Warrant;

●

upon not less than 30 days’ prior written notice of redemption to each warrantholder; and

●

if, and only if, the closing price of the Common stock equals or exceeds $18.00 per share (as adjusted) for any of 20 trading days within a 30-trading day period commencing once the Warrants become exercisable and ending three trading days before the Company sends the notice of redemption to the warrantholders.

If and when the Public Warrants become redeemable by us, we may not exercise our redemption right if the issuance of shares of Common Stock upon exercise of the Public Warrants is not exempt from registration or qualification under applicable state blue sky laws or we are unable to effect such registration or qualification.

Private Warrants

The Private Warrants meet the definition of a derivative, however they don’t meet the equity scope exception in ASC 815 and are therefore classified as a liability. The Private Warrants are identical to the Public Warrants, except that so long as they are held by Cantor or any Permitted Transferees, as applicable, the Private Warrants (i) may be exercised for cash or on a cashless basis, (ii) may not be transferred, assigned or sold until thirty (30) days after the completion by the Company of an initial Business Combination, and (iii) shall not be redeemable by the Company,

Upon exercise of each of the Public Warrants and Private Warrants, the exercise price and number of shares of Common Stock issuable may be adjusted in certain circumstances including in the event of a stock dividend, a consolidation, combination, reverse stock split or reclassification of shares of Common Stock.

Restructuring

6 Months Ended

Jun. 30, 2024

Restructuring

Restructuring

17.Restructuring

The Company periodically takes actions to improve operating efficiencies, typically in connection with rationalizing the cost structure of the Company. The Company’s footprint and headcount reductions and organizational integration actions relate to discrete, unique restructuring events, primarily reflected in approved plans for reductions in force.

In the fourth quarter of 2023, the Company’s management approved a restructuring plan to realign the Company’s business and strategic priorities by rightsizing its workforce in certain regions.

The Company’s restructuring activity and balance of the restructuring liability is as follows:


	June 30,		December 31,
(dollars in thousands)	2024		2023
Balance at beginning of the period	$	5,454	$	2,036
Restructuring charges		558		4,484
Payment of benefits		(4,136)		(1,066)
Balance at end of the period	$	1,876	$	5,454

As of June 30, 2024 and December 31, 2023, the current portion of the restructuring liability was $1.9 million and $5.5 million respectively, and was included in accrued compensation and benefits in the condensed consolidated balance sheets.

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands	Common Stock	Additional Paid in Capital	Net Parent Investment	Foreign Currency Translation Adjustment	Unrealized Pension Actuarial Losses, net of tax	Accumulated Deficit	Total
Beginning balance, value at Dec. 31, 2022			$ (5,845)	$ (17,789)	$ (3,298)		$ (26,932)
Consolidated Statements of Stockholders' Deficit
Net loss			(2,506)				(2,506)
Foreign currency translation adjustment				(194)			(194)
Net unrealized pension actuarial gains, net of tax					(90)		(90)
Ending balance at Mar. 31, 2023			(8,351)	(17,983)	(3,388)		(29,722)
Beginning balance, value at Dec. 31, 2022			(5,845)	(17,789)	(3,298)		(26,932)
Consolidated Statements of Stockholders' Deficit
Net loss							(3,064)
Ending balance at Jun. 30, 2023			(27,896)	499	(3,501)		(30,898)
Beginning balance, value at Dec. 31, 2022			(5,845)	(17,789)	(3,298)		(26,932)
Ending balance at Dec. 31, 2023	$ 30			(1,416)	157	$ (11,339)	$ (12,568)
Ending balance (in shares) at Dec. 31, 2023	30,166,102						30,166,102
Beginning balance, value at Mar. 31, 2023			(8,351)	(17,983)	(3,388)		$ (29,722)
Consolidated Statements of Stockholders' Deficit
Net loss			(558)				(558)
Classification adjustment			(18,987)	18,987
Foreign currency translation adjustment				(505)			(505)
Net unrealized pension actuarial gains, net of tax					(113)		(113)
Ending balance at Jun. 30, 2023			$ (27,896)	499	(3,501)		(30,898)
Beginning balance, value at Dec. 31, 2023	$ 30			(1,416)	157	(11,339)	(12,568)
Consolidated Statements of Stockholders' Deficit
Net loss						(2,208)	(2,208)
Foreign currency translation adjustment				278			278
Net unrealized pension actuarial gains, net of tax					290		290
Ending balance at Mar. 31, 2024	$ 30			(1,138)	447	(13,547)	$ (14,208)
Ending balance (in shares) at Mar. 31, 2024	30,166,102						30,166,102
Beginning balance, value at Dec. 31, 2023	$ 30			(1,416)	157	(11,339)	$ (12,568)
Beginning balance (in shares) at Dec. 31, 2023	30,166,102						30,166,102
Consolidated Statements of Stockholders' Deficit
Net loss							$ (6,931)
Ending balance at Jun. 30, 2024	$ 30	$ 160		(994)	694	(18,270)	$ (18,380)
Ending balance (in shares) at Jun. 30, 2024	30,166,102						30,166,102
Beginning balance, value at Mar. 31, 2024	$ 30			(1,138)	447	(13,547)	$ (14,208)
Beginning balance (in shares) at Mar. 31, 2024	30,166,102						30,166,102
Consolidated Statements of Stockholders' Deficit
Net loss						(4,723)	$ (4,723)
Equity-based compensation		160					160
Foreign currency translation adjustment				144			144
Net unrealized pension actuarial gains, net of tax					247		247
Ending balance at Jun. 30, 2024	$ 30	$ 160		$ (994)	$ 694	$ (18,270)	$ (18,380)
Ending balance (in shares) at Jun. 30, 2024	30,166,102						30,166,102

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

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+ Details

Stock-Based Compensation - Unrecognized compensation expense (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)
Stock-Based Compensation
Total unrecognized compensation expense	$ 4.0	$ 4.0
Stock-based compensation expense	$ 0.2	$ 0.2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets
Allowance for credit losses	$ 1,448		$ 1,272
Accumulated Depreciation	$ 43,473		$ 42,990
Preferred stock par value (in dollars per share)	$ 0.0001		$ 0.0001
Preferred stock Authorized	10,000,000		10,000,000
Preferred stock Issued	0		0
Preferred stock Outstanding	0		0
Common stock par value (in dollars per share)	$ 0.0001		$ 0.0001
Common stock Authorized	200,000,000		200,000,000
Common stock Issued	30,166,102		30,166,102
Common stock Outstanding	30,166,102	30,166,102	30,166,102

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies.

Commitments and Contingencies

12.Commitments and Contingencies

Litigation

The Company is, from time to time, involved in certain legal proceedings, inquiries, claims and disputes, which arise in the ordinary course of business. Although management cannot predict the outcomes of these matters, management does not believe these actions will have a material, adverse effect on our condensed consolidated balance sheets, condensed consolidated statements of operations or condensed consolidated statements of cash flows.

Company Subsidiary Litigation

A group of 71 former employees brought a claim against a subsidiary of XBP Europe related to their dismissal resulting from the closure of two production sites in France in 2020. The employees filed complaints with the Labor Court on June 9, 2022. Conciliation hearings at the Labor Court were held on September 27, 2022, December 13, 2022, March 7, 2023, September 5, 2023 and November 14, 2023.

In March 2023, 67 claimants (after the in principle settlement was agreed with the first 4 claimants) filed an application for summary proceedings in respect of part of the claim for a total claim of $1.1 million. The summary proceedings hearing was held on April 11, 2023 and the court issued its decision on May 9, 2023 upholding all of the plaintiffs’ claims for a total amount of $1.1 million, however the court’s decision does not increase the Company’s anticipated exposure for the overall claim.

The Company has appealed against the decision (and paid the amount of $1.1 million on November 10, 2023 pending the appeal), the appeal hearing is scheduled for September 9, 2024.

The substantive hearing was held on February 16, 2024 and a decision was made at the end of June 2024.

The Company was in discussions with plaintiff’s counsel and reached a number of settlements with a certain number of claimants prior to the decision of the court and approximately $1.8 million was paid to such claimants in addition to the amounts paid as part of the summary proceedings. The court awarded $1.2 million to the claimants who had not settled before the court’s decision and, after the deduction of the amounts already paid to such claimants, $1.0 million remain to be paid by the Company. The Company will also be responsible for up to three months’ unemployment allowance paid to these claimants by the unemployment fund, which is not expected to significantly increase the Company’s total costs. The Company is considering the possibility of appealing the decision. The Company accrued $1.0 million and $2.2 million in accrued liabilities on the condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively, based on the estimate of the range of possible losses.

Contract-Related Contingencies

The Company has certain contingent obligations that arise in the ordinary course of providing services to its customers. These contingencies are generally the result of contracts that require the Company to comply with certain performance measurements or the delivery of certain services to customers by a specified deadline. The Company believes the adjustments to the transaction price, if any, under these contract provisions will not result in a significant revenue reversal or have a material adverse effect on the Company’s condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statement of comprehensive loss or condensed consolidated statements of cash flows.

Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2024

Intangible Assets and Goodwill

Intangible Assets and Goodwill

8.Intangible Assets and Goodwill

Intangible Assets

Intangible assets are stated at cost or acquisition-date fair value less accumulated amortization and consists of the following:


	Weighted
	Average	June 30, 2024
	Remaining	Gross
	Useful Life	Carrying		Accumulated		Intangible Asset,
(dollars in thousands)	(in Years)	Amount (a)		Amortization		net
Customer relationships	2.5	$	3,054	$	(2,126)	$	928
Internally developed software	3.0		173		—		173
Outsource contract costs	0.5		743		(574)		169
Total intangibles, net		$	3,970	$	(2,700)	$	1,270


	Weighted
	Average	December 31, 2023
	Remaining	Gross
	Useful Life	Carrying		Accumulated		Intangible Asset,
(dollars in thousands)	(in Years)	Amount (a)		Amortization		net
Customer relationships	3.0	$	3,145	$	(1,997)	$	1,148
Outsource contract costs	1.0		768		(418)		350
Total intangibles, net		$	3,913	$	(2,415)	$	1,498

(a)	Amounts include intangibles acquired in business combinations and asset acquisitions

Aggregate amortization expense related to intangibles was $0.2 million and $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and $0.4 million and $0.2 million for the six months ended June 30, 2024 and 2023, respectively.

Estimated intangibles amortization expense for the four years consists of the following:


	Estimated
	Amortization
(dollars in thousands)	Expenses
Remainder of 2024	$	356
2025		431
2026		425
2027		58
Total	$	1,270

Goodwill

The Company’s operating segments are significant strategic business units that align its products and services with how it manages its business, approach the markets and interacts with customers. The Company is organized into two segments: Bills and Payments and Technology (See Note 19 – Segment Information).

Goodwill by reporting segment consists of the following:


	Balances at								Currency		Balances at
	January 1,								Translation		June 30,
(dollars in thousands)	2024		Additions		Disposals		Impairments		Adjustments		2024
Bills and Payments	$	10,058	$	—	$	—	$	—	$	(276)	$	9,782
Technology		12,852		—		—		—		(319)		12,533
Total	$	22,910	$	—	$	—	$	—	$	(595)	$	22,315


	Balances at								Currency		Balances at
	January 1,								Translation		December 31,
(dollars in thousands)	2023		Additions		Disposals		Impairments		Adjustments		2023
Bills and Payments	$	9,689	$	—	$	—	$	—	$	369	$	10,058
Technology		12,373		—		—		—		479		12,852
Total	$	22,062	$	—	$	—	$	—	$	848	$	22,910

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 15,562	$ 6,905
Accounts receivable, net of allowance for credit losses of $1,448 and $1,272, respectively	27,935	30,795
Inventories, net	4,689	4,740
Prepaid expenses and other current assets	9,482	7,427
Total current assets	57,668	49,867
Property, plant and equipment, net of accumulated depreciation of $43,473 and $42,990, respectively	12,715	13,999
Operating lease right-of-use assets, net	6,365	6,865
Goodwill	22,315	22,910
Intangible assets, net	1,270	1,498
Deferred income tax assets	6,768	6,861
Other noncurrent assets	930	739
Total assets	108,031	102,739
Current liabilities
Accounts payable	17,086	14,414
Related party payables	$ 11,108	$ 13,350
Related party payables	Related Party	Related Party
Accrued liabilities	$ 21,282	$ 24,742
Accrued compensation and benefits	16,777	16,583
Customer deposits	713	536
Deferred revenue	5,194	6,004
Current portion of finance lease liabilities	436	638
Current portion of operating lease liabilities	1,902	1,941
Current portion of long-term debts	5,373	3,863
Total current liabilities	79,871	82,071
Related party notes payable	1,497	1,542
Long-term debt, net of current maturities	26,837	12,763
Finance lease liabilities, net of current portion		23
Pension liabilities	11,875	12,208
Operating lease liabilities, net of current portion	4,674	5,065
Other long-term liabilities	1,657	1,635
Total liabilities	126,411	115,307
Commitments and Contingencies (Note 12)
STOCKHOLDERS' DEFICIT
Common Stock, par value of $0.0001 per share; 200,000,000 shares authorized; 30,166,102 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	30	30
Additional paid in capital	160
Accumulated deficit	(18,270)	(11,339)
Accumulated other comprehensive loss:
Foreign currency translation adjustment	(994)	(1,416)
Unrealized pension actuarial gains, net of tax	694	157
Total accumulated other comprehensive loss	(300)	(1,259)
Total stockholders' deficit	(18,380)	(12,568)
Total liabilities and stockholders' deficit	$ 108,031	$ 102,739

Warrants - Public Warrants and Private Warrants (Details)	6 Months Ended
	Jun. 30, 2024 D $ / shares shares
Public Warrants
Warrants
Exercise price of warrants \| $ / shares	$ 11.50
Fractional shares issued upon exercise of warrants (in shares) \| shares	0
Term of warrants	5 years
Warrants redemption, stock price trigger \| $ / shares	$ 18.00
Warrants redemption price per warrant \| $ / shares	$ 0.01
Warrants redemption, minimum number of days of notice to be given to warrant holders	30
Warrants redemption, threshold trading days	20
Warrants redemption, threshold consecutive trading days	30
Warrants redemption, threshold trading days available before notice is sent to warrant holders	3
Private Warrants
Warrants
Threshold period for not to transfer, assign or sell any of their warrants after the completion of the initial business combination	30 days

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventories
Finished goods	$ 7,068	$ 7,182
Allowance for obsolescence	(2,379)	(2,442)
Total inventories, net	4,689	4,740
Allowance for obsolescence finished goods	$ 2,400	$ 2,400

Intangible Assets and Goodwill - Schedule of goodwill (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($) segment	Dec. 31, 2023 USD ($)
Goodwill
Number of operating segments \| segment	2
Goodwill
Beginning balance	$ 22,910	$ 22,062
Currency Translation Adjustments	(595)	848
Ending balance	22,315	22,910
Bills and payments
Goodwill
Beginning balance	10,058	9,689
Currency Translation Adjustments	(276)	369
Ending balance	9,782	10,058
Technology
Goodwill
Beginning balance	12,852	12,373
Currency Translation Adjustments	(319)	479
Ending balance	$ 12,533	$ 12,852

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)
Segment Information
Number of segments \| segment			2
Segment profit	$ 6,630	$ 11,687	$ 16,566	$ 21,147
Selling, general and administrative expenses (exclusive of depreciation and amortization)	6,905	8,181	14,851	16,595
Depreciation and amortization	923	946	1,880	1,856
Foreign exchange losses, net	704	661	1,536	940
Changes in fair value of warrant liability	(3)		(40)
Pension income, net	(421)	(197)	(843)	(389)
Net loss before income taxes	(4,181)	(173)	(5,929)	(2,587)
Related and Nonrelated Parties
Segment Information
Revenue, net (including related party revenue)	36,112	42,367	76,462	85,168
Cost of revenue (including related party cost of revenue, exclusive of depreciation and amortization)	29,482	30,680	59,896	64,021
Related Party
Segment Information
Revenue, net (including related party revenue)	100	100	100	100
Cost of revenue (including related party cost of revenue, exclusive of depreciation and amortization)	10	12	28	63
Related party expense	$ 1,215	$ 1,133	$ 2,177	$ 2,298
Operating Cost and Expense, Related Party, Type [Extensible Enumeration]	Related Party	Related Party	Related Party	Related Party
Interest expense (income), net	$ 22	$ (51)	$ 41	$ (6)
Non-related party
Segment Information
Cost of revenue (including related party cost of revenue, exclusive of depreciation and amortization)	29,472	30,668	59,868	63,958
Interest expense (income), net	1,466	1,187	2,893	2,440
Operating segment \| Bills & Payments
Segment Information
Segment profit	2,231	3,733	5,788	8,577
Operating segment \| Bills & Payments \| Related and Nonrelated Parties
Segment Information
Revenue, net (including related party revenue)	27,305	30,198	56,179	63,766
Cost of revenue (including related party cost of revenue, exclusive of depreciation and amortization)	25,074	26,465	50,391	55,189
Operating segment \| Technology
Segment Information
Segment profit	4,399	7,954	10,778	12,570
Operating segment \| Technology \| Related and Nonrelated Parties
Segment Information
Revenue, net (including related party revenue)	8,807	12,169	20,283	21,402
Cost of revenue (including related party cost of revenue, exclusive of depreciation and amortization)	$ 4,408	$ 4,215	$ 9,505	$ 8,832

Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Non-related party
Disaggregation of Revenue
Total Revenue, net	$ 36,031	$ 42,294	$ 76,315	$ 85,072
France
Disaggregation of Revenue
Total Revenue, net	12,773	14,463	27,000	31,905
Germany
Disaggregation of Revenue
Total Revenue, net	10,868	8,138	23,305	18,680
United Kingdom
Disaggregation of Revenue
Total Revenue, net	7,182	11,230	14,738	19,421
Sweden
Disaggregation of Revenue
Total Revenue, net	3,105	5,899	7,084	9,983
Other
Disaggregation of Revenue
Total Revenue, net	$ 2,103	$ 2,564	$ 4,188	$ 5,083

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SAB Topic 11.L)
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-URI https://asc.fasb.org/1943274/2147479941/924-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

Inventories

6 Months Ended

Jun. 30, 2024

Inventories

Inventories

5.Inventories

Inventories, net consist of the following:


	June 30,		December 31,
(dollars in thousands)	2024		2023
Finished goods	$	7,068	$	7,182
Allowance for obsolescence		(2,379)		(2,442)
Total inventories, net	$	4,689	$	4,740

Finished goods inventory includes of $2.4 million and $2.4 million of allowance for obsolescence as of June 30, 2024 and December 31, 2023, respectively. Our allowance for obsolescence is based on a policy developed by historical experience and management judgment.

Reverse Recapitalization

6 Months Ended

Jun. 30, 2024

Reverse Recapitalization

Reverse Recapitalization

2.Reverse Recapitalization

As discussed in Note 1, on November 29, 2023, the Company consummated a business combination pursuant to the Merger Agreement. The Business Combination was accounted for as a Reverse Recapitalization, rather than a business combination, for financial accounting and reporting purposes. Accordingly, XBP Europe was deemed the accounting acquirer (and legal acquiree) and CF VIII was treated as the accounting acquiree (and legal acquirer). Under this method of accounting, the reverse recapitalization was treated as the equivalent of XBP Europe issuing stock for the net assets of CF VIII, accompanied by a recapitalization. XBP Europe has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances:

●

XBP Europe pre-combination stockholder has the majority of the voting power in the post-Business Combination company;

●

XBP Europe’s stockholder has the ability to appoint a majority of the Company’s board of directors;

●

XBP Europe’s management team is the management team of the post-Business Combination company;

●

XBP Europe’s prior operations is comprised of the ongoing operations of the post-Business Combination company;

●

XBP Europe is the larger entity based on historical revenues and business operations; and

●

The post-Business Combination company has assumed XBP Europe’s operating name.

The net assets of CF VIII are stated at historical cost, with no incremental goodwill or other intangible assets recorded for the effects of the Business Combination. The consolidated assets, liabilities, and results of operations prior to the Business Combination are those of XBP Europe. The shares and corresponding capital amounts and earnings per share available for common stockholders, prior to the Business Combination, have been retroactively restated.

Upon closing of the Business Combination, the Company received net proceeds of $5.2 million from the Business Combination.

Transaction costs consist of directors and officers liability insurance cost, legal and professional fees, and other fees relating to the consummation of the Business Combination. The Company incurred $3.3 million in transaction costs relating to the Merger for the year ended December 31, 2023, $0.3 million of which was recorded to additional paid-in capital and the remaining $3.0 million was expensed.

Immediately after giving effect to the Business Combination, there were 30,166,102 shares of Common Stock outstanding, 6,249,980 Public Warrants outstanding and 385,000 Private Warrants outstanding. See Note 15 – Warrants and Note 16 – Stockholders’ Deficit for more details.

Related Parties - Notes receivable and payables (Details) € in Millions				3 Months Ended		6 Months Ended		12 Months Ended	126 Months Ended
	Sep. 15, 2023 loan	Sep. 04, 2023 loan	Jan. 01, 2016 EUR (€)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) loan	Jun. 30, 2023 USD ($)	Dec. 31, 2013	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2012	May 31, 2010 EUR (€)	Sep. 30, 2009 EUR (€)
Related Parties
Related party notes payable				$ 1,497,000		$ 1,497,000			$ 1,497,000	$ 1,542,000
Related Party
Related Parties
Maximum amount agreed to be lent to related party \| €			€ 20.0
Term of Notes Receivables			6 years
Number of years extendable			1 year
Annual Interest rate of Notes Receivable			9.50%
Related party note receivable				0		0			$ 0	0
Related party interest income				0	$ 300,000	$ 0	$ 600,000
Related Party \| Related party notes payable
Related Parties
Number of intercompany loan agreements entered \| loan						3
Maximum amount agreed to be lent by related party \| €												€ 9.3	€ 9.3
Spread on variable rate						4.00%		12.00%	13.50%
Original Maturity Period						1 year
Additional maturity period						1 year
Fixed interest rate											4.00%
Related party interest expense				0	$ 400,000	$ 0	$ 800,000
Related Party \| New related party notes payable
Related Parties
Number of intercompany loan agreements entered \| loan	1	3				4
Spread on variable rate						6.00%
Original Maturity Period						10 years
Related party notes payable				$ 1,500,000		$ 1,500,000			$ 1,500,000	$ 1,500,000
Related party interest expense						$ 100,000

Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Stock-Based Compensation

Stock-Based Compensation

14.Stock-Based Compensation

XBP Europe 2024 Stock Incentive Plan

On June 13, 2024, the stockholders of XBP Europe approved and adopted XBP Europe’s 2024 Stock Incentive Plan (the “XBP 2024 Equity Plan”) at XBP Europe’s 2024 Annual Meeting of Stockholders. Under the XBP 2024 Equity Plan, subject to adjustment for certain changes in capitalization or other corporate events, XBP Europe is authorized to issue up to 5,520,270 shares of common stock pursuant to equity-based awards, which may be granted to eligible participants in furtherance of XBP Europe’s broader compensation strategy and philosophy. Awards granted under the 2024 Equity Plan will be granted upon terms approved by XBP Europe’s Compensation Committee and set forth in an award agreement or other evidence of an award. As of June 30, 2024, there were no shares of XBP Europe’s common stock issued under the XBP 2024 Equity Plan. However, restricted stock unit and stock options were issued under the XBP 2024 Equity Plan.

Restricted Stock Unit

Restricted stock unit awards generally vest ratably over a less than a year to three year period. Restricted stock units are subject to forfeiture if employment or service terminates prior to vesting and are expensed ratably over the vesting period.

A summary of restricted stock unit activities under the XBP 2024 Equity Plan for the six months ended June 30, 2024 is summarized in the following table:


				Average
		Weighted		Remaining
	Number	Average Grant		Contractual Life
	of Units	Date Fair Value		(Years)
Granted	3,325,329	$	1.24
Forfeited	—		—
Vested	—		—
Outstanding Balance as of June 30, 2024	3,325,329	$	1.24	2.70

Options

Under the XBP 2024 Equity Plan, stock options are granted at a price per share not less than 100% of the fair market value per share of the underlying stock at the grant date. The vesting period for each option award is established on the grant date, and the options generally expire 10 years from the grant date. Stock options granted under the 2024 Plan generally require no less than a four year ratable vesting period. Stock option activity for the six months ended June 30, 2024 is summarized in the following table:


						Average
		Weighted		Weighted		Remaining
		Average Grant		Average		Vesting Period
	Outstanding	Date Fair Value		Exercise Price		(Years)
Granted	95,000	$	0.58	$
Exercised	—		—
Forfeited	—		—
Expired	—		—
Outstanding Balance as of June 30, 2024⁽¹⁾	95,000	$	0.58	$	1.31	3.84

(1)	None of the outstanding options are exercisable as of June 30, 2024.

As of June 30, 2024, there was $4.0 million of total unrecognized compensation expense related to non-vested restricted stock unit awards and stock option awards under the XBP 2024 Equity Plan, which will be recognized over the respective service period. Stock-based compensation expense is recorded within selling, general, and administrative expenses. The Company incurred total compensation expense of $0.2 million related to restricted stock unit awards and stock option awards under the XBP 2024 Equity Plan for the three and six months ended June 30, 2024.

General (Details)	Jun. 30, 2024 client location country
General
Number of clients served \| client	2,000
Number of Countries \| country	15
Number of Locations \| location	32

Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Summary of Significant Accounting Policies
Accounts receivable, net	$ 27,935	$ 27,935	$ 30,795
Deferred revenues	5,194	5,194	6,004
Customer deposits	713	713	536
Costs to obtain and fulfill a contract	169	169	350
Amounts not billed to customers (included in Accounts receivable)	10,500	10,500	11,200
Deferred revenue recognized during the period	$ 1,500	$ 3,400	$ 6,300

Stockholders' Deficit - Narratives (Details)	6 Months Ended
Stockholders' Deficit - Narratives (Details)	Jun. 30, 2024 Vote $ / shares shares	Mar. 31, 2024 shares	Dec. 31, 2023 $ / shares shares
Stockholders' Deficit
Preferred stock Authorized	10,000,000		10,000,000
Preferred stock par value (in dollars per share) \| $ / shares	$ 0.0001		$ 0.0001
Preferred stock Issued	0		0
Preferred stock Outstanding	0		0
Common stock Authorized	200,000,000		200,000,000
Common stock par value (in dollars per share) \| $ / shares	$ 0.0001		$ 0.0001
Number of vote per share \| Vote	1
Common stock Issued	30,166,102		30,166,102
Common stock Outstanding	30,166,102	30,166,102	30,166,102

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net loss	$ (6,931)	$ (3,064)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,520	1,663
Amortization of intangible assets	360	228
Credit loss expense	176	124
Changes in fair value of warrant liability	(40)
Stock-based compensation expense	160
Unrealized foreign currency losses	1,323	734
Change in deferred income taxes	(80)	(30)
Change in operating assets and liabilities
Accounts receivable	1,799	3,409
Inventories	(83)	135
Prepaid expense and other assets	(2,482)	1,061
Accounts payable	3,000	(3,426)
Related parties payable	(2,221)	1,695
Accrued expenses and other liabilities	(1,528)	(2,184)
Deferred revenue	(708)	(1,903)
Customer deposits	195	89
Net cash used in operating activities	(5,540)	(1,469)
Cash flows from investing activities
Purchase of property, plant and equipment	(553)	(1,993)
Additions to internally developed software	(173)
Net cash used in investing activities	(726)	(1,993)
Cash flows from financing activities
Borrowings under secured borrowing facility		62,962
Principal repayment on borrowings under secured borrowing facility	(18)	(63,571)
Borrowings under 2024 Revolving Credit Facility	15,339
Principal payments on long-term obligations	(468)	(456)
Proceeds from Secured Credit Facility	972
Principal payments on finance leases	(207)	(381)
Net cash provided by (used in) financing activities	15,618	(1,446)
Effect of exchange rates on cash and cash equivalents	(695)	(86)
Net increase (decrease) in cash and cash equivalents	8,657	(4,994)
Cash and equivalents, beginning of period	6,905	7,473
Cash and equivalents, end of period	15,562	2,479
Supplemental cash flow data:
Income tax payments, net of refunds received	60	568
Interest paid	$ 1,053	$ 888

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Summary of Significant Accounting Policies

Schedule of disaggregation of revenue


	Three months ended				Six months ended
	June 30,				June 30,
(dollars in thousands)	2024		2023		2024		2023
France	$	12,773	$	14,463	$	27,000	$	31,905
Germany		10,868		8,138		23,305		18,680
United Kingdom		7,182		11,230		14,738		19,421
Sweden		3,105		5,899		7,084		9,983
Other		2,103		2,564		4,188		5,083
Total Revenue, net	$	36,031	$	42,294	$	76,315	$	85,072

Schedule of contract balances


	June 30,		December 31,
(dollars in thousands)	2024		2023
Accounts receivable, net	$	27,935	$	30,795
Deferred revenues		5,194		6,004
Customer deposits		713		536
Costs to obtain and fulfill a contract		169		350

Schedule of remaining performance obligations to be satisfied in future periods


(dollars in thousands)
Remainder of 2024	$	4,670
2025		446
2026		9
2027		69
Total	$	5,194

Schedule of components of basic and diluted earnings per share


	Three months ended				Six months ended
	June 30,				June 30,
(dollars in thousands, except share and per share amounts)	2024		2023		2024		2023
Net loss attributable to common stockholders (A)	$	(4,723)	$	(558)	$	(6,931)	$	(3,064)
Weighted average common shares outstanding – basic and diluted (B)		30,166,102		21,802,689		30,166,102		21,802,689
Loss Per Share:
Basic and diluted (A/B)	$	(0.16)	$	(0.03)	$	(0.23)	$	(0.14)

Employee Benefit Plans - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) subsidiary employee	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Employee Benefit Plans
Accumulated actuarial (gain) loss \| $	$ 700		$ 700		$ 200
Deferred tax benefit \| $	1,300		1,300		$ 1,300
Pension Plan
Employee Benefit Plans
Employer contributions \| $	200	$ 600	$ 200	$ 1,200
Pension Plan \| Maximum
Employee Benefit Plans
Period of historical performance achieved			20 years
Pension Plan \| Minimum
Employee Benefit Plans
Period of historical performance achieved			15 years
Pension Plan \| U.K. Pension Plan
Employee Benefit Plans
Number of subsidiaries which provide pension benefits \| subsidiary			2
Qualifying period for employees to be eligible for pension plan prior to threshold retirement date			3 years
Number of new employees registered under plan \| employee			0
Pension Plan \| German Pension Plan
Employee Benefit Plans
Qualifying period for employees to be eligible for pension plan prior to threshold retirement date			10 years
Number of new employees registered under plan \| employee			0
Aggregate fair value of plan assets \| $	$ 0		$ 0
Pension Plan \| Norway Pension Plan
Employee Benefit Plans
Qualifying period for employees to be eligible for pension plan prior to threshold retirement date			3 years
Number of new employees registered under plan \| employee			0
Pension Plan \| Asterion Pension Plan
Employee Benefit Plans
Qualifying period for employees to be eligible for pension plan prior to threshold retirement date			3 years
Number of new employees registered under plan \| employee			0

Debt - Debt Outstanding (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt
Total debt	$ 32,210	$ 16,626
Less: Current portion of long-term debt	5,373	3,863
Long-term debt, net of current maturities	26,837	12,763
Term loan
Debt
Total debt	3,292	3,785
Revolvers
Debt
Total debt	13,653	12,767
Secured borrowings under Securitization Facility
Debt
Total debt	$ 60	$ 74

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
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-Name Accounting Standards Codification
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-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 27: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482900/835-30-50-1

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Fair Value Measurement

6 Months Ended

Jun. 30, 2024

Fair Value Measurement

Fair Value Measurement

13.Fair Value Measurement

Fair Value of Financial Instruments

The carrying amount of assets and liabilities including cash and cash equivalents, accounts receivable, accounts payable and current portion of long-term debt approximated their fair value as of June 30, 2024 and December 31, 2023, due to the relative short maturity of these instruments. The fair values of the Company’s loans and receivables under the factoring arrangement entered into by subsidiaries of the Company are equal to the carrying values. Property and equipment, intangible assets, capital lease obligations, and goodwill are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering events occur. If such evaluation indicates that impairment exists, the respective asset is written down to its fair value.

As of June 30, 2024 and December 31, 2023, the Company determined the fair value of Private Warrants’ liability as $0.0 million, included in the other long-term liabilities in the condensed consolidated balance sheets under Level 3 fair value measurement using the Black-Scholes option pricing model.

The significant unobservable inputs used in the fair value of the Private Warrants liability are assumptions related to the inputs of exercise price, fair value of the underlying common stock, risk-free interest rate, expected term, expected volatility, and expected dividend yield. Significant increases (decreases) in the discount rate would have resulted in a lower (higher) fair value measurement. Significant increases (decreases) in the forecasted financial information would have resulted in a higher (lower) fair value measurement. For all significant unobservable inputs used in the fair value measurement of the Level 3 liabilities, a change in one of the inputs would not necessarily result in a directionally similar change in the fair value.

The following table reconciles the beginning and ending balances of net assets and liabilities classified as Level 3:


	June 30,
(dollars in thousands)	2024
Balance at beginning of period	$	50
Change in the fair value of the private warrants liability		(40)
Balance at end of period	$	10

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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-Name Accounting Standards Codification
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-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

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-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

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-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Debt (Details) $ in Thousands, € in Millions, £ in Millions						1 Months Ended				3 Months Ended		6 Months Ended
Debt (Details) $ in Thousands, € in Millions, £ in Millions	Jun. 30, 2024 GBP (£)	Mar. 31, 2023	Dec. 31, 2021	Oct. 29, 2021	Aug. 25, 2020 EUR (€)	Jun. 30, 2024 USD ($) item	May 31, 2022 GBP (£)	Jun. 30, 2020 GBP (£)	Oct. 31, 2019 GBP (£)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 GBP (£)	Jun. 30, 2024 EUR (€)	Dec. 31, 2023 USD ($)	Sep. 15, 2023 EUR (€)
Debt
Proceeds from credit facility												$ 15,339
Secured borrowing facility
Debt
Maximum borrowing facility amount \| €					€ 31.0
Cost of secured borrowing facility (in percent)					0.10%
Interest expenses										$ 0	$ 100	0	$ 300
Outstanding balances payable under the Secured Borrowing Facility						$ 100				100		100				$ 100
Secured borrowing facility \| Minimum
Debt
Annual fee \| €					€ 0.1
Secured borrowing facility \| Euro dollar
Debt
Spread on variable rate					0.70%
Amended factoring agreement
Debt
Maximum amount of accounts receivables under factoring \| €																	€ 15.0
Amount of account receivables factored												7,000
Loss on sale of accounts receivables										200		400
2019 credit agreement
Debt
Outstanding balance of credit facility amount						11,300				11,300		11,300
2019 credit agreement \| Secured borrowings under Securitization Facility
Debt
Maximum borrowing facility amount \| £									£ 9.0
2019 credit agreement \| Secured Term loan A debt
Debt
Aggregate principal amount \| £									2.0
Outstanding balance of credit facility amount						1,700				1,700		1,700				1,900
2019 credit agreement \| Secured Term loan B debt
Debt
Aggregate principal amount \| £									2.0
Outstanding balance of credit facility amount						100				100		100				400
2019 credit agreement \| Revolvers
Debt
Aggregate principal amount \| £									£ 5.0
Outstanding balance of credit facility amount						6,300				6,300		6,300				6,400
2019 credit agreement \| Revolving working capital loan facility
Debt
Aggregate principal amount \| £								£ 4.0
Outstanding balance of credit facility amount						7,400				7,400		7,400				6,400
2019 credit agreement \| Maximum
Debt
Available for additional borrowings						100				100		100
2019 credit agreement \| LIBOR \| Secured Term loan A debt
Debt
Spread on variable rate									2.00%
2019 credit agreement \| LIBOR \| Secured Term loan B debt
Debt
Spread on variable rate									2.50%
2019 credit agreement \| LIBOR \| Revolvers
Debt
Spread on variable rate									3.00%
2019 credit agreement \| LIBOR \| Revolving working capital loan facility
Debt
Spread on variable rate								3.50%
2019 credit agreement \| SONIA \| Secured Term loan A debt
Debt
Spread on variable rate			2.00%
2019 credit agreement \| SONIA \| Secured Term loan B debt
Debt
Spread on variable rate			2.50%
2019 credit agreement \| SONIA \| Revolvers
Debt
Spread on variable rate				3.00%
2019 credit agreement \| SONIA \| Revolving working capital loan facility
Debt
Spread on variable rate		3.50%
2022 committed facility agreement
Debt
Outstanding balance of credit facility amount						1,400				1,400		1,400				$ 1,500
2022 committed facility agreement \| Term loan
Debt
Maximum borrowing facility amount \| £							£ 1.4
2022 committed facility agreement \| Base Rate of Bank of England \| Term loan
Debt
Spread on variable rate							3.50%
2024 Facilities Agreement
Debt
Debt issuance costs						1,400				1,400		1,400
2024 Facilities Agreement \| Secured Term A Loan And Revolving Credit Facility
Debt
Maximum borrowing facility amount \| £														£ 15.0
2024 Facilities Agreement \| Secured Term Loan A
Debt
Maximum borrowing facility amount \| £														3.0
2024 Facilities Agreement \| Secured Term Loan B
Debt
Maximum borrowing facility amount \| €															€ 10.5
2024 Facilities Agreement \| 2024 Revolving Credit Facility
Debt
Maximum borrowing facility amount \| £														12.0
Available for additional borrowings						15,205,000				15,205,000		15,205,000
Additional borrowing capacity \| £														£ 14.0
Outstanding balance of credit facility amount						$ 15,200				$ 15,200		$ 15,200
Proceeds from credit facility \| £	£ 12.0
Voluntary prepayments \| item						4
2024 Facilities Agreement \| Minimum
Debt
Cash flow coverage ratio						0.0110				0.0110		0.0110		0.0110	0.0110
Interest coverage ratio						0.0400				0.0400		0.0400		0.0400	0.0400
2024 Facilities Agreement \| Maximum
Debt
Consolidated total leverage ratio						0.0250				0.0250		0.0250		0.0250	0.0250
Consolidated total leverage ratio starting from January 2025						0.0225				0.0225		0.0225		0.0225	0.0225
Consolidated total leverage ratio starting from January 2026						0.0200				0.0200		0.0200		0.0200	0.0200
2024 Facilities Agreement \| SONIA \| Secured Term Loan A
Debt
Spread on variable rate						3.25%
2024 Facilities Agreement \| EURIBOR \| Secured Term Loan B
Debt
Spread on variable rate						3.25%
2024 Facilities Agreement \| Reference Rate \| 2024 Revolving Credit Facility
Debt
Spread on variable rate						3.25%

Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Measurement

Schedule of beginning and ending balances of net assets and liabilities classified as Level 3


	June 30,
(dollars in thousands)	2024
Balance at beginning of period	$	50
Change in the fair value of the private warrants liability		(40)
Balance at end of period	$	10

Employee Benefit Plans - Net periodic benefit cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net periodic benefit cost
Service cost	$ 9	$ 10	$ 19	$ 20
Interest cost	$ 739	$ 770	$ 1,482	$ 1,519
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest Income (Expense), Nonoperating	Interest Income (Expense), Nonoperating	Interest Income (Expense), Nonoperating	Interest Income (Expense), Nonoperating
Expected return on plan assets	$ (726)	$ (685)	$ (1,455)	$ (1,352)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)
Amortization of prior service cost		$ 90		$ 178
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration]	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)
Amortization of net loss	$ 305	$ 398	$ 612	$ 783
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)
Net periodic benefit cost	$ 327	$ 583	$ 658	$ 1,148

Stock-Based Compensation - Restricted Stock Unit (Details) - Restricted Stock Units	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Units
Granted \| shares	3,325,329
Outstanding Balance as of June 30, 2024 \| shares	3,325,329
Weighted Average Grant Date Fair Value
Granted \| $ / shares	$ 1.24
Outstanding Balance as of June 30, 2024 \| $ / shares	$ 1.24
Average Remaining Contractual Life (Years)
Outstanding Balance as of June 30, 2024	2 years 8 months 12 days
Maximum
Stock-Based Compensation
Vesting period (in years)	3 years

Debt (Tables)

6 Months Ended

Jun. 30, 2024

Debt

Schedule of debt instruments outstanding


	June 30,		December 31,
(dollars in thousands)	2024		2023
Term loan	$	3,292	$	3,785
Revolvers		13,653		12,767
2024 Revolving Credit Facility		15,205		—
Secured borrowings under Securitization Facility		60		74
Total debt		32,210		16,626
Less: Current portion of long-term debt		5,373		3,863
Long-term debt, net of current maturities	$	26,837	$	12,763

Warrants - Common stock warrants outstanding (Details)	Jun. 30, 2024 $ / shares shares
Stockholders' Deficit
Warrants	6,634,980
Private Placement Warrants
Stockholders' Deficit
Warrants	135,000
Exercise price of warrants \| $ / shares	$ 11.50
Forward Purchase Warrants
Stockholders' Deficit
Warrants	250,000
Exercise price of warrants \| $ / shares	$ 11.50
Public Warrants
Stockholders' Deficit
Warrants	6,249,980
Exercise price of warrants \| $ / shares	$ 11.50

Related Parties - Transaction Details (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Shared Services
Related Parties
Related party expense	$ 839	$ 869	$ 1,583	$ 1,776
Royalty
Related Parties
Related party expense		93		223
Service Fee
Related Parties
Related party expense	376	171	594	299
Related Party
Related Parties
Revenue, net	100	100	100	100
Related party expense	1,215	1,133	2,177	2,298
Purchases	0	200	0	1,000
Related Party \| Maximum
Related Parties
Revenue, net			200
Related Party \| Shared Services
Related Parties
Related party expense	900	900	1,600	1,800
Related Party \| Royalty
Related Parties
Related party expense	0	100	0	200
Related Party \| Service Fee
Related Parties
Related party expense	$ 400	$ 200	$ 600	$ 300

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

+ Details

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Property, plant and equipment, net
Finance lease right-of use assets, gross	$ 4,253		$ 4,253		$ 4,380
Property, plant and equipment including finance lease right-of use assets, gross	56,188		56,188		56,989
Less: Accumulated depreciation and amortization	(43,473)		(43,473)		(42,990)
Total property, plant and equipment, net	12,715		12,715		13,999
Depreciation expense	700	$ 900	1,500	$ 1,700
Buildings and improvements
Property, plant and equipment, net
Property, plant and equipment, gross	$ 8,947		$ 8,947		9,115
Buildings and improvements \| Minimum
Property, plant and equipment, net
Expected useful lives	7 years		7 years
Buildings and improvements \| Maximum
Property, plant and equipment, net
Expected useful lives	40 years		40 years
Leasehold improvements
Property, plant and equipment, net
Property, plant and equipment, gross	$ 641		$ 641		709
Machinery and equipment
Property, plant and equipment, net
Property, plant and equipment, gross	$ 8,321		$ 8,321		8,256
Machinery and equipment \| Minimum
Property, plant and equipment, net
Expected useful lives	5 years		5 years
Machinery and equipment \| Maximum
Property, plant and equipment, net
Expected useful lives	15 years		15 years
Computer equipment and software
Property, plant and equipment, net
Property, plant and equipment, gross	$ 26,353		$ 26,353		26,763
Computer equipment and software \| Minimum
Property, plant and equipment, net
Expected useful lives	3 years		3 years
Computer equipment and software \| Maximum
Property, plant and equipment, net
Expected useful lives	8 years		8 years
Furniture and Fixtures
Property, plant and equipment, net
Property, plant and equipment, gross	$ 7,673		$ 7,673		$ 7,766
Furniture and Fixtures \| Minimum
Property, plant and equipment, net
Expected useful lives	5 years		5 years
Furniture and Fixtures \| Maximum
Property, plant and equipment, net
Expected useful lives	15 years		15 years

Property, Plant and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment, Net.

Schedule of property, plant and equipment, net


	Expected Useful Lives	June 30,		December 31,
(dollars in thousands)	(in Years)	2024		2023
Buildings and improvements	7 – 40	$	8,947	$	9,115
Leasehold improvements	Shorter of life of improvement or lease term		641		709
Machinery and equipment	5 – 15		8,321		8,256
Computer equipment and software	3 – 8		26,353		26,763
Furniture and Fixtures	5 – 15		7,673		7,766
Finance lease right-of use assets	Shorter of life of the asset or lease term		4,253		4,380
			56,188		56,989
Less: Accumulated depreciation and amortization			(43,473)		(42,990)
Total property, plant and equipment, net		$	12,715	$	13,999

Reverse Recapitalization (Details) - USD ($) $ in Millions		12 Months Ended
Reverse Recapitalization (Details) - USD ($) $ in Millions	Nov. 29, 2023	Dec. 31, 2023	Jun. 30, 2024	Mar. 31, 2024
Reverse Recapitalization
Common stock Outstanding		30,166,102	30,166,102	30,166,102
Warrants			6,634,980
Private Warrants
Reverse Recapitalization
Warrants			385,000
Public Warrants
Reverse Recapitalization
Warrants			6,249,980
CF Acquisition Corp. VIII
Reverse Recapitalization
Proceeds from Business Combination, net of transaction expenses	$ 5.2
Transaction costs		$ 3.3
Transaction costs related to the Merger		0.3
Additional paid-in capital and remaining expense		$ 3.0