SCHEDULE: DASAN Networks Exits DZS Inc. Stake for Near Zero

DASAN Networks, Inc. has sold its entire 9,093,015 share stake in DZS Inc. in a privately negotiated transaction for approximately $0.00 per share, ceasing to be a beneficial owner.

Summary

• DASAN Networks, Inc. (the "Reporting Person") executed a sale of all 9,093,015 shares of DZS Inc. Common Stock.
• The disposition occurred on December 4, 2025, through a privately negotiated transaction.
• The reported sale price per share was approximately $0.00, which reflects the 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 sale, DASAN Networks, Inc. ceased to be the beneficial owner of more than five percent of DZS Inc.'s outstanding Common Stock, with its aggregate beneficial ownership now at 0 shares (0%).
• The percentage of class is calculated based on 38,789,398 shares of DZS Inc. Common Stock outstanding as of October 31, 2024, as reported in the Issuer's Form 10-Q.

Sentiment

Score: 1

Explanation: The complete divestment of a significant stake by a major shareholder for a reported price of approximately $0.00 per share is an extremely negative event, signaling a severe loss of value or confidence in DZS Inc.

Negatives

• DASAN Networks, Inc. sold its entire 9,093,015 share stake in DZS Inc. for approximately $0.00 per share.
• The complete divestment by a significant shareholder, especially at the reported price, indicates a severe loss of value or confidence in DZS Inc. by the Reporting Person.

Risks

• The sale of a substantial block of shares by a major shareholder for a reported price of approximately $0.00 per share could significantly undermine investor confidence in DZS Inc.'s valuation and future prospects.
• The transaction may signal underlying financial distress or a fundamental change in the strategic outlook for DZS Inc. from the perspective of a former key investor.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding DZS Inc.'s future performance or strategic direction from either the Issuer or the Reporting Person.

Management Comments

• Min Woo Nam, Chief Executive Officer of DASAN Networks, Inc., certified that the information set forth in the statement is true, complete, and correct to the best of his knowledge and belief.

Industry Context

This filing indicates a complete divestment by a significant, and likely strategic, shareholder in the telecommunications and networking equipment industry. Such an exit, particularly at a reported near-zero price, could be interpreted by the market as a strong negative signal regarding DZS Inc.'s competitive position, financial health, or future growth prospects within the sector. It may prompt other industry participants and investors to re-evaluate their positions or outlook on DZS Inc.

Comparison to Industry Standards

• A sale of over 9 million shares for approximately $0.00 per share is highly anomalous and significantly deviates from typical market-based transactions or strategic divestments observed in the industry.
• In comparable industry transactions, such as large block sales or strategic exits, the consideration typically reflects market value, often involving substantial cash payments or equity exchanges. The reported $0.00 price for this significant stake stands in stark contrast to standard industry practices for such transactions.

Related Party Transactions

• The disposition of 9,093,015 shares by DASAN Networks, Inc., a former significant shareholder, constitutes a related party transaction.

Stakeholder Impact

• Shareholders: Existing shareholders of DZS Inc. are likely to experience a significant negative impact on the company's share price and market valuation due to the perceived lack of confidence from a major investor and the reported near-zero sale price.
• Employees: While not directly mentioned, such a significant divestment could raise concerns among employees regarding the company's stability and future strategic direction.
• Customers and Suppliers: No direct impact is immediately apparent, but a loss of investor confidence could indirectly affect business relationships if perceived as a sign of instability.

Key Dates

Recommendation

The complete divestment of a substantial stake (over 9 million shares) by a major, strategic shareholder (DASAN Networks, Inc.) for a reported price of approximately $0.00 per share is an unequivocally negative signal. This transaction implies a near-total loss of value for the divesting party's investment and suggests severe underlying issues or a highly distressed situation for DZS Inc. Such an event would typically lead to a significant decline in market confidence and share price, warranting a strong sell recommendation for investors holding DZS Inc. stock.

Keywords

DZS Inc., DASAN Networks, Schedule 13D, beneficial ownership, stock sale, divestment, equity transaction, privately negotiated transaction