Company: ILLRW
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001213900-25-006210
Chunk: 103

Company: Triller Group Inc.
Filing Date: 2025-01-24
Form: S-1
Chunk 103
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 | grant the licensor the right to audit Triller’s compliance with the terms of such agreements; and |

| ● | comply with certain security and technical specifications. |

Certain of Triller’s
license agreements may also contain minimum guarantees or require that Triller makes minimum guarantee or advance payments, which are
not always tied to Triller’s number of users or stream counts for music used in Triller’s service. Accordingly, Triller’s
ability to achieve and sustain profitability and operating leverage in part depends on Triller’s ability to increase its revenue
through increased sales of subscriptions on terms that maintain an adequate gross margin. Triller’s license agreements that contain
minimum guarantees typically have terms of between one and three years, but Triller’s users may cancel their subscriptions at any
time. Triller relies on estimates to forecast whether such minimum guarantees and advances against royalties could be recouped against
Triller’s actual content costs incurred over the term of the license agreement. To the extent that Triller’s estimates underperform
relative to Triller’s expectations, and Triller’s content costs do not exceed such minimum guarantees and advance payments,
Triller’s margins may be adversely affected.

Some of Triller’s
license agreements may also include so-called “most-favored nations” provisions, which require that certain terms (including
material financial terms) are no less favorable than those provided to any similarly situated licensor. If agreements are amended or new
agreements are entered into on more favorable terms, these most-favored nations provisions could cause Triller’s payment or other
obligations to escalate substantially. Additionally, some of Triller’s license agreements require consent to undertake new business
initiatives utilizing the licensed content (e.g., alternative distribution models), and without such consent, Triller’s ability
to undertake new business initiatives may be limited and Triller’s competitive position could be impacted.

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If Triller breaches any
obligations in any of its license agreements, or if it uses content in ways that are found to exceed the scope of such agreements, Triller
could be subject to monetary penalties or claims of infringement, and its rights under such agreements could be terminated. Furthermore,
certain of Triller’s licenses are currently expired by their terms, and Triller is relying on ordinary course of dealing extensions
with such licensors. Additionally, Triller is not current on payments under all of its licenses, which may increase the risk of litigation
with certain of its licensors