Form 4: 10% Owner Sells Entire Stake in DZS Inc.

DASAN NETWORKS, INC, a 10% owner of DZS INC., has reported the sale of its entire beneficial ownership of 9,093,015 common shares.

Summary

• DASAN NETWORKS, INC, a 10% owner and director of DZS INC. (DZSI), reported the disposition of 9,093,015 shares of common stock.
• The transaction occurred on December 4, 2025.
• The sale price per share was $0.0001, which was rounded due to SEC EDGAR system limits. The actual price reflects a conversion of South Korean Won to USD at an exchange rate of $0.0006787 to KRW 1.00 as of the transaction date.
• Following this transaction, DASAN NETWORKS, INC beneficially owns 0 shares of DZS INC. common stock.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 3

Explanation: The complete divestment by a 10% owner and director is a strong negative signal, indicating a lack of confidence from a significant insider. While the transaction was under a 10b5-1 plan, the sheer scale of the sale (entire stake) is concerning.

Negatives

• A significant insider (10% owner and director) has sold their entire beneficial ownership in DZS INC.
• The sale of 9,093,015 shares represents a complete divestment by DASAN NETWORKS, INC.

Risks

• Potential negative market perception due to a major shareholder and director divesting their entire stake.
• Loss of a significant institutional shareholder and potentially a board member (if they were a director representing DASAN).

Future Outlook

NA

Management Comments

• The sale price per share is $0., which was rounded due to the SEC's EDGAR filing system limits. This sale price is in US Dollars and reflects the conversion of South Korean Won to USD at an exchange rate of $0.0006787 to South Korean Won 1.00 as of December 4, 2025.

Industry Context

NA

Stakeholder Impact

• Shareholders: May interpret the complete divestment by a major owner as a negative signal, potentially leading to downward pressure on the stock price.
• Management: Could face questions regarding the reasons for the major shareholder's exit.

Key Dates

Recommendation

The complete divestment of an entire 10% stake by a director and significant owner, DASAN NETWORKS, INC., is a strong negative indicator. While executed under a 10b5-1 plan, the scale of the sale suggests a lack of long-term confidence from a key insider. This action typically signals potential underlying issues or a belief that the stock is overvalued, prompting a 'sell' recommendation for investors to consider reducing or exiting their positions.

Keywords

DZS INC., DZSI, DASAN NETWORKS, Insider Sale, Form 4, Beneficial Ownership, Stock Sale, 10b5-1 Plan, Telecommunications, Networking