{"schema_version":"secwatch.filing_event.v1","accession":"0001101680-24-000013","form_type":"8-K","ticker":null,"cik":"0001101680","company_name":"DZS INC.","filed_at":"2024-01-05T23:59:59+00:00","discovered_at":"2026-05-14T18:03:23.369602+00:00","generated_at":"2026-06-07T02:54:39.735292+00:00","sec_items":["1.01","2.03","3.02","7.01","9.01"],"event_type":"m_and_a","sentiment":"positive","materiality_score":0.85,"calibrated_materiality_score":0.85,"confidence":"high","headline":"DZS secures $25M funding and signs $48M Asia divestiture to DASAN Networks","bullets":["$15M 3-year term loan at 13% fixed rate; 6.1M warrants at $1.84 issued to lender EdgeCo.","$10M private placement of common stock at $1.84/share to IV Global Fund, an affiliate of DASAN Networks.","Definitive agreement to sell Asia business to DASAN Networks for $48M ($5M cash + $43M debt elimination); expected close February 2024.","Divestiture aligns with strategy to focus on Americas, EMEA, ANZ higher-margin regions; management expects improved gross margins by end of 2024.","Combined new working capital of $30M ($25M funding + $5M sale cash) strengthens balance sheet for government stimulus programs."],"urls":{"canonical":"https://secwatch.observer/filing/0001101680-24-000013","json":"https://secwatch.observer/filing/0001101680-24-000013.json","markdown":"https://secwatch.observer/filing/0001101680-24-000013.md","text":"https://secwatch.observer/filing/0001101680-24-000013.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/dzsi-20231229.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-06-07T02:54:39.735292+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"8f3d5d3c3ac02b623a8dbee18abc8a7a21d2f045","claim":"DZS INC. incurred loan of $15,000,000 with EdgeCo, LLC at 13.0% per annum maturing December 29, 2026.","evidence_excerpt":"the Company received a three-year term loan in an aggregate principal amount equal to $15,000,000 (the “Loan”). The principal amount of the Loan is payable on December 29, 2026 and bears interest at a fixed rate of 13.0% per annum.","evidence_source":"SEC 8-K Item 2.03/2.04","evidence_url":"https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm","confidence":0.9,"family_label":"Debt Financings","details":[{"label":"Instrument","value":"loan"},{"label":"Principal","value":"$15,000,000"},{"label":"Counterparty","value":"EdgeCo, LLC"},{"label":"Rate","value":"13.0% per annum"},{"label":"Maturity","value":"December 29, 2026"},{"label":"Event","value":"incurrence"}],"fact_type":"debt_financing"},{"claim_id":"17ce9bf798fd4c5cc3a0b29ffe12f10f6062b6cf","claim":"DZS INC. entered into EdgeCo Registration Rights Agreement with EdgeCo, LLC (effective 2023-12-29).","evidence_excerpt":"(ii) a Registration Rights Agreement (the “EdgeCo Registration Rights Agreement”), dated as of December 29, 2023, by and between the Company and EdgeCo","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"entry"},{"label":"Agreement","value":"credit facility"},{"label":"Counterparty","value":"EdgeCo, LLC"},{"label":"Effective","value":"2023-12-29"}],"fact_type":"material_agreement"},{"claim_id":"2851ff421f6ad00ab9a5273693c4a43286876ffa","claim":"DZS INC. amended Amended and Restated Registration Rights Agreement with IV Global Fund No. 4 and DASAN Networks, Inc..","evidence_excerpt":"In connection with the closing of the transaction contemplated by the Securities Purchase Agreement, the Company, IV Global Fund and DNI entered into an Amended and Restated Registration Rights Agreement (the “Amended and Restated Registration Rights Agreement”)","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"amendment"},{"label":"Agreement","value":"equity purchase"},{"label":"Counterparty","value":"IV Global Fund No. 4 and DASAN Networks, Inc."}],"fact_type":"material_agreement"},{"claim_id":"34573feb9c595f21fddefc4d3c68ea2bcbc800be","claim":"DZS INC. entered into Securities Purchase Agreement with IV Global Fund No. 4 valued at approximately $10,000,000 (effective 2023-12-29).","evidence_excerpt":"On December 29, 2023, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with IV Global Fund No. 4, a Korean limited partnership (“IV Global Fund”).","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"entry"},{"label":"Agreement","value":"equity purchase"},{"label":"Counterparty","value":"IV Global Fund No. 4"},{"label":"Value","value":"approximately $10,000,000"},{"label":"Effective","value":"2023-12-29"}],"fact_type":"material_agreement"},{"claim_id":"c3f245312c58d0340ea701e54bf118db40d43c77","claim":"DZS INC. entered into Warrant Agreement with EdgeCo, LLC (effective 2023-12-29).","evidence_excerpt":"In connection with the Loan Agreement, the Company also entered into (i) a Warrant Agreement (the “Warrant Agreement”), dated as of December 29, 2023, by and between the Company and EdgeCo","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"entry"},{"label":"Agreement","value":"equity purchase"},{"label":"Counterparty","value":"EdgeCo, LLC"},{"label":"Effective","value":"2023-12-29"}],"fact_type":"material_agreement"},{"claim_id":"ed5b92536801b1e60a02c84c18e7b4bfba179b04","claim":"DZS INC. entered into Loan Agreement with EdgeCo, LLC valued at $15,000,000 (effective 2023-12-29).","evidence_excerpt":"On December 29, 2023, DZS Inc., as borrower (the “Company”), entered into a Loan Agreement (the “Loan Agreement”) with EdgeCo, LLC (“EdgeCo”), as lender.","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"entry"},{"label":"Agreement","value":"credit facility"},{"label":"Counterparty","value":"EdgeCo, LLC"},{"label":"Value","value":"$15,000,000"},{"label":"Effective","value":"2023-12-29"}],"fact_type":"material_agreement"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}