☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Registrant’s telephone number, including area code: ~~(917) 592-7979~~(561)893-8670

(Former name, or former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No☒ ~~No ☐~~

As of ~~December 10, 2020, 14,920,000~~August 4, 2023, 74,582,992 shares of the registrant’s common stock, par value $0.0001 per share, were issued and outstanding.

This Quarterly Report on Form 10-Q (“Quarterly Report”) contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this Quarterly Report, other than statements of historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements appear in a number of places, including, but not limited to “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements represent our reasonable judgment of the future based on various factors and using numerous assumptions and are subject to known and unknown risks, uncertainties and other factors that could cause our actual results and financial position to differ materially from those contemplated by the statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts, and use words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “may,” “should,” “plan,” “project” and other words of similar meaning. In particular, these include, but are not limited to, statements relating to the following:

These forward-looking statements are based on information available as of the date of this Quarterly Report and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

You should not place undue reliance on these forward-looking statements. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include:

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this report. Any forward-looking statements should be considered in light of the risks set forth in “Part II. Item 1A. Risk Factors” of the Quarterly Report and our other filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K.

The accompanying notes are an integral part of ~~the~~these unaudited condensed consolidated financial statements.

~~NEW BEGINNINGS ACQUISITION CORP.~~AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED ~~STATEMENT~~consolidated STATEMENTS OF CHANGES IN ~~STOCKHOLDER’S EQUITY~~STOCKHOLDERS’ DEFICIT

~~(Unaudited)~~


	Six Months Ended June 30, 2023
	Common Stock				Additional Paid-In			Accumulated
	Shares		Amount		Capital			Deficit			Total
Balance as of December 31, 2022		74,283,026	$	7	$	770,427		$	(851,233	)	$	(80,799	)
Net loss		-		-		-			(20,889	)		(20,889	)
Issuance of restricted shares, net of cash withheld for payment of taxes		299,966		-		(161	)		-			(161	)
Share-based compensation expense		-		-		1,939			-			1,939
Balance as of March 31, 2023		74,582,992	$	7	$	772,205		$	(872,122	)	$	(99,910	)
Net loss		-		-		-			(33,607	)		(33,607	)
Warrants issued		-		-		1,744			-			1,744
Share-based compensation expense		-		-		1,998			-			1,998
Balance as of June 30, 2023		74,582,992	$	7	$	775,947		$	(905,729	)	$	(129,775	)

	Six Months Ended June 30, 2022
	Common Stock				Additional Paid-In		Accumulated
	Shares		Amount		Capital		Deficit			Total
Balance as of December 31, 2021		72,335,952	$	7	$	749,592	$	(765,851	)	$	(16,252	)
Net loss		-		-		-		(29,738	)		(29,738	)
Share-based compensation expense		-		-		6,564		-			6,564
Balance as of March 31, 2022		72,335,952	$	7	$	756,156	$	(795,589	)	$	(39,426	)
Net loss		-		-		-		(21,017	)		(21,017	)
Share-based compensation expense		-		-		6,972		-			6,972
Balance as of June 30, 2022		72,335,952	$	7	$	763,128	$	(816,606	)	$	(53,471	)

Common Stock Additional
Paid-In Accumulated Total Stockholder’s
Shares⁽¹⁾ Amount
Capital
Deficit
Equity
Balance as of August 20, 2020 (inception) — $ — $ — $ — $ —
Common stock issued to Sponsor 2,875,000 288 24,712 — 25,000
Net loss — — — (461 ) (461 )
Balance as of September 30, 2020 2,875,000 $ 288 $ 24,712 $ (461 ) $ 24,539

~~(1)~~

Includes up to 375,000 shares of common stock subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters. On November 12, 2020, the underwriters fully exercised the over-allotment option. (See Note 7).

The accompanying notes are an integral part of ~~the~~these unaudited condensed consolidated financial statements.

~~NEW BEGINNINGS ACQUISITION CORP.~~

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED ~~STATEMENT~~consolidated STATEMENTS OF CASH FLOWS

~~FOR THE PERIOD FROM AUGUST 20, 2020 (INCEPTION) THROUGH SEPTEMBER 30, 2020~~


	Six Months Ended June 30,
	2023			2022
Cash flows from operating activities:
Net loss	$	(54,496	)	$	(50,755	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,772			2,275
Foreign exchange loss (gain) on long-term debt		6			(16	)
Bad debt expense		172			7
Change in fair value of warrants and derivatives, net		(1,230	)		(3,936	)
Loss on extinguishment of debt		8,281			-
Non-cash debt amendment fee		-			463
Inventory impairment charge		7,215			-
Share-based compensation		3,937			13,536
Total adjustments		20,153			12,329
Changes in operating assets and liabilities:
Decrease in accounts receivable		12,539			9,706
Increase in inventory		(1,496	)		(302	)
Decrease in prepaid expenses and other current assets		975			2,221
Decrease in other non-current assets		238			181
Increase (decrease) in accounts payable		1,611			(3,040	)
(Decrease) increase in deferred revenue		(1,118	)		1,686
Decrease in accrued expenses and other current liabilities		(623	)		(65	)
Increase in other long-term liabilities		4,220			151
Increase in accrued interest on long-term debt		5,825			5,394
Net cash used in operating activities		(12,172	)		(22,494	)

Cash flows from investing activities:
Purchase of property, plant and equipment		(1,122	)		(1,632	)
Net cash used in investing activities		(1,122	)		(1,632	)

Cash flows from financing activities:
Borrowings from senior term loan		19,981			-
Repayment of senior term loan		(1,760	)		(2,640	)
Payment of debt issuance costs		(1,916	)		-
Payment of taxes withheld on stock awards		(161	)		-
Net cash provided by (used in) financing activities		16,144			(2,640	)

Net increase (decrease) in cash, cash equivalents and restricted cash		2,850			(26,766	)
Cash, cash equivalents and restricted cash, beginning of year		7,287			63,122
Cash, cash equivalents and restricted cash, end of period	$	10,137		$	36,356

~~(Unaudited)~~

Cash flows from operating activities:
Net loss $ (461 )
Changes in current assets and liabilities:
Accrued offering costs and expenses 461
Net cash used in operating activities —

Cash flows from financing activities:
Proceeds from initial stockholder 25,000
Proceeds from issuance of promissory note to related party 100,000
Payments of offering costs (79,733 )
Net cash provided by financing activities 45,267

Net change in cash 45,267
Cash, beginning of the period —
Cash, end of the period $ 45,267

The accompanying notes are an integral part of ~~the~~these unaudited condensed consolidated financial statements.

~~NEW BEGINNINGS ACQUISITION CORP.~~

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED consolidated STATEMENTS OF CASH FLOWS

(CONTINUED)


	Six Months Ended June 30,
	2023		2022
Supplemental disclosures of cash flow information
Cash paid for interest	$	3,873	$	2,852
Cash (refunded) paid for income taxes	$	18	$	(146	)

Supplemental disclosure of non-cash financing activities:
Non-cash debt amendment fee	$	4,658	$	463
Warrants issued for convertible debt	$	1,744	$	-

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same such amounts shown in the unaudited condensed consolidated statements of cash flows:


	June 30,
	2023		2022
Cash and cash equivalents	$	10,102	$	36,305
Restricted cash	$	35	$	51
Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statement of cash flows	$	10,137	$	36,356

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

AIRSPAN NETWORKS HOLDINGS INC.

NOTES TO UNAUDITED CONDENSED Consolidated FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2020~~

BUSINESS

~~(Unaudited)~~Airspan Networks Holdings Inc. (the “Company”) designs and produces wireless network equipment for 4G and 5G networks for both mainstream public telecommunications service providers and private network implementations. Airspan provides Radio Access Network (“RAN”) products based on Open Virtualized Cloud Native Architectures that support technologies including 5G new radio (“5G NR”) and Long-Term Evolution (“LTE”), and Fixed Wireless standards, operating in licensed, lightly-licensed and unlicensed frequencies.

~~Note 1 — Organization~~The market for the Company’s wireless systems includes mobile carriers, other public network operators and ~~Business Operations~~private and government network operators for command and control in industrial and public safety applications such as smart utilities, defense, transportation, mining and oil and gas. The Company’s strategy applies the same network technology across all addressable sectors.

The Company’s main operations are in Slough, United Kingdom; Mumbai and Bangalore, India; Tokyo, Japan; Airport City, Israel; Santa Clara, California; and the Company’s corporate headquarters are in the United States (“U.S.”) in Boca Raton, Florida.

On August 13, 2021 (the “Closing”), the Company (formerly New Beginnings Acquisition Corp.) (the “Company”) ~~is a newly organized blank check company incorporated as~~consummated its previously announced business combination transaction (the “Business Combination”) pursuant to the business combination agreement (the “Business Combination Agreement”), dated March 8, 2021, by and among the Company, Artemis Merger Sub Corp., a Delaware corporation ~~on August 20, 2020. The Company was formed for the purpose~~and wholly-owned direct subsidiary of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”). The Company has not selected any specific business combination target and the Company ~~has not, nor has anyone on~~(“Merger Sub”), and Airspan Networks Inc., a Delaware corporation (“Legacy Airspan”). In connection with the Closing of the Business Combination, the Company changed its ~~behalf, initiated~~name to Airspan Networks Holdings Inc. Unless the context otherwise requires, references to “Airspan”, the “Company”, “us”, “we”, “our” and any ~~substantive discussions, directly or indirectly, with any business combination target with respect~~related terms prior to the ~~Business Combination.~~

~~The Company is an emerging growth company and, as such, the Company is subject to all~~Closing of the ~~risks associated with emerging growth companies. As~~Business Combination are intended to mean Legacy Airspan and its consolidated subsidiaries, and after the Closing of ~~September 30, 2020,~~ the ~~Company had not yet commenced operations. All activity for~~Business Combination, Airspan Networks Holdings Inc. and its consolidated subsidiaries. In addition, unless the ~~period from August 20, 2020 (inception) through September 30, 2020 relates~~context otherwise requires, references to “New Beginnings” and “NBA” are references to New Beginnings Acquisition Corp., the Company’s name prior to the ~~Company’s formation and~~Closing.

In connection with the ~~initial public offering (“Initial Public Offering” or “IPO”), which is described below. The Company will not generate any operating revenues until after~~Closing of the ~~completion of its initial~~ Business Combination, ~~at the earliest. The Company will generate non-operating income in the form~~NBA sold 11,500,000 warrants each exercisable for one share of ~~interest income from net proceeds derived from Initial Public Offering. The Company has selected December 31 as its fiscal year end.~~

~~The Company’s sponsor is New Beginnings Sponsor, LLC, a Delaware limited liability company (the “Sponsor”).~~

~~Subsequent to September 30, 2020, the registration statement for~~ the Company’s Initial Public Offering was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on October 29, 2020 (the “Effective Date”). On November 3, 2020, the Company consummated the IPO of 10,000,000 units (the “Units” and, with respect to the shares of common stock ~~included in the Units being offered, including the Over-Allotment Units, the “Public Shares”), at $10.00 per Unit, generating gross proceeds of $100,000,000, which is discussed in Note 3.~~

~~Simultaneously with the closing of the IPO, the Company consummated the sale of 500,000 private units~~ (the ~~“Private Units”~~“Common Stock”) at a price of ~~$10.00~~$11.50 per ~~Private Unit in a private placement~~share, subject to ~~the Sponsor, which is described in Note 4.~~

~~Transaction costs amounted to $5,906,654 consisting of $2,000,000 of underwriting discount, $3,500,000 of deferred underwriting discount, and $406,654 of other offering costs.~~

The Company granted the underwriters in the IPO a 45-day option to purchase up to 1,500,000 additional Units to cover over-allotments. On November 9, 2020, the underwriters partially exercised the over-allotment option to purchase 1,000,000 Unitsadjustment (the ~~“Over-Allotment Units”~~“Public Warrants”), and ~~on November 12, 2020, the underwriters fully exercised the over-allotment option~~545,000 warrants each exercisable for one share of Common Stock at a price of $11.50 per share, subject to ~~purchase the remaining 500,000 Over-Allotment Units, generating an aggregate of gross proceeds of $15,000,000,~~adjustment (the “Private Placement Warrants” and, ~~incurred $300,000 in deferred underwriting fees.~~

~~On November 9, 2020, simultaneously~~together with the ~~closing~~Public Warrants, the “Common Stock Warrants”).

Mimosa Sale

On March 8, 2023 (the “Closing Date”), the Company entered into a Stock Purchase Agreement (the “Mimosa Purchase Agreement”) with Airspan Networks Inc., a Delaware corporation and a direct wholly-owned subsidiary of the ~~first exercise in part~~Company (“Seller”), Mimosa Networks, Inc., a Delaware corporation and a direct wholly-owned subsidiary of ~~the over-allotment option, the Company completed the private sale of~~Seller (“Mimosa”), and Radisys Corporation, an ~~aggregate of 30,000 Private Units~~Oregon corporation (“Buyer”), pursuant to the Sponsor, at a purchase price of $10.00 per Private Units, generating gross proceeds of $300,000. On November 12, 2020, simultaneously with the closing of the second exercise in part of the over-allotment option, the Company completed the private sale of an aggregate of 15,000 Private Units to the Sponsor, at a purchase price of $10.00 per Private Units, generating gross proceeds of $150,000.

Following the closing of the IPO on November 3, 2020, an amount of $101,000,000 ($10.10 per Unit) from the net proceeds of the sale of the Units in the IPO and the sale of the Private Units was placed in a trust account (“Trust Account”). Following the closing of the sale of the 45,000 Private Units and 1,500,000 Over-Allotment Units, an additional $15,150,000 was placed in the Trust Account, bringing the aggregate proceeds held in the Trust Account to $116,150,000. The funds in the Trust Account can only be invested in United States (“U.S.”) “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 185 days or less or in money market funds meeting certain conditions of Rule 2a-7 promulgated under the Investment Company Act which invest only on direct U.S. government treasury obligations. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its tax obligations and up to $100,000 of interest for its dissolution expenses, the IPO proceeds held in the Trust AccountSeller will not be released from the Trust Account until the earliest to occur of (a) the completion of a Business Combination, (b) the redemption of any Public Shares properly submitted in connection with a stockholder vote to amend the Company’s amended and restated certificate of incorporation, and (c) the redemption of the Company’s Public Shares if the Company is unable to complete the initial Business Combination within 12 months (or up to 18 months if the Company extends the period of time to consummate a Business Combination) from November 3, 2020 (the “Combination Period”), the closing of the IPO.

The Company’s Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the Trust Account (net of taxes payable) at the time of the signing an agreement to enter into a Business Combination. However, the Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to successfully effect a Business Combination.

~~The Company will provide its public stockholders with the opportunity to redeem~~sell all or a portion of their shares of common stock upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the initial Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a proposed initial Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The stockholders will be entitled to redeem their shares for a pro rata share of the aggregate amount then on deposit in the Trust Account (initially approximately $10.10 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations).

The shares of common stock subject to redemption will be recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” In such case, the Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of an initial Business Combination and, if the Company seeks stockholder approval, a majority of the issued and outstanding shares ~~voted are voted~~of common stock of Mimosa to Buyer for an aggregate purchase price of approximately $60.0 million in ~~favor~~cash (subject to customary adjustments as set forth in the Mimosa Purchase Agreement) on the terms and subject to the conditions set forth in the Mimosa Purchase Agreement (the “Mimosa Sale”). On July 22, 2023, the parties to the Mimosa Purchase Agreement entered into Amendment No. 1 to Stock Purchase Agreement to amend the Mimosa Purchase Agreement to extend the Termination Date (as defined in the Mimosa Purchase Agreement), which is the date that the Mimosa Purchase Agreement may be terminated by either the Buyer or the Seller, by giving written notice of such termination to the other party, if the closing shall not have occurred on or prior to such date, to August 15, 2023. We anticipate that the closing will occur in August 2023.

The accounting requirements for reporting the Mimosa business as held for sale were met, however, the requirements for discontinued operations were not met. Accordingly, the consolidated financial statements and notes to the consolidated financial statements reflect the assets and liabilities of the ~~initial Business Combination.~~Mimosa business as held for sale for the periods presented. (See Note 7).

BASIS OF PRESENTATION AND ACCOUNTING POLICIES

Basis of Presentation, Principles of Consolidation and Use of Estimates

The ~~Company will have 12 months (or up to 18 months) from~~accompanying condensed consolidated financial statements include the ~~closing~~accounts of the ~~Initial Public Offering~~Company, its wholly-owned subsidiaries and Airspan IP Holdco LLC (“Holdco”) – 99.8% owned by Airspan. Non-controlling interest in the results of operations of consolidated subsidiaries represents the minority stockholders’ share of the profit or loss of Holdco. The non-controlling interest in net assets of this subsidiary, and the net income or loss attributable to ~~consummate an initial Business Combination. However, if~~the non-controlling interest, were not recorded by the Company ~~is unable to complete an initial Business Combination within the Combination Period, the Company will redeem 100% of the Public Shares, at a per-share price, payable~~as they are considered immaterial. All significant inter-company balances and transactions have been eliminated in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, subject to applicable law and as further described in registration statement with respect to the IPO, and then seek to dissolve and liquidate.

The Sponsor, officers and directors have agreed to (i) waive their redemption rights with respect to their founder shares (as defined below), any placement shares and any Public Shares held by them in connection with the completion of the initial Business Combination, (ii) waive their redemption rights with respect to their founder shares, any placement shares and Public Shares in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation, and (iii) waive their rights to liquidating distributions from the Trust Account with respect to their founder shares and placement shares if the Company fails to complete the initial Business Combination within the Combination Period.

The Company’s Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement or business combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.10 per Public Share and (ii) the actual amount per public share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.10 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of in the IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended, (the “Securities Act”). However, the Company has not asked its Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether its Sponsor has sufficient funds to satisfy its indemnity obligations and believe that the Company’s Sponsor’s only assets are securities of the Company. Therefore, the Company believes it is unlikely that its Sponsor would be able to satisfy those obligations.

~~Note 2 — Significant Accounting Policies~~

~~Basis of Presentation~~

consolidation. The accompanying ~~unaudited~~ condensed consolidated financial statements have been prepared in ~~accordance~~conformity with accounting principles generally accepted in the United States of America (“US GAAP”) ~~for~~.

The Company’s interim ~~financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in~~condensed consolidated financial statements ~~prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules~~ and regulations of the Securities Exchange Commission (“SEC”) for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows.related notes are unaudited. In the opinion of management, ~~the accompanying unaudited condensed financial statements include~~ all adjustments ~~consisting of a~~(including normal recurring ~~nature, which are~~adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the ~~financial position, operating~~ results ~~and cash flows~~that may be reported for the ~~periods presented.~~

~~The accompanying unaudited~~entire year. Certain information and footnote disclosures required by GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the ~~Company’s final prospectus for its Initial Public Offering as filed with the SEC on November 2, 2020, as well as~~consolidated financial statements and related notes thereto included in the Company’s ~~Current Reports~~Annual Report on Form ~~8-K,~~10-K as ~~filed with the SEC on November 2, 2020, November 9, 2020~~of and ~~November 16, 2020. The interim results~~ for the ~~period from August 20, 2020 (inception) through September 30, 2020 are not necessarily indicative of the results to be expected for period ending~~year ended December 31, ~~2020 or for any future periods.~~ 2022.

~~Emerging Growth Company~~

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

~~Use of Estimates~~

The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported ~~amounts of assets and liabilities and disclosure of contingent assets and liabilities at~~in the ~~date of the~~condensed consolidated financial statements and ~~the reported amounts of expenses during the reporting period.~~accompanying notes. Actual results could differ from those estimates.

~~Cash and Cash Equivalents~~Liquidity

The Company ~~considers all short-term investments with an original maturity~~has historically incurred losses from operations. In the past, these losses have been financed through cash on hand or capital raising activities including borrowings or the sale of ~~three months or less when purchased to be cash equivalents.~~ newly issued shares.

The Company ~~did not have any cash equivalents~~had $75.0 million of current assets and $78.0 million of current liabilities as of ~~September~~June 30, ~~2020.~~

~~Deferred Offering Costs~~

~~Deferred offering costs consist of legal, accounting, underwriting fees and other costs incurred through~~2023. During the balance sheet date that are directly related to the Initial Public Offering and that will be charged to stockholders’ equity upon the completion of the IPO. Accordingly, offering costs amounting to $5,906,654 were charged to stockholders’ equity on November 3, 2020. As of Septembersix months ended June 30, ~~2020, there was $79,733 of costs, classified as deferred offering costs, in the accompanying condensed balance sheet.~~

~~Fair Value of Financial Instruments~~

~~The fair value of the Company’s assets and liabilities approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.~~

~~Net Loss per Common Stock~~

Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period, excluding common stock subject to forfeiture. Weighted average shares were reduced for the effect of an aggregate of 375,000 shares of common stock that are subject to forfeiture if the over-allotment option is not exercised by the underwriters. On November 12, 2020, the underwriters fully exercised the over-allotment option (see Note 7). At September 30, 2020,2023, the Company ~~did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into common stock and then share~~used $12.2 million in ~~the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the period presented.~~

~~Income Taxes~~

The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derivedcash flow from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2020.operating activities. The Company is ~~currently~~investing heavily in 5G research and development and the Company expects to continue to use cash from operations during the remainder of 2023 and through the first half of 2024. Cash on hand and borrowing capacity under our Assignment Agreement, Resignation and Assignment Agreement and Credit Agreement (as amended, restated, and otherwise supplemented and modified, the “Fortress Credit Agreement”) with DBFIP ANI LLC (“Fortress”) (see Notes 8 and 10) may not ~~aware of any issues under review~~allow the Company to reasonably expect to meet its forecasted cash requirements.

In order to address the need to satisfy the Company’s continuing obligations and realize its long-term strategy, management has taken several steps and is considering additional actions to improve its operating and financial results, including the following:

●

focusing the Company’s efforts to increase sales in additional geographic markets;

●

continuing to develop 5G product offerings that will expand the market for the Company’s products;

●

focusing the Company’s efforts to improve days sales outstanding to provide additional liquidity;

●

selling the Mimosa business for approximately $60.0 million; and

●

continuing to implement cost reduction initiatives to reduce non-strategic costs in operations and expand the Company’s labor force in lower cost geographies, with headcount reductions in higher cost geographies.

There can be no assurance that ~~could result in significant payments, accruals~~the above actions will be successful. Without additional financing or ~~material deviation~~capital, the Company’s current cash balance would be insufficient to satisfy repayment demands from its ~~position.~~lenders if the lenders elect to declare the senior term loan and the senior secured convertible notes due prior to the maturity date. There is no assurance that the new or renegotiated financing will be available, or that if available, will have satisfactory terms. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

Global Economic Conditions

The Company has ~~identified~~experienced supply chain disruptions and inflationary impacts across our businesses, driven by the ~~United States as its only “major” tax jurisdiction.~~

~~The Company may be subject to potential examination by federal~~impact of the COVID-19 pandemic, the war in Ukraine and ~~state taxing authorities in~~resulting economic sanctions, and general macroeconomic factors. These factors have increased our operating costs. While the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

~~The provision for income taxes was deemed to be immaterial for the period from August 20, 2020 (inception) through September 30, 2020.~~

~~The~~ Company is ~~subject~~taking actions to ~~income tax examinations by major taxing authorities since inception..~~respond to the supply chain disruptions, inflationary environment, and global demand dynamics, we may not be able to enact these measures in a timely manner, or the measures may not be sufficient to offset the increase in costs, which could have a material adverse impact on our results of operations.

~~Concentration of Credit Risk~~Significant Concentrations

Financial instruments, ~~that~~which potentially subject the Company to concentration of credit risk, consist primarily of a cash ~~account~~and cash equivalents, restricted cash and accounts receivable. The Company places its cash and cash equivalents in ahighly rated financial ~~institution~~instruments. The Company maintains certain of its cash balances in various U.S. banks, which at times, may exceed federally insured limits. The Company has not experienced any losses on such accounts.

The Company’s accounts receivable are derived from sales of its products and approximately 74.2% and 50.7% of product sales were to non-U.S. customers for the ~~Federal depository insurance coverage~~three months ended June 30, 2023 and 2022, respectively and approximately 78.3% and 57.9% of ~~$250,000. At September~~product sales were to non-U.S. customers for the six months ended June 30, ~~2020,~~2023 and 2022, respectively. Two customers accounted for $18.5 million, or 54.7%, of the net accounts receivable balance at June 30, 2023 and two customers accounted for $24.5 million, or 50.9% of the net accounts receivable balance at June 30, 2022. The Company requires payment in advance or payment security in the form of a letter of credit to be in place at the time of shipment, except in cases where credit risk is considered to be acceptable. The Company’s top three customers accounted for 74% and 70% of revenue for the three months ended June 30, 2023 and 2022, respectively, and 71% and 68% of revenue for the six months ended June 30, 2023 and 2022, respectively. For the three months ended June 30, 2023, the Company had ~~not experienced losses on this account and management believes~~three customers whose revenue was greater than 10% of the three-month period’s total revenue. For the six months ended June 30, 2023, the Company ~~is not exposed~~had two customers whose revenue was greater than 10% of the six-month period’s total revenue. For the three months ended June 30, 2022, the Company had two customers whose revenue was greater than 10% of the three-month period’s total revenue. For the six months ended June 30, 2022, the Company had three customers whose revenue was greater than 10% of the six-month period’s total revenue.

The Company received 96.8% and 94.3% of goods for resale from five suppliers in the three months ended June 30, 2023 and 2022, respectively. The Company received 93.4% and 91.1% of goods for resale from five suppliers in the six months ended June 30, 2023 and 2022, respectively. The Company outsources the manufacturing of its base station products to ~~significant risks on such account.~~contract manufacturers and obtains subscriber terminals from vendors in the Asia Pacific region. In the event of a disruption to supply, the Company would be able to transfer the manufacturing of base stations to alternate contract manufacturers and has alternate suppliers for the majority of subscriber terminals.

Recent Accounting Pronouncements

~~Management does~~In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This new standard must be adopted by the Company no later than December 1, 2024, with early adoption permitted. The potential adoption of this standard is not ~~believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would~~expected to have a material ~~effect~~impact on the Company’s consolidated financial statements.

~~Risks~~In June 2016, the FASB issued ASU No. 2016-13 (amended by ASU 2019-10), “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, regarding the measurement of credit losses for certain financial instruments.” which replaces the incurred loss model with a current expected credit loss (“CECL”) model. The CECL model is based on historical experience, adjusted for current conditions and ~~Uncertainties~~

~~Management is currently continuing to evaluate~~reasonable and supportable forecasts. The new guidance was adopted by the ~~impact of the COVID-19 pandemic~~Company on January 1, 2023, and ~~has concluded that while~~ it ~~is reasonably possible that the virus could~~did not have a ~~negative effect~~material impact on the Company’s condensed consolidated financial ~~position, results~~statements.

REVENUE RECOGNITION

The following is a summary of ~~its operations and/~~revenue by category (in thousands):

Schedule of revenue
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Products sales	$	27,505	$	42,792	$	47,583	$	74,769
Non-recurring engineering (“NRE”)		610		-		1,394		1,156
Product maintenance contracts		2,074		911		4,216		1,809
Professional service contracts		584		2,006		1,498		3,940
Software licenses		1,260		1,162		2,079		2,546
Other		90		74		126		289
Total revenue	$	32,123	$	46,945	$	56,896	$	84,509

There was $0.6 million and $0.9 million revenue recognized at a point in time for NRE services for the three and six months ended June 30, 2023, respectively. There was no revenue recognized at a point in time for NRE services for the three and six months ended June 30, 2022. For services performed on a customer’s owned asset, since the customer controls the asset being enhanced, revenue is recognized over time as services are rendered. There was no revenue recognized over time for NRE services using a cost-based input method for the three months ended June 30, 2023. There was no revenue recognized over time for NRE services using a cost-based input method for the three months ended June 30, 2022. Revenue recognized over time for NRE services using a cost-based input method amounted to $0.5 million and $1.2 million for the six months ended June 30, 2023 and 2022, respectively. The Company is allowed to bill for services performed under the contract in the event the contract is terminated.

The opening and closing balances of our contract asset and liability balances from contracts with customers as of June 30, 2023 and December 31, 2022 were as follows (in thousands):

Schedule of contracts with customers asset and liability	Contracts Assets		Contracts Liabilities
Balance as of December 31, 2022	$	9,001	$	2,892
Balance as of June 30, 2023		9,512		1,774
Change	$	511	$	(1,118	)

Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations included in a contract that are unsatisfied, or ~~search for a target company, the specific impact is not readily determinable~~partially satisfied, as of the ~~date~~end of ~~these financial statements.~~a period. As of June 30, 2023 and December 31, 2022, deferred revenue (both current and noncurrent) of $1.8 million and $2.9 million, respectively, represents the Company’s remaining performance obligations, of which $1.6 million and $2.8 million, respectively, is expected to be recognized within one year, with the remainder to be recognized thereafter.

Revenues for the three and six months ended June 30, 2023 and 2022, include the following (in thousands):

Schedule of revenues from contract liability
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Amounts included in the beginning of year contract liability balance	$	411	$	835	$	1,910	$	1,880

RESTRUCTURING ACTIVITIES

In the second quarter of 2023, as part of a strategic review of our operations, the Company implemented a cost reduction and restructuring program (the “2023 Restructuring Program”). The ~~financial statements do not include any adjustments that might result from the outcome~~2023 Restructuring Program was primarily comprised of ~~this uncertainty.~~

~~Note 3 — Initial Public Offering~~

~~Pursuant~~entering into severance and termination agreements with employees. Formal announcements to the ~~IPO~~relevant employees were made in May, June and July 2023 and activities will be ongoing throughout the third and fourth quarter of 2023. The payments related to severance costs should be completed by March 31, 2024 and the payments related to the building costs should be completed by December 31, 2024.

Restructuring costs are presented separately on ~~November 3, 2020,~~the consolidated statements of operations.

The following table presents the restructuring costs recognized by the Company ~~sold 10,000,000 Units,~~under the 2023 Restructuring Program during the three and six-month periods ended June 30, 2023. The Company did not incur any costs for restructuring during the six months ended June 30, 2022.

Schedule of restructuring costs recognized	Three Months Ended		Six Months Ended
	June 30, 2023		June 30, 2023
Severance costs	$	2,312	$	2,572
Other		711		711
Total restructuring costs	$	3,023	$	3,283

The following table represents the restructuring liabilities, which are presented within other accrued expenses in the consolidated balance sheet:

Schedule of restructuring liabilities	June 30, 2023
Balance, December 31, 2022	$	231
Current period charges		3,283
Payments		(580	)
Balance, June 30, 2023	$	2,934

The Company also recorded an inventory impairment charge of $7.2 million in the three months ended June 30, 2023 which is included in cost of revenues in the consolidated statement of operations. A charge of $5.3 million relates to certain product initiatives that were eliminated or reduced as a result of the headcount reductions in the 2023 Restructuring Program and $1.9 million relates to an accrual for inventory on order for these eliminated or reduced product initiatives.

GOODWILL AND INTANGIBLE ASSETS, NET

The Company had goodwill of $13.6 million as of June 30, 2023 and December 31, 2022 resulting from a prior acquisition. Goodwill and Intangible assets, net are classified as Assets Held for Sale – Noncurrent at a purchase price of $10.00 per Unit. On November 9, 2020, the underwriters partially exercised the over-allotment option to purchase 1,000,000 Over-Allotment Units, and on November 12, 2020, the underwriters fully exercised the over-allotment option to purchase the remaining 500,000 Over-Allotment Units, at a purchase price of $10.00 per Over-Allotment Unit. Each UnitJune 30, 2023.

Intangible assets, net consists of ~~one share~~the following (in thousands):

Schedule of Intangible assets, net	Weighted	June 30, 2023
	Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Internally developed technology	10	$	7,810	$	(3,319	)	$	4,491
Customer relationships	6		2,130		(1,509	)		621
Trademarks	2		720		(720	)		-
Non-compete	3		180		(180	)		-
Total acquired intangible assets		$	10,840	$	(5,728	)	$	5,112

	Weighted	December 31, 2022
	Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Internally developed technology	10	$	7,810	$	(3,189	)	$	4,621
Customer relationships	6		2,130		(1,449	)		681
Trademarks	2		720		(720	)		-
Non-compete	3		180		(180	)		-
Total acquired intangible assets		$	10,840	$	(5,538	)	$	5,302

Amortization expense related to the Company’s intangible assets amounted to $0 and $0.3 million for the three months ended June 30, 2023 and 2022, respectively, and $0.2 million and $0.6 million for the six months ended June 30, 2023 and 2022, respectively.

There will be no further amortization expense for the remainder of 2023 and thereafter related to the Company’s intangible assets as the long-lived assets in the disposal group should be recorded at the carrying amount at the time the assets are accounted as held for sale.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following (in thousands):

Schedule of other accrued expenses	June 30, 2023		December 31, 2022
Payroll and related benefits and taxes	$	7,356	$	8,081
Fair value of embedded derivatives related to Convertible Debt		-		5,353
Royalties		3,377		3,610
Loan success fee related to Convertible Debt		2,858		2,858
Agent and sales commissions		1,078		1,224
Right-of-use lease liability, current portion		2,367		2,923
Tax liabilities		1,130		1,301
Restructuring costs		2,934		231
Product warranty liabilities		1,203		1,478
Product marketing		1,276		376
Manufacturing subcontractor costs		2,928		1,787
Legal and professional services		2,896		1,282
Other		1,844		1,739
Other accrued expenses	$	31,247	$	32,243

HELD FOR SALE

As discussed in Note 1, on March 8, 2023 the Company entered into the Purchase Agreement with Seller, Mimosa, and Buyer, pursuant to which the Seller will sell all of the issued and outstanding shares of common stock ~~and one redeemable warrant~~of Mimosa to purchase one share of common stock. Each warrant entitles the holder to purchase one share of common stock at a price of $11.50 per share, subject to adjustment. Each warrant will become exercisable on the later of 30 days after the completion of the initial Business Combination or 12 months from the closing of the IPO, and will expire five years after the completion of the initial Business Combination, or earlier upon redemption or liquidation (see Note 7).

~~Note 4 — Private Placement~~

~~Simultaneously with the closing of the IPO, the Sponsor purchased an aggregate of 500,000 Private Units at a price of $10.00 per Private Unit,~~Buyer for an aggregate purchase price of ~~$5,000,000,~~approximately $60,000,000 in ~~a private placement. On November 9, 2020~~cash (subject to customary adjustments) on the terms and ~~November 12, 2020,~~subject to the conditions set forth in ~~connection with~~ the ~~underwriters’ exercise~~Purchase Agreement (the “Transaction”). The Purchase Agreement contains customary representations, warranties and covenants by the parties subject to specified exceptions and qualifications. Each party’s obligations to consummate the Transaction pursuant to the Purchase Agreement are subject to customary closing conditions as set out in the Mimosa Purchase Agreement, including, among others, approval of ~~their over-allotment option,~~the Transaction by the Committee on Foreign Investment in the United States, approval of the Transaction by the Competition Authority of the Republic of Turkey, and approval of the Transaction by the senior lenders. The approval by the Committee on Foreign Investment in the United States and the approval of the Competition Authority of the Republic of Turkey have been received, and the closing is anticipated to occur in August 2023.

The Company met the criteria for recording the Mimosa assets and liabilities as “held for sale” at June 30, 2023. Since the Company ~~consummated~~did not meet the criteria for held for sale at December 31, 2022, the assets and liabilities of ~~additional 45,000 Private Units~~the Mimosa group are recorded in their respective categories.

The assets and liabilities of the disposal group, Mimosa, were evaluated to determine whether the carrying amounts should be adjusted in accordance with other GAAP standards. After adjusting the assets and liabilities of the disposal group, the disposal group as a whole is measured at the lower of carrying amount or fair value less costs to sell. Depreciation and amortization of long-lived assets in the ~~aggregate~~disposal group will not be recorded during the period in which the disposal group meets the criteria for held for sale.

The unaudited condensed balance sheet of Mimosa at ~~$10.00 per Unit. The proceeds from the Private Units were added to the proceeds from the IPO held in the Trust Account.~~June 30, 2023 is as follows:

Schedule of asset held for sale	June 30, 2023		December 31, 2022
ASSETS
Current assets:
Accounts receivable, net of allowance of $103 and $123 as of June 30, 2023 and December 31, 2022, respectively	$	11,064	$	7,413
Inventory		4,133		3,759
Prepaid expenses and other current assets		155		410
Total current assets		15,352		11,582
Property, plant and equipment, net		1,204		1,107
Goodwill		13,641		13,641
Intangible assets, net		5,112		5,302
Right-of-use assets, net		845		916
Other non-current assets		111		109
Total assets	$	36,265	$	32,657

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,391	$	5,545
Accrued expenses and other current liabilities		1,397		1,517
Deferred revenue		227		253
Total current liabilities		12,015		7,315
Other long-term liabilities		375		449
Total liabilities		12,390		7,764
Total liabilities and stockholders’ equity	$	36,265	$	32,657

Each Private Unit is identical to the Units sold in the IPO, except as described below. There will be no redemption rights or liquidating distributions from the Trust Account with respect to the placement shares or placement warrants, which will expire worthless if the Company does not consummate a Business Combination within the Combination Period.

The Company’s Sponsor has agreed to waive redemption rights with respect to the placement shares (i) in connection with the consummation of an initial Business Combination, (ii) in connection with a stockholder vote to amend its amended and restated certificate of incorporation to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination, or amendments to its amended and restated certificate of incorporation prior thereto, to redeem 100% of the Public Shares if the Company does not complete its initial Business Combination within the Combination Period or with respect to any other provision relating to stockholders’ rights or pre-initial Business Combination activity and (iii) if the Company fails to consummate an initial Business Combination within the Combination Period or if the Company liquidates prior to the expiration of the Combination Period. However, the Company’s Sponsor and any other holders of the founder shares and placement shares (the “initial stockholders”) will be entitled to redemption rights with respect to any Public Shares held by them if the Company fails to consummate an initial Business Combination or liquidate within the Combination Period.

913

SUBORDINATED DEBT

On August 6, 2015, Legacy Airspan issued Golden Wayford Limited a $10.0 million subordinated Convertible Promissory Note ~~5 — Related Party Transactions~~(the “Golden Wayford Note”) pursuant to a Subordinated Convertible Note Purchase Agreement. The Golden Wayford Note was amended and restated on November 28, 2017, to reduce the interest rate thereon and to reflect the application of the payment of $1.0 million of principal on such note. The Golden Wayford Note had an original maturity date of February 16, 2016, which through subsequent amendments was extended to June 30, 2020. The conversion rights related to this agreement expired on its maturity date, June 30, 2020, and on this date the loan was reclassified from subordinated convertible debt to subordinated debt.

~~Founder Shares~~The principal and accrued interest under the Golden Wayford Note would have been automatically converted into common shares at the time of the next equity financing and consummated prior to, on or after the maturity date (June 30, 2020). Such conversion right expired in accordance with its term. Interest accrues at 5.0% per annum and is payable quarterly, however, because such payment is prohibited by the terms of the subordination, interest is (in accordance with the terms of the related promissory note) paid in kind.

~~In September~~The Golden Wayford Note is subordinate to the obligations under the Fortress Credit Agreement (see Note 10). A limited waiver under the Fortress Credit Agreement waives each actual and prospective default and event of default existing under the Fortress Credit Agreement directly as a result of the non-payment of the Golden Wayford Note. The Company had subordinated debt outstanding of $9.0 million, plus $2.4 million and $2.1 million of accrued interest as of June 30, 2023 and December 31, 2022, respectively.

SUBORDINATED TERM LOAN – RELATED PARTY

On February 9, 2016, Legacy Airspan entered into a $15.0 million subordinated term loan agreement with a related party (the “Subordinated Term Loan Agreement”) that was due to mature on February 9, 2018. On July 12, 2016, Legacy Airspan entered into an additional $15.0 million Amendment No. 1 to the Subordinated Term Loan Agreement that was due to mature on February 9, 2018. On July 3, 2017, Legacy Airspan entered into Amendment No. 2 to the Subordinated Term Loan Agreement that extended the maturity date to June 30, 2019. On May 23, 2019, Legacy Airspan entered into Amendment No. 3 to the Subordinated Term Loan Agreement that extended the maturity date to December 31, 2020. On March 30, 2020, Legacy Airspan entered into Amendment No. 4 to the ~~Sponsor purchased 2,156,250 shares of common stock for an aggregate purchase price of $25,000, or approximately $0.012 per share (the “founder shares”)~~Subordinated Term Loan Agreement that extended the maturity date to December 31, 2021. On ~~October 20,~~December 30, 2020, the Company effected a stock dividend resulting in its Sponsor holding 2,875,000 founder shares, representing an adjusted purchase price of approximately $0.009 per share. The founder shares, after given effectLegacy Airspan entered into Amendment No. 5 to the ~~stock dividend, included an aggregate~~Subordinated Term Loan Agreement that extended the maturity date to the later of ~~up to 375,000 shares subject to forfeiture if~~(a) December 30, 2024 and (b) 365 days after the over-allotment option is not exercised by the underwriters in full. In connection with the underwriters’ fully exercise of their over-allotment option on November 9, 2020 and November 12, 2020, the 375,000 shares were no longer subject to forfeiture.

~~The Sponsor has agreed not to transfer, assign or sell their founder shares until the earlier of (i) one year after the~~maturity date of the ~~consummation~~Fortress Credit Agreement (as in effect on December 30, 2020) (see Note 10). The term loan is subordinate to the Fortress Credit Agreement (see Note 10).

Prior to May 23, 2019, interest accrued at 2.475% per annum and was payable quarterly. In accordance with the amendments below, the interest rate changed as follows:

(a)

Amendment No. 3, on May 23, 2019, the interest rate changed to 9.0% per annum to be accrued;

(b)

Amendment No. 4, on March 30, 2020, the interest rate changed to 9.0% per annum through December 31, 2020 and from and after January 1, 2021, at a rate of 12.0% per annum to be accrued; and

(c)

Amendment No. 5, on December 30, 2020, the interest rate from January 1, 2021 and thereafter changed to 9.0% per annum to be accrued, subject to reversion to 12.0% if a condition subsequent is not satisfied. The subsequent condition was satisfied.

The principal and accrued interest may be repaid early without penalty.

The Company had a subordinated term loan outstanding of $30.0 million, plus $13.4 million and $11.5 million of accrued interest as of June 30, 2023 and December 31, 2022, respectively. The subordinated term loan is classified as long-term at June 30, 2023 as the Company is in compliance with the Fortress covenants. At March 31, 2023 and December 31, 2022, the subordinated term loan was classified as current as the Company had breached covenants with Fortress.

10.

SENIOR TERM LOAN

On December 30, 2020, Legacy Airspan, together with Holdco, Airspan Networks (SG) Inc., Mimosa Networks, Inc., Mimosa Networks International, LLC, Airspan Communications Limited, Airspan Networks LTD, and Airspan Japan K.K., as guarantors, together with the other parties thereto, entered into an assignment agreement, whereby Pacific Western Bank (“PWB”) and Ally Bank assigned their interests in a loan facility under the Second Amended and Restated Loan and Security Agreement with Legacy Airspan (the “PWB Facility”) to certain new lenders (the “Assignment Agreement”), and PWB entered into a resignation and assignment agreement (the “Agent Resignation Agreement”) pursuant to which PWB resigned in its capacity as agent under all of the ~~initial Business Combination or (ii)~~transaction documents and Fortress became the ~~date~~successor agent (as defined in the Agent Resignation Agreement), replacing PWB in such capacity under the PWB Facility. The Assignment Agreement and the Agent Resignation Agreement, along with a Reaffirmation and Omnibus Amendment, resulted in the amendment and restatement of the terms of the PWB Facility as the Fortress Credit Agreement with the new lenders as the lenders thereunder. Fortress became the administrative agent, collateral agent and trustee for the lenders and other secured parties. At Closing, on ~~which~~August 13, 2021, the ~~closing price~~Company, Legacy Airspan and certain of the Company’s ~~shares of common stock equals or exceeds $12.50 per share (as adjusted~~subsidiaries who are party to the Fortress Credit Agreement entered into a Waiver and Consent, Second Amendment, Restatement, Joinder and Omnibus Amendment to Credit Agreement and Other Loan Documents relating to the Fortress Credit Agreement with Fortress (the “August 2021 Fortress Amendment”) to, among other things, add the Company as a guarantor, recognize and account for ~~stock splits, stock dividends, reorganizations, recapitalizations and~~ the ~~like) for any 20 trading days within any 30-trading day period commencing after the initial~~ Business Combination, ~~or earlier, in either case, if, subsequent~~recognize and account for the Convertible Notes (see Note 11) and provide updated procedures for replacement of LIBOR. On March 29, 2022, the Company, Legacy Airspan and certain of the Company’s subsidiaries who are party to the ~~initial Business Combination,~~Fortress Credit Agreement entered into a Third Amendment and Waiver to Credit Agreement and Other Loan Documents relating to the Fortress Credit Agreement with Fortress to, among other things, amend the financial covenants included in the Fortress Credit Agreement. On May 18, 2023, the Company, ~~consummates a subsequent liquidation, merger, stock exchange or other similar transaction which results in all~~Legacy Airspan and certain of ~~its stockholders having~~ the ~~right to exchange their shares of common stock for cash, securities or other property.~~

~~Promissory Note — Related Party~~

~~In September 2020, the Company issued an unsecured promissory note~~Company’s subsidiaries who are party to the ~~Sponsor,~~Fortress Credit Agreement entered into a Limited Waiver and Consent, Second Amendment and Restatement of Credit Agreement and Reaffirmation of Loan Documents (the “May 2023 Credit Agreement Amendment”) relating to the Fortress Credit Agreement with Fortress pursuant to which the ~~Company may borrow up~~parties agreed to, anamong other things, (i) certain consents related to the Company’s previously disclosed divestiture of Mimosa, (ii) waive certain existing events of default under the Fortress Credit Agreement in the limited manner set forth therein, (iii) terminate the existing delayed draw term loan commitments under the Fortress Credit Agreement and establish new delayed draw term loan commitments in the aggregate ~~principal~~ amount of ~~$200,000~~$25 million, (iv) modify the interest rates applicable to be used for a portion of the expenses of the IPO. This loan is non-interest bearing, unsecured and due at the earlier of December 31, 2020 or the closing of the IPO. The loan would be repaid upon the closing of the IPO out of the offering proceeds not held in the Trust Account. As of September 30, 2020, the Company had drawn down $100,000certain loans under the ~~promissory notes. The borrowings outstanding under~~Fortress Credit Agreement, (v) provide for the ~~notes in the amount~~issuance of ~~$120,000 were repaid on November 2, 2020.~~

~~Related Party Loans~~

~~In order~~5,912,040 warrants to ~~finance transaction costs in connection with an intended initial Business Combination, the Sponsor or an affiliate of the Sponsor or certain~~purchase shares of the Company’s ~~officers and directors may, but are not obligated to,~~common stock (collectively, the “Warrants”), (vi) amend certain financial covenants, (vii) provide ~~non-interest-bearing loans~~for additional fees related to the ~~Company as may be required (the “Working Capital Loans”). If~~Fortress Credit Agreement, and (viii) amend and restate the ~~Company completes an initial Business Combination,~~Fortress Credit Agreement. The Warrants provided for under the Company would repay the Working Capital Loans out of the proceeds of the Trust Account. In the event that an initial Business Combination does not close, the Company may use a portion of the working capital held outside the Trust AccountFortress Credit Agreement were issued to repay the Working Capital Loans but no proceeds from the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible into units at a price of $10.00 per Unit at the option of the lender. The units would be identical to the Private Units. As of September 30, 2020, no such Working Capital Loans were outstanding.

~~Related Party Extension Loans~~

The Company will have up to 12 months from the closing of the IPO to consummate an initial Business Combination. However, if the Company anticipates that it may not be able to consummate its initial Business Combination within 12 months, the Company may, by resolution of its board if requested by the Sponsor, extend the period of time to consummate a Business Combination up to two times, each by an additional three months (for a total of up to 18 months to complete a Business Combination), subject to the Sponsor depositing additional funds into the Trust Account. The Company’s public stockholders will not be entitled to votecertain lenders or ~~redeem~~ their ~~shares in connection with any such extension. Pursuant to the terms of the Company’s amended~~designees and restated certificate of incorporation and the trust agreement entered into between the Company and Continental Stock Transfer & Trust Company, in order for any such extension, the Company’s Sponsor or its affiliates or designees, upon five days advance notice prior to the applicable deadline, must deposit into the Trust Account $1,000,000, or $1,150,000 if the underwriters’ over-allotment option is exercised in full ($0.10 per unit in either case, up to an aggregate of $2,000,000 or $2,300,000 if the underwriters’ over-allotment option is exercised in full) on or prior to the date of the applicable deadline, for each three month extension. Any such payments would be made in the form of a non-interest-bearing loan. The Sponsor and its affiliates or designees are not obligated to fund the Trust Account to extend the time for the Company to complete its initial Business Combination. If the Company is unable to consummate an initial Business Combination within such time period, it will redeem 100% of its issued and outstanding Public Shares for a pro rata portion of the funds held in the Trust Account, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, subject to applicable law, and then seek to dissolve and liquidate.

~~Administrative Service Fee~~

The Company has agreed to pay an affiliate of its Sponsor, commencing on the Effective Date of the registration statement, a total of $10,000 per month for office space, utilities and secretarial and administrative support. Upon completion of the Company’s Business Combination or its liquidation, the Company will cease paying these monthly fees.

~~Note 6 — Commitments and Contingencies~~

~~Registration Rights~~

The holders of the founder shares, Private Units, and Units that may be issued upon conversion of Working Capital Loans will have registration rights to require the Company to register a sale of any of its securities held by them pursuant to a registration rights agreement signed on October 29, 2020. These holders will be entitled to make up to three demands, excluding short form registration demands, that the Company registers such securities for sale under the Securities Act. In addition, these holders will have “piggy-back” registration rights to include their securities in other registration statements filed by the Company.

~~Underwriters Agreement~~

~~The underwriters have a 45-day option beginning November 3, 2020 to purchase up to an additional 1,500,000 units to cover over-allotments, if any.~~

On November 3, 2020, the Company paid a fixed underwriting discount of $2,000,000. Additionally, the underwriters will be entitled to a deferred underwriting discount of 3.5% of the gross proceeds of the IPO held in the Trust Account upon the completion of the Company’s initial Business Combination subject to the terms of the underwriting agreement.

On November 9, 2020, the underwriters partially exercised the over-allotment option to purchase 1,000,000 Units, and on November 12, 2020, the underwriters fully exercised the over-allotment option to purchase the remaining 500,000 Over-Allotment Units, generating an aggregate of gross proceeds of $15,000,000, and incurred $300,000 in deferred underwriting fees.

~~Note 7 — Stockholder’s Equity~~

~~Preferred Stock~~ — ~~The Company is authorized to issue a total of 1,000,000 preferred shares at par value of $0.0001 each. At September 30, 2020, there were no shares of preferred shares issued or outstanding.~~

~~Common Stock~~— The Company is authorized to issue a total of 100,000,000 shares of common stock at par value of $0.0001 each. At September 4, 2020, the Company issued 2,156,250 shares to its initial stockholders for $25,000, or approximately $0.012 per share. The founder shares include an aggregate of up to 281,250 shares subject to forfeiture if the over-allotment option is not exercised by the underwriters in full. On October 20, 2020, the Company effected a stock dividend resulting in its sponsor holding 2,875,000 founder shares (up to 375,000 shares of which are subject to forfeiture depending on the extent to which the underwriters’ over-allotment option is exercised), representing an adjusted purchase price of approximately $0.009 per share. In connection with the underwriters’ fully exercise of their over-allotment option on November 9, 2020 and November 12, 2020, the 375,000 shares were no longer subject to forfeiture.

The Company’s initial stockholders have agreed not to transfer, assign or sell their founder shares until the earlier of (i) one year after the date of the consummation of the initial Business Combination or (ii) the date on which the closing price of the Company’s shares of common stock equals or exceeds $12.50 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing after the initial Business Combination, or earlier, in either case, if, subsequent to the initial Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of its stockholders having the right to exchange their shares of common stock for cash, securities or other property.

~~Warrants~~~~—Each warrant entitles the holder~~exercisable to purchase one share of the Company’s common stock at aan exercise price of ~~$11.50~~$0.01 per ~~share,~~share. The Warrants have a term of 7.5 years and will become exercisable upon the earliest to occur of (i) the third anniversary of the issuance of the warrants, (ii) an “Acquisition” as defined in the Warrant, (iii) any debt financing or issuance of equity or instruments convertible into equity interests of the Company in which the Company receives in excess of $50 million in one or a series of related transactions, and (iv) any other strategic transactions, joint ventures, financings or combinations between the Company and one or more investors or third parties in which the Company or its subsidiaries receive in excess of $50 million in one or a series of related transactions.

With the May 2023 Credit Agreement Amendment, the interest rates were increased to 5.5% plus SOFR to up to 8.5% for the paid in-kind interest. The maturity of the loan did not change. The Company accounted for the May 2023 Credit Agreement Amendment as a loss on debt extinguishment of which $5.1 million is related to the senior term loan.

The Fortress Credit Agreement initial term loan total commitment of $34.0 million and a term loan commitment of $10.0 million were both funded to Legacy Airspan on December 30, 2020. Pursuant to the Fortress Credit Agreement, the Company may expand the term loan commitment by $25.0 million subject to the terms and conditions of the Fortress Credit Agreement. The maturity date of the total loan commitment is December 30, 2024. The Fortress Credit Agreement contains a prepayment premium of 5.0% if the prepayment occurs during the period from December 30, 2021 through December 29, 2022, and 3.0% if the prepayment occurs during the period from December 30, 2022 through December 29, 2023. The Fortress Credit Agreement also contained a prohibition on prepayment during the period from December 30, 2020 through December 29, 2021.

To secure its obligations under the Fortress Credit Agreement, Fortress was assigned PWB’s security interest under the PWB Facility and the Company and certain of its subsidiaries granted Fortress as security for the obligations a security interest in (a) all of the real, personal and mixed property in which liens are granted or purported to be granted pursuant to any of the collateral documents as security for the obligations, (b) all products, proceeds, rents and profits of such property, (c) all of each loan party’s book and records (d) all of the foregoing whether now owned or existing, in each case excluding certain excluded assets.

The Fortress Credit Agreement and the Fortress Convertible Note Agreement each contains representations and warranties, events of default and affirmative and negative covenants, which include, among other things, certain restrictions on the ability to pay dividends, create liens, incur additional indebtedness, make investments, dispose of assets, consummate business combinations (except for permitted investment, as defined in the Fortress Credit Agreement and the Fortress Convertible Note Agreement, respectively), and make distributions. In addition, financial covenants apply. Prior to the May 2023 Fortress Credit Agreement Amendment and the May 2023 Fortress Convertible Note Agreement Amendment, these financial covenants included (a) minimum liquidity of an amount between $15.0 million and $20.0 million, depending on EBITDA performance levels and whether a default or event of default existed under the Fortress Credit Agreement, (b) minimum last twelve-month revenue and (c) minimum last twelve-month Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”). Pursuant to the May 2023 Fortress Credit Agreement Amendment, the financial covenants included in the Fortress Credit Agreement and the Fortress Convertible Note Agreement were amended to (i) decrease the required minimum liquidity to $2.0 million and, from and after the Closing Date, $4.0 million, (ii) modify the minimum revenue covenant levels and change to a three-month test period, and (iii) modify the minimum EBITDA covenant levels and change to a three-month test period. Revenue and EBITDA financial covenants are tested quarterly.

The Company was not in compliance with the minimum last twelve-month EBITDA covenant and the minimum last twelve-month revenue covenant under the Fortress Credit Agreement and the agreement governing the Company’s senior secured convertible notes as of the December 31, 2022 and the March 31, 2023 quarterly measurement dates, and the Company was not in compliance with the minimum liquidity covenant under the Fortress Credit Agreement and the Fortress Convertible Note Agreement at all times from November 29, 2022, until the date of the May 2023 Fortress Credit Agreement Amendment and the May 2023 Fortress Convertible Note Agreement Amendment, each of which is an event of default under those agreements. The Company did not make the payments due under the Fortress Credit Agreement and the Fortress Convertible Note Agreement on March 31, 2023, which was an event of default under the Fortress Credit Agreement and the Fortress Convertible Note Agreement. Each of these defaults was waived pursuant to the May 2023 Fortress Credit Agreement Amendment and the May 2023 Fortress Convertible Note Agreement Amendment.

Based on management’s current forecast, absent of additional financing or capital raising, the Company has concluded it may not be in compliance with certain of the prospective financial covenants under the May 2023 Credit Agreement Amendment and the agreement governing the Company’s senior secured convertible notes during certain periods of the next twelve months. Accordingly, while the Company may seek future waivers from compliance with the applicable covenants in connection with such anticipated breaches, or amendments of existing financial covenants included in the Fortress Credit Agreement and the agreement governing the Company’s senior secured convertible notes, the Company is also pursuing alternative sources of capital so that it would be able to satisfy its prospective minimum liquidity obligations under the Fortress Credit Agreement and the agreement governing the Company’s senior secured convertible notes. There can be no assurance that the lenders under the Fortress Credit Agreement and the agreement governing the Company’s senior secured convertible notes will agree to waive any breaches thereunder that may arise in the future or that we will otherwise be able to remedy such breaches.

In the absence of waivers or remedies of existing covenant breaches or any additional breaches that may arise in the future, the lenders under the May 2023 Credit Agreement Amendment and the agreement governing the Company’s senior secured convertible notes could (i) elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest and other premiums, and institute foreclosure proceedings against the Company’s assets, (ii) elect to apply the default interest rate under the Fortress Credit Agreement and the Fortress Convertible Note Agreement and related agreements, and (iii) with respect to the Fortress Credit Agreement, elect to terminate their delayed draw commitments thereunder and cease making further loans. As a result of any of these actions, the Company could be forced into bankruptcy or liquidation. In addition, the Company’s subordinated term loan – related party (see Note 9) and subordinated debt (see Note 8) could be accelerated or required to be paid due to provisions contained within those instruments.

As of June 30, 2023, the Company was in compliance with all applicable covenants under the Fortress Credit Agreement. Prior to June 30, 2023, the Company had breached certain covenants, but they were waived by the lender when the May 2023 Credit Agreement Amendment was executed.

The Company’s senior term loan balance was $65.9 million and $44.1 million, inclusive of accrued interest of $6.4 million and $5.0 million, as of June 30, 2023 and December 31, 2022, respectively. Deferred financing fees of $2.7 million and $3.6 million are reflected as reductions of the outstanding senior term loan balance as of June 30, 2023 and December 31, 2022, respectively.

11.

CONVERTIBLE DEBT

On August 13, 2021, the Company, together with Legacy Airspan, Holdco, Airspan Networks (SG) Inc., Mimosa Networks, Inc., Mimosa Networks International, LLC, Airspan Communications Limited, Airspan Networks LTD, and Airspan Japan K.K., as guarantors, and Fortress, entered into a Senior Secured Convertible Note Purchase and Guarantee Agreement (the “Fortress Convertible Note Agreement”), in order to meet the available cash requirement of the reverse recapitalization described in Note 3. Pursuant to the Fortress Convertible Note Agreement, $50.0 million was funded to the Company in exchange for the issuance of $50.0 million aggregate principal amount of Convertible Notes on August 13, 2021, the date of the reverse recapitalization, which amount was increased to $52.5 million under the May 2023 Fortress Convertible Note Agreement Amendment. The Convertible Notes bear interest, prior to May 18, 2023, at 7.0% per annum, and from and after May 18, 2023, at 10.0% per annum (the “Base Rate”), payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on September 30, 2021. The Convertible Notes will mature on December 30, 2024, unless earlier accelerated, converted, redeemed or repurchased. Under certain circumstances, a default interest will apply following an event of default under the Convertible Notes at a per annum rate equal to the lower of (i) the Base Rate plus 3.75% and (ii) the maximum amount permitted by law. The Convertible Notes are pari passu in right of payment and lien priority with the obligations under the Fortress Credit Agreement and are secured by a security interest in (a) all of the real, personal and mixed property in which liens are granted or purported to be granted pursuant to any of the collateral documents as security for the obligations, (b) all products, proceeds, rents and profits of such property, (c) all of each loan party’s book and records and (d) all of the foregoing whether now owned or existing, in each case excluding certain excluded assets.

On March 29, 2022, the Company and certain of its subsidiaries who are party to the Fortress Convertible Note Agreement entered into a First Amendment and Waiver to Senior Secured Convertible Note Purchase and Guarantee Agreement and Other Note Documents relating to the Fortress Convertible Note Agreement and the Convertible Notes (the “March 2022 Fortress Convertible Note Agreement Amendment”) to, among other things, amend the financial covenants included in the Fortress Convertible Note Agreement, amend the conversion price of the Convertible Notes and amend the optional redemption provisions of the Convertible Notes. On May 18, 2023, the Company and certain of its subsidiaries who are party to the Fortress Convertible Note Agreement entered into a Limited Waiver and Consent, Third Amendment to Senior Secured Convertible Note Purchase and Guarantee Agreement and Reaffirmation of Note Documents (the “May 2023 Fortress Convertible Note Agreement Amendment”) to, among other things, (i) provide for certain consents relating to the Company’s previously disclosed divestiture of Mimosa, (ii) waive certain existing events of default under the Fortress Convertible Note Agreement in the limited manner set forth therein, (iii) imposed a $2.5 million fee, which was capitalized to increase the aggregate principal amount of the Convertible Notes to $52.5 million, (iv) increase the interest rate applicable to the Convertible Notes to 10.00%, and (v) provide for additional fees related to the Fortress Convertible Note Purchase Agreement and the Convertible Notes. On May 28, 2023, the Company reissued $52.5 million aggregate principal amount of Convertible Notes.

With the May 2023 Fortress Convertible Note Agreement Amendment, the interest rates were increased to 10.0%. The maturity of the loan did not change. The Company accounted for the May 2023 Fortress Convertible Note Agreement Amendment as a loss on debt extinguishment of which $3.2 million is related to the convertible debt.

Prior to the March 2022 Fortress Convertible Note Agreement Amendment, the Convertible Notes, together with all accrued but unpaid interest thereon, were convertible, in whole or in part, at any time prior to the payment in full of the principal amount thereof (together with all accrued but unpaid interest thereon), into shares of Common Stock at a conversion price equal to $12.50 per share. Pursuant to the March 2022 Fortress Convertible Note Agreement Amendment, the conversion price with respect to the Convertible Notes was decreased to $8.00 per share. The conversion price with respect to the Convertible Notes is subject to adjustment ~~as discussed herein. In addition, if (x)~~to reflect stock splits and subdivisions, stock and other dividends and distributions, recapitalizations, reclassifications, combinations and other similar changes in capital structure. The conversion price with respect to the Convertible Notes is also subject to a broad-based weighted average anti-dilution adjustment in the event the Company issues, ~~additional~~or is deemed to have issued, shares of ~~common stock or equity-linked securities for capital raising purposes~~Common Stock, other than certain excepted issuances, at a price below the conversion price then in ~~connection with~~effect. In addition, pursuant to the ~~closing~~March 2022 Fortress Convertible Note Agreement Amendment, if, during the period commencing on and including the date of ~~its initial Business Combination at an issue price or effective issue~~the Fortress Convertible Note Agreement Amendment and ending on and including the 15-month anniversary of the date of the March 2022 Fortress Convertible Note Agreement Amendment, there is no 30 consecutive trading day-period during which the average of the daily volume weighted average price of ~~less than $9.20 per share of common~~the Common Stock (“Daily VWAP”) for such 30 consecutive trading day-period (after excluding the three highest and the three lowest Daily VWAPs during such period) equals or exceeds $10.00 (as adjusted for stock ~~(with such issue~~splits, stock combinations, dividends, distributions, reorganizations, recapitalizations and the like), the conversion price ~~or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance~~with respect to the ~~Company’s Sponsor or its affiliates, without taking into account any founder shares held by~~Convertible Notes will be reduced to the ~~Company’s Sponsor or its affiliates, as applicable, prior~~amount that such conversion price would otherwise have been had the conversion price with respect to ~~such issuance) (the “Newly Issued Price”), (y)~~ the ~~aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination~~Convertible Notes been $6.00 on the date of the ~~consummation~~March 2022 Fortress Convertible Note Agreement Amendment.

The following is the allocation among the freestanding instruments (in thousands) at the issuance date:

Schedule of convertible notes	August 13, 2021
Convertible Notes	$	41,887
Conversion option derivative		7,474
Call and contingent put derivative		639
Total Convertible Notes	$	50,000

As of June 30 2023, the Company had convertible debt outstanding as shown below (in thousands):

Schedule of convertible debt	June 30, 2023
Convertible Notes	$	44,387
Accrued interest, less loan discount costs		3,362
Total Convertible Notes	$	47,749

As of June 30, 2023, the Company was in compliance with all applicable covenants under the Fortress Convertible Note Agreement. The Company was not in compliance with all applicable covenants at March 31, 2023 and December 31, 2022, therefore, the convertible notes were classified as current liabilities.

See Note 10 for further information related to the Fortress Convertible Note Agreement.

12.

FAIR VALUE MEASUREMENTS

The Company’s assets and liabilities recorded at fair value are categorized based upon a fair value hierarchy that ranks the quality and reliability of the ~~initial Business Combination (net~~information used to determine fair value.

The Company has certain non-financial assets that are measured at fair value on a non-recurring basis when there is an indicator of ~~redemptions),~~impairment, and ~~(z)~~they are recorded at fair value only when impairment is recognized. These assets include property, plant and equipment, goodwill and intangible assets, net. The Company did not record impairment to any non-financial assets in the ~~volume weighted average trading price~~three and six months ended June 30, 2023 and 2022.

Financial Disclosures about Fair Value of Financial Instruments

The table below sets forth information related to the Company’s condensed consolidated financial instruments (in thousands):

Schedule of fair value of financial instruments	Level in	June 30, 2023				December 31, 2022
	Fair Value	Carrying		Fair		Carrying		Fair
	Hierarchy	Amount		Value		Amount		Value
Assets:
Cash and cash equivalents	1	$	10,102	$	10,102	$	7,253	$	7,253
Restricted cash	1		35		35		34		34
Cash and investment in severance benefit accounts	1		2,917		2,917		3,161		3,161

Liabilities:
Subordinated term loan^(a)	2	$	43,402	$	25,107	$	41,528	$	25,503
Subordinated debt^(a)	2		11,396		7,346		11,119		7,386
Senior term loan^(a)	2		63,224		55,105		40,529		36,680
Convertible debt	2		47,749		49,325		43,928		48,249
Public Warrants	1		15		15		345		345
Warrants^(b)	3		1		1		36		36

(a)

As of June 30, 2023 and December 31, 2022, the fair value of the subordinated term loan, subordinated debt and senior term loan considered the senior status of the senior term loan under the Fortress Credit Agreement, followed by the junior status of the subordinated term loan and subordinated debt. The implied yields of the subordinated term loan, subordinated debt and senior term loan were 34.45%, 40.74% and 32.19%, respectively, as of June 30, 2023 and 23.00%, 27.18% and 28.78%, respectively, as of December 31, 2022.

(b)

As of June 30, 2023 and December 31, 2022, the fair value of warrants outstanding that are classified as liabilities are included in other long-term liabilities in the Company’s condensed consolidated balance sheets. The key inputs to the valuation models that were utilized to estimate the fair value of the Post-Combination Warrants and Private Placement Warrants as of June 30, 2023 were as follows:

Schedule of assumptions	Post- Combination Warrants			Private Placement Warrants
Assumptions:
Stock price	$	0.17		$	0.17
Exercise price	$	12.50 – 17.50		$	11.50
Risk free rate		4.47	%		4.47	%
Expected volatility		84.2	%		84.2	%
Dividend yield		0.0	%		0.0	%

The conversion option derivative and call and contingent put derivative are considered a Level 3 measurement due to the utilization of significant unobservable inputs in the valuation. The Company utilized a binomial model to estimate the fair value of the embedded derivative features requiring bifurcation associated with the Convertible Notes payable at the issuance date and as of the June 30, 2023 reporting date. The key inputs to the valuation models that were utilized to estimate the fair value of the convertible debt derivative liabilities include:

Schedule of assumptions of the convertible debt derivative liabilities	June 30, 2023			December 31, 2022
Assumptions:
Stock price	$	0.17		$	1.31
Conversion strike price	$	8.00		$	8.00
Volatility		92.00	%		94.00	%
Dividend yield		0.00	%		0.00	%
Risk free rate		4.12	%		4.32	%
Debt discount rate		28.00	%		15.10	%
Coupon interest rate		7.00	%		7.00	%
Face amount (in thousands)	$	52,500		$	50,000
Contingent put inputs and assumptions:
Probability of fundamental change		50.00	%		33.00	%

The following table presents a roll-forward of the Level 3 instruments:

(in thousands)	Warrants			Conversion option derivative			Call and contingent put derivative
Beginning balance, December 31, 2022	$	36		$	3,052		$	2,301
Change in fair value		(35	)		(2,912	)		2,048
Ending balance, June 30, 2023	$	1		$	140		$	4,349

The fair value of the Company’s ~~common stock~~cash and cash equivalents and restricted cash approximate the carrying value because of the short-term nature of these accounts.

13.

COMMITMENTS AND CONTINGENCIES

The Company had commitments with its main subcontract manufacturers under various purchase orders and forecast arrangements of $73.5 million as of June 30, 2023, of which $55.6 million relates to Mimosa. The majority of the commitments have expected delivery dates during the ~~20 trading day period starting~~remainder of 2023.

Contingencies and Legal Proceedings

From time to time, the Company receives and reviews correspondence from third parties with respect to licensing their patents and other intellectual property in connection with the sale of the Company’s products. Disputes may arise with such third parties if an agreement cannot be reached regarding the licensing of such patents or intellectual property.

On October 14, 2019, Barkan Wireless IP Holdings, L.P. (“Barkan”) filed a suit against Sprint Corporation and related entities (“Sprint”) in the United States District Court for the Eastern District of Texas alleging patent infringement based in part on two of the Company’s products, Airave 4 and Magic Box Gold. See Barkan Wireless IP Holdings, L.P. v. Sprint Corporation et al, Case No. 2:19-cv-00336-JRG (E.D. Tex.). On March 26, 2021, after a settlement between Barkan and Sprint, the court granted an agreed motion to dismiss and the case was closed. Sprint has demanded that the Company indemnify Sprint $3,870,000 for a portion of the amounts Sprint paid to defend and settle the case. On April 27, 2021, Sprint gave notice that it intends to set-off amounts it owes the Company until Sprint’s indemnity demand is satisfied. The Company disputes Sprint’s indemnity demand and, on March 15, 2022, filed a complaint for breach of contract in the United States District Court for the District of Kansas. See Airspan Networks, Inc. v. Sprint/United Management Company, Case No. 2:22-cv-02104-JAR-ADM (D. Kan.). That complaint was subsequently voluntarily dismissed by the Company and the underlying breach of contract claim is now a counterclaim in the matter captioned Sprint Communications Company, L.P et al. vs. Casa Systems, Inc. et al., No. 22CV02327 Div.7 pending in the District Court of Johnson County Kansas. On January 3, 2023, the parties settled this matter. The Company had previously provided for a reserve for an estimated amount of exposure related to this matter in a prior year.

Except as set forth above, the Company is not currently subject to any other material legal proceedings. The Company may from time to time become a party to various other legal proceedings arising in the ordinary course of its business. While the results of such claims and litigation cannot be predicted with certainty, the Company currently believes that it is not a party to any litigation the final outcome of which is likely to have a material adverse effect on the ~~trading day prior~~Company’s condensed consolidated financial position, results of operations or cash flows.

14.

COMMON STOCK AND WARRANTS

Common Stock

As of June 30, 2023, 260,000,000 shares, $0.0001 par value per share are authorized, of which, 250,000,000 shares are designated as Common Stock and 10,000,000 shares are designated as preferred stock. As of June 30, 2023, there were 74,582,992 shares of Common Stock issued and outstanding and no shares of preferred stock issued or outstanding.

Holders of our Common Stock are entitled to receive dividends when, as and if declared by the ~~day on which~~board of directors of the Company ~~consummates~~(the “Board”), payable either in cash, in property or in shares of capital stock. As of June 30, 2023, the ~~initial Business Combination (such price,~~Company had not declared any dividends.

Legacy Airspan Warrants

The Company accounted for Legacy Airspan convertible preferred stock warrants that have been earned and are exercisable into shares of Legacy Airspan’s convertible preferred stock as liabilities pursuant to Accounting Standards Codification 480, “Distinguishing Liabilities from Equity” as the ~~“Market Value”)~~warrants were exercisable into shares of Legacy Airspan convertible preferred stock that were contingently redeemable upon events outside the control of Legacy Airspan. The warrant liability is ~~below $9.20 per share,~~included in other long-term liabilities on the accompanying condensed consolidated balance sheets. The warrants are remeasured and recognized at fair value at each balance sheet date. At the end of each reporting period, changes in fair value during the period are recognized as a component of other expense, net on the accompanying condensed consolidated statements of operations.

In January 2021 and February 2021, Legacy Airspan issued warrants for the purchase of 6,097 and 406, respectively, shares of Legacy Airspan Series H Convertible Preferred Stock to certain holders of Legacy Airspan Series H Senior Convertible Preferred Stock (one warrant for every two shares of Legacy Airspan Series H Senior Convertible Preferred Stock purchased in January and February 2021, respectively) with an exercise price of $61.50 per share and a 5-year term (“Series H warrants”). Legacy Airspan accounted for the initial fair value of the Series H warrants as a discount on the Legacy Airspan Series H Senior Convertible Preferred Stock issuance and recorded a corresponding warrant liability.

In October 2015, Legacy Airspan issued warrants to purchase 487,805 shares of Legacy Airspan Series D Convertible Preferred Stock to holders of its Series D Convertible Preferred Stock with an exercise price of $61.50 per share, subject to certain performance requirements (the “Series D-1 Warrants”). In June 2014, Legacy Airspan issued warrants to purchase 203,252 shares of Legacy Airspan Series D Convertible Preferred Stock to holders of Legacy Airspan Series D Convertible Preferred Stock with an exercise price of $61.50 per share, subject to certain performance requirements (the “Series D Warrants”).

The Series D Warrants expired unexercised in January 2021 and the Series D-1 Warrants and Series H warrants were converted as part of the Closing of the Business Combination (Note 3) and ceased to exist after the Business Combination.

Common Stock Warrants

As of June 30, 2023, there are 12,045,000 Common Stock Warrants outstanding, consisting of 11,500,000 and 545,000 Public Warrants and Private Placement Warrants, respectively.

As part of NBA’s initial public offering, 11,500,000 Public Warrants were sold. The Public Warrants entitle the holder thereof to purchase one share of Common Stock at a price of $11.50 per share, subject to adjustment. The Public Warrants may be exercised only for a whole number of shares of Common Stock. No fractional shares will be ~~adjusted (to the nearest cent) to be equal to 115%~~issued upon exercise of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

Public Warrants. The ~~warrants will become exercisable on the later of 12 months from the closing of the IPO or 30 days after the completion of its initial Business Combination, and~~Public Warrants will expire ~~five years after the completion of the Company’s initial Business Combination,~~on August 13, 2026 at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

The Company ~~will~~may redeem the Public Warrants when exercisable, in whole and not ~~be obligated to deliver any shares~~in part, at a price of ~~common stock pursuant to the exercise of a~~$0.01 per warrant, for cash and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of common stock underlying the warrants is then effective and a prospectus relating thereto is current. No warrant will be exercisable andso long as the Company ~~will~~provides not ~~be obligated~~less than 30 days’ prior written notice of redemption to ~~issue shares of common stock upon exercise of a~~each warrant ~~unless common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under~~holder, and if, and only if, the ~~securities laws~~reported last sale price of the state of residence of the registered holder of the warrants. In no event will the Company be required to net cash settle any warrant. If the shares issuable upon exercise of the warrants are not registered under the Securities Act, the Company will be required to permit holders to exercise their warrants on a cashless basis. However, no warrant will be exercisable on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available.

~~Once the warrants become exercisable, the Company may call the warrants for redemption:~~

	●	~~in whole and not in part;~~

	●	~~at a price of $0.01 per warrant;~~

	●	~~upon not less than 30 days’ prior written notice of redemption given after the warrants become exercisable (the “30-day redemption period”) to each warrant holder; and~~

	●	~~if, and only if, the reported last sale price of the common stock~~Common Stock equals or exceeds $18.00 per share ~~(as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like)~~ for any 20 trading days within a 30-trading day period ~~commencing once the warrants become exercisable and ending three business days before the Company sends the notice of redemption to the warrant-holders.~~

If the Company calls the warrants for redemption as described above, the management will have the option to require any holders that wishes to exercise its warrant to do so on a “cashless basis.” If the management takes advantage of this option, all holders of warrants would pay the exercise price by surrendering their warrants for that number of shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the common stock for the 10 trading days ending on the third trading day prior to the date ~~on which~~the Company sends the notice of redemption ~~is sent~~ to the ~~holders~~warrant holders.

Simultaneously with NBA’s initial public offering, NBA consummated a private placement of ~~warrants.~~ 545,000 Private Placement Warrants with its sponsor. The Private Placement Warrants are exercisable for one share of Common Stock at a price of $11.50 per share, subject to adjustment. The Private Placement Warrants are identical to the Public Warrants, except that, so long as the Private Placement Warrants are held by the initial purchaser or its permitted transferees, the Private Placement Warrants: (1) may be exercised for cash or on a cashless basis; (2) may not be transferred, assigned or sold until thirty (30) days after the date of the Closing; and (3) may not be redeemed.

~~Note 8 — Subsequent Events~~

Post-Combination Warrants

As of June 30, 2023, there are 9,000,000 Post-Combination Warrants outstanding.

At Closing, the Company issued Post-Combination Warrants exercisable for 9,000,000 shares of Company Common Stock. The Post-Combination Warrants include: (i) 3,000,000 Post-Combination $12.50 Warrants; (ii) 3,000,000 Post-Combination $15.00 Warrants; and (iii) 3,000,000 Post-Combination $17.50 Warrants. The Post-Combination Warrants may only be exercised during the period commencing on the Closing and terminating on the earlier of (i) two years following the date of the Closing, August 13, 2023, and (ii) the redemption date, for a price of $12.50 per Post-Combination $12.50 Warrant, $15.00 per Post-Combination $15.00 Warrant and $17.50 per Post-Combination $17.50 Warrant.

Fortress Warrants

In connection with the May 2023 Credit Agreement Amendment relating to the Fortress Credit Agreement with Fortress, the Company issued 5,912,040 warrants to purchase shares of the Company’s common stock Warrants. The Warrants provided for under the Fortress Credit Agreement were issued to certain lenders or their designees and will be exercisable to purchase one share of the Company’s common stock at an exercise price of $0.01 per share. The Warrants have a term of 7.5 years and will become exercisable upon the earliest to occur of (i) the third anniversary of the issuance of the warrants, (ii) an “Acquisition” as defined in the Warrant, (iii) any debt financing or issuance of equity or instruments convertible into equity interests of the Company in which the Company receives in excess of $50 million in one or a series of related transactions, and (iv) any other strategic transactions, joint ventures, financings or combinations between the Company and one or more investors or third parties in which the Company or its subsidiaries receive in excess of $50 million in one or a series of related transactions. The Company ~~evaluated subsequent events~~recorded $1.7 million reduction of the convertible debt and ~~transactions~~a $1.7 million increase in additional paid in capital.

15.

SHARE-BASED COMPENSATION

2021 Stock Incentive Plan

Prior to the Business Combination, the Company maintained its 2009 Omnibus Equity Compensation Plan (the “2009 Plan” and together with the 2021 Plan, the “Plans”). Upon Closing of the Business Combination, awards under the 2009 Plan were converted at the exchange ratio calculated in accordance with the Business Combination Agreement and the 2021 Plan became effective. On June 21, 2022, the 2021 Plan was amended and restated to, among other things, increase the number of shares of Common Stock authorized for issuance under the 2021 Plan by 5,643,450 shares. As of June 30, 2023, there were 6,007,718 shares of Common Stock authorized for issuance under the amended and restated 2021 Plan, plus any shares of Common Stock subject to awards under the 2009 Plan that ~~occurred~~are forfeited or reacquired by the Company due to termination or cancellation. As of June 30, 2023, there were 14,383,618 shares of Common Stock authorized for issuance under the Plans.

The following table summarizes share-based compensation expense for the three and six months ended June 30, 2023 and 2022 (in thousands):

Schedule of summarizes share-based compensation expense
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Research and development	$	570	$	1,169	$	1,101	$	2,135
Sales and marketing		517		1,197		1,024		2,279
General and administrative		904		4,541		1,798		9,015
Cost of sales		7		65		14		107
Total share-based compensation	$	1,998	$	6,972	$	3,937	$	13,536

Common Stock Options

The following table sets forth the activity for all Common Stock options:

Schedule of common stock options	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Weighted- Average Grant Date Fair Value
Outstanding, December 31, 2022		7,812,178		$	3.70		6.56	$	2.23
Forfeited		(31,523	)		2.26		-		1.46
Expired		(14,421	)		5.40		-		2.86
Outstanding, June 30, 2023^(a)		7,766,234		$	3.70		6.02	$	1.98
Exercisable, June 30, 2023^(b)		5,566,087		$	3.89		5.11	$	2.06

(a)

There was no aggregate intrinsic value of all stock options outstanding as of June 30, 2023.

(b)

There was no aggregate intrinsic value of all vested/exercisable stock options as of June 30, 2023.

As of June 30, 2023, there was $3.3 million of unrecognized compensation expense related to stock options to be recognized over a weighted average period of 2.47 years.

Restricted Stock Units

As part of the consideration in the Business Combination, RSUs with respect to 1,750,000 shares of Common Stock were granted to the participants in Legacy Airspan’s MIP. For the RSUs granted to MIP Participants, the weighted average grant date fair value was $9.75 per RSU. The RSUs granted in connection with the MIP vest one year after the ~~balance sheet~~ date upof the grant.

The following table sets forth the activity for all RSUs:

Schedule of unvested restricted stock units	Number of RSUs			Weighted Average Grant Date Fair Value
Outstanding (nonvested), December 31, 2022		4,267,746		$	3.58
Granted		681,620			0.56
Released		(387,204	)		5.44
Forfeited		(51,611	)		3.25
Outstanding (nonvested), June 30, 2023		4,510,551		$	2.97

Because the Company maintained a full valuation allowance on its U.S. deferred tax assets, it did not recognize any tax benefit related to share-based compensation expense for the three and six months ended June 30, 2023 and 2022. As of June 30, 2023, there was $8.8 million of unrecognized compensation expense related to RSUs to be recognized over a weighted average period of 1.72 years.

16.

NET LOSS PER SHARE

Net loss per share is computed using the weighted average number of shares of Common Stock outstanding less the number of shares subject to repurchase.

The following table sets forth the computation of basic and diluted net loss per share for the periods indicated (in thousands, except share data):

Schedule of basic and diluted net loss per share
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Numerator:
Net loss	$	(33,607	)	$	(21,017	)	$	(54,496	)	$	(50,755	)

Denominator - basic and diluted:
Weighted average common shares outstanding		74,582,992			72,335,952			74,528,668			72,335,952

Net loss per share - basic and diluted	$	(0.45	)	$	(0.29	)	$	(0.73	)	$	(0.70	)

The following table sets forth the amounts excluded from the computation of diluted net loss per share as of June 30, 2023 and 2022 because their effect was anti-dilutive.

Schedule of anti-dilutive net loss per share
	June 30,
	2023		2022
Stock options outstanding		7,766,234		7,983,614
Non-vested shares of restricted stock		4,510,551		6,759,150
Warrants^(a)		27,057,040		21,145,000
Convertible notes^(a)		9,729,163		9,729,163

(a)

The Convertible Notes and warrants referred to in Notes 11 and 14 were also excluded on an as converted basis because their effect would have been anti-dilutive.

17.

RELATED PARTY TRANSACTIONS

As disclosed in Note 9, as of June 30, 2023 and December ~~14, 2020. Other than~~31, 2022, Legacy Airspan had a subordinated term loan with a related party. This related party has an indirect, non-controlling beneficial interest in Fortress, which is the agent and principal lender under the Fortress Credit Agreement and the collateral agent and trustee under the Fortress Convertible Note Agreement and the Convertible Notes. This related party also has an indirect, non-controlling beneficial interest in each holder of Convertible Notes. The Company derived no revenue from sales of products and services to this related party for the three months ended June 30, 2023 and approximately $41 thousand for the six months ended June 30, 2023.

The Company had an outstanding receivable from and payable to a related party, a stockholder, amounting to $0 million and $2.5 million, respectively, as ~~described in these unaudited condensed financial statements in relation~~of June 30, 2023. The Company had an outstanding receivable from and payable to the ~~Initial Public Offering (Note 3)~~same related party, amounting to $0.4 million and $5.5 million, respectively, as of December 31, 2022.

In addition, the Company has an outstanding accounts receivable from a separate related ~~transactions, private placement (Note 4),~~party, also a stockholder, amounting to $11.7 million and ~~repayment~~$4.5 million as of June 30, 2023 and December 31, 2022, respectively. The Company derived approximately $8.4 million and $4.5 million in revenue from sales of products and services to this related party for the three months ended June 30, 2023 and 2022, respectively. A senior executive at this customer is also a member of the ~~Notes (Note 5),~~Board.

The Company derived revenues from sales of products and services to Dense Air Ltd. (“Dense Air”) amounting to approximately $52 thousand for the period from January 1, 2022 through March 7, 2022. As of March 7, 2022, Dense Air ceased to be a related party.

18.

EQUITY METHOD INVESTMENT

Prior to March 7, 2022, the Company accounted for its investment in Dense Air, as an equity method investment. Dense Air has been funded by its sole lender through convertible debt with various restrictions and requirements including a conversion option on substantially all of the ownership interest in Dense Air. On March 22, 2021, an investor acquired the sole lender to Dense Air’s rights and obligations under a convertible loan agreement and on March 7, 2022 converted the outstanding amount of the loan into shares. The Company retained an approximate 4% holding of Dense Air Networks L.P. This conversion did not ~~identify any other subsequent events that would~~ have ~~required adjustment~~a significant effect on the Company’s consolidated balance sheets, statements of operations or ~~disclosure in~~cash flows.

There have been no dividends received from Dense Air or Dense Air Networks L.P. for the ~~condensed financial statements.~~years ended December 31, 2022 and 2021. The investments had no value at June 30, 2023 and December 31, 2022.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

References to ~~“we”, “us”,~~“we,” “us,” “our” or the “Company” after the Closing of the Business Combination are to ~~New Beginnings Acquisition Corp.,~~Airspan Networks Holdings Inc. and its consolidated subsidiaries, and prior to the Closing of the Business Combination are to Legacy Airspan and its consolidated subsidiaries, in each case, except where the context requires otherwise. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this ~~report.~~

~~Cautionary Note Regarding Forward-Looking Statements~~

~~This~~ Quarterly Report on Form 10-Q ~~includes~~(this “Quarterly Report”).

See the discussion of forward-looking statements ~~within~~and risk factors in Part I Item 1 and Item 1A of this report.

Overview

We are a U.S. headquartered, award-winning technical leader, in the ~~meaning~~4G and 5G Radio Access Network (“RAN”) and broadband access solutions market. We offer a broad range of ~~Section 27A~~software defined radios, broadband access products and network management software to enable cost-effective deployment and efficient management of mobile, fixed and hybrid wireless networks. Our customers include leading mobile communications service providers (“CSPs”), large enterprises, military communications integrators and internet service providers (“ISPs”) working to deliver high-capability broadband access to numerous markets. Our mission is to disrupt and modernize network total cost of ownership (“TCO”) models. We aim to lower costs for customers throughout the product lifecycle, from procurement through commissioning and ongoing operating costs. We have been pioneering wireless technology for over 20 years and are distinguished by our deep customer relationships, innovative product design capabilities and expertise in solving technical challenges at the network edge, where a device or local network interfaces with the Internet or other networks.

In 4G mobile networks, we established ourselves as an expert in network densification by focusing on solving the problems associated with physically locating, installing and commissioning networks consisting of hundreds of thousands of small cells as an alternative and supplement to macro cell-based networks. Software-defined and cost-optimized radio platforms, self-organizing/optimization algorithms and minimum power consumption have been critical to our 4G business and are expected to be even more critical to the deployment and expansion of new 5G networks. As an early leader in 5G OPEN-RAN standards, we have worked to unbundle the monolithic network architectures previously dominated by large incumbent suppliers such as Telefonaktiebolaget LM Ericsson (“Ericsson”), Huawei Technologies Co., Ltd. (“Huawei”), and Nokia Corporation (“Nokia”). As a foundational member of the ~~Securities Act~~5G ecosystem, we work closely with wireless operators, chipset suppliers and infrastructure vendors around the world on 5G developments, trials, pilots and initial 5G deployments.

We started our business in digital wireless access, primarily voice services, rapidly becoming a leader in high performance wireless data networks. Our acquisition of ~~1933,~~Mimosa Networks, Inc. (“Mimosa”) in 2018 strengthened our position in the wireless broadband access market. Mimosa’s capabilities and innovation in wireless broadband point-to-point and point-to-multipoint networks strengthened our disruptive position in the mobile 4G/5G network densification space and expanded our existing North American presence with an engineering center in Silicon Valley. Mimosa’s channel-led sales strategy enhances the distribution of our existing products for specific vertical markets, such as ~~amended,~~private 4G and ~~Section 21E~~5G and applications in citizens broadband radio service (“CBRS”). On March 8, 2023, we entered into a Stock Purchase Agreement to sell the Mimosa business to one of Airspan’s major customers while retaining a reseller arrangement to continue to market and sell the Mimosa products. See Recent Developments section below.

Our main operations are in: Slough, United Kingdom; Mumbai and Bangalore, India; Tokyo, Japan; Airport City, Israel; and Santa Clara, California, and our corporate headquarters is in Boca Raton, Florida.

Recent Developments

Fortress Amendment

On May 18, 2023, the Company, Legacy Airspan and certain of the ~~Securities Exchange Act~~Company’s subsidiaries who are party to the Fortress Credit Agreement entered into the May 2023 Credit Agreement Amendment relating to the Fortress Credit Agreement with Fortress pursuant to which the parties agreed to, among other things, (i) certain consents related to the Company’s previously disclosed divestiture of ~~1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations~~Mimosa, (ii) waive certain existing events of default under the Fortress Credit Agreement in the limited manner set forth therein, (iii) terminate the existing delayed draw term loan commitments under the Fortress Credit Agreement and ~~projections about future events. These forward-looking statements are subject~~establish new delayed draw term loan commitments in the aggregate amount of $25 million, (iv) modify the interest rates applicable to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” orcertain loans under the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings.

~~Overview~~

~~We were incorporated on August 20, 2020 as a Delaware corporation and formed~~Fortress Credit Agreement, (v) provide for the ~~purpose~~issuance of ~~effecting a merger, capital stock exchange, asset acquisition, stock~~5,912,040 warrants to purchase reorganization or similar business combination with one or more businesses, which we refer to throughout this Form 10-Q as our initial business combination. We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target.

~~On November 3, 2020, we completed our initial public offering (the “IPO”)~~shares of ~~10,000,000 units, each unit consisting of one share of~~the Company’s common stock, ~~par value $0.0001 per share,~~(vi) amend certain financial covenants, (vii) provide for additional fees related to the Fortress Credit Agreement, and(viii) amend and ~~one redeemable warrant, each warrant entitling~~restate the ~~holder~~Fortress Credit Agreement. The Warrants provided for under the Fortress Credit Agreement were issued to certain lenders or their designees and will be exercisable to purchase one share of the Company’s common stock at an exercise price of ~~$11.50~~$0.01 per share. The Warrants have a term of 7.5 years and will become exercisable upon the earliest to occur of (i) the third anniversary of the issuance of the warrants, (ii) an “Acquisition” as defined in the Warrant, (iii) any debt financing or issuance of equity or instruments convertible into equity interests of the Company in which the Company receives in excess of $50 million in one or a series of related transactions, and (iv) any other strategic transactions, joint ventures, financings or combinations between the Company and one or more investors or third parties in which the Company or its subsidiaries receive in excess of $50 million in one or a series of related transactions.

On May 18, 2023, the Company and certain of its subsidiaries who are party to the Fortress Convertible Note Agreement entered into the May 2023 Fortress Convertible Note Agreement Amendment to, among other things, (i) provide for certain consents relating to the Company’s previously disclosed divestiture of Mimosa, (ii) waive certain existing events of default under the Fortress Convertible Note Agreement in the limited manner set forth therein, (iii) imposed a $2.5 million fee, which was capitalized to increase the aggregate principal amount of the Convertible Notes to $52.5 million, (iv) increase the interest rate applicable to the Convertible Notes to 10.00%, and (v) provide for additional fees related to the Fortress Convertible Note Purchase Agreement and the Convertible Notes. On May 28, 2023, the Company reissued $52.5 million aggregate principal amount of Convertible Notes.

Mimosa Sale

On March 8, 2023 (the “Closing Date”), the Company entered into a Stock Purchase Agreement (the “Mimosa Purchase Agreement”) with Airspan Networks Inc., a Delaware corporation and a direct wholly-owned subsidiary of the Company (“Seller”), Mimosa Networks, Inc., a Delaware corporation and a direct wholly-owned subsidiary of Seller (“Mimosa”), and Radisys Corporation, an Oregon corporation (“Buyer”), pursuant to which Seller will sell all of the issued and outstanding shares of common stock of Mimosa to Buyer for an aggregate purchase price of approximately $60.0 million in cash (subject to customary adjustments as set forth in the Mimosa Purchase Agreement) on the terms and subject to the conditions set forth in the Mimosa Purchase Agreement (the “Mimosa Sale”). We anticipate that the closing will occur in August 2023.

Global Economic Conditions

We have experienced supply chain disruptions and inflationary impacts across our businesses, driven by the impact of the COVID-19 pandemic, the war in Ukraine and resulting economic sanctions, and general macroeconomic factors. These factors have increased our operating costs. While we are taking actions to respond to the supply chain disruptions, inflationary environment, and global demand dynamics, we may not be able to enact these measures in a timely manner, or the measures may not be sufficient to offset the increase in costs, which could have a material adverse impact on our results of operations.

How We Assess the Performance of Our Business

In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators of the financial condition and operating performance of our business are revenue, cost of revenue, research and development, sales and marketing, general and administrative, interest expense, income taxes and net income. To further help us assess our performance with these key indicators, we use Adjusted EBITDA as a non-GAAP financial measure. We believe Adjusted EBITDA provides useful information to investors and expanded insight to measure our revenue and cost performance as a supplement to our GAAP consolidated financial statements. See the “Non-GAAP Financial Measures” section below for a reconciliation to net income (loss), the most directly comparable GAAP measure.

Revenues

We derive the majority of our revenues from sales of our networking products, with the remaining revenue generated from software licenses and service fees relating to non-recurring engineering, product maintenance contracts and professional services for our products. We sell our products and services to end customers, distributors and resellers. Products and services may be sold separately or in bundled packages.

Our top three customers accounted for 73.8% and 69.6% of revenue for the three months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and 2022, the Company had three customers and two customers, respectively, whose revenue was greater than 10% of the period’s total revenue.

Our sales outside the U.S. and North America accounted for 74.2% and 50.7% of our total revenue in the three months ended June 30, 2023 and 2022, respectively, and 78.3% and 57.9% of our total revenue in the six months ended June 30, 2023 and 2022, respectively. The following table identifies the percentage of our revenue by customer geographic region in the periods identified.

	Three Months Ended June 30,						Six Months Ended June 30,
Geographic Area	2023			2022			2023			2022
United States		26	%		49	%		22	%		42	%
Other North America		-	%		-	%		-	%		1	%
North America		26	%		49	%		22	%		43	%
India		27	%		10	%		30	%		15	%
Japan		34	%		33	%		34	%		34	%
Other Asia		2	%		1	%		4	%		1	%
Asia		63	%		44	%		68	%		50	%
Europe		4	%		4	%		5	%		3	%
Africa and the Middle East		5	%		1	%		3	%		2	%
Latin America and the Caribbean		2	%		2	%		2	%		2	%
Total revenue		100	%		100	%		100	%		100	%

Cost of Revenues

Cost of revenues consists of component and material costs, direct labor costs, warranty costs, royalties, overhead related to manufacture of our products and customer support costs. Our gross margin is affected by changes in our product mix both because our gross margin on software and services is higher than the gross margin on base station related equipment, and because our different product lines generate different margins. In addition, our gross margin is affected by changes in the average selling price of our systems and volume discounts granted to significant customers. The COVID-19 pandemic continues to have an impact with disruptions to our supply chains, which have caused extended component lead times, increased component costs, as well as disruption and increased expenses in logistics. We expect the average selling prices of our existing products to continue to decline and we intend to continue to implement product cost reductions and develop and introduce new products or product enhancements in an effort to maintain or increase our gross margins. Further, we may derive an increasing proportion of our revenue from the sale of our integrated systems through distribution channels. Revenue derived from these sales channels typically carries a lower gross margin than direct sales.

Operating Expenses

Research and Development

Research and development expenses consist primarily of salaries and related costs for personnel and expenses for design, development, testing facilities and equipment depreciation. These expenses also include costs associated with product development efforts, including consulting fees and prototyping costs from initial product concept to manufacture and production as well as sub-contracted development work. We expect to continue to make substantial investments in research and development.

Sales and Marketing

Sales and marketing expenses consist of salaries and related costs for personnel, sales commissions, consulting and agent’s fees and expenses for advertising, travel, technical assistance, trade shows, and promotional and demonstration materials. We expect to continue to incur substantial expenditures related to sales and marketing activities.

General and Administrative

General and administrative expenses consist primarily of salaries and related expenses for our personnel, audit, professional and consulting fees and facilities costs.

Restructuring costs

Restructuring costs consist primarily of employee termination benefits.

Non-Operating Expenses

Interest Expense, Net

Interest expense, net consists primarily of interest associated with the Convertible Notes, two subordinated loan facilities and our senior secured credit facility, which consists of a term loan and delayed draw commitment. Interest on the term loan was determined based on the highest of a LIBOR rate, the commercial lending rate of the collateral agent and the federal funds rate, plus an applicable margin. Interest on the delayed draw commitment was based on the LIBOR rate plus an applicable margin. The LIBOR rates were replaced with SOFR rates pursuant to the May 2023 Fortress Credit Agreement Amendment and the May 2023 Fortress Convertible Note Agreement Amendment.

Loss on Extinguishment of Debt

The senior term loan and convertible debt were amended with the May 2023 Fortress Credit Agreement Amendment and the May 2023 Fortress Convertible Note Agreement Amendment. Due to the increased interest rates and maturity amounts, the modification of terms was accounted for as debt extinguishment and all fees from the prior agreement were expensed as loss on extinguishment of debt in the consolidated statement of operations.

Income Tax Benefit, Net

Our provision for income tax benefit, net includes the expected benefit of all deferred tax assets, including our net operating loss carryforwards. Some of our net operating loss carryforwards will begin to expire in 2025 and continue to expire through 2037. Our income tax benefit, net has been impacted by non-deductible expenses, including equity compensation and research and development amortization.

Net Loss

Net loss is determined by subtracting operating and non-operating expenses from revenues.

Adjusted EBITDA

Adjusted EBITDA is defined as net income before depreciation and amortization, interest expense and income taxes, and also adjusted to add back share-based compensation costs, changes in the fair value of the warrant liability and embedded derivatives and one-time costs related to the Business Combination, as these costs are not considered a part of our core business operations and are not an indicator of ongoing, future company performance. We use Adjusted EBITDA to evaluate our performance, both internally and as compared to our peers, because these measures exclude certain items that may not be indicative of our core operating results, as well as items that can vary widely among companies within our industry. For example, share-based compensation costs can be subject to volatility from changes in the market price per share of our Common Stock or variations in the value and number of shares granted.

Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business because it excludes, among other things, the effects of certain transactions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the jurisdictions in which we operate and capital investments.

We present this non-GAAP financial measure because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe it is helpful in highlighting trends in our operating results by focusing on our core operating results and is useful to evaluate our performance in conjunction with our GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to operating income, net income or earnings per share, as a measure of operating performance, cash flows or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to GAAP measures.

In particular, Adjusted EBITDA is subject to ~~adjustment.~~ certain limitations, including the following:

●

Adjusted EBITDA does not reflect interest expense, or the amounts necessary to service interest or principal payments under the Fortress Credit Agreement;

●

Adjusted EBITDA does not reflect income tax provision (benefit), and because the payment of taxes is part of our operations, tax provision is a necessary element of our costs and ability to operate;

●

Although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any costs of such replacements;

●

Adjusted EBITDA does not reflect the non-cash component of share-based compensation;

●

Adjusted EBITDA does not reflect the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations; and

●

Other companies in our industry may calculate Adjusted EBITDA or similarly titled measures differently than we do, limiting its usefulness as a comparative measure.

We adjust for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only as supplemental information.

Segments

Our business is organized around one reportable segment, the development and supply of broadband wireless products and technologies. This is based on the objectives of the business and how our chief operating decision maker, the Chief Executive Officer, monitors operating performance and allocates resources.

Results of Operations

The ~~units~~following table summarizes key components of our results of operations for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2023			2022			2023			2022
Revenues	$	32,123		$	46,945		$	56,896		$	84,509
Cost of revenues		25,390			28,117			39,816			53,612
Gross profit		6,733			18,828			17,080			30,897

Operating expenses:
Research and development		13,416			16,720			27,607			33,241
Sales and marketing		5,310			9,010			10,992			18,340
General and administrative		5,746			11,089			13,411			22,247
Amortization of intangibles		-			284			189			568
Restructuring costs		3,023			-			3,283			-
Total operating expenses		27,495			37,103			55,482			74,396

Loss from operations		(20,762	)		(18,275	)		(38,402	)		(43,499	)

Interest expense, net		(5,153	)		(4,207	)		(9,687	)		(8,775	)
Loss on extinguishment of debt		(8,281	)		-			(8,281	)		-
Change in fair value of warrant liability and derivatives, net		588			3,479			1,230			3,936
Other income (expense), net		(153	)		(2,126	)		408			(2,632	)

Loss before income taxes		(33,761	)		(21,129	)		(54,732	)		(50,970	)

Income tax benefit, net		154			112			236			215

Net loss	$	(33,607	)	$	(21,017	)	$	(54,496	)	$	(50,755	)

Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022

Revenues

Revenues for the above periods are presented below:

	Three Months Ended June 30,
($ in thousands)	2023		% of Revenue			2022		% of Revenue
Revenues:
Products and software licenses	$	28,855		89.8	%	$	44,028		93.8	%
Maintenance, warranty and services		3,268		10.2	%		2,917		6.2	%
Total revenues	$	32,123		100.0	%	$	46,945		100.0	%

Revenue from products and software licenses of $28.9 million for the three months ended June 30, 2023 decreased by $15.2 million from $44.0 million for the three months ended June 30, 2022. This change was primarily due to decreases in sales of products to three customers in the U.S. of $17.7 million, other customers in the U.S. of $0.6 million, and other regions of $0.6 million. The reductions in revenue were ~~sold~~offset by an increase in sales to one customer in the U.S. of $3.7 million.

Revenue from maintenance, warranty and services of $3.3 million for the three months ended June 30, 2023 increased by $0.3 million from $2.9 million for the three months ended June 30, 2022. This increase was primarily due to an increase in NRE revenue of $0.6 million and service revenue of $0.1 million, offset by a decrease in maintenance revenue of $0.4 million.

Cost of Revenues

Cost of revenues for the above periods are presented below:

	Three Months Ended June 30,
($ in thousands)	2023		% of Revenue			2022		% of Revenue
Cost of revenues:
Products and software licenses	$	23,998		74.7	%	$	26,864		57.2	%
Maintenance, warranty and services		1,392		4.3	%		1,253		2.7	%
Total cost of revenues	$	25,390		79.0	%	$	28,117		59.9	%

Cost of revenues from products and software licenses of $24.0 million for the three months ended June 30, 2023 decreased by $2.9 million from $26.9 million for the three months ended June 30, 2022. This change was primarily due to the decrease in revenue and indirect costs, offset by an inventory impairment charge of $7.2 million. A charge of $5.3 million relates to certain product initiatives that were eliminated or reduced as a result of the headcount reductions in the 2023 Restructuring Program and $1.9 million relates to an accrual for inventory on order for these eliminated or reduced product initiatives.

Cost of revenues from maintenance, warranty and services of $1.4 million for the three months ended June 30, 2023 increased by $0.1 million from $1.3 million for the three months ended June 30, 2022, primarily driven by revenue growth.

Operating Expenses

Operating expenses for the above periods are presented below:

	Three Months Ended June 30,
($ in thousands)	2023		% of Revenue			2022		% of Revenue
Operating expenses:
Research and development	$	13,416		41.8	%	$	16,720		35.6	%
Sales and marketing		5,310		16.5	%		9,010		19.2	%
General and administrative		5,746		17.9	%		11,089		23.6	%
Amortization of intangibles		-		-	%		284		0.6	%
Restructuring costs		3,023		9.4	%		-		-	%
Total operating expenses	$	27,495		85.6	%	$	37,103		79.0	%

Research and development — Research and development expenses were $13.4 million for the three months ended June 30, 2023, a decrease of $3.3 million from $16.7 million for the three months ended June 30, 2022. The decrease was primarily due to decreased headcount-related expenses of $2.6 million, decreased share-based compensation of $0.6 million, and decreased other costs of $0.1 million.

Sales and marketing — Sales and marketing expenses were $5.3 million for the three months ended June 30, 2023, a decrease of $3.7 million from $9.0 million for the three months ended June 30, 2022, primarily due to decreased headcount-related expenses of $2.4 million, decreased share-based compensation of $0.7 million and decreased other costs of $0.6 million.

General and administrative — General and administrative expenses of $5.7 million for the three months ended June 30, 2023 decreased by $5.4 million from $11.1 million for the three months ended June 30, 2022. The decrease was primarily due to decreased share-based compensation of $3.7 million, decreased headcount and related costs of $0.9 million, and decreased other costs of $0.8 million.

Amortization of intangibles — There was no amortization of intangibles for the three months ended June 30, 2023 in comparison to amortization of intangibles of $0.3 million for the three months ended June 30, 2022.

Restructuring costs — Restructuring costs related to employee termination costs of $3.0 million for the three months ended June 30, 2023, compared to no restructuring costs for the three months ended June 30, 2022. We expect to incur further restructuring costs in 2023. The increase is a result of our announced 2023 Restructuring Program.

Non-Operating Expenses

Interest expense, net — Interest expense, net was $5.2 million for the three months ended June 30, 2023, an increase of $1.0 million from $4.2 million for the three months ended June 30, 2022. The increase was due to a higher average debt outstanding and the increase in the base interest rates charged in the three months ended June 30, 2023 compared to the same period in 2022.

Loss on extinguishment of debt — Loss on extinguishment of debt was $8.3 million for the three months ended June 30, 2023, compared with $0 million for the three months ended June 30, 2022. There was a $5.1 million loss on the extinguishment of the senior term loan and $3.2 million loss on the extinguishment of the convertible debt.

Change in fair value of warrant liability and derivatives — Change in fair value of warrant liability and derivatives was a gain of $0.6 million for the three months ended June 30, 2023, a change of $2.8 million from a gain of $3.5 million for the three months ended June 30, 2022.

Other income (expense), net — Other income (expense), net was expense of $0.1 million for the three months ended June 30, 2023, a decrease of $2.0 million from expense of $2.1 million for the three months ended June 30, 2022. The difference was primarily due to $2.0 million in foreign currency losses for the three months ended June 30, 2022.

Income tax benefit, net — Income tax benefit, net was a benefit of $0.2 million and a benefit of $0.1 million for the three months ended June 30, 2023 and 2022, respectively.

Net Loss

We had a net loss of $33.6 million for the three months ended June 30, 2023 compared to a net loss of $21.0 million for the three months ended June 30, 2022, a change of $12.6 million due to the same factors described above.

Adjusted EBITDA

Adjusted EBITDA for the three months ended June 30, 2023 was a loss of $15.2 million, representing a change of $2.9 million from a loss of $12.3 million for the three months ended June 30, 2022. The increase in Adjusted EBITDA was primarily due to the increase in net loss discussed above and certain higher adjusting items detailed in the table below.

The following table presents the reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA:

	Three Months Ended June 30,
($ in thousands)	2023			2022
Net loss	$	(33,607	)	$	(21,017	)

Adjusted for:
Interest expense, net		5,153			4,207
Income tax (benefit) expense, net		(154	)		(112	)
Depreciation and amortization		720			1,154
EBITDA		(27,888	)		(15,768	)
Share-based compensation expense		1,998			6,972
Change in fair value of warrant liability and derivatives		(588	)		(3,479
Loss on extinguishment of debt		8,281			-
Restructuring costs		3,023			-
Adjusted EBITDA	$	(15,174	)	$	(12,275	)

Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Revenues

Revenues for the above periods are presented below:

	Six Months Ended June 30,
($ in thousands)	2023		% of Revenue			2022		% of Revenue
Revenues:
Products and software licenses	$	49,788		87.5	%	$	77,604		91.8	%
Maintenance, warranty and services		7,108		12.5	%		6,905		8.2	%
Total revenues	$	56,896		100.0	%	$	84,509		100.0	%

Revenue from products and software licenses of $49.8 million for the six months ended June 30, 2022 decreased by $27.8 million from $77.6 million for the six months ended June 30, 2022. This change was primarily due to decreases in sales of products to three customers in the U.S. of $25.1 million, other customers in the U.S. of $1.4 million, and other regions of $5.0 million. The reductions in revenue were offset by an increase in sales to one customer in the U.S. of $3.7 million.

Revenue from maintenance, warranty and services of $7.1 million for the six months ended June 30, 2023 increased by $0.2 million from $6.9 million for the six months ended June 30, 2022. This increase was primarily due to an increase in NRE revenue of $0.2 million.

Cost of Revenues

Cost of revenues for the above periods are presented below:

	Six Months Ended June 30,
($ in thousands)	2023		% of Revenue			2022		% of Revenue
Cost of revenues:
Products and software licenses	$	37,292		93.7	%	$	51,337		60.7	%
Maintenance, warranty and services		2,524		4.4	%		2,275		2.7	%
Total cost of revenues	$	39,816		98.1	%	$	53,612		63.4	%

Cost of revenues from products and software licenses of $37.3 million for the six months ended June 30, 2023 decreased by $14.0 million from $51.3 million for the six months ended June 30, 2022. This change was primarily due to the decrease in revenue and indirect costs, offset by an inventory impairment charge of $7.2 million. A charge of $5.3 million relates to certain product initiatives that were eliminated or reduced as a result of the headcount reductions in the 2023 Restructuring Program and $1.9 million relates to an accrual for inventory on order for these eliminated or reduced product initiatives.

Cost of revenues from maintenance, warranty and services of $2.5 million for the six months ended June 30, 2023 increased by $0.2 million from $2.3 million for the six months ended June 30, 2022.

Operating Expenses

Operating expenses for the above periods are presented below:

	Six Months Ended June 30,
($ in thousands)	2023		% of Revenue			2022		% of Revenue
Operating expenses:
Research and development	$	27,607		48.5	%	$	33,241		39.3	%
Sales and marketing		10,992		19.3	%		18,340		21.7	%
General and administrative		13,411		23.6	%		22,247		26.3	%
Amortization of intangibles		189		0.3	%		568		0.7	%
Restructuring costs		3,283		5.8	%		-		-	%
Total operating expenses	$	55,482		97.5	%	$	74,396		88.0	%

Research and development — Research and development expenses were $27.6 million for the six months ended June 30, 2023, a decrease of $5.6 million from $33.2 million for the six months ended June 30, 2022. The decrease was primarily due to decreased headcount expenses of $4.9 million and decreased share-based compensation of $1.0 million, offset by an increase in other costs of $0.3 million.

Sales and marketing — Sales and marketing expenses were $11.0 million for the six months ended June 30, 2023, a decrease of $7.3 million from $18.3 million for the six months ended June 30, 2022. The decrease was the result of decreased headcount related costs of $4.3 million, decreased other costs of $1.6 million, and decreased share-based compensation of $1.4 million.

General and administrative — General and administrative expenses were $13.4 million for the six months ended June 30, 2023, a decrease of $8.8 million from $22.2 million for the six months ended June 30, 2022. The decrease was primarily due to a decrease of $7.2 million in share-based compensation, decreased headcount related costs of $1.4 million, and decreased other costs of $0.3 million.

Amortization of intangibles — Amortization of intangibles of $0.2 million was lower for the six months ended June 30, 2023 in comparison to $0.6 million the six months ended June 30, 2022.

Restructuring costs — Restructuring costs related to employee termination costs of $3.3 million for the six months ended June 30, 2023 increased as there were no restructuring costs for the six months ended June 30, 2022. We expect to incur further restructuring costs in 2023. The increase is a result of our announced 2023 Restructuring Program.

Non-Operating Expenses

Interest expense, net — Interest expense, net was $9.7 million for the six months ended June 30, 2023, an increase of $0.9 million from $8.8 million for the six months ended June 30, 2022. The increase was due to a higher average debt outstanding and the increase in the base interest rates charged in the six months ended June 30, 2023 than the same period in 2022.

Loss on extinguishment of debt — Loss on extinguishment of debt was $8.3 million for the six months ended June 30, 2023, compared with $0 million for the six months ended June 30, 2022. There was a $5.1 million loss on the extinguishment of the senior term loan and $3.2 million loss on the extinguishment of the convertible debt.

Change in fair value of warrant liability and derivatives, net — Change in fair value of warrant liability and derivatives, net was a gain of $1.2 million for the six months ended June 30, 2023, a change of $2.7 million from a gain of $3.9 million for the six months ended June 30, 2022.

Other income (expense), net — Other income (expense), net was income of $0.4 million for the six months ended June 30, 2023, a difference of $3.0 million an expense of $2.6 million for the six months ended June 30, 2022. The difference was primarily due to $0.5 million in foreign currency gains for the six months ended June 30, 2023 compared to $2.4 million in foreign currency losses for the six months ended June 30, 2022.

Income tax benefit, net — Income tax benefit, net was a benefit of $0.2 million for both of the six months ended June 30, 2023 and 2022, respectively.

Net Loss

We had a net loss of $54.5 million for the six months ended June 30, 2022 compared to a net loss of $50.8 million for the six months ended June 30, 2022, an increase of $3.7 million due to the same factors described above.

Adjusted EBITDA

Adjusted EBITDA for the six months ended June 30, 2023 was a loss of $29.0 million, representing a change of $1.3 million from a loss of $30.3 million for the six months ended June 30, 2022. The increase in Adjusted EBITDA was primarily due to the increase in net loss discussed above and certain higher adjusting items detailed in the table below.

The following table presents the reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA:

	Six Months Ended June 30,
($ in thousands)	2023			2022
Net loss	$	(54,496	)	$	(50,755	)

Adjusted for:
Interest expense, net		9,687			8,775
Income tax (benefit) expense, net		(236	)		(215	)
Depreciation and amortization		1,772			2,275
EBITDA		(43,273	)		(39,920	)
Share-based compensation expense		3,937			13,536
Change in fair value of warrant liability and derivatives		(1,230	)		(3,936	)
Loss on extinguishment of debt		8,281			-
Restructuring costs		3,283			-
Adjusted EBITDA	$	(29,002	)	$	(30,320	)

Liquidity and Capital Resources

The March 2023 failures of Silicon Valley Bank and Signature Bank, and subsequent bank failures in 2023, created significant market disruption and uncertainty for those who bank with those institutions. These failures have raised significant concern regarding the stability of the banking system in the United States. While we do not hold our cash at any of these banks, if the banks and financial institutions at which we hold our cash enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, our ability to access our cash and cash equivalents may be threatened and such events could have a material adverse effect on our business and financial condition.

To date, our principal sources of liquidity have been our cash and cash equivalents and cash generated from operations, proceeds from the issuance of long-term debt, preferred and common stock, and the sale of certain receivables. Our capital requirements depend on a number of factors, including sales, the extent of our spending on research and development, expansion of sales and marketing activities and market adoption of our products and services.

We had $75.0 million of current assets and $78.0 million of current liabilities as of June 30, 2023. During the six months ended June 30, 2023, we used $12.1 million in cash flows from operating activities, primarily from the net loss offset by non-cash adjustments. We are investing heavily in 5G research and development and expect to use cash from operations during the remainder of 2023 and through the first half of 2024 to fund research and development activities. Cash on hand and the available borrowing capacity under the Fortress Credit Agreement may not allow us to meet our forecasted cash requirements.

In order to address the need to satisfy our continuing obligations and realize our long-term strategy, management has taken several steps and is considering additional actions to improve our operating and financial results, including the following:

●

focusing our efforts to increase sales in additional geographic markets;

●

continuing to develop 5G product offerings that will expand the market for our products;

●

focusing our efforts to improve days sales outstanding to provide additional liquidity

●

selling the Mimosa business for approximately $60.0 million; and

●

continuing to implement cost reduction initiatives to reduce non-strategic costs in operations and expand our labor force in lower cost geographies, with headcount reductions in higher cost geographies.

There can be no assurance that the above actions will be successful. Without additional financing or capital, the Company’s current cash balance would be insufficient to satisfy repayment demands from its lenders if the lenders elect to declare the senior term loan and the senior secured convertible notes due prior to the maturity date. There is no assurance that the new or renegotiated financing will be available, or that if available, will have satisfactory terms. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

Days sales outstanding (“DSO”) is a measurement of the time it takes to collect receivables. DSO is calculated by dividing accounts receivable, net as of the end of the quarter by the average daily revenue for the quarter. Average daily revenue for the quarter is calculated by dividing the quarterly revenue by ninety days. All customer accounts are actively managed, and no losses in excess of amounts reserved are currently expected. DSO can fluctuate due to the timing and nature of contracts, as well as the payment terms of individual customers. DSO was 94 days and 101 days as of June 30, 2023 and December 31, 2022, respectively.

On August 6, 2015, we issued Golden Wayford Limited a $10.0 million subordinated Convertible Note Promissory Note (the “Golden Wayford Note”) pursuant to a subordinated convertible note purchase agreement, also dated August 6, 2015. The Golden Wayford Note, in the amount of $9.0 million plus interest, matured on June 30, 2020. We were not able to agree to an ~~offering price~~extended maturity date and the Golden Wayford Note remained outstanding as of ~~$10.00 per unit, generating gross proceeds~~June 30, 2023 and in default under the terms of ~~$100,000,000. Simultaneously~~the arrangement. We were granted a limited waiver under the Fortress Credit Agreement which waives each actual and prospective default and event of default existing under the Fortress Credit Agreement directly as a result of the non-payment of the Golden Wayford Note for so long as the Golden Wayford Note remains in effect. The waiver is limited to the actual and prospective defaults under the Fortress Credit Agreement as they existed on December 30, 2020 and not to any other change in facts or circumstances occurring after December 30, 2020. The waiver does not restrict Fortress from exercising any rights or remedies they may have with respect to any other default or event of default under the Fortress Credit Agreement or the related loan documents.

On December 30, 2020, we and certain of our subsidiaries as guarantors, entered into the Fortress Credit Agreement with Fortress. On August 13, 2021, the Company, Legacy Airspan and certain of our subsidiaries who are party to the Fortress Credit Agreement entered into the August 2021 Fortress Amendment to, among other things, add the Company as a guarantor, recognize and account for the Business Combination, recognize and account for the Convertible Notes and provide updated procedures for replacement of LIBOR. On March 29, 2022, the Company, Legacy Airspan and certain of our subsidiaries who are party to the Fortress Credit Agreement entered into the March 2022 Fortress Credit Amendment to, among other things, amend the financial covenants included in the Fortress Credit Agreement. On May 18, 2023, the Company, Legacy Airspan and certain of the Company’s subsidiaries who are party to the Fortress Credit Agreement entered into the May 2023 Credit Agreement Amendment relating to the Fortress Credit Agreement with Fortress pursuant to which the parties agreed to, among other things, (i) certain consents related to the Company’s previously disclosed divestiture of Mimosa, (ii) waive certain existing events of default under the Fortress Credit Agreement in the limited manner set forth therein, (iii) terminate the existing delayed draw term loan commitments under the Fortress Credit Agreement and establish new delayed draw term loan commitments in the aggregate amount of $25 million, (iv) modify the interest rates applicable to certain loans under the Fortress Credit Agreement, (v) provide for the issuance of 5,912,040 warrants to purchase shares of the Company’s common stock, (vi) amend certain financial covenants and (vii) provide for additional fees related to the Fortress Credit Agreement, and (viii) amend and restate the Fortress Credit Agreement. As of June 30, 2023, we were in compliance with all applicable covenants under the Fortress Credit Agreement. See Note 10 of the notes to the unaudited condensed consolidated financial statements included in this Quarterly Report for further discussion on this agreement.

On August 13, 2021, we closed the business combination transaction (the “Business Combination”) pursuant to the business combination agreement (the “Business Combination Agreement”), dated March 8, 2021, by and among the Company, Artemis Merger Sub Corp., a Delaware corporation and wholly-owned direct subsidiary of the Company, and Airspan Networks Inc. (prior to the Business Combination, “Legacy Airspan”). In connection with the closing of the ~~IPO,~~Business Combination, we ~~consummated~~issued 7,500,000 shares of Common Stock to certain investors that entered into subscription agreements concurrent with the ~~sale of 500,000 private units~~Business Combination, at a price of $10.00 per ~~private unit~~share, for aggregate consideration of $75.0 million, and $50.0 million in aggregate principal amount of Convertible Notes. On May 18, 2023, the Company and certain of its subsidiaries who are party to the Fortress Convertible Note Agreement entered into the May 2023 Fortress Convertible Note Agreement Amendment to, among other things, (i) provide for certain consents relating to the Company’s previously disclosed divestiture of Mimosa, (ii) waive certain existing events of default under the Fortress Convertible Note Agreement in the limited manner set forth therein, (iii) imposed a ~~private placement~~$2.5 million fee, which was capitalized to ~~New Beginnings Sponsor, LLC, our sponsor.~~

~~On November 9, 2020,~~increase the ~~underwriters exercised in part~~aggregate principal amount of the ~~underwriters’ option~~Convertible Notes to $52.5 million, (iv) increase the interest rate applicable to the Convertible Notes to 10.00%, and ~~purchased 1,000,000~~(v) provide for additional ~~units at $10.00 per unit, generating gross proceeds~~fees related to the Fortress Convertible Note Purchase Agreement and the Convertible Notes. On May 28, 2023, the Company reissued $52.5 million aggregate principal amount of ~~$10,000,000.~~Convertible Notes.

~~On November 12, 2020,~~As of June 30, 2023, we were in compliance with all applicable covenants under the ~~underwriters fully exercised the over-allotment option to purchase the remaining 500,000 over-allotment units, generating an aggregate of gross proceeds of $15,000,000.~~

~~Simultaneously with the closing~~Fortress Convertible Note Purchase Agreement. See Note 11 of the ~~exercises~~notes to the unaudited condensed consolidated financial statements included in this Quarterly Report for further discussion on this agreement.

As of June 30, 2023, we had commitments with our main subcontract manufacturers under various purchase orders and forecast arrangements of $73.5 million, of which $55.6 million relates to Mimosa. The majority of the ~~overallotment option, we completed~~commitments have expected delivery dates during the ~~private sales~~remainder of ~~an aggregate of 45,000 private units~~2023.

Cash Flows

The following table summarizes the changes to our ~~sponsor, at a purchase price of $10.00 per private unit, generating gross proceeds of $450,000.~~

Upon closing of the IPO, the private placements, and the sale of the over-allotment units, a total of $116,150,000 ($10.10 per unit) was placed in a U.S.-based trust account, with Continental Stock Transfer & Trust Company acting as trustee.

~~As indicated in the accompanying financial statements, as of September 30, 2020 we held~~ cash of $45,267 and deferred offering costs of $79,733. Further, we expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to raise capital or to complete our initial business combination will be successful.

~~Results of Operations~~

~~We have neither engaged in any operations nor generated any revenues to date. The only activities through September 30, 2020 were organizational activities, those necessary to prepare~~flows for the ~~IPO, described above, and, after our IPO, identifying~~periods presented:

	For the Six Months Ended June 30,
(in thousands)	2023			2022
Statement of Cash Flows Data:
Net cash used in operating activities	$	(12,172	)	$	(22,494	)
Net cash used in investing activities		(1,122	)		(1,632	)
Net cash provided by (used in) financing activities		16,144			(2,640	)
Net increase (decrease) in cash, cash equivalents and restricted cash		2,850			(26,766	)
Cash, cash equivalents and restricted cash, beginning of period		7,287			63,122
Cash, cash equivalents and restricted cash, end of period	$	10,137		$	36,356

Operating Activities

Net cash used in operating activities was $12.2 million for the six months ended June 30, 2023, a ~~target company~~decrease of $10.3 million from net cash used in operating activities of $22.5 million for ~~an initial business combination. We do not expect to generate any operating revenues until after~~ the ~~completion of our initial business combination. We will generate non-operating income in the form of interest income on marketable securities held in the trust account. We will incur expenses as~~six months ended June 30, 2022. The decrease is a result of ~~being~~$3.7 million less from results of our operations, offset by $6.2 million more generated from working capital and $7.8 million increase in non-cash adjustments.

Investing Activities

Net cash used in investing activities was $1.1 million for the six months ended June 30, 2023, a ~~public company (for legal, financial reporting, accounting~~decrease of $0.5 million from $1.6 million for the six months ended June 30, 2022 due to fewer purchases of property and ~~auditing compliance), as well as~~equipment.

Financing Activities

Net cash provided by financing activities was $16.1 million for ~~due diligence expenses.~~

~~For~~ the ~~period from August 20, 2020 (inception) through September~~six months ended June 30, ~~2020, we had a net loss~~2023 and was related to $20 million of ~~$461 which consisted~~borrowings under the senior term loan in the second quarter of ~~formation costs.~~

~~Liquidity~~2023, offset by the payment of debt issuance costs of $1.9 million and ~~Capital Resources~~

~~As of September 30, 2020, we had cash of $45,267. Until the consummation~~repayment of the ~~IPO, our only source~~senior term loan of ~~liquidity~~$1.8 million.

Net cash used in financing activities was ~~an initial purchase of common stock by our sponsor~~$2.6 million for the six months ended June 30, 2022 and ~~loans from our sponsor.~~

~~Subsequent~~was related to the ~~quarterly period covered by this Quarterly Report, on November 3, 2020, we consummated~~repayment of borrowings under the IPO of 10,000,000 units, at $10.00 per unit, generating gross proceeds of $100,000,000. Simultaneously with the closing of the IPO, we consummated the sale of an aggregate of 500,000 private units to our sponsor, at a price of $10.00 per unit, generating gross proceeds to us of $5,000,000.senior term loan.

~~On November 9, 2020, the IPO underwriters exercised in their over-allotment option~~Critical Accounting Estimates

The discussion and purchased 1,000,000 additional units at $10.00 per unit, generating gross proceeds of $10,000,000. On November 12, 2020, the underwriters fully exercised the over-allotment option to purchase the remaining 500,000 over-allotment units, generating an aggregate of gross proceeds of $15,000,000. Simultaneously with the closing of the exercise of the overallotment options, we completed the private sales of an aggregate of 45,000 private units to our sponsor, at a purchase price of $10.00 per private unit, generating gross proceeds of $450,000.

Upon closing of the IPO, the private placements, and the sale of the over-allotment units, a total of $116,150,000 ($10.10 per unit) was placed in the trust account, with Continental Stock Transfer & Trust Company acting as trustee.

We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account (less deferred underwriting commissions and income taxes payable), to complete our business combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

We intend to use the funds held outside the trust account primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete an initial business combination.

~~In order to fund working capital deficiencies or finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate~~analysis of our ~~sponsor or certain~~financial condition and results of operations is based upon our officers and directors may, but are not obligated to, provide non-interest-bearing loans to us as may be required. If we complete our initial business combination, we would repay such loaned amounts. In the event that our initial business combination does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts, but no proceeds from our trust account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into units, at a price of $10.00 per unit at the option of the lender, upon consummation of our initial business combination. The units would be identical to the private units.

~~We do not believe we will need to raise additional funds following the IPO~~unaudited condensed consolidated financial statements, which have been prepared in order to meet the expenditures required for operating our business. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial business combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our initial business combination. Moreover, we may need to obtain additional financing either to complete our initial business combination or because we become obligated to redeem a significant number of our public shares upon completion of our initial business combination, in which case we may issue additional securities or incur debt in connectionaccordance with such business combination. In addition, we intend to target businesses larger than we could acquire with the net proceeds of the IPO and the sale of the placement units, and may as a result be required to seek additional financing to complete such proposed initial business combination. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion of our initial business combination. If we are unable to complete our initial business combination because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the trust account. In addition, following our initial business combination, if cash on hand is insufficient, we may need to obtain additional financing in order to meet our obligations.

~~Critical Accounting Policies~~

GAAP. The preparation of ~~condensed~~these financial statements ~~and related disclosures in conformity with accounting principles generally accepted in the United States of America~~ requires ~~management~~us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent ~~assets and~~ liabilities at the date of the financial statements and ~~income~~the reported amounts of revenues and expenses during the ~~periods reported.~~reporting period. On an on-going basis, we evaluate the effectiveness of our estimates and judgments, including those related to revenue recognition, allowance for doubtful accounts, intangible assets, net, impairment of long-lived assets, share-based compensation and income taxes.

We base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results ~~could materially~~may differ from these estimates under different assumptions or conditions and may change as future events occur.

Critical accounting policies are those ~~estimates. We have not identified any~~policies that management believes are very important to the portrayal of our financial position and results of operations, and that require management to make estimates that are difficult, subjective or otherwise complex. Our critical accounting ~~policies.~~policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2022, for which there were no material changes during the six months ended June 30, 2023, included the following:

	●	Goodwill;

	●	Share-based compensation;

	●	Revenue recognition; and

	●	Convertible Notes.

Recent Accounting ~~Standards~~Pronouncements

~~Management does not believe~~Refer to Note 2 of our unaudited condensed consolidated financial statements included in this Quarterly Report for further information on recent accounting pronouncements.

JOBS Act

The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) contains provisions that, ~~any recently issued, but not yet~~among other things, relax certain reporting requirements for qualifying public companies. We qualify as an “emerging growth company” and under the JOBS Act are allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, ~~if currently adopted, would~~and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, the financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Additionally, we have ~~a material effect~~chosen to rely on certain reduced reporting requirements applicable to emerging growth companies, including, among other things, that we are not required to (i) provide an auditor’s attestation report on our ~~condensed~~system of internal controls over financial ~~statements.~~reporting pursuant to Section 404 of the Sarbanes-Oxley Act, (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis) and (iv) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive Officer’s compensation to median employee compensation. These exemptions will apply for a period of five years following the completion of NBA’s initial public offering or until we are no longer an “emerging growth company,” whichever is earlier.

~~Off-Balance Sheet Arrangements; Commitments and Contractual Obligations~~

AsWe will remain an “emerging growth company” under the JOBS Act until the earliest of: (i) the last day of ~~September 30, 2020,~~the fiscal year (a) following the fifth anniversary of the closing of NBA’s initial public offering, (b) in which we ~~did not~~ have ~~any off-balance sheet arrangements~~total annual gross revenue of at least $1.235 billion, or (c) when we are deemed to be a “large accelerated filer” under the Exchange Act, which would occur if the market value of our common equity held by non-affiliates exceeds $700.0 million as ~~defined~~of the last business day of our most recently completed second fiscal quarter; or (ii) the date on which we have issued more than $1.0 billion in ~~Item 303(a) (4)(ii) of Regulation S-K and did not have any commitments or contractual obligations.~~ non-convertible debt securities during the prior three-year period.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

~~As of September 30, 2020, we were not subject to any market or interest rate risk. Following the consummation of our IPO, the net proceeds~~We are a smaller reporting company as defined in Rule 12b-2 of the ~~IPO, including amounts in~~Exchange Act and are not required to provide the Trust Account, may be invested in U.S. government treasury bills, with a maturity of 185 days or less or in certain money market funds that invest only in direct U.S. government treasury obligations. Due to the short-term nature of these investments, we believe there will be no associated material exposure to interest rate risk. information under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

~~Under the supervision and with the participation of our management, including our chief executive officer, we conducted an evaluation of the effectiveness of our disclosure~~Disclosure controls and procedures as of the end of the fiscal quarter ended September 30, 2020, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our chief executive officer (who serves as our principal executive officer and principal financial officer) has concluded that during the period covered by this report, our disclosureare controls and other procedures ~~were effective.~~

~~Disclosure controls and procedures~~that are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act), as of June 30, 2023. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of that date, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There was no change in our internal ~~control~~controls over financial reporting that occurred during the quarter ended ~~of September~~June 30, ~~2020 covered by this Quarterly Report on Form 10-Q~~2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

~~None.~~Reference is made to Note 13 – Commitments and Contingencies in the notes to the unaudited condensed consolidated financial statements contained elsewhere in this Quarterly Report for information regarding certain litigation to which we are a party.

Item 1A. Risk Factors

~~Factors that could cause our actual results~~Our failure to ~~differ materially from those in this Quarterly Report are any~~meet the continued listing requirements of the ~~risks described in our final prospectus for our Initial Public Offering filed with the SEC on November 2, 2020. Any of these factors~~NYSE American LLC (the “NYSE American”) could result in a ~~significant~~delisting of our common stock.

If we fail to satisfy the continued listing requirements of the NYSE American, such as the corporate governance requirements or ~~material adverse~~the minimum closing bid price requirement, the exchange may take steps to delist our common stock. Such a delisting would likely have a negative effect on the price of our ~~results~~common stock and would impair your ability to sell or purchase our common stock when you wish to do so. In the event of a delisting notification, we anticipate that we would take actions to restore our compliance with applicable exchange requirements, such as stabilize our market price, improve the liquidity of our common stock, prevent our common stock from dropping below such exchange’s minimum bid price requirement, or prevent future non-compliance with such exchange’s listing requirements.

On June 9, 2023, the Company received a letter (the “Letter”) from the NYSE American stating that we are not in compliance with the continued listing standards set forth in Sections 1003(a)(i) and (ii) of the NYSE American Company Guide (the “Company Guide”). Section 1003(a)(i) requires a listed company to have stockholders’ equity of $2 million or more if the listed company has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years. Section 1003(a)(ii) requires a listed company to have stockholders’ equity of $4 million or more if the listed company has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years. The Company reported a stockholders’ deficit of $99.9 million as of March 31, 2023, and has had losses from continuing operations and/or net losses in each of its three most recent fiscal years.

However, Section 1003(a) states that the NYSE American will not normally consider suspending dealings in, or removing from the list, the securities of a listed company which is below standards (i) and (ii) of Section 1003(a) if the listed company is in compliance with the following two standards: (1) total value of market capitalization of at least $50 million; or total assets and revenue of $50 million each in its last fiscal year, or in two of its last three fiscal years; and (2) the listed company has at least 1.1 million shares publicly held, a market value of publicly held shares of at least $15 million and 400 round lot shareholders. As of June 9, 2023, the Company was in compliance with the first standard because it had total assets and total revenue of at least $50 million in its last fiscal year and was in compliance with the second standard, except that the current market value of publicly held shares was below $15 million.

Accordingly, the Letter stated that the Company must submit a plan of compliance (the “Plan”) by July 9, 2023 addressing how it intends to regain compliance with Sections 1003(a)(i) and (ii) of the Company Guide by December 9, 2024. If the Plan is not permitted or the Plan is not accepted, delisting proceedings will commence. In response to the Letter, the Company submitted the Plan to NYSE American, pursuant to which the Company also intends to regain compliance with Section 1003(f)(v) of the Company Guide.

The Company’s stock will continue to be listed on the NYSE American while the Company evaluates its various alternatives. The Company’s receipt of such notification from the NYSE American does not affect the Company’s business, operations or ~~financial condition. Additional risk factors not presently known to us or~~reporting requirements with the U.S. Securities and Exchange Commission.

On July 10, 2023, the Company received written notice (the “Notice”) from the NYSE American stating that we ~~currently deem immaterial may also impair our business or results of operations. As~~are not in compliance with the continued listing standard set forth in Section 1003(f)(v) of the ~~date~~Company Guide because the Company’s common stock was selling for a substantial period of ~~this Quarterly Report, there have been~~time at a low price per share, which NYSE American determined to be a 30-trading day average of less than $0.20 per share. The Notice stated that the Company’s continued listing is predicated on it effecting a reverse stock split of its common stock or otherwise demonstrating sustained price improvement within a reasonable period of time, which NYSE American has determined to be no ~~material changes~~later than January 10, 2024.

However, NYSE American may take an accelerated delisting action that would pre-empt the cure period in the event that the common stock trades at a level viewed to be abnormally low.

As previously disclosed, on June 9, 2023, the Company received a letter (the “Letter”) from the NYSE American stating that it is not in compliance with the continued listing standards set forth in Sections 1003(a)(i) and (ii) of the Company Guide and requesting that the Company submit a plan of compliance (the “Plan”) addressing how it intends to regain compliance. In response to the ~~risk factors disclosed~~Letter, the Company submitted the Plan to NYSE American, pursuant to which the Company also intends to regain compliance with Section 1003(f)(v) of the Company Guide.

The Company’s common stock will continue to be listed on the NYSE American while the Company evaluates its various alternatives. The Company will also continue to be included in ~~our final prospectus for our Initial Public Offering filed~~the list of NYSE American noncompliant issuers, and the below compliance (“.BC”) indicator will continue to be disseminated with the ~~SEC on November 2, 2020, except we may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.~~Company’s ticker symbol(s).

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~Unregistered Sales of Equity Securities~~Not applicable.

Simultaneously with the consummation of the IPO and the full exercise of the over-allotment, we consummated a private placement of an aggregate of 500,000 private units (the “Private Units”) at a price of $10.00 per Private Unit in a private placement to the sponsor, generating total proceeds of $5,000,000. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

The Private Units are identical to the public units sold in the IPO (the “Units”), except the placement units and their component securities will not be transferable, assignable or salable until 30 days after the consummation of our initial business combination (subject to limited exceptions) and the warrants included in the Private Units will be non-redeemable so long as they are held by the sponsor or its permitted transferees.

On November 9, 2020, simultaneously with the closing of the first exercise in part of the underwriters’ over-allotment option, the Company completed the private sale of an aggregate of 30,000 Private Units to the sponsor, at a purchase price of $10.00 per Private Units, generating gross proceeds of $300,000. On November 12, 2020, simultaneously with the closing of the second exercise in part of the underwriters’ over-allotment option, the Company completed the private sale of an aggregate of 15,000 Private Units to the sponsor, at a purchase price of $10.00 per Private Units, generating gross proceeds of $150,000.

~~Use of Proceeds~~

On November 3, 2020, we consummated our IPO of 10,000,000 Units, at an offering price of $10.00 per Unit, generating total gross proceeds of $100,000,000. Ladenburg Thalmann & Co. Inc. and EarlyBirdCapital, Inc. served as joint book-running managers. The securities sold in the offering were registered under the Securities Act on a registration statement on Form S-1 (No. 333-248944). The SEC declared the registration statement effective on October 29, 2020.

On November 9, 2020, the underwriters partially exercised the over-allotment option to purchase 1,000,000 Units (the “Over-Allotment Units”), and on November 12, 2020, the underwriters fully exercised the over-allotment option to purchase the remaining 500,000 Over-Allotment Units, generating an aggregate of gross proceeds of $15,000,000, and incurred $300,000 in deferred underwriting fees

Of the gross proceeds received from the IPO (including the Over-Allotment Units) and the private placements of Private Units, $116,150,000 was placed in the trust account, with Continental Stock Transfer & Trust Company acting as trustee.

We paid a total of $2,300,000 in underwriting discounts and approximately $406,654 for other offering costs and expenses related to the IPO. In addition, the underwriters agreed to defer $4,025,000 in underwriting discounts and commissions.

Item 3. Defaults Upon Senior Securities

~~None.~~Not applicable.

Item 4. Mine Safety ~~Disclosures~~Disclosure

~~None.~~Not applicable.

Item 5. Other ~~Information~~Information.

Not applicable.

~~None.~~

Item 6. Exhibits.

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

Exhibit Number		Description
~~1.1~~2.1		~~Underwriting~~Stock Purchase Agreement, dated ~~October 29, 2020, between~~as of March 8, 2023, by and among Airspan Networks Holdings Inc, Airspan Networks Inc., Mimosa Networks, Inc., and Radisys Corporation (incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K filed with the ~~Company and Ladenburg Thalmann & Co. Inc. and EarlyBirdCapital, Inc., as representatives of the underwriters. (1)~~SEC on March 9, 2023)
~~3.1~~
2.2		Amendment No. 1 to Stock Purchase Agreement, dated as of July 22, 2023 (incorporated by reference to Exhibit 2.2 to our Current Report on Form 8-K filed with the SEC on July 25, 2023).

10.1		Limited Waiver and Consent, Second Amendment and Restatement of Credit Agreement and Reaffirmation of Loan Documents, dated May 18, 2023, among Airspan Networks Inc., Airspan Networks Holdings Inc., certain of its subsidiaries, as guarantors, the lenders party thereto and DBFIP ANI LLC, as administrative agent and collateral agent (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K/A filed with the SEC on May 26, 2023)

10.2		Form of Second Amended and Restated ~~Certificate of Incorporation of~~Senior Secured Convertible Note (incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K/A filed with the ~~Company. (1)~~SEC on May 26, 2023)
~~4.1~~
10.3		Limited Waiver and Consent, Third Amendment to Senior Secured Convertible Note Purchase and Guarantee Agreement and Reaffirmation of Note Documents, dated May 18, 2023, among Airspan Networks Inc., Airspan Networks Holdings Inc., certain of its subsidiaries, as guarantors, the purchasers party thereto and DBFIP ANI LLC, as agent, collateral agent and trustee (incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K/A filed with the SEC on May 26, 2023)

10.4		Specimen Public Warrant (incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K/A filed with the SEC on May 26, 2023)

10.5		Amended Employment Agreement, dated ~~October 29, 2020,~~May 18, 2023, between Eric Stonestrom and Airspan Networks Holdings Inc. (incorporated by reference to Exhibit 10.5 to our Current Report on Form 8-K/A filed with the ~~Company and Continental Stock Transfer & Trust Company. (1)~~SEC on May 26, 2023)
~~10.1~~
10.6		Letter Agreement, dated ~~October 29, 2020, between~~June 30, 2023, among DBFIP ANI LLC, Airspan Networks Holdings Inc. (f/k/a New Beginnings Acquisition Corp.), Airspan Networks Inc., Airspan IP Holdco LLC, Airspan Networks (SG) Inc., Mimosa Networks, Inc., Mimosa Networks International, LLC, Airspan Communications Limited, Airspan Networks Ltd. and Airspan Japan KK (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the ~~Company, its officers, its directors and the Sponsor. (1)~~SEC on July 7, 2023)
~~10.2~~		~~Investment Management Trust Agreement, dated October 29, 2020, between the Company and Continental Stock Transfer & Trust Company. (1)~~
~~10.3~~31.1		~~Placement Unit Subscription Agreement between the Registrant and New Beginnings Sponsor, LLC. (1)~~
~~10.4~~		~~Registration Rights Agreement, October 29, 2020, among the Company and certain securityholders. (1)~~
~~10.5~~		~~Form of Indemnification Agreement. (1)~~
31.1*		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the ~~Sarbanes Oxley~~Sarbanes-Oxley Act of 2002.
32.1*
32.1*		Certification of Principal Executive Officer ~~and~~pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the ~~Sarbanes Oxley~~Sarbanes-Oxley Act of 2002.

101.INS
~~101.INS~~		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101)

These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are not deemed ~~not~~to be filed for purposes of Section 18 of the ~~Securities~~ Exchange Act, ~~of 1934, as amended,~~ nor shall they be deemed incorporated by reference in any filing under the Securities Act, ~~of 1933,~~ except as shall be expressly set forth by specific reference in such filing.

~~(1)~~

~~Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed on November 2, 2020, and incorporated herein by reference.~~

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on ~~this 14~~^th ~~day of December 2020.~~August 9, 2023.

	~~NEW BEGINNINGS ACQUISITION CORP.~~AIRSPAN NETWORKS HOLDINGS INC.

	By:	/s/ ~~Michael S. Liebowitz~~Glenn Laxdal
	Name:	~~Michael S. Liebowitz~~Glenn Laxdal
	Title:	Chief Executive Officer (Principal Executive Officer)

	By:	/s/ David Brant
	Name:	David Brant
	Title:	Senior Vice President and Chief Financial Officer ~~and~~ (Principal Financial and Accounting ~~and Financial~~ Officer)

Delaware		001-39679		85-2642786
(State or other jurisdiction of incorporation or organization)		(Commission File Number)		(I.R.S. Employer Identification Number)

~~800 1st Street, Unit 1, Miami, FL~~777 Yamato Road, Suite 310, Boca Raton, Florida		~~33139~~33431
(Address of principal executive offices)		(Zip Code)

Title of Each Class:	Trading Symbol:	Name of Each Exchange on Which Registered:
~~Units, each consisting of one share of~~ Common ~~Stock and one redeemable warrant~~	~~NBA.U~~	~~NYSE American, LLC~~
~~Common Stock,~~stock, par value $0.0001 per share	~~NBA~~MIMO	NYSE American, LLC
~~Redeemable warrants, each warrant~~Warrants, exercisable for ~~one share~~shares of ~~Common Stock~~common stock at an exercise price of ~~$11.50~~$12.50 per share	~~NBA WS~~MIMO WSA	NYSE American, LLC
Warrants, exercisable for shares of common stock at an exercise price of $15.00 per share	MIMO WSB	NYSE American, LLC

Large accelerated filer	☐	Accelerated filer	☐☒
Non-accelerated filer	☒☐	Smaller reporting company	☒
Emerging growth company	☒

Formation costs	$	461
Net loss	$	(461	)

Basic and diluted weighted average shares outstanding⁽¹⁾		2,500,000
Basic and diluted net loss per share	$	(0.00	)

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS			~~PAGE~~ii

PART I. FINANCIAL INFORMATION

Item 1.	~~Condensed~~ Financial Statements ~~(Unaudited)~~		1

	Unaudited Condensed Consolidated Balance ~~Sheet~~Sheets as of ~~September~~June 30, ~~2020 (Unaudited)~~2023 and December 31, 2022		1

	Unaudited Condensed ~~Statement~~Consolidated Statements of Operations for the ~~period from August 20, 2020 (inception) through September~~Three and Six Months Ended June 30, ~~2020 (Unaudited)~~2023 and 2022		2

	Unaudited Condensed ~~Statement~~Consolidated Statements of Changes in Stockholders’ ~~Equity~~Deficit for the ~~period from August 20, 2020 (inception) through September~~Three and Six Months Ended June 30, ~~2020 (Unaudited)~~2023 and 2022		3

	Unaudited Condensed ~~Statement~~Consolidated Statements of Cash Flows for the ~~period from August 20, 2020 (inception) through September~~Six Months Ended June 30, ~~2020 (Unaudited)~~2023 and 2022		4

	Notes to Unaudited Condensed Consolidated Financial Statements	5	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14	28

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	16	43

Item 4.	Controls and Procedures	16	44

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	17	45

Item 1A.	Risk Factors	17	45

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds ~~from Registered Securities~~	17	46

Item 3.	Defaults Upon Senior Securities	17	46

Item 4.	Mine Safety Disclosures	17	46

Item 5.	Other Information	17	46

Item 6.	Exhibits	18	47

~~Part III. Signature~~SIGNATURES		19	49

Assets:
Current asset – cash	$	45,267
Deferred offering costs		79,733
Total assets	$	125,000

Liabilities and Stockholder’s Equity
Accrued offering costs and expenses	$	461
Promissory note – related party		100,000
Total current liabilities		100,461

Commitments

Stockholder’s Equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding		—
Common stock, $0.0001 par value; 100,000,000 shares authorized; 2,875,000 shares⁽¹⁾ issued and outstanding		288
Additional paid-in capital		24,712
Accumulated deficit		(461	)
Total stockholder’s equity		24,539
Total Liabilities and Stockholder’s Equity	$	125,000

	Common Stock				Additional Paid-In		Accumulated			Total Stockholder’s
	Shares⁽¹⁾		Amount		Capital		Deficit			Equity
Balance as of August 20, 2020 (inception)		—	$	—	$	—	$	—		$	—
Common stock issued to Sponsor		2,875,000		288		24,712		—			25,000
Net loss		—		—		—		(461	)		(461	)
Balance as of September 30, 2020		2,875,000	$	288	$	24,712	$	(461	)	$	24,539