Lesaka Technologies Inc

Item 1A. Risk Factors

See Item 1A RISK FACTORS in Part I of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, for a

discussion of risk factors relating to (i) our business, (ii) operating in South Africa and other foreign markets, (iii) government

regulation, and (iv) our common stock. TheExcept as set forth below, there have been no material changes from the risk factors previously

disclosed in our Annual

Report on Form 10-K for the fiscal year ended June 30, 2025.

We may identify additional errors related to our Value Added Tax (VAT) processes, indirect tax positions, or similar

transaction-level tax matters, which could require future adjustments to our financial statements.

During the current quarter we identified errors in the historical VAT treatment of certain gaming voucher transactions within our

Merchant business. Although we have completed an initial review of the matter and determined to correct the identified errors through

revisions to our previously issued financial statement, our review is ongoing. Refer to Note 1 to our unaudited condensed consolidated

financial statements for additional information. The error arose from the incorrect application of indirect tax rules, the configuration

of underlying systems, and operational practices involving downstream vendors.

While we are implementing remedial actions, enhancing controls, and conducting further analyses with our external advisors,

there is a risk that we have not yet identified all errors associated with this matter. Additional issues may be discovered as we continue

to evaluate historical periods, refine our technical tax conclusions, or integrate updated processes into our systems. Moreover, similar

errors could exist in accounting and reporting for other indirect tax transactions particularly where our business involves complex

multi-party arrangements, voucher products, commissions, or activities involving non-registered VAT vendors.

Identification of additional errors may require us to record further adjustments, amend or restate previously issued financial

statements, update our tax filings, or make additional payments of tax, penalties, or interest. Any such developments could result in

increased compliance costs, additional administrative burdens, diversion of management attention, or investor perceptions of

weaknesses in our financial reporting or tax compliance processes. If material, additional errors could also adversely affect our

financial condition, results of operations, liquidity, or internal control over financial reporting.

Our failure to prepare and timely file our periodic reports with the SEC limits our access to the public markets to raise debt

or equity capital.

Form S-3 permits eligible issuers to conduct registered offerings using a short form registration statement that allows the issuer

to incorporate by reference its past and future filings and reports made under the Securities Exchange Act of 1934, as amended (the

Exchange Act). In addition, Form S-3 enables eligible issuers to conduct primary offerings off the shelf under Rule 415 of the

Securities Act of 1933, as amended (the Securities Act). The shelf registration process, combined with the ability to forward

incorporate information, allows issuers to avoid delays and interruptions in the offering process and to access the capital markets in a

more expeditious and efficient manner than raising capital in a standard registered offering pursuant to a Registration Statement on

Form S-1. The ability to register securities for resale may also be limited as a result of the loss of Form S-3 eligibility.

We did not file our 2025 Form 10-K within the timeframe required by the SEC; thus, we have not remained current in our

reporting requirements with the SEC. Although we regained status as a current filer by filing our Form 10-K/A to amend our 2025

Form 10-K, we are currently ineligible to file new short form registration statements on Form S-3 and, absent a waiver of the Form S-

3 eligibility requirements, we are no longer permitted to use our existing registration statements on Form S-3. If we wish to pursue an

offering now, we would be required to conduct the offering on an exempt basis, such as in accordance with Rule 144A, or file a

registration statement on Form S-1. Using a Form S-1 registration statement for a public offering would likely take significantly longer

than using a registration statement on Form S-3 and increase our transaction costs, and could, to the extent we are not able to conduct

offerings using alternative methods, adversely impact our ability to raise capital or complete acquisitions of other companies in a

timely manner.

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