DZS Inc entered into a Securities Purchase Agreement to issue 5,434,783 shares at a purchase price of $1.84 per share for a gross proceeds $10,000,000.72 on December 29, 2023. The issuance and sale of the Private Placement Shares was expected to close on January 3, 2024. The transaction included participation from IV Global Fund No.

4. Pursuant to the Securities Purchase Agreement, IV Global Fund is not permitted to offer, sell or otherwise transfer the Private Placement Shares for a period of six months from the closing of the transaction under the Securities Purchase Agreement and IV Global Fund is entitled to designate a member of the Company?s Board of Directors, in each case subject to certain limitations and exceptions, including in the case of the designation right, that IV Global Fund owns 4.9% or more of the total outstanding Common Stock of the Company.