Sales and Revenue Expectations - The company expects sales to increase in 2023 compared to the lows of 2020 and 2021, but not fully reach pre-pandemic levels of 2019[430]. - Proceeds from the sale of convertible notes were allocated for order procurement, development of next-generation 5G products, and acquisition of 51% of HHE[443]. Financial Position and Liquidity - The company has cash held by Silicon Valley Bank and received full access to its funds on March 13, 2023, without experiencing any credit losses on its deposits[429]. - The company anticipates that liquidity risk may arise if adequate working capital funding is not available for capital-intensive projects[431]. - The company has completed the purchase of $17.87 million of debt, converting it into common shares, which eliminated substantially all of its debt with the senior lender[440]. Credit and Risk Management - The company has limited credit risk concentration, with no individual customer representing more than 20% of outstanding accounts receivable[429]. - The company has not entered into investments for trading or speculative purposes and does not anticipate material risks from interest rate changes[432]. - The company’s revenues are primarily in US Dollars, while about half of its costs are in Renminbi, exposing it to foreign currency risk[434]. Settlements and Financial Agreements - The company entered into a settlement agreement with Chongqing Youtong, agreeing to repay $10,399 in cash plus 8% annual interest with ordinary shares[436]. - The company sold convertible notes for $16 million on May 25, 2022, with a 10% annual interest rate and a conversion price of $0.44325 per share[441].
Borqs(BRQS) - 2022 Q4 - Annual Report