Company Overview - UTStarcom is a global telecommunications infrastructure provider focused on delivering innovative, reliable, and cost-effective communication services [2] - The company specializes in high-performance advanced equipment for rapidly growing network functions, including mobile backhaul, metro aggregation, and broadband access [2] - Founded in 1991, UTStarcom has been listed on the Nasdaq Market since 2000 under the symbol UTSI [2] Recent Developments - UTStarcom filed its Annual Report on Form 20-F for the year ended December 31, 2023, with the U.S. Securities and Exchange Commission [1] - The report is accessible on the SEC EDGAR website and in PDF format on the company's official site [1] - Interested parties can request a hard copy of the report free of charge [1] Market Focus - UTStarcom has operations and customers globally, with a particular emphasis on markets in Japan and India [2]

Financial Performance - The company reported a net loss of $3.9 million, $5.0 million, and $5.8 million for the years ended December 31, 2023, 2022, and 2021, respectively[36]. - As of December 31, 2023, the company had $50.0 million in cash or cash equivalents, indicating a focus on maintaining liquidity[36]. - The company anticipates future cost-reduction initiatives and restructuring plans that may adversely impact operations and financial results[42]. - The company has incurred significant legal and compliance costs as a public entity, which could negatively impact net income and liquidity[159]. - The company's ordinary shares have traded below the $1.00 minimum bid price required by NASDAQ multiple times, risking delisting[160]. - In 2023, net sales totaled $15.753 million, a 12.1% increase from $14.052 million in 2022[198]. - R&D expenses for 2023 were $5.9 million, an increase from $4.8 million in 2022 but a decrease from $6.9 million in 2021[213]. Customer Dependence and Sales - The company relies significantly on two customers: SoftBank Corp. and Bharat Sanchar Nigam Limited (BSNL), which accounted for approximately 23% and 36% of total net sales in 2023, respectively[45]. - Net sales to Softbank in 2023 were approximately $3.7 million, representing 23% of total net sales, down from 28% in 2022[204]. - Net sales to BSNL in 2023 totaled approximately $5.6 million, accounting for 36% of total net sales, compared to 44% in 2022[204]. - Accounts receivable from BSNL as of December 31, 2023, amounted to approximately $5.5 million (INR 0.5 billion), with payment collection taking longer than expected[48]. - The company collected $10 million and $2.2 million from BSNL in 2023 and Q1 2024, respectively, indicating ongoing challenges in payment collection despite significant past collections[52]. Market and Competitive Environment - The company faces intense competition, which may lead to reduced prices, revenues, and market share, necessitating continual cost reductions in manufacturing[59]. - The company is actively exploring opportunities in the Chinese market for 5G network solutions, anticipating further orders due to the rapid rollout of 5G technology[190]. - The India market represented 53% of net sales in 2023, up from 51% in 2022, while Japan's share decreased to 31% from 37%[198]. - The company has observed high interest in its products in India, particularly in optical transport and broadband access[200]. Operational Risks - The company faces risks related to its reliance on a Japanese customer and an Indian customer for a significant portion of net sales, which could adversely affect its financial condition[30]. - The company has faced challenges in maintaining relationships with suppliers due to its current financial condition, which may impact cash flows[37]. - The company is subject to various risks associated with conducting business in China, including regulatory approvals and data security oversight[25]. - The company faces risks from reliance on sole source suppliers for key components, which may affect manufacturing and product shipments[66]. - The company is subject to complex and evolving laws regarding privacy and data protection, which may impose significant compliance burdens and costs[88]. Regulatory and Compliance Issues - The company is subject to foreign exchange control regulations in China and India, which may restrict the ability to transfer funds outside these countries[75]. - The regulatory framework for data security in China is evolving, with new laws potentially imposing additional compliance requirements on the company[107][108]. - Non-compliance with anti-corruption and anti-bribery laws could lead to severe administrative, civil, and criminal penalties, adversely affecting the company's reputation and financial condition[89]. - The company identified a material weakness in internal control over financial reporting as of December 31, 2023, and concluded that these controls were not effective[97]. Strategic Initiatives and Future Outlook - The company’s strategic plan aims to optimize revenue and improve margins, but there is no assurance of success in achieving these goals[39]. - The company is focusing on expanding its broadband infrastructure products in India, Japan, and China due to strong consumer demand[199]. - The company established a domestic enterprise sales team in 2023 to target Smart Cities and Digital Construction opportunities in China[196]. - The company anticipates providing value-added support services in the telecom sector as a significant component of its future business model[129]. Product Development and Innovation - The core business focuses on telecommunications network products and solutions, including SDN platforms and broadband access technologies[166]. - New product developments are targeted at 5G mobile transport networks and disaggregated network platforms, leveraging existing expertise[168]. - The SkyFlux CPT platform was launched in 2020, with two products released: SkyFlux SPN803S (320Gbps switching capacity) and SkyFlux SPN805S (640Gbps switching capacity) designed for high-capacity access applications[171]. - The SkyFlux UAR Disaggregated Router platform was released in 2022, featuring advanced capabilities for 5G transport networks, including support for SR-MPLS and L2VPN/L3VPN[174]. - Collaboration with China Unicom Research Institute has led to the development of a disaggregated network platform for 5G transport, with successful interoperability testing completed in 2023[175].

Core Viewpoint - UTStarcom reported its unaudited financial results for the second half and full year of 2023, showing significant revenue growth and ongoing developments in its 5G transport network solutions, while also facing increased operating expenses and net losses [1][3]. Business Update - Continued cooperation with mobile operators in China on next-generation disaggregated 5G transport network solutions, completing field trials and interoperability tests by the end of 2023 [2]. - Received additional orders from a European mobile network operator for network expansion and post-sale technical support services [2]. - Secured orders for broadband core platform expansion from key customers in India, including hardware and software for the SSTP platform [2]. - Ongoing global post-sale support services for various platforms, including NetRing PTN and SyncRing [2]. - Exploration of new market opportunities in China related to Smart Cities and Digital Construction [2]. Financial Results Second Half of 2023 - Revenue reached $9.2 million, a 39.4% increase from $6.6 million in the same period of 2022 [4]. - Gross profit was $2.6 million, representing a 100% increase from $1.3 million in the previous year [4]. - Operating expenses totaled $5.4 million, up 86.2% from $2.9 million in 2022 [4]. - Net loss was $2.0 million, an improvement from a net loss of $3.3 million in the same period of 2022 [4][17]. - Basic EPS improved to ($0.22) from ($0.37) year-over-year [4][17]. Full Year 2023 - Total revenue for the year was $15.8 million, a 12.1% increase from $14.1 million in 2022 [6]. - Gross profit for the year was $4.4 million, or 27.9% of net sales, compared to $2.7 million, or 19.0% in 2022 [11]. - Operating expenses for the year were $11.2 million, up from $7.1 million in 2022 [14]. - Full year net loss was $4.0 million, an improvement from $5.0 million in 2022 [17]. Cash Flow - Cash used in operating activities for the second half of 2023 was $0.7 million, with no cash used in investing or financing activities [18]. - As of December 31, 2023, the company had a cash balance of $59.6 million, down 10.9% from $66.9 million at the end of 2022 [4][18].

Revenue Performance - Total revenue for the second half of 2023 was $9.2 million, a 39.4% increase from $6.6 million in the same period of 2022[5] - For the full year 2023, total revenue was $15.8 million, a 12.1% increase from $14.1 million in 2022[6] - Net sales for the six months ended December 31, 2023, increased to $9,239,000, compared to $6,560,000 for the same period in 2022, representing a growth of 40.5%[24] Profitability - Gross profit for the second half of 2023 was $2.6 million, representing 27.8% of net sales, compared to $1.3 million or 20.4% of net sales in the same period of 2022[10] - Full year gross profit for 2023 was $4.4 million, or 27.9% of net sales, compared to $2.7 million or 19.0% in 2022[11] - Gross profit for the six months ended December 31, 2023, was $2,570,000, with a gross margin of 27.8%, up from a gross profit of $1,340,000 and a margin of 20.4% in the prior year[24] Operating Expenses - Operating expenses for the second half of 2023 were $5.4 million, an 86.2% increase from $2.9 million in the same period of 2022[12] - Operating expenses for the six months ended December 31, 2023, totaled $5,431,000, significantly higher than $2,921,000 in the same period of 2022, marking an increase of 85.7%[24] - Research and development expenses for the six months ended December 31, 2023, were $3,007,000, compared to $2,148,000 in the prior year, reflecting a rise of 39.9%[24] Net Loss - The net loss for the second half of 2023 was $2.0 million, a decrease from $3.3 million in the corresponding period in 2022, resulting in a basic net loss per share of $0.22 compared to $0.37[17] - Net loss attributable to UTStarcom Holdings Corp. for the six months ended December 31, 2023, was $(2,003,000), an improvement from $(3,322,000) in the prior year[24] Assets and Liabilities - Total current assets decreased to $70,551,000 as of December 31, 2023, down from $81,801,000 a year earlier, reflecting a decline of 13.7%[23] - Total liabilities decreased to $26,462,000 as of December 31, 2023, compared to $31,766,000 in the previous year, a reduction of 16.8%[23] - Cash and cash equivalents at the end of the period were $49,966,000, down from $54,517,000, representing a decrease of 8.5%[23] Market Development - The company continued to develop new access products in the SkyFlux CPT product line to meet the growing demand in the Chinese market[2] - UTStarcom received orders for the expansion of its IMS and SSTP broadband core platforms from key customers in India during the second half of 2023[3] - The company is exploring new market opportunities in China related to Smart Cities and Digital Construction[4]

Financial Performance - Total revenue for the first half of 2023 was $6.5 million, a decrease of 13.3% compared to $7.5 million in the first half of 2022[6] - Gross profit increased to $1.8 million, representing a gross margin of 28.0%, up from $1.3 million and 17.7% in the same period last year[8] - Operating expenses rose to $5.8 million, a 41.5% increase from $4.1 million in the first half of 2022[9] - The net loss attributable to shareholders for the first half of 2023 was $2.0 million, compared to a net loss of $1.7 million in the same period of 2022, resulting in a basic net loss per share of $0.22[13] - Net loss for the six months ended June 30, 2023, was $2,011,000, compared to a net loss of $1,680,000 for the same period in 2022[25] Cash Flow and Balance - Cash balance, including restricted cash, decreased by 6.0% to $60.6 million from $64.5 million at the end of 2022[6] - Cash flows from operating activities resulted in a net cash used of $3,817,000, a significant decrease from the net cash provided of $3,849,000 in the prior year[25] - Cash and cash equivalents at the end of the period decreased to $60,561,000 from $64,457,000 at the end of the previous period[25] - Changes in operating assets and liabilities led to a cash outflow of $1,687,000, contrasting with a cash inflow of $6,148,000 in the same period last year[25] - The effect of exchange rate changes on cash and cash equivalents resulted in a loss of $2,303,000, compared to a loss of $5,579,000 in the previous year[25] - The net cash provided by financing activities was $4,000, compared to a net cash used of $13,000 in the previous year[25] Expenses and Investments - Research and development expenses were $2.9 million, reflecting ongoing product development efforts[10] - The company reported a depreciation expense of $116,000, up from $106,000 in the prior year[25] - Additions to property, plant, and equipment amounted to $182,000, an increase from $76,000 in the same period last year[25] - The company recorded stock-based compensation expense of $183,000, down from $339,000 in the prior year[25] - The recovery of credit losses was reported at $(998,000), compared to $(1,798,000) in the same period last year[25] Product Development and Market Strategy - The gross margin on equipment sales improved to 49.2%, compared to a gross loss of 15.8% in the same period last year[8] - UTStarcom introduced the new SyncRing XGM30E indoor PTP grandmaster product, expanding its product portfolio[2] - The company aims to expand its market share in China, achieving MII certification for its SkyFlux UAR500B-12X product[4] - The company collected $5.80 million from its major customer in India, leaving $5.75 million still outstanding[4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...

[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) [Business Update](index=1&type=section&id=Business%20Update) UTStarcom made significant 2H 2022 progress in 5G transport, new platform launch, expansion orders, and India receivables reduction - Progressed collaboration with China Unicom Research Institute on a disaggregated networking solution for 5G transport networks, winning two RFPs for v.2.x NOS development (including SRv6 and protocol stack) and a disaggregated hardware platform[2](index=2&type=chunk) - Launched the new SkyFlux UAR Disaggregated Router platform, including three chassis-based modular routers (SkyFlux UAR400A-04X, SkyFlux UAR500A-08X, SkyFlux UAR500B-12X) and the SkyFlux NOS Network Operating System[3](index=3&type=chunk) - Received an expansion order for NetRing® TN704E metro access and aggregation products for a mobile operator's 5G transport network deployment in Europe[3](index=3&type=chunk) - Secured multiple expansion orders for the IMS solution deployed in India, aimed at increasing subscriber capacity to meet growing demand[4](index=4&type=chunk) - Collected **$23.4 million** in India receivables in 2022, reducing the outstanding balance to **$9.8 million** by year-end, an over **80% decline** from its peak[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Hua Li cited COVID-19 and geopolitical impacts on 2022 results, emphasizing progress in network disaggregation and new growth initiatives - Second half and full year 2022 results were negatively affected by the COVID-19 pandemic and geopolitical issues[5](index=5&type=chunk) - The company is progressing with business partners in China to implement network disaggregation solutions[5](index=5&type=chunk) - Actively working on other opportunities to restore growth[5](index=5&type=chunk) [Financial Highlights (Unaudited)](index=2&type=section&id=Financial%20Highlights%20(Unaudited)) [Second Half 2022 Financial Summary](index=2&type=section&id=Second%20Half%202022%20Financial%20Summary) 2H 2022 revenue decreased 9.72% to **$6.5 million**, but gross profit turned positive to **$1.3 million**, and net loss narrowed to **$3.4 million** 2H 2022 Key Financials (Unaudited) | Metric | 2H 2022 ($M) | 2H 2021 ($M) | Y/Y Change | |:---|:---|:---|:---| | Revenue | $6.50 | $7.20 | -9.72% | | Gross Profit | $1.30 | ($3.30) | -139.39% | | Operating Expenses | $3.00 | $2.90 | 3.45% | | Operating Loss | ($1.70) | ($6.20) | $4.50 | | Net Loss | ($3.40) | ($6.10) | $2.70 | | Basic EPS | ($0.38) | ($0.67) | $0.29 | | Cash Balance (including Restricted Cash) | $66.80 | $66.30 | 0.75% | [Full Year 2022 Financial Summary](index=2&type=section&id=Full%20Year%202022%20Financial%20Summary) Full year 2022 revenue decreased 11.95% to **$14.0 million**, with gross profit improving to **$2.7 million** and net loss narrowing to **$5.1 million** Full Year 2022 Key Financials (Unaudited) | Metric | 2022 ($M) | 2021 ($M) | Y/Y Change | |:---|:---|:---|:---|\ | Revenue | $14.00 | $15.90 | -11.95% | | Gross Profit | $2.70 | ($1.10) | -345.45% | | Operating Expenses | $7.20 | $4.20 | 71.43% | | Operating Loss | ($4.50) | ($5.30) | $0.80 | | Net Loss | ($5.10) | ($5.80) | $0.70 | | Basic EPS | ($0.56) | ($0.65) | $0.09 | | Cash Balance (including Restricted Cash) | $66.80 | $66.30 | 0.75% | [Detailed Financial Performance Analysis](index=2&type=section&id=Detailed%20Financial%20Performance%20Analysis) [Total Revenues](index=2&type=section&id=Total%20Revenues) 2H 2022 revenues decreased to **$6.5 million** due to lower equipment sales and JPY depreciation; full year revenues declined to **$14.0 million** from reduced service sales - 2H 2022 net equipment sales decreased by **42.5%** to **$0.8 million**, mainly due to decreased revenue from major customers in India[9](index=9&type=chunk) - 2H 2022 net services sales decreased by **1.3%** to **$5.7 million**, primarily due to lower Japan service revenue as JPY depreciated against the U.S. dollar[9](index=9&type=chunk) - Full year 2022 total revenues were **$14.0 million**, an **11.9% decrease** from **$15.9 million** in 2021[9](index=9&type=chunk) - Full year 2022 net services sales decreased by **13.5%** to **$11.8 million**, mainly due to the completion of current projects and no new major projects in India, and lower Japan service revenue due to JPY depreciation[11](index=11&type=chunk) [Gross Profit](index=3&type=section&id=Gross%20Profit) Gross profit significantly improved in 2H and full year 2022, turning positive due to a 2021 inventory reserve and increased service gross margin - 2H 2022 gross profit was **$1.3 million** (**20.6% of net sales**), compared to negative **$3.3 million** (negative **45.0%**) in 2H 2021[12](index=12&type=chunk) - 2H 2022 equipment gross loss improved to **$0.3 million** (**32.4% negative margin**) from **$4.8 million** (**325.4% negative margin**) in 2H 2021, attributed to a one-time inventory reserve in 2021[12](index=12&type=chunk) - Full year 2022 gross profit was **$2.7 million** (**19.1% of net sales**), compared to negative **$1.1 million** (negative **6.8%**) in 2021[13](index=13&type=chunk) - Full year 2022 service gross margin increased to **28.0%** from **24.1%** in 2021[13](index=13&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Operating expenses increased to **$3.0 million** in 2H 2022 and **$7.2 million** for the full year, mainly due to less reversal of credit loss allowance, despite lower R&D - 2H 2022 operating expenses were **$3.0 million**, compared to **$2.9 million** in 2H 2021[14](index=14&type=chunk) - 2H 2022 SG&A expenses were **$0.9 million** (compared to negative **$0.7 million** in 2H 2021), higher due to less reversal of allowance for credit loss from India customer[14](index=14&type=chunk) - Full year 2022 operating expenses were **$7.2 million**, compared to **$4.2 million** in 2021, with SG&A increasing to **$2.4 million** (from negative **$2.6 million**) for similar reasons[16](index=16&type=chunk) - R&D expenses decreased in both 2H 2022 (**$2.1 million** from **$3.6 million**) and full year 2022 (**$4.8 million** from **$6.9 million**), reflecting different stages of 5G product development[14](index=14&type=chunk)[16](index=16&type=chunk) [Operating Loss](index=4&type=section&id=Operating%20Loss) Operating loss significantly narrowed in both 2H and full year 2022, driven by improved gross profit despite higher operating expenses - 2H 2022 operating loss was **$1.7 million**, a significant improvement from **$6.2 million** in 2H 2021[17](index=17&type=chunk) - Full year 2022 operating loss was **$4.5 million**, compared to **$5.3 million** in 2021[17](index=17&type=chunk) [Interest Income, Net](index=4&type=section&id=Interest%20Income,%20Net) Net interest income increased in both 2H and full year 2022, primarily due to higher interest income from India - 2H 2022 net interest income was **$1.3 million**, up from **$0.7 million** in 2H 2021[18](index=18&type=chunk) - Full year 2022 net interest income was **$2.2 million**, up from **$1.1 million** in 2021[18](index=18&type=chunk) - The increase in interest income was mainly due to higher interest income in India[18](index=18&type=chunk) [Other Income (Expenses), Net](index=4&type=section&id=Other%20Income%20(Expenses),%20Net) Net other expenses were reported in 2H and full year 2022, mainly due to foreign exchange losses from Indian Rupee depreciation - 2H 2022 net other expense was **$2.3 million**, compared to net other income of **$0.5 million** in 2H 2021, mainly due to foreign exchange loss from Indian Rupee depreciation[19](index=19&type=chunk) - Full year 2022 net other expense was **$0.7 million**, compared to net other income of **$1.6 million** in 2021, also mainly due to foreign exchange loss from Indian Rupee depreciation[19](index=19&type=chunk) [Net Loss](index=4&type=section&id=Net%20Loss) Net loss attributable to shareholders decreased in both 2H and full year 2022, with basic net loss per share also improving - 2H 2022 net loss attributable to shareholders was **$3.4 million**, compared to **$6.1 million** in 2H 2021[20](index=20&type=chunk) - 2H 2022 basic net loss per share was **$0.38**, compared to **$0.67** in 2H 2021[20](index=20&type=chunk) - Full year 2022 net loss attributable to shareholders was **$5.1 million**, compared to **$5.8 million** in 2021[20](index=20&type=chunk) - Full year 2022 basic net loss per share was **$0.56**, compared to **$0.65** in 2021[20](index=20&type=chunk) [Cash Flow](index=4&type=section&id=Cash%20Flow) 2H 2022 operating activities generated **$3.4 million**, investing used **$0.2 million**, with cash balance at **$66.8 million** by year-end - Cash provided by operating activities in 2H 2022 was **$3.4 million**[21](index=21&type=chunk) - Cash used in investing activities in 2H 2022 was **$0.2 million**[21](index=21&type=chunk) - Cash provided by financing activities in 2H 2022 was nil[21](index=21&type=chunk) - As of December 31, 2022, cash, cash equivalents, and restricted cash totaled **$66.8 million**[21](index=21&type=chunk) [Company Information & Disclosures](index=5&type=section&id=Company%20Information%20%26%20Disclosures) [About UTStarcom Holdings Corp.](index=5&type=section&id=About%20UTStarcom%20Holdings%20Corp.) UTStarcom is a global telecommunications infrastructure provider, founded in 1991, listed on Nasdaq, focusing on mobile backhaul, metro aggregation, and broadband access in key markets - UTStarcom is a global telecommunications infrastructure provider[22](index=22&type=chunk) - Offers high-performance advanced equipment for mobile backhaul, metro aggregation, and broadband access[22](index=22&type=chunk) - Has operations and customers worldwide, with a special focus on Japan, India, and China[22](index=22&type=chunk) - Founded in 1991 and listed on the Nasdaq Market in 2000 (symbol: UTSI)[22](index=22&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to risks including COVID-19, financial condition changes, operational improvements, new product development, and regulatory matters - Statements regarding strategic initiatives and business outlook are forward-looking and subject to risks and uncertainties[23](index=23&type=chunk) - Risks include the effect of the COVID-19 pandemic, changes in financial condition, management changes, ability to realize anticipated results, integrate acquisitions, develop new products, market growth assumptions, and regulatory matters[23](index=23&type=chunk) - The company is in a period of strategic transition, exposing its business to additional risks[23](index=23&type=chunk) [Investor and Media Inquiries](index=5&type=section&id=Investor%20and%20Media%20Inquiries) Contact information for investor and media inquiries is provided, including UTStarcom Holdings Corp and The Blueshirt Group - Contact information for UTStarcom Holdings Corp Investor Relations (Ms Shelley Jiang) is provided[24](index=24&type=chunk) - Contact information for The Blueshirt Group (Mr Gary Dvorchak) for inquiries in the United States is provided[24](index=24&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Balance Sheets](index=6&type=section&id=Balance%20Sheets) As of December 31, 2022, total assets decreased to **$88.9 million**, liabilities to **$31.6 million**, and equity to **$57.4 million**, mainly due to reduced accounts receivable Unaudited Condensed Consolidated Balance Sheets (in thousands) | ASSETS | Dec 31, 2022 | Dec 31, 2021 | |:---|:---|:---|\ | Cash and cash equivalents | $54,500 | $53,797 | | Accounts receivable, net | $11,357 | $27,445 | | Total current assets | $81,722 | $97,793 | | Total assets | $88,923 | $108,279 | | **LIABILITIES AND EQUITY** | | | | Accounts payable | $12,974 | $19,031 | | Total current liabilities | $28,527 | $35,427 | | Total liabilities | $31,563 | $39,928 | | Total equity | $57,360 | $68,351 | [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) Unaudited statements show 2H 2022 net loss of **$3.4 million** and full year net loss of **$5.1 million**, with improved gross profit, increased SG&A, decreased R&D, and foreign exchange losses Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Six months ended Dec 31, 2022 | Six months ended Dec 31, 2021 | Twelve months ended Dec 31, 2022 | Twelve months ended Dec 31, 2021 | |:---|:---|:---|:---|:---|\ | Net sales | $6,533 | $7,229 | $14,025 | $15,921 | | Gross profit | $1,348 | ($3,252) | $2,675 | ($1,075) | | Operating expenses | $3,033 | $2,942 | $7,167 | $4,244 | | Operating loss | ($1,685) | ($6,194) | ($4,492) | ($5,319) | | Interest income, net | $1,342 | $668 | $2,154 | $1,136 | | Other income (expense), net | ($2,303) | $545 | ($706) | $1,649 | | Net loss attributable to UTStarcom Holdings Corp. | ($3,426) | ($6,080) | ($5,107) | ($5,828) | | Net loss per share—Basic | ($0.38) | ($0.67) | ($0.56) | ($0.65) | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Full year 2022 operating activities provided **$7.26 million**, investing used **$0.25 million**, with cash, cash equivalents, and restricted cash totaling **$66.84 million** Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow | Six months ended Dec 31, 2022 | Six months ended Dec 31, 2021 | Twelve months ended Dec 31, 2022 | Twelve months ended Dec 31, 2021 | |:---|:---|:---|:---|:---|\ | Net cash provided by operating activities | $3,410 | $6,126 | $7,260 | $19,829 | | Net cash provided by (used in) investing activities | ($174) | ($208) | ($250) | $1,752 | | Net cash provided by financing activities | $20 | $0 | $7 | $0 | | Effect of exchange rate changes on cash and cash equivalents | ($872) | ($1,591) | ($6,452) | ($3,693) | | Cash, cash equivalents and restricted cash at end of period | $66,841 | $66,276 | $66,841 | $66,276 |