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Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 102.5 189.01005859375005 m 187.4814453125 189.01005859375005 l s q 0 0 1 rg BT 102.50 190.21 Td (Mine Safety Disclosure) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 289.6 160.01005859375005 m 322.31728515625 160.01005859375005 l s q 0 0 1 rg BT 289.60 161.21 Td (P) Tj ET Q q 0 0 1 rg BT 293.78 161.21 Td (AR) Tj ET Q q 0 0 1 rg BT 305.74 161.21 Td (T) Tj ET Q q 0 0 1 rg BT 311.08 161.21 Td ( III) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 144.01 Td (Item17.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 102.5 142.01005859375005 m 177.734375 142.01005859375005 l s q 0 0 1 rg BT 102.50 143.21 Td (Financial Statements) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 130.01 Td (Item18.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 102.5 128.01005859375005 m 177.734375 128.01005859375005 l s q 0 0 1 rg BT 102.50 129.21 Td (Financial Statements) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 116.01 Td (Item19.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 102.5 114.01005859375005 m 132.50146484375 114.01005859375005 l s q 0 0 1 rg BT 102.50 115.21 Td (Exhibits) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 52.5 85.01005859375005 m 90.4951171875 85.01005859375005 l s q 0 0 1 rg BT 52.50 86.21 Td (Signatures) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 52.5 71.01005859375005 m 209.47265625 71.01005859375005 l s q 0 0 1 rg BT 52.50 72.21 Td (Index to Consolidated Financial Statements) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 58.65 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 606.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 592.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 545.21 Td (3) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 531.21 Td (3) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 517.21 Td (3) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 503.21 Td (26) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 489.21 Td (44) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 475.21 Td (44) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 461.21 Td (68) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 447.21 Td (77) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 433.21 Td (81) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 419.21 Td (82) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 405.21 Td (84) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 391.21 Td (90) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 377.21 Td (90) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 330.21 Td (93) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 316.21 Td (93) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 302.21 Td (93) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 288.21 Td (95) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 274.21 Td (95) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 260.21 Td (96) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 246.21 Td (96) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 232.21 Td (96) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 218.21 Td (96) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 204.21 Td (96) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 190.21 Td (97) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 143.21 Td (98) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 129.21 Td (98) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 115.21 Td (98) Tj ET Q BT /F1 9.00 Tf ET endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.95 722.25 Td (INTRODUCTION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 701.25 Td (Unless otherwise indicated, Sequans Communications S.A., Sequans Communications, the Company, we, us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.25 Td (and our refer to Sequans Communications S.A. and its consolidated subsidiaries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 668.25 Td (In this annual report, references to the euro or are to the euro currency of the European Union and references to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.25 Td (U.S. dollars or $ are to United States dollars.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 635.25 Td (Reference to the Shares are references to Sequans Communications) Tj ET Q q 0 0 0 rg BT 354.86 635.25 Td ( Ordinary Shares, nominal value 0.02per share, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.25 Td (and references to the ) Tj ET Q q 0 0 0 rg BT 138.89 623.25 Td (ADSs are to Sequans Communications) Tj ET Q q 0 0 0 rg BT 301.46 623.25 Td ( ) Tj ET Q q 0 0 0 rg BT 303.41 623.25 Td (American Depositary Shares \(each representing one Ordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (Share\), which are evidenced by ) Tj ET Q q 0 0 0 rg BT 177.22 611.25 Td (American Depositary Receipts \(ADRs\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 149.10 587.25 Td (SPECIAL) Tj ET Q q 0 0 0 rg BT 191.89 587.25 Td ( NOTE REGARDING FOR) Tj ET Q q 0 0 0 rg BT 310.72 587.25 Td (W) Tj ET Q q 0 0 0 rg BT 319.61 587.25 Td (ARD-LOOKING ST) Tj ET Q q 0 0 0 rg BT 407.49 587.25 Td (A) Tj ET Q q 0 0 0 rg BT 413.97 587.25 Td (TEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 566.25 Td (This annual report contains forward-looking statements within the meaning of Section27A) Tj ET Q q 0 0 0 rg BT 437.59 566.25 Td ( of the Securities ) Tj ET Q q 0 0 0 rg BT 507.02 566.25 Td (Act of 1933, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (as amended, or the Securities ) Tj ET Q q 0 0 0 rg BT 168.35 554.25 Td (Act, and Section21E of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 364.69 554.25 Td (Act of 1934, as amended, or the Exchange ) Tj ET Q q 0 0 0 rg BT 536.30 554.25 Td (Act, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (that are based on our management) Tj ET Q q 0 0 0 rg BT 189.17 542.25 Td (s beliefs and assumptions and on information currently available to our management. ) Tj ET Q q 0 0 0 rg BT 531.58 542.25 Td (All ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (statements other than present and historical facts and conditions contained in this annual report on Form 20-F) Tj ET Q q 0 0 0 rg BT 486.38 530.25 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (statements regarding our future results of operations and financial positions, business strategy) Tj ET Q q 0 0 0 rg BT 423.76 518.25 Td (, plans and our objectives for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (future operations, are forward looking statements. ) Tj ET Q q 0 0 0 rg BT 251.48 506.25 Td (These statements involve known and unknown risks, uncertainties and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (important factors that may cause our actual results, performance or achievements to be materially dif) Tj ET Q q 0 0 0 rg BT 452.77 494.25 Td (ferent from any future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (results, performances or achievements expressed or implied by the forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 433.37 482.25 Td (These forward-looking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (statements include, but are not limited to, those concerning the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 458.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 458.25 Td (forecasts and trends in the markets in which we compete and in which our products are sold, including statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 446.25 Td (regarding the L) Tj ET Q q 0 0 0 rg BT 145.82 446.25 Td (TE markets and the expansion of the Internet of ) Tj ET Q q 0 0 0 rg BT 339.19 446.25 Td (Things market;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 434.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 434.25 Td (our expectations regarding our expenses, sales and operations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 422.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 422.25 Td (our expectations regarding our operating results;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 410.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 410.25 Td (our expectations regarding our customer concentration;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 398.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 398.25 Td (trends and challenges in the markets in which we operate, including average selling price reductions, cyclicality in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 386.25 Td (wireless communications industry and transitions to new process technologies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 374.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 374.25 Td (our ability to anticipate the future market demands and future needs of our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 362.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 362.25 Td (or ability to keep pace with and anticipate evolving industry standards, including 5G;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 350.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 350.25 Td (our ability to achieve new design wins, or for design wins to result in shipments of our products at the levels and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 338.25 Td (within the timeframes we currently expect;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 326.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 326.25 Td (our plans for future products and enhancements of existing products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 314.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 314.25 Td (anticipated features and benefits of our current and future products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 302.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 302.25 Td (the sources of future demand for our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 290.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 290.25 Td (our growth strategy elements and our growth rate;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 278.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 278.25 Td (our ability to enter into strategic alliances or partnerships;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 266.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 266.25 Td (our ability to develop or acquire complementary technologies or partner with others to bring to market solutions that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 254.25 Td (integrate enhanced functionalities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 242.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 242.25 Td (our ability to protect and defend our intellectual property against potential third party intellectual property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 230.25 Td (infringement claims;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 218.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 218.25 Td (our ability to defend successfully against securities class-action litigation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 206.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 206.25 Td (our ability to maintain compliance with the NYSE continued listing requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 194.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 194.25 Td (general economic conditions in our domestic and international markets; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 182.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 182.25 Td (our future cash needs and our estimates regarding our capital requirements and our need for additional financing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 161.25 Td (In some cases, you can identify forward-looking statements by terms such as anticipates, believes, could, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (estimates, expects, intends, may) Tj ET Q q 0 0 0 rg BT 208.22 149.25 Td (, plans, potential, predicts, projects, should, will, would as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (similar expressions. Forward-looking statements reflect our current views with respect to future events, are based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (assumptions and are subject to risks, uncertainties and other important factors. ) Tj ET Q q 0 0 0 rg BT 365.07 125.25 Td (W) Tj ET Q q 0 0 0 rg BT 373.71 125.25 Td (e operate in a very competitive and rapidly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (changing environment. New risks emer) Tj ET Q q 0 0 0 rg BT 206.78 113.25 Td (ge from time to time. ) Tj ET Q q 0 0 0 rg BT 293.80 113.25 Td (W) Tj ET Q q 0 0 0 rg BT 302.43 113.25 Td (e cannot assure you that our plans, intentions or expectations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.25 Td (will be achieved. Our actual results, performance or achievements could dif) Tj ET Q q 0 0 0 rg BT 351.98 101.25 Td (fer materially from those contemplated, expressed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.25 Td (or implied by the forward-looking statements contained in this annual report, including, but not limited to, those factors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.25 Td (described in Item 3.DRisk Factors, Item 4Information on the Company and Item 5Operating and Financial Review ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.25 Td (and Prospects. Given these risks, uncertainties and other important factors, you should not place undue reliance on these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.25 Td (forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 164.20 53.25 Td (All forward-looking statements attributable to us or persons acting on our behalf are expressly ) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (qualified in their entirety by the cautionary statements set forth in this annual report. ) Tj ET Q q 0 0 0 rg BT 388.57 722.10 Td (Also, these forward-looking statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (represent our estimates and assumptions only as of the date such forward-looking statements are made. Except as required by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (law) Tj ET Q q 0 0 0 rg BT 63.29 698.10 Td (, we assume no obligation to update any forward-looking statements publicly) Tj ET Q q 0 0 0 rg BT 371.18 698.10 Td (, whether as a result of new information, future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (events or otherwise.) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.80 722.25 Td (P) Tj ET Q q 0 0 0 rg BT 295.17 722.25 Td (AR) Tj ET Q q 0 0 0 rg BT 309.26 722.25 Td (T) Tj ET Q q 0 0 0 rg BT 315.75 722.25 Td ( I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 696.25 Td (Item1. Identity of Dir) Tj ET Q q 0 0 0 rg BT 143.47 696.25 Td (ectors, Senior) Tj ET Q q 0 0 0 rg BT 201.60 696.25 Td ( Management and ) Tj ET Q q 0 0 0 rg BT 280.77 696.25 Td (Advisers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 679.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (Item2. Offer) Tj ET Q q 0 0 0 rg BT 105.13 653.25 Td ( Statistics and Expected ) Tj ET Q q 0 0 0 rg BT 208.84 653.25 Td (T) Tj ET Q q 0 0 0 rg BT 215.33 653.25 Td (imetable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 636.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (Item3. Key Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (A. Selected Financial Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 572.25 Td (The following tables set forth our selected consolidated financial and other data. ) Tj ET Q q 0 0 0 rg BT 396.63 572.25 Td (Y) Tj ET Q q 0 0 0 rg BT 402.85 572.25 Td (ou should read the following selected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (consolidated financial data in conjunction with Item 5 Operating and Financial Review and Prospects and our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (financial statements and the related notes appearing elsewhere in this annual report. Our historical results are not necessarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (indicative of results to be expected for future periods. ) Tj ET Q q 0 0 0 rg BT 265.91 536.25 Td (The consolidated statements of operations data for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 524.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.08 524.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.08 524.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.52 524.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.52 524.25 Td (, the consolidated statements of financial position data at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.90 524.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.49 524.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.49 524.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.49 524.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 512.25 Td (, and the consolidated statements of cash flow data for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.85 512.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.43 512.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.43 512.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.43 512.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.87 512.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.87 512.25 Td ( have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (derived from our audited Consolidated Financial Statements included elsewhere in this annual report. ) Tj ET Q q 0 0 0 rg BT 457.54 500.25 Td (The consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (statement of operations data for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.31 488.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.90 488.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.34 488.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.34 488.25 Td (, consolidated statement of financial position data ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.22 476.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.80 476.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.24 476.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.24 476.25 Td (, and the consolidated statement of cash flow data for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.80 476.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.39 476.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 464.25 Td (, have been derived from our audited Consolidated Financial Statements that are not included in this annual report.) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (Our financial statements included in this annual report were prepared in U.S. dollars in accordance with International ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (Financial Reporting Standards, or IFRS, as issued by the International ) Tj ET Q q 0 0 0 rg BT 331.68 710.10 Td (Accounting Standards Board.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 660.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 660.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 660.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 660.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 660.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 660.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 632.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 632.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 632.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 632.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 632.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 632.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 606.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 606.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 606.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 606.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 606.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 606.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 580.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 580.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 580.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 580.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 580.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 580.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 554.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 554.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 554.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 554.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 554.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 554.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 528.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 528.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 528.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 528.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 528.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 528.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 502.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 502.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 502.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 502.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 502.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 502.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 476.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 476.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 476.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 476.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 476.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 476.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 450.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 450.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 450.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 450.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 450.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 450.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 424.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 424.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 424.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 424.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 424.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 424.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 398.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 398.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 398.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 398.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 398.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 398.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 372.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 372.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 372.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 372.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 372.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 372.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 341.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 341.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 341.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 341.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 341.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 341.60 58.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 686.6 m 326 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 686.6 m 385 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 686.6 m 443 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 686.6 m 502 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 686.6 m 560 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 686.6 m 326 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 673.6 m 326 673.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 673.6 m 385 673.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 673.6 m 443 673.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 673.6 m 502 673.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 673.6 m 560 673.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 606.6 m 326 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 606.6 m 385 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 606.6 m 443 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 606.6 m 502 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 606.6 m 560 606.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 593.6 m 326 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 593.6 m 385 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 593.6 m 443 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 593.6 m 502 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 593.6 m 560 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 554.6 m 326 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 554.6 m 385 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 554.6 m 443 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 554.6 m 502 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 554.6 m 560 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 463.6 m 326 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 463.6 m 385 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 463.6 m 443 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 463.6 m 502 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 463.6 m 560 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 450.6 m 326 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 450.6 m 385 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 450.6 m 443 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 450.6 m 502 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 450.6 m 560 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 424.6 m 326 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 424.6 m 385 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 424.6 m 443 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 424.6 m 502 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 424.6 m 560 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 398.6 m 326 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 398.6 m 385 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 398.6 m 443 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 398.6 m 502 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 398.6 m 560 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 386.6 m 326 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 384.6 m 326 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 386.6 m 385 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 384.6 m 385 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 386.6 m 443 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 384.6 m 443 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 386.6 m 502 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 384.6 m 502 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 386.6 m 560 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 384.6 m 560 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 384.6 m 326 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 386.6 m 326 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 373.6 m 326 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 371.6 m 326 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 373.6 m 385 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 371.6 m 385 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 373.6 m 443 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 371.6 m 443 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 373.6 m 502 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 371.6 m 502 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 373.6 m 560 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 371.6 m 560 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 371.6 m 326 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 373.6 m 326 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 360.6 m 326 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 358.6 m 326 358.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 360.6 m 385 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 358.6 m 385 358.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 360.6 m 443 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 358.6 m 443 358.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 360.6 m 502 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 358.6 m 502 358.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 360.6 m 560 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 358.6 m 560 358.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 329.6 m 326 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 327.6 m 326 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 329.6 m 385 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 327.6 m 385 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 329.6 m 443 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 327.6 m 443 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 329.6 m 502 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 327.6 m 502 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 329.6 m 560 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 327.6 m 560 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 327.6 m 326 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 329.6 m 326 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 316.6 m 326 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 314.6 m 326 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 316.6 m 385 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 314.6 m 385 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 327.6 m 443 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 329.6 m 443 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 316.6 m 443 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 314.6 m 443 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 327.6 m 502 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 329.6 m 502 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 316.6 m 502 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 314.6 m 502 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 316.6 m 560 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 314.6 m 560 314.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 690.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.95 690.83 Td (Y) Tj ET Q q 0 0 0 rg BT 374.28 690.83 Td (ears ended December) Tj ET Q q 0 0 0 rg BT 447.08 690.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 677.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.30 677.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 301.30 681.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.95 677.83 Td (2015 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 360.95 681.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.45 677.83 Td (2016 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 419.45 681.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.95 677.83 Td (2017 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 477.95 681.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 677.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 664.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 351.25 664.83 Td (\(in thousands, except per) Tj ET Q q 0 0 0 rg BT 436.45 664.83 Td ( shar) Tj ET Q q 0 0 0 rg BT 453.41 664.83 Td (e data\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 652.00 Td (Consolidated Statements of Operations Data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 636.17 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 623.17 Td (Product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.50 623.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 623.17 Td (19,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 623.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 623.17 Td (24,669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.50 623.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 623.17 Td (34,581) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.50 623.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 623.17 Td (37,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 623.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 623.17 Td (28,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 610.17 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 610.17 Td (2,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 610.17 Td (7,863) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 610.17 Td (10,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 610.17 Td (10,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 610.17 Td (1) Tj ET Q q 0 0 0 rg BT 528.65 610.17 Td (1,312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 597.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 597.17 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 597.17 Td (22,602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 597.17 Td (32,532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 597.17 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 597.17 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 597.17 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 584.17 Td (Cost of revenue) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 115.82 588.70 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.39 584.17 Td (:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 571.17 Td (Cost of product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 571.17 Td (15,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 571.17 Td (17,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 571.17 Td (22,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 571.17 Td (24,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 571.17 Td (21,957) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 558.17 Td (Cost of other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 558.17 Td (346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 558.17 Td (1,481) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 558.17 Td (3,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 558.17 Td (2,397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 558.17 Td (2,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 545.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 545.17 Td (otal cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 545.17 Td (15,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 545.17 Td (19,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 545.17 Td (25,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 545.17 Td (27,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 545.17 Td (24,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 532.17 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 532.17 Td (6,821) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 532.17 Td (13,081) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 532.17 Td (19,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 532.17 Td (21,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 532.17 Td (15,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 519.17 Td (% of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 519.17 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 519.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 519.17 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 519.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 519.17 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 519.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 519.17 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 519.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 519.17 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 519.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 506.17 Td (Operating expenses) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 131.08 510.70 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.66 506.17 Td (:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 493.17 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 493.17 Td (28,634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 493.17 Td (25,305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 493.17 Td (26,334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 493.17 Td (25,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 493.17 Td (27,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 480.17 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 480.17 Td (5,278) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 480.17 Td (5,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 480.17 Td (7,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 480.17 Td (8,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 480.17 Td (9,41) Tj ET Q q 0 0 0 rg BT 546.15 480.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 467.17 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 467.17 Td (6,969) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 467.17 Td (5,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 467.17 Td (6,267) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 467.17 Td (6,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 467.17 Td (10,085) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 454.17 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 454.17 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 454.17 Td (40,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 454.17 Td (36,718) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 454.17 Td (39,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 454.17 Td (40,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 454.17 Td (47,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 441.17 Td (Operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.30 441.22 Td (\(34,060) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 441.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.30 441.22 Td (\(23,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 441.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.30 441.22 Td (\(19,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 441.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.30 441.22 Td (\(19,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 441.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.30 441.22 Td (\(31,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 441.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 428.17 Td (Financial income \(expense\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 428.17 Td (98) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.30 428.22 Td (\(3,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 428.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.30 428.22 Td (\(4,759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 428.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 428.22 Td (\(6,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 428.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.30 428.22 Td (\(5,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 428.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 415.17 Td (Profit \(Loss\) before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.30 415.22 Td (\(33,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 415.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.30 415.22 Td (\(27,085) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 415.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.30 415.22 Td (\(24,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 415.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.30 415.22 Td (\(25,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 415.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.30 415.22 Td (\(37,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 415.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 402.17 Td (Income tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 402.17 Td (162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 402.17 Td (317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 402.17 Td (284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 402.17 Td (300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 402.22 Td (\(968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 402.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 389.17 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.50 389.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.30 389.22 Td (\(34,124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 389.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 389.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.30 389.22 Td (\(27,402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 389.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.50 389.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.30 389.22 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 389.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.50 389.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.30 389.22 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 389.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 389.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.30 389.22 Td (\(36,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 389.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 376.17 Td (Basic earnings \(loss\) per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.50 376.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.30 376.22 Td (\(0.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 376.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 376.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.30 376.22 Td (\(0.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 376.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.50 376.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 376.22 Td (\(0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 376.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.50 376.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.30 376.22 Td (\(0.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 376.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 376.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.30 376.22 Td (\(0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 376.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 363.17 Td (Diluted earnings \(loss\) per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.50 363.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.30 363.22 Td (\(0.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 363.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 363.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.30 363.22 Td (\(0.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 363.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.50 363.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 363.22 Td (\(0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 363.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.50 363.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.30 363.22 Td (\(0.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 363.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 363.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.30 363.22 Td (\(0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 363.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 346.27 Td (Number ) Tj ET Q q 0 0 0 rg BT 87.77 346.27 Td (of ) Tj ET Q q 0 0 0 rg BT 98.60 346.27 Td (shares ) Tj ET Q q 0 0 0 rg BT 126.09 346.27 Td (used ) Tj ET Q q 0 0 0 rg BT 146.92 346.27 Td (for ) Tj ET Q q 0 0 0 rg BT 161.08 346.27 Td (computing:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 332.17 Td (Basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 332.17 Td (59,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 332.17 Td (59,145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 332.17 Td (63,805) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 332.17 Td (77,668) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 332.17 Td (93,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 319.17 Td (Diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 319.17 Td (59,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 319.17 Td (59,145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 319.17 Td (63,805) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 319.17 Td (77,668) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 319.17 Td (93,767) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 257.60 218.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 257.60 59.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 257.60 59.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 257.60 59.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 257.60 118.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 225.60 218.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 225.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 225.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 225.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 225.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 225.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 197.60 218.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 197.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 197.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 197.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 197.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 197.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 169.60 218.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 169.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 169.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 169.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 169.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 169.60 59.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 281.6 m 327 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 281.6 m 386 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 281.6 m 445 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 281.6 m 504 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 281.6 m 563 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 281.6 m 327 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 269.6 m 327 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 281.6 m 386 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 269.6 m 386 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 281.6 m 445 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 269.6 m 445 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 281.6 m 504 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 269.6 m 504 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 281.6 m 563 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 269.6 m 563 269.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 285.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.50 285.68 Td (At December) Tj ET Q q 0 0 0 rg BT 431.51 285.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 273.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.30 273.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 301.30 277.31 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 344.30 273.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 360.30 277.31 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.30 273.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 419.30 277.31 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 273.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 478.30 277.31 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.00 273.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 261.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.65 261.68 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 249.00 Td (Consolidated Statements of Financial Position Data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 231.17 Td (Cash, cash equivalents and short-term deposit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 230.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.65 230.27 Td (12,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.50 230.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 230.27 Td (8,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 230.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 230.27 Td (20,547) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 230.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 230.27 Td (3,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 230.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 230.27 Td (12,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 216.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 216.17 Td (otal current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.65 216.17 Td (36,315) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 216.17 Td (35,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 216.17 Td (50,069) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 216.17 Td (39,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 216.17 Td (43,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 202.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 202.17 Td (otal assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.65 202.17 Td (49,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 202.17 Td (48,856) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 202.17 Td (65,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 202.17 Td (57,056) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 202.17 Td (62,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 188.17 Td (Current and non-current loans and borrowings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 188.17 Td (5,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 188.17 Td (26,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 188.17 Td (29,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 188.17 Td (30,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 188.17 Td (48,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 174.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 174.17 Td (otal current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.65 174.17 Td (19,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 174.17 Td (29,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 174.17 Td (31,467) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 174.17 Td (27,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 174.17 Td (27,198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 160.17 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 160.17 Td (otal equity \(deficit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.65 160.17 Td (25,1) Tj ET Q q 0 0 0 rg BT 313.15 160.17 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.30 160.22 Td (\(1,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 160.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 160.17 Td (8,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 160.17 Td (4,148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 160.22 Td (\(5,020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 160.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (5) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 683.50 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 683.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 683.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 683.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 683.50 118.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 648.50 218.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 648.50 59.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 648.50 59.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 648.50 59.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 648.50 59.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 648.50 59.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 615.50 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 615.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 615.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 615.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 615.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 615.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 585.50 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 585.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 585.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 585.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 585.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 585.50 59.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 713.5 m 326 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 713.5 m 385 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 713.5 m 444 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 713.5 m 503 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 713.5 m 562 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 713.5 m 326 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 698.5 m 326 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 713.5 m 385 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 698.5 m 385 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 713.5 m 444 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 698.5 m 444 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 713.5 m 503 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 698.5 m 503 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 713.5 m 562 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 698.5 m 562 698.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 717.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.60 717.73 Td (Y) Tj ET Q q 0 0 0 rg BT 375.93 717.73 Td (ear) Tj ET Q q 0 0 0 rg BT 386.52 717.73 Td ( ended December) Tj ET Q q 0 0 0 rg BT 445.47 717.73 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 702.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.30 702.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 300.30 706.36 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.30 702.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 359.30 706.36 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.30 702.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 418.30 706.36 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.30 702.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 477.30 706.36 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 702.73 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 687.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.65 687.73 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 51.50 674.90 Td (Consolidated Statements of Cash Flow Data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 656.12 Td (Net cash flow used in operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.50 653.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.30 653.22 Td (\(24,406) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.15 653.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 653.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.30 653.22 Td (\(16,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 653.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.50 653.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.30 653.22 Td (\(15,589) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 653.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.50 653.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.30 653.22 Td (\(28,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 653.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.50 653.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 653.22 Td (\(22,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 653.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 637.12 Td (Net cash flow used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.30 635.22 Td (\(5,625) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.15 635.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.30 635.22 Td (\(5,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 635.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.30 635.22 Td (\(5,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 635.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.30 635.22 Td (\(6,477) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 635.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 635.22 Td (\(8,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 635.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 621.07 Td (Net cash flow from financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 620.17 Td (5,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 620.17 Td (17,710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 620.17 Td (32,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 620.17 Td (17,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 620.17 Td (40,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 606.07 Td (Net foreign exchange dif) Tj ET Q q 0 0 0 rg BT 151.09 606.07 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.80 605.22 Td (\(5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.15 605.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.80 605.22 Td (\(5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 605.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 605.22 Td (\(5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 605.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 605.17 Td (1) Tj ET Q q 0 0 0 rg BT 494.15 605.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.80 605.22 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 605.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 591.07 Td (Cash and cash equivalents at January1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 590.17 Td (37,244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 590.17 Td (12,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 590.17 Td (8,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 590.17 Td (20,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 590.17 Td (2,948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 576.07 Td (Cash and cash equivalents at December31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 575.17 Td (12,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 575.17 Td (8,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 575.17 Td (20,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 575.17 Td (2,948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 575.17 Td (12,086) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 559.00 Td (\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 559.00 Td (In 2018, the Company adopted IFRS 15 using the modified r) Tj ET Q q 0 0 0 rg BT 327.04 559.00 Td (etr) Tj ET Q q 0 0 0 rg BT 337.78 559.00 Td (ospective application appr) Tj ET Q q 0 0 0 rg BT 444.05 559.00 Td (oach. ) Tj ET Q q 0 0 0 rg BT 468.31 559.00 Td (Accor) Tj ET Q q 0 0 0 rg BT 491.82 559.00 Td (dingly) Tj ET Q q 0 0 0 rg BT 516.26 559.00 Td (, prior ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 547.00 Td (period amounts have not been r) Tj ET Q q 0 0 0 rg BT 176.05 547.00 Td (estated.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 535.00 Td (\(2\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 535.00 Td (Includes shar) Tj ET Q q 0 0 0 rg BT 139.29 535.00 Td (e-based compensation as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 479.50 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 479.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 479.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 479.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 479.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 479.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 449.50 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 449.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 449.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 449.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 449.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 449.50 59.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 509.5 m 326 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 509.5 m 385 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 509.5 m 444 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 509.5 m 503 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 509.5 m 562 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 494.5 m 326 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 494.5 m 385 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 494.5 m 444 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 494.5 m 503 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 494.5 m 562 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 449.5 m 326 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 449.5 m 385 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 449.5 m 444 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 449.5 m 503 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 449.5 m 562 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 449.5 m 326 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 435.5 m 326 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 433.5 m 326 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 449.5 m 385 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 435.5 m 385 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 433.5 m 385 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 449.5 m 444 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 435.5 m 444 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 433.5 m 444 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 449.5 m 503 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 435.5 m 503 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 433.5 m 503 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 449.5 m 562 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 435.5 m 562 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 433.5 m 562 433.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 513.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.60 513.73 Td (Y) Tj ET Q q 0 0 0 rg BT 375.93 513.73 Td (ear) Tj ET Q q 0 0 0 rg BT 386.52 513.73 Td ( ended December) Tj ET Q q 0 0 0 rg BT 445.47 513.73 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 498.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.00 498.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.00 498.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.00 498.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.00 498.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 498.73 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 483.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.65 483.73 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 470.07 Td (Cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.50 469.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.15 469.17 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 469.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 469.17 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.50 469.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 469.17 Td (1) Tj ET Q q 0 0 0 rg BT 435.15 469.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.50 469.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 469.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.50 469.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 469.17 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 455.07 Td (Operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 454.17 Td (1,230) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 454.17 Td (850) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 454.17 Td (1,1) Tj ET Q q 0 0 0 rg BT 430.15 454.17 Td (1) Tj ET Q q 0 0 0 rg BT 435.15 454.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 454.17 Td (1,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 454.17 Td (1,804) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 440.07 Td (Share-based compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.50 439.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 439.17 Td (1,277) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 439.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 439.17 Td (867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.50 439.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 439.17 Td (1,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.50 439.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 439.17 Td (1,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.50 439.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 439.17 Td (1,812) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 397.00 Td (Exchange Rate Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 380.00 Td (In this annual report, for convenience only) Tj ET Q q 0 0 0 rg BT 243.07 380.00 Td (, we have translated the euro amounts reflected in our financial statements as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.00 Td (and for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.40 368.00 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.98 368.00 Td ( into U.S. dollars at the rate of 1.00 = $1.1456, the noon buying rate for euros in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.00 Td (New ) Tj ET Q q 0 0 0 rg BT 70.51 356.00 Td (Y) Tj ET Q q 0 0 0 rg BT 76.73 356.00 Td (ork City) Tj ET Q q 0 0 0 rg BT 109.14 356.00 Td (, as certified for customs purposes by the Federal Reserve Bank of New ) Tj ET Q q 0 0 0 rg BT 398.13 356.00 Td (Y) Tj ET Q q 0 0 0 rg BT 404.35 356.00 Td (ork, on December31, 2018. ) Tj ET Q q 0 0 0 rg BT 518.39 356.00 Td (Y) Tj ET Q q 0 0 0 rg BT 524.61 356.00 Td (ou ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.00 Td (should not assume that, on that or on any other date, one could have converted these amounts of euros into U.S. dollars at that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.00 Td (or any other exchange rate.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 285.00 Td (B.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.67 285.00 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 61.17 285.00 Td (Capitalization and Indebtedness) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 268.00 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 225.00 Td (C.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.22 225.00 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 61.72 225.00 Td (Reasons for the Of) Tj ET Q q 0 0 0 rg BT 139.05 225.00 Td (fer and Use of Proceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 208.00 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 165.00 Td ( D.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.72 165.00 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 64.22 165.00 Td (Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 148.00 Td (Our business faces significant risks. Y) Tj ET Q q 0 0 0 rg BT 224.81 148.00 Td (ou should car) Tj ET Q q 0 0 0 rg BT 279.44 148.00 Td (efully consider all of the information set forth in this annual r) Tj ET Q q 0 0 0 rg BT 525.45 148.00 Td (eport ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 136.00 Td (and in our other filings with the United States Securities and Exchange Commission \(SEC\), including the following risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 124.00 Td (factors which we face, and which ar) Tj ET Q q 0 0 0 rg BT 193.84 124.00 Td (e faced by our industry) Tj ET Q q 0 0 0 rg BT 285.49 124.00 Td (. Our business, financial condition or r) Tj ET Q q 0 0 0 rg BT 441.23 124.00 Td (esults of operations could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 112.00 Td (materially adversely affected by any of these risks. This r) Tj ET Q q 0 0 0 rg BT 277.42 112.00 Td (eport also contains forwar) Tj ET Q q 0 0 0 rg BT 383.44 112.00 Td (d-looking statements that involve risks and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 100.00 Td (uncertainties. Our r) Tj ET Q q 0 0 0 rg BT 128.85 100.00 Td (esults could materially differ fr) Tj ET Q q 0 0 0 rg BT 252.91 100.00 Td (om those anticipated in these forwar) Tj ET Q q 0 0 0 rg BT 398.91 100.00 Td (d-looking statements, as a r) Tj ET Q q 0 0 0 rg BT 509.37 100.00 Td (esult of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 88.00 Td (certain factors including the risks described below and elsewher) Tj ET Q q 0 0 0 rg BT 307.42 88.00 Td (e in this r) Tj ET Q q 0 0 0 rg BT 345.11 88.00 Td (eport and our other SEC filings. See Special Note ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 76.00 Td (Regar) Tj ET Q q 0 0 0 rg BT 73.57 76.00 Td (ding Forwar) Tj ET Q q 0 0 0 rg BT 124.04 76.00 Td (d-Looking Statements on page 1.) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.04 722.25 Td ( Business and Industry) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 705.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 705.25 Td (e have a history of losses and have experienced a significant decline in revenue from 201) Tj ET Q q 0 0 0 rg BT 422.90 705.25 Td (1, and we may not achieve or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (sustain profitability in the future, on a quarterly or annual basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 672.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 672.25 Td (e were established in 2003 and began operations in 2004, and have incurred losses on an annual basis since inception. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 660.25 Td (e experienced net losses of $24.8 million, $26.2 million and $35.7 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.71 660.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.71 660.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.71 660.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.71 660.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 660.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 660.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 503.81 660.25 Td (. ) Tj ET Q q 0 0 0 rg BT 508.25 660.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 648.25 Td (, our accumulated deficit was $271.5 million. ) Tj ET Q q 0 0 0 rg BT 311.75 648.25 Td (W) Tj ET Q q 0 0 0 rg BT 320.38 648.25 Td (e expect to continue to incur significant expense related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.25 Td (the development of our L) Tj ET Q q 0 0 0 rg BT 150.22 636.25 Td (TE products and expansion of our business, including research and development and sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.25 Td (administrative expenses. ) Tj ET Q q 0 0 0 rg BT 149.75 624.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 199.66 624.25 Td (, we may encounter unforeseen dif) Tj ET Q q 0 0 0 rg BT 337.75 624.25 Td (ficulties, complications, product delays and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.25 Td (unknown factors that require additional expense. ) Tj ET Q q 0 0 0 rg BT 246.38 612.25 Td (As a result of these expenditures, we will have to generate and sustain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 600.25 Td (substantially increased revenue to achieve profitability) Tj ET Q q 0 0 0 rg BT 267.38 600.25 Td (. If we do not, we may not be able to achieve or maintain profitability) Tj ET Q q 0 0 0 rg BT 544.98 600.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.25 Td (and we may continue to incur significant losses in the future.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 567.25 Td (Our industry is subject to rapid technological change that could result in decreased demand for our products and those of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 555.25 Td (our customers, or result in new specifications or requirements for our products, each of which could negatively af) Tj ET Q q 0 0 0 rg BT 517.40 555.25 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 543.25 Td (revenues, margins and operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 522.25 Td (The markets in which we and our customers compete or plan to compete are characterized by rapidly changing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.25 Td (technologies and industry standards and technological obsolescence, including the emer) Tj ET Q q 0 0 0 rg BT 400.88 510.25 Td (gence of IoT) Tj ET Q q 0 0 0 rg BT 451.79 510.25 Td ( and 5G. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.25 Td (compete successfully depends on our ability to design, develop, manufacture, assemble, test, market and support new products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.25 Td (and enhancements on a timely and cost-ef) Tj ET Q q 0 0 0 rg BT 217.03 486.25 Td (fective basis. ) Tj ET Q q 0 0 0 rg BT 271.18 486.25 Td (A) Tj ET Q q 0 0 0 rg BT 277.85 486.25 Td ( fundamental shift in technologies in any of our tar) Tj ET Q q 0 0 0 rg BT 480.68 486.25 Td (get markets could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (harm our competitive position within these markets.In addition, such shifts can cause a significant decrease in our revenues and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 462.25 Td (fect our operating results.Our failure to anticipate these shifts, to develop new technologies or to react to changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (in existing technologies could materially delay our development of new products, which could result in product obsolescence, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (decreased revenue and a loss of design wins. ) Tj ET Q q 0 0 0 rg BT 230.65 438.25 Td (The development of new technologies and products generally requires substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (investment before they are commercially viable. ) Tj ET Q q 0 0 0 rg BT 245.07 426.25 Td (W) Tj ET Q q 0 0 0 rg BT 253.71 426.25 Td (e intend to continue to make substantial investments in developing new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (technologies and products, including our L) Tj ET Q q 0 0 0 rg BT 220.21 414.25 Td (TE and 5G products, and it is possible that our development ef) Tj ET Q q 0 0 0 rg BT 470.54 414.25 Td (forts will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.25 Td (successful and that our new technologies and products will not be accepted by customers or result in meaningful revenue. If the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (semiconductor solutions we develop fail to meet market or customer requirements or expectations, or do not achieve market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (acceptance, our operating results and competitive position would suf) Tj ET Q q 0 0 0 rg BT 323.96 378.25 Td (fer) Tj ET Q q 0 0 0 rg BT 334.51 378.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 357.25 Td (Our success and the success of our new products will depend on accurate forecasts of future technological developments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.25 Td (customer and consumer requirements and long-term market demand, as well as on a variety of specific implementation factors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.25 Td (including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 321.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 321.25 Td (accurate prediction of the size and growth of the L) Tj ET Q q 0 0 0 rg BT 286.04 321.25 Td (TE markets, and in particular the market for L) Tj ET Q q 0 0 0 rg BT 469.77 321.25 Td (TE-only) Tj ET Q q 0 0 0 rg BT 502.45 321.25 Td (, also referred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 309.25 Td (to as single-mode L) Tj ET Q q 0 0 0 rg BT 163.33 309.25 Td (TE, products where no fall back to 2G or 3G technology is required, and the market for the variants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 297.25 Td (of L) Tj ET Q q 0 0 0 rg BT 101.12 297.25 Td (TE optimized for the Internet of ) Tj ET Q q 0 0 0 rg BT 231.45 297.25 Td (Things \(the narrow band versions referred to as Cat M and NB-1\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 285.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 285.25 Td (accurate prediction of the size and growth of the 5G market;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 273.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 273.25 Td (accurate prediction of changes in device manufacturer requirements, technology) Tj ET Q q 0 0 0 rg BT 405.14 273.25 Td (, industry standards or consumer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 261.25 Td (expectations, demands and preferences;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 249.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 249.25 Td (accurate prediction of the growth of the Internet of ) Tj ET Q q 0 0 0 rg BT 290.11 249.25 Td (Things market and the adoption of industry standards allowing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 237.25 Td (devices to connect and communicate with each other;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 225.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 225.25 Td (accurate prediction of the timing of commercial availability of L) Tj ET Q q 0 0 0 rg BT 342.14 225.25 Td (TE networks, including the network operators' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 213.25 Td (deployment of Cat M and NB-1\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 201.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 201.25 Td (timely and ef) Tj ET Q q 0 0 0 rg BT 137.68 201.25 Td (ficient completion of process design and transfer to manufacturing, assembly and testing, and securing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 189.25 Td (suf) Tj ET Q q 0 0 0 rg BT 97.14 189.25 Td (ficient manufacturing capacity to allow us to continue to timely and cost-ef) Tj ET Q q 0 0 0 rg BT 397.70 189.25 Td (fectively deliver products to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 177.25 Td (customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 165.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 165.25 Td (market acceptance, adequate consumer demand and commercial production of the products in which our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 153.25 Td (semiconductor solutions are incorporated;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 141.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 141.25 Td (the quality) Tj ET Q q 0 0 0 rg BT 126.94 141.25 Td (, performance, functionality and reliability of our products as compared to competing products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 129.25 Td (technologies; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 117.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 117.25 Td (ef) Tj ET Q q 0 0 0 rg BT 92.69 117.25 Td (fective marketing, sales and customer service.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 96.25 Td (The markets for our semiconductor solutions are characterized by frequent introduction of next generation and new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.25 Td (products with new features and functionalities, short product life cycles and significant price competition. If we or our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.25 Td (customers are unable to manage product transitions in a timely and cost-ef) Tj ET Q q 0 0 0 rg BT 346.73 72.25 Td (fective manner) Tj ET Q q 0 0 0 rg BT 406.01 72.25 Td (, our business and results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.25 Td (would suf) Tj ET Q q 0 0 0 rg BT 89.04 60.25 Td (fer) Tj ET Q q 0 0 0 rg BT 99.59 60.25 Td (. In addition, frequent technology changes and introduction of next generation products may result in inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 48.25 Td (obsolescence, which could reduce our gross mar) Tj ET Q q 0 0 0 rg BT 242.86 48.25 Td (gins and harm our operating performance. If we fail to timely introduce new ) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (products that meet the demands of our customers or our tar) Tj ET Q q 0 0 0 rg BT 285.36 722.10 Td (get markets, or if we fail to penetrate new markets, our revenue will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (decrease, and our financial condition would suf) Tj ET Q q 0 0 0 rg BT 238.98 710.10 Td (fer) Tj ET Q q 0 0 0 rg BT 249.52 710.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 689.10 Td (Our L) Tj ET Q q 0 0 0 rg BT 74.60 689.10 Td (TE semiconductor solutions do not incorporate support for 2G or 3G protocols, and we currently focus on selling our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (solutions into the market for L) Tj ET Q q 0 0 0 rg BT 175.17 677.10 Td (TE-only devices.If the market for L) Tj ET Q q 0 0 0 rg BT 323.02 677.10 Td (TE-only devices materializes more slowly or at a lower ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (volume level than we anticipate, our results of operations may be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 644.10 Td (Our current semiconductor solutions support only 4G protocols.) Tj ET Q q 0 0 0 rg BT 331.52 644.10 Td (As a result, our L) Tj ET Q q 0 0 0 rg BT 400.31 644.10 Td (TE strategy focuses primarily on selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (into the L) Tj ET Q q 0 0 0 rg BT 87.46 632.10 Td (TE-only device market.) Tj ET Q q 0 0 0 rg BT 184.47 632.10 Td (The growth rate and size of the market for L) Tj ET Q q 0 0 0 rg BT 360.97 632.10 Td (TE-only devices is dependent on a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (factors, including the degree of geographic and population coverage by L) Tj ET Q q 0 0 0 rg BT 342.08 620.10 Td (TE networks.If this coverage does not continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (materialize as quickly as we expect, if fewer L) Tj ET Q q 0 0 0 rg BT 234.88 608.10 Td (TE carriers than we expect of) Tj ET Q q 0 0 0 rg BT 352.69 608.10 Td (fer comprehensive L) Tj ET Q q 0 0 0 rg BT 434.51 608.10 Td (TE coverage in their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (geographic operating areas, or if these L) Tj ET Q q 0 0 0 rg BT 209.90 596.10 Td (TE carriers require support for 2G or 3G protocols in a lar) Tj ET Q q 0 0 0 rg BT 442.14 596.10 Td (ger proportion of their overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (device portfolio than we expect, then demand for L) Tj ET Q q 0 0 0 rg BT 253.78 584.10 Td (TE-only semiconductor solutions like ours would be lower and our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (operations would be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 551.10 Td (If we are unsuccessful in developing and selling new products on a timely and cost-ef) Tj ET Q q 0 0 0 rg BT 416.00 551.10 Td (fective basis or in penetrating new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (markets, in particular the single-mode L) Tj ET Q q 0 0 0 rg BT 209.08 539.10 Td (TE market, our business and operating results would suf) Tj ET Q q 0 0 0 rg BT 434.14 539.10 Td (fer) Tj ET Q q 0 0 0 rg BT 444.69 539.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 518.10 Td (e depend on the commercial deployment of 4G wireless communications equipment, products and services to grow our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (business, and our business may be harmed if wireless carriers delay or are unsuccessful in the commercial deployment of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (4G technology or the adoption of Cat M and NB-1 standards, or if they deploy technologies that are not supported by our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (solutions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 461.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 461.10 Td (e depend upon the continued commercial deployment of 4G wireless communications equipment, products and services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.10 Td (based on our technology) Tj ET Q q 0 0 0 rg BT 146.88 449.10 Td (. Deployment of new networks by wireless carriers requires significant capital expenditures, well in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.10 Td (advance of any revenue from such networks. In the past, wireless carriers have cancelled or delayed planned deployments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (new networks, including, for example, commercial retail service in the Indian market. If existing deployments are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (commercially successful or do not continue to grow their subscriber base, or if new commercial deployments of 4G networks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (are delayed or unsuccessful, our business and financial results would be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 380.10 Td (During network deployment, wireless carriers often anticipate a certain rate of subscriber additions and, in response, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (operators typically procure devices to satisfy this forecasted demand. If the rate of deployment of new networks by wireless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (carriers is slower than we expect or if 4G technology is not as widely adopted by consumers as we expect, the rate of subscriber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (additions may be slower than expected, which will reduce the sales of our products and cause OEMs and ODMs to hold excess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (inventory) Tj ET Q q 0 0 0 rg BT 87.18 332.10 Td (. ) Tj ET Q q 0 0 0 rg BT 92.00 332.10 Td (This would harm our sales and our financial results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 311.10 Td (As we expand into the broader Internet of ) Tj ET Q q 0 0 0 rg BT 242.70 311.10 Td (Things market, we will similarly depend on the commercial deployment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (narrow band L) Tj ET Q q 0 0 0 rg BT 107.45 299.10 Td (TE variants, beginning with Cat M and, later) Tj ET Q q 0 0 0 rg BT 286.17 299.10 Td (, Cat NB-1. ) Tj ET Q q 0 0 0 rg BT 337.10 299.10 Td (The adoption of the Cat M and Cat NB-1 standards is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (expected to expand the market for Internet of ) Tj ET Q q 0 0 0 rg BT 232.57 287.10 Td (Things devices. If the Cat M or Cat NB-1 standards are not successfully adopted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (and deployed, are further delayed or if competing standards for Internet of ) Tj ET Q q 0 0 0 rg BT 348.92 275.10 Td (Things devices become favored by wireless carriers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (we may not be able to successfully commercialize our Cat M and Cat NB-1 chipsets, which would harm our sales and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (financial results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 230.10 Td (In the future we are likely to have similar dependencies regarding the deployment of 5G networks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 209.10 Td (In addition, wireless carriers may choose to deploy technologies not supported by our solutions. If a technology that is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (supported by our semiconductor solutions gains significant market share or is favored by a significant wireless carrier) Tj ET Q q 0 0 0 rg BT 520.08 197.10 Td (, we could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (be required to expend a significant amount of time and capital to develop a solution that is compatible with that alternative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.28 173.10 Td (. If we are not successful, we could lose design wins with respect to that technology and our business and financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (results would be harmed. Moreover) Tj ET Q q 0 0 0 rg BT 191.56 161.10 Td (, once a competitor) Tj ET Q q 0 0 0 rg BT 268.57 161.10 Td () Tj ET Q q 0 0 0 rg BT 271.35 161.10 Td (s solution is chosen by a wireless carrier) Tj ET Q q 0 0 0 rg BT 432.29 161.10 Td (, OEM or ODM we will have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 149.10 Td (ficulty supplanting those solutions with ours.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 128.10 Td (e or our customers may be required to obtain licenses for certain so-called essential patents in order to comply with ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (applicable standards, which could require us to pay additional royalties on certain of our products. If we or our customers ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (are unable to obtain such licenses, our business, results of operations, financial condition and prospects would be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 83.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 83.10 Td (e or our customers may be required to obtain licenses for third-party intellectual property) Tj ET Q q 0 0 0 rg BT 437.76 83.10 Td (. In particular) Tj ET Q q 0 0 0 rg BT 491.50 83.10 Td (, we may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (required to obtain licenses to certain third-party patents, so-called essential patents, that claim features or functions that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.10 Td (incorporated into applicable industry standards and that we are required to provide in order to comply with the standard. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.10 Td (need to license any third-party intellectual property) Tj ET Q q 0 0 0 rg BT 253.77 47.10 Td (, essential patents or other technology) Tj ET Q q 0 0 0 rg BT 404.19 47.10 Td (, we could be required to pay royalties ) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (on certain of our products. In addition, while the industry standards bodies and antitrust laws in certain countries may require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (participating companies to license their essential patents on fair) Tj ET Q q 0 0 0 rg BT 302.90 710.10 Td (, reasonable, and nondiscriminatory terms, there can be no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (assurances that we will be able to obtain such licenses on commercially reasonable terms or at all. ) Tj ET Q q 0 0 0 rg BT 443.26 698.10 Td (Although we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (implemented a dedicated standard essential patents licensing-in reference policy) Tj ET Q q 0 0 0 rg BT 369.83 686.10 Td (, our inability to obtain required third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (intellectual property licenses on commercially reasonable terms or at all could harm our business, results of operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (financial condition or prospects. If our customers are required to obtain such licenses, there can be no assurances that their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (businesses will not be adversely af) Tj ET Q q 0 0 0 rg BT 187.90 650.10 Td (fected. In addition, if our competitors have significant numbers of essential patents and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (patent license rights, they could be at an advantage in negotiating with our customers or potential customers, which could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (influence our ability to win new business or could result in downward pressure on our average selling prices.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (If we fail to successfully develop, commercialize, produce and sell our module product line, our business, revenue and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (operating results may be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 572.10 Td (In 2013, we introduced a new product module line.Our modules incorporate many components in addition to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (chipsets. ) Tj ET Q q 0 0 0 rg BT 86.54 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 95.17 560.10 Td (e may lack the purchasing power to acquire at competitive prices certain components required to produce modules, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (and we do not expect to be able to command selling prices for those modules that allow us to maintain traditional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (semiconductor) Tj ET Q q 0 0 0 rg BT 108.17 536.10 Td (-only mar) Tj ET Q q 0 0 0 rg BT 147.15 536.10 Td (gins for the full module.Currently) Tj ET Q q 0 0 0 rg BT 284.25 536.10 Td (, and in the coming year at least, modules could represent a lar) Tj ET Q q 0 0 0 rg BT 533.98 536.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (portion of our revenue mix, which would negatively impact our overall gross mar) Tj ET Q q 0 0 0 rg BT 375.62 524.10 Td (gin.Certain lar) Tj ET Q q 0 0 0 rg BT 435.70 524.10 Td (ge customers may decide to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (buy the modules directly from the manufacturers who purchase our chipsets, rather than us, in order to reduce their costs. ) Tj ET Q q 0 0 0 rg BT 536.67 512.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (may result in a reduction of our revenue and gross profit, but an improvement of overall gross mar) Tj ET Q q 0 0 0 rg BT 443.10 500.10 Td (gin percentage, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (the case where we sell the modules ourselves.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 467.10 Td (Module components may be sourced from numerous dif) Tj ET Q q 0 0 0 rg BT 297.99 467.10 Td (ferent suppliers.Some of these components may periodically be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (in short supply or be subject to long lead times, which could af) Tj ET Q q 0 0 0 rg BT 300.66 455.10 Td (fect our ability to meet customer demand for our modules, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (therefore delaying our revenue. In addition, we rely on various contract manufacturers to produce our modules.If these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (manufacturers encounter any issues with production capacity) Tj ET Q q 0 0 0 rg BT 293.21 431.10 Td (, quality or reliability of their products, it could adversely af) Tj ET Q q 0 0 0 rg BT 532.96 431.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (our revenue and our reputation in the market. If our ability to expand our product platform is significantly delayed or if we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (unable to leverage our module as expected, our business and financial condition could be materially and adversely af) Tj ET Q q 0 0 0 rg BT 516.93 407.10 Td (fected.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 386.10 Td (If customers request from us, and we agree to provide, a wide variety of module variants or stock-keeping units, or SKUs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (to support dif) Tj ET Q q 0 0 0 rg BT 103.21 374.10 Td (ferent operators or dif) Tj ET Q q 0 0 0 rg BT 190.49 374.10 Td (ferent end-applications, our expenses associated with developing, sourcing and certifying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (our module products would increase.In addition, managing supply and demand across multiple SKUs may increase the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (possibility that we will under) Tj ET Q q 0 0 0 rg BT 165.96 350.10 Td (-or over) Tj ET Q q 0 0 0 rg BT 197.68 350.10 Td (-forecast a given SKU, resulting in either delayed revenue or excess inventory) Tj ET Q q 0 0 0 rg BT 509.70 350.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 329.10 Td (Participating in the module business could create a perception among our customers that we are competing with them if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (they are also in the module business, which could impair our chipset business prospects with such customers. ) Tj ET Q q 0 0 0 rg BT 488.96 317.10 Td (The module can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (be considered an end product with full L) Tj ET Q q 0 0 0 rg BT 211.03 305.10 Td (TE functionality; therefore, there is market pressure for us to sell our modules with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (standard essential IP) Tj ET Q q 0 0 0 rg BT 131.33 293.10 Td ( indemnification from manufacturers of products not normally incorporating a communication function.) Tj ET Q q 0 0 0 rg BT 549.09 293.10 Td (W) Tj ET Q q 0 0 0 rg BT 557.73 293.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (intend to negotiate license agreements for the module in order to of) Tj ET Q q 0 0 0 rg BT 318.40 281.10 Td (fer standard indemnification to our manufacturing partners, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (but there can be no assurance that we will be successful in obtaining licenses for standard essential IP) Tj ET Q q 0 0 0 rg BT 455.39 269.10 Td ( on acceptable terms.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 248.10 Td (e have significant ongoing capital requirements that could have a material ef) Tj ET Q q 0 0 0 rg BT 374.41 248.10 Td (fect on our business and financial condition ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (if we are unable to generate suf) Tj ET Q q 0 0 0 rg BT 179.31 236.10 Td (ficient cash from operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 215.10 Td (Our business requires significant capital investment to carry out extensive research and development in order to remain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (competitive.) Tj ET Q q 0 0 0 rg BT 101.16 203.10 Td (At the same time, demand for our products is highly variable and there have been downturns. If our cash on hand, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (net proceeds from financing activities and cash generated from operations are not suf) Tj ET Q q 0 0 0 rg BT 389.74 191.10 Td (ficient to fund our operations and capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (requirements, we may be required to limit our growth, or enter into financing arrangements at unfavorable terms, any of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (could harm our business and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 146.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 123.40 146.10 Td (, we anticipate that strategic alliances and partnerships will be an important source of revenue and possible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (financing for us going forward.If we are unable to develop alliances with or otherwise attract investment from strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (partners, or if strategic partners are not willing to enter into transactions with us on favorable terms, our business and financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (condition could be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 Td (A) Tj ET Q q 0 0 0 rg BT 55.62 89.10 Td ( portion of our software development and testing activity is outsourced to a third-party provider based in Kiev) Tj ET Q q 0 0 0 rg BT 503.30 89.10 Td (, Ukraine.If ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (political developments in Ukraine and Russia escalate to open hostilities, some of our product development activities and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (some customer software support activities could be adversely af) Tj ET Q q 0 0 0 rg BT 309.29 65.10 Td (fected.) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (While we have our key engineering competencies in-house, primarily in France, the United Kingdom and the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (States, we outsource some applications software development and testing activities to an independent third-party provider of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (engineering services.) Tj ET Q q 0 0 0 rg BT 136.23 698.10 Td (W) Tj ET Q q 0 0 0 rg BT 144.87 698.10 Td (e work with a dedicated team of 30 software engineers based in Kiev) Tj ET Q q 0 0 0 rg BT 420.23 698.10 Td (, Ukraine. ) Tj ET Q q 0 0 0 rg BT 461.88 698.10 Td (As a result of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (decision of the Russian government to annex the Crimea region of Ukraine, the United States and the European Community ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (have imposed economic sanctions on Russia.If Ukraine experiences further political instability) Tj ET Q q 0 0 0 rg BT 430.41 674.10 Td (, these engineers may be unable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (to work for a sustained period of time, which could adversely impact our research and development operations.) Tj ET Q q 0 0 0 rg BT 496.68 662.10 Td (W) Tj ET Q q 0 0 0 rg BT 505.32 662.10 Td (e also have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (our own electronic equipment physically in place in Kiev) Tj ET Q q 0 0 0 rg BT 278.23 650.10 Td (, which could be at risk in the event of violence in the region.) Tj ET Q q 0 0 0 rg BT 525.75 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 534.39 650.10 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (developed a contingency plan to trigger if the engineers in Kiev are unable to continue working on their projects for us, but if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (our contingency plan is not ef) Tj ET Q q 0 0 0 rg BT 168.46 626.10 Td (fective, we could suf) Tj ET Q q 0 0 0 rg BT 251.58 626.10 Td (fer delays in product introduction or delays in resolution of customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (software bugs, which could have a negative impact on our revenues.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 593.10 Td (e depend on a small number of customers for a significant portion of our revenue. If we fail to retain or expand customer ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (relationships, our business could be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 560.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 560.10 Td ( significant amount of our total revenue is attributable to a small number of customers, and we anticipate that this will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (continue to be the case for the foreseeable future. ) Tj ET Q q 0 0 0 rg BT 248.67 548.10 Td (These customers may decide not to purchase our semiconductor solutions at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (all, to purchase fewer semiconductor solutions than they did in the past or to alter the terms on which they purchase our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (products. In addition, to the extent that any customer represents a disproportionately high percentage of our accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (receivable, our exposure to that customer is further increased should they be unable or choose not to pay such accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (receivable on a timely basis or at all.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 479.10 Td (Our top ten customers accounted for 86%, 78% and 86% of our total revenue in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.07 479.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.07 479.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.07 479.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.07 479.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.51 479.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.51 479.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 532.17 479.10 Td (. ) Tj ET Q q 0 0 0 rg BT 536.99 479.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (following table summarizes customers representing a significant portion of total revenue:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 432.6 m 285 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 432.6 m 289 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 432.6 m 362 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 432.6 m 366 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 432.6 m 440 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 432.6 m 552 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 432.6 m 285 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 420.6 m 285 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 420.6 m 362 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 432.6 m 440 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 420.6 m 440 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 420.6 m 552 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 420.6 m 285 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 420.6 m 362 420.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 436.85 Td (Customer) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.55 436.85 Td (% of total revenues for the year ended December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.15 444.85 Td (%ofouraccountsreceivableat) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.05 436.85 Td (December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 424.55 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.50 424.55 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 317.00 424.55 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.50 424.55 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.50 424.55 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 411.17 Td (A) Tj ET Q q 0 0 0 rg BT 59.17 411.17 Td (TM Electronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.60 411.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.15 411.17 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 411.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 411.17 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 411.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 411.17 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 411.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 397.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 397.17 Td (echfront) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.60 397.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.60 397.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 397.17 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 397.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 397.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 397.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 383.17 Td (Comtech) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.15 383.17 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.15 383.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.15 383.17 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 383.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.60 383.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 383.17 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 383.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 369.17 Td (Gemtek) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.15 369.17 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.15 369.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.60 369.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.60 369.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 369.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 344.10 Td (A) Tj ET Q q 0 0 0 rg BT 79.61 344.10 Td (TM is a distributor who serves multiple customers in China and ) Tj ET Q q 0 0 0 rg BT 336.90 344.10 Td (T) Tj ET Q q 0 0 0 rg BT 342.31 344.10 Td (aiwan. ) Tj ET Q q 0 0 0 rg BT 371.00 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 379.64 344.10 Td (e expect that some of these customers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (particularly those above 10% during 2018, could each continue to represent at least 10% of our revenue in 2019 as the market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (for single-mode L) Tj ET Q q 0 0 0 rg BT 120.78 320.10 Td (TE devices is in its early stages and is still concentrated in a relatively small number of device makers.) Tj ET Q q 0 0 0 rg BT 533.81 320.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (loss of any significant customer) Tj ET Q q 0 0 0 rg BT 176.30 308.10 Td (, a significant reduction in sales we make to them in general or during any period, or any issues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (with collection of receivables from customers would harm our financial condition and results of operations. Furthermore, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (must obtain orders from new customers on an ongoing basis to increase our revenue and grow our business. If we fail to expand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (our customer relationships, our business could be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 251.10 Td (Consolidation among our customers could also lead to increased customer bar) Tj ET Q q 0 0 0 rg BT 385.46 251.10 Td (gaining power) Tj ET Q q 0 0 0 rg BT 442.55 251.10 Td (, or reduced customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (spending. Further) Tj ET Q q 0 0 0 rg BT 122.15 239.10 Td (, new business may be delayed if a key customer uses its leverage to push for terms that are worse for us and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (we nonetheless continue to negotiate for better terms, in which case revenue in any particular quarter or year may fail to meet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (expectations. ) Tj ET Q q 0 0 0 rg BT 103.93 215.10 Td (Also, the loss of any of these customers or the failure to secure new contracts with these customers could further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (increase our reliance on our remaining customers. Further) Tj ET Q q 0 0 0 rg BT 280.68 203.10 Td (, if any of our key customers default, declare bankruptcy or otherwise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (delay or fail to pay amounts owed, or we otherwise have a dispute with any of these customers, our results of operations would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (be negatively af) Tj ET Q q 0 0 0 rg BT 113.18 179.10 Td (fected in the short term and possibly the long term. ) Tj ET Q q 0 0 0 rg BT 319.34 179.10 Td (These customers may seek to renegotiate pre-existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (contractual commitments due to adverse changes in their own businesses or) Tj ET Q q 0 0 0 rg BT 351.79 167.10 Td (, in some cases, take advantage of contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (provisions that permit the suspension of contracted work for some period if their business experiences a financial hardship, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (which would harm our operating results. ) Tj ET Q q 0 0 0 rg BT 214.01 143.10 Td (T) Tj ET Q q 0 0 0 rg BT 219.42 143.10 Td (o the extent, our customer experiences liquidity constraints, we may incur bad debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (expense, which may have a significant impact on its results of operations. Major customers may also seek pricing, payment, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (intellectual property-related, or other commercial terms that are less favorable to us, which may have a negative impact on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (business, cash flow) Tj ET Q q 0 0 0 rg BT 126.34 107.10 Td (, revenue and gross mar) Tj ET Q q 0 0 0 rg BT 221.40 107.10 Td (gins. In addition, these events could cause significant fluctuations in results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (operations because our expenses are fixed in the short term and it takes us a long time to replace customers or reassign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (resources.) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (10) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 722.25 Td (e depend on one independent foundry to manufacture our products and do not have a long-term agreement with such ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (foundry) Tj ET Q q 0 0 0 rg BT 81.91 710.25 Td (, and loss of this foundry or our failure to obtain suf) Tj ET Q q 0 0 0 rg BT 296.78 710.25 Td (ficient foundry capacity would significantly delay our ability to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (ship our products, cause us to lose revenue and market share and damage our customer relationships.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 677.25 Td (Access to foundry capacity is critical to our business because we are a fabless semiconductor company) Tj ET Q q 0 0 0 rg BT 484.10 677.25 Td (. ) Tj ET Q q 0 0 0 rg BT 488.92 677.25 Td (W) Tj ET Q q 0 0 0 rg BT 497.55 677.25 Td (e depend on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (sole independent foundry) Tj ET Q q 0 0 0 rg BT 150.49 665.25 Td (, ) Tj ET Q q 0 0 0 rg BT 155.31 665.25 Td (T) Tj ET Q q 0 0 0 rg BT 160.72 665.25 Td (aiwan Semiconductor Manufacturing Company Limited, or ) Tj ET Q q 0 0 0 rg BT 400.76 665.25 Td (TSMC, in ) Tj ET Q q 0 0 0 rg BT 443.09 665.25 Td (T) Tj ET Q q 0 0 0 rg BT 448.50 665.25 Td (aiwan to manufacture our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (semiconductor wafers. Because we outsource our manufacturing to a single foundry) Tj ET Q q 0 0 0 rg BT 385.13 653.25 Td (, we face several significant risks, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 629.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 629.25 Td (constraints in or unavailability of manufacturing capacity;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 617.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 617.25 Td (limited control over delivery schedules, quality assurance and control, manufacturing yields and production costs;and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 605.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 605.25 Td (the unavailability of, or potential delays in obtaining access to, key process technologies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 584.25 Td (If we do not accurately forecast our capacity needs, ) Tj ET Q q 0 0 0 rg BT 281.55 584.25 Td (TSMC may not have available capacity to meet our immediate needs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (or we may be required to pay higher costs to fulfill those needs, either of which could harm our business, results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 539.25 Td (The ability of ) Tj ET Q q 0 0 0 rg BT 130.25 539.25 Td (TSMC to provide us with semiconductor wafers is limited at any given time by their available capacity) Tj ET Q q 0 0 0 rg BT 541.72 539.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (we do not have a guaranteed level of manufacturing capacity) Tj ET Q q 0 0 0 rg BT 292.35 527.25 Td (. ) Tj ET Q q 0 0 0 rg BT 297.17 527.25 Td (W) Tj ET Q q 0 0 0 rg BT 305.81 527.25 Td (e do not have any agreement with ) Tj ET Q q 0 0 0 rg BT 443.08 527.25 Td (TSMC and place our orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (on a purchase order basis. ) Tj ET Q q 0 0 0 rg BT 155.02 515.25 Td (As a result, if ) Tj ET Q q 0 0 0 rg BT 211.22 515.25 Td (TSMC raises its prices or is not able to satisfy our required capacity for any reason, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (including natural or other disasters, allocates capacity to lar) Tj ET Q q 0 0 0 rg BT 287.29 503.25 Td (ger customers or to dif) Tj ET Q q 0 0 0 rg BT 377.64 503.25 Td (ferent sectors of the semiconductor industry) Tj ET Q q 0 0 0 rg BT 552.77 503.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (experiences labor issues or shortages or delays in shipment of semiconductor equipment or materials used in the manufacture of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (our semiconductors, or if our business relationship with ) Tj ET Q q 0 0 0 rg BT 274.56 479.25 Td (TSMC deteriorates, we may not be able to obtain the required capacity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (and would have to seek alternative foundries, which may not be available on commercially reasonable terms, in a timely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (manner) Tj ET Q q 0 0 0 rg BT 79.08 455.25 Td (, or at all.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 434.25 Td (Locating and qualifying a new foundry would require a significant amount of time, which would result in a delay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (production of our products. In addition, using foundries with which we have no established relationship could expose us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (unfavorable pricing and terms, delays in developing and qualifying new products, unsatisfactory quality or insuf) Tj ET Q q 0 0 0 rg BT 498.65 410.25 Td (ficient capacity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (allocation. ) Tj ET Q q 0 0 0 rg BT 93.75 398.25 Td (W) Tj ET Q q 0 0 0 rg BT 102.39 398.25 Td (e place our orders on the basis of our customers) Tj ET Q q 0 0 0 rg BT 295.75 398.25 Td ( purchase orders and sales forecasts; however) Tj ET Q q 0 0 0 rg BT 477.50 398.25 Td (, foundries can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (allocate capacity to the production of other companies) Tj ET Q q 0 0 0 rg BT 268.95 386.25 Td ( products and reduce deliveries to us on short notice. Many of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (customers of ) Tj ET Q q 0 0 0 rg BT 103.20 374.25 Td (TSMC, or foundries that we may use in the future, are lar) Tj ET Q q 0 0 0 rg BT 332.67 374.25 Td (ger than we are, or have long-term agreements with such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (foundries, and as a result, those customers may receive preferential treatment from the foundries in terms of price, capacity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (allocation and payment terms. ) Tj ET Q q 0 0 0 rg BT 171.97 350.25 Td (Any delay in qualifying a new foundry or production issues with any new foundry would result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (in lost sales and could damage our relationship with existing and future customers as well as our reputation in the market.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (If our foundry vendor does not achieve satisfactory yields or quality) Tj ET Q q 0 0 0 rg BT 327.45 317.25 Td (, our reputation and customer relationships could be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 305.25 Td (harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 284.25 Td (The fabrication of semiconductor solutions such as ours is a complex and technically demanding process. Minor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (deviations in the manufacturing process can cause substantial decreases in yields, and in some cases, cause production to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (suspended. ) Tj ET Q q 0 0 0 rg BT 95.98 260.25 Td (TSMC, or foundries that we may use in the future, could, from time to time, experience manufacturing defects and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (reduced manufacturing yields. Changes in manufacturing processes or the inadvertent use of defective or contaminated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (materials by our foundry vendor could result in lower than anticipated manufacturing yields or unacceptable performance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.25 Td (Many of these problems are dif) Tj ET Q q 0 0 0 rg BT 174.56 224.25 Td (ficult to detect at an early stage of the manufacturing process and may be time consuming and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (expensive to correct. Poor yields from our foundry vendor) Tj ET Q q 0 0 0 rg BT 282.09 212.25 Td (, or defects, integration issues or other performance problems in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (semiconductor solutions could cause us significant customer relations and business reputation problems, harm our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (results and result in financial or other damages to our customers. In addition, because we have a sole supplier of wafers, these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (risks are magnified because we do not have an alternative source to purchase from should these risks materialize. If ) Tj ET Q q 0 0 0 rg BT 513.59 176.25 Td (TSMC fails ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (to provide satisfactory products to us, we would be required to identify and qualify other sources, which could take a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (amount of time and would result in lost sales. In addition, we indemnify our customers for losses resulting from defects in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (products, which costs could be substantial. ) Tj ET Q q 0 0 0 rg BT 222.25 140.25 Td (A) Tj ET Q q 0 0 0 rg BT 228.92 140.25 Td ( product liability or other indemnification claim brought against us, even if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (unsuccessful, would likely be time-consuming and costly to defend.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 107.25 Td (Our customers may cancel their orders, change production quantities or delay production, and if we fail to forecast demand ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 95.25 Td (for our products accurately) Tj ET Q q 0 0 0 rg BT 161.63 95.25 Td (, we may incur product shortages, delays in product shipments or excess or insuf) Tj ET Q q 0 0 0 rg BT 492.87 95.25 Td (ficient product ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 83.25 Td (inventory) Tj ET Q q 0 0 0 rg BT 88.02 83.25 Td (, which could harm our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 62.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 62.25 Td (e do not have firm, long-term purchase commitments from our customers. Substantially all of our sales are made on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.25 Td (purchase order basis, and in most cases, our customers are not contractually committed to buy any quantity of products from us ) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 33.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 33.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (beyond firm purchase orders. ) Tj ET Q q 0 0 0 rg BT 171.13 722.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 221.03 722.10 Td (, customers may cancel, change or delay purchase orders already in place with little ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (or no notice to us. Because production lead times often exceed the amount of time required to fulfill orders, we often must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (manufacture in advance of orders, relying on an imperfect demand forecast to project volumes and product mix. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (accurately forecast demand can be harmed by a number of factors, including inaccurate forecasting by our customers, changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (in market conditions, changes in our product order mix and demand for our customers) Tj ET Q q 0 0 0 rg BT 396.44 674.10 Td ( products. Even after an order is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (received, our customers may cancel these orders or request a decrease in production quantities. ) Tj ET Q q 0 0 0 rg BT 431.02 662.10 Td (Any such cancellation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (decrease subjects us to a number of risks, most notably) Tj ET Q q 0 0 0 rg BT 268.80 650.10 Td (, that our projected sales will not materialize on schedule or at all, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (leading to unanticipated revenue shortfalls and excess or obsolete inventory) Tj ET Q q 0 0 0 rg BT 351.81 638.10 Td (, which we may be unable to sell to other customers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (Alternatively) Tj ET Q q 0 0 0 rg BT 101.61 626.10 Td (, if we are unable to project customer requirements accurately) Tj ET Q q 0 0 0 rg BT 348.07 626.10 Td (, we may not manufacture enough semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (solutions, which could lead to delays in product shipments and lost sales opportunities in the near term, as well as force our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (customers to identify alternative sources, which could af) Tj ET Q q 0 0 0 rg BT 275.36 602.10 Td (fect our ongoing relationships with these customers. ) Tj ET Q q 0 0 0 rg BT 486.25 602.10 Td (W) Tj ET Q q 0 0 0 rg BT 494.89 602.10 Td (e have in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (past had customers significantly increase their requested production quantities with little or no advance notice. If we do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (fulfill customer demands in a timely manner) Tj ET Q q 0 0 0 rg BT 226.83 578.10 Td (, our customers may cancel their orders, and we may be subject to customer claims ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (for cost of replacement. Underestimating or overestimating demand would lead to insuf) Tj ET Q q 0 0 0 rg BT 399.77 566.10 Td (ficient, excess or obsolete inventory and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (could harm our operating results, cash flow and financial condition, as well as our relationships with our customers and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (reputation in the marketplace.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (If customers do not design our semiconductor solutions into their product of) Tj ET Q q 0 0 0 rg BT 363.54 521.10 Td (ferings, or if our customers) Tj ET Q q 0 0 0 rg BT 478.64 521.10 Td ( product of) Tj ET Q q 0 0 0 rg BT 523.46 521.10 Td (ferings ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (are not commercially successful, our revenue and our business would be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 488.10 Td (e sell our semiconductor solutions directly to OEMs who include them in their products, and to ODMs who include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (them in their products that they supply to OEMs. ) Tj ET Q q 0 0 0 rg BT 247.26 476.10 Td (As a result, we rely on OEMs to design our semiconductor solutions into the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (products they sell. Because our semiconductor solutions are generally a critical component of our customers) Tj ET Q q 0 0 0 rg BT 485.01 464.10 Td ( products, they are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (typically incorporated into our customers) Tj ET Q q 0 0 0 rg BT 217.04 452.10 Td ( products at the design stage, and the sales cycle typically takes 12 months or more to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (complete. ) Tj ET Q q 0 0 0 rg BT 90.97 440.10 Td (W) Tj ET Q q 0 0 0 rg BT 100.01 440.10 Td (ithout these design wins, our revenue and our business would be significantly harmed. ) Tj ET Q q 0 0 0 rg BT 447.26 440.10 Td (W) Tj ET Q q 0 0 0 rg BT 455.90 440.10 Td (e often incur significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (expenditures on the development of a new semiconductor solution without any assurance that an OEM will select our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (semiconductor solution for design into its own product. Because the types of semiconductor solutions we sell are a critical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (aspect of an OEM) Tj ET Q q 0 0 0 rg BT 124.75 404.10 Td (s product, once an OEM designs a competitor) Tj ET Q q 0 0 0 rg BT 307.86 404.10 Td () Tj ET Q q 0 0 0 rg BT 310.64 404.10 Td (s semiconductor into its product of) Tj ET Q q 0 0 0 rg BT 449.60 404.10 Td (fering, it becomes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (significantly more dif) Tj ET Q q 0 0 0 rg BT 135.96 392.10 Td (ficult for us to sell our semiconductor solutions to that customer for a particular product of) Tj ET Q q 0 0 0 rg BT 497.64 392.10 Td (fering as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (changing suppliers involves significant cost, time, ef) Tj ET Q q 0 0 0 rg BT 259.83 380.10 Td (fort and risk for the customer) Tj ET Q q 0 0 0 rg BT 376.19 380.10 Td (. Further) Tj ET Q q 0 0 0 rg BT 410.23 380.10 Td (, if we are unable to develop new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (products in a timely manner for inclusion in such products, or if major defects or errors that might significantly impair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (performance or standards compliance are found in our products after inclusion by an OEM, OEMs will be unlikely to include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (our semiconductor solutions into their products and our reputation in the market and future prospects would be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 323.10 Td (Furthermore, even if an OEM designs one of our semiconductor solutions into its product of) Tj ET Q q 0 0 0 rg BT 442.42 323.10 Td (fering, we cannot be assured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (that its product will be commercially successful and that we will receive any revenue from that OEM. ) Tj ET Q q 0 0 0 rg BT 458.63 311.10 Td (This risk is heightened ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (because 4G technology is rapidly emer) Tj ET Q q 0 0 0 rg BT 205.10 299.10 Td (ging and many of our customers, particularly in the Internet of ) Tj ET Q q 0 0 0 rg BT 457.07 299.10 Td (Things market, do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (have significant experience designing products utilizing 4G technology) Tj ET Q q 0 0 0 rg BT 334.05 287.10 Td (. If our customers) Tj ET Q q 0 0 0 rg BT 407.18 287.10 Td ( products incorporating our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (semiconductor solutions fail to meet the demands of their customers or otherwise fail to achieve market acceptance, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (revenue and business would be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (If we are unable to compete ef) Tj ET Q q 0 0 0 rg BT 173.74 242.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 207.22 242.10 Td (, we may not increase or maintain our revenue or market share, which would harm ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 209.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 209.10 Td (e may not be able to compete successfully against current or potential competitors. If we do not compete successfully) Tj ET Q q 0 0 0 rg BT 551.06 209.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (our revenue and market share may decline.In the L) Tj ET Q q 0 0 0 rg BT 254.60 197.10 Td (TE market, we face or expect to face competition from established ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (semiconductor companies such as ) Tj ET Q q 0 0 0 rg BT 187.24 185.10 Td (Altair Semiconductor \(a Sony Corporation subsidiary\), HiSilicon ) Tj ET Q q 0 0 0 rg BT 450.36 185.10 Td (T) Tj ET Q q 0 0 0 rg BT 455.77 185.10 Td (echnologies \(a Huawei ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (subsidiary\), Mediatek, Nordic Semiconductor) Tj ET Q q 0 0 0 rg BT 232.11 173.10 Td (, Qualcomm Incorporated, Samsung Electronics Co. Ltd. and Spreadtrum, as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (as smaller actors in the market such as GCT) Tj ET Q q 0 0 0 rg BT 225.38 161.10 Td ( Semiconductor) Tj ET Q q 0 0 0 rg BT 287.87 161.10 Td (.Many of our competitors have longer operating histories, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (significantly greater resources and name recognition, and a lar) Tj ET Q q 0 0 0 rg BT 298.38 149.10 Td (ger base of existing customers than us. ) Tj ET Q q 0 0 0 rg BT 455.39 149.10 Td (The significant resources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (of these lar) Tj ET Q q 0 0 0 rg BT 93.74 137.10 Td (ger competitors may allow them to respond more quickly than us to new or emer) Tj ET Q q 0 0 0 rg BT 416.81 137.10 Td (ging technologies or changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (customer requirements or to bring new products to market in a more timely manner than us. For example, some competitors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (may have greater access or rights to complementary technologies, including GNSS \(GPS\), blue tooth, sensors, graphic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (processing, etc., and we may need to develop or acquire complementary technologies or partner with others to bring to market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 Td (solutions that integrate enhanced functionalities.) Tj ET Q q 0 0 0 rg BT 245.37 89.10 Td (W) Tj ET Q q 0 0 0 rg BT 254.01 89.10 Td (e expect to pursue such transactions or partnerships if appropriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (opportunities arise. However) Tj ET Q q 0 0 0 rg BT 167.40 77.10 Td (, we may not be able to identify suitable transactions or partners in the future, or if we do identify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (such transactions or partners, we may not be able to complete them on commercially acceptable terms, or at all. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.10 Td (these competitors may have greater credibility with our existing and potential customers. Further) Tj ET Q q 0 0 0 rg BT 436.49 53.10 Td (, many of these competitors are ) Tj ET Q endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (located in ) Tj ET Q q 0 0 0 rg BT 90.60 722.10 Td (Asia or have a significant presence and operating history in ) Tj ET Q q 0 0 0 rg BT 329.97 722.10 Td (Asia and, as a result, may be in a better position than we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (are to work with manufacturers and customers located in ) Tj ET Q q 0 0 0 rg BT 278.59 710.10 Td (Asia. Moreover) Tj ET Q q 0 0 0 rg BT 340.95 710.10 Td (, many of our competitors have been doing business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (with customers for a longer period of time and have well-established relationships, which may provide them with advantages, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (including access to information regarding future trends and requirements that may not be available to us. In addition, some of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (our competitors may provide incentives to customers or of) Tj ET Q q 0 0 0 rg BT 283.15 674.10 Td (fer bundled solutions with complementary products, which could be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (attractive to some customers, or adopt more aggressive pricing policies, which may make it dif) Tj ET Q q 0 0 0 rg BT 428.66 662.10 Td (ficult for us to gain or maintain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (market share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 629.10 Td (Our ability to compete ef) Tj ET Q q 0 0 0 rg BT 173.84 629.10 Td (fectively will depend on a number of factors, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 617.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 617.10 Td (our ability to anticipate market and technology trends and successfully develop products that meet market needs;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 605.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 605.10 Td (our ability to deliver products in lar) Tj ET Q q 0 0 0 rg BT 227.11 605.10 Td (ge volume on a timely basis at competitive prices;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 593.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 593.10 Td (our success in identifying and penetrating new markets, applications and customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 581.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 581.10 Td (our ability to accurately understand the price points and performance metrics of competing products in the market;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 569.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 569.10 Td (our products) Tj ET Q q 0 0 0 rg BT 137.96 569.10 Td ( performance and cost-ef) Tj ET Q q 0 0 0 rg BT 237.44 569.10 Td (fectiveness relative to those of our competitors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 557.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 557.10 Td (our ability to develop and maintain relationships with key customers, wireless carriers, OEMs and ODMs;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 545.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 545.10 Td (our ability to secure suf) Tj ET Q q 0 0 0 rg BT 179.34 545.10 Td (ficient high-quality supply for our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 533.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 533.10 Td (our ability to conform to industry standards while developing new and proprietary technologies to of) Tj ET Q q 0 0 0 rg BT 487.60 533.10 Td (fer products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 521.10 Td (features previously not available in the 4G market; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 509.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 509.10 Td (our ability to develop or acquire complementary technologies or to partner with others to bring to market products with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 497.10 Td (enhanced functionalities; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 485.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 485.10 Td (our ability to recruit design and application engineers with expertise in wireless broadband communications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 473.10 Td (technologies and sales and marketing personnel.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (If we experience material changes to the competitive structure of our industry due to cooperation or consolidation among ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (our competitors, we may not increase or sustain our revenue or market share, which would harm our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 423.10 Td (Our current or future competitors may establish cooperative relationships among themselves or with third parties. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (addition, there has been consolidation within our industry over the past several years, notably the acquisition of smaller ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (competitors by lar) Tj ET Q q 0 0 0 rg BT 122.08 399.10 Td (ger competitors with significantly greater resources than ours. ) Tj ET Q q 0 0 0 rg BT 372.10 399.10 Td (These events may result in the emer) Tj ET Q q 0 0 0 rg BT 515.75 399.10 Td (gence of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (new competitors with greater resources and scale than ours that could acquire significant market share, which could result in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (decline of our revenue and market share. Our ability to maintain our revenue and market share will depend on our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (compete ef) Tj ET Q q 0 0 0 rg BT 93.46 363.10 Td (fectively despite material changes in industry structure. If we are unable to do so, we may not increase or sustain our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.10 Td (revenue or market share, which would harm our business. In addition, actual or speculated consolidation among competitors, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (the acquisition by) Tj ET Q q 0 0 0 rg BT 119.95 339.10 Td (, or of, our partners and/or resellers by competitors can increase the competitive pressures faced by us as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (customers may delay spending decisions or not purchase our products at all. Consolidation could also delay spending or require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (us to reduce the prices of our products to compete, which could also adversely af) Tj ET Q q 0 0 0 rg BT 372.83 315.10 Td (fect our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (If we are unable to ef) Tj ET Q q 0 0 0 rg BT 137.37 294.10 Td (fectively manage our business through periods of economic or market slow-down and any subsequent ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (future growth, we may not be able to execute our business plan and our operating results could suf) Tj ET Q q 0 0 0 rg BT 456.04 282.10 Td (fer) Tj ET Q q 0 0 0 rg BT 467.15 282.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 261.10 Td (Our future operating results depend to a lar) Tj ET Q q 0 0 0 rg BT 245.76 261.10 Td (ge extent on our ability to successfully manage our business through periods of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.10 Td (economic or market slow-down, and periods of subsequent expansion and growth. ) Tj ET Q q 0 0 0 rg BT 381.19 249.10 Td (T) Tj ET Q q 0 0 0 rg BT 386.60 249.10 Td (o manage our growth successfully and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (handle the responsibilities of being a public company) Tj ET Q q 0 0 0 rg BT 262.41 237.10 Td (, we believe we must, among other things, ef) Tj ET Q q 0 0 0 rg BT 441.35 237.10 Td (fectively:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 225.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 225.10 Td (recruit, hire, train and manage additional qualified engineers for our research and development activities, especially in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 213.10 Td (the positions of design engineering, product and test engineering, and applications engineering;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 201.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 201.10 Td (add additional sales personnel and expand sales of) Tj ET Q q 0 0 0 rg BT 286.25 201.10 Td (fices;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 189.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 189.10 Td (add additional finance and accounting personnel;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 177.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 177.10 Td (implement and improve our administrative, financial and operational systems, procedures and controls; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 165.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 165.10 Td (enhance our information technology support for enterprise resource planning and design engineering by adapting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 153.10 Td (expanding our systems and tool capabilities, and properly training new hires as to their use.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 132.10 Td (Furthermore, to remain competitive and manage future expansion and growth, we must carry out extensive research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.10 Td (development, which requires significant capital investment. New competitors, technological advances in the semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (industry or by competitors, our entry into new markets, or other competitive factors may require us to invest significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.10 Td (greater resources than we anticipate. If we are required to invest significantly greater resources than anticipated without a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.10 Td (corresponding increase in revenue, our operating results could decline. ) Tj ET Q q 0 0 0 rg BT 334.12 84.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 384.03 84.10 Td (, our periodic research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.10 Td (expenses may be independent of our level of revenue, which could negatively impact our financial results. Finally) Tj ET Q q 0 0 0 rg BT 504.82 72.10 Td (, there can be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.10 Td (no guarantee that our research and development investments will result in products that create additional revenue.) Tj ET Q endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (During periods of economic or market slow-down, we must also ef) Tj ET Q q 0 0 0 rg BT 341.31 722.10 Td (fectively manage our expenses to preserve our ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (to carry out such research and development. ) Tj ET Q q 0 0 0 rg BT 228.14 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 237.18 710.10 Td (ith our initial success in introducing new L) Tj ET Q q 0 0 0 rg BT 407.62 710.10 Td (TE products and gaining design wins ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (during 2015, we increased our investment in research and development in 2016, as well as sales and marketing, general and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (administrative and other functions to support the growth of our business and maintained them at about the same level in 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (In 2018, as we expected that the market for our CatM solutions would begin ramping significantly) Tj ET Q q 0 0 0 rg BT 442.10 674.10 Td (, we increased our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (in research and development and sales in marketing. In addition, a stronger euro versus the U.S. dollar) Tj ET Q q 0 0 0 rg BT 460.93 662.10 Td (, resulted in increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (operating expenses in 2018. Given the delay experienced in the ramp in the CatM market, we intend to reduce operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (expenses somewhat in 2019. ) Tj ET Q q 0 0 0 rg BT 168.74 638.10 Td (W) Tj ET Q q 0 0 0 rg BT 177.38 638.10 Td (e are likely to incur product and market development costs earlier than some of the anticipated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (benefits, and the return on these investments, if any) Tj ET Q q 0 0 0 rg BT 254.91 626.10 Td (, may be lower) Tj ET Q q 0 0 0 rg BT 313.93 626.10 Td (, may develop more slowly than we expect, or may not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (materialize at all, which could harm our operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 593.10 Td (If we are unable to manage our business during both periods of economic or market slow-down and periods of growth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 581.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 91.42 581.10 Td (, we may not be able to take advantage of market opportunities or develop new products, and we may fail to satisfy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (customer requirements, maintain product quality) Tj ET Q q 0 0 0 rg BT 243.52 569.10 Td (, execute our business plan or respond to competitive pressures, any of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (could harm our operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (The average selling prices of our semiconductor solutions have historically decreased over time and will likely do so in the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (future, which could harm our gross profits and financial results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 503.10 Td (A) Tj ET Q q 0 0 0 rg BT 79.98 503.10 Td (verage selling prices of our semiconductor solutions have historically decreased over time, and we expect such declines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (to continue to occur) Tj ET Q q 0 0 0 rg BT 128.65 491.10 Td (. Our gross profits and financial results will suf) Tj ET Q q 0 0 0 rg BT 317.04 491.10 Td (fer if we are unable to of) Tj ET Q q 0 0 0 rg BT 415.70 491.10 Td (fset reductions in our average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (selling prices by reducing our costs, developing new or enhanced semiconductor solutions on a timely basis with higher selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (prices or gross profits, or increasing our sales volumes. Even if we are successful in reducing our costs or improving sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (volumes, such improvements may not be suf) Tj ET Q q 0 0 0 rg BT 227.90 455.10 Td (ficient to of) Tj ET Q q 0 0 0 rg BT 274.37 455.10 Td (fset declines in average selling prices in the future. ) Tj ET Q q 0 0 0 rg BT 479.30 455.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 529.20 455.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (because we do not operate our own manufacturing, assembly or testing facilities, we may not be able to reduce our costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (our costs may even increase, either of which would reduce our mar) Tj ET Q q 0 0 0 rg BT 317.55 431.10 Td (gins. ) Tj ET Q q 0 0 0 rg BT 339.04 431.10 Td (W) Tj ET Q q 0 0 0 rg BT 347.68 431.10 Td (e have reduced the prices of our semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (solutions in line with, and at times in advance of, competitive pricing pressures, new product introductions by us or our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (competitors and other factors. ) Tj ET Q q 0 0 0 rg BT 171.22 407.10 Td (W) Tj ET Q q 0 0 0 rg BT 179.86 407.10 Td (e expect that we will have to do so again in the future.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Any increase in the manufacturing cost of our products would reduce our gross margins and operating profit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 365.10 Td (The semiconductor business is characterized by ongoing competitive pricing pressure from customers and competitors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 98.84 353.10 Td (, any increase in the cost of our products, whether by adverse purchase price or manufacturing cost variances or due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (to other factors, will reduce our gross mar) Tj ET Q q 0 0 0 rg BT 217.04 341.10 Td (gins and operating profit. ) Tj ET Q q 0 0 0 rg BT 320.45 341.10 Td (W) Tj ET Q q 0 0 0 rg BT 329.09 341.10 Td (e do not have long-term supply agreements with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (manufacturing, testing or assembly suppliers, and we typically negotiate pricing on a purchase order by purchase order basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (Consequently) Tj ET Q q 0 0 0 rg BT 103.85 317.10 Td (, we may not be able to obtain price reductions, or anticipate or prevent future price increases from our suppliers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (Because we have a sole supplier of wafers and limited sources of testing and assembly) Tj ET Q q 0 0 0 rg BT 394.86 305.10 Td (, we may not be able to negotiate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (favorable pricing terms from our suppliers. ) Tj ET Q q 0 0 0 rg BT 223.99 293.10 Td (These and other related factors could impair our ability to control our costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (could harm our operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (The semiconductor and communications industries have historically experienced significant fluctuations with prolonged ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (downturns, which could impact our operating results, financial condition and cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 227.10 Td (The semiconductor industry has historically been cyclical, experiencing significant downturns in customer demand. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (Because a significant portion of our expenses is fixed in the near term or is incurred in advance of anticipated sales, we may not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (be able to decrease our expenses rapidly enough to of) Tj ET Q q 0 0 0 rg BT 263.41 203.10 Td (fset any unanticipated shortfall in revenue. If this situation occurs, it could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (harm our operating results, cash flow and financial condition. Furthermore, the semiconductor industry has periodically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (experienced periods of increased demand and production constraints. If this occurs, we may not be able to obtain suf) Tj ET Q q 0 0 0 rg BT 515.84 179.10 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (quantities of our semiconductor solutions to meet the increased demand, resulting in lost sales, loss of market share and harm to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (our customer relationships. ) Tj ET Q q 0 0 0 rg BT 160.41 155.10 Td (W) Tj ET Q q 0 0 0 rg BT 169.05 155.10 Td (e may also have dif) Tj ET Q q 0 0 0 rg BT 246.61 155.10 Td (ficulty in obtaining suf) Tj ET Q q 0 0 0 rg BT 337.81 155.10 Td (ficient assembly and testing resources from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (subcontract manufacturers. ) Tj ET Q q 0 0 0 rg BT 159.73 143.10 Td (Any factor adversely af) Tj ET Q q 0 0 0 rg BT 253.67 143.10 Td (fecting the semiconductor industry in general, or the particular segments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (the industry that we tar) Tj ET Q q 0 0 0 rg BT 141.52 131.10 Td (get, may harm our ability to generate revenue and could negatively impact our operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 110.10 Td (The communications industry has experienced pronounced downturns, and these cycles may continue in the future. ) Tj ET Q q 0 0 0 rg BT 536.42 110.10 Td (A) Tj ET Q q 0 0 0 rg BT 543.09 110.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (future decline in global economic conditions could have adverse, wide-ranging ef) Tj ET Q q 0 0 0 rg BT 375.59 98.10 Td (fects on demand for our semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (solutions and for the products of our customers, particularly wireless communications equipment manufacturers or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (participants in the wireless industry) Tj ET Q q 0 0 0 rg BT 191.04 74.10 Td (, such as wireless carriers. Inflation, deflation and economic recessions that harm the global ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (economy and capital markets also harm our customers and our end consumers. Specifically) Tj ET Q q 0 0 0 rg BT 414.02 62.10 Td (, the continued deployment of new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (4G networks requires significant capital expenditures and wireless carriers may choose not to undertake network expansion ) Tj ET Q endstream endobj 35 0 obj <> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 722.10 Td (forts during an economic downturn or time of other economic uncertainty) Tj ET Q q 0 0 0 rg BT 351.35 722.10 Td (. Our customers) Tj ET Q q 0 0 0 rg BT 417.54 722.10 Td ( ability to purchase or pay for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (semiconductor solutions and services, obtain financing and upgrade wireless networks could be harmed, and networking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (equipment providers may slow their research and development activities, cancel or delay new product development, reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (their inventories and take a cautious approach to acquiring our products, which would have a significant negative impact on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (business. If such economic situations were to occur) Tj ET Q q 0 0 0 rg BT 254.60 674.10 Td (, our operating results, cash flow and financial condition could be harmed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (In the future, any of these trends may also cause our operating results to fluctuate significantly from year to year) Tj ET Q q 0 0 0 rg BT 498.39 662.10 Td (, which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (increase the volatility of the price of the ) Tj ET Q q 0 0 0 rg BT 211.11 650.10 Td (ADSs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (Though we rely to a significant extent on proprietary intellectual property) Tj ET Q q 0 0 0 rg BT 352.46 629.10 Td (, we may not be able to obtain, or may choose not ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (to obtain, suf) Tj ET Q q 0 0 0 rg BT 103.50 617.10 Td (ficient intellectual property rights to provide us with meaningful protection or commercial advantage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 596.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 596.10 Td (e depend significantly on intellectual property rights to protect our products and proprietary technologies against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (misappropriation by others. ) Tj ET Q q 0 0 0 rg BT 162.08 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 170.72 584.10 Td (e generally rely on the patent, trademark, copyright and trade secret laws in Europe, the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (States and certain other countries in which we operate or in which our products are produced or sold, as well as licenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (nondisclosure and confidentiality agreements, to protect our intellectual property rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 539.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 539.10 Td (e may have dif) Tj ET Q q 0 0 0 rg BT 141.10 539.10 Td (ficulty obtaining patents and other intellectual property rights, and the patents and other intellectual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (property rights we have and obtain may be insuf) Tj ET Q q 0 0 0 rg BT 242.60 527.10 Td (ficient to provide us with meaningful protection or commercial advantage. ) Tj ET Q q 0 0 0 rg BT 542.60 527.10 Td (W) Tj ET Q q 0 0 0 rg BT 551.24 527.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (currently do not apply for patent protection in all the countries in which we operate. Instead we select and focus on key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (countries for each patent family) Tj ET Q q 0 0 0 rg BT 176.02 503.10 Td (. In addition, the protection of) Tj ET Q q 0 0 0 rg BT 295.53 503.10 Td (fered by patents and other intellectual property rights may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (inadequate or weakened for reasons or circumstances that are out of our control. For instance, we may not be able to obtain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (patent protection or secure other intellectual property rights in all the countries in which we have filed patent applications or in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (which we operate, and under the laws of such countries, patents and other intellectual property rights may be or become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (unavailable or limited in scope.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 434.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 434.10 Td (e may not be able to adequately protect or enforce our intellectual property against improper use by our competitors or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (others and our ef) Tj ET Q q 0 0 0 rg BT 116.79 422.10 Td (forts to do so may be costly to us, which may harm our business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 401.10 Td (Our patents and patent applications, or those of our licensors, could face challenges, such as interference proceedings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (opposition proceedings, nullification proceedings and re-examination proceedings. ) Tj ET Q q 0 0 0 rg BT 382.46 389.10 Td (Any such challenge, if successful, could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (result in the invalidation or narrowing of the scope of any such patents and patent applications. ) Tj ET Q q 0 0 0 rg BT 430.79 377.10 Td (Any such challenges, regardless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (of their success, would also likely be time-consuming and expensive to defend and resolve, and would divert management time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (and attention. Further) Tj ET Q q 0 0 0 rg BT 135.47 353.10 Td (, our unpatented proprietary processes, software, designs and trade secrets may be vulnerable to disclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (or misappropriation by employees, contractors and other persons. ) Tj ET Q q 0 0 0 rg BT 313.69 341.10 Td (While we generally enter into confidentiality agreements with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (such persons to protect our intellectual property) Tj ET Q q 0 0 0 rg BT 239.91 329.10 Td (, we cannot assure you that our confidentiality agreements will not be breached, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (that they will provide meaningful protection for our proprietary technology and trade secrets, or that adequate remedies will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (available in the event they are used or disclosed without our authorization. ) Tj ET Q q 0 0 0 rg BT 349.13 305.10 Td (Also, intellectual property rights are dif) Tj ET Q q 0 0 0 rg BT 507.24 305.10 Td (ficult to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (enforce in the People) Tj ET Q q 0 0 0 rg BT 136.97 293.10 Td (s Republic of China, or PRC, and certain other countries, particularly in ) Tj ET Q q 0 0 0 rg BT 426.07 293.10 Td (Asia, where the application and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (enforcement of the laws governing such rights may not have reached the same level as compared to other jurisdictions where ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (we operate, such as Europe and the United States. Consequently) Tj ET Q q 0 0 0 rg BT 305.73 269.10 Td (, because we operate in these countries and all of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (manufacturing, testing and assembly takes place in ) Tj ET Q q 0 0 0 rg BT 255.37 257.10 Td (T) Tj ET Q q 0 0 0 rg BT 260.78 257.10 Td (aiwan and Singapore, we may be subject to an increased risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (unauthorized parties may attempt to copy or otherwise use our intellectual property or the intellectual property of our suppliers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (or other parties with whom we engage or have licenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 212.10 Td (There can be no assurance that we will be able to protect our intellectual property rights, that our intellectual property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (rights will not be challenged, invalidated, circumvented or rendered unenforceable, or that we will have adequate legal recourse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (in the event that we seek legal or judicial enforcement of our intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 405.49 188.10 Td (Any inability on our part to adequately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (protect or enforce our intellectual property may harm our business, financial condition and results of operations. ) Tj ET Q q 0 0 0 rg BT 500.29 176.10 Td (W) Tj ET Q q 0 0 0 rg BT 508.93 176.10 Td (e may in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (future initiate claims or litigation against third parties for infringement of our intellectual property rights to protect these rights, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (or to determine the scope and validity of our proprietary rights or the proprietary rights of competitors. ) Tj ET Q q 0 0 0 rg BT 462.54 152.10 Td (These claims could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (result in costly litigation and the diversion of our technical and management personnel, and we may not prevail in making these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (claims.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (Assertions by third parties of infringement by us or our customers of their intellectual property rights could result in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (significant costs and cause our operating results to suf) Tj ET Q q 0 0 0 rg BT 273.80 95.10 Td (fer) Tj ET Q q 0 0 0 rg BT 284.91 95.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 74.10 Td (The markets in which we compete are characterized by rapidly changing products and technologies, and there is intense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (competition to establish intellectual property protection and proprietary rights to these new products and the related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (technologies. ) Tj ET Q q 0 0 0 rg BT 104.86 50.10 Td (The semiconductor and wireless communications industries, in particular) Tj ET Q q 0 0 0 rg BT 397.16 50.10 Td (, are characterized by vigorous ) Tj ET Q endstream endobj 37 0 obj <> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (protection and pursuit of intellectual property rights and positions, which has resulted in protracted and expensive litigation for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (many companies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 689.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 689.10 Td (e may be unaware of the intellectual property rights of others that may cover some of our technology) Tj ET Q q 0 0 0 rg BT 484.96 689.10 Td (, products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (services. In addition, third parties may claim that we or our customers are infringing or contributing to the infringement of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (intellectual property rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 644.10 Td (e have in the past received, and as a public company operating in a highly competitive marketplace, we expect that in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (the future we will receive, communications and of) Tj ET Q q 0 0 0 rg BT 250.36 632.10 Td (fers from various industry participants and others alleging that we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (infringed or have misappropriated their patents, trade secrets or other intellectual property rights and/or inviting us to license ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (their technology and intellectual property) Tj ET Q q 0 0 0 rg BT 214.35 608.10 Td (. ) Tj ET Q q 0 0 0 rg BT 218.80 608.10 Td (Any lawsuits resulting from such allegations of infringement or invitations to license, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (including suits challenging L) Tj ET Q q 0 0 0 rg BT 164.95 596.10 Td (TE standards, could subject us to significant liability for damages and/or challenge our activities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (Any potential intellectual property litigation also could force us to do one or more of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 572.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 572.10 Td (stop selling products or using technology that contain the allegedly infringing intellectual property;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 560.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 560.10 Td (abandon the opportunity to license our technology to others or to collect royalty payments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 548.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 548.10 Td (incur significant legal expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 536.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 536.10 Td (pay substantial damages to the party whose intellectual property rights we may be found to be infringing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 524.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 524.10 Td (redesign those products that contain the allegedly infringing intellectual property; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 512.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 512.10 Td (attempt to obtain a license to the relevant intellectual property from third parties, which may not be available on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 500.10 Td (reasonable terms or at all.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 479.10 Td (Our customers could also become the tar) Tj ET Q q 0 0 0 rg BT 236.60 479.10 Td (get of litigation relating to the patents and other intellectual property rights of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (others. ) Tj ET Q q 0 0 0 rg BT 78.76 467.10 Td (This could, in turn, trigger an obligation for us to provide technical support and/or indemnify such customers. ) Tj ET Q q 0 0 0 rg BT 519.60 467.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (obligations could result in substantial expenses, including the payment by us of costs and damages relating to claims of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (intellectual property infringement. In addition to the time and expense required for us to provide support or indemnification to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (our customers, any such litigation could disrupt the businesses of our customers, which in turn could hurt our relationships with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (our customers and cause the sale of our products to decrease. ) Tj ET Q q 0 0 0 rg BT 295.90 419.10 Td (W) Tj ET Q q 0 0 0 rg BT 304.53 419.10 Td (e cannot assure you that claims for indemnification will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (made or that if made, such claims would not materially harm our business, operating results or financial conditions.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Any potential dispute involving our patents or other intellectual property could also include our industry partners and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (customers, which could trigger our indemnification obligations to them and result in substantial expense to us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 353.10 Td (In any potential dispute involving our patents or other intellectual property) Tj ET Q q 0 0 0 rg BT 371.66 353.10 Td (, our licensees could also become the tar) Tj ET Q q 0 0 0 rg BT 533.09 353.10 Td (get of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (litigation, and certain customers have received notices of written of) Tj ET Q q 0 0 0 rg BT 318.67 341.10 Td (fers from our competitors and others claiming to have patent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (rights in certain technology and inviting our customers to license this technology) Tj ET Q q 0 0 0 rg BT 372.40 329.10 Td (. Because we indemnify our licensees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (customers for intellectual property claims made against them for products incorporating our technology) Tj ET Q q 0 0 0 rg BT 463.17 317.10 Td (, any litigation could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (trigger technical support and indemnification obligations in some of our license agreements, which could result in substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (payments and expenses by us. In addition to the time and expense required for us to supply support or indemnification to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (licensees and customers, any such litigation could severely disrupt or shut down the business of our customers, which in turn ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (could hurt our relations with our customers and cause the sale of our proprietary technologies and products to decrease.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (Our failure to comply with obligations under open source licenses could require us to release our source code to the public ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (or cease distribution of our products, which could harm our business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 215.10 Td (Some of the software used with our products, as well as that of some of our customers, may be derived from so-called ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (open source software that is generally made available to the public by its authors and/or other third parties. Such open source ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (software is often made available to us under licenses, such as the GNU General Public License, which impose certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (obligations on us in the event we were to make available derivative works of the open source software. ) Tj ET Q q 0 0 0 rg BT 463.35 179.10 Td (These obligations may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (require us to make source code for the derivative works available to the public, and/or license such derivative works under a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (particular type of license, rather than the licenses we customarily use to protect our intellectual property) Tj ET Q q 0 0 0 rg BT 464.25 155.10 Td (. In addition, there is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (little or no legal precedent for interpreting the terms of certain of these open source licenses, including the determination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (which works are subject to the terms of such licenses. ) Tj ET Q q 0 0 0 rg BT 266.76 131.10 Td (While we believe we have complied with our obligations under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (various applicable licenses for open source software, in the event the copyright holder of any open source software were to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (successfully establish in court that we had not complied with the terms of a license for a particular work, we could be required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (to release the source code of that work to the public and/or stop distribution of that work.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (The complexity of our semiconductor solutions could result in unforeseen delays or expenses from undetected defects or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (design errors in hardware or software, which could reduce the market acceptance for our semiconductor solutions, damage ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (our reputation with current or prospective customers and increase our costs.) Tj ET Q endstream endobj 39 0 obj <> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (Highly complex semiconductor solutions such as ours can contain defects and design errors, which, if significant, could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (impair performance or prevent compliance with industry standards. ) Tj ET Q q 0 0 0 rg BT 321.17 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 329.81 710.10 Td (e have not in the past, but may in the future, experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (such significant defects or design errors. In addition, our semiconductor solutions must be certified by individual wireless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (carriers that such solutions function properly on the carrier) Tj ET Q q 0 0 0 rg BT 284.79 686.10 Td () Tj ET Q q 0 0 0 rg BT 287.57 686.10 Td (s network before our solutions can be designed into a particular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (product. If any of our semiconductor solutions have reliability) Tj ET Q q 0 0 0 rg BT 297.40 674.10 Td (, quality or compatibility problems from defects or design errors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (we may not be able to successfully correct these problems in a timely manner) Tj ET Q q 0 0 0 rg BT 359.28 662.10 Td (, or at all. Furthermore, we may experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (production delays and increased costs correcting such problems. Issues in the carrier certification process, which varies among ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (carriers, may also create delays. Consequently) Tj ET Q q 0 0 0 rg BT 234.06 638.10 Td (, and because our semiconductor solutions are a critical component of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (customers) Tj ET Q q 0 0 0 rg BT 92.63 626.10 Td ( products, our reputation may be irreparably damaged, and customers may be reluctant to buy our semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (solutions, which could harm our ability to retain existing customers and attract new customers and harm our financial results. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (addition, these defects or design errors or delays in the carrier certification process could interrupt or delay sales to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (customers. If any of these problems are not found until after we have commenced commercial production of a new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (semiconductor solution, we may be required to incur additional development costs and product recalls, repairs or replacement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (costs. Furthermore, we provide warranties on our products ranging from one to two years, and thus may be obligated to refund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (sales with respect to products containing defects, errors or bugs. ) Tj ET Q q 0 0 0 rg BT 308.14 554.10 Td (These problems may also result in claims against us by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (customers or others, all of which could damage our reputation and increase our costs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 521.10 Td (e are subject to risks inherent in our international operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 500.10 Td (Our international revenues account for a substantial majority of our total revenues. ) Tj ET Q q 0 0 0 rg BT 405.89 500.10 Td (As a result, we must provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (significant service and support globally) Tj ET Q q 0 0 0 rg BT 206.59 488.10 Td (. ) Tj ET Q q 0 0 0 rg BT 211.41 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 220.05 488.10 Td (e intend to maintain or expand our international operations and expect to incur costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (doing so. ) Tj ET Q q 0 0 0 rg BT 88.49 476.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.13 476.10 Td (e cannot assure you that we will be able to recover our investments in international markets. Our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (operations could be adversely af) Tj ET Q q 0 0 0 rg BT 178.71 464.10 Td (fected by a variety of factors, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 452.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 452.10 Td (the longer payment cycles associated with many foreign customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 440.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 440.10 Td (the typically longer periods from placement of orders to revenue recognition in certain international and emer) Tj ET Q q 0 0 0 rg BT 523.37 440.10 Td (ging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 428.10 Td (markets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 416.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 416.10 Td (currency fluctuations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 404.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 404.10 Td (the dif) Tj ET Q q 0 0 0 rg BT 110.74 404.10 Td (ficulties in interpreting or enforcing our agreements and collecting receivables through many foreign countries) Tj ET Q q 0 0 0 rg BT 555.68 404.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 392.10 Td (legal systems;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 380.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 380.10 Td (unstable regional political and economic conditions or changes in restrictions on trade among countries;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 368.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 368.10 Td (changes in the political, regulatory) Tj ET Q q 0 0 0 rg BT 223.02 368.10 Td (, safety or economic conditions in a country or region;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 356.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 356.10 Td (the imposition by governments of additional taxes, tarif) Tj ET Q q 0 0 0 rg BT 307.10 356.10 Td (fs, global economic sanctions programs or other restrictions on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 344.10 Td (foreign trade;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 332.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 332.10 Td (any inability to comply with export or import laws and requirements or any violation of sanctions regulations, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 320.10 Td (may result in enforcement actions, civil or criminal penalties and restrictions on exports;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 308.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 308.10 Td (any increase in the cost of trade compliance functions to comply with changes to regulatory requirements; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 296.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 296.10 Td (the possibility that it may be more dif) Tj ET Q q 0 0 0 rg BT 235.17 296.10 Td (ficult to protect our intellectual property in foreign countries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.10 Td (In addition, our global operations are subject to numerous U.S. and foreign laws and regulations, including those related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (to anti-corruption, tax, corporate governance, imports and exports, financial and other disclosures, privacy and labor relations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (These laws and regulations are complex and may have dif) Tj ET Q q 0 0 0 rg BT 281.18 251.10 Td (fering or conflicting legal standards, making compliance dif) Tj ET Q q 0 0 0 rg BT 520.92 251.10 Td (ficult and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (costly) Tj ET Q q 0 0 0 rg BT 72.74 239.10 Td (. In addition, there is uncertainty regarding how proposed, contemplated or future changes to these complex laws and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (regulations could af) Tj ET Q q 0 0 0 rg BT 128.74 227.10 Td (fect our business. ) Tj ET Q q 0 0 0 rg BT 200.76 227.10 Td (W) Tj ET Q q 0 0 0 rg BT 209.40 227.10 Td (e may incur substantial expense in complying with the new obligations to be imposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (by these laws and regulations, and we may be required to make significant changes in our business operations, all of which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 203.10 Td (fect our revenues and our business overall. If we violate these laws and regulations we could be subject to fines, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (penalties or criminal sanctions, and may be prohibited from conducting business in one or more countries. ) Tj ET Q q 0 0 0 rg BT 476.07 191.10 Td (Although we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (implemented policies and procedures to help ensure compliance with these laws and regulations, there can be no assurance that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (our employees, contractors, agents or partners will not violate such laws and regulations. ) Tj ET Q q 0 0 0 rg BT 406.63 167.10 Td (Any violation individually or in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (aggregate could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 219.78 155.10 Td (fect on our operations and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (The decision by British voters to exit the European Union may negatively impact our operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 113.10 Td (In June 2016, a majority of voters in the United Kingdom elected to withdraw from the European Union \(often referred to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (as Brexit\) in a national referendum. ) Tj ET Q q 0 0 0 rg BT 193.62 101.10 Td (As of the date of this ) Tj ET Q q 0 0 0 rg BT 279.16 101.10 Td (Annual Report, the British Parliament has not agreed upon the terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 Td (of the withdrawal. On ) Tj ET Q q 0 0 0 rg BT 139.20 89.10 Td (April 10, 2019, the leaders of the other member countries of the European Union agreed to extend the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (deadline for Brexit until October 31, 2019. ) Tj ET Q q 0 0 0 rg BT 222.89 77.10 Td (The referendum and ongoing negotiations have created significant uncertainty about ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (the future relationship between the United Kingdom and the European Union. ) Tj ET Q endstream endobj 41 0 obj <> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (If the United Kingdom leaves the European Union with no agreement, it will likely have an adverse impact on labor and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (trade in addition to creating further short-term uncertainty and currency volatility) Tj ET Q q 0 0 0 rg BT 373.73 710.10 Td (. In the absence of a future trade deal, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (United Kingdom) Tj ET Q q 0 0 0 rg BT 119.77 698.10 Td (s trade with the European Union and the rest of the world would be subject to tarif) Tj ET Q q 0 0 0 rg BT 448.95 698.10 Td (fs and duties set by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 686.10 Td (orld ) Tj ET Q q 0 0 0 rg BT 76.57 686.10 Td (T) Tj ET Q q 0 0 0 rg BT 82.32 686.10 Td (rade Or) Tj ET Q q 0 0 0 rg BT 112.40 686.10 Td (ganization. ) Tj ET Q q 0 0 0 rg BT 158.50 686.10 Td (Any adjustments we make to our business and operations as of Brexit could result in significant time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (and expense to complete.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 653.10 Td (While we have not experienced any material financial impact from Brexit on our business to date as we only make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (intercompany sales from Sequans Communications Ltd., our United Kingdom subsidiary) Tj ET Q q 0 0 0 rg BT 405.19 641.10 Td (, to Sequans Communications S.A., we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (cannot predict its future implications. ) Tj ET Q q 0 0 0 rg BT 201.13 629.10 Td (Any impact from Brexit on our business and operations over the long term will depend, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (part, on the outcome of tarif) Tj ET Q q 0 0 0 rg BT 161.50 617.10 Td (f, tax treaties, trade, regulatory) Tj ET Q q 0 0 0 rg BT 283.85 617.10 Td (, and other negotiations the United Kingdom conducts.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (The loss of any of our key personnel could seriously harm our business, and our failure to attract or retain specialized ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (technical, management or sales and marketing employees could impair our ability to grow our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 563.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 563.10 Td (e believe our future success will depend in lar) Tj ET Q q 0 0 0 rg BT 265.22 563.10 Td (ge part upon our ability to attract, retain and motivate highly skilled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (management, engineering and sales and marketing personnel. ) Tj ET Q q 0 0 0 rg BT 297.84 551.10 Td (The loss of any key employees or the inability to attract, retain or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (motivate qualified personnel, including engineers and sales and marketing personnel could delay the development and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (introduction of and harm our ability to sell our semiconductor solutions. ) Tj ET Q q 0 0 0 rg BT 340.38 527.10 Td (W) Tj ET Q q 0 0 0 rg BT 349.02 527.10 Td (e believe that our future success is dependent on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (contributions of Geor) Tj ET Q q 0 0 0 rg BT 135.41 515.10 Td (ges Karam, our co-founder and chief executive of) Tj ET Q q 0 0 0 rg BT 334.03 515.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 351.95 515.10 Td (, and Bertrand Debray) Tj ET Q q 0 0 0 rg BT 440.15 515.10 Td (, our co-founder and chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (operating of) Tj ET Q q 0 0 0 rg BT 97.91 503.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 115.68 503.10 Td (. ) Tj ET Q q 0 0 0 rg BT 120.50 503.10 Td (The loss of the services of Dr) Tj ET Q q 0 0 0 rg BT 237.69 503.10 Td (.Karam, Mr) Tj ET Q q 0 0 0 rg BT 286.57 503.10 Td (.Debray) Tj ET Q q 0 0 0 rg BT 320.34 503.10 Td (, other executive of) Tj ET Q q 0 0 0 rg BT 397.35 503.10 Td (ficers or certain other key personnel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (could materially harm our business, financial condition and results of operations. For example, if any of these individuals were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (to leave unexpectedly) Tj ET Q q 0 0 0 rg BT 136.03 479.10 Td (, we could face substantial dif) Tj ET Q q 0 0 0 rg BT 255.26 479.10 Td (ficulty in hiring qualified successors, and could experience a loss in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (productivity during the search for any such successor and while any successor is integrated into our business and operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 446.10 Td (Our key technical and engineering personnel represent a significant asset and serve as the source of our technological and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (product innovations. ) Tj ET Q q 0 0 0 rg BT 134.03 434.10 Td (W) Tj ET Q q 0 0 0 rg BT 142.67 434.10 Td (e plan to recruit additional design and application engineers with expertise in wireless broadband ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (communications technologies. ) Tj ET Q q 0 0 0 rg BT 173.46 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 182.10 422.10 Td (e may not be successful in attracting, retaining and motivating suf) Tj ET Q q 0 0 0 rg BT 445.46 422.10 Td (ficient technical and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (engineering personnel to support our anticipated growth. In addition, to expand our customer base and increase sales to existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (customers, we will need to hire additional qualified sales personnel. ) Tj ET Q q 0 0 0 rg BT 323.13 398.10 Td (The competition for qualified marketing, sales, technical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (and engineering personnel in our industry is very intense. If we are unable to hire, train and retain qualified marketing, sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (technical and engineering personnel in a timely manner) Tj ET Q q 0 0 0 rg BT 270.96 374.10 Td (, our ability to grow our business will be impaired. In addition, if we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (unable to retain our existing sales personnel, our ability to maintain or grow our current level of revenue will be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (Rapidly changing standards could make our semiconductor solutions obsolete, which would cause our operating results to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (suf) Tj ET Q q 0 0 0 rg BT 62.10 329.10 Td (fer) Tj ET Q q 0 0 0 rg BT 73.21 329.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 308.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 308.10 Td (e design our semiconductor solutions to conform to standards set by industry standards bodies such as the Institute of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (Electrical and Electronics Engineers, Inc. \(IEEE\), the 3rd Generation Partnership Project \(3GPP\) and Open Mobile ) Tj ET Q q 0 0 0 rg BT 511.58 296.10 Td (Alliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (\(OMA\). ) Tj ET Q q 0 0 0 rg BT 84.31 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 92.95 284.10 Td (e also depend on industry groups such as the Global Certification Forum \(GCF\) and the PTS ) Tj ET Q q 0 0 0 rg BT 465.50 284.10 Td (T) Tj ET Q q 0 0 0 rg BT 470.91 284.10 Td (ype Certification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (Review Board \(PTCRB\) to help certify and maintain certification of our semiconductor solutions. If our customers adopt new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (or competing industry standards that are not compatible with our semiconductor solutions, if industry groups fail to adopt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (standards compatible with our semiconductor solutions or if our customers are requiring chip certifications that we did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (design our products for) Tj ET Q q 0 0 0 rg BT 142.14 236.10 Td (, our existing semiconductor solutions would become less desirable to our customers and our sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (would suf) Tj ET Q q 0 0 0 rg BT 89.04 224.10 Td (fer) Tj ET Q q 0 0 0 rg BT 99.59 224.10 Td (. ) Tj ET Q q 0 0 0 rg BT 104.41 224.10 Td (The emer) Tj ET Q q 0 0 0 rg BT 142.26 224.10 Td (gence of markets for our products is af) Tj ET Q q 0 0 0 rg BT 296.75 224.10 Td (fected by a variety of factors beyond our control. In particular) Tj ET Q q 0 0 0 rg BT 543.74 224.10 Td (, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (semiconductor solutions are designed to conform to current specific industry standards. Competing standards may emer) Tj ET Q q 0 0 0 rg BT 528.37 212.10 Td (ge that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (are preferred by our customers, which could also reduce our sales and require us to make significant expenditures to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (new semiconductor solutions. For example, as we expand into the Internet of ) Tj ET Q q 0 0 0 rg BT 359.80 188.10 Td (Things market, we expect to face additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (competition from companies such as SIGFOX or others using LoRa ) Tj ET Q q 0 0 0 rg BT 323.72 176.10 Td (W) Tj ET Q q 0 0 0 rg BT 332.76 176.10 Td (ireless RF technology) Tj ET Q q 0 0 0 rg BT 419.32 176.10 Td (, a long range, low power ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (consumption and data transmission protocol for Internet of ) Tj ET Q q 0 0 0 rg BT 287.04 164.10 Td (Things devices. ) Tj ET Q q 0 0 0 rg BT 354.63 164.10 Td (W) Tj ET Q q 0 0 0 rg BT 363.67 164.10 Td (ireless carriers have started testing 5G ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.28 152.10 Td (, the next phase of mobile telecommunications standards, which is expected to be introduced in scale to the market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (by 2020. If we are unable to successfully develop or commercialize products for the 5G standard, our semiconductor solutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (could become obsolete, which would cause our sales and financial results to suf) Tj ET Q q 0 0 0 rg BT 368.40 128.10 Td (fer) Tj ET Q q 0 0 0 rg BT 378.94 128.10 Td (. Governments and foreign regulators may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (adopt standards that are incompatible with our semiconductor solutions, favor alternative technologies or adopt stringent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (regulations that would impair or make commercially unviable the deployment of our semiconductor solutions. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (existing standards may be challenged as infringing upon the intellectual property rights of other companies or may become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (obsolete.) Tj ET Q endstream endobj 43 0 obj <> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (18) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 722.25 Td (e outsource our assembly) Tj ET Q q 0 0 0 rg BT 161.45 722.25 Td (, testing, warehousing and shipping operations to third parties, and if these parties fail to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (produce and deliver our products in a timely manner and in accordance with our specifications, our reputation, customer ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (relationships and operating results could suf) Tj ET Q q 0 0 0 rg BT 232.97 698.25 Td (fer) Tj ET Q q 0 0 0 rg BT 244.08 698.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 677.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 677.25 Td (e rely on third parties for the assembly) Tj ET Q q 0 0 0 rg BT 235.61 677.25 Td (, testing, warehousing and shipping of our products. ) Tj ET Q q 0 0 0 rg BT 445.68 677.25 Td (W) Tj ET Q q 0 0 0 rg BT 454.32 677.25 Td (e rely on United ) Tj ET Q q 0 0 0 rg BT 521.34 677.25 Td (T) Tj ET Q q 0 0 0 rg BT 526.75 677.25 Td (est and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (Assembly Center Ltd., or UT) Tj ET Q q 0 0 0 rg BT 165.90 665.25 Td (AC; Siliconware Precision Industries Limited, or SPIL; StatschipPac Limited, or SPC; and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (third-party assembly and test subcontractors for assembly and testing chipsets. ) Tj ET Q q 0 0 0 rg BT 368.14 653.25 Td (W) Tj ET Q q 0 0 0 rg BT 376.78 653.25 Td (e rely on Universal Scientific Industrial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (\(Shanghai\) Ltd., or USI, for manufacturing of our modules. ) Tj ET Q q 0 0 0 rg BT 289.54 641.25 Td (W) Tj ET Q q 0 0 0 rg BT 298.18 641.25 Td (e further rely on a single company for logistics and storage. ) Tj ET Q q 0 0 0 rg BT 538.48 641.25 Td (W) Tj ET Q q 0 0 0 rg BT 547.12 641.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (depend on these parties to supply us with material of a requested quantity in a timely manner that meets our standards for yield, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (cost and manufacturing quality) Tj ET Q q 0 0 0 rg BT 172.98 617.25 Td (. ) Tj ET Q q 0 0 0 rg BT 177.80 617.25 Td (W) Tj ET Q q 0 0 0 rg BT 186.44 617.25 Td (e are unable to maintain the same level of oversight and control of these outsourced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (operations as we would if we were to conduct them internally) Tj ET Q q 0 0 0 rg BT 295.44 605.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 584.25 Td (The services provided by these vendors could be subject to disruption for a variety of reasons, including natural disasters, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (such as earthquakes, labor disputes, power outages, or if our relationship with a vendor is damaged. If we experience problems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (at a particular location, we would be required to transfer the impacted services to a backup vendor) Tj ET Q q 0 0 0 rg BT 441.44 560.25 Td (, which could be costly and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (require a significant amount of time. During such a transition, we would be required to meet customer demand from our then-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (existing inventory) Tj ET Q q 0 0 0 rg BT 121.34 536.25 Td (, as well as any partially finished goods that can be modified to the required product specifications, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (may not be possible or cost ef) Tj ET Q q 0 0 0 rg BT 168.74 524.25 Td (fective. Further) Tj ET Q q 0 0 0 rg BT 229.98 524.25 Td (, we do not have any long-term agreements with any of these vendors. If one or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (more of these vendors terminates its relationship with us, allocates capacity to other customers or if we encounter any problems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (with our supply chain, it could harm our ability to ship our products to our customers on time and in the quantity required, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (which in turn could cause an unanticipated decline in our sales and possibly damage our customer relationships.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (Certain natural disasters, such as coastal flooding, large earthquakes or volcanic eruptions, may negatively impact our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (business. ) Tj ET Q q 0 0 0 rg BT 89.14 455.25 Td (Any disruption to the operations of our foundry and assembly and testing subcontractors could cause significant ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (delays in the production or shipment of our products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 422.25 Td (If coastal flooding, a lar) Tj ET Q q 0 0 0 rg BT 169.12 422.25 Td (ge earthquake, volcanic eruption or other natural disaster were to directly damage, destroy or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (disrupt ) Tj ET Q q 0 0 0 rg BT 79.60 410.25 Td (TSMC) Tj ET Q q 0 0 0 rg BT 109.61 410.25 Td (s manufacturing facilities or the facilities of our testing and assembly contractors, it could disrupt our operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (delay new production and shipments of existing inventory) Tj ET Q q 0 0 0 rg BT 281.31 398.25 Td (, or result in costly repairs, replacements or other costs, all of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (would negatively impact our business. For example, substantially all of our semiconductor solutions are manufactured and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (assembled by third-party contractors located in ) Tj ET Q q 0 0 0 rg BT 239.81 374.25 Td (T) Tj ET Q q 0 0 0 rg BT 245.22 374.25 Td (aiwan and Singapore. ) Tj ET Q q 0 0 0 rg BT 333.90 374.25 Td (The risk of an earthquake or tsunami in ) Tj ET Q q 0 0 0 rg BT 493.67 374.25 Td (T) Tj ET Q q 0 0 0 rg BT 499.08 374.25 Td (aiwan or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (Singapore, such as the major earthquakes that occurred in ) Tj ET Q q 0 0 0 rg BT 282.57 362.25 Td (T) Tj ET Q q 0 0 0 rg BT 287.98 362.25 Td (aiwan in December 2006 and February 2016, and elsewhere in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (Pacific Rim region, is significant due to the proximity of major earthquake fault lines to the facilities of our foundry vendor and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (assembly and testing subcontractors. Even if these facilities are not directly damaged, a lar) Tj ET Q q 0 0 0 rg BT 411.69 338.25 Td (ge natural disaster may result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (disruptions in distribution channels or supply chains. ) Tj ET Q q 0 0 0 rg BT 262.82 326.25 Td (Although our third-party contractors did not suf) Tj ET Q q 0 0 0 rg BT 453.71 326.25 Td (fer any significant damage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (as a result of the most recent earthquakes, the February 2016 earthquake caused shipment delays in the first and second quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (of 2016, and the occurrence of additional earthquakes or other natural disasters could result in the disruption of our foundry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (vendor or assembly and testing capacity) Tj ET Q q 0 0 0 rg BT 209.08 290.25 Td (. For instance, the recent earthquake and tsunami in Japan, though it did not directly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (cause damage to any of our third-party contractors, may impair the ability of such contractors to procure components from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (vendors in Japan, and alternative suppliers may not be available in a timely manner or at all, and may impair the ability of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (customers to procure components other than ours that are necessary to their production process, which in turn could result in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (slowing of their production, and consequently) Tj ET Q q 0 0 0 rg BT 232.70 242.25 Td (, of purchases of our products. ) Tj ET Q q 0 0 0 rg BT 356.01 242.25 Td (Any disruption resulting from such events could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (cause significant delays in the production or shipment of our semiconductor solutions as well as significant increases in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (transportation costs until we are able to shift our manufacturing, assembling or testing from an af) Tj ET Q q 0 0 0 rg BT 437.55 218.25 Td (fected contractor to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (alternative vendor) Tj ET Q q 0 0 0 rg BT 121.41 206.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 185.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 185.25 Td (e may experience dif) Tj ET Q q 0 0 0 rg BT 142.16 185.25 Td (ficulties in transitioning to new wafer fabrication process technologies or in achieving higher levels ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (of design integration, which may result in reduced manufacturing yields, delays in product deliveries and increased costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 152.25 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 152.25 Td (o remain competitive, we expect to continue to transition our semiconductor products to increasingly smaller geometries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (and to achieve higher levels of design integration. ) Tj ET Q q 0 0 0 rg BT 251.20 140.25 Td (These ongoing ef) Tj ET Q q 0 0 0 rg BT 320.44 140.25 Td (forts require us from time to time to modify the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (manufacturing processes for our semiconductor solutions and to redesign some solutions, which in turn may result in delays in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (product deliveries. ) Tj ET Q q 0 0 0 rg BT 126.24 116.25 Td (W) Tj ET Q q 0 0 0 rg BT 134.88 116.25 Td (e periodically evaluate the benefits of migrating to new process technologies to reduce cost and improve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.25 Td (performance. ) Tj ET Q q 0 0 0 rg BT 104.84 104.25 Td (W) Tj ET Q q 0 0 0 rg BT 113.48 104.25 Td (e may face dif) Tj ET Q q 0 0 0 rg BT 170.21 104.25 Td (ficulties, delays and increased expenses as we transition our products to new processes. ) Tj ET Q q 0 0 0 rg BT 521.87 104.25 Td (W) Tj ET Q q 0 0 0 rg BT 530.51 104.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.25 Td (depend on our relationship with ) Tj ET Q q 0 0 0 rg BT 179.02 92.25 Td (TSMC and our testing and assembly subcontractors to transition to new processes successfully) Tj ET Q q 0 0 0 rg BT 557.19 92.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 80.25 Td (e cannot assure you that ) Tj ET Q q 0 0 0 rg BT 156.54 80.25 Td (TSMC or our testing and assembly subcontractors will be able to ef) Tj ET Q q 0 0 0 rg BT 426.58 80.25 Td (fectively manage the transition or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.25 Td (that we will be able to maintain our relationship with ) Tj ET Q q 0 0 0 rg BT 263.71 68.25 Td (TSMC or our testing and assembly vendors or develop relationships with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 56.25 Td (new foundries and vendors if necessary) Tj ET Q q 0 0 0 rg BT 206.85 56.25 Td (. If ) Tj ET Q q 0 0 0 rg BT 220.83 56.25 Td (TSMC, any of our subcontractors or we experience significant delays in transitioning ) Tj ET Q endstream endobj 45 0 obj <> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (to smaller geometries or fail to ef) Tj ET Q q 0 0 0 rg BT 182.61 722.10 Td (ficiently implement transitions, we could experience reduced manufacturing yields, or delays ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (in product deliveries and increased costs, all of which could harm our relationships with our customers, our mar) Tj ET Q q 0 0 0 rg BT 496.70 710.10 Td (gins and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (operating results. ) Tj ET Q q 0 0 0 rg BT 120.32 698.10 Td (As new processes become more prevalent, we expect to continue to integrate greater levels of functionality) Tj ET Q q 0 0 0 rg BT 547.84 698.10 Td (, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (well as end-customer and third-party intellectual property) Tj ET Q q 0 0 0 rg BT 279.32 686.10 Td (, into our products. However) Tj ET Q q 0 0 0 rg BT 393.90 686.10 Td (, we may not be able to achieve higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (levels of design integration or deliver new integrated products on a timely or cost-ef) Tj ET Q q 0 0 0 rg BT 385.60 674.10 Td (fective basis.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Changes in current laws or regulations or the imposition of new laws or regulations could impede the sale of our products ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (or otherwise harm our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 617.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 617.10 Td (ireless networks can only operate in the spectrum allowed by regulators and in accordance with rules governing how ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (that spectrum can be used. Regulators in various countries have broad jurisdiction over the allocation of spectrum for wireless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (networks, and we therefore rely on these regulators to provide suf) Tj ET Q q 0 0 0 rg BT 312.29 593.10 Td (ficient spectrum and usage rules. For example, countries such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (as China, India, Japan or Korea heavily regulate all aspects of their wireless communication industries, and may restrict ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (spectrum allocation or usage. If further restrictions were to be imposed over the frequency bands where our semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (solutions are designed to operate, we may have dif) Tj ET Q q 0 0 0 rg BT 251.76 557.10 Td (ficulty selling our products in those regions. In addition, our semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (solutions operate in the 2.5 and 3.5 gigahertz, or GHz, bands, which in some countries is also used by government and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (commercial services such as military and commercial aviation. European and United States regulators have traditionally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (protected government uses of the 2.5 and 3.5GHz bands by setting power limits and indoor and outdoor designation, and by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (requiring that wireless local area networking devices not interfere with other users of the band such as government and civilian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (satellite services. Changes in current laws or regulations or the imposition of new laws and regulations in the markets in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (we operate regarding the allocation and usage of the 2.5 and 3.5 GHz band, may harm the sale of our products and our business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (financial condition and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (Adverse outcomes in tax disputes could subject us to tax assessments and potential penalties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 431.10 Td (From time to time, we are subject to tax audits that could result in tax assessments and potential penalties, particularly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (with respect to claimed research tax credits due to the judgment involved in determining which projects meet the tax code) Tj ET Q q 0 0 0 rg BT 539.62 419.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (criteria for innovation and fundamental research. For example, in May 2015, we received notification from the United Kingdom ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (tax authorities that they made inquiries regarding the calculation method used in our 2014 United Kingdom research tax credit. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 383.10 Td (e disagreed with the tax authorities) Tj ET Q q 0 0 0 rg BT 200.40 383.10 Td ( position and defended our position, but ultimately the tax authorities' position prevailed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (and we settled the matter in 2016 for approximately the amount of the provision recorded in 2015: 170,000 \($252,000\).Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (actual costs for any disputes in the future may be materially dif) Tj ET Q q 0 0 0 rg BT 301.74 359.10 Td (ferent from the provisions recorded if we are not successful in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (our appeal of any assessment, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 326.99 347.10 Td (fect on our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (Regulations related to conflict minerals may force us to incur additional expenses, may result in damage to our business ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (reputation and may adversely impact our ability to conduct our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 293.10 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 293.10 Td (August 2012, under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 231.36 293.10 Td (W) Tj ET Q q 0 0 0 rg BT 239.99 293.10 Td (all Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 414.96 293.10 Td (Act of 2010, the SEC adopted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (requirements for companies that use certain minerals and derivative metals \(referred to as conflict minerals, regardless of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (their actual country of origin\) in their products. Some of these metals are commonly used in electronic equipment and devices, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (including our products. Depending on various circumstances, these requirements require companies to investigate, disclose and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (report whether or not such metals originated from the Democratic Republic of Congo or adjoining countries. ) Tj ET Q q 0 0 0 rg BT 486.15 245.10 Td (W) Tj ET Q q 0 0 0 rg BT 494.78 245.10 Td (e have an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (extremely complex supply chain, with numerous suppliers \(many of whom are not obligated by the law to investigate their own ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (supply chains\) for the components and parts used in each of our products. ) Tj ET Q q 0 0 0 rg BT 346.10 221.10 Td (As a result, we may incur significant costs to comply ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.10 Td (with the diligence and disclosure requirements, including costs related to determining the source of any of the relevant metals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (used in our products. In addition, because our supply chain is so complex, we may not be able to suf) Tj ET Q q 0 0 0 rg BT 450.34 197.10 Td (ficiently verify the origin of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (all the relevant metals used in our products through the due diligence procedures that we implement, which may harm our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (business reputation. ) Tj ET Q q 0 0 0 rg BT 131.25 173.10 Td (W) Tj ET Q q 0 0 0 rg BT 139.89 173.10 Td (e may also face dif) Tj ET Q q 0 0 0 rg BT 215.23 173.10 Td (ficulties in satisfying customers if they require that we prove or certify that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (products are conflict free. Key components and parts that can be shown to be conflict free may not be available to us in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 149.10 Td (ficient quantity) Tj ET Q q 0 0 0 rg BT 121.71 149.10 Td (, or at all, or may only be available at significantly higher cost to us. If we are not able to meet customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (requirements, customers may choose to disqualify us as a supplier) Tj ET Q q 0 0 0 rg BT 313.33 137.10 Td (. ) Tj ET Q q 0 0 0 rg BT 317.78 137.10 Td (Any of these outcomes could adversely impact our business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (financial condition or results of operations.) Tj ET Q endstream endobj 47 0 obj <> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (20) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Fluctuations in foreign exchange rates may harm our financial results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 701.25 Td (Our functional currency is the U.S. dollar) Tj ET Q q 0 0 0 rg BT 239.01 701.25 Td (. Substantially all of our sales are denominated in U.S. dollars and the payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.25 Td (terms of all of our significant supply chain vendors are also denominated in U.S. dollars. ) Tj ET Q q 0 0 0 rg BT 406.46 689.25 Td (W) Tj ET Q q 0 0 0 rg BT 415.10 689.25 Td (e incur operating expenses and hold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (assets and liabilities denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 340.69 677.25 Td (, principally the euro, and to a lesser extent the British ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (pound sterling, the Chinese yuan and the New Israeli shekel. ) Tj ET Q q 0 0 0 rg BT 293.88 665.25 Td (As a result, our results of operations and cash flows are subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (fluctuations due to changes in foreign currency exchange rates, primarily the U.S. dollar to euro exchange rate. ) Tj ET Q q 0 0 0 rg BT 495.17 653.25 Td (As we grow our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (operations, our exposure to foreign currency risk could become more significant. If there had been a 10% increase or decrease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (in the exchange rate of the U.S. dollar to the euro, as measured using the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.27 629.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.27 629.25 Td ( weighted average exchange rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (one euro = ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.85 617.25 Td ($1.1852) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.35 617.25 Td (, we estimate the impact, in absolute terms, on operating expenses for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.90 617.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.48 617.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (would have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.75 605.25 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.65 605.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 584.25 Td (Our exposure to foreign currency risk may change over time as business practices evolve and economic conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (change.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 551.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 551.25 Td (e from time to time enter into foreign currency hedging contracts primarily to reduce the impact of variations in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (U.S. dollar to euro exchange rate on our operating expenses denominated in euros. However) Tj ET Q q 0 0 0 rg BT 418.43 539.25 Td (, hedging at best reduces volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (and helps to lock in a tar) Tj ET Q q 0 0 0 rg BT 147.63 527.25 Td (get rate for the following six to twelve months but cannot eliminate the fundamental exposure and may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (not be ef) Tj ET Q q 0 0 0 rg BT 84.30 515.25 Td (fective.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (Our business and operations could suf) Tj ET Q q 0 0 0 rg BT 207.97 494.25 Td (fer in the event of security breaches.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 473.25 Td (Attempts by others to gain unauthorized access to our information technology systems are becoming more sophisticated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td (These attempts, which might be related to industrial or other espionage, include covertly introducing malware to our computers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.25 Td (and networks and impersonating authorized users, among others. Hackers may also develop and deploy viruses, worms and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (other malicious software programs that attack or otherwise exploit security vulnerabilities in our systems or products. ) Tj ET Q q 0 0 0 rg BT 521.33 437.25 Td (Attacks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (may create system disruptions, cause shutdowns or result in the corruption of our engineering data, which could result in delays ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (in product development or software updates and harm our business. ) Tj ET Q q 0 0 0 rg BT 321.94 413.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 371.84 413.25 Td (, the theft, unauthorized use or publication of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (our intellectual property and/or confidential business information could harm our competitive position, reduce the value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (investment in research and development and other strategic initiatives or otherwise adversely af) Tj ET Q q 0 0 0 rg BT 431.96 389.25 Td (fect our business. ) Tj ET Q q 0 0 0 rg BT 503.99 389.25 Td (T) Tj ET Q q 0 0 0 rg BT 509.40 389.25 Td (o the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (that any security breach results in inappropriate disclosure of our customers) Tj ET Q q 0 0 0 rg BT 354.77 377.25 Td ( or business partners) Tj ET Q q 0 0 0 rg BT 439.29 377.25 Td ( confidential information, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (may incur liability as a result. ) Tj ET Q q 0 0 0 rg BT 173.18 365.25 Td (W) Tj ET Q q 0 0 0 rg BT 181.81 365.25 Td (e could also suf) Tj ET Q q 0 0 0 rg BT 244.12 365.25 Td (fer monetary and other losses, including reputational harm, which costs we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (may not be able to recover) Tj ET Q q 0 0 0 rg BT 155.29 353.25 Td (. ) Tj ET Q q 0 0 0 rg BT 160.11 353.25 Td (W) Tj ET Q q 0 0 0 rg BT 168.75 353.25 Td (e seek to detect and investigate all security incidents and to prevent their recurrence, but in some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (cases, we might be unaware of an incident or its magnitude and ef) Tj ET Q q 0 0 0 rg BT 313.40 341.25 Td (fects. ) Tj ET Q q 0 0 0 rg BT 337.09 341.25 Td (While we have identified some incidents involving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.25 Td (attempts at unauthorized access, we are not aware of any that have succeeded. ) Tj ET Q q 0 0 0 rg BT 363.89 329.25 Td (W) Tj ET Q q 0 0 0 rg BT 372.53 329.25 Td (e expect to continue to devote resources to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (security of our information technology systems.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (Our global operations are subject to risks for which we may not be adequately insured.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.25 Td (Our global operations are subject to many risks including errors and omissions, infrastructure disruptions, such as lar) Tj ET Q q 0 0 0 rg BT 541.00 275.25 Td (ge-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.25 Td (scale outages or interruptions of service from utilities or telecommunications providers, supply chain interruptions, third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.25 Td (liabilities and fires or natural disasters. No assurance can be given that we will not incur losses beyond the limits or outside the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.25 Td (scope of coverage of our insurance policies. From time-to-time, various types of insurance may not be available on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (commercially acceptable terms or) Tj ET Q q 0 0 0 rg BT 184.31 227.25 Td (, in some cases, at all. ) Tj ET Q q 0 0 0 rg BT 273.83 227.25 Td (W) Tj ET Q q 0 0 0 rg BT 282.46 227.25 Td (e cannot assure you that in the future we will be able to maintain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (existing insurance coverage or that premiums will not increase substantially) Tj ET Q q 0 0 0 rg BT 352.38 215.25 Td (. ) Tj ET Q q 0 0 0 rg BT 357.20 215.25 Td (W) Tj ET Q q 0 0 0 rg BT 365.83 215.25 Td (e maintain limited insurance coverage and in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.25 Td (some cases no coverage for natural disasters and sudden and accidental environmental damages as these types of insurance are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.25 Td (sometimes not available or available only at a prohibitive cost. ) Tj ET Q q 0 0 0 rg BT 301.93 191.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 351.27 191.25 Td (, we may be subject to an uninsured or under) Tj ET Q q 0 0 0 rg BT 530.46 191.25 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.25 Td (insured loss in such situations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (Changes in International Financial Reporting Standards \(IFRS\) could adversely af) Tj ET Q q 0 0 0 rg BT 403.55 158.25 Td (fect our financial results and may ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (require significant changes to our internal accounting systems and processes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 125.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 125.25 Td (e prepare our consolidated financial statements in conformity with IFRS. ) Tj ET Q q 0 0 0 rg BT 376.05 125.25 Td (These principles are subject to interpretation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (by the International ) Tj ET Q q 0 0 0 rg BT 129.75 113.25 Td (Accounting Standard Board and various bodies formed to interpret and create appropriate accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.25 Td (principles and guidance. ) Tj ET Q q 0 0 0 rg BT 149.29 101.25 Td (The IFRS periodically issues new accounting standards on a variety of topics. For information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.25 Td (regarding new accounting standards, please refer to Note 2.2 of Notes to Consolidated Financial Statements under the heading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.25 Td (Changes in accounting policy and disclosures. ) Tj ET Q q 0 0 0 rg BT 245.66 77.25 Td (These and other such standards generally result in dif) Tj ET Q q 0 0 0 rg BT 458.74 77.25 Td (ferent accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.25 Td (principles, which may significantly impact our reported results or could result in variability of our financial results. ) Tj ET Q endstream endobj 49 0 obj <> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (21) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (In preparing our financial statements we make certain assumptions, judgments and estimates that af) Tj ET Q q 0 0 0 rg BT 463.26 722.25 Td (fect amounts reported ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (in our consolidated financial statements, which, if not accurate, may significantly impact our financial results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 689.25 Td (In preparing our financial statements, we make assumptions, judgments and estimates for a number of items. ) Tj ET Q q 0 0 0 rg BT 510.71 689.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (assumptions, judgments and estimates are drawn from historical experience and various other factors that we believe are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (reasonable under the circumstances as of the date of the consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 412.14 665.25 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 505.55 665.25 Td (fer materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (from our estimates, and such dif) Tj ET Q q 0 0 0 rg BT 178.18 653.25 Td (ferences could significantly impact our financial results. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Risks Related to Material ) Tj ET Q q 0 0 0 rg BT 160.96 632.25 Td (W) Tj ET Q q 0 0 0 rg BT 170.41 632.25 Td (eaknesses in Our) Tj ET Q q 0 0 0 rg BT 242.46 632.25 Td ( Internal Contr) Tj ET Q q 0 0 0 rg BT 307.83 632.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 339.59 632.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 611.25 Td (Pursuant to the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 201.81 611.25 Td (Act of 2002, we are required to document and test our internal control procedures and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.25 Td (provide a report by management on internal control over financial reporting, including management) Tj ET Q q 0 0 0 rg BT 451.86 599.25 Td (s assessment of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 587.25 Td (fectiveness of such control.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 566.25 Td (In the context of the preparation of our 2018 consolidated financial statements, we identified a deficiency in our internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (control over financial reporting that constituted a material weakness in our internal control over financial reporting. ) Tj ET Q q 0 0 0 rg BT 515.82 554.25 Td (W) Tj ET Q q 0 0 0 rg BT 524.46 554.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (determined that our management) Tj ET Q q 0 0 0 rg BT 184.17 542.25 Td (s review controls and other controls over the accounting and presentation of complex, non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (routine transactions were not adequately designed and documented.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.96 530.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.46 530.25 Td (In 2018, the complex, non-routine transaction that exposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (the material weakness was the amendment of convertible bonds issued in prior years as well as the issuance of new financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (instruments with equity components and their associated deferred tax impacts. Specifically) Tj ET Q q 0 0 0 rg BT 414.86 506.25 Td (, our management identified that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (controls lacked suf) Tj ET Q q 0 0 0 rg BT 124.85 494.25 Td (ficient specificity) Tj ET Q q 0 0 0 rg BT 193.89 494.25 Td (, including evaluation of all relevant accounting standards for these complex transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 473.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 473.25 Td (e have historically relied on internal resources to address complex and unusual IFRS accounting treatment, such as in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td (the case of our convertible bonds. In an ef) Tj ET Q q 0 0 0 rg BT 217.31 461.25 Td (fort to remediate our material weakness, we intend to engage an external consultant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.25 Td (with appropriate training, to assist us with respect to the documentation of assumptions used and the development of accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (positions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 416.25 Td ( ) Tj ET Q q 0 0 0 rg BT 75.45 416.25 Td (Although we are working to remedy the material weakness, there can be no assurance as to when the remediation will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (completed, and we can give no assurances that other material weaknesses will not arise in the future. Failure to comply with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (Section 404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 190.86 392.25 Td (Act could also potentially subject us to sanctions or investigations by the SEC or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (regulatory authorities. Deficiencies, including any material weakness, in our internal control over financial reporting that have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (not been remediated or that may occur in the future could result in misstatements of our results of operations, restatements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (our financial statements, a decline in our stock price, suspension or delisting of our ) Tj ET Q q 0 0 0 rg BT 383.31 356.25 Td (ADSs from the New ) Tj ET Q q 0 0 0 rg BT 467.37 356.25 Td (Y) Tj ET Q q 0 0 0 rg BT 473.59 356.25 Td (ork Stock Exchange, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (or otherwise materially adversely af) Tj ET Q q 0 0 0 rg BT 193.15 344.25 Td (fect our business, reputation, results of operations and financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (Risks Related to Ownership of Our) Tj ET Q q 0 0 0 rg BT 199.60 318.25 Td ( Shar) Tj ET Q q 0 0 0 rg BT 222.48 318.25 Td (es and ) Tj ET Q q 0 0 0 rg BT 251.38 318.25 Td (ADSs) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 301.25 Td (Fluctuations in our operating results on a quarterly or annual basis and dif) Tj ET Q q 0 0 0 rg BT 360.52 301.25 Td (ficulty predicting our quarterly operating results ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (could cause the market price of the ) Tj ET Q q 0 0 0 rg BT 196.06 289.25 Td (ADSs to decline.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 268.25 Td (Our revenue and operating results have fluctuated significantly from period to period in the past and will do so in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.25 Td (future. ) Tj ET Q q 0 0 0 rg BT 77.83 256.25 Td (As a result, you should not rely on period-to-period comparisons of our operating results as an indication of our future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.25 Td (performance. In future periods, our revenue and results of operations may be below the expectations of analysts and investors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.25 Td (which could cause the market price of the ) Tj ET Q q 0 0 0 rg BT 218.32 232.25 Td (ADSs to decline.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 211.25 Td (Factors that may cause our operating results to fluctuate include but are not limited to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 187.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 187.25 Td (reductions in orders or cancellations by our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 175.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 175.25 Td (changes in customer mix, the mix of products and services sold and the mix of geographies in which our products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 163.25 Td (services are sold;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 151.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 151.25 Td (reduced visibility into our customers) Tj ET Q q 0 0 0 rg BT 234.33 151.25 Td ( spending plans and associated revenue;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 139.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 139.25 Td (current and potential customer) Tj ET Q q 0 0 0 rg BT 206.60 139.25 Td (, partner and supplier consolidation and concentration; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 127.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 127.25 Td (price and product competition, long sales, qualification and implementation cycles, and unpredictable ordering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 115.25 Td (patterns;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 103.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 103.25 Td (changes in the size, growth or growth prospects of the L) Tj ET Q q 0 0 0 rg BT 308.85 103.25 Td (TEand Internet of ) Tj ET Q q 0 0 0 rg BT 384.74 103.25 Td (Things markets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 91.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 91.25 Td (changes in the competitive dynamics of our market, including new entrants or pricing pressures, and our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 79.25 Td (compete in the L) Tj ET Q q 0 0 0 rg BT 151.66 79.25 Td (TE and Internet of ) Tj ET Q q 0 0 0 rg BT 227.56 79.25 Td (Things markets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 67.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 67.25 Td (timing and success of commercial deployments of and upgrades to 4G wireless networks;) Tj ET Q endstream endobj 51 0 obj <> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 722.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 722.10 Td (timely availability) Tj ET Q q 0 0 0 rg BT 157.49 722.10 Td (, at a reasonable cost, of adequate manufacturing capacity with the sole foundry that manufactures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 710.10 Td (our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 698.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 698.10 Td (our ability to successfully define, design and release new products in a timely manner that meet our customers) Tj ET Q q 0 0 0 rg BT 528.67 698.10 Td ( needs;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 686.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 686.10 Td (timing and growth rate of revenues from the L) Tj ET Q q 0 0 0 rg BT 269.68 686.10 Td (TE and Internet of ) Tj ET Q q 0 0 0 rg BT 345.58 686.10 Td (Things markets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 674.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 674.10 Td (changes in manufacturing costs, including wafer) Tj ET Q q 0 0 0 rg BT 278.53 674.10 Td (, testing and assembly costs, mask costs and manufacturing yields;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 662.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 662.10 Td (the timing of product announcements by competitors or us;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 650.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 650.10 Td (costs associated with litigation, especially related to intellectual property or securities class actions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 638.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 638.10 Td (costs associated with any violation of the U.S. Foreign Corrupt Practices ) Tj ET Q q 0 0 0 rg BT 377.55 638.10 Td (Act, the United Kingdom Bribery ) Tj ET Q q 0 0 0 rg BT 514.20 638.10 Td (Act, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 626.10 Td (other similar foreign laws; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 614.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 614.10 Td (impairment of our ability to transact business in the European Union, uncertainty as to national laws and regulations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 602.10 Td (including intellectual property rights, following the United Kingdom) Tj ET Q q 0 0 0 rg BT 362.83 602.10 Td (s vote to leave the European Union;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 590.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 590.10 Td (changing economic and political conditions at a global or local level;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 578.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 578.10 Td (how well we execute on our strategy and operating plans and the impact of changes in our business model that could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 566.10 Td (result in significant restructuring char) Tj ET Q q 0 0 0 rg BT 235.43 566.10 Td (ges; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 554.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 554.10 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 554.10 Td (our ability to achieve tar) Tj ET Q q 0 0 0 rg BT 183.06 554.10 Td (geted cost reductions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 533.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 112.53 533.10 Td (, sales of our semiconductor solutions fluctuate from period to period due to cyclicality in the semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (industry and the short product life cycles and wide fluctuations in product supply and demand characteristic of this industry) Tj ET Q q 0 0 0 rg BT 543.17 521.10 Td (. ) Tj ET Q q 0 0 0 rg BT 547.99 521.10 Td (W) Tj ET Q q 0 0 0 rg BT 556.63 521.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (expect these cyclical conditions to continue. Due to our limited operating history) Tj ET Q q 0 0 0 rg BT 372.10 509.10 Td (, we have yet to experience an established) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 509.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (pattern of seasonality) Tj ET Q q 0 0 0 rg BT 134.38 497.10 Td (. However) Tj ET Q q 0 0 0 rg BT 175.63 497.10 Td (, business activities in ) Tj ET Q q 0 0 0 rg BT 265.34 497.10 Td (Asia generally slow down in the first quarter of each year during the lunar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (new year period, which could harm our sales and results of operations during the period. Our expense levels are relatively fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (in the short-term and are based, in part, on our future revenue projections. If revenue levels are below our expectations, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.10 Td (experience declines in mar) Tj ET Q q 0 0 0 rg BT 156.21 461.10 Td (gins and profitability or incur a loss from our operations. ) Tj ET Q q 0 0 0 rg BT 385.33 461.10 Td (As a result, our quarterly operating results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.10 Td (are dif) Tj ET Q q 0 0 0 rg BT 75.13 449.10 Td (ficult to predict, even in the near term, which may result in our revenue and results of operations being below the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.10 Td (expectations of analysts and investors, and which could cause the market price of the ) Tj ET Q q 0 0 0 rg BT 391.34 437.10 Td (ADSs to decline.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (If securities or industry analysts cease to publish research reports about us or our industry) Tj ET Q q 0 0 0 rg BT 421.41 416.10 Td (, or if they adversely change their ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (recommendations regarding the ) Tj ET Q q 0 0 0 rg BT 183.30 404.10 Td (ADSs, the market price for the ) Tj ET Q q 0 0 0 rg BT 310.99 404.10 Td (ADSs and trading volume could decline.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 383.10 Td (The trading market for the ) Tj ET Q q 0 0 0 rg BT 180.96 383.10 Td (ADSs is influenced by research reports that industry or securities analysts publish about us or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (our industry) Tj ET Q q 0 0 0 rg BT 97.46 371.10 Td (. If one or more analysts who cover us downgrade the ) Tj ET Q q 0 0 0 rg BT 314.07 371.10 Td (ADSs, the market price for the ) Tj ET Q q 0 0 0 rg BT 438.75 371.10 Td (ADSs would likely decline. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (one or more of these analysts ceases coverage of us or fails to regularly publish reports on us, we could lose visibility in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (financial markets, which, in turn, could cause the market price or trading volume for the ) Tj ET Q q 0 0 0 rg BT 403.83 347.10 Td (ADSs to decline.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 323.10 Td (e have no present intention to pay dividends on our ordinary shares in the foreseeable future and, consequently) Tj ET Q q 0 0 0 rg BT 515.08 323.10 Td (, your only ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (opportunity to achieve a return on your investment during that time is if the price of the ) Tj ET Q q 0 0 0 rg BT 412.21 311.10 Td (ADSs appreciates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 290.10 Td (e have no present intention to pay dividends on our ordinary shares in the foreseeable future. ) Tj ET Q q 0 0 0 rg BT 454.53 290.10 Td (Any recommendation by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (our board of directors to pay dividends will depend on many factors, including our financial condition, results of operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (legal requirements and other factors. ) Tj ET Q q 0 0 0 rg BT 197.78 266.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 247.11 266.10 Td (, if the price of the ) Tj ET Q q 0 0 0 rg BT 322.92 266.10 Td (ADSs falls in the foreseeable future, you will incur a loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (on your investment, without the likelihood that this loss will be of) Tj ET Q q 0 0 0 rg BT 313.19 254.10 Td (fset in part or at all by potential future cash dividends. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (addition, even if we were to pay a dividend on our ordinary shares, French law may prohibit paying such dividends to holders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (of the ) Tj ET Q q 0 0 0 rg BT 74.50 230.10 Td (ADSs or the tax implications of such payments may significantly diminish what you receive.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 209.10 Td (French law may limit the amount of dividends we are able to distribute and exchange rate fluctuations may reduce the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (amount of U.S. dollars you receive in respect of any dividends or other distributions we may pay in the future in connection ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (with your ) Tj ET Q q 0 0 0 rg BT 90.81 185.10 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 164.10 Td (Although our consolidated financial statements are denominated in U.S.dollars, under French law) Tj ET Q q 0 0 0 rg BT 465.80 164.10 Td (, the determination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (whether we have been suf) Tj ET Q q 0 0 0 rg BT 153.16 152.10 Td (ficiently profitable to pay dividends is made on the basis of our unconsolidated annual financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (statements under the French commercial code in accordance with generally accepted accounting principles in France, which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (refer to as French GAAP) Tj ET Q q 0 0 0 rg BT 148.36 128.10 Td (. ) Tj ET Q q 0 0 0 rg BT 153.18 128.10 Td (Therefore, we may be more restricted in our ability to declare dividends than companies not based in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (France. In addition, exchange rate fluctuations may af) Tj ET Q q 0 0 0 rg BT 265.07 116.10 Td (fect the amount of euros that we are able to distribute, and the amount in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (U.S.dollars that our shareholders receive upon the payment of cash dividends or other distributions we declare and pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (euros, if any) Tj ET Q q 0 0 0 rg BT 98.56 92.10 Td (. ) Tj ET Q q 0 0 0 rg BT 103.38 92.10 Td (These factors could harm the value of the ) Tj ET Q q 0 0 0 rg BT 271.09 92.10 Td (ADSs, and, in turn, the U.S.dollar proceeds that holders receive from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (the sale of the ) Tj ET Q q 0 0 0 rg BT 107.26 80.10 Td (ADSs.) Tj ET Q endstream endobj 53 0 obj <> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (23) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Y) Tj ET Q q 0 0 0 rg BT 54.50 722.25 Td (ou may not be able to exercise your right to vote the ordinary shares underlying your ) Tj ET Q q 0 0 0 rg BT 405.25 722.25 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 701.25 Td (Holders of ) Tj ET Q q 0 0 0 rg BT 117.94 701.25 Td (ADSs may exercise voting rights with respect to the ordinary shares represented by the ) Tj ET Q q 0 0 0 rg BT 467.85 701.25 Td (ADSs only in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.25 Td (accordance with the provisions of the deposit agreement. ) Tj ET Q q 0 0 0 rg BT 279.52 689.25 Td (The deposit agreement provides that, upon receipt of notice of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (meeting of holders of our ordinary shares, the depositary will, as soon as practicable thereafter) Tj ET Q q 0 0 0 rg BT 426.75 677.25 Td (, fix a record date for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (determination of ) Tj ET Q q 0 0 0 rg BT 117.82 665.25 Td (ADS holders who shall be entitled to give instructions for the exercise of voting rights. Upon timely receipt of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (notice from us, if we so request, the depositary shall distribute to the holders as of the record date \(i\)the notice of the meeting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (or solicitation of consent or proxy sent by us and \(ii\)a statement as to the manner in which instructions may be given by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (holders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 608.25 Td (Y) Tj ET Q q 0 0 0 rg BT 79.72 608.25 Td (ou may instruct the depositary of your ) Tj ET Q q 0 0 0 rg BT 234.41 608.25 Td (ADSs to vote the ordinary shares underlying your ) Tj ET Q q 0 0 0 rg BT 435.49 608.25 Td (ADSs. Otherwise, you will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td (be able to exercise your right to vote, unless you withdraw the ordinary shares underlying the ) Tj ET Q q 0 0 0 rg BT 424.68 596.25 Td (ADSs you hold. However) Tj ET Q q 0 0 0 rg BT 527.61 596.25 Td (, you ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (may not know about the meeting far enough in advance to withdraw those ordinary shares. If we ask for your instructions, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (depositary) Tj ET Q q 0 0 0 rg BT 90.51 572.25 Td (, upon timely notice from us, will notify you of the upcoming vote and arrange to deliver our voting materials to you. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 560.25 Td (e cannot guarantee you that you will receive the voting materials in time to ensure that you can instruct the depositary to vote ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (your ordinary shares or to withdraw your ordinary share so that you can vote them yourself. In addition, the depositary and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (agents are not responsible for failing to carry out voting instructions, or for the manner of carrying out voting instructions. ) Tj ET Q q 0 0 0 rg BT 540.32 536.25 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (means that you may not be able to exercise your right to vote, and there may be nothing you can do if the ordinary shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (underlying your ) Tj ET Q q 0 0 0 rg BT 115.60 512.25 Td (ADSs are not voted as you requested.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (Y) Tj ET Q q 0 0 0 rg BT 54.50 491.25 Td (ou may be subject to limitations on the transfer of your ) Tj ET Q q 0 0 0 rg BT 282.76 491.25 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 470.25 Td (Y) Tj ET Q q 0 0 0 rg BT 79.72 470.25 Td (our ) Tj ET Q q 0 0 0 rg BT 95.00 470.25 Td (ADSs, which may be evidenced by ) Tj ET Q q 0 0 0 rg BT 237.47 470.25 Td (ADRs, are transferable on the books of the depositary) Tj ET Q q 0 0 0 rg BT 452.04 470.25 Td (. However) Tj ET Q q 0 0 0 rg BT 493.29 470.25 Td (, the depositary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (may close its books at any time, or from time to time when it deems expedient in connection with the performance of its duties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (The depositary may refuse to deliver) Tj ET Q q 0 0 0 rg BT 195.99 446.25 Td (, transfer or register transfers of your ) Tj ET Q q 0 0 0 rg BT 345.38 446.25 Td (ADSs when our books or the books of the depositary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (are closed, or at any time, if we or the depositary think it is advisable to do so because of any requirement of law) Tj ET Q q 0 0 0 rg BT 499.54 434.25 Td (, government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (or governmental body) Tj ET Q q 0 0 0 rg BT 137.16 422.25 Td (, or under any provision of the deposit agreement, or for any other reason.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (As a foreign private issuer) Tj ET Q q 0 0 0 rg BT 157.29 401.25 Td (, we are exempt from a number of rules under the U.S. securities laws and are permitted to file ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (less information with the SEC than a U.S. company) Tj ET Q q 0 0 0 rg BT 261.96 389.25 Td (, our ordinary shares are not listed, and we do not intend to list our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (shares, on any market in France, our home country) Tj ET Q q 0 0 0 rg BT 262.49 377.25 Td (. This may limit the information available to holders of the ) Tj ET Q q 0 0 0 rg BT 505.47 377.25 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 356.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 356.25 Td (e are a foreign private issuer, as defined in the SEC) Tj ET Q q 0 0 0 rg BT 299.00 356.25 Td (s rules and regulations and, consequently) Tj ET Q q 0 0 0 rg BT 462.75 356.25 Td (, we are not subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (all of the disclosure requirements applicable to public companies or) Tj ET Q q 0 0 0 rg BT 320.07 344.25 Td (ganized within the United States. For example, we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (exempt from certain rules under the Exchange ) Tj ET Q q 0 0 0 rg BT 236.37 332.25 Td (Act that regulate disclosure obligations and procedural requirements related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (the solicitation of proxies, consents or authorizations applicable to a security registered under the Exchange ) Tj ET Q q 0 0 0 rg BT 481.58 320.25 Td (Act, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (U.S. proxy rules under Section14 of the Exchange ) Tj ET Q q 0 0 0 rg BT 254.73 308.25 Td (Act. In addition, our of) Tj ET Q q 0 0 0 rg BT 346.76 308.25 Td (ficers and directors are exempt from the reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (and short-swing profit recovery provisions of Section16 of the Exchange ) Tj ET Q q 0 0 0 rg BT 354.14 296.25 Td (Act and related rules with respect to their purchases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (and sales of our securities. Moreover) Tj ET Q q 0 0 0 rg BT 196.83 284.25 Td (, while we have and expect to continue to submit quarterly interim consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (data to the SEC under cover of the SEC) Tj ET Q q 0 0 0 rg BT 211.13 272.25 Td (s Form6-K, we are not required to file periodic reports and financial statements with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (the SEC as frequently or as promptly as U.S.public companies, and are not required to file quarterly reports on Form 10-Q or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (current reports on Form 8-K under the Exchange ) Tj ET Q q 0 0 0 rg BT 246.66 248.25 Td (Act. Furthermore, our ordinary shares are not listed, and we do not currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (intend to list our ordinary shares on any market in France, our home country) Tj ET Q q 0 0 0 rg BT 354.33 236.25 Td (. ) Tj ET Q q 0 0 0 rg BT 358.78 236.25 Td (As a result, we are not subject to the reporting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.25 Td (other requirements of listed companies in France. For instance, we are not required to publish quarterly or semi-annual financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (statements. ) Tj ET Q q 0 0 0 rg BT 96.16 212.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 145.50 212.25 Td (, there is less publicly available information concerning our company than there would be if we were a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (U.S. public company) Tj ET Q q 0 0 0 rg BT 133.28 200.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 179.25 Td (As a foreign private issuer) Tj ET Q q 0 0 0 rg BT 157.29 179.25 Td (, we are permitted to adopt certain home country practices in relation to corporate governance ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 167.25 Td (matters that dif) Tj ET Q q 0 0 0 rg BT 112.10 167.25 Td (fer significantly from NYSE corporate governance listing standards. These practices may af) Tj ET Q q 0 0 0 rg BT 489.69 167.25 Td (ford less ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 155.25 Td (protection to shareholders than they would enjoy if we complied fully with NYSE corporate governance listing standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 134.25 Td (As a foreign private issuer listed on the NYSE, we are subject to NYSE corporate governance listing standards. However) Tj ET Q q 0 0 0 rg BT 557.96 134.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (NYSE rules permit a foreign private issuer like us to follow the corporate governance practices of its home country) Tj ET Q q 0 0 0 rg BT 509.82 122.25 Td (. Certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.25 Td (corporate governance practices in France, which is our home country) Tj ET Q q 0 0 0 rg BT 325.41 110.25 Td (, may dif) Tj ET Q q 0 0 0 rg BT 361.05 110.25 Td (fer significantly from NYSE corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.25 Td (governance listing standards. For example, neither the corporate laws of France nor our by-laws require a majority of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.25 Td (directors to be independent, and we could include non-independent directors as members of our compensation committee and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.25 Td (nominating committee, and our independent directors would not necessarily hold regularly scheduled meetings at which only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.25 Td (independent directors are present. Currently) Tj ET Q q 0 0 0 rg BT 224.62 62.25 Td (, we intend to comply with the NYSE corporate governance listing standards to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.25 Td (extent possible under French law) Tj ET Q q 0 0 0 rg BT 181.04 50.25 Td (. However) Tj ET Q q 0 0 0 rg BT 222.29 50.25 Td (, if we choose to change such practice to follow home country practice in the future, ) Tj ET Q endstream endobj 55 0 obj <> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (our shareholders may be af) Tj ET Q q 0 0 0 rg BT 157.61 722.10 Td (forded less protection than they otherwise would under NYSE corporate governance listing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (standards applicable to U.S.domestic issuers.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 689.10 Td (U.S. holders of the ) Tj ET Q q 0 0 0 rg BT 128.58 689.10 Td (ADSs may suf) Tj ET Q q 0 0 0 rg BT 186.75 689.10 Td (fer adverse tax consequences if we are characterized as a Passive Foreign Investment ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (Company) Tj ET Q q 0 0 0 rg BT 88.58 677.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 656.10 Td (Generally) Tj ET Q q 0 0 0 rg BT 112.27 656.10 Td (, if for any taxable year 75% or more of our gross income is passive income, or at least 50% of our assets are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (held for the production of, or produce, passive income, we would be characterized as a passive foreign investment company) Tj ET Q q 0 0 0 rg BT 544.51 644.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (PFIC, for U.S. federal income tax purposes. ) Tj ET Q q 0 0 0 rg BT 227.34 632.10 Td (T) Tj ET Q q 0 0 0 rg BT 232.75 632.10 Td (o determine if at least 50% of our assets are held for the production of, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (produce, passive income, we may use the market capitalization method for certain periods. Under the market capitalization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (method, the total asset value of a company would be considered to equal the fair market value of its outstanding shares plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (outstanding indebtedness on a relevant testing date. Because the market price of the ) Tj ET Q q 0 0 0 rg BT 386.06 596.10 Td (ADSs has fluctuated substantially and is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (likely to fluctuate in the future, and the market price may af) Tj ET Q q 0 0 0 rg BT 288.11 584.10 Td (fect the determination of whether we will be considered a PFIC, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (there can be no assurance that we will not be considered a PFIC for any taxable year) Tj ET Q q 0 0 0 rg BT 386.60 572.10 Td (. ) Tj ET Q q 0 0 0 rg BT 391.42 572.10 Td (While we do not believe we were a PFIC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (for 2018, there is no assurance that we will not be a PFIC in 2019 or later years. If we are characterized as a PFIC, U.S. holders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (of the ) Tj ET Q q 0 0 0 rg BT 74.50 548.10 Td (ADSs may suf) Tj ET Q q 0 0 0 rg BT 132.65 548.10 Td (fer adverse tax consequences, including having gains realized on the sale of the ) Tj ET Q q 0 0 0 rg BT 451.98 548.10 Td (ADSs treated as ordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (income, rather than capital gain, the loss of the preferential rate applicable to dividends received on the ) Tj ET Q q 0 0 0 rg BT 463.50 536.10 Td (ADSs by individuals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (who are U.S. holders, having interest char) Tj ET Q q 0 0 0 rg BT 217.33 524.10 Td (ges apply to distributions by us and the proceeds of ) Tj ET Q q 0 0 0 rg BT 424.52 524.10 Td (ADS sales and additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (reporting requirements. ) Tj ET Q q 0 0 0 rg BT 145.68 512.10 Td (W) Tj ET Q q 0 0 0 rg BT 154.31 512.10 Td (e do not expect to provide to U.S. holders, the information needed to report income and gain pursuant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (to a qualified electing fund election, which election would alleviate some of the adverse tax consequences of PFIC status, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (we make no undertaking to provide such information in the event that we are a PFIC. See Item 10.ET) Tj ET Q q 0 0 0 rg BT 469.24 488.10 Td (axationMaterial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (United States Federal Income ) Tj ET Q q 0 0 0 rg BT 170.39 476.10 Td (T) Tj ET Q q 0 0 0 rg BT 175.80 476.10 Td (ax Consequences.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 452.10 Td (e are subject to legal actions that could distract our management and increase costs, which may adversely af) Tj ET Q q 0 0 0 rg BT 502.46 452.10 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (financial condition or our reputation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 419.10 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 419.10 Td (August 2017, two securities class action lawsuits were filed, which were consolidated into a single lawsuit in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (September 2017, alleging violations of the U.S. federal securities laws by us, our President and CEO, and our Chief Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 395.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 77.63 395.10 Td (. ) Tj ET Q q 0 0 0 rg BT 82.45 395.10 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 129.20 395.10 Td (fs asserted claims primarily based on purported misrepresentations regarding Sequans) Tj ET Q q 0 0 0 rg BT 475.31 395.10 Td ( revenue recognition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (policy in its ) Tj ET Q q 0 0 0 rg BT 98.67 383.10 Td (Annual Reports on Form20-Ffor the fiscal years ended 2015 and 2016. In May 2018, we along with our President ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (and CEO, and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 183.18 371.10 Td (ficer filed a pre-motion letter requesting permission to file a motion to dismiss the complaint, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (a request that was granted on ) Tj ET Q q 0 0 0 rg BT 167.80 359.10 Td (August 21, 2018. ) Tj ET Q q 0 0 0 rg BT 241.51 359.10 Td (The motion to dismiss was fully briefed and filed \(along with lead plaintif) Tj ET Q q 0 0 0 rg BT 537.38 359.10 Td (fs) Tj ET Q q 0 0 0 rg BT 547.19 359.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (opposition briefing\) in November 2018. ) Tj ET Q q 0 0 0 rg BT 211.52 347.10 Td (The parties await the Court) Tj ET Q q 0 0 0 rg BT 323.15 347.10 Td (s decision on the previously-filed motion to dismiss. In the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (fourth quarter of 2018, we recorded a $352,000 provision for legal proceedings based on our estimate of the expected losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (under this claim.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 302.10 Td (At this time, we are unable to estimate the ultimate outcome of this legal matter and its impact on us. However) Tj ET Q q 0 0 0 rg BT 515.76 302.10 Td (, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (unfavorable outcome in any lawsuit or proceeding could have an adverse impact on our business, financial condition and results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (of operations. Further) Tj ET Q q 0 0 0 rg BT 136.02 278.10 Td (, if our stock price is volatile, we may become involved in further litigation. ) Tj ET Q q 0 0 0 rg BT 441.22 278.10 Td (Any current or future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (litigation, regardless of its merits, could result in substantial costs and a diversion of our management) Tj ET Q q 0 0 0 rg BT 458.03 266.10 Td (s attention and resources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (that are needed to successfully run our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (Y) Tj ET Q q 0 0 0 rg BT 54.50 233.10 Td (ou may be unable to recover in civil proceedings for U.S. securities laws violations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 212.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 212.10 Td (e are a corporation or) Tj ET Q q 0 0 0 rg BT 167.46 212.10 Td (ganized under the laws of France. ) Tj ET Q q 0 0 0 rg BT 304.73 212.10 Td (The majority of our directors are citizens and residents of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (countries other than the United States, and the majority of our assets are located outside of the United States. ) Tj ET Q q 0 0 0 rg BT 486.33 200.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 535.67 200.10 Td (, it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (may be dif) Tj ET Q q 0 0 0 rg BT 92.08 188.10 Td (ficult for investors to obtain jurisdiction over us or our directors in courts in the UnitedStates and enforce against us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (or them judgments obtained against us or them. In addition, we cannot assure you that civil liabilities predicated upon the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (federal securities laws of the United States will be enforceable in France.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (The rights of shareholders in companies subject to French corporate law dif) Tj ET Q q 0 0 0 rg BT 362.95 143.10 Td (fer in material respects from the rights of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (shareholders of corporations incorporated in the United States.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 110.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 110.10 Td (e are a French company with limited liability) Tj ET Q q 0 0 0 rg BT 261.71 110.10 Td (. Our corporate af) Tj ET Q q 0 0 0 rg BT 332.61 110.10 Td (fairs are governed by our by-laws and by the laws ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (governing companies incorporated in France. ) Tj ET Q q 0 0 0 rg BT 233.15 98.10 Td (The rights of shareholders and the responsibilities of members of our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (directors are in many ways dif) Tj ET Q q 0 0 0 rg BT 170.67 86.10 Td (ferent from the rights and obligations of shareholders in companies governed by the laws of U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (jurisdictions. For example, in the performance of its duties, our board of directors is required by French law to consider the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (interests of our company) Tj ET Q q 0 0 0 rg BT 147.99 62.10 Td (, its shareholders, its employees and other stakeholders, rather than solely our shareholders and/or ) Tj ET Q endstream endobj 57 0 obj <> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (creditors. It is possible that some of these parties will have interests that are dif) Tj ET Q q 0 0 0 rg BT 365.07 722.10 Td (ferent from, or in addition to, your interests as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (shareholder) Tj ET Q q 0 0 0 rg BT 95.59 710.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 689.10 Td (Our by-laws and French corporate law contain provisions that may delay or discourage a takeover attempt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 668.10 Td (Provisions contained in our by-laws and the corporate laws of France, the country in which we are incorporated, could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (make it more dif) Tj ET Q q 0 0 0 rg BT 115.69 656.10 Td (ficult for a third party to acquire us, even if doing so might be beneficial to our shareholders. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (provisions of our by-laws impose various procedural and other requirements, which could make it more dif) Tj ET Q q 0 0 0 rg BT 478.10 644.10 Td (ficult for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (shareholders to ef) Tj ET Q q 0 0 0 rg BT 120.40 632.10 Td (fect certain corporate actions. ) Tj ET Q q 0 0 0 rg BT 240.99 632.10 Td (These provisions include the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 620.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 620.10 Td (our shares are in registered form only) Tj ET Q q 0 0 0 rg BT 234.40 620.10 Td (, and we must be notified of any transfer of our shares in order for such transfer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 608.10 Td (to be validly registered;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 596.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 596.10 Td (our by-laws provide for directors to be elected for three-year terms, and we intend to elect one third of the directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 584.10 Td (every year;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 572.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 572.10 Td (our shareholders may grant our board of directors, broad authorizations to increase our share capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 560.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 560.10 Td (our board of directors has the right to appoint directors to fill a vacancy created by the resignation, death or removal of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 548.10 Td (a director) Tj ET Q q 0 0 0 rg BT 122.73 548.10 Td (, subject to the approval by the shareholders of such appointment at the next shareholders) Tj ET Q q 0 0 0 rg BT 482.72 548.10 Td ( meeting, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 536.10 Td (prevents shareholders from having the sole right to fill vacancies on our board of directors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 524.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 524.10 Td (our board of directors can only be convened by its chairman except when no board meeting has been held for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 512.10 Td (than two consecutive months;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 500.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 500.10 Td (our board of directors' meetings can only be regularly held if at least half of the directors attend either physically or by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 488.10 Td (way of secured telecommunications;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 476.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 476.10 Td (approval of at least a majority of the shares entitled to vote at an ordinary shareholders) Tj ET Q q 0 0 0 rg BT 433.96 476.10 Td ( general meeting is required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 464.10 Td (remove directors with or without cause;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 452.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 452.10 Td (advance notice is required for nominations for election to the board of directors or for proposing matters that can be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 440.10 Td (acted upon at a shareholders) Tj ET Q q 0 0 0 rg BT 200.97 440.10 Td ( meeting; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 428.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 428.10 Td (the sections of the by-laws relating to the number of directors and election and removal of a director from of) Tj ET Q q 0 0 0 rg BT 518.38 428.10 Td (fice may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 416.10 Td (only be modified by a resolution adopted by 66 2/3% of our shareholders present or represented at the meeting.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (The exercise or conversion of outstanding stock options, founders' warrants, restricted shares, warrants and convertible ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (notes into ordinary shares will dilute the percentage ownership of our other shareholders and the sale of such shares may ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.46 371.10 Td (fect the market price of the ) Tj ET Q q 0 0 0 rg BT 211.40 371.10 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.10 Td (As of March 22, 2019, there were outstanding stock options, founders' warrants, restricted shares and warrants to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (purchase an aggregate of approximately 8.3 million of our ordinary shares, and more restricted shares, options and warrants will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (likely be granted in the future to our of) Tj ET Q q 0 0 0 rg BT 204.83 326.10 Td (ficers, directors, employees and consultants.) Tj ET Q q 0 0 0 rg BT 384.04 326.10 Td (W) Tj ET Q q 0 0 0 rg BT 392.67 326.10 Td (e also have outstanding two issuances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (convertible notes: one issued in 2015 with further subscription of notes in 2018 \(the "2015 Notes"\), and one issued in 2016 \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td ("2016 Notes"\). ) Tj ET Q q 0 0 0 rg BT 114.14 302.10 Td (The 2015 Notes may be converted into 13.7 million ) Tj ET Q q 0 0 0 rg BT 323.00 302.10 Td (ADSs at a conversion price of $1.70 per ) Tj ET Q q 0 0 0 rg BT 485.46 302.10 Td (ADS and the 2016 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (Notes may be converted into 3.5 million ) Tj ET Q q 0 0 0 rg BT 212.81 290.10 Td (ADSs at a conversion price of $2.25 per ) Tj ET Q q 0 0 0 rg BT 375.27 290.10 Td (ADS.In September 2018 we issued 1,800,000 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (warrants with an exercise price of $1.70 per ) Tj ET Q q 0 0 0 rg BT 226.93 278.10 Td (ADS to the holder of the 2015 Notes. In October 2018 we issued 816,716 warrants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (with an exercise price of $1.35 to the venture debt lender in connection with a 12,000,000 debt financing done at that time. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (February 2019, we issued 9,392,986 warrants with an exercise price of 0.02 to a strategic investor) Tj ET Q q 0 0 0 rg BT 445.23 254.10 Td (. ) Tj ET Q q 0 0 0 rg BT 452.55 254.10 Td (W) Tj ET Q q 0 0 0 rg BT 461.18 254.10 Td (e may issue additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (warrants or convertible notes in connection with acquisitions, borrowing arrangement or other strategic or financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (transactions. ) Tj ET Q q 0 0 0 rg BT 102.08 230.10 Td (The exercise of outstanding stock options, warrants, or convertible notes, and the vesting of restricted shares, will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (dilute the percentage ownership of our other shareholders. ) Tj ET Q q 0 0 0 rg BT 284.51 218.10 Td (The exercise of these options, warrants and convertible notes and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (vesting of restricted shares, with the subsequent sale of the underlying ordinary shares could cause a decline in the market price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (of the ) Tj ET Q q 0 0 0 rg BT 74.50 194.10 Td (ADSs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 173.10 Td (e are subject to the Continued Listing Criteria of the New ) Tj ET Q q 0 0 0 rg BT 296.09 173.10 Td (Y) Tj ET Q q 0 0 0 rg BT 301.09 173.10 Td (ork Stock Exchange \(NYSE\), and our failure to satisfy these ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (criteria may result in the delisting of our ) Tj ET Q q 0 0 0 rg BT 218.59 161.10 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 140.10 Td (On December 31, 2018, we received written notification from the NYSE that we were not in compliance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (continued listing standard set forth in Section 802.01C of the NYSE Listed Company Manual \(Section 802.01C\) because the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (average closing price of our ) Tj ET Q q 0 0 0 rg BT 163.06 116.10 Td (ADSs was less than $1.00 per share over a consecutive 30 trading-day period. On March 1, 2019, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (we received written notification from the NYSE confirming that we have regained compliance with the continued listing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (standard set forth in Section 802.01C. ) Tj ET Q q 0 0 0 rg BT 203.19 92.10 Td (W) Tj ET Q q 0 0 0 rg BT 211.82 92.10 Td (e regained compliance under Section 802.01C after our closing share price on February ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (28, 2019 and our average closing share price for the 30 trading-day period ending February 28, 2019 both exceeded $1.00.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 59.10 Td (There can be no assurance that our stock price will continue to close above $1.00 per share and we will remain compliant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.10 Td (with the Continued Listing Criteria of the NYSE. If our ) Tj ET Q q 0 0 0 rg BT 273.64 47.10 Td (ADSs are ever delisted and we are not able to list our ) Tj ET Q q 0 0 0 rg BT 488.57 47.10 Td (ADSs on another ) Tj ET Q endstream endobj 59 0 obj <> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (national securities exchange, we expect our securities would be quoted on an over) Tj ET Q q 0 0 0 rg BT 377.24 722.10 Td (-the-counter market. If this were to occur) Tj ET Q q 0 0 0 rg BT 541.49 722.10 Td (, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (stockholders could face significant material adverse consequences, including limited availability of market quotations for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (ADSs and reduced liquidity for the trading of our securities. In addition, we could experience a decreased ability to issue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (additional securities and obtain additional financing in the future. ) Tj ET Q q 0 0 0 rg BT 313.13 686.10 Td (There can be no assurance that an active trading market for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (our ) Tj ET Q q 0 0 0 rg BT 64.78 674.10 Td (ADSs will develop or be sustained.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (If we raise additional capital in the future, your ownership in us could be diluted.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (Any issuance of equity we may undertake in the future to raise additional capital could cause the price of the ) Tj ET Q q 0 0 0 rg BT 510.01 632.10 Td (ADSs to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (decline, or require us to issue shares or ) Tj ET Q q 0 0 0 rg BT 206.96 620.10 Td (ADSs at a price that is lower than that paid by holders of our shares or ) Tj ET Q q 0 0 0 rg BT 490.22 620.10 Td (ADSs in the past, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (which would result in those newly issued shares or ) Tj ET Q q 0 0 0 rg BT 254.75 608.10 Td (ADSs being dilutive. If we obtain funds through a credit facility or through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (the issuance of debt or preferred securities, these securities would likely have rights that are senior to your rights as an ) Tj ET Q q 0 0 0 rg BT 524.35 596.10 Td (ADS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (holder) Tj ET Q q 0 0 0 rg BT 74.65 584.10 Td (, which could impair the value of the ) Tj ET Q q 0 0 0 rg BT 223.77 584.10 Td (ADSs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (Item4. Information on the Company) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 538.33 Td (A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 538.33 Td (History and Development of the Company) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 517.10 Td ( History) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 500.10 Td (Sequans Communications S.A. was incorporated as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 289.30 500.10 Td (socit anonyme) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.66 500.10 Td ( under the laws of the French Republic on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (October7, 2003, for a period of 99 years. ) Tj ET Q q 0 0 0 rg BT 217.60 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 226.24 488.10 Td (e are registered at the Nanterre Commerce and Companies Register under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (number 450249677. Our principal executive of) Tj ET Q q 0 0 0 rg BT 242.60 476.10 Td (fices are located at 15-55 boulevard Charles de Gaulle, 92700 Colombes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (France, and our telephone number is +3317072 16 00. Our agent for service of process in the U.S. is GKL) Tj ET Q q 0 0 0 rg BT 481.34 464.10 Td ( Corporate/Search, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (Inc., One Capitol Mall, Suite 660, Sacramento, California 95814.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 431.10 Td (Our website is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 133.77 431.10 Td (www) Tj ET Q q 0 0 0 rg BT 153.04 431.10 Td (.sequans.com) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.92 431.10 Td (. ) Tj ET Q q 0 0 0 rg BT 211.74 431.10 Td (The information on, or that can be accessed through, our website is not part of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (annual report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 398.10 Td (As of the date of this annual report, there has been no indication of any public takeover of) Tj ET Q q 0 0 0 rg BT 432.65 398.10 Td (fers by third parties in respect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (of our ) Tj ET Q q 0 0 0 rg BT 75.61 386.10 Td (ADSs or ordinary shares or by the Company in respect of other companies) Tj ET Q q 0 0 0 rg BT 376.46 386.10 Td ( shares.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 360.10 Td (Principal Capital Expenditur) Tj ET Q q 0 0 0 rg BT 174.33 360.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 343.10 Td (Our capital expenditures including purchase of intangible assets for the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.19 343.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.19 343.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.19 343.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.19 343.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.63 343.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.63 343.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.10 Td (amounted to $5.4 million, $6.4million and $9.2 million, respectively) Tj ET Q q 0 0 0 rg BT 325.49 331.10 Td (. ) Tj ET Q q 0 0 0 rg BT 330.31 331.10 Td (They primarily consisted of purchases related to L) Tj ET Q q 0 0 0 rg BT 530.71 331.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.10 Td (product development as well as capitalized development costs. ) Tj ET Q q 0 0 0 rg BT 302.85 319.10 Td (W) Tj ET Q q 0 0 0 rg BT 311.49 319.10 Td (e anticipate our capital expenditures in the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (December31, 2019 to be primarily for ongoing 4G and 5G product development. ) Tj ET Q q 0 0 0 rg BT 377.85 307.10 Td (W) Tj ET Q q 0 0 0 rg BT 386.49 307.10 Td (e anticipate our capital expenditure in 2019 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.10 Td (to be financed from our cash on hand plus financing from strategic alliances, R&D project financing, debt and/or equity) Tj ET Q q 0 0 0 rg BT 528.15 295.10 Td (. Should ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (we decide to broaden our product range by acquiring or developing complementary technologies, we would need additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (capital expenditures in order to support development of multi-mode or multi-feature products.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 251.33 Td (B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 251.33 Td (Business Overview) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 212.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 212.10 Td (e are a fabless designer) Tj ET Q q 0 0 0 rg BT 174.47 212.10 Td (, developer and supplier of 4G L) Tj ET Q q 0 0 0 rg BT 303.79 212.10 Td (TE semiconductor solutions for wireless mobile broadband and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (Internet of ) Tj ET Q q 0 0 0 rg BT 98.18 200.10 Td (Things \(IoT\) applications, with a specific focus on the single-mode device market. Our solutions incorporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (baseband processor and radio frequency) Tj ET Q q 0 0 0 rg BT 209.34 188.10 Td (, or RF) Tj ET Q q 0 0 0 rg BT 236.60 188.10 Td (, transceiver integrated circuits, or ICs, along with our proprietary signal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (processing techniques, algorithms and software stacks. Our high performance ICs deliver high throughput, low power ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (consumption and high reliability in a small form factor and at a competitive price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 143.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 143.10 Td (e believe the single-mode L) Tj ET Q q 0 0 0 rg BT 192.29 143.10 Td (TE, or L) Tj ET Q q 0 0 0 rg BT 225.53 143.10 Td (TE-only) Tj ET Q q 0 0 0 rg BT 258.20 143.10 Td (, device market is a potentially lar) Tj ET Q q 0 0 0 rg BT 393.80 143.10 Td (ge and underserved segment of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (overall L) Tj ET Q q 0 0 0 rg BT 84.95 131.10 Td (TE device market, and that these devices are characterized by attractive attributes not typically found in the traditional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (multi-mode device market, which include legacy 2G and 3G wireless technologies. Specifically) Tj ET Q q 0 0 0 rg BT 431.79 119.10 Td (, we believe there are significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (advantages in size, power consumption, product cost, development costs and certification costs for our customers producing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 95.10 Td (TE-only devices compared to their more expensive, lar) Tj ET Q q 0 0 0 rg BT 274.43 95.10 Td (ger) Tj ET Q q 0 0 0 rg BT 286.79 95.10 Td (, more power hungry and more complex multi-mode counterparts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.17 95.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (Furthermore, we believe a growing proportion of cellular) Tj ET Q q 0 0 0 rg BT 278.11 83.10 Td (-connected IoT) Tj ET Q q 0 0 0 rg BT 338.73 83.10 Td ( devices, such as industrial machine-to-machine \(M2M\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (devices as well as asset tracking devices, consumer devices and wearables, will integrate 4G L) Tj ET Q q 0 0 0 rg BT 426.78 71.10 Td (TE connectivity solutions as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.10 Td (result of the recent or expected shutdowns of many 2G networks and the longevity and technical advantages of 4G L) Tj ET Q q 0 0 0 rg BT 515.38 59.10 Td (TE in this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.10 Td (market. In addition, the completion of 3GPP) Tj ET Q q 0 0 0 rg BT 226.88 47.10 Td ( Release 13 in 2016 ratified two new L) Tj ET Q q 0 0 0 rg BT 381.47 47.10 Td (TE categories tar) Tj ET Q q 0 0 0 rg BT 449.59 47.10 Td (geting low complexity) Tj ET Q q 0 0 0 rg BT 538.92 47.10 Td (, low ) Tj ET Q endstream endobj 61 0 obj <> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (data-use machine-type communications. Cat M \(also known as Cat M or Cat M1\) and NB-IoT) Tj ET Q q 0 0 0 rg BT 429.24 722.10 Td ( \(also known as L) Tj ET Q q 0 0 0 rg BT 499.42 722.10 Td (TE Cat NB1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (enable dramatically better power ef) Tj ET Q q 0 0 0 rg BT 190.91 710.10 Td (ficiency) Tj ET Q q 0 0 0 rg BT 222.46 710.10 Td (, reduced module costs and better coverage for IoT) Tj ET Q q 0 0 0 rg BT 425.81 710.10 Td ( devices compared to traditional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 698.10 Td (TE or even 2G or 3G solutions. ) Tj ET Q q 0 0 0 rg BT 184.95 698.10 Td (As a result, we believe that the L) Tj ET Q q 0 0 0 rg BT 315.66 698.10 Td (TE-only market will continue to increase, especially as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (operators fully deploy their L) Tj ET Q q 0 0 0 rg BT 166.33 686.10 Td (TE networks, as the volume of data traf) Tj ET Q q 0 0 0 rg BT 324.43 686.10 Td (fic continues to grow) Tj ET Q q 0 0 0 rg BT 408.48 686.10 Td (, and as the IoT) Tj ET Q q 0 0 0 rg BT 470.22 686.10 Td ( market adopts the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (new connectivity technologies. ) Tj ET Q q 0 0 0 rg BT 175.95 674.10 Td (W) Tj ET Q q 0 0 0 rg BT 184.59 674.10 Td (e believe our L) Tj ET Q q 0 0 0 rg BT 243.92 674.10 Td (TE solutions are among the most highly optimized, ef) Tj ET Q q 0 0 0 rg BT 458.98 674.10 Td (ficient and mature ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (solutions in the industry) Tj ET Q q 0 0 0 rg BT 145.24 662.10 Td (, and that they are dif) Tj ET Q q 0 0 0 rg BT 230.03 662.10 Td (ferentiated from those of both the multi-mode \(2G/3G/4G\) solution providers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (from rivals providing single-mode 4G L) Tj ET Q q 0 0 0 rg BT 209.39 650.10 Td (TE solutions. ) Tj ET Q q 0 0 0 rg BT 267.54 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 276.58 650.10 Td (ith the evolution of the standard toward 5G, compatibility with 4G will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (be a requirement. ) Tj ET Q q 0 0 0 rg BT 124.01 638.10 Td (W) Tj ET Q q 0 0 0 rg BT 132.64 638.10 Td (e believe we will be able to deliver dual mode \(4G and 5G\) products leveraging all our past 4G ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (development ef) Tj ET Q q 0 0 0 rg BT 111.24 626.10 Td (forts and reinforcing our position in both the IoT) Tj ET Q q 0 0 0 rg BT 306.02 626.10 Td ( and broadband space. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 605.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 605.10 Td (e have successfully brought to market seven generations of 4G wireless chipsets, including four generations of L) Tj ET Q q 0 0 0 rg BT 531.93 605.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (chipsets, with an eighth generation planned for 2019. ) Tj ET Q q 0 0 0 rg BT 264.27 593.10 Td (The cost, size and power ef) Tj ET Q q 0 0 0 rg BT 373.48 593.10 Td (ficiency of our L) Tj ET Q q 0 0 0 rg BT 440.04 593.10 Td (TE chip designs, coupled with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (our deep understanding of system-level architecture, our advanced wireless signal processing intellectual property and our RF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (expertise, enable us to provide high-performance, low-power and cost-ef) Tj ET Q q 0 0 0 rg BT 340.32 569.10 Td (ficient 4G semiconductor solutions, allowing us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (tar) Tj ET Q q 0 0 0 rg BT 59.87 557.10 Td (get a wide range of wireless broadband and IoT) Tj ET Q q 0 0 0 rg BT 250.17 557.10 Td ( devices. In the broadband data device market, our solutions serve as the core ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (wireless communications platform in these devices, including USB dongles; portable routers; embedded wireless modems for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (computing and multimedia devices; and customer) Tj ET Q q 0 0 0 rg BT 248.42 533.10 Td (-premises equipment, such as fixed wireless broadband access modems, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (routers and residential gateways. In the IoT) Tj ET Q q 0 0 0 rg BT 222.87 521.10 Td ( device markets, our solutions provide connectivity for industrial devices in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (transportation, security) Tj ET Q q 0 0 0 rg BT 141.05 509.10 Td (, asset and people tracking, retail, smart ener) Tj ET Q q 0 0 0 rg BT 319.13 509.10 Td (gy) Tj ET Q q 0 0 0 rg BT 328.48 509.10 Td (, smart city) Tj ET Q q 0 0 0 rg BT 372.54 509.10 Td (, agriculture, healthcare and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (applications.) Tj ET Q q 0 0 0 rg BT 102.64 497.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.28 497.10 Td (e also expect to see strong growth in the IoT) Tj ET Q q 0 0 0 rg BT 288.55 497.10 Td ( market in consumer applications such as personal and property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (trackers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 464.10 Td (From 2005 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.78 464.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.36 464.10 Td (, we shipped approximately 29.4 million 4G baseband-based semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (solutions, which have been deployed by leading wireless carriers around the world. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 431.10 Td (Our L) Tj ET Q q 0 0 0 rg BT 96.74 431.10 Td (TE solutions are currently in commercial deployments in the United States, Canada, Italy) Tj ET Q q 0 0 0 rg BT 453.22 431.10 Td (, France, Germany) Tj ET Q q 0 0 0 rg BT 526.98 431.10 Td (, United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (Kingdom, Indonesia, Malaysia, Philippines, Japan, China, South Korea, India, ) Tj ET Q q 0 0 0 rg BT 364.73 419.10 Td (Australia, Brazil and elsewhere.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 398.10 Td (Our L) Tj ET Q q 0 0 0 rg BT 96.74 398.10 Td (TE product line comprises two families: our StreamrichL) Tj ET Q q 0 0 0 rg BT 324.93 398.10 Td (TE) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 337.15 402.63 Td (TM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.90 398.10 Td ( family addresses the high-performance, feature-rich ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (broadband device segment, while the StreamliteL) Tj ET Q q 0 0 0 rg BT 246.85 386.10 Td (TE) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 259.07 390.63 Td (TM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.81 386.10 Td ( family is designed specifically to address the unique price/performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (requirements of the Internet of ) Tj ET Q q 0 0 0 rg BT 178.43 374.10 Td (Things market, including connected consumer electronics and machine-to-machine devices. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (The figure below highlights our portfolio strategy) Tj ET Q q 0 0 0 rg BT 247.70 362.10 Td (, which allows us to tar) Tj ET Q q 0 0 0 rg BT 340.28 362.10 Td (get a variety of applications with purpose-built, price/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (performance-optimized chipset solutions.) Tj ET Q /GS0 gs q 443.00 0 0 129.00 73.50 207.10 cm /I26 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 186.10 Td (In 2013, we introduced the EZLinkL) Tj ET Q q 0 0 0 rg BT 219.76 186.10 Td (TE) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 231.98 190.63 Td (TM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.73 186.10 Td ( family of L) Tj ET Q q 0 0 0 rg BT 288.85 186.10 Td (TE modules, which provide all-in-one connectivity solutions that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (are designed to simplify the task, and reduce the cost, of embedding L) Tj ET Q q 0 0 0 rg BT 329.06 174.10 Td (TE into mobile computers, tablets, and machine-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (machine devices. Several dif) Tj ET Q q 0 0 0 rg BT 164.27 162.10 Td (ferent EZLinkL) Tj ET Q q 0 0 0 rg BT 226.38 162.10 Td (TE modules have been certified by ) Tj ET Q q 0 0 0 rg BT 368.37 162.10 Td (V) Tj ET Q q 0 0 0 rg BT 374.48 162.10 Td (erizon ) Tj ET Q q 0 0 0 rg BT 401.79 162.10 Td (W) Tj ET Q q 0 0 0 rg BT 410.82 162.10 Td (ireless, ) Tj ET Q q 0 0 0 rg BT 440.82 162.10 Td (A) Tj ET Q q 0 0 0 rg BT 446.93 162.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 466.18 162.10 Td (, ) Tj ET Q q 0 0 0 rg BT 471.00 162.10 Td (T) Tj ET Q q 0 0 0 rg BT 476.19 162.10 Td (-Mobile US, Sprint, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (KDDI, DOCOMO, and Orange for use on their L) Tj ET Q q 0 0 0 rg BT 246.32 150.10 Td (TE networks, and are shipping in various commercial devices. ) Tj ET Q q 0 0 0 rg BT 498.01 150.10 Td (The module ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (strategy was put in place primarily to seed the market with our technology and accelerate time-to-market for us and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (customers during a period when traditional cellular module vendors were not providing L) Tj ET Q q 0 0 0 rg BT 406.82 126.10 Td (TE-only solutions. ) Tj ET Q q 0 0 0 rg BT 486.08 126.10 Td (W) Tj ET Q q 0 0 0 rg BT 494.72 126.10 Td (e have seen this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.10 Td (shift significantly over the past three years, with multiple module vendors now of) Tj ET Q q 0 0 0 rg BT 375.08 114.10 Td (fering L) Tj ET Q q 0 0 0 rg BT 406.65 114.10 Td (TE-only modules. It is our goal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (increasingly rely on module vendors to provide these solutions, allowing us to focus our sales on chipsets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 78.10 Td (According to the Global Mobile Suppliers ) Tj ET Q q 0 0 0 rg BT 242.53 78.10 Td (Association \(GSA\), the number of L) Tj ET Q q 0 0 0 rg BT 387.70 78.10 Td (TE devices shipped annually will increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 Td (from 1.4 billion in 2018 to 2.2 billion in 2023, representing a CAGR of approximately 9%.Over 10 billion L) Tj ET Q q 0 0 0 rg BT 484.36 66.10 Td (TE devices are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.10 Td (expected to ship over this time frame, and according to ) Tj ET Q q 0 0 0 rg BT 271.38 54.10 Td (ABI Research, more than 1.9 billion of them will be single-mode L) Tj ET Q q 0 0 0 rg BT 539.56 54.10 Td (TE ) Tj ET Q endstream endobj 63 0 obj <> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (devices for the IoT) Tj ET Q q 0 0 0 rg BT 125.12 722.10 Td ( market. ) Tj ET Q q 0 0 0 rg BT 162.70 722.10 Td (The firm goes on to project that the single-mode L) Tj ET Q q 0 0 0 rg BT 363.67 722.10 Td (TE IoT) Tj ET Q q 0 0 0 rg BT 392.65 722.10 Td ( device market will grow at a CAGR of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (nearly 100% in this period to reach annual shipments of 910 million units in 2023 for the IoT) Tj ET Q q 0 0 0 rg BT 422.31 710.10 Td ( market. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 689.10 Td (Our L) Tj ET Q q 0 0 0 rg BT 96.74 689.10 Td (TE solutions are incorporated into devices sold by many leading OEMs and ODMs, including in the ) Tj ET Q q 0 0 0 rg BT 499.54 689.10 Td (V) Tj ET Q q 0 0 0 rg BT 505.66 689.10 Td (erizon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.54 677.10 Td (ireless Ellipsis Jetpack MHS900L) Tj ET Q q 0 0 0 rg BT 193.99 677.10 Td ( portable router) Tj ET Q q 0 0 0 rg BT 255.23 677.10 Td (, the Gemalto Cinterion) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 349.65 681.63 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.59 677.10 Td ( ELS31 L) Tj ET Q q 0 0 0 rg BT 392.56 677.10 Td (TE Category 1 and EMS31 Category M1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (industrial M2M modules, the ) Tj ET Q q 0 0 0 rg BT 168.11 665.10 Td (A) Tj ET Q q 0 0 0 rg BT 174.22 665.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 194.04 665.10 Td ( IMS2 module and in a variety of devices and modules produced by ) Tj ET Q q 0 0 0 rg BT 467.03 665.10 Td (AsiaTEL, Foxconn, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (Gemtek, Geotab, Geotrak, Huawei, LinkLabs, Netcomm, Nimbelink, Orion Labs, Pycom, Remo ) Tj ET Q q 0 0 0 rg BT 438.12 653.10 Td (W) Tj ET Q q 0 0 0 rg BT 447.16 653.10 Td (ireless, Sercomm, USI, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 641.10 Td (echnicolor) Tj ET Q q 0 0 0 rg BT 96.71 641.10 Td (, ) Tj ET Q q 0 0 0 rg BT 101.53 641.10 Td (W) Tj ET Q q 0 0 0 rg BT 110.57 641.10 Td (isol, ) Tj ET Q q 0 0 0 rg BT 129.84 641.10 Td (W) Tj ET Q q 0 0 0 rg BT 138.88 641.10 Td (istron NeW) Tj ET Q q 0 0 0 rg BT 184.45 641.10 Td (eb, ZMT) Tj ET Q q 0 0 0 rg BT 219.30 641.10 Td (el, ZTEW) Tj ET Q q 0 0 0 rg BT 258.48 641.10 Td (eLink and others. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (Industry Backgr) Tj ET Q q 0 0 0 rg BT 120.16 615.10 Td (ound) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (Evolution of ) Tj ET Q q 0 0 0 rg BT 103.22 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.74 598.10 Td (ireless Networks) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 581.10 Td (The use of wireless communications devices has increased dramatically in the past decade, and mobile phones and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (wireless data services have become an integral part of day-to-day communication.) Tj ET Q q 0 0 0 rg BT 379.93 569.10 Td (According to the February 2018 Cisco) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 533.51 573.63 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.45 569.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.12 557.10 Td (isual Networking Index, mobile data traf) Tj ET Q q 0 0 0 rg BT 218.67 557.10 Td (fic is expected to increase seven-fold from 2017 to 2022, a compound annual growth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (rate of 46%, and by 2022 over 77.5% of this data will run on 4G networks. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 524.10 Td (This increase in wireless data traf) Tj ET Q q 0 0 0 rg BT 207.43 524.10 Td (fic has been driven by two primary trends. First, the pervasiveness of the Internet with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (its vast array of rich media content and applications along with users) Tj ET Q q 0 0 0 rg BT 326.73 512.10 Td ( desire to be connected anywhere and anytime using a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (variety of dif) Tj ET Q q 0 0 0 rg BT 101.52 500.10 Td (ferent wireless devices is driving a fundamental change in wireless data usage models and increasing demand for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (high speed wireless data connectivity) Tj ET Q q 0 0 0 rg BT 198.25 488.10 Td (. Second, rapid advances in performance and functionality have resulted in mobile phones ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (evolving from solely voice-centric communications devices into data-intensive devices, such as smartphones and tablets, that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (support high-definition video, bandwidth-intensive Internet applications and streaming multimedia content, all of which require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (additional wireless network throughput. On top of this, the price point, size and low power consumption of the more recent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 440.10 Td (TE variants, Cat M1 and Cat NB1, are expected to facilitate a proliferation of IoT) Tj ET Q q 0 0 0 rg BT 381.06 440.10 Td ( devices connected using L) Tj ET Q q 0 0 0 rg BT 488.44 440.10 Td (TE and further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (driving wireless data traf) Tj ET Q q 0 0 0 rg BT 149.01 428.10 Td (fic. ) Tj ET Q q 0 0 0 rg BT 166.50 428.10 Td (As a result, wireless carrier networks using 2G or 3G technology) Tj ET Q q 0 0 0 rg BT 425.51 428.10 Td (, originally designed primarily for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (voice traf) Tj ET Q q 0 0 0 rg BT 87.35 416.10 Td (fic, strained to reliably handle the dramatic increase in wireless broadband data demand. ) Tj ET Q q 0 0 0 rg BT 445.36 416.10 Td (This has been a major driver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (of the rapid shift by operators in many regions to 4G L) Tj ET Q q 0 0 0 rg BT 267.70 404.10 Td (TE technology to better meet this demand. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 383.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 383.10 Td (ireless technologies historically have evolved through successive generations of protocols driven by the need for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 371.10 Td (ficient networks with greater bandwidth and capacity to handle a rising number of subscribers and increasing usage of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (broadband data services. Launched in 1991, 2G wireless networks, based on the Global System for Mobile Communications, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (GSM, standard, and later the IS-95 standard based on Code Division Multiple ) Tj ET Q q 0 0 0 rg BT 362.79 347.10 Td (Access, or CDMA, technology) Tj ET Q q 0 0 0 rg BT 485.73 347.10 Td (, were the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (mobile telephone networks to use digital technology to digitize and compress voice traf) Tj ET Q q 0 0 0 rg BT 399.23 335.10 Td (fic for more ef) Tj ET Q q 0 0 0 rg BT 457.07 335.10 Td (ficient use of spectrum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (bandwidth. ) Tj ET Q q 0 0 0 rg BT 96.54 323.10 Td (These networks were designed primarily to support voice traf) Tj ET Q q 0 0 0 rg BT 342.39 323.10 Td (fic, although ultimately) Tj ET Q q 0 0 0 rg BT 435.33 323.10 Td (, they were capable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (supporting data rates up to 64 kilobits per second, or Kbps, using a circuit-switched data connection.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 290.10 Td (In the late 1990s, 3rd Generation Partnership Project, or 3GPP) Tj ET Q q 0 0 0 rg BT 322.06 290.10 Td (, began defining 3G networks based on the Universal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (Mobile ) Tj ET Q q 0 0 0 rg BT 80.71 278.10 Td (T) Tj ET Q q 0 0 0 rg BT 86.12 278.10 Td (elecommunications System, or UMTS, standard. ) Tj ET Q q 0 0 0 rg BT 283.13 278.10 Td (The first UMTS networks were established in the early 2000s and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (ultimately supported peak downlink data rates of 28 Mbps and higher) Tj ET Q q 0 0 0 rg BT 327.22 266.10 Td (. In parallel to these 3GPP) Tj ET Q q 0 0 0 rg BT 431.83 266.10 Td ( ef) Tj ET Q q 0 0 0 rg BT 441.92 266.10 Td (forts, 3rd Generation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (Partnership Project 2, or 3GPP2, defined the specifications for CDMA2000, which supported 1xEV) Tj ET Q q 0 0 0 rg BT 447.68 254.10 Td (-DO \(EV) Tj ET Q q 0 0 0 rg BT 483.33 254.10 Td (olution Data Only\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (implementations capable of up to 3.1 Mbps downlink speeds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 221.10 Td (Despite the advances in data rates provided by these improvements on both the 3GPP) Tj ET Q q 0 0 0 rg BT 414.99 221.10 Td ( and 3GPP2 paths, these 2G and 3G ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.10 Td (networks remain constrained by legacy technologies that were designed primarily for voice traf) Tj ET Q q 0 0 0 rg BT 430.85 209.10 Td (fic, which are characterized by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (limited throughput and inef) Tj ET Q q 0 0 0 rg BT 159.02 197.10 Td (ficient utilization of spectrum. Unable to ef) Tj ET Q q 0 0 0 rg BT 331.84 197.10 Td (fectively address the fast-growing demand for wireless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (broadband data services in a cost-ef) Tj ET Q q 0 0 0 rg BT 192.31 185.10 Td (fective manner using legacy 2G and 3G networks, most wireless carriers have moved to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (what are commonly referred to as 4G) Tj ET Q q 0 0 0 rg BT 204.80 173.10 Td ( networks using L) Tj ET Q q 0 0 0 rg BT 275.82 173.10 Td (TE technology) Tj ET Q q 0 0 0 rg BT 334.32 173.10 Td (, which provide much higher peak downlink and uplink ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (speeds in a more spectrally-ef) Tj ET Q q 0 0 0 rg BT 168.71 161.10 Td (ficient manner) Tj ET Q q 0 0 0 rg BT 226.19 161.10 Td (. ) Tj ET Q q 0 0 0 rg BT 233.51 161.10 Td (The first version of the 3GPP) Tj ET Q q 0 0 0 rg BT 350.62 161.10 Td ( L) Tj ET Q q 0 0 0 rg BT 358.31 161.10 Td (TE specification, Release 8, defined four User ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (Equipment \(UE\) categories, or performance levels. UE Category 1 provides peak downlink speeds of 10 Mbps, and uplink of 5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (Mbps. UE Category 2 provides 50 Mbps downlink and 25 Mbps uplink, while Categories 3 and 4 deliver 100 Mbps and 150 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (Mbps downlink, respectively) Tj ET Q q 0 0 0 rg BT 165.22 125.10 Td (, each with a peak uplink speed of 50 Mbps. In subsequent releases of the 3GPP) Tj ET Q q 0 0 0 rg BT 484.50 125.10 Td ( L) Tj ET Q q 0 0 0 rg BT 492.20 125.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (specifications, Releases 10 and later\), called L) Tj ET Q q 0 0 0 rg BT 234.06 113.10 Td (TE-Advanced, additional improvements in features and performance were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (specified. ) Tj ET Q q 0 0 0 rg BT 90.41 101.10 Td (These L) Tj ET Q q 0 0 0 rg BT 121.98 101.10 Td (TE-Advanced networks are already deployed by at least 187 operators worldwide, according to a February ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 Td (2017 report by the Global Mobile Suppliers ) Tj ET Q q 0 0 0 rg BT 226.42 89.10 Td (Association. ) Tj ET Q q 0 0 0 rg BT 278.46 89.10 Td (The initial versions of L) Tj ET Q q 0 0 0 rg BT 374.19 89.10 Td (TE-Advanced can provide as much as 300 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (Mbps of downlink speed \(3GPP) Tj ET Q q 0 0 0 rg BT 177.46 77.10 Td ( Release 10 UE Category 6\), with subsequent versions providing downlink speeds of up to 600 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (Mbps and peak uplink speeds of up to 100 Mbps \(3GPP) Tj ET Q q 0 0 0 rg BT 273.01 65.10 Td ( Release 12 User Equipment Category 12\). More recently) Tj ET Q q 0 0 0 rg BT 505.07 65.10 Td (, several UE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.10 Td (Categories \(16 and above, introduced as part of 3GPP) Tj ET Q q 0 0 0 rg BT 264.35 53.10 Td ( Release 12 and 13\) have specified speeds up to or exceeding 1 gigabit per ) Tj ET Q endstream endobj 65 0 obj <> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (second \(Gbps\). ) Tj ET Q q 0 0 0 rg BT 114.86 722.10 Td (These higher speed categories involve aggregating multiple carriers, applying higher) Tj ET Q q 0 0 0 rg BT 453.43 722.10 Td (-order MIMO antenna ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.28 710.10 Td (, and more advanced modulation techniques. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 689.10 Td (In 2016, the first operators began deploying the variants of L) Tj ET Q q 0 0 0 rg BT 316.13 689.10 Td (TE optimized for Iot \(Cat M and NB-IoT\). Operating in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (licensed spectrum, low power wide area networks can provide low cost, yet secure, connectivity to battery-powered devices in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (both rural and urban locations. Following successful pilots involving a wide variety of use cases, Cat M and NB-IoT) Tj ET Q q 0 0 0 rg BT 515.34 665.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (connectivity has now been deployed across North ) Tj ET Q q 0 0 0 rg BT 250.28 653.10 Td (America, East ) Tj ET Q q 0 0 0 rg BT 308.87 653.10 Td (Asia and in many European countries. ) Tj ET Q q 0 0 0 rg BT 466.05 653.10 Td (According to GSMA, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (87 Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 121.54 641.10 Td ( commercial network launches were already made over the world by February 2019, up from 42 networks in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (February 2018. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 608.10 Td (The figure below provides a simplified perspective on the evolution of wireless technologies providing ever) Tj ET Q q 0 0 0 rg BT 504.85 608.10 Td (-increasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (performance: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 103.85 323.10 Td () Tj ET Q /GS0 gs q 402.00 0 0 268.00 106.10 323.10 cm /I27 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 302.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 302.10 Td (ireless carriers are seeking to quickly deploy and transition existing wireless data services to more ef) Tj ET Q q 0 0 0 rg BT 484.73 302.10 Td (ficient 4G ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (networks, which require less capital expenditure for a given amount of data throughput. ) Tj ET Q q 0 0 0 rg BT 401.90 290.10 Td (At the same time, potential average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (revenue per account, or ) Tj ET Q q 0 0 0 rg BT 145.29 278.10 Td (ARP) Tj ET Q q 0 0 0 rg BT 163.82 278.10 Td (A, can be increased by providing value-added mobile broadband services and solutions that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (better enabled by the speed and performance of 4G networks. ) Tj ET Q q 0 0 0 rg BT 297.46 266.10 Td (According to the November 2018 Cisco) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 457.15 270.63 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.09 266.10 Td ( ) Tj ET Q q 0 0 0 rg BT 464.41 266.10 Td (V) Tj ET Q q 0 0 0 rg BT 471.03 266.10 Td (isual Networking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (Index, internet protocol video traf) Tj ET Q q 0 0 0 rg BT 184.55 254.10 Td (fic will account for 82% of total mobile data traf) Tj ET Q q 0 0 0 rg BT 378.46 254.10 Td (fic by 2022, which is particularly problematic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (for legacy networks to support economically) Tj ET Q q 0 0 0 rg BT 227.41 242.10 Td (. ) Tj ET Q q 0 0 0 rg BT 232.23 242.10 Td (These factors are key drivers of the move by mobile network operators to L) Tj ET Q q 0 0 0 rg BT 533.71 242.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (technology) Tj ET Q q 0 0 0 rg BT 93.28 230.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 206.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 121.90 206.10 Td (, carriers in developing regions are increasingly embracing 4G wireless technology as a cost-ef) Tj ET Q q 0 0 0 rg BT 501.03 206.10 Td (fective and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (easier) Tj ET Q q 0 0 0 rg BT 72.62 194.10 Td (-to-deploy alternative to wireline networks for delivering broadband capability to subscribers. ) Tj ET Q q 0 0 0 rg BT 449.72 194.10 Td (According to a 2018 report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (by the International ) Tj ET Q q 0 0 0 rg BT 130.13 182.10 Td (T) Tj ET Q q 0 0 0 rg BT 135.54 182.10 Td (elecommunications Union, in the developing regions of the world, internet penetration was projected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (reach 51.2% by the end of 2018, up from 41.3% at the end of 2017. 4G wireless technology is being deployed in many of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (developing regions to increase access to broadband services. ) Tj ET Q q 0 0 0 rg BT 296.45 158.10 Td (This trend is expected to continue, especially as the higher UE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (category implementations approach gigabit per second performance levels. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 125.10 Td (While increasing demand for mobile and fixed broadband connectivity is driving L) Tj ET Q q 0 0 0 rg BT 404.98 125.10 Td (TE technology along a performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (vector) Tj ET Q q 0 0 0 rg BT 74.08 113.10 Td (, the emer) Tj ET Q q 0 0 0 rg BT 113.61 113.10 Td (ging IoT) Tj ET Q q 0 0 0 rg BT 148.14 113.10 Td ( market is pushing wireless technology along a dif) Tj ET Q q 0 0 0 rg BT 349.03 113.10 Td (ferent vector) Tj ET Q q 0 0 0 rg BT 399.28 113.10 Td (. Many M2M and IoT) Tj ET Q q 0 0 0 rg BT 486.59 113.10 Td ( applications are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (moving to L) Tj ET Q q 0 0 0 rg BT 98.03 101.10 Td (TE connectivity for its expected longevity) Tj ET Q q 0 0 0 rg BT 265.94 101.10 Td (, and because the technology is being optimized for improved coverage, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 Td (reduced power consumption and lower cost. Many machine-to-machine connections are of the set it and for) Tj ET Q q 0 0 0 rg BT 484.17 89.10 Td (get it variety) Tj ET Q q 0 0 0 rg BT 538.49 89.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (are expected to remain operational for ten or more years, sometimes powered by a battery) Tj ET Q q 0 0 0 rg BT 407.87 77.10 Td (. ) Tj ET Q q 0 0 0 rg BT 412.32 77.10 Td (According to the November 2018 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (Cisco) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 72.28 69.63 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.22 65.10 Td ( ) Tj ET Q q 0 0 0 rg BT 79.54 65.10 Td (V) Tj ET Q q 0 0 0 rg BT 86.16 65.10 Td (isual Networking Index, global M2M traf) Tj ET Q q 0 0 0 rg BT 252.05 65.10 Td (fic is expected to grow at a 47% CAGR from 2017 to 2022, and over 14.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.10 Td (billion M2M modules are expected to be connected by 2022. ) Tj ET Q q 0 0 0 rg BT 295.09 53.10 Td (The overall sur) Tj ET Q q 0 0 0 rg BT 355.44 53.10 Td (ge in the number of mobile and M2M connections ) Tj ET Q endstream endobj 67 0 obj <> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (and the traf) Tj ET Q q 0 0 0 rg BT 94.85 722.10 Td (fic they produce, coupled with the relative scarcity of available wireless spectrum, has prompted a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (operators, including ) Tj ET Q q 0 0 0 rg BT 131.43 710.10 Td (A) Tj ET Q q 0 0 0 rg BT 137.54 710.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 157.36 710.10 Td ( in the United States and others in South Korea and Japan, to shut down their aging 2G networks so ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (they can re-farm the spectrum for use with 4G L) Tj ET Q q 0 0 0 rg BT 242.12 698.10 Td (TE technology) Tj ET Q q 0 0 0 rg BT 300.62 698.10 Td (. ) Tj ET Q q 0 0 0 rg BT 305.07 698.10 Td (As a result, many new machine-to-machine and Internet of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Things device deployments are incorporating L) Tj ET Q q 0 0 0 rg BT 242.68 686.10 Td (TE technology) Tj ET Q q 0 0 0 rg BT 301.18 686.10 Td (, despite the fact that some may not need the throughput ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (performance provided by traditional L) Tj ET Q q 0 0 0 rg BT 201.86 674.10 Td (TE UE Categories.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 653.10 Td (The industry has introduced new variants of L) Tj ET Q q 0 0 0 rg BT 257.25 653.10 Td (TE which optimize for low power consumption and reduced complexity) Tj ET Q q 0 0 0 rg BT 545.14 653.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (rather than high speed, in order to address the needs of machine-to-machine and other connected objects in the IoT) Tj ET Q q 0 0 0 rg BT 507.76 641.10 Td (.Specifically) Tj ET Q q 0 0 0 rg BT 559.87 641.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (in 2015 and 2016, L) Tj ET Q q 0 0 0 rg BT 129.41 629.10 Td (TE Category 1, with a peak downlink speed of 10 Mbps, was deployed by operators such as ) Tj ET Q q 0 0 0 rg BT 499.43 629.10 Td (V) Tj ET Q q 0 0 0 rg BT 505.54 629.10 Td (erizon, ) Tj ET Q q 0 0 0 rg BT 535.34 629.10 Td (T) Tj ET Q q 0 0 0 rg BT 540.54 629.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (Mobile, ) Tj ET Q q 0 0 0 rg BT 82.83 617.10 Td (A) Tj ET Q q 0 0 0 rg BT 88.95 617.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 108.76 617.10 Td ( and NTT) Tj ET Q q 0 0 0 rg BT 147.46 617.10 Td ( DoCoMo to enable their IoT) Tj ET Q q 0 0 0 rg BT 264.20 617.10 Td ( and M2M customers to move from legacy 2G and 3G technology to L) Tj ET Q q 0 0 0 rg BT 546.28 617.10 Td (TE.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 596.10 Td (Meanwhile, 3GPP) Tj ET Q q 0 0 0 rg BT 146.46 596.10 Td ( has defined L) Tj ET Q q 0 0 0 rg BT 202.46 596.10 Td (TE-based standards for Machine-T) Tj ET Q q 0 0 0 rg BT 341.43 596.10 Td (ype Communications \(MTC\), introducing narrower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (bandwidths, reduced complexity) Tj ET Q q 0 0 0 rg BT 179.09 584.10 Td (, reduced throughput, improved coverage and reduced power modes to the L) Tj ET Q q 0 0 0 rg BT 483.90 584.10 Td (TE standard.) Tj ET Q q 0 0 0 rg BT 537.32 584.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (new MTC features began to be introduced in 3GPP) Tj ET Q q 0 0 0 rg BT 254.08 572.10 Td ( Release 12, with further additions and optimizations in Releases 13, 14 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (15.) Tj ET Q q 0 0 0 rg BT 64.32 560.10 Td (The optimizations are summarized in the graphic below) Tj ET Q q 0 0 0 rg BT 286.65 560.10 Td (. ) Tj ET Q /GS0 gs q 469.00 0 0 184.00 73.50 362.10 cm /I28 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 341.10 Td (3GPP) Tj ET Q q 0 0 0 rg BT 96.47 341.10 Td ( Release 13, completed in mid-2016, introduced Cat M, also called L) Tj ET Q q 0 0 0 rg BT 371.60 341.10 Td (TE Category M1, featuring 1.4MHz ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (bandwidth and peak speeds under 1 Mbps; and it also introduced a narrowband IoT) Tj ET Q q 0 0 0 rg BT 382.84 329.10 Td ( \(NB-IoT\) category) Tj ET Q q 0 0 0 rg BT 459.94 329.10 Td (, also called Category ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (NB1, with 200 kHz bandwidth and peak speeds under 200 kbps.) Tj ET Q q 0 0 0 rg BT 309.00 317.10 Td (The 3GPP) Tj ET Q q 0 0 0 rg BT 350.02 317.10 Td ( Release 14 completed in June 2017 has added a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (higher data rate and multicast support, has improved positioning and has enhanced ) Tj ET Q q 0 0 0 rg BT 382.29 305.10 Td (V) Tj ET Q q 0 0 0 rg BT 388.22 305.10 Td (oL) Tj ET Q q 0 0 0 rg BT 398.41 305.10 Td (TE and mobilty for Category M. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (Category NB1, Release 14 has added positioning, exclusive chip identification, multicast and low power class \(14Bdm\). ) Tj ET Q q 0 0 0 rg BT 533.10 293.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (new categories provide excellent power ef) Tj ET Q q 0 0 0 rg BT 218.41 281.10 Td (ficiency) Tj ET Q q 0 0 0 rg BT 249.96 281.10 Td (, enabling years-long battery life for the devices they connect. ) Tj ET Q q 0 0 0 rg BT 502.18 281.10 Td (They also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (provide superior network coverage and reduced module costs compared to their predecessor technologies, including traditional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 257.10 Td (TE, 2G and 3G. In addition, these new technologies are compatible with existing L) Tj ET Q q 0 0 0 rg BT 388.41 257.10 Td (TE networks, generally via a software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (upgrade to the network infrastructure already deployed, and they can operate on the same spectrum already deployed by L) Tj ET Q q 0 0 0 rg BT 537.56 245.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (operators. ) Tj ET Q q 0 0 0 rg BT 94.03 233.10 Td (This combination of attributes is expected to drive significant demand for these technologies in M2M and IoT) Tj ET Q q 0 0 0 rg BT 533.74 233.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (applications. ) Tj ET Q q 0 0 0 rg BT 102.64 221.10 Td (The graphic below depicts how various L) Tj ET Q q 0 0 0 rg BT 267.79 221.10 Td (TE categories might map to a range of IoT) Tj ET Q q 0 0 0 rg BT 438.10 221.10 Td ( applications. ) Tj ET Q endstream endobj 69 0 obj <> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (31) Tj ET Q /GS0 gs q 457.00 0 0 275.00 73.50 454.00 cm /I29 Do Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 433.00 Td (4G ) Tj ET Q q 0 0 0 rg BT 64.04 433.00 Td (W) Tj ET Q q 0 0 0 rg BT 72.56 433.00 Td (ireless Networks) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 416.00 Td (4G architecture represents a fundamental technological change in the design of wireless communication networks. 2G ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.00 Td (and 3G networks were originally designed to support voice communications and utilize older circuit switching technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.00 Td (based on wireline telephone system design concepts. Circuit switching technology is inflexible as it requires a continuous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.00 Td (dedicated connection between the source and destination of the communication, and is inef) Tj ET Q q 0 0 0 rg BT 413.36 380.00 Td (ficient as network capacity is wasted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.00 Td (on connections that are established but not in continuous use. 4G, which employs concepts such as packet switching and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.00 Td (internet protocol, or IP) Tj ET Q q 0 0 0 rg BT 139.48 356.00 Td (, improves the scalability and performance of data networks. Packet switching technology makes more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.00 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 344.00 Td (ficient use of network capacity for data communication by transmitting data in packets over multiple shared connections as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.00 Td (compared to a dedicated connection. OFDMA) Tj ET Q q 0 0 0 rg BT 233.89 332.00 Td ( and MIMO have emer) Tj ET Q q 0 0 0 rg BT 325.34 332.00 Td (ged as key technologies that increase ef) Tj ET Q q 0 0 0 rg BT 483.43 332.00 Td (ficient use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.00 Td (spectrum, signal reliability) Tj ET Q q 0 0 0 rg BT 155.77 320.00 Td (, throughput and range in 4G networks compared to 2G and 3G networks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 308.00 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.10 308.00 Td (OFDMA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.09 308.00 Td ( is a digital modulation and access technique that achieves significantly higher throughput within a given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 296.00 Td (frequency spectrum than the ) Tj ET Q q 0 0 0 rg BT 200.98 296.00 Td (TDMA) Tj ET Q q 0 0 0 rg BT 229.88 296.00 Td ( and CDMA) Tj ET Q q 0 0 0 rg BT 278.77 296.00 Td ( techniques used in 2G and 3G wireless networks. OFDMA) Tj ET Q q 0 0 0 rg BT 516.52 296.00 Td ( splits the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 284.00 Td (wireless signal into multiple lower frequency sub-signals spread throughout available spectrum during transmission, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 272.00 Td (ef) Tj ET Q q 0 0 0 rg BT 92.69 272.00 Td (fectively reducing the demands on the network for each sub-signal and enabling increased overall speed and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 260.00 Td (performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 248.00 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.10 248.00 Td (MIMO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.31 248.00 Td ( is a smart antenna technology that enables higher data throughput and signal range without requiring additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 236.00 Td (bandwidth or transmit power) Tj ET Q q 0 0 0 rg BT 200.36 236.00 Td (. MIMO employs multiple antennae to more ef) Tj ET Q q 0 0 0 rg BT 387.36 236.00 Td (ficiently transmit and receive wireless data.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 215.00 Td (The throughput and range extension capabilities of OFDMA) Tj ET Q q 0 0 0 rg BT 314.84 215.00 Td ( and MIMO technologies also enable infrastructure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.00 Td (installations to cover a lar) Tj ET Q q 0 0 0 rg BT 152.62 203.00 Td (ger service area and provide increased network capacity) Tj ET Q q 0 0 0 rg BT 376.02 203.00 Td (, thereby reducing capital expenditures for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.00 Td (wireless carriers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 170.00 Td (L) Tj ET Q q 0 0 0 rg BT 78.69 170.00 Td (TE has become the dominant technology for 4G wireless broadband access, particularly among lar) Tj ET Q q 0 0 0 rg BT 472.82 170.00 Td (ge mobile operators ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.00 Td (who have historically deployed 3GPP) Tj ET Q q 0 0 0 rg BT 200.22 158.00 Td ( or 3GPP2 technology) Tj ET Q q 0 0 0 rg BT 288.18 158.00 Td (. ) Tj ET Q q 0 0 0 rg BT 293.00 158.00 Td (The GSA) Tj ET Q q 0 0 0 rg BT 330.50 158.00 Td ( counted 710 commercial L) Tj ET Q q 0 0 0 rg BT 439.54 158.00 Td (TE networks in 217 countries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.00 Td (as of January 31, 2018, making it the fastest developing mobile communications system technology ever) Tj ET Q q 0 0 0 rg BT 467.75 146.00 Td (.) Tj ET Q q 0 0 0 rg BT 472.57 146.00 Td (W) Tj ET Q q 0 0 0 rg BT 481.20 146.00 Td (orldwide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.00 Td (subscribers were estimated at 3.74 billion at the end of September 2018 by GSA. Leading this trend, according GSA, the ) Tj ET Q q 0 0 0 rg BT 536.89 134.00 Td (Asia-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.00 Td (Pacific region was estimated to represent 65.2% of global subscriptions followed by Europe with 12.4% and North ) Tj ET Q q 0 0 0 rg BT 510.79 122.00 Td (America ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.00 Td (with 10.4% at the end of September 2018. ) Tj ET Q q 0 0 0 rg BT 220.02 110.00 Td (According to GSA, L) Tj ET Q q 0 0 0 rg BT 305.20 110.00 Td (TE subscribers will exceed 5.96 billion by 2022. ) Tj ET Q q 0 0 0 rg BT 504.15 110.00 Td (The number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.00 Td (of L) Tj ET Q q 0 0 0 rg BT 65.52 98.00 Td (TE devices shipped annually will increase from 1.4 billion in 2018 to 1.1 billion in 2023. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 77.00 Td (The rapid pace of deployment of L) Tj ET Q q 0 0 0 rg BT 211.97 77.00 Td (TE networks worldwide implies that in some regions, operators already have or are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.00 Td (preparing to achieve L) Tj ET Q q 0 0 0 rg BT 138.82 65.00 Td (TE coverage at parity or better compared to their 2G or 3G coverage footprint. ) Tj ET Q q 0 0 0 rg BT 455.45 65.00 Td (V) Tj ET Q q 0 0 0 rg BT 461.57 65.00 Td (erizon ) Tj ET Q q 0 0 0 rg BT 488.87 65.00 Td (W) Tj ET Q q 0 0 0 rg BT 497.91 65.00 Td (ireless for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.00 Td (instance has said that it has substantially completed its L) Tj ET Q q 0 0 0 rg BT 274.92 53.00 Td (TE network build as of mid-2013, achieving population coverage parity ) Tj ET Q endstream endobj 71 0 obj <> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (with their 3G network of over 98%. Meanwhile, South Korean and Japanese L) Tj ET Q q 0 0 0 rg BT 362.94 722.10 Td (TE operators achieved 100% population ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (coverage in 2012. In this environment, many devices will not require 2G or 3G support. Currently) Tj ET Q q 0 0 0 rg BT 440.98 710.10 Td (, this is especially true outside ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (of the handset market, in devices such as tablets, laptops, mobile hotspots, USB modems, consumer electronics devices, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (M2M applications. In these data devices the usage models are data-centric rather than voice-centric, and there are significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (advantages in size, power consumption, product cost, development costs and certification costs for L) Tj ET Q q 0 0 0 rg BT 451.80 674.10 Td (TE-only implementations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (compared to their more expensive, lar) Tj ET Q q 0 0 0 rg BT 200.93 662.10 Td (ger) Tj ET Q q 0 0 0 rg BT 213.29 662.10 Td (, more power hungry and more complex multi-mode equivalents. In some regions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 650.10 Td (TE-only handsets may emer) Tj ET Q q 0 0 0 rg BT 166.98 650.10 Td (ge as well, particularly for domestic market use. ) Tj ET Q q 0 0 0 rg BT 361.73 650.10 Td (These L) Tj ET Q q 0 0 0 rg BT 393.29 650.10 Td (TE-only device-level advantages, coupled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (with the network-level economic benefits to carriers, imply that a significant market exists for L) Tj ET Q q 0 0 0 rg BT 433.18 638.10 Td (TE-only devices. Over 10 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (billion L) Tj ET Q q 0 0 0 rg BT 83.30 626.10 Td (TE devices are expected to ship over this time frame, and according to ) Tj ET Q q 0 0 0 rg BT 367.09 626.10 Td (ABI Research, 1.9 billion of them will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (single-mode L) Tj ET Q q 0 0 0 rg BT 106.62 614.10 Td (TE devices for the IoT) Tj ET Q q 0 0 0 rg BT 196.96 614.10 Td ( market. ) Tj ET Q q 0 0 0 rg BT 231.67 614.10 Td (ABI research projects that the single-mode L) Tj ET Q q 0 0 0 rg BT 410.69 614.10 Td (TE IoT) Tj ET Q q 0 0 0 rg BT 439.67 614.10 Td ( device market will grow at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (CAGR of 100% in this period to reach annual IoT) Tj ET Q q 0 0 0 rg BT 249.55 602.10 Td ( device shipments of 910 million units in 2023.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 576.10 Td (Challenges Faced By 4G W) Tj ET Q q 0 0 0 rg BT 160.03 576.10 Td (ir) Tj ET Q q 0 0 0 rg BT 166.33 576.10 Td (eless Semiconductor Pr) Tj ET Q q 0 0 0 rg BT 260.38 576.10 Td (oviders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 559.10 Td (Suppliers of 4G semiconductor solutions face significant challenges:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 547.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.10 547.10 Td (Execution Challenges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.58 547.10 Td (.) Tj ET Q q 0 0 0 rg BT 177.39 547.10 Td (The rapid evolution of wireless protocols, such as L) Tj ET Q q 0 0 0 rg BT 383.93 547.10 Td (TE to L) Tj ET Q q 0 0 0 rg BT 414.11 547.10 Td (TE ) Tj ET Q q 0 0 0 rg BT 428.28 547.10 Td (Advanced, requires sustained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 535.10 Td (product development excellence and ongoing collaboration with carriers to meet market technology needs. Subscriber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 523.10 Td (demand and carriers) Tj ET Q q 0 0 0 rg BT 168.76 523.10 Td ( push to increase revenues by providing new and higher performance devices have driven OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 511.10 Td (and ODM product life cycles to become shorter and require semiconductor solution providers to adhere to quick time-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 499.10 Td (to-market schedules while providing fast and ef) Tj ET Q q 0 0 0 rg BT 275.42 499.10 Td (ficient transition from design-in to volume production. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 487.10 Td (wireless carriers require semiconductor solutions to under) Tj ET Q q 0 0 0 rg BT 316.52 487.10 Td (go extensive certification qualification and interoperability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 475.10 Td (testing prior to mass production.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 463.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.10 463.10 Td (T) Tj ET Q q 0 0 0 rg BT 89.74 463.10 Td (echnology Challenges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.33 463.10 Td (.In order to increase throughput with minimal cost, wireless carriers require more ef) Tj ET Q q 0 0 0 rg BT 516.09 463.10 Td (ficient use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 451.10 Td (of spectrum through the implementation of complex signal processing algorithms, such as OFDMA) Tj ET Q q 0 0 0 rg BT 483.09 451.10 Td ( and MIMO, that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 439.10 Td (require a significant amount of system-level and software expertise in addition to IC design knowledge. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 427.10 Td (OEM and ODM customers) Tj ET Q q 0 0 0 rg BT 195.73 427.10 Td ( desire for continuous improvements in power ef) Tj ET Q q 0 0 0 rg BT 390.22 427.10 Td (ficiency) Tj ET Q q 0 0 0 rg BT 421.77 427.10 Td (, reduced form factor and lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 415.10 Td (cost require rapid design cycles employing increasingly advanced silicon processes, improved RF transceiver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 403.10 Td (performance and integration of additional features. Furthermore, until L) Tj ET Q q 0 0 0 rg BT 371.86 403.10 Td (TE networks are fully deployed by the carrier) Tj ET Q q 0 0 0 rg BT 553.88 403.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 391.10 Td (the need to provide an optimal user experience in areas of poor network coverage or areas where coverage changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 379.10 Td (from 2G or 3G to 4G requires multi-mode system designs that are capable of seamlessly transitioning between the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 367.10 Td (technologies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 341.10 Td ( Competitive Str) Tj ET Q q 0 0 0 rg BT 137.45 341.10 Td (engths) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 324.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 324.10 Td (e believe the following competitive strengths enable us to address the challenges faced by 4G wireless semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.10 Td (providers:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 294.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 294.10 Td (A) Tj ET Q q 0 0 0 rg BT 91.22 294.10 Td ( strong track record of execution in 4G) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.50 294.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.50 294.10 Td (W) Tj ET Q q 0 0 0 rg BT 265.13 294.10 Td (e believe we are well positioned in the single-mode L) Tj ET Q q 0 0 0 rg BT 478.31 294.10 Td (TE market, with) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.57 294.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 282.10 Td (approximately 80 customers having already launched or in the development phase of products using Sequans L) Tj ET Q q 0 0 0 rg BT 529.34 282.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 270.10 Td (chipsets, and in particular we have become recognized as a market leader in L) Tj ET Q q 0 0 0 rg BT 396.26 270.10 Td (TE for IoT) Tj ET Q q 0 0 0 rg BT 439.40 270.10 Td ( chipsets. ) Tj ET Q q 0 0 0 rg BT 478.93 270.10 Td (W) Tj ET Q q 0 0 0 rg BT 487.57 270.10 Td (e were an early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 258.10 Td (provider of ) Tj ET Q q 0 0 0 rg BT 132.13 258.10 Td (W) Tj ET Q q 0 0 0 rg BT 141.16 258.10 Td (iMAX products and have been shipping our wireless broadband semiconductor solutions since 2005.) Tj ET Q q 0 0 0 rg BT 547.02 258.10 Td (W) Tj ET Q q 0 0 0 rg BT 555.66 258.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 246.10 Td (have released seven generations of 4G semiconductor solutions including four generations of L) Tj ET Q q 0 0 0 rg BT 472.68 246.10 Td (TE that have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 234.10 Td (deployed in a variety of devices including smartphones, USB dongles, tablets, mobile routers, broadband access CPEs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 222.10 Td (in-car telematics devices and industrial IoT) Tj ET Q q 0 0 0 rg BT 257.91 222.10 Td ( devices. Since we released our first L) Tj ET Q q 0 0 0 rg BT 411.65 222.10 Td (TE product in 2010, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 210.10 Td (accomplished the following milestones: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 192.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 192.10 Td (announced a collaboration in February 2016, with Skyworks for developing IoT) Tj ET Q q 0 0 0 rg BT 424.84 192.10 Td (-optimized RF front-end solutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 180.10 Td (for Sequans L) Tj ET Q q 0 0 0 rg BT 160.73 180.10 Td (TE for IoT) Tj ET Q q 0 0 0 rg BT 203.87 180.10 Td ( chipsets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 162.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 162.10 Td (introduced in February 2016, Sequans) Tj ET Q q 0 0 0 rg BT 260.61 162.10 Td ( fourth-generation L) Tj ET Q q 0 0 0 rg BT 340.77 162.10 Td (TE chip, Monarch, the world) Tj ET Q q 0 0 0 rg BT 459.63 162.10 Td (s first 3GPP) Tj ET Q q 0 0 0 rg BT 507.60 162.10 Td ( Release 13 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 150.10 Td (L) Tj ET Q q 0 0 0 rg BT 110.74 150.10 Td (TE Category M and narrowband IoT) Tj ET Q q 0 0 0 rg BT 257.46 150.10 Td ( capable chipsets, tar) Tj ET Q q 0 0 0 rg BT 340.57 150.10 Td (geting low data-use IoT) Tj ET Q q 0 0 0 rg BT 435.64 150.10 Td ( applications;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 132.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 132.10 Td (announced in March 2016, the certification of Sequans) Tj ET Q q 0 0 0 rg BT 327.51 132.10 Td ( Calliope L) Tj ET Q q 0 0 0 rg BT 371.59 132.10 Td (TE Cat 1 chipset with Japan) Tj ET Q q 0 0 0 rg BT 486.84 132.10 Td (s lar) Tj ET Q q 0 0 0 rg BT 503.60 132.10 Td (gest operator) Tj ET Q q 0 0 0 rg BT 555.12 132.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 120.10 Td (NTT) Tj ET Q q 0 0 0 rg BT 124.81 120.10 Td ( DoCoMo;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 102.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 102.10 Td (announced in May 2016, the certification of Sequans' Calliope L) Tj ET Q q 0 0 0 rg BT 363.03 102.10 Td (TE Cat 1 chipset at ) Tj ET Q q 0 0 0 rg BT 441.62 102.10 Td (A) Tj ET Q q 0 0 0 rg BT 447.74 102.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 467.18 102.10 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 84.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 84.10 Td (in October 2016, announced four customer design wins for Sequans' Monarch Cat M chip, including Gemalto, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 72.10 Td (LinkLabs, Nimbelink and Encore Networks;) Tj ET Q endstream endobj 73 0 obj <> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 722.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 722.10 Td (disclosed in January 2017, that ) Tj ET Q q 0 0 0 rg BT 231.46 722.10 Td (V) Tj ET Q q 0 0 0 rg BT 237.57 722.10 Td (erizon had certified Sequans' Monarch Cat M chip in December 2016, making it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 710.10 Td (the world's first carrier) Tj ET Q q 0 0 0 rg BT 196.28 710.10 Td (-certified Cat M chip;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 692.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 692.10 Td (announced in January 2017, that Geotab selected Sequans' Calliope L) Tj ET Q q 0 0 0 rg BT 383.02 692.10 Td (TE Cat 1 chipset for use in vehicle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 680.10 Td (telematics devices;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 662.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 662.10 Td (in February 2017, completed Europe's first Cat M data call with ) Tj ET Q q 0 0 0 rg BT 363.22 662.10 Td (T) Tj ET Q q 0 0 0 rg BT 368.63 662.10 Td (elefnica in Spain;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 644.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 644.10 Td (announced in February 2017, that Orion Labs selected the Monarch Cat M chip for their voice-enabled wearables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 632.10 Td (products and that Huawei had selected the Monarch Cat M chip for a family of IoT) Tj ET Q q 0 0 0 rg BT 437.76 632.10 Td ( modules;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 614.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 614.10 Td (in February 2017, certified the L) Tj ET Q q 0 0 0 rg BT 235.14 614.10 Td (TE Cat 1 chipset for ) Tj ET Q q 0 0 0 rg BT 318.55 614.10 Td (V) Tj ET Q q 0 0 0 rg BT 324.49 614.10 Td (oL) Tj ET Q q 0 0 0 rg BT 334.68 614.10 Td (TE on ) Tj ET Q q 0 0 0 rg BT 361.71 614.10 Td (T) Tj ET Q q 0 0 0 rg BT 366.90 614.10 Td (-Mobile) Tj ET Q q 0 0 0 rg BT 401.90 614.10 Td (s network;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 596.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 596.70 Td (in ) Tj ET Q q 0 0 0 rg BT 115.23 596.70 Td (April 2017, announced a collaboration with ) Tj ET Q q 0 0 0 rg BT 291.95 596.70 Td (W) Tj ET Q q 0 0 0 rg BT 300.98 596.70 Td (isol for L) Tj ET Q q 0 0 0 rg BT 337.28 596.70 Td (TE for IoT) Tj ET Q q 0 0 0 rg BT 380.42 596.70 Td ( modules;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 578.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 578.70 Td (announced in July 2017, an IoT) Tj ET Q q 0 0 0 rg BT 232.01 578.70 Td ( design win using our Monarch Cat M chip for Positioning Universal's GPS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 566.70 Td (T) Tj ET Q q 0 0 0 rg BT 111.31 566.70 Td (racker Devices;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 548.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 548.70 Td (in ) Tj ET Q q 0 0 0 rg BT 115.28 548.70 Td (August 2017, disclosed that ) Tj ET Q q 0 0 0 rg BT 228.33 548.70 Td (Askey Computer had selected our L) Tj ET Q q 0 0 0 rg BT 371.54 548.70 Td (TE-Advanced chipset to design broadband ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 536.70 Td (wireless access devices;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 518.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 518.70 Td (introduced in September 2017, our L) Tj ET Q q 0 0 0 rg BT 252.38 518.70 Td (TE tracker platform developed in collaboration with STMicroelectronics to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 506.70 Td (Connect and Locate Objects Everywhere \("CLOE"\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 489.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 489.30 Td (in September 2017, completed ) Tj ET Q q 0 0 0 rg BT 229.64 489.30 Td (A) Tj ET Q q 0 0 0 rg BT 235.75 489.30 Td (T&T) Tj ET Q q 0 0 0 rg BT 255.57 489.30 Td ( certification of our L) Tj ET Q q 0 0 0 rg BT 340.72 489.30 Td (TE for IoT) Tj ET Q q 0 0 0 rg BT 383.86 489.30 Td ( module;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 471.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 471.30 Td (announced IoT) Tj ET Q q 0 0 0 rg BT 165.62 471.30 Td ( design wins in September 2017: Sercomm's IoT) Tj ET Q q 0 0 0 rg BT 359.72 471.30 Td ( tracker) Tj ET Q q 0 0 0 rg BT 389.57 471.30 Td (, the Spartan GoCam L) Tj ET Q q 0 0 0 rg BT 481.14 471.30 Td (TE for IoT) Tj ET Q q 0 0 0 rg BT 524.27 471.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 459.30 Td (surveillance camera and Geotab) Tj ET Q q 0 0 0 rg BT 236.32 459.30 Td (s GO8 L) Tj ET Q q 0 0 0 rg BT 269.84 459.30 Td (TE telematics device;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 441.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 105.50 441.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 108.00 441.90 Td (in December 2017, completed ) Tj ET Q q 0 0 0 rg BT 230.46 441.90 Td (A) Tj ET Q q 0 0 0 rg BT 236.57 441.90 Td (T&T) Tj ET Q q 0 0 0 rg BT 256.39 441.90 Td ( validation of the Monarch L) Tj ET Q q 0 0 0 rg BT 370.71 441.90 Td (TE platform ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 423.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 423.90 Td (announced IoT) Tj ET Q q 0 0 0 rg BT 165.62 423.90 Td ( design wins in January 2018: Sercomm's L) Tj ET Q q 0 0 0 rg BT 338.99 423.90 Td (TE IoT) Tj ET Q q 0 0 0 rg BT 367.96 423.90 Td ( Button Device, ) Tj ET Q q 0 0 0 rg BT 432.95 423.90 Td (Asiatelco Cat M modules and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 411.90 Td (devices;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 393.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 393.90 Td (in January 2018, disclosed that we would collaborate with NTT) Tj ET Q q 0 0 0 rg BT 359.75 393.90 Td ( DOCOMO to accelerate adoption of Cat M ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 381.90 Td (technology in Japan and that our Monarch platform successfully delivers ) Tj ET Q q 0 0 0 rg BT 399.18 381.90 Td (V) Tj ET Q q 0 0 0 rg BT 405.11 381.90 Td (oL) Tj ET Q q 0 0 0 rg BT 415.30 381.90 Td (TE on an Cat M1 network;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 363.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 363.90 Td (in February 2018, announced that BOL) Tj ET Q q 0 0 0 rg BT 261.82 363.90 Td (T! of Indonesia had launched a new L) Tj ET Q q 0 0 0 rg BT 412.79 363.90 Td (TE CPE using our L) Tj ET Q q 0 0 0 rg BT 493.53 363.90 Td (TE-Advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 351.90 Td (chips;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 333.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 333.90 Td (announced IoT) Tj ET Q q 0 0 0 rg BT 165.62 333.90 Td ( design wins in February 2018: Remo ) Tj ET Q q 0 0 0 rg BT 318.48 333.90 Td (W) Tj ET Q q 0 0 0 rg BT 327.52 333.90 Td (ireless' IoT) Tj ET Q q 0 0 0 rg BT 371.63 333.90 Td ( tracker devices for customers worldwide using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 321.90 Td (the CLOE IoT) Tj ET Q q 0 0 0 rg BT 163.13 321.90 Td ( platform, the ) Tj ET Q q 0 0 0 rg BT 219.60 321.90 Td (W) Tj ET Q q 0 0 0 rg BT 228.24 321.90 Td (agz dog collar and Gemtek's new Cat M IoT) Tj ET Q q 0 0 0 rg BT 405.36 321.90 Td ( tracker;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 303.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 303.90 Td (in February 2018, announced two new IoT) Tj ET Q q 0 0 0 rg BT 276.16 303.90 Td ( products: the Monarch SiP) Tj ET Q q 0 0 0 rg BT 384.49 303.90 Td (, in collaboration with Skyworks, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 291.90 Td (Monarch N, our NB-IoT) Tj ET Q q 0 0 0 rg BT 203.68 291.90 Td ( only platform; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 274.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 274.50 Td (in March 2018, certified our L) Tj ET Q q 0 0 0 rg BT 226.21 274.50 Td (TE Cat 1 chipset with KDDI;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 257.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 257.10 Td (in ) Tj ET Q q 0 0 0 rg BT 115.23 257.10 Td (April 2018, announced Monarch L) Tj ET Q q 0 0 0 rg BT 253.44 257.10 Td (TE chip is validated for Cat M1 on SoftBank network;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 239.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 239.70 Td (disclosed in May 2018, that ) Tj ET Q q 0 0 0 rg BT 218.64 239.70 Td (V) Tj ET Q q 0 0 0 rg BT 224.75 239.70 Td (erizon certified Sequans Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 383.42 239.70 Td ( Monarch SiP;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 222.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 222.30 Td (partnered in July 2018, with NTT) Tj ET Q q 0 0 0 rg BT 239.74 222.30 Td ( DOCOMO to accelerate adoption of NB-IoT) Tj ET Q q 0 0 0 rg BT 421.73 222.30 Td ( technology in Japan;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 204.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 204.90 Td (announced in July 2018, the successful testing of Monarch chip on Orange network;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 187.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 187.50 Td (Sequans, Gemtek, and ) Tj ET Q q 0 0 0 rg BT 197.24 187.50 Td (T) Tj ET Q q 0 0 0 rg BT 202.65 187.50 Td (elrad delivered in September 2018 new L) Tj ET Q q 0 0 0 rg BT 367.23 187.50 Td (TE solutions for the 3.5 GHz CBRS spectrum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 170.10 Td (band;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 152.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 152.70 Td (introduced in September 2018, new L) Tj ET Q q 0 0 0 rg BT 255.66 152.70 Td (TE Cat 1 module for Sprint IoT) Tj ET Q q 0 0 0 rg BT 381.75 152.70 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 135.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 135.30 Td (announced in September 2018, the first Orion L) Tj ET Q q 0 0 0 rg BT 296.20 135.30 Td (TE-enabled wearable, Orion Sync;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 117.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 117.90 Td (introduced in January 2019, with GeoT) Tj ET Q q 0 0 0 rg BT 262.34 117.90 Td (raq a new line of L) Tj ET Q q 0 0 0 rg BT 337.22 117.90 Td (TE for IoT) Tj ET Q q 0 0 0 rg BT 380.35 117.90 Td ( cellular modules;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 100.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 100.50 Td (in January 2019, collaborated with Polymer Logistics and Sequans on Cat M smart IoT) Tj ET Q q 0 0 0 rg BT 454.15 100.50 Td ( tracker for pallet tracking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 83.10 Td (for use on USA) Tj ET Q q 0 0 0 rg BT 167.44 83.10 Td ( networks;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 65.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 65.70 Td (brought in January 2019, with ) Tj ET Q q 0 0 0 rg BT 227.71 65.70 Td (Asiatelco new Cat M vehicle trackers to market;) Tj ET Q endstream endobj 75 0 obj <> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 722.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 722.10 Td (announced in January 2019, ) Tj ET Q q 0 0 0 rg BT 219.64 722.10 Td (Abside Networks Selected Sequans) Tj ET Q q 0 0 0 rg BT 364.14 722.10 Td ( Cassiopeia technology for new customized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 704.70 Td (devices for L) Tj ET Q q 0 0 0 rg BT 157.34 704.70 Td (TE private networks;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 687.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 687.30 Td (announced in February 2019, Sequans worked with STMicroelectronics to deliver Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 495.79 687.30 Td ( connected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 669.90 Td (MCU solutions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 652.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 652.50 Td (announced in February 2019, Daatrics selected Monarch to power Neebo baby wearable;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 635.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 635.10 Td (introduced in February 2019, Monarch 2: the second generation of the world) Tj ET Q q 0 0 0 rg BT 414.86 635.10 Td (s most advanced L) Tj ET Q q 0 0 0 rg BT 488.64 635.10 Td (TE for IoT) Tj ET Q q 0 0 0 rg BT 531.78 635.10 Td ( chip ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 617.70 Td (platform;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 600.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 600.30 Td (announced in February 2019, new Cat M module for Orange) Tj ET Q q 0 0 0 rg BT 350.99 600.30 Td (s live booster program is powered by Sequans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 582.90 Td (Monarch ) Tj ET Q q 0 0 0 rg BT 143.92 582.90 Td (T) Tj ET Q q 0 0 0 rg BT 149.33 582.90 Td (echnology;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 565.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 565.50 Td (announced in February 2019, Monarch Cat M technology is certified for use on ) Tj ET Q q 0 0 0 rg BT 425.79 565.50 Td (T) Tj ET Q q 0 0 0 rg BT 431.20 565.50 Td (elstra;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 548.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 548.10 Td (partnered in March 2019, with Deutsche ) Tj ET Q q 0 0 0 rg BT 269.44 548.10 Td (T) Tj ET Q q 0 0 0 rg BT 274.85 548.10 Td (elekom on integrated SIM for IoT) Tj ET Q q 0 0 0 rg BT 410.09 548.10 Td (; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 530.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 530.70 Td (announced in March 2019, collaborating with Lockheed Martin on world-first L) Tj ET Q q 0 0 0 rg BT 425.33 530.70 Td (TE over satellite solution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 512.70 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 512.70 Td (Understanding of wireless system-level architecture and expertise in signal processing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.27 512.70 Td (W) Tj ET Q q 0 0 0 rg BT 452.90 512.70 Td (e have an end-to-end ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 500.70 Td (understanding of wireless system-level architectures and networks based on our team) Tj ET Q q 0 0 0 rg BT 428.88 500.70 Td (s experience in a broad range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 488.70 Td (wireless technologies including 2G, 3G, ) Tj ET Q q 0 0 0 rg BT 247.95 488.70 Td (W) Tj ET Q q 0 0 0 rg BT 256.98 488.70 Td (i-Fi, ) Tj ET Q q 0 0 0 rg BT 276.25 488.70 Td (W) Tj ET Q q 0 0 0 rg BT 285.29 488.70 Td (iMAX and L) Tj ET Q q 0 0 0 rg BT 336.03 488.70 Td (TE. ) Tj ET Q q 0 0 0 rg BT 353.07 488.70 Td (This enables us to serve as a trusted advisor to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 476.70 Td (wireless carriers, OEMs and infrastructure vendors to optimize the performance of their 4G devices and networks. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 464.70 Td (example, our solutions of) Tj ET Q q 0 0 0 rg BT 186.57 464.70 Td (fer improved standby-mode battery life in 4G devices as a result of our in-depth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 452.70 Td (understanding of the interactions between the device and the network and of our implementation of advanced power) Tj ET Q q 0 0 0 rg BT 549.74 452.70 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 440.70 Td (saving techniques in our solutions. For instance, we have implemented a proprietary technique called Dynamic Power ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 428.70 Td (Management in our Monarch chip that assures the longest possible battery life for IoT) Tj ET Q q 0 0 0 rg BT 428.99 428.70 Td ( devices by dynamically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 416.70 Td (adapting the chip) Tj ET Q q 0 0 0 rg BT 156.75 416.70 Td (s deep-sleep implementation to the traf) Tj ET Q q 0 0 0 rg BT 312.35 416.70 Td (fic patterns of various IoT) Tj ET Q q 0 0 0 rg BT 416.57 416.70 Td ( use cases. \(UPDA) Tj ET Q q 0 0 0 rg BT 490.45 416.70 Td (TE\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 398.70 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 398.70 Td (High performance solutions for 4G applications) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.18 398.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.18 398.70 Td (Our solutions of) Tj ET Q q 0 0 0 rg BT 353.00 398.70 Td (fer high performance for use in a wide array of 4G-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 386.70 Td (enabled devices. ) Tj ET Q q 0 0 0 rg BT 153.50 386.70 Td (The key performance characteristics of our solutions include: \(UPDA) Tj ET Q q 0 0 0 rg BT 430.63 386.70 Td (TE\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 368.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 368.70 Td (high throughput with peak downlink data transfer rates of 150 Mbps in our L) Tj ET Q q 0 0 0 rg BT 412.63 368.70 Td (TE solutions and up to 300 Mbps in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 356.70 Td (our L) Tj ET Q q 0 0 0 rg BT 126.57 356.70 Td (TE-Advanced solution;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 338.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 338.70 Td (high power ef) Tj ET Q q 0 0 0 rg BT 160.91 338.70 Td (ficiency in both active and idle modes using our patented idle mode optimization algorithms that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 326.70 Td (improve standby time and help maximize device battery life;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 308.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 308.70 Td (support for an advanced technology called hybrid automatic repeat request, or hybrid ) Tj ET Q q 0 0 0 rg BT 447.93 308.70 Td (ARQ, which significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 296.70 Td (enhances RF link robustness and throughput, improving mobility and range;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 278.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 278.70 Td (inclusion of L) Tj ET Q q 0 0 0 rg BT 160.74 278.70 Td (TE broadcast support in our L) Tj ET Q q 0 0 0 rg BT 280.07 278.70 Td (TE solutions using a feature called evolved multimedia broadcast ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 266.70 Td (multicast service, or eMBMS, which enables carriers to deliver new multimedia services in an economical and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 254.70 Td (spectrally ef) Tj ET Q q 0 0 0 rg BT 154.51 254.70 Td (ficient manner;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 236.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 236.70 Td (development and integration of a unique L) Tj ET Q q 0 0 0 rg BT 275.13 236.70 Td (TE interference mitigation technology) Tj ET Q q 0 0 0 rg BT 427.48 236.70 Td (, Sequans ) Tj ET Q q 0 0 0 rg BT 467.76 236.70 Td (Active Interference ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 224.70 Td (Rejection \(Sequans ) Tj ET Q q 0 0 0 rg BT 184.98 224.70 Td (AIR) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 202.20 229.23 Td (TM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.95 224.70 Td (\) into our L) Tj ET Q q 0 0 0 rg BT 256.86 224.70 Td (TE solutions for improved cell edge performance, enhanced network ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 212.70 Td (capacity and enhanced user experience;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 194.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 194.70 Td (support for L) Tj ET Q q 0 0 0 rg BT 157.40 194.70 Td (TE-Advanced features, including carrier aggregation, a capability of creating a single virtual wide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 182.70 Td (channel from two dif) Tj ET Q q 0 0 0 rg BT 189.51 182.70 Td (ferent narrower channels, resulting in higher throughput; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 164.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 164.70 Td (integration of complete on-chip support for ) Tj ET Q q 0 0 0 rg BT 280.88 164.70 Td (V) Tj ET Q q 0 0 0 rg BT 286.81 164.70 Td (oice over L) Tj ET Q q 0 0 0 rg BT 331.42 164.70 Td (TE \(V) Tj ET Q q 0 0 0 rg BT 355.40 164.70 Td (oL) Tj ET Q q 0 0 0 rg BT 365.59 164.70 Td (TE\), including support for high-definition voice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 152.70 Td (using wideband codecs; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 134.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 134.70 Td (support for L) Tj ET Q q 0 0 0 rg BT 157.40 134.70 Td (TE-Advanced technology band 48 for CBRS solutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 116.70 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 116.70 Td (Highly optimized 4G solutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.84 116.70 Td (W) Tj ET Q q 0 0 0 rg BT 223.48 116.70 Td (e have successfully produced and ramped into commercial production seven ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 104.70 Td (generations of 4G system-on-chip, or SoC, semiconductor solutions. ) Tj ET Q q 0 0 0 rg BT 361.27 104.70 Td (This experience has resulted in what we believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 92.70 Td (to be one of the industry) Tj ET Q q 0 0 0 rg BT 185.36 92.70 Td (s most ef) Tj ET Q q 0 0 0 rg BT 221.29 92.70 Td (ficient implementations, providing high performance at low cost and low power ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 80.70 Td (consumption. Some of our solutions have integrated the baseband processor and the RF transceiver into a single die, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 68.70 Td (resulting in extremely high integration, small footprint and low cost. ) Tj ET Q q 0 0 0 rg BT 360.98 68.70 Td (W) Tj ET Q q 0 0 0 rg BT 370.02 68.70 Td (ith the introduction of our Monarch Cat M/NB-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 56.70 Td (IoT) Tj ET Q q 0 0 0 rg BT 99.36 56.70 Td ( chip in 2016, we delivered a very high level of integration, providing baseband, RF transceiver) Tj ET Q q 0 0 0 rg BT 481.07 56.70 Td (, power ) Tj ET Q endstream endobj 77 0 obj <> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 722.10 Td (management and memory all in a single chip of less than 50mm2. ) Tj ET Q q 0 0 0 rg BT 352.82 722.10 Td (And in February 2017, we announced our Monarch ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 710.10 Td (SX Cat M system-on-chip, with even more integration, including an application processor) Tj ET Q q 0 0 0 rg BT 444.90 710.10 Td (, graphics processor and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 698.10 Td (display controller) Tj ET Q q 0 0 0 rg BT 154.96 698.10 Td (, sensor hub and media processing engine, along with our Monarch Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 485.27 698.10 Td ( modem, all in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 686.10 Td (single chip, further reducing the design ef) Tj ET Q q 0 0 0 rg BT 251.81 686.10 Td (fort for makers of IoT) Tj ET Q q 0 0 0 rg BT 339.37 686.10 Td ( devices. In February 2018, we announced our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 674.10 Td (Monarch SiP) Tj ET Q q 0 0 0 rg BT 136.49 674.10 Td (, an all-in-one solution that enables ultra-compact IoT) Tj ET Q q 0 0 0 rg BT 351.79 674.10 Td ( devices, and Monarch N, our chipset optimized for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 662.10 Td (Cat NB1/NB2 single-mode. In February 2019, we announced our second generation Category M chipset, the Monarch ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 650.10 Td (2. Furthermore, our comprehensive software solutions help our customers get to market quickly with an optimized, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 638.10 Td (mature and field proven solution. Our highly optimized solutions of) Tj ET Q q 0 0 0 rg BT 355.99 638.10 Td (fer key advantages for both ourselves and our end ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 626.10 Td (customers: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 608.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 608.10 Td (Lower overall system cost for our end customers, coupled with higher functionality and smaller form factor) Tj ET Q q 0 0 0 rg BT 535.43 608.10 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 596.10 Td (ability to integrate digital and RF functions into a single device also allows us to maintain higher product mar) Tj ET Q q 0 0 0 rg BT 543.61 596.10 Td (gins ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 584.10 Td (as we believe device manufacturers are willing to pay a premium for our integrated 4G solutions, while also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 572.10 Td (enabling us to reduce our manufacturing costs for wafer fabrication, assembly and testing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 554.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 554.10 Td (The implementation of advanced known good die and wafer) Tj ET Q q 0 0 0 rg BT 355.26 554.10 Td (-level chip-scale packaging \(WLCSP\) technology) Tj ET Q q 0 0 0 rg BT 553.43 554.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 542.10 Td (which reduces chip cost and design footprint, enables the creation of very small and cost-ef) Tj ET Q q 0 0 0 rg BT 470.53 542.10 Td (fective L) Tj ET Q q 0 0 0 rg BT 505.42 542.10 Td (TE modules) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 524.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 524.10 Td (Simplified product design for device manufacturers, as our solutions incorporate all key components required for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 512.10 Td (a 4G device in a single die or package. For instance, our Monarch chip incorporates baseband processor) Tj ET Q q 0 0 0 rg BT 520.56 512.10 Td (, RF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 500.10 Td (transceiver) Tj ET Q q 0 0 0 rg BT 149.01 500.10 Td (, power management and memory in a single 6.5 x 8 mm package. ) Tj ET Q q 0 0 0 rg BT 417.09 500.10 Td (W) Tj ET Q q 0 0 0 rg BT 425.73 500.10 Td (e believe these advantages enable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 488.10 Td (our products to be incorporated into leading edge devices that of) Tj ET Q q 0 0 0 rg BT 363.06 488.10 Td (fer a high-quality user experience, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 476.10 Td (accelerate our end customers) Tj ET Q q 0 0 0 rg BT 223.91 476.10 Td ( time-to-market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 458.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 458.10 Td (Proprietary embedded protocol software that has been exhaustively tested with major base station vendors) Tj ET Q q 0 0 0 rg BT 532.74 458.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 446.10 Td (equipment to ensure reliable performance in the field. ) Tj ET Q q 0 0 0 rg BT 322.78 446.10 Td (W) Tj ET Q q 0 0 0 rg BT 331.42 446.10 Td (e also of) Tj ET Q q 0 0 0 rg BT 365.12 446.10 Td (fer host software that facilitates rapid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 434.10 Td (development of high performance device drivers, connection managers and other key application-layer software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 422.10 Td (functionality) Tj ET Q q 0 0 0 rg BT 156.00 422.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 404.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 404.10 Td (Provide lowest power consumption with 1A) Tj ET Q q 0 0 0 rg BT 287.13 404.10 Td ( PSM and eco-Paging for optimized Extended Discontinuous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 392.10 Td (Reception \(eDRX\), a feature that allows IoT) Tj ET Q q 0 0 0 rg BT 283.36 392.10 Td ( devices to remain inactive for longer periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.55 374.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 374.10 Td (Optimized network selection Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 283.11 374.10 Td ( with the proprietary feature IoT) Tj ET Q q 0 0 0 rg BT 411.30 374.10 Td (-Select ) Tj ET Q q 0 0 0 rg BT 451.18 374.10 Td (V) Tj ET Q q 0 0 0 rg BT 457.12 374.10 Td (oL) Tj ET Q q 0 0 0 rg BT 467.31 374.10 Td (TE support) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.10 356.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 356.10 Td (Long-term relationships with wireless carriers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.12 356.10 Td (W) Tj ET Q q 0 0 0 rg BT 288.76 356.10 Td (e have developed close relationships with wireless carriers around ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 344.10 Td (the world, helping them to test their new networks and specific features of those networks. ) Tj ET Q q 0 0 0 rg BT 452.04 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 460.68 344.10 Td (e believe these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 332.10 Td (relationships are critical to being able to certify our products quickly and to help our customers to certify and deploy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 320.10 Td (their products ef) Tj ET Q q 0 0 0 rg BT 150.45 320.10 Td (ficiently) Tj ET Q q 0 0 0 rg BT 183.12 320.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 294.10 Td ( Strategy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 273.10 Td (Our goal is to be a leading provider of next-generation single-mode wireless semiconductors by providing best-in-class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.10 Td (solutions that enable mass-market adoption of 4G technologies worldwide. Key elements of our strategy include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 243.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 243.10 Td (Identifying and optimally serving L) Tj ET Q q 0 0 0 rg BT 230.48 243.10 Td (TE-only market segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.03 243.10 Td (.) Tj ET Q q 0 0 0 rg BT 340.48 243.10 Td (As the L) Tj ET Q q 0 0 0 rg BT 374.00 243.10 Td (TE market grows and matures, and as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 231.10 Td (operators aggressively build out their L) Tj ET Q q 0 0 0 rg BT 241.64 231.10 Td (TE networks and refarm their 2G and 3G spectrum to support demand for data ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 219.10 Td (capacity on L) Tj ET Q q 0 0 0 rg BT 138.60 219.10 Td (TE, we expect to see significant growth in the demand for single-mode L) Tj ET Q q 0 0 0 rg BT 430.10 219.10 Td (TE, or L) Tj ET Q q 0 0 0 rg BT 463.33 219.10 Td (TE-only) Tj ET Q q 0 0 0 rg BT 496.01 219.10 Td (, devices.In our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 207.10 Td (estimation, this demand will come from three areas:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 189.10 Td (1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 189.10 Td (Internet of ) Tj ET Q q 0 0 0 rg BT 147.74 189.10 Td (Things and M2M devices: Increasingly) Tj ET Q q 0 0 0 rg BT 304.28 189.10 Td (, established mobile network operators are looking beyond the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 177.10 Td (saturated smartphone marketplace to add the devices and users needed to maintain profitable growth. One area of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 165.10 Td (particular interest to these operators is the opportunity to add connected things) Tj ET Q q 0 0 0 rg BT 422.94 165.10 Td ( \(rather than people\) to their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 153.10 Td (networks. ) Tj ET Q q 0 0 0 rg BT 144.98 153.10 Td (The traditional machine-to-machine market is considered a subset of this lar) Tj ET Q q 0 0 0 rg BT 449.14 153.10 Td (ger connected objects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 141.10 Td (space, often called The Internet of ) Tj ET Q q 0 0 0 rg BT 246.85 141.10 Td (Things \(or IoT\). ) Tj ET Q q 0 0 0 rg BT 318.32 141.10 Td (While a lar) Tj ET Q q 0 0 0 rg BT 362.56 141.10 Td (ge number of IoT) Tj ET Q q 0 0 0 rg BT 432.63 141.10 Td ( connections are expected to use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 129.10 Td (W) Tj ET Q q 0 0 0 rg BT 112.54 129.10 Td (iFi, Bluetooth or some other local-area or personal-area networking technology) Tj ET Q q 0 0 0 rg BT 429.01 129.10 Td (, there are many applications for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 117.10 Td (wide-area connectivity which can be addressed by cellular networks. ) Tj ET Q q 0 0 0 rg BT 380.61 117.10 Td (Applications for cellular connectivity include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 105.10 Td (smart utility meters, asset tracking, industrial automation and monitoring, retail, smart cities, consumer wearables, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 93.10 Td (agriculture and environmental monitoring, mobile/remote healthcare, security and more. Given the rapid move to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 81.10 Td (L) Tj ET Q q 0 0 0 rg BT 108.69 81.10 Td (TE by network operators, the spectral ef) Tj ET Q q 0 0 0 rg BT 269.28 81.10 Td (ficiency and low latency of L) Tj ET Q q 0 0 0 rg BT 385.81 81.10 Td (TE networks, and the longer life cycles of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 69.10 Td (some of these applications, the use of L) Tj ET Q q 0 0 0 rg BT 260.87 69.10 Td (TE in many of these applications is expected to increase, despite the fact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 57.10 Td (many of them do not require high throughput. ) Tj ET Q q 0 0 0 rg BT 291.25 57.10 Td (According to data from ) Tj ET Q q 0 0 0 rg BT 386.78 57.10 Td (ABI Research, over 1.3 billion L) Tj ET Q q 0 0 0 rg BT 517.22 57.10 Td (TE-based ) Tj ET Q endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 722.10 Td (modules and wearable devices will ship from 2017 to 2022. ) Tj ET Q q 0 0 0 rg BT 344.66 722.10 Td (This trend toward the use of L) Tj ET Q q 0 0 0 rg BT 464.82 722.10 Td (TE in the IoT) Tj ET Q q 0 0 0 rg BT 518.79 722.10 Td ( market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 710.10 Td (began with the arrival of cost- and power) Tj ET Q q 0 0 0 rg BT 267.96 710.10 Td (-optimized Category 1 L) Tj ET Q q 0 0 0 rg BT 365.63 710.10 Td (TE solutions in 2015, and is expected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 698.10 Td (accelerate with the arrival of machine type communications \(MTC\)-optimized 3GPP) Tj ET Q q 0 0 0 rg BT 442.19 698.10 Td ( Release 13/14/15 L) Tj ET Q q 0 0 0 rg BT 521.53 698.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 686.10 Td (solutions, which define Cat M and NB-IoT) Tj ET Q q 0 0 0 rg BT 275.24 686.10 Td ( user equipment categories. ) Tj ET Q q 0 0 0 rg BT 386.59 686.10 Td (Among other things, these new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 674.10 Td (specifications simplify the L) Tj ET Q q 0 0 0 rg BT 216.72 674.10 Td (TE requirements, reducing cost and power even further) Tj ET Q q 0 0 0 rg BT 437.35 674.10 Td (, such that these Release ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 662.10 Td (13/14/15 implementations are expected to rival 2G in terms of cost and power) Tj ET Q q 0 0 0 rg BT 415.09 662.10 Td (. Our StreamliteL) Tj ET Q q 0 0 0 rg BT 484.43 662.10 Td (TE family is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 650.10 Td (tar) Tj ET Q q 0 0 0 rg BT 113.87 650.10 Td (geted at the IoT) Tj ET Q q 0 0 0 rg BT 176.71 650.10 Td ( market, and our world-first Calliope Category 1 L) Tj ET Q q 0 0 0 rg BT 378.24 650.10 Td (TE chipset platform, announced in January ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 638.10 Td (2015, is certified and shipping in commercial products. Monarch, the world) Tj ET Q q 0 0 0 rg BT 408.71 638.10 Td (s first Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 493.24 638.10 Td ( chip, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 626.10 Td (announced in February 2016, and is now certified and/or shipping in devices for ) Tj ET Q q 0 0 0 rg BT 426.57 626.10 Td (V) Tj ET Q q 0 0 0 rg BT 432.68 626.10 Td (erizon, ) Tj ET Q q 0 0 0 rg BT 462.12 626.10 Td (A) Tj ET Q q 0 0 0 rg BT 468.23 626.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 487.48 626.10 Td (, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 614.10 Td (carriers in Japan and Europe. More carrier approvals are anticipated in 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 596.10 Td (2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 596.10 Td (Broadband devices: Mobile routers, also called mobile hotspots, provide convenient, on-the-go Internet access via ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 112.54 584.10 Td (iFi for users in homes, of) Tj ET Q q 0 0 0 rg BT 212.90 584.10 Td (fices, hotel rooms, vehicles and outdoor locations. Fixed-location \(non-mobile\) routers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 572.10 Td (provide broadband Internet access for homes and businesses. Mobile routers are popular with customers of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 560.10 Td (traditional mobile operators, and because of the favorable economics of L) Tj ET Q q 0 0 0 rg BT 397.75 560.10 Td (TE networks compared to 2G and 3G ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 548.10 Td (networks, and the potential for heavy data consumption by a mobile router user) Tj ET Q q 0 0 0 rg BT 420.51 548.10 Td (, L) Tj ET Q q 0 0 0 rg BT 430.70 548.10 Td (TE-only versions of this device ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 536.10 Td (type may become more common. Fixed, or home, routers \(also sometimes generically called broadband wireless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 524.10 Td (CPE, or customer premise equipment\) are being deployed as a last-mile) Tj ET Q q 0 0 0 rg BT 396.28 524.10 Td ( or wireless local loop solution by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 512.10 Td (emer) Tj ET Q q 0 0 0 rg BT 123.30 512.10 Td (ging operators to provide basic broadband access where it may be prohibitively expensive to deploy wireline ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 500.10 Td (broadband infrastructure using fiber) Tj ET Q q 0 0 0 rg BT 247.22 500.10 Td (, cable or DSL. Single mode L) Tj ET Q q 0 0 0 rg BT 368.50 500.10 Td (TE-only designs are a logical choice for these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 488.10 Td (home routers for cost and performance reasons, and because the devices are not mobile and therefore do not need ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 476.10 Td (to fall back) Tj ET Q q 0 0 0 rg BT 154.40 476.10 Td ( to a 2G or 3G connection. ) Tj ET Q q 0 0 0 rg BT 262.71 476.10 Td (ABI Research projects that, together) Tj ET Q q 0 0 0 rg BT 408.09 476.10 Td (, shipment of L) Tj ET Q q 0 0 0 rg BT 468.28 476.10 Td (TE-only IoT) Tj ET Q q 0 0 0 rg BT 518.36 476.10 Td ( and fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 464.10 Td (wireless broadband devices will exceed 1.1 billion units from 2017 to 2022. Solutions from both our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 452.10 Td (StreamrichL) Tj ET Q q 0 0 0 rg BT 152.56 452.10 Td (TE family \(Cassiopeia L) Tj ET Q q 0 0 0 rg BT 250.23 452.10 Td (TE-Advanced platform, for instance\) and our StreamliteL) Tj ET Q q 0 0 0 rg BT 480.06 452.10 Td (TE family ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 440.10 Td (\(Monarch and Colibri L) Tj ET Q q 0 0 0 rg BT 198.39 440.10 Td (TE chipset platform\) can ideally address these device types.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 422.10 Td (3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 422.10 Td (V) Tj ET Q q 0 0 0 rg BT 109.61 422.10 Td (ertical applications, including public safety: ) Tj ET Q q 0 0 0 rg BT 287.16 422.10 Td (The public safety and emer) Tj ET Q q 0 0 0 rg BT 395.82 422.10 Td (gency responders equipment market is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 410.10 Td (under) Tj ET Q q 0 0 0 rg BT 126.09 410.10 Td (going a technology transition that favors the use of L) Tj ET Q q 0 0 0 rg BT 337.06 410.10 Td (TE in terminals and handhelds. ) Tj ET Q q 0 0 0 rg BT 464.08 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 472.71 410.10 Td (e have several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 398.10 Td (products in both our StreamrichL) Tj ET Q q 0 0 0 rg BT 235.89 398.10 Td (TE family \(Cassiopeia L) Tj ET Q q 0 0 0 rg BT 333.55 398.10 Td (TE-Advanced platform, for instance\) and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 386.10 Td (StreamliteL) Tj ET Q q 0 0 0 rg BT 149.79 386.10 Td (TE family \(Colibri L) Tj ET Q q 0 0 0 rg BT 232.46 386.10 Td (TE chipset platform\) that can ideally address these device types. L) Tj ET Q q 0 0 0 rg BT 499.78 386.10 Td (TE is also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 374.10 Td (being adopted for use in delivering ground-to-aircraft broadband Internet connectivity for commercial aircraft, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 362.10 Td (in other vertical markets in aviation and military applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 344.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 344.10 Td (Accelerating our) Tj ET Q q 0 0 0 rg BT 153.71 344.10 Td (, and our customers, time to market and reducing our customers) Tj ET Q q 0 0 0 rg BT 424.11 344.10 Td ( development costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.26 344.10 Td ( In 2013, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 332.10 Td (introduced the EZLinkL) Tj ET Q q 0 0 0 rg BT 181.37 332.10 Td (TE) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 193.59 336.63 Td (TM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.34 332.10 Td ( family of L) Tj ET Q q 0 0 0 rg BT 250.46 332.10 Td (TE-only modules. By packaging our L) Tj ET Q q 0 0 0 rg BT 403.96 332.10 Td (TE semiconductor solutions in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 320.10 Td (complete, turnkey module form factor and certifying them with key wireless carriers, we expect to catalyze the market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 308.10 Td (for L) Tj ET Q q 0 0 0 rg BT 104.45 308.10 Td (TE-only devices, speed time to market for customer wishing to incorporate L) Tj ET Q q 0 0 0 rg BT 412.33 308.10 Td (TE connectivity in their devices, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 296.10 Td (reduce the cost and complexity for our customers. ) Tj ET Q q 0 0 0 rg BT 289.48 296.10 Td (And by pre-integrating and validating third-party ) Tj ET Q q 0 0 0 rg BT 488.14 296.10 Td (W) Tj ET Q q 0 0 0 rg BT 497.18 296.10 Td (iFi chipset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 284.10 Td (designs, we are able to help our mobile router customers get to market faster) Tj ET Q q 0 0 0 rg BT 390.56 284.10 Td (. In addition, our highly integrated, single-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 272.10 Td (chip Monarch Cat M solution minimizes the design ef) Tj ET Q q 0 0 0 rg BT 300.99 272.10 Td (fort for IoT) Tj ET Q q 0 0 0 rg BT 346.35 272.10 Td ( device makers. In February 2017, we announced our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 260.10 Td (Monarch SX Cat M system-on-chip, with even more integration, including an application processor) Tj ET Q q 0 0 0 rg BT 483.50 260.10 Td (, graphics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 248.10 Td (processor and display controller) Tj ET Q q 0 0 0 rg BT 212.72 248.10 Td (, sensor hub and media processing engine, along with our Monarch Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 543.02 248.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 236.10 Td (modem, all in a single chip, further reducing the design ef) Tj ET Q q 0 0 0 rg BT 316.52 236.10 Td (fort for makers of IoT) Tj ET Q q 0 0 0 rg BT 404.08 236.10 Td ( devices and modules. ) Tj ET Q q 0 0 0 rg BT 494.34 236.10 Td (And in February ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 224.10 Td (2018, we announced Monarch SiP) Tj ET Q q 0 0 0 rg BT 221.47 224.10 Td (, a highly integrated system-in-package that combines the Monarch with a front-end ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 212.10 Td (radio module from Skyworks to create an all-in-one design that simplifies the design process, shortens development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 200.10 Td (time, is pre-certified by operators that have certified the Monarch and is optimized for space-constrained IoT) Tj ET Q q 0 0 0 rg BT 520.31 200.10 Td ( products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 188.10 Td (such as sensors, trackers and wearables, where the size is extremely important.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 170.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 170.10 Td (Leveraging our multiple generations of 4G chip design experience to become a leader in advanced L) Tj ET Q q 0 0 0 rg BT 497.93 170.10 Td (TE technology ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 158.10 Td (and cost ef) Tj ET Q q 0 0 0 rg BT 129.36 158.10 Td (ficiency) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 161.56 158.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.06 158.10 Td () Tj ET Q q 0 0 0 rg BT 166.38 158.10 Td (W) Tj ET Q q 0 0 0 rg BT 175.02 158.10 Td (e have more than ten years and seven generations of 4G chip design experience, resulting in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 146.10 Td (highly optimized and cost-ef) Tj ET Q q 0 0 0 rg BT 199.61 146.10 Td (ficient chip implementations and deep technical expertise, allowing us to be among the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 134.10 Td (first in the industry to deliver new capabilities to market, as well as to enable extremely cost-competitive solutions. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 122.10 Td (example, in February 2013, we announced Cassiopeia, a third generation L) Tj ET Q q 0 0 0 rg BT 384.37 122.10 Td (TE chipset platform with support for L) Tj ET Q q 0 0 0 rg BT 538.97 122.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 110.10 Td (Advanced features, including carrier aggregation support for up to 40MHz aggregated bandwidth and 300 Mbps ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 98.10 Td (Category 6 downlink performance, the only such capability in the industry at that time. In May 2013, we introduced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 86.10 Td (our EZLinkL) Tj ET Q q 0 0 0 rg BT 137.22 86.10 Td (TE) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 149.44 90.63 Td (TM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 86.10 Td ( family of L) Tj ET Q q 0 0 0 rg BT 206.31 86.10 Td (TE-only modules, aimed at speeding time to market for our customers. ) Tj ET Q q 0 0 0 rg BT 491.89 86.10 Td (The cost and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 74.10 Td (power ef) Tj ET Q q 0 0 0 rg BT 120.18 74.10 Td (ficiency achieved from our multiple generations of 4G modem design has enabled us to deliver our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 62.10 Td (StreamliteL) Tj ET Q q 0 0 0 rg BT 131.39 62.10 Td (TE family of products at attractive price points, enabling L) Tj ET Q q 0 0 0 rg BT 365.95 62.10 Td (TE connectivity to be embedded in a wide range ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 50.10 Td (of cost-sensitive IoT) Tj ET Q q 0 0 0 rg BT 167.12 50.10 Td ( applications in both consumer and machine-to-machine applications. ) Tj ET Q q 0 0 0 rg BT 447.14 50.10 Td (The most recent members of ) Tj ET Q endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 722.10 Td (our StreamliteL) Tj ET Q q 0 0 0 rg BT 147.22 722.10 Td (TE family are our fourth generation L) Tj ET Q q 0 0 0 rg BT 297.91 722.10 Td (TE chip, Monarch, an Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 447.41 722.10 Td ( single-chip, announced in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 710.10 Td (February 2016. ) Tj ET Q q 0 0 0 rg BT 150.65 710.10 Td (A) Tj ET Q q 0 0 0 rg BT 157.32 710.10 Td ( year later) Tj ET Q q 0 0 0 rg BT 196.89 710.10 Td (, we announced Monarch SX, a highly-integrated SoC that integrates an application ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 698.10 Td (processor) Tj ET Q q 0 0 0 rg BT 123.02 698.10 Td (, media processor) Tj ET Q q 0 0 0 rg BT 192.87 698.10 Td (, sensor hub and display controller alongside the Monarch Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 486.80 698.10 Td ( modem. ) Tj ET Q q 0 0 0 rg BT 526.24 698.10 Td (And in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 686.10 Td (February 2018, we announced Monarch N, a Release 14/15 NB-IoT) Tj ET Q q 0 0 0 rg BT 356.78 686.10 Td ( platform designed and optimized for pure NB-IoT) Tj ET Q q 0 0 0 rg BT 559.60 686.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 674.10 Td (operation. Monarch N is highly integrated and includes all primary functions in a small chip scale package \(CSP\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 662.10 Td (enabling modules smaller than 10 x 10 mm.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 644.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 644.10 Td (Partnering with other leading technology companies to complement our technology of) Tj ET Q q 0 0 0 rg BT 439.37 644.10 Td (ferings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.26 644.10 Td (. ) Tj ET Q q 0 0 0 rg BT 475.58 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 484.22 644.10 Td (e regularly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 632.10 Td (collaborate with ecosystem partners who provide complementary technology or strengthen our capabilities to address ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 620.10 Td (customer needs and competitive pressure. For instance, we have worked closely with Skyworks Solutions to ensure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 608.10 Td (the availability of RF front-end modules that are optimized for use with our L) Tj ET Q q 0 0 0 rg BT 394.94 608.10 Td (TE chipsets to simplify the RF design ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 596.10 Td (task for our customers and in March 2018 announced the Monarch SiP) Tj ET Q q 0 0 0 rg BT 367.72 596.10 Td ( combining the Skyworks RF front-end module ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 584.10 Td (with our Monarch chipset. ) Tj ET Q q 0 0 0 rg BT 195.45 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 204.09 584.10 Td (e have collaborated with STMicroelectronics to develop IoT) Tj ET Q q 0 0 0 rg BT 445.21 584.10 Td ( design kits that help ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 572.10 Td (customers easily integrate our Monarch Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 305.42 572.10 Td ( platform with a range of STMicroelectronics' microcontrollers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 93.74 560.10 Td (e have also integrated STMicroelectronics' GNSS chip with the Monarch platforms to create CLOE, Connecting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 548.10 Td (Locating Objects Everywhere, an integrated solution for all kinds of trackers. ) Tj ET Q q 0 0 0 rg BT 398.89 548.10 Td (And we have partnered with ) Tj ET Q q 0 0 0 rg BT 514.50 548.10 Td (TCL) Tj ET Q q 0 0 0 rg BT 533.02 548.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 536.10 Td (jointly develop next generation 5G wireless technologies in order to accelerate their development. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 510.10 Td ( Solutions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 493.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 493.10 Td (e have developed a portfolio of 4G semiconductor solutions to address a variety of applications and market segments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 481.10 Td (e of) Tj ET Q q 0 0 0 rg BT 73.23 481.10 Td (fer baseband solutions used to encode and decode data based on 4G protocols that serve as the core wireless processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (platform for a 4G device; RF transceivers used to transmit and receive wireless transmissions; and highly integrated SoC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (solutions that combine these and other functions into a single die or package. Some of our SoC solutions integrate the baseband ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (and RF transceiver functions, in some cases with an applications processor and memory) Tj ET Q q 0 0 0 rg BT 400.71 445.10 Td (. ) Tj ET Q q 0 0 0 rg BT 405.53 445.10 Td (This advanced integration reduces the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (size, cost, design complexity and power consumption of the 4G solution.In 2013, we introduced a family of L) Tj ET Q q 0 0 0 rg BT 490.16 433.10 Td (TE modules that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (vastly simplify the task of embedding L) Tj ET Q q 0 0 0 rg BT 208.00 421.10 Td (TE connectivity in many computing, consumer and machine-to-machine devices.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 400.10 Td (All of our baseband, SoC products and modules are provided with comprehensive software, including relevant source ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (code and tools, to enable manufacturers to easily integrate our solutions into their devices in a wide variety of environments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (including ) Tj ET Q q 0 0 0 rg BT 89.22 376.10 Td (Apple MAC OSX, Microsoft ) Tj ET Q q 0 0 0 rg BT 208.21 376.10 Td (W) Tj ET Q q 0 0 0 rg BT 217.24 376.10 Td (indows, Chrome OS and embedded operating systems such as ) Tj ET Q q 0 0 0 rg BT 467.21 376.10 Td (Android and Linux. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (addition, we provide our customers with design support, in the form of reference designs that specify recommended methods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (for interconnecting our chips to surrounding devices, such as host processors, memory and RF front-end components as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (tools to integrate with products from major automatic test equipment vendors. Further) Tj ET Q q 0 0 0 rg BT 392.91 340.10 Td (, we provide our customers with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (warranty) Tj ET Q q 0 0 0 rg BT 84.39 328.10 Td (, for a period of one to two years, that our solutions are free from defects in materials and workmanship and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (operate in material conformance with the provided specifications, entitling the customer to have the defective product repaired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (or replaced at our expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 283.10 Td (Many of today) Tj ET Q q 0 0 0 rg BT 135.16 283.10 Td (s L) Tj ET Q q 0 0 0 rg BT 146.74 283.10 Td (TE-enabled devices, including home routers, tablets, laptops and mobile hotspots, tend to require the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (highest performance and richest set of features in their L) Tj ET Q q 0 0 0 rg BT 274.88 271.10 Td (TE solution, driven by consumer demand for these attributes and by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.10 Td (highly competitive device market. For these performance segments, we typically propose our StreamrichL) Tj ET Q q 0 0 0 rg BT 474.00 259.10 Td (TE family of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.10 Td (products, as these solutions deliver the required higher performance and comprehensive feature set.However) Tj ET Q q 0 0 0 rg BT 485.88 247.10 Td (, in the nascent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (market for connected devices in segments like consumer electronics and machine-to-machine modules, attributes like size, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (power consumption and cost are often much more important than raw performance.For these products, we typically propose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (our StreamliteL) Tj ET Q q 0 0 0 rg BT 111.62 211.10 Td (TE family of products, which provide performance levels suitable for these kinds of devices in a smaller) Tj ET Q q 0 0 0 rg BT 528.59 211.10 Td (, more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (power) Tj ET Q q 0 0 0 rg BT 74.29 199.10 Td (-ef) Tj ET Q q 0 0 0 rg BT 85.21 199.10 Td (ficient and more cost-ef) Tj ET Q q 0 0 0 rg BT 180.26 199.10 Td (fective implementation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.10 Td (Our primary products during the last three financial years are summarized in the table below) Tj ET Q q 0 0 0 rg BT 442.72 178.10 Td (.) 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414.79999999999995 m 290 414.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 430.79999999999995 m 332 430.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 414.79999999999995 m 332 414.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 430.79999999999995 m 336 430.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 414.79999999999995 m 336 414.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 430.79999999999995 m 364 430.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 414.79999999999995 m 364 414.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 430.79999999999995 m 368 430.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 414.79999999999995 m 368 414.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 430.79999999999995 m 563 430.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 414.79999999999995 m 563 414.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 349.79999999999995 m 114 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 349.79999999999995 m 118 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 349.79999999999995 m 184 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 349.79999999999995 m 188 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 349.79999999999995 m 238 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 349.79999999999995 m 242 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 349.79999999999995 m 286 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 349.79999999999995 m 290 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 349.79999999999995 m 332 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 349.79999999999995 m 336 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 349.79999999999995 m 364 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 349.79999999999995 m 368 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 349.79999999999995 m 563 349.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 262.79999999999995 m 114 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 262.79999999999995 m 118 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 262.79999999999995 m 184 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 262.79999999999995 m 188 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 262.79999999999995 m 238 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 262.79999999999995 m 242 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 262.79999999999995 m 286 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 262.79999999999995 m 290 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 262.79999999999995 m 332 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 262.79999999999995 m 336 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 262.79999999999995 m 364 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 262.79999999999995 m 368 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 262.79999999999995 m 563 262.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 187.79999999999995 m 114 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 187.79999999999995 m 118 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 187.79999999999995 m 184 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 187.79999999999995 m 188 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 187.79999999999995 m 238 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 187.79999999999995 m 242 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 187.79999999999995 m 286 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 187.79999999999995 m 290 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 187.79999999999995 m 332 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 187.79999999999995 m 336 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 187.79999999999995 m 364 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 187.79999999999995 m 368 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 187.79999999999995 m 563 187.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 124.79999999999995 m 114 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 124.79999999999995 m 118 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 124.79999999999995 m 184 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 124.79999999999995 m 188 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 124.79999999999995 m 238 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 124.79999999999995 m 242 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 124.79999999999995 m 286 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 124.79999999999995 m 290 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 124.79999999999995 m 332 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 124.79999999999995 m 336 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 124.79999999999995 m 364 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 124.79999999999995 m 368 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 124.79999999999995 m 563 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 109.79999999999995 m 114 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 109.79999999999995 m 118 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 109.79999999999995 m 184 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 109.79999999999995 m 188 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 109.79999999999995 m 238 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 109.79999999999995 m 242 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 109.79999999999995 m 286 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 109.79999999999995 m 290 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 109.79999999999995 m 332 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 109.79999999999995 m 336 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 109.79999999999995 m 364 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 109.79999999999995 m 368 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 109.79999999999995 m 563 109.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 109.29999999999995 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 109.29999999999995 m BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 679.03 Td (PlatformName) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 671.03 Td (ChipsetID) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 663.03 Td (Family) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 692.05 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 130.70 663.03 Td (Description) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 692.05 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 692.05 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.30 663.03 Td (Key Featur) Tj ET Q q 0 0 0 rg BT 481.10 663.03 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 199.05 679.03 Td (T) Tj ET Q q 0 0 0 rg BT 203.65 679.03 Td (ablets/) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 194.05 671.03 Td (Embedded) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.45 663.03 Td (Laptops) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 251.50 671.03 Td (Mobile) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.90 663.03 Td (Routers) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.85 671.03 Td (IoT) Tj ET Q q 0 0 0 rg BT 309.15 671.03 Td (and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.90 663.03 Td (M2M) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 663.05 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.50 663.03 Td (CPE) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 663.05 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 606.63 Td (MonarchSiP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 596.47 Td (SQN66430) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 613.47 Td (L) Tj ET Q q 0 0 0 rg BT 122.15 613.47 Td (TE Release) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 603.47 Td (13/14 dual-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 593.47 Td (mode L) Tj ET Q q 0 0 0 rg BT 146.87 593.47 Td (TE M1/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 583.47 Td (NB1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.70 585.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 633.47 Td (Ultra-compact complete L) Tj ET Q q 0 0 0 rg BT 471.55 633.47 Td (TE System in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 623.47 Td (Package; integrated baseband, RF) Tj ET Q q 0 0 0 rg BT 501.61 623.47 Td (, pSRAM,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 613.47 Td (power management, front-end and passives;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 603.47 Td (eco-Paging for optimized eDRX; power class) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 593.47 Td (options 20 and 23dBm; IoT) Tj ET Q q 0 0 0 rg BT 476.59 593.47 Td (-Select optimized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 583.47 Td (network selection Cat M/NB-IoT) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 546.63 Td (MonarchSX) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 536.47 Td (SQN3340) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 533.47 Td (L) Tj ET Q q 0 0 0 rg BT 122.15 533.47 Td (TE Release) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 523.47 Td (13/14 SoC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.70 525.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 553.47 Td (L) Tj ET Q q 0 0 0 rg BT 372.15 553.47 Td (TE UE Category M1 and NB1 supported;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 543.47 Td (MCU, sensor hub, GPU, media engine,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 533.47 Td (Baseband, RF transceiver) Tj ET Q q 0 0 0 rg BT 468.77 533.47 Td (, memory and power) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 523.47 Td (management integrated in a single package.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 471.42 Td (VZM20Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.50 458.42 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 435.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 494.37 Td (Monarch-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 484.37 Td (based surface-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 474.37 Td (mount all-in-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 464.37 Td (one L) Tj ET Q q 0 0 0 rg BT 143.09 464.37 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 454.37 Td (module for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 444.37 Td (V) Tj ET Q q 0 0 0 rg BT 127.17 444.37 Td (erizon) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 434.37 Td (W) Tj ET Q q 0 0 0 rg BT 129.74 434.37 Td (ireless) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 435.05 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 435.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 464.92 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 435.05 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 338.50 465.40 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 435.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 465.47 Td (20mm x 21mm x 1.5mm, surface-mountable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 455.47 Td (module with integrated, clocks, Flash, and RF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 445.47 Td (front-end supporting bands 4 and 13; ) Tj ET Q q 0 0 0 rg BT 520.85 445.47 Td (V) Tj ET Q q 0 0 0 rg BT 526.96 445.47 Td (erizon) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 435.47 Td (W) Tj ET Q q 0 0 0 rg BT 379.54 435.47 Td (ireless and FCC certified.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 391.58 Td (Monarch) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 381.42 Td (SQN3330) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.95 394.92 Td (L) Tj ET Q q 0 0 0 rg BT 130.14 394.92 Td (TE Release ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.10 384.92 Td (13/14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.05 374.92 Td (BB+RF+ ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.05 364.92 Td (PMIC+RAM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 379.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 399.92 Td (L) Tj ET Q q 0 0 0 rg BT 376.15 399.92 Td (TE UE Category M1 and NB1 supported;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 389.92 Td (Baseband, RF transceiver) Tj ET Q q 0 0 0 rg BT 472.77 389.92 Td (, memory and power) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 379.92 Td (management integrated in a single package;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 369.92 Td (power) Tj ET Q q 0 0 0 rg BT 395.39 369.92 Td (-optimized for IoT) Tj ET Q q 0 0 0 rg BT 469.62 369.92 Td ( and M2M) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 359.92 Td (applications requiring lower throughput.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 308.08 Td (Calliope) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 297.92 Td (SQN3223) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.95 306.42 Td (L) Tj ET Q q 0 0 0 rg BT 130.14 306.42 Td (TE Release ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.60 296.42 Td (9/10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.80 286.42 Td (BB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 296.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 316.42 Td (40nm technology) Tj ET Q q 0 0 0 rg BT 439.89 316.42 Td (, 10Mbps CA) Tj ET Q q 0 0 0 rg BT 493.18 316.42 Td (T1 peak) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 306.42 Td (throughput, USB and HS UAR) Tj ET Q q 0 0 0 rg BT 494.37 306.42 Td (T) Tj ET Q q 0 0 0 rg BT 500.09 306.42 Td ( interfaces,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 296.42 Td (integrated processor) Tj ET Q q 0 0 0 rg BT 451.10 296.42 Td (, cost- and power) Tj ET Q q 0 0 0 rg BT 519.67 296.42 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 286.42 Td (optimized for IoT) Tj ET Q q 0 0 0 rg BT 441.50 286.42 Td ( and M2M applications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 276.42 Td (requiring lower throughput.) Tj ET Q q 0 0 0 rg BT 483.72 276.42 Td (WLCSP) Tj ET Q q 0 0 0 rg BT 516.42 276.42 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 227.08 Td (Colibri) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 216.92 Td (SQN3221) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.95 225.42 Td (L) Tj ET Q q 0 0 0 rg BT 130.14 225.42 Td (TE Release ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.60 215.42 Td (9/10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.80 205.42 Td (BB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 215.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 215.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 215.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 215.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 235.42 Td (40nm technology) Tj ET Q q 0 0 0 rg BT 439.89 235.42 Td (, 150Mbps CA) Tj ET Q q 0 0 0 rg BT 498.18 235.42 Td (T4 peak) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 225.42 Td (throughput, USB and HS UAR) Tj ET Q q 0 0 0 rg BT 494.37 225.42 Td (T) Tj ET Q q 0 0 0 rg BT 500.09 225.42 Td ( interfaces,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 215.42 Td (integrated processor) Tj ET Q q 0 0 0 rg BT 451.10 215.42 Td (, optimized price/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 205.42 Td (performance for mobile computing and high) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 195.42 Td (performance M2M markets. ) Tj ET Q q 0 0 0 rg BT 485.37 195.42 Td (WLCSP) Tj ET Q q 0 0 0 rg BT 518.07 195.42 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 161.58 Td (Colibri / ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 151.58 Td (Calliope) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 141.42 Td (SQN3241) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.75 151.42 Td (L) Tj ET Q q 0 0 0 rg BT 146.94 151.42 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.35 141.42 Td (RF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 146.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 146.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 146.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 146.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 151.42 Td (Supports 700-900MHz and 1.8-2.7GHz, up to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 141.42 Td (20 MHz bandwidth. ) Tj ET Q q 0 0 0 rg BT 453.09 141.42 Td (WLCSP) Tj ET Q q 0 0 0 rg BT 485.32 141.42 Td (.) Tj ET Q /GS0 gs q 58.00 0 0 13.35 52.50 131.42 cm /I30 Do Q /GS0 gs q 57.00 0 0 13.00 52.50 203.92 cm /I31 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 284.92 cm /I32 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 368.42 cm /I33 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 458.42 cm /I34 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 523.47 cm /I35 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 583.47 cm /I36 Do Q endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (39) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 715.5 m 238 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 715.5 m 242 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 715.5 m 286 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 715.5 m 290 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 715.5 m 332 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 715.5 m 336 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 715.5 m 364 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 686.5 m 238 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 686.5 m 286 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 686.5 m 332 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 686.5 m 364 686.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 706.73 Td (PlatformName) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 698.73 Td (ChipsetID) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 690.73 Td (Family) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 719.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 130.70 690.73 Td (Description) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 719.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 719.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.30 690.73 Td (Key Featur) Tj ET Q q 0 0 0 rg BT 481.10 690.73 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 199.05 706.73 Td (T) Tj ET Q q 0 0 0 rg BT 203.65 706.73 Td (ablets/) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 194.05 698.73 Td (Embedded) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.45 690.73 Td (Laptops) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 251.50 698.73 Td (Mobile) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.90 690.73 Td (Routers) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.85 698.73 Td (IoT) Tj ET Q q 0 0 0 rg BT 309.15 698.73 Td (and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.90 690.73 Td (M2M) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 690.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.50 690.73 Td (CPE) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 690.75 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 686.5 m 114 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 615.5 m 114 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 686.5 m 118 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 615.5 m 118 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 686.5 m 184 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 615.5 m 184 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 686.5 m 188 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 615.5 m 188 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 686.5 m 238 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 615.5 m 238 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 686.5 m 242 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 615.5 m 242 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 686.5 m 286 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 615.5 m 286 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 686.5 m 290 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 615.5 m 290 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 686.5 m 332 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 615.5 m 332 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 686.5 m 336 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 615.5 m 336 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 686.5 m 364 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 615.5 m 364 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 686.5 m 368 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 615.5 m 368 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 686.5 m 563 686.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 615.5 m 563 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 615.5 m 114 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 600.5 m 114 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 615.5 m 118 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 600.5 m 118 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 615.5 m 184 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 600.5 m 184 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 615.5 m 188 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 600.5 m 188 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 615.5 m 238 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 600.5 m 238 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 615.5 m 242 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 600.5 m 242 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 615.5 m 286 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 600.5 m 286 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 615.5 m 290 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 600.5 m 290 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 615.5 m 332 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 600.5 m 332 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 615.5 m 336 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 600.5 m 336 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 615.5 m 364 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 600.5 m 364 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 615.5 m 368 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 600.5 m 368 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 615.5 m 563 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 600.5 m 563 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 520.5 m 114 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 520.5 m 118 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 520.5 m 184 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 520.5 m 188 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 520.5 m 238 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 520.5 m 242 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 520.5 m 286 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 520.5 m 290 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 520.5 m 332 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 520.5 m 336 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 600.5 m 364 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 520.5 m 364 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 520.5 m 368 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 520.5 m 563 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 430.5 m 114 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 430.5 m 118 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 430.5 m 184 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 430.5 m 188 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 430.5 m 238 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 430.5 m 242 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 430.5 m 286 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 430.5 m 290 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 430.5 m 332 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 430.5 m 336 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 430.5 m 364 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 430.5 m 368 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 430.5 m 563 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 340.5 m 114 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 340.5 m 118 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 340.5 m 184 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 340.5 m 188 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 340.5 m 238 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 340.5 m 242 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 340.5 m 286 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 340.5 m 290 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 340.5 m 332 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 340.5 m 336 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 340.5 m 364 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 340.5 m 368 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 340.5 m 563 340.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 250.5 m 114 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 250.5 m 118 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 250.5 m 184 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 250.5 m 188 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 250.5 m 238 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 250.5 m 242 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 250.5 m 286 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 250.5 m 290 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 250.5 m 332 250.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 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1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 180.5 m 364 180.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 180.5 m 368 180.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 180.5 m 563 180.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 98.5 m 114 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 98.5 m 118 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 98.5 m 184 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 98.5 m 188 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 98.5 m 238 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 98.5 m 242 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 98.5 m 286 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 98.5 m 290 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 98.5 m 332 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 98.5 m 336 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 98.5 m 364 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 98.5 m 368 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 98.5 m 563 98.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 83 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 83 m BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 655.12 Td (VZ130Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.50 642.12 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 619.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 668.62 Td (Calliope-based) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.60 658.62 Td (surface-mount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.10 648.62 Td (all-in-one L) Tj ET Q q 0 0 0 rg BT 168.12 648.62 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.40 638.62 Td (module for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 628.62 Td (U.S. networks) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 619.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 619.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 648.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 619.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 648.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 619.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 673.62 Td (20mm x 21mm x 1.5mm, surface-mountable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 663.62 Td (module with integrated power management,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 653.62 Td (clocks, Flash and DDR memories, and RF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 643.62 Td (front-end supporting bands 4 and 13; ) Tj ET Q q 0 0 0 rg BT 520.94 643.62 Td (V) Tj ET Q q 0 0 0 rg BT 527.52 643.62 Td (erizon) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 633.62 Td (W) Tj ET Q q 0 0 0 rg BT 379.74 633.62 Td (ireless and GCF certified.eMBMS and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 623.62 Td (V) Tj ET Q q 0 0 0 rg BT 377.08 623.62 Td (oL) Tj ET Q q 0 0 0 rg BT 387.08 623.62 Td (TE capable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 564.62 Td (VZ120Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.50 551.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 524.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.50 588.12 Td (Calliope-based) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.60 578.12 Td (surface-mount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.10 568.12 Td (all-in-one L) Tj ET Q q 0 0 0 rg BT 168.12 568.12 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.40 558.12 Td (module for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.95 548.12 Td (V) Tj ET Q q 0 0 0 rg BT 141.62 548.12 Td (erizon) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.20 538.12 Td (W) Tj ET Q q 0 0 0 rg BT 142.44 538.12 Td (ireless) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.10 528.12 Td (network) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 524.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 524.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 558.12 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 524.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 558.12 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 524.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 583.12 Td (20mm x 21mm x 1.5mm, surface-mountable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 573.12 Td (module with integrated power management,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 563.12 Td (clocks, Flash and DDR memories, and RF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 553.12 Td (front-end supporting bands 4 and 13; ) Tj ET Q q 0 0 0 rg BT 520.94 553.12 Td (V) Tj ET Q q 0 0 0 rg BT 527.52 553.12 Td (erizon) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 543.12 Td (W) Tj ET Q q 0 0 0 rg BT 379.74 543.12 Td (ireless and GCF certified.eMBMS and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 533.12 Td (V) Tj ET Q q 0 0 0 rg BT 377.08 533.12 Td (oL) Tj ET Q q 0 0 0 rg BT 387.08 533.12 Td (TE capable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 475.62 Td (VZ22Q) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 434.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.25 495.62 Td (Colibri-based) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.60 485.62 Td (surface-mount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.10 475.62 Td (all-in-one L) Tj ET Q q 0 0 0 rg BT 168.12 475.62 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.40 465.62 Td (module for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.95 455.62 Td (V) Tj ET Q q 0 0 0 rg BT 141.62 455.62 Td (erizon) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.20 445.62 Td (W) Tj ET Q q 0 0 0 rg BT 142.44 445.62 Td (ireless) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.10 435.62 Td (network) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 434.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 465.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 434.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 465.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 434.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 465.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 434.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 338.50 466.10 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 434.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 490.62 Td (20mm x 21mm x 1.5mm, surface-mountable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 480.62 Td (module with integrated power management,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 470.62 Td (clocks, Flash and DDR memories, and RF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 460.62 Td (front-end supporting bands 4 and 13; ) Tj ET Q q 0 0 0 rg BT 520.94 460.62 Td (V) Tj ET Q q 0 0 0 rg BT 527.52 460.62 Td (erizon) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 450.62 Td (W) Tj ET Q q 0 0 0 rg BT 379.74 450.62 Td (ireless and GCF certified.eMBMS and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 440.62 Td (V) Tj ET Q q 0 0 0 rg BT 377.08 440.62 Td (oL) Tj ET Q q 0 0 0 rg BT 387.08 440.62 Td (TE capable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 382.12 Td (VZ22M) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.50 369.12 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 344.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.25 405.62 Td (Colibri-based) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.65 395.62 Td (M.2 form-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.85 385.62 Td (factor L) Tj ET Q q 0 0 0 rg BT 160.31 385.62 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.40 375.62 Td (module for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.95 365.62 Td (V) Tj ET Q q 0 0 0 rg BT 141.62 365.62 Td (erizon) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.20 355.62 Td (W) Tj ET Q q 0 0 0 rg BT 142.44 355.62 Td (ireless) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.10 345.62 Td (network) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 344.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 375.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 344.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 376.10 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 344.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 375.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 344.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 375.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 344.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 395.62 Td (M.2 module with integrated power) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 385.62 Td (management, clocks, Flash and DDR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 375.62 Td (memories, and RF front-end supporting bands) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 365.62 Td (4 and 13; ) Tj ET Q q 0 0 0 rg BT 410.13 365.62 Td (V) Tj ET Q q 0 0 0 rg BT 416.70 365.62 Td (erizon ) Tj ET Q q 0 0 0 rg BT 443.54 365.62 Td (W) Tj ET Q q 0 0 0 rg BT 452.69 365.62 Td (ireless and GCF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 355.62 Td (certified.eMBMS and ) Tj ET Q q 0 0 0 rg BT 462.61 355.62 Td (V) Tj ET Q q 0 0 0 rg BT 469.10 355.62 Td (oL) Tj ET Q q 0 0 0 rg BT 479.10 355.62 Td (TE capable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 298.62 Td (US60L) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.50 272.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 254.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.25 315.62 Td (Colibri-based) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.60 305.62 Td (surface-mount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.10 295.62 Td (all-in-one L) Tj ET Q q 0 0 0 rg BT 168.12 295.62 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.40 285.62 Td (module for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.15 275.62 Td (multiple US) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.45 265.62 Td (carrier) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.15 255.62 Td (networks) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 254.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 285.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 254.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 285.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 254.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 285.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 254.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 338.50 286.10 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 254.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 310.62 Td (31.5 x 22 x 1.85 mm, surface-mountable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 300.62 Td (module with integrated power management,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 290.62 Td (clocks, Flash and DDR memories, and RF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 280.62 Td (front-end supporting bands 2, 4, 5, 12, 13 and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 270.62 Td (17; ) Tj ET Q q 0 0 0 rg BT 385.50 270.62 Td (A) Tj ET Q q 0 0 0 rg BT 391.89 270.62 Td (T&T) Tj ET Q q 0 0 0 rg BT 411.24 270.62 Td ( certified.eMBMS and ) Tj ET Q q 0 0 0 rg BT 505.77 270.62 Td (V) Tj ET Q q 0 0 0 rg BT 512.25 270.62 Td (oL) Tj ET Q q 0 0 0 rg BT 522.26 270.62 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 260.62 Td (capable) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 225.78 Td (Cassiopeia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 215.62 Td (SQN3220/ ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 205.62 Td (SQN3220sc) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 184.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.10 215.62 Td (L) Tj ET Q q 0 0 0 rg BT 145.75 215.62 Td (TE-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.20 205.62 Td (Advanced) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.75 195.62 Td (Release 10 BB) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 184.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 205.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 184.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 206.10 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 184.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.50 206.10 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 184.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 205.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 184.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 205.62 Td (Carrier aggregation up to 20 + 20 MHz) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 156.18 Td (Mont Blanc/ ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 146.18 Td (Cassiopeia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 136.02 Td (SQN3240/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 126.02 Td (SQN3242/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 116.02 Td (SQN3244) Tj ET Q BT /F1 2.00 Tf ET q 0 0 0 rg BT 110.50 101.56 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 102.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.40 129.62 Td (L) Tj ET Q q 0 0 0 rg BT 139.59 129.62 Td (TE RF) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 102.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 129.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 102.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 129.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 102.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 129.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 102.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 129.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 102.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 134.62 Td (Supports FDD and ) Tj ET Q q 0 0 0 rg BT 447.82 134.62 Td (TDD 700 MHz 2.7 GHz,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 124.62 Td (up to 20 MHz bandwidth) Tj ET Q /GS0 gs q 58.00 0 0 13.35 52.50 101.56 cm /I37 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 185.62 cm /I38 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 272.62 cm /I39 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 369.12 cm /I40 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 455.62 cm /I41 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 551.62 cm /I42 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 642.12 cm /I43 Do Q endstream endobj 87 0 obj <> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (40) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 714.5 m 238 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 714.5 m 242 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 714.5 m 286 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 714.5 m 290 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 714.5 m 332 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 714.5 m 336 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 714.5 m 364 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 685.5 m 238 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 685.5 m 286 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 685.5 m 332 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 685.5 m 364 685.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 705.73 Td (PlatformName) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 697.73 Td (ChipsetID) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 689.73 Td (Family) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 718.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 130.70 689.73 Td (Description) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 718.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 718.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.30 689.73 Td (Key Featur) Tj ET Q q 0 0 0 rg BT 481.10 689.73 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 199.05 705.73 Td (T) Tj ET Q q 0 0 0 rg BT 203.65 705.73 Td (ablets/) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 194.05 697.73 Td (Embedded) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.45 689.73 Td (Laptops) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 251.50 697.73 Td (Mobile) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.90 689.73 Td (Routers) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.85 697.73 Td (IoT) Tj ET Q q 0 0 0 rg BT 309.15 697.73 Td (and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.90 689.73 Td (M2M) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 689.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.50 689.73 Td (CPE) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 689.75 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 634.5 m 114 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 634.5 m 118 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 634.5 m 184 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 634.5 m 188 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 634.5 m 238 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 634.5 m 242 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 634.5 m 286 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 634.5 m 290 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 634.5 m 332 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 634.5 m 336 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 634.5 m 364 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 634.5 m 368 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 634.5 m 563 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 564.5 m 114 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 564.5 m 118 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 564.5 m 184 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 564.5 m 188 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 564.5 m 238 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 564.5 m 242 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 564.5 m 286 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 564.5 m 290 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 564.5 m 332 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 564.5 m 336 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 564.5 m 364 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 564.5 m 368 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 564.5 m 563 564.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 512.5 m 114 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 114 512.5 m 118 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 118 512.5 m 184 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 512.5 m 188 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 512.5 m 238 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 512.5 m 242 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 512.5 m 286 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 512.5 m 290 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 512.5 m 332 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 512.5 m 336 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 512.5 m 364 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 512.5 m 368 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 512.5 m 563 512.5 l s BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 673.68 Td (Mont Blanc) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 663.52 Td (SQN3120) Tj ET Q BT /F1 10.00 Tf ET BT /F1 2.00 Tf ET q 0 0 0 rg BT 52.50 640.01 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 638.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.20 662.62 Td (L) Tj ET Q q 0 0 0 rg BT 126.85 662.62 Td (TE Release 9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.80 652.62 Td (BB) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 638.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 657.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 638.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 657.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 638.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 657.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 638.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 657.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 638.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 672.62 Td (40nm technology) Tj ET Q q 0 0 0 rg BT 439.89 672.62 Td (, 150Mbps Category 4 peak) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 662.62 Td (throughput, USB, SDIO and gigabit Ethernet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 652.62 Td (interfaces, embedded SDRAM plus integrated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 642.62 Td (processor) Tj ET Q q 0 0 0 rg BT 408.54 642.62 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 605.68 Td (Mont Blanc) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 595.52 Td (SQN5120) Tj ET Q BT /F1 10.00 Tf ET BT /F1 2.00 Tf ET q 0 0 0 rg BT 52.50 572.01 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 568.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.20 594.62 Td (L) Tj ET Q q 0 0 0 rg BT 126.39 594.62 Td (TE Release 9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.00 584.62 Td (+ ) Tj ET Q q 0 0 0 rg BT 128.96 584.62 Td (W) Tj ET Q q 0 0 0 rg BT 138.00 584.62 Td (iMAXBB) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 568.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.50 590.10 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 568.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 589.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 568.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.50 590.10 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 568.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 589.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 568.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 599.62 Td (As in SQN3120, plus integrated ) Tj ET Q q 0 0 0 rg BT 500.96 599.62 Td (W) Tj ET Q q 0 0 0 rg BT 510.10 599.62 Td (iMAX) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 589.62 Td (baseband, seamless ) Tj ET Q q 0 0 0 rg BT 450.66 589.62 Td (W) Tj ET Q q 0 0 0 rg BT 459.81 589.62 Td (iMAX-L) Tj ET Q q 0 0 0 rg BT 494.70 589.62 Td (TE handover) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 579.62 Td (support) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.50 540.18 Td (Mont Blanc) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 530.02 Td (SQN3140) Tj ET Q BT /F1 2.00 Tf ET q 0 0 0 rg BT 110.50 515.56 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.50 516.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.40 528.62 Td (L) Tj ET Q q 0 0 0 rg BT 139.59 528.62 Td (TE RF) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.50 516.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.70 528.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.50 516.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 528.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.50 516.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 528.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.50 516.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.70 528.62 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.50 516.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 533.62 Td (Supports 2.32.7 GHz and 3.33.8 GHz) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 523.62 Td (TDD L) Tj ET Q q 0 0 0 rg BT 398.74 523.62 Td (TE bands, up to 20 MHz bandwidth) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 492.00 Td (Abbr) Tj ET Q q 0 0 0 rg BT 69.13 492.00 Td (eviations used in this table: BB = baseband pr) Tj ET Q q 0 0 0 rg BT 254.93 492.00 Td (ocessor) Tj ET Q q 0 0 0 rg BT 284.37 492.00 Td (, CPE = customer pr) Tj ET Q q 0 0 0 rg BT 367.69 492.00 Td (emise equipment, EOL) Tj ET Q q 0 0 0 rg BT 458.32 492.00 Td ( = pr) Tj ET Q q 0 0 0 rg BT 478.59 492.00 Td (oduct declar) Tj ET Q q 0 0 0 rg BT 528.48 492.00 Td (ed end-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 480.00 Td (of-life, FDD = fr) Tj ET Q q 0 0 0 rg BT 116.98 480.00 Td (equency division duplexing, IoT) Tj ET Q q 0 0 0 rg BT 244.54 480.00 Td ( = Internet of Things, nm = nanometer) Tj ET Q q 0 0 0 rg BT 398.59 480.00 Td (, PMIC = power management IC, RF = ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 468.00 Td (radio fr) Tj ET Q q 0 0 0 rg BT 79.97 468.00 Td (equency transceiver) Tj ET Q q 0 0 0 rg BT 159.10 468.00 Td (, SDRAM = Synchr) Tj ET Q q 0 0 0 rg BT 236.01 468.00 Td (onous Dynamic Random ) Tj ET Q q 0 0 0 rg BT 336.65 468.00 Td (Access Memory) Tj ET Q q 0 0 0 rg BT 399.13 468.00 Td (, SiP) Tj ET Q q 0 0 0 rg BT 417.83 468.00 Td ( = system in package, SoC = ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 456.00 Td (system-on-chip, TDD = time division duplexing, V) Tj ET Q q 0 0 0 rg BT 250.11 456.00 Td (oIP) Tj ET Q q 0 0 0 rg BT 264.36 456.00 Td ( = V) Tj ET Q q 0 0 0 rg BT 281.11 456.00 Td (oice over Internet Pr) Tj ET Q q 0 0 0 rg BT 364.32 456.00 Td (otocol.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 435.00 Td (In February 2016, we announced a Release 13/14 chipset, Monarch, capable of supporting both Cat M and NB-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.00 Td (IoT) Tj ET Q q 0 0 0 rg BT 63.20 423.00 Td (.Monarch includes the baseband processor) Tj ET Q q 0 0 0 rg BT 234.96 423.00 Td (, RF transceiver and power management circuitry in a single package.It is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.00 Td (tar) Tj ET Q q 0 0 0 rg BT 59.87 411.00 Td (geted at lower data-use IoT) Tj ET Q q 0 0 0 rg BT 169.08 411.00 Td ( applications, including sensors, wearables and utility meters.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.00 Td (In February 2017, we announced Monarch SX, a system-on-chip that integrates an ) Tj ET Q q 0 0 0 rg BT 405.63 390.00 Td (ARM Cortex M4 processor) Tj ET Q q 0 0 0 rg BT 514.95 390.00 Td (, a sensor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.00 Td (hub, a media processing engine, a graphics processor and display controller alongside the Monarch Cat M/NB-IoT) Tj ET Q q 0 0 0 rg BT 507.81 378.00 Td ( modem, in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.00 Td (single chip.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 345.00 Td (In February 2018, we announced Monarch SiP) Tj ET Q q 0 0 0 rg BT 259.30 345.00 Td (, a highly integrated system-in-package that combines the Monarch with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.00 Td (front-end radio module from Skyworks to create an all-in-one design that simplifies the design process, shortens development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.00 Td (time, is pre-certified by operators that have certified the Monarch and is optimized for space-constrained IoT) Tj ET Q q 0 0 0 rg BT 484.71 321.00 Td ( products such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.00 Td (sensors, trackers and wearables, where the size is extremely important.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 288.00 Td (In February 2018, we announced a Release 14/15 chipset, Monarch N, an NB-IoT) Tj ET Q q 0 0 0 rg BT 401.28 288.00 Td ( platform designed and optimized for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.00 Td (pure NB-IoT) Tj ET Q q 0 0 0 rg BT 101.25 276.00 Td ( operation. Monarch N is highly integrated and includes all primary functions in a small chip scale package \(CSP\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.00 Td (enabling modules smaller than 10 x 10 mm.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 243.00 Td (In February 2019, we also announced a release 14/15 chipset, Monarch 2, the second generation of Monarch. Optimized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.00 Td (for Cat M1/NB1/NB2, Monarch 2 is a highly integrated chip \(baseband, RF) Tj ET Q q 0 0 0 rg BT 351.71 231.00 Td (, pSRAM, and power management\) for optimized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.00 Td (cost and power) Tj ET Q q 0 0 0 rg BT 109.49 219.00 Td (. ) Tj ET Q q 0 0 0 rg BT 114.30 219.00 Td (The solution includes an embedded application CPU 3.6-312MHz MCU for adaptive power/performance ratio, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.00 Td (a secure element, an Integrated Universal Integrated Circuit Card \(iUICC\), Evaluation ) Tj ET Q q 0 0 0 rg BT 396.32 207.00 Td (Assurance Level 5, government grade ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.00 Td (security and embedded GNSS positioning.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 169.00 Td (Competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 148.00 Td (The wireless semiconductor business is very competitive. ) Tj ET Q q 0 0 0 rg BT 306.04 148.00 Td (W) Tj ET Q q 0 0 0 rg BT 314.68 148.00 Td (e believe that our competitive strengths will enable us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.00 Td (compete favorably in the L) Tj ET Q q 0 0 0 rg BT 156.87 136.00 Td (TE markets. ) Tj ET Q q 0 0 0 rg BT 208.06 136.00 Td (The following are the primary elements on which companies in our industry compete:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 124.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 124.00 Td (functionality) Tj ET Q q 0 0 0 rg BT 135.55 124.00 Td (, form factor and cost;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 112.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 112.00 Td (product performance, as measured by network throughput, signal reach, latency and power consumption;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 100.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 100.00 Td (track record of providing high-volume deployments in the industry; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 88.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 88.00 Td (systems knowledge.) Tj ET Q /GS0 gs q 58.00 0 0 13.35 52.50 515.56 cm /I44 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 575.52 cm /I45 Do Q /GS0 gs q 58.00 0 0 13.35 52.50 643.52 cm /I46 Do Q endstream endobj 89 0 obj <> endobj 90 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (In the L) Tj ET Q q 0 0 0 rg BT 104.24 722.10 Td (TE market, we expect to face competition from established semiconductor companies such as Huawei, Intel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (Corporation, Mediatek, Qualcomm Incorporated, Samsung Electronics Co. Ltd., Sony Corporation and Spreadtrum, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (smaller actors in the market such as GCT) Tj ET Q q 0 0 0 rg BT 214.55 698.10 Td ( Semiconductor or newcomers such as Nordic Semiconductor) Tj ET Q q 0 0 0 rg BT 460.88 698.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 677.10 Td (Many of our competitors have longer operating histories, significantly greater resources and name recognition, and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 665.10 Td (ger base of existing customers than us. In addition, some of them may provide incentives to customers or of) Tj ET Q q 0 0 0 rg BT 490.70 665.10 Td (fer bundled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (solutions with complementary products, which could be attractive to some customers, or adopt more aggressive pricing policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (to of) Tj ET Q q 0 0 0 rg BT 67.93 641.10 Td (fset what we believe are the performance and cost advantages of our solutions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (Business Development, Sales and Marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 598.10 Td (Our business development ef) Tj ET Q q 0 0 0 rg BT 189.68 598.10 Td (forts are focused on developing relationships with wireless carriers to identify the potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (product opportunities at each carrier) Tj ET Q q 0 0 0 rg BT 193.88 586.10 Td (. Our sales ef) Tj ET Q q 0 0 0 rg BT 246.46 586.10 Td (forts are focused on determining which OEMs and ODMs are most likely to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (win in the various carrier product opportunities and securing design wins for mobile broadband devices to be manufactured by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (the OEMs and ODMs. ) Tj ET Q q 0 0 0 rg BT 141.81 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 150.45 562.10 Td (e work closely with key players across the 4G wireless broadband industry to understand their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (requirements and enable them to certify and deploy 4G solutions in high volume.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 529.10 Td (Our business development team is or) Tj ET Q q 0 0 0 rg BT 221.35 529.10 Td (ganized regionally and by wireless carrier) Tj ET Q q 0 0 0 rg BT 388.22 529.10 Td (. In addition to identifying new business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (opportunities based on the wireless carriers' product launch plan, the business development team also works to understand the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (wireless carriers) Tj ET Q q 0 0 0 rg BT 117.33 505.10 Td ( future technological requirements, so that we can incorporate appropriate features in our product roadmap. ) Tj ET Q q 0 0 0 rg BT 548.37 505.10 Td (W) Tj ET Q q 0 0 0 rg BT 557.01 505.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (have a business development team of both dedicated employees and outside contractors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 472.10 Td (Our sales force is or) Tj ET Q q 0 0 0 rg BT 153.85 472.10 Td (ganized regionally to provide account management and customer support functions as close to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (customer physical locations as practical. ) Tj ET Q q 0 0 0 rg BT 212.78 460.10 Td (As of December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.81 460.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.81 460.10 Td (, we had a direct sales force serving our OEM and ODM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.10 Td (customers in the ) Tj ET Q q 0 0 0 rg BT 116.99 448.10 Td (Asia-Pacific region, including ) Tj ET Q q 0 0 0 rg BT 239.55 448.10 Td (T) Tj ET Q q 0 0 0 rg BT 244.96 448.10 Td (aiwan, China, Korea and Japan; Europe; the Middle East and North and South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (America. In the United States, China, Japan and Korea, we supplement our direct sales team with local distributors and/or sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (representatives who handle certain customer communications, logistics and customer support functions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 403.10 Td (Our sales force works closely with a team of technical support personnel. ) Tj ET Q q 0 0 0 rg BT 369.06 403.10 Td (This team assists customers in solving technical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 Td (challenges during the design, manufacturing implementation and certification phases of a customer) Tj ET Q q 0 0 0 rg BT 446.41 391.10 Td () Tj ET Q q 0 0 0 rg BT 449.19 391.10 Td (s product life cycle. ) Tj ET Q q 0 0 0 rg BT 530.36 391.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (information obtained from customer support is then communicated back to the direct product development teams to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.10 Td (considered in future software releases or hardware development. ) Tj ET Q q 0 0 0 rg BT 310.04 367.10 Td (This high-touch approach allows us to facilitate the successful ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.10 Td (certification and acceptance by the wireless carriers of our customers) Tj ET Q q 0 0 0 rg BT 328.35 355.10 Td ( products, which speeds time-to-market for our customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.10 Td (and reinforces our role as a trusted advisor to our customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 322.10 Td (Our sales cycles typically take 12 months or more to complete and our solutions are generally incorporated into our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (customers) Tj ET Q q 0 0 0 rg BT 92.63 310.10 Td ( products at the design stage. Prior to an end customer) Tj ET Q q 0 0 0 rg BT 309.34 310.10 Td () Tj ET Q q 0 0 0 rg BT 312.12 310.10 Td (s selection and purchase of our solutions, our sales force and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (technical support engineers provide our end customers with technical assistance in the use of our solutions in their products. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (Once our solution is designed into a customer) Tj ET Q q 0 0 0 rg BT 232.89 286.10 Td () Tj ET Q q 0 0 0 rg BT 235.67 286.10 Td (s product of) Tj ET Q q 0 0 0 rg BT 283.26 286.10 Td (fering, it becomes more dif) Tj ET Q q 0 0 0 rg BT 391.65 286.10 Td (ficult for a competitor to sell its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (semiconductor solutions to that end customer for that particular product of) Tj ET Q q 0 0 0 rg BT 347.02 274.10 Td (fering given the significant cost, time, ef) Tj ET Q q 0 0 0 rg BT 509.01 274.10 Td (fort and risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (involved in changing suppliers. In addition, once we win a particular design with an end customer) Tj ET Q q 0 0 0 rg BT 440.95 262.10 Td (, we believe our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (penetrate other product families at that end customer increases significantly) Tj ET Q q 0 0 0 rg BT 351.24 250.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 229.10 Td (Our marketing strategy is focused on enabling broad adoption of 4G solutions and communicating our technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (advantages to the marketplace. ) Tj ET Q q 0 0 0 rg BT 175.10 217.10 Td (This includes building awareness of and preference for our technology at wireless carriers who ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (generate demand for 4G-enabled devices. By working to understand carrier services strategies, device roadmaps and technical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (requirements, we believe we are better positioned to drive our roadmap to meet these needs, to influence their choice of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (technology suppliers, and to identify manufacturers in the wireless industry who are best prepared to serve the needs of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (wireless carrier) Tj ET Q q 0 0 0 rg BT 110.30 169.10 Td (. Our technical and business relationships with ) Tj ET Q q 0 0 0 rg BT 298.97 169.10 Td (V) Tj ET Q q 0 0 0 rg BT 305.09 169.10 Td (erizon ) Tj ET Q q 0 0 0 rg BT 332.39 169.10 Td (W) Tj ET Q q 0 0 0 rg BT 341.43 169.10 Td (ireless, ) Tj ET Q q 0 0 0 rg BT 371.79 169.10 Td (T) Tj ET Q q 0 0 0 rg BT 376.99 169.10 Td (-Mobile, ) Tj ET Q q 0 0 0 rg BT 413.65 169.10 Td (A) Tj ET Q q 0 0 0 rg BT 419.76 169.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 439.02 169.10 Td (, Sprint, NTT) Tj ET Q q 0 0 0 rg BT 492.72 169.10 Td ( DoCoMo, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (Softbank, KDDI and other operators have allowed us to anticipate requirements and develop solutions tailored for their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (respective networks, which helped us secure several design wins and launch multiple products. For instance, in 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (Gemalto's ELS31 L) Tj ET Q q 0 0 0 rg BT 127.60 133.10 Td (TE Category 1 M2M module was certified at ) Tj ET Q q 0 0 0 rg BT 310.14 133.10 Td (V) Tj ET Q q 0 0 0 rg BT 316.26 133.10 Td (erizon, our Calliope L) Tj ET Q q 0 0 0 rg BT 403.65 133.10 Td (TE Category 1 chipset was certified by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (A) Tj ET Q q 0 0 0 rg BT 55.61 121.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 74.87 121.10 Td (, ) Tj ET Q q 0 0 0 rg BT 79.69 121.10 Td (T) Tj ET Q q 0 0 0 rg BT 84.88 121.10 Td (-Mobile and NTT) Tj ET Q q 0 0 0 rg BT 155.79 121.10 Td ( DoCoMo, D-Link launched an industrial IoT) Tj ET Q q 0 0 0 rg BT 338.07 121.10 Td ( modem using our Colibri L) Tj ET Q q 0 0 0 rg BT 449.09 121.10 Td (TE Category 4 chipset, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.10 Td (ZTEW) Tj ET Q q 0 0 0 rg BT 76.46 109.10 Td (elink introduced a CPE based on our Cassiopiea L) Tj ET Q q 0 0 0 rg BT 276.61 109.10 Td (TE-Advanced chipset, and Nimbelink, LinkLabs and Encore Networks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.10 Td (all launched Cat M devices based on Sequans' Monarch Cat M chip; in 2017, our Monarch Category M platform was certified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.10 Td (by ) Tj ET Q q 0 0 0 rg BT 61.82 85.10 Td (V) Tj ET Q q 0 0 0 rg BT 67.93 85.10 Td (erizon and ) Tj ET Q q 0 0 0 rg BT 111.80 85.10 Td (A) Tj ET Q q 0 0 0 rg BT 117.92 85.10 Td (T&T) Tj ET Q q 0 0 0 rg BT 137.17 85.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 157.82 85.10 Td (V) Tj ET Q q 0 0 0 rg BT 163.75 85.10 Td (oL) Tj ET Q q 0 0 0 rg BT 173.94 85.10 Td (TE functionality on our Category 1 chipset was certified by ) Tj ET Q q 0 0 0 rg BT 414.25 85.10 Td (T) Tj ET Q q 0 0 0 rg BT 419.44 85.10 Td (-Mobile, we completed Europe's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (first Cat M data call with ) Tj ET Q q 0 0 0 rg BT 152.07 73.10 Td (T) Tj ET Q q 0 0 0 rg BT 157.48 73.10 Td (elefonica in Spain, and numerous new design wins were announced, particularly for IoT) Tj ET Q q 0 0 0 rg BT 509.60 73.10 Td (; and in 2018 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.10 Td (KDDI has certified our Calliope L) Tj ET Q q 0 0 0 rg BT 186.04 61.10 Td (TE Category 1 chipset,_SoftBank has validated our Category M1 Monarch chip set, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 49.10 Td (erizon has certified our Monarch SiP) Tj ET Q q 0 0 0 rg BT 201.96 49.10 Td (. ) Tj ET Q q 0 0 0 rg BT 209.28 49.10 Td (W) Tj ET Q q 0 0 0 rg BT 218.32 49.10 Td (ith DOCOMO we have partnered to help mature the Cat M and NB-IoT) Tj ET Q q 0 0 0 rg BT 505.29 49.10 Td ( networks. In ) Tj ET Q endstream endobj 91 0 obj <> endobj 92 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (addition to these carrier relationships, Sequans has successfully won customer design with ) Tj ET Q q 0 0 0 rg BT 413.04 722.10 Td (Aprotec, ) Tj ET Q q 0 0 0 rg BT 450.06 722.10 Td (T) Tj ET Q q 0 0 0 rg BT 455.82 722.10 Td (rackimo, Connected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (Holding, Polymer in Category M and ) Tj ET Q q 0 0 0 rg BT 201.25 710.10 Td (T) Tj ET Q q 0 0 0 rg BT 206.66 710.10 Td (elrad /Gemtek on CBRS. ) Tj ET Q q 0 0 0 rg BT 308.97 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.61 710.10 Td (e have also announced our partnership with PoL) Tj ET Q q 0 0 0 rg BT 509.69 710.10 Td (TE for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (integrating its low-cost positioning software solution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 677.10 Td (Our marketing team is also responsible for product management, strategic planning, product roadmap creation, OEM, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (ODM and wireless carrier business development and corporate communications. ) Tj ET Q q 0 0 0 rg BT 374.41 665.10 Td (All of these functions are aimed at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (strengthening the competitiveness of our solutions in response to evolving industry needs and competitive activities, and at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (articulating the value proposition of our technology throughout the 4G broadband wireless industry) Tj ET Q q 0 0 0 rg BT 445.99 641.10 Td (. Our business development, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (sales and marketing or) Tj ET Q q 0 0 0 rg BT 139.57 629.10 Td (ganizations work closely together to ensure that evolving industry requirements are reflected in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (product plans, and that customers have early access to our roadmaps and can communicate the value of our technology to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (wireless carriers. ) Tj ET Q q 0 0 0 rg BT 119.56 605.10 Td (This end-to-end value chain management approach is designed to grow and preserve our market share in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (segments we serve.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 572.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 572.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 572.10 Td (, we had 40 employees and three outside contractors in our business development, sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (customer support and marketing team.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 517.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 517.10 Td (e maintain relationships with 4G wireless carriers and with OEMs and ODMs who supply devices to those carriers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (their end users. ) Tj ET Q q 0 0 0 rg BT 112.63 505.10 Td (W) Tj ET Q q 0 0 0 rg BT 121.27 505.10 Td (e do not typically sell directly to wireless carriers, except from time to time in the context of selling services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (to enable new technologies or markets being developed by the carrier) Tj ET Q q 0 0 0 rg BT 326.62 493.10 Td (. Our sales are conducted on a purchase order basis with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (OEMs, ODMs, contract manufacturers or system integrators, or to a lesser extent with distributors who provide certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (customer communications, logistics and customer support functions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 448.10 Td (Our top ten customers accounted for 86%, 78% and 86% of our total revenue in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.07 448.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.07 448.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.07 448.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.07 448.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.51 448.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.51 448.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 532.17 448.10 Td (. ) Tj ET Q q 0 0 0 rg BT 536.62 448.10 Td (A) Tj ET Q q 0 0 0 rg BT 542.73 448.10 Td (TM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (Electronic, a distributor serving multiple end customers in China and ) Tj ET Q q 0 0 0 rg BT 327.87 436.10 Td (T) Tj ET Q q 0 0 0 rg BT 333.28 436.10 Td (aiwan, accounted for 16% and 32% of our revenue in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (2017 and 2018, respectively) Tj ET Q q 0 0 0 rg BT 161.60 424.10 Td (, and less than 10% in 2016. Gemtek accounted for 15% in 2016 and less than 10% in 2017 and in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.10 Td (2018.Quanta Computer accounted for 13% of our revenue in 2018 and less than 10% in 2017 and 2016. Comtech, a distributor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.10 Td (serving multiple end customers in China and ) Tj ET Q q 0 0 0 rg BT 230.68 400.10 Td (T) Tj ET Q q 0 0 0 rg BT 236.09 400.10 Td (aiwan, accounted for 29% of our revenue in 2016,17% in 2017 and less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (10% in 2018. ) Tj ET Q q 0 0 0 rg BT 107.93 388.10 Td (The following is a list of our top ten customers, in alphabetical order) Tj ET Q q 0 0 0 rg BT 382.18 388.10 Td (, based on total revenue during 2018:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 362.72 Td () Tj ET Q q 0 0 0 rg BT 90.45 362.72 Td (A) Tj ET Q q 0 0 0 rg BT 96.56 362.72 Td (TM Electronic) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 52.50 356.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 347.72 Td (Comtech) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 52.50 341.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 332.72 Td (Gamma Purchasing LLC Dish) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 52.50 326.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 317.72 Td (Geotab) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 52.50 311.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 302.72 Td (Lockheed Martin) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 362.72 Td (Macnica Galaxy Inc) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 309.50 356.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 347.72 Td (NTT) Tj ET Q q 0 0 0 rg BT 367.26 347.72 Td ( Docomo) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 309.50 341.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 332.72 Td (Quanta Computer) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 309.50 326.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 317.72 Td () Tj ET Q q 0 0 0 rg BT 347.82 317.72 Td (TCL) Tj ET Q q 0 0 0 rg BT 366.34 317.72 Td ( Communications Ltd) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 309.50 311.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 302.72 Td (Zioncom ) Tj ET Q q 0 0 0 rg BT 386.42 302.72 Td (T) Tj ET Q q 0 0 0 rg BT 391.83 302.72 Td (echnology Ltd) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (Manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 250.10 Td (e operate a fabless business model and use third-party foundries and assembly and test contractors to manufacture, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (assemble and test our semiconductor solutions. Our sole foundry vendor is ) Tj ET Q q 0 0 0 rg BT 350.38 238.10 Td (TSMC. In our latest products, we use 65nm and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (40nm standard RF) Tj ET Q q 0 0 0 rg BT 122.59 226.10 Td (, mixed-signal and digital CMOS production processes. ) Tj ET Q q 0 0 0 rg BT 347.10 226.10 Td (The use of these commercially available standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (processes is designed to enable us to produce our products more cost-ef) Tj ET Q q 0 0 0 rg BT 335.63 214.10 Td (fectively and, by migrating to lower process geometries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (we expect to achieve advantages in cost, size and power consumption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 181.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 181.10 Td (e use UT) Tj ET Q q 0 0 0 rg BT 117.44 181.10 Td (AC, ST) Tj ET Q q 0 0 0 rg BT 147.20 181.10 Td (A) Tj ET Q q 0 0 0 rg BT 153.31 181.10 Td (TSchipP) Tj ET Q q 0 0 0 rg BT 186.84 181.10 Td (AC and Silicon Precision Industries for most of our assembly and testing. ) Tj ET Q q 0 0 0 rg BT 483.57 181.10 Td (W) Tj ET Q q 0 0 0 rg BT 492.21 181.10 Td (e rely on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (extensive simulation, practical application and standardized test bed studies to validate and verify our products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 148.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 148.10 Td (e use USI \(Universal Scientific Industrial \(Shanghai\) Company Limited\) and ) Tj ET Q q 0 0 0 rg BT 391.51 148.10 Td (Asiatel ) Tj ET Q q 0 0 0 rg BT 422.16 148.10 Td (T) Tj ET Q q 0 0 0 rg BT 427.57 148.10 Td (echnologies Co. for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 Td (manufacturing of our modules.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 115.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 115.10 Td (e closely monitor the production cycle from wafer to finished goods by reviewing electrical parameters and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td (manufacturing process and test yield data. ) Tj ET Q q 0 0 0 rg BT 220.10 103.10 Td (W) Tj ET Q q 0 0 0 rg BT 228.73 103.10 Td (e also run routine reliability monitoring programs to ensure long term product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (reliability) Tj ET Q q 0 0 0 rg BT 87.73 91.10 Td (. ) Tj ET Q q 0 0 0 rg BT 92.55 91.10 Td (This enables us to operate certain test processes on demand to reduce the time-to-market for our products and to help ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.10 Td (ensure their quality and reliability) Tj ET Q q 0 0 0 rg BT 184.36 79.10 Td (. ) Tj ET Q q 0 0 0 rg BT 189.18 79.10 Td (W) Tj ET Q q 0 0 0 rg BT 197.82 79.10 Td (e are ISO 9001 certified, and all of our major suppliers and subcontractors are required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.10 Td (have quality management systems certified to ISO 9000 and ISO 14000 levels, as well as appropriate environmental control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 55.10 Td (programs.) Tj ET Q endstream endobj 93 0 obj <> endobj 94 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 722.10 Td (e do not have manufacturing agreements with our foundry or with our testing and packaging or module vendors, other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (than a framework agreement with UT) Tj ET Q q 0 0 0 rg BT 199.47 710.10 Td (AC, and we place our orders with our foundry and other vendors on a purchase order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (basis. See Risk FactorsRisks Related to Our Business and Industry.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 672.10 Td (Intellectual Pr) Tj ET Q q 0 0 0 rg BT 110.69 672.10 Td (operty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 651.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 651.10 Td (e rely on a combination of intellectual property rights, or IPR, including patents, trade secrets, copyrights and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (trademarks, and contractual protections, to protect our core technology and intellectual property) Tj ET Q q 0 0 0 rg BT 432.32 639.10 Td (. ) Tj ET Q q 0 0 0 rg BT 436.77 639.10 Td (At December31, 2018, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 Td (37 issued and allowed United States patents, 22 European patents, and 40 pending United States and European patents. ) Tj ET Q q 0 0 0 rg BT 527.82 627.10 Td (The first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (of our issued and allowed patents is not expected to expire until 2025.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 594.10 Td (In addition to our own intellectual property) Tj ET Q q 0 0 0 rg BT 245.58 594.10 Td (, we have also entered into a number of licensing arrangements pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (which we license third-party technologies and intellectual property) Tj ET Q q 0 0 0 rg BT 316.26 582.10 Td (. In particular) Tj ET Q q 0 0 0 rg BT 370.00 582.10 Td (, we have entered into such arrangements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (certain technologies embedded in our semiconductor) Tj ET Q q 0 0 0 rg BT 260.42 570.10 Td (, hardware and software designs. ) Tj ET Q q 0 0 0 rg BT 393.80 570.10 Td (These are typically non-exclusive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (contracts provided under royalty-accruing or paid-up licenses. ) Tj ET Q q 0 0 0 rg BT 300.34 558.10 Td (These licenses are generally perpetual or automatically renewed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (for so long as we continue to pay any royalty that may be due and in the absence of any uncured material breach of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (agreement. Certain licenses for technology used for development of a particular product are for a set term, generally at least two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (years, with a renewal option, and can be easily replaced with other currently available technology in subsequent product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (developments. In the event that such licenses are not renewed, they nevertheless continue with regard to products distributed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (the field. Except for our licenses to the so called essential patents described below) Tj ET Q q 0 0 0 rg BT 385.95 498.10 Td (, we do not believe our business is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (dependent to any significant degree on any individual third-party license.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 465.10 Td (In the past, we have entered into licensing arrangements with respect to so called essential patents that claim features or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 453.10 Td (functions that are incorporated into applicable industry standards and that we are required to provide in order to comply with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.10 Td (the standard. ) Tj ET Q q 0 0 0 rg BT 102.91 441.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.55 441.10 Td (e may be required to enter into such licensing arrangements in the future in order to comply with applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.10 Td (industry standards, in particular with respect to the sales of our module products, which have full L) Tj ET Q q 0 0 0 rg BT 445.15 429.10 Td (TE functionality) Tj ET Q q 0 0 0 rg BT 510.32 429.10 Td (. ) Tj ET Q q 0 0 0 rg BT 515.13 429.10 Td (W) Tj ET Q q 0 0 0 rg BT 523.77 429.10 Td (e believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.10 Td (that general practice in the industry is that essential patent holders) Tj ET Q q 0 0 0 rg BT 315.89 417.10 Td ( licensing policy is to license only to licensees selling a full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 405.10 Td (TE product, not to component vendors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 384.10 Td (In 2015, we entered into an agreement to license the patent portfolio of Gemalto S.A., including at least one patent which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.10 Td (may be considered essential for the L) Tj ET Q q 0 0 0 rg BT 197.97 372.10 Td (TE standard.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (Facilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 329.10 Td (Our principal executive of) Tj ET Q q 0 0 0 rg BT 178.55 329.10 Td (fices are located in Colombes, France, consisting of approximately 21,625 square feet under a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (lease that expires in December 2023, but which may be cancelled in December 2020.) Tj ET Q q 0 0 0 rg BT 392.52 317.10 Td (This facility accommodates our principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (research and development, product marketing, and finance and administrative activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 284.10 Td (e have a 4,236 square-foot facility in ) Tj ET Q q 0 0 0 rg BT 231.35 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 240.38 284.10 Td (innersh ) Tj ET Q q 0 0 0 rg BT 272.14 284.10 Td (T) Tj ET Q q 0 0 0 rg BT 277.90 284.10 Td (riangle, England, which accommodates a research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (center under a lease expiring in October 2020. ) Tj ET Q q 0 0 0 rg BT 236.75 272.10 Td (W) Tj ET Q q 0 0 0 rg BT 245.38 272.10 Td (e have a 1,973 square-foot facility in Petach ) Tj ET Q q 0 0 0 rg BT 423.75 272.10 Td (T) Tj ET Q q 0 0 0 rg BT 429.50 272.10 Td (ikva, Israel, which houses a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (small research and development team, and sales and technical support personnel, under a lease that expires in December 2020.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.70 260.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 248.10 Td (e have a 1,600 square foot of) Tj ET Q q 0 0 0 rg BT 173.75 248.10 Td (fice in Singapore under a lease expiring in February 2020. ) Tj ET Q q 0 0 0 rg BT 408.77 248.10 Td (W) Tj ET Q q 0 0 0 rg BT 417.41 248.10 Td (e have a 2,318 square-foot facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (in Burnsville, Minnesota for engineering personnel under a lease that expires in January 2024. ) Tj ET Q q 0 0 0 rg BT 428.66 236.10 Td (W) Tj ET Q q 0 0 0 rg BT 437.30 236.10 Td (e have a 645 square-foot ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (facility in Kista, Sweden under a lease that expires in ) Tj ET Q q 0 0 0 rg BT 264.16 224.10 Td (April 2020. ) Tj ET Q q 0 0 0 rg BT 312.59 224.10 Td (W) Tj ET Q q 0 0 0 rg BT 321.22 224.10 Td (e rent additional of) Tj ET Q q 0 0 0 rg BT 396.85 224.10 Td (fice space in Sophia-Antipolis, France; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (Salo, Finland; ) Tj ET Q q 0 0 0 rg BT 107.93 212.10 Td (T) Tj ET Q q 0 0 0 rg BT 113.34 212.10 Td (aipei, ) Tj ET Q q 0 0 0 rg BT 137.60 212.10 Td (T) Tj ET Q q 0 0 0 rg BT 143.01 212.10 Td (aiwan; Shanghai and Shenzhen, China; Seoul, South Korea and in Bedminster) Tj ET Q q 0 0 0 rg BT 455.33 212.10 Td (, New Jersey under short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (term lease agreements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 179.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 179.10 Td (e do not own any real property) Tj ET Q q 0 0 0 rg BT 204.23 179.10 Td (. ) Tj ET Q q 0 0 0 rg BT 209.05 179.10 Td (W) Tj ET Q q 0 0 0 rg BT 217.68 179.10 Td (e believe that our leased facilities are adequate to meet our current needs and that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (additional facilities will be available on suitable, commercially reasonable terms to accommodate any future needs.) Tj ET Q endstream endobj 95 0 obj <> endobj 96 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 693.28 Td (C) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.72 693.28 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 693.33 Td (Organizational Structure) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 668.10 Td (The Company is the ultimate parent of the group comprised of the Sequans Communications S.A. and its subsidiaries at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 656.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 625.60 258.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 625.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 625.60 81.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 625.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 625.60 81.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 625.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 625.60 81.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 597.60 258.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 597.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 597.60 81.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 597.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 597.60 81.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 597.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 597.60 81.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 625.6 m 393 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 625.6 m 478 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 625.6 m 563 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 625.6 m 478 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 625.6 m 482 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 625.6 m 563 625.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 629.83 Td (Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.20 637.68 Td (Country of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.40 629.68 Td (incorporation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.70 637.68 Td (Y) Tj ET Q q 0 0 0 rg BT 429.59 637.68 Td (ear) Tj ET Q q 0 0 0 rg BT 440.55 637.68 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.40 629.68 Td (incorporation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.30 637.68 Td (%equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.15 629.68 Td (inter) Tj ET Q q 0 0 0 rg BT 525.44 629.68 Td (est) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 616.17 Td (Sequans Communications Ltd.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.50 616.17 Td (UnitedKingdom) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 616.17 Td (2005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.50 616.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 602.17 Td (Sequans Communications Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.50 602.17 Td (United States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 602.17 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 602.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 588.17 Td (Sequans Communications Ltd. Pte.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.50 588.17 Td (Singapore) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 588.17 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.50 588.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 574.17 Td (Sequans Communications \(Israel\) Ltd.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.50 574.17 Td (Israel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 574.17 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 574.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 541.28 Td (D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.72 541.28 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 541.33 Td (Property) Tj ET Q q 0 0 0 rg BT 117.68 541.33 Td (, Plants and Equipment) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 516.10 Td (For a discussion of property) Tj ET Q q 0 0 0 rg BT 185.06 516.10 Td (, plants and equipment, see Item 4.BBusiness OverviewFacilities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (Item4A. Unr) Tj ET Q q 0 0 0 rg BT 106.25 490.10 Td (esolved Staff Comments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 473.10 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (Item5. Operating and Financial Review and Pr) Tj ET Q q 0 0 0 rg BT 252.09 447.10 Td (ospects) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (Summary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 413.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 413.10 Td (e are a fabless designer) Tj ET Q q 0 0 0 rg BT 174.47 413.10 Td (, developer and supplier of 4G L) Tj ET Q q 0 0 0 rg BT 303.79 413.10 Td (TE semiconductor solutions for wireless broadband ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (applications. Our solutions incorporate baseband processor and RF transceiver ICs along with our proprietary signal processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (techniques, algorithms and software stacks. Our high performance ICs deliver high throughput, low power consumption and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (high reliability in a small form factor and at a low cost.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 356.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 356.10 Td (e shipped 3.2 million semiconductor units during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.00 356.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 356.10 Td (, compared to 3.3 million units during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.16 356.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.16 356.10 Td ( and 2.6 million units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.11 344.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.11 344.10 Td (. Our total revenue was $40.3 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.30 344.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.30 344.10 Td (, $48.3 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.97 344.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.97 344.10 Td ( and $45.6 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.08 344.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.08 344.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 323.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 323.10 Td (e currently have more than 80 end customers worldwide, consisting primarily of OEMs and ODMs for modules, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (telematics devices, tracking devices, security devices, CPE, home routers, mobile routers, embedded devices and other data ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (devices. ) Tj ET Q q 0 0 0 rg BT 84.30 299.10 Td (W) Tj ET Q q 0 0 0 rg BT 92.94 299.10 Td (e derive a significant portion of our revenue from a small number of end customers, and we anticipate that we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (continue to do so for the foreseeable future. ) Tj ET Q q 0 0 0 rg BT 226.20 287.10 Td (W) Tj ET Q q 0 0 0 rg BT 234.84 287.10 Td (e do not have long-term purchase agreements with any of our end customers, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (substantially all of our sales are made on a purchase order basis. ) Tj ET Q q 0 0 0 rg BT 308.40 275.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.04 275.10 Td (e expect that the percentage of revenue derived from each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (end customer may vary significantly due to the order patterns of our end customers, the timing of new product releases by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (end customers, and consumer demand for the products of our end customers.Customers representing more than 10% of total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (revenue in any of the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.01 239.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.01 239.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.01 239.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.01 239.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.34 239.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.34 239.10 Td ( and their locations are as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 185.60 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 99.00 185.60 204.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 185.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 185.60 79.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 185.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 185.60 79.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 185.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 185.60 79.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 157.60 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 99.00 157.60 204.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 157.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 157.60 79.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 157.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 157.60 79.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 157.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 157.60 79.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 197.60000000000002 m 390 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 197.60000000000002 m 469 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 197.60000000000002 m 473 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 197.60000000000002 m 552 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 197.60000000000002 m 386 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 185.60000000000002 m 386 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 185.60000000000002 m 469 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 185.60000000000002 m 552 185.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 201.85 Td (Customer) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.50 201.85 Td (Customer Location) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.55 209.85 Td (% of total revenue for the year ended) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.55 201.85 Td (December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.50 189.55 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 338.00 189.55 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.00 189.55 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 504.00 189.55 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 176.17 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 176.17 Td (T) Tj ET Q q 0 0 0 rg BT 107.26 176.17 Td (aiwan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.55 176.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.80 176.17 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.80 176.17 Td (32%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 162.17 Td (B) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 162.17 Td (China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.55 162.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.60 162.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.80 162.17 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 148.17 Td (C) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 148.17 Td (T) Tj ET Q q 0 0 0 rg BT 106.91 148.17 Td (aiwan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.80 148.17 Td (29%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.80 148.17 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.55 148.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 134.17 Td (D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 134.17 Td (China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.80 134.17 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.55 134.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.55 134.17 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 109.10 Td (Our Consolidated Financial Statements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.08 109.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.08 109.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.08 109.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.08 109.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.52 109.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.52 109.10 Td (, have been prepared in accordance with IFRS as issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.10 Td (by the IASB.) Tj ET Q endstream endobj 97 0 obj <> endobj 98 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (45) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 702.28 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.72 702.28 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 702.33 Td (Operating Results) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 681.10 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 664.10 Td (Our total revenue consists of product revenue and other revenue. ) Tj ET Q q 0 0 0 rg BT 334.61 664.10 Td (The Company recognizes revenue when, or as, it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 652.10 Td (transfers control of promised goods or services to its customers in an amount that reflects the consideration to which it expects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.10 Td (to be entitled to in exchange for those goods and services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 623.10 Td (The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: \(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (identifying the contract with a customer; \(2\) identifying the performance obligations in the contract; \(3\) determining the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (transaction price; \(4\) allocating the transaction price to the performance obligations in the contract; and \(5\) recognizing revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (when the performance obligation is satisfied. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 570.10 Td (When a contract includes multiple promised goods and services, the Company evaluates each component to determine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (whether they represent separate performance obligations and determines the appropriate allocation of the contract consideration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (to each identified performance obligation based on estimated relative stand-alone selling prices.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (Product Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 503.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 503.10 Td (e derive the lar) Tj ET Q q 0 0 0 rg BT 141.64 503.10 Td (ge majority of our revenue from the sale of semiconductor solutions for 4G wireless broadband and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (narrowband applications, and we currently expect to continue to do so for the foreseeable future. Our solutions are sold both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (directly to our end customers and indirectly through distributors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 458.10 Td (Our sales cycles typically take 12 months or more to complete, and our solutions are generally incorporated into our end ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (customers) Tj ET Q q 0 0 0 rg BT 92.63 446.10 Td ( products at the design stage. Prior to an end customer) Tj ET Q q 0 0 0 rg BT 309.34 446.10 Td () Tj ET Q q 0 0 0 rg BT 312.12 446.10 Td (s selection and purchase of our solutions, our sales force and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (applications engineers provide our end customers with technical assistance in the use of our solutions in their products. Once ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (our solution is designed into an end customer) Tj ET Q q 0 0 0 rg BT 231.23 422.10 Td () Tj ET Q q 0 0 0 rg BT 234.01 422.10 Td (s product of) Tj ET Q q 0 0 0 rg BT 281.60 422.10 Td (fering, it becomes more dif) Tj ET Q q 0 0 0 rg BT 389.99 422.10 Td (ficult for a competitor to sell its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (semiconductor solutions to that end customer for that particular product of) Tj ET Q q 0 0 0 rg BT 347.02 410.10 Td (fering given the significant cost, time, ef) Tj ET Q q 0 0 0 rg BT 509.01 410.10 Td (fort and risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (involved in changing suppliers. In addition, once we win a particular design with an end customer) Tj ET Q q 0 0 0 rg BT 440.95 398.10 Td (, we believe our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (penetrate other product families at that end customer increases significantly) Tj ET Q q 0 0 0 rg BT 351.24 386.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 365.10 Td (Our product revenue is also af) Tj ET Q q 0 0 0 rg BT 194.11 365.10 Td (fected by changes in the unit volume and average selling prices, or ) Tj ET Q q 0 0 0 rg BT 462.63 365.10 Td (ASPs, of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (semiconductor solutions. Our products are typically characterized by a life cycle that begins with higher ) Tj ET Q q 0 0 0 rg BT 467.70 353.10 Td (ASPs and lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (volumes as our new products use more advanced designs or technology and are usually incorporated into new devices that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (consumers adopt over a period of time. ) Tj ET Q q 0 0 0 rg BT 208.16 329.10 Td (This is followed by broader market adoption with higher volumes and ) Tj ET Q q 0 0 0 rg BT 490.05 329.10 Td (ASPs that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (lower than initial levels, due to the maturity of the technology) Tj ET Q q 0 0 0 rg BT 296.29 317.10 Td (, greater availability of competing products or less demand as our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (end customers) Tj ET Q q 0 0 0 rg BT 109.57 305.10 Td ( products reach the end of their life cycle.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 284.10 Td (In the second half of 2013, we had initial sales of our module products, which have continued through 2018.) Tj ET Q q 0 0 0 rg BT 509.33 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 517.97 284.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (introduced our modules in order to accelerate market adoption of L) Tj ET Q q 0 0 0 rg BT 317.37 272.10 Td (TE functionality in data devices such as consumer devices ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (and machine-to-machine devices. ) Tj ET Q q 0 0 0 rg BT 185.93 260.10 Td (The ) Tj ET Q q 0 0 0 rg BT 203.42 260.10 Td (ASP) Tj ET Q q 0 0 0 rg BT 221.39 260.10 Td ( of the module is much higher than the ) Tj ET Q q 0 0 0 rg BT 377.75 260.10 Td (ASP) Tj ET Q q 0 0 0 rg BT 395.73 260.10 Td ( of our semiconductor solutions as many ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (other components are added in order to provide a complete L) Tj ET Q q 0 0 0 rg BT 292.94 248.10 Td (TE solution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 227.10 Td (The proportion of our product revenue that is generated from the sale of various products, also referred to as product mix, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 215.10 Td (fects our overall ) Tj ET Q q 0 0 0 rg BT 124.01 215.10 Td (ASP) Tj ET Q q 0 0 0 rg BT 141.24 215.10 Td (, product revenue and profitability) Tj ET Q q 0 0 0 rg BT 277.49 215.10 Td (. Given the varying ) Tj ET Q q 0 0 0 rg BT 356.64 215.10 Td (ASPs of our solutions, any material change in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (product mix may af) Tj ET Q q 0 0 0 rg BT 127.91 203.10 Td (fect our gross mar) Tj ET Q q 0 0 0 rg BT 200.20 203.10 Td (gins and operating results from period to period. ) Tj ET Q q 0 0 0 rg BT 395.81 203.10 Td (W) Tj ET Q q 0 0 0 rg BT 404.45 203.10 Td (e expect to continue to broaden our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (product portfolio by introducing new solutions.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (Other Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 144.10 Td (Other revenue consists of the sale of licenses to use our technology solutions and revenue from associated annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (software maintenance and support services, as well as revenue from technical support services and development services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.10 Td (Development services include advanced technology development services for technology partners and product development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (and integration services for customers, and wireless operators. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 87.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 87.10 Td (e license the right to use our solutions, including embedded software that enables our end customers to customize our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (solutions for use in their products. ) Tj ET Q q 0 0 0 rg BT 188.47 75.10 Td (The license generally is perpetual and covers unlimited product designs by the end customer) Tj ET Q q 0 0 0 rg BT 557.53 75.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 63.10 Td (e expect that we will continue to sign new license agreements as we begin working with new customers, but we do not expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 51.10 Td (that such licenses will generate significant revenues.) Tj ET Q endstream endobj 99 0 obj <> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (Development services agreements typically call for a number of milestones to be delivered over several quarters, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (revenue generally recognized on the percentage of completion method as the contract progresses.) Tj ET Q q 0 0 0 rg BT 440.82 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 449.86 710.10 Td (ith the execution of several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (agreements with lar) Tj ET Q q 0 0 0 rg BT 128.18 698.10 Td (ge companies such as ) Tj ET Q q 0 0 0 rg BT 216.86 698.10 Td (TCL, Gemalto, Lockheed Martin, ) Tj ET Q q 0 0 0 rg BT 354.14 698.10 Td (Thales and others, development service revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (increased in 2016, decreased slightly in 2017 as some lar) Tj ET Q q 0 0 0 rg BT 277.03 686.10 Td (ge contracts from prior years were completed and increased slightly in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 653.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 653.10 Td (ith the continuation in 2019 of many of the development services contracts executed in 2018, as well as our expectation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (that we will continue to enter into similar agreements, we expect other revenue, compared to 2018, to increase slightly in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (periods as we continue to provide services on particularly complex projects, and in the short term it is likely to remain a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (significant percentage of our total revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 596.10 Td (The following table sets forth our total revenue by region for the periods indicated. ) Tj ET Q q 0 0 0 rg BT 407.39 596.10 Td (W) Tj ET Q q 0 0 0 rg BT 416.02 596.10 Td (e categorize our total revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (geographically based on the location to which we invoice.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 537.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 537.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 537.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 537.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 509.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 509.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 509.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 509.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 509.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 509.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 509.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 481.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 481.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 481.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 481.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 453.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 453.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 453.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 453.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 453.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 453.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 453.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 425.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 425.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 425.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 425.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 425.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 425.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 425.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 397.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 397.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 397.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 397.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 397.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 397.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 397.60 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 561.6 m 465 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 561.6 m 469 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 561.6 m 514 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 561.6 m 518 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 561.6 m 563 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 549.6 m 465 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 549.6 m 514 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 549.6 m 563 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 481.6 m 465 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 481.6 m 514 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 481.6 m 563 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 411.6 m 469 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 411.6 m 518 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 411.6 m 465 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 397.6 m 465 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 411.6 m 514 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 397.6 m 514 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 411.6 m 563 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 397.6 m 563 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 384.6 m 465 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 382.6 m 465 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 384.6 m 514 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 382.6 m 514 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 384.6 m 563 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 382.6 m 563 382.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 565.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.60 565.68 Td (Y) Tj ET Q q 0 0 0 rg BT 452.93 565.68 Td (ear) Tj ET Q q 0 0 0 rg BT 463.52 565.68 Td ( ended December) Tj ET Q q 0 0 0 rg BT 522.47 565.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 553.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.95 553.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 446.95 557.31 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.95 553.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 495.95 557.31 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 553.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 541.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.65 541.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 528.17 Td (Asia:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 514.17 Td ( ) Tj ET Q q 0 0 0 rg BT 57.41 514.17 Td (T) Tj ET Q q 0 0 0 rg BT 63.08 514.17 Td (aiwan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 514.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 514.17 Td (5,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 514.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 514.17 Td (8,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 514.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 514.17 Td (16,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 500.17 Td ( China \(including Hong-Kong\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 500.17 Td (24,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 500.17 Td (21,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 500.17 Td (1) Tj ET Q q 0 0 0 rg BT 536.60 500.17 Td (1,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 486.17 Td ( Rest of ) Tj ET Q q 0 0 0 rg BT 88.33 486.17 Td (Asia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 486.17 Td (3,256) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 486.17 Td (2,664) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 486.17 Td (2,172) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 472.17 Td ( ) Tj ET Q q 0 0 0 rg BT 67.41 472.17 Td (T) Tj ET Q q 0 0 0 rg BT 73.08 472.17 Td (otal ) Tj ET Q q 0 0 0 rg BT 89.95 472.17 Td (Asia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 472.17 Td (33,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 472.17 Td (32,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 472.17 Td (30,514) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 458.17 Td (Europe, Middle East, ) Tj ET Q q 0 0 0 rg BT 139.70 458.17 Td (Africa) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 458.17 Td (5,730) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 458.17 Td (5,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 458.17 Td (855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 444.17 Td (Americas:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 430.17 Td ( United States of ) Tj ET Q q 0 0 0 rg BT 124.16 430.17 Td (America) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 430.17 Td (6,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 430.17 Td (7,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 430.17 Td (7,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 416.17 Td ( Rest of ) Tj ET Q q 0 0 0 rg BT 88.33 416.17 Td (Americas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 416.17 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 416.17 Td (2,1) Tj ET Q q 0 0 0 rg BT 500.15 416.17 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 416.17 Td (1,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 402.17 Td ( ) Tj ET Q q 0 0 0 rg BT 69.91 402.17 Td (T) Tj ET Q q 0 0 0 rg BT 75.58 402.17 Td (otal ) Tj ET Q q 0 0 0 rg BT 92.45 402.17 Td (Americas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 402.17 Td (6,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 402.17 Td (10,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 402.17 Td (8,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 388.17 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 388.17 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 388.17 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 388.17 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 388.17 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 369.50 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 369.50 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 369.50 Td (, prior period amounts have not been restated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 348.50 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 348.50 Td (e categorize our total revenue based on technology) Tj ET Q q 0 0 0 rg BT 284.46 348.50 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 302.00 280.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 302.00 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 302.00 73.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 302.00 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 302.00 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 302.00 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 302.00 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 278.00 280.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 278.00 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 278.00 73.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 278.00 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 278.00 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 278.00 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 278.00 74.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 326 m 407 326 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 326 m 407 326 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 314 m 407 314 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 326 m 485 326 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 314 m 485 314 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 326 m 489 326 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 314 m 489 314 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 326 m 563 326 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 314 m 563 314 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 266 m 407 266 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 255 m 407 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 253 m 407 253 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 266 m 485 266 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 255 m 485 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 253 m 485 253 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 266 m 563 266 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 255 m 563 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 253 m 563 253 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.60 330.08 Td (Y) Tj ET Q q 0 0 0 rg BT 409.93 330.08 Td (ear) Tj ET Q q 0 0 0 rg BT 420.52 330.08 Td ( ended December) Tj ET Q q 0 0 0 rg BT 479.47 330.08 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.95 318.08 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 374.95 321.71 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.45 318.08 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 452.45 321.71 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.50 318.08 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.65 306.08 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 292.62 Td (Broadband) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 292.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 292.62 Td (30,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 292.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 292.62 Td (27,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.50 292.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 292.62 Td (1) Tj ET Q q 0 0 0 rg BT 536.65 292.62 Td (1,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 280.62 Td (IOT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 280.62 Td (8,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 280.62 Td (1) Tj ET Q q 0 0 0 rg BT 458.65 280.62 Td (1,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 280.62 Td (19,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 268.62 Td (V) Tj ET Q q 0 0 0 rg BT 59.17 268.62 Td (ertical) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 268.62 Td (7,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 268.62 Td (8,795) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 268.62 Td (8,914) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 256.62 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 256.62 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 256.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 256.62 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 256.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 256.62 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.50 256.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 256.62 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 239.90 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 239.90 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 239.90 Td (, prior period amounts have not been restated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 218.90 Td (Additionally) Tj ET Q q 0 0 0 rg BT 123.40 218.90 Td (, we categorize our total revenue based on product and service revenue including license revenue and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.90 Td (development and other services.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 154.40 279.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 154.40 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 154.40 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 154.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 154.40 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 154.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 154.40 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 126.40 279.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 126.40 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 126.40 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 126.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 126.40 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 126.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 126.40 74.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 182.39999999999998 m 407 182.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 182.39999999999998 m 407 182.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 168.39999999999998 m 407 168.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 182.39999999999998 m 411 182.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 168.39999999999998 m 411 168.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 182.39999999999998 m 485 182.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 168.39999999999998 m 485 168.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 182.39999999999998 m 489 182.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 168.39999999999998 m 489 168.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 182.39999999999998 m 563 182.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 168.39999999999998 m 563 168.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 112.39999999999998 m 407 112.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 99.39999999999998 m 407 99.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 97.39999999999998 m 407 97.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 112.39999999999998 m 485 112.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 99.39999999999998 m 485 99.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 97.39999999999998 m 485 97.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 112.39999999999998 m 563 112.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 99.39999999999998 m 563 99.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 97.39999999999998 m 563 97.39999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.60 186.63 Td (Y) Tj ET Q q 0 0 0 rg BT 409.93 186.63 Td (ear) Tj ET Q q 0 0 0 rg BT 420.52 186.63 Td ( ended December) Tj ET Q q 0 0 0 rg BT 479.47 186.63 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.95 172.63 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 374.95 176.26 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.45 172.63 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 452.45 176.26 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.50 172.63 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.65 158.63 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 144.97 Td (Product) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 144.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 144.97 Td (34,581) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 144.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 144.97 Td (37,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.50 144.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 144.97 Td (28,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 130.97 Td (License) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 130.97 Td (1,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 130.97 Td (2,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 130.97 Td (2,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 116.97 Td (Development and other services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 116.97 Td (9,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 116.97 Td (8,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 116.97 Td (8,605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 102.97 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 102.97 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 102.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 102.97 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 102.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 102.97 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.50 102.97 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 102.97 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 84.30 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 84.30 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 84.30 Td (, prior period amounts have not been restated.) Tj ET Q endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (47) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Cost of Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (Our cost of revenue includes cost of product revenue and cost of other revenue.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 679.25 Td (Cost of Product Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 662.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 662.25 Td ( significant portion of our cost of semiconductor solution product revenue consists of the cost of wafers manufactured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (by third-party foundries and costs associated with assembly and test services. Cost of product revenue is impacted by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (manufacturing variances such as cost and yield for wafer) Tj ET Q q 0 0 0 rg BT 276.79 638.25 Td (, assembly and test operations and package cost. ) Tj ET Q q 0 0 0 rg BT 472.10 638.25 Td (T) Tj ET Q q 0 0 0 rg BT 477.51 638.25 Td (o a lesser extent, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (cost of product revenue includes expenses relating to depreciation of production mask sets, the cost of shipping and logistics, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (royalties, personnel costs, including share-based compensation expense, valuation provisions for excess inventory and warranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 581.25 Td (For our module products, the cost of product revenue includes not only the cost of the semiconductor solution but also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (other components such as power amplifiers and filters, as well as greater packaging costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 548.25 Td (Early in the life cycle of our products, we typically experience lower yields and higher associated costs. Over the life ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (cycle of a particular product, our experience has been that the cost of product revenue has typically declined as volumes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (increase and test operations mature, while ) Tj ET Q q 0 0 0 rg BT 219.16 524.25 Td (ASPs generally decline.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 503.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 503.25 Td (e use third-party foundry) Tj ET Q q 0 0 0 rg BT 181.18 503.25 Td (, assembly and test subcontractors, which are primarily located in ) Tj ET Q q 0 0 0 rg BT 444.99 503.25 Td (Asia, to manufacture, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (package and test our semiconductor solutions. ) Tj ET Q q 0 0 0 rg BT 236.22 491.25 Td (W) Tj ET Q q 0 0 0 rg BT 244.86 491.25 Td (e purchase processed wafers from our fabrication supplier) Tj ET Q q 0 0 0 rg BT 476.31 491.25 Td (, currently ) Tj ET Q q 0 0 0 rg BT 519.72 491.25 Td (TSMC. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 479.25 Td (e also rely on third-party assembly and test subcontractors to assemble, package and test our products, and on third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (logistics specialists for logistics and storage. ) Tj ET Q q 0 0 0 rg BT 229.57 467.25 Td (W) Tj ET Q q 0 0 0 rg BT 238.21 467.25 Td (e generally do not have long-term agreements with our suppliers. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (obligations with our vendors for manufacturing, assembly and testing are generally negotiated on a purchase order basis.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 429.25 Td (Cost of Other Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 412.25 Td (As most of the costs related to other revenueare incurred as part of our normal research and development ef) Tj ET Q q 0 0 0 rg BT 505.65 412.25 Td (forts, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.25 Td (allocate to cost of other revenue only the specific incremental costs related to providing maintenance and technical support and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.25 Td (generating development services revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (Gr) Tj ET Q q 0 0 0 rg BT 61.54 362.25 Td (oss Pr) Tj ET Q q 0 0 0 rg BT 87.19 362.25 Td (ofit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 345.25 Td (Our gross profit is af) Tj ET Q q 0 0 0 rg BT 156.64 345.25 Td (fected by a variety of factors, including our product and revenue mix, the ) Tj ET Q q 0 0 0 rg BT 451.26 345.25 Td (ASPs of our products, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.25 Td (volumes sold, the purchase price of fabricated wafers, assembly and test service costs and royalties, provision for inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.25 Td (valuation char) Tj ET Q q 0 0 0 rg BT 106.24 321.25 Td (ges, and changes in wafer) Tj ET Q q 0 0 0 rg BT 208.85 321.25 Td (, assembly and test yields. ) Tj ET Q q 0 0 0 rg BT 315.60 321.25 Td (W) Tj ET Q q 0 0 0 rg BT 324.24 321.25 Td (e expect our gross profit will fluctuate over time depending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.25 Td (upon competitive pricing pressures, the timing of the introduction of new products, product and revenue mix, volume pricing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.25 Td (variances in manufacturing costs and the level of royalty payments to third parties possessing intellectual property necessary for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.25 Td (our products.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 259.25 Td (Operating Expenses) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (Research and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 225.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 225.25 Td (e engage in substantial research and development ef) Tj ET Q q 0 0 0 rg BT 289.93 225.25 Td (forts to develop new products and integrate additional capabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.25 Td (into our core products. Research and development expense consists primarily of personnel costs, including share-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.25 Td (compensation, for our engineers engaged in design and development of our products and technologies. ) Tj ET Q q 0 0 0 rg BT 462.54 201.25 Td (These expenses also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.25 Td (include the depreciation cost of intellectual property licensed from others for use in our products and depreciation of capitalized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.25 Td (internal development costs, and directly expensed product development costs, which include external engineering services, cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.25 Td (of development software and hardware tools, cost of fabrication of mask sets for prototype products, external laboratory costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.25 Td (for certification procedures, equipment depreciation and facilities expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 132.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 132.25 Td (e expect research and development expense to decrease slightly in the short-term as we complete development of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.25 Td (current L) Tj ET Q q 0 0 0 rg BT 85.51 120.25 Td (TE products in our roadmap and then increase again in the medium-term as we enhance and expand our features and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 108.25 Td (ferings for our product portfolio and continue to develop new products for L) Tj ET Q q 0 0 0 rg BT 362.21 108.25 Td (TE and 5G, which will require additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.25 Td (resources and investments. ) Tj ET Q q 0 0 0 rg BT 161.79 96.25 Td (The decrease expected in the short-term also reflects an expected weakening of the value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.25 Td (euro versus the U.S. dollar which has a significant impact on our R&D headcount expense, as this is concentrated in France.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 63.25 Td (Under IFRS, research and development expense is required to be capitalized if certain criteria are met and then amortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 51.25 Td (over the life of the product. ) Tj ET Q q 0 0 0 rg BT 160.85 51.25 Td (A) Tj ET Q q 0 0 0 rg BT 167.52 51.25 Td ( small amount of development costs was capitalized in 2016 \($22,000\). In 2017, we capitalized ) Tj ET Q endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (costs related to the development of the chipsets for L) Tj ET Q q 0 0 0 rg BT 260.46 722.10 Td (TE Category M, the Monarch and Monarch 2 for an amount of $1.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (million \(net of research tax credit for $0.3 million\); in 2018 we continued to capitalize costs related to Monarch 2 and began ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (capitalizing costs for the L) Tj ET Q q 0 0 0 rg BT 155.21 698.10 Td (TE Category NB Monarch N for a total amount of $3.4 million \(net of research tax credit for $0.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (million\). ) Tj ET Q q 0 0 0 rg BT 89.04 686.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.68 686.10 Td (e expect that we may be able continue to capitalize development costs going forward if the relevant accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (criteria are met.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 648.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 100.90 648.10 Td (ch and Development Incentives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 631.10 Td (In France and the United Kingdom, we receive certain tax incentives based on the qualifying research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.10 Td (expense incurred in those jurisdictions. ) Tj ET Q q 0 0 0 rg BT 208.17 619.10 Td (When the incentive is available only as a reduction of taxes owed, such incentive is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.10 Td (accounted for as a reduction of tax expense; otherwise, it is accounted for as a government grant with the benefit recorded as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (reduction of research and development expense. ) Tj ET Q q 0 0 0 rg BT 244.51 595.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.15 595.10 Td (e expect to be able to continue to qualify for such tax incentives in these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (jurisdictions in future periods. ) Tj ET Q q 0 0 0 rg BT 172.36 583.10 Td (W) Tj ET Q q 0 0 0 rg BT 180.99 583.10 Td (e expect the tax incentives, which are based on a percentage of qualifying research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.10 Td (development expense, to remain fairly stable in the short term. For 2018, we recorded a net amount of approximately $3.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (million in tax incentives compared with $3.3 million in 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 538.10 Td (In France, we also receive incentives in the form of grants from agencies of the French government and the European ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (Union, based on qualifying research and development expense incurred pursuant to collaborative programs carried out with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (other companies and universities. ) Tj ET Q q 0 0 0 rg BT 185.67 514.10 Td (These incentives are recorded as a reduction of research and development expense and are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (recognized when there is a reasonable assurance that the grant will be received, and all relevant conditions will be complied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (with. For 2018, we recorded approximately $1.1 million in grants compared with approximately $3.1 million in 2017. In 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (2017 and 2018, we received $0.6 million, $1.1 million and $1.6 million, respectively) Tj ET Q q 0 0 0 rg BT 388.24 478.10 Td (, in advances on grants and debt financing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (related to a lar) Tj ET Q q 0 0 0 rg BT 106.79 466.10 Td (ge research project funded by the French government, called FELIN. ) Tj ET Q q 0 0 0 rg BT 384.83 466.10 Td (The total value of the project funding to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (date for the Company is 7.0 million \($9.0 million\) and was to be received over three years but due to a re-negotiation of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (project, payment was extended with final payment received in March 2019. Of the 7.0 million, 3.0 million is in the form of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (grant and 4.0 million is in the form of interest-bearing debt to be repaid beginning in 2019 and through 2022. ) Tj ET Q q 0 0 0 rg BT 493.12 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 501.76 430.10 Td (e expect that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (the amounts we recognize from such grants overall will decrease in 2019. In 2016 and 2017, we received $0.4 million and $1.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (million, respectively) Tj ET Q q 0 0 0 rg BT 131.05 406.10 Td (, in advances on grants and debt financing related to a second lar) Tj ET Q q 0 0 0 rg BT 389.39 406.10 Td (ge research project funded by the French ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (government, called L) Tj ET Q q 0 0 0 rg BT 133.83 394.10 Td (TE4PMR. ) Tj ET Q q 0 0 0 rg BT 176.99 394.10 Td (The total value of the project funding for the Company is 2.1 million \($2.3 million\) to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (received over four years. Of the 2.1 million, 0.7 million is in the form of a grant and 1.4 million is in the form of interest-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (bearing debt to be repaid beginning in 2020 and through 2024. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (Sales and Marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 327.10 Td (Sales and marketing expense consists primarily of personnel costs, including sales commissions, and share-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (compensation for our business development, sales, customer support and marketing personnel, commissions paid to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (independent sales agents, marketing fees paid to industrial partners, the costs of advertising and participation in trade shows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.70 303.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 291.10 Td (e expect the size of our business development, sales and marketing or) Tj ET Q q 0 0 0 rg BT 336.20 291.10 Td (ganization to decrease slightly in 2019 and expect sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (and marketing expense to decrease slightly) Tj ET Q q 0 0 0 rg BT 220.74 279.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (General and ) Tj ET Q q 0 0 0 rg BT 103.02 253.10 Td (Administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 236.10 Td (General and administrative expense consists primarily of personnel costs and share-based compensation for our finance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (human resources, purchasing, quality and administrative personnel; professional services costs related to recruiting, accounting, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (tax and legal services; bad debt expense, investor relations costs; insurance; and depreciation.Information technology and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (facilities expenses are accounted for as overhead and allocated across all departments of the Company based on a pro rata basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 188.10 Td (e expect general and administrative expense to decrease slightly in 2019.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 70.98 162.10 Td (est Income \(Expense\), Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 145.10 Td (Interest income consists of interest earned on cash and cash equivalent balances. ) Tj ET Q q 0 0 0 rg BT 397.37 145.10 Td (W) Tj ET Q q 0 0 0 rg BT 406.00 145.10 Td (e have historically invested our cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (primarily in commercial bank accounts, short term deposits and money market funds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 112.10 Td (Interest expense relates to our convertible debt issued in 2015, 2016 and 2018; our venture debt issued to Harbert ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (European Specialty Lending Company II S.a.r) Tj ET Q q 0 0 0 rg BT 234.18 100.10 Td (.l in 2018; our government debt put in place in 2015; our accounts receivable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.10 Td (financing facility put in place in 2014; and research project loans received from 2014 to 2018.) Tj ET Q endstream endobj 105 0 obj <> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Change in Fair) Tj ET Q q 0 0 0 rg BT 113.77 722.25 Td ( ) Tj ET Q q 0 0 0 rg BT 116.09 722.25 Td (V) Tj ET Q q 0 0 0 rg BT 122.39 722.25 Td (alue of Convertible Debt Embedded Derivative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 705.25 Td (April 2015, we issued convertible debt.) Tj ET Q q 0 0 0 rg BT 243.56 705.25 Td (The option component of this convertible debt was recorded as an embedded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (derivative at fair value) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 139.73 693.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.23 693.25 Td ( ) Tj ET Q q 0 0 0 rg BT 144.18 693.25 Td (As long as the conversion price was subject to change, the embedded derivative was revalued at each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (balance sheet date, with the change in value recorded in financial income \(expense\). ) Tj ET Q q 0 0 0 rg BT 388.33 681.25 Td (The embedded derivative value was fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (in ) Tj ET Q q 0 0 0 rg BT 59.23 669.25 Td (April 2016 when the conversion price was no longer subject to change and the fair value of the embedded derivative at that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (date was transferred from liabilities to shareholder) Tj ET Q q 0 0 0 rg BT 251.46 657.25 Td () Tj ET Q q 0 0 0 rg BT 254.24 657.25 Td (s equity) Tj ET Q q 0 0 0 rg BT 284.98 657.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 640.25 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 640.25 Td (April 2016, we issued convertible debt.) Tj ET Q q 0 0 0 rg BT 243.56 640.25 Td (The option component of this convertible debt was recorded as an embedded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.25 Td (derivative at fair value at the issuance date with the change in value recorded in financial income \(expense\) until the conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.25 Td (price was fixed on May 12, 2016) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 181.41 616.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.91 616.25 Td ( ) Tj ET Q q 0 0 0 rg BT 185.86 616.25 Td (At that date, the fair value of the embedded derivative was transferred from liabilities to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (shareholder) Tj ET Q q 0 0 0 rg BT 96.52 604.25 Td () Tj ET Q q 0 0 0 rg BT 99.29 604.25 Td (s equity) Tj ET Q q 0 0 0 rg BT 130.03 604.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (Convertible debt amendments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 552.25 Td (On October 30, 2017, the convertibles notes were amended to extend the term of the notes and reduce the conversion rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.25 Td (for one convertible debt agreement. ) Tj ET Q q 0 0 0 rg BT 194.26 540.25 Td (The change in fair value of the conversion options before and after the amendment has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.25 Td (recorded in Other Capital Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 255.91 528.25 Td ( equity) Tj ET Q q 0 0 0 rg BT 282.75 528.25 Td (. ) Tj ET Q q 0 0 0 rg BT 287.57 528.25 Td (The debt components on October 30, 2017 have been re-measured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.25 Td (based on the extended term of the notes using the ef) Tj ET Q q 0 0 0 rg BT 257.03 516.25 Td (fective interest rate calculated at the date of issue of each convertible note. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.25 Td (The impact of the term extension and reduction of the conversion rate has been recorded in the Consolidated Statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.25 Td (Operations in "Convertible debt amendments" for a loss of $322,000.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 466.25 Td (On September 27, 2018, the convertible notes issued in 2015 were amended to extend the term of the notes and reduce the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (conversion rate for the 2015 convertible debt agreement. ) Tj ET Q q 0 0 0 rg BT 278.40 454.25 Td (The fair value of the debt just prior to amendment was estimated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (order to record a loss on extinguishment of $265,000 recorded as Convertible debt amendments in the Consolidated Statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (of Operations. ) Tj ET Q q 0 0 0 rg BT 111.53 430.25 Td (The new debt was then recorded at its fair value assuming a market rate of interest, with the calculated value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (the conversion option of $4,559,000 with the net change in the value upon amendment of $3,788,000 recorded in Other Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 151.50 406.25 Td ( equity) Tj ET Q q 0 0 0 rg BT 178.35 406.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 380.25 Td (In addition, all of the convertible notes issued in 2015 and convertible notes with a principal amount of $6 million issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (in 2016 were amended to allow the convertible notes to be subordinated to new debt to be issued by the Company) Tj ET Q q 0 0 0 rg BT 504.30 368.25 Td (. ) Tj ET Q q 0 0 0 rg BT 511.62 368.25 Td (The holder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (of the remaining convertible notes issued in 2016 with a principal value of $1 million did not agree to amend the terms and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (therefore the Company redeemed the principal and accrued interest in October 2018. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (For) Tj ET Q q 0 0 0 rg BT 64.87 318.25 Td (eign Exchange Gain \(Loss\), Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 301.25 Td (Foreign exchange gain \(loss\) represents exchange gains and losses on our exposures to non-U.S. dollar denominated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (transactions, primarily associated with the changes in exchange rates between the U.S. dollar and the euro, and re-measurement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.25 Td (of foreign currency balances at reporting date. ) Tj ET Q q 0 0 0 rg BT 236.08 277.25 Td (As a result of our international operations, we are subject to risks associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.25 Td (foreign currency fluctuations. ) Tj ET Q q 0 0 0 rg BT 170.01 265.25 Td (Almost all of our revenues are in U.S. dollars and a portion of our expenses are also in U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (dollars. However) Tj ET Q q 0 0 0 rg BT 117.97 253.25 Td (, a significant portion of our personnel costs is in euros and some long-term items on our balance sheet are also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.25 Td (denominated in euros. ) Tj ET Q q 0 0 0 rg BT 140.41 241.25 Td (W) Tj ET Q q 0 0 0 rg BT 149.05 241.25 Td (e use hedging instruments in order to reduce volatility in operating expenses related to exchange rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.25 Td (fluctuations. ) Tj ET Q q 0 0 0 rg BT 101.53 229.25 Td (W) Tj ET Q q 0 0 0 rg BT 110.17 229.25 Td (e classify foreign exchange gains and losses related to hedges of euro-based operating expenses as operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (expenses.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 191.25 Td (Income ) Tj ET Q q 0 0 0 rg BT 83.48 191.25 Td (T) Tj ET Q q 0 0 0 rg BT 89.23 191.25 Td (ax Expense \(Benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 174.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 174.25 Td (e are subject to income taxes in France, the United States and numerous other jurisdictions. During the ordinary course ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.25 Td (of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. ) Tj ET Q q 0 0 0 rg BT 493.25 162.25 Td (As a result, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (recognize tax liabilities based on estimates of whether additional taxes will be due. ) Tj ET Q q 0 0 0 rg BT 383.10 150.25 Td (These tax liabilities are recognized when we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td (believe that certain positions may not be fully sustained upon review by tax authorities, notwithstanding our belief that our tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (return positions are supportable. Our ef) Tj ET Q q 0 0 0 rg BT 206.50 126.25 Td (fective tax rates dif) Tj ET Q q 0 0 0 rg BT 283.22 126.25 Td (fer from the statutory rate primarily due to any valuation allowance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.25 Td (the tax impact of local taxes, international operations, research and development tax credits, tax audit settlements, non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.25 Td (deductible compensation, and transfer pricing adjustments. In respect of our subsidiaries outside of France, we operate on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.25 Td (cost plus basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 69.25 Td (In France, we have significant net deferred tax assets resulting from net operating loss carry forwards, tax credit carry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 57.25 Td (forwards and deductible temporary dif) Tj ET Q q 0 0 0 rg BT 203.15 57.25 Td (ferences that reduce our taxable income. Our ability to realize our deferred tax assets ) Tj ET Q endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (depends on our ability to generate suf) Tj ET Q q 0 0 0 rg BT 199.83 722.10 Td (ficient taxable income within the carry back or carry forward periods provided for in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (tax law for each applicable tax jurisdiction. Following the issuance of convertible debts and debt with warrants attached, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (have deferred tax liabilities resulting from the bifurcation of the conversion feature and warrants from the debts. ) Tj ET Q q 0 0 0 rg BT 500.27 698.10 Td (The deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (tax liabilities have allowed us to recognize deferred tax assets, subject to certain limitations on their use under French tax law) Tj ET Q q 0 0 0 rg BT 550.63 686.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (In 2018, $1,818,000 was recognized as deferred tax liabilities through shareholders) Tj ET Q q 0 0 0 rg BT 385.05 674.10 Td ( equity \(deficit\) under IAS 12, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 508.63 674.10 Td (Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.14 662.10 Td (axes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.91 662.10 Td ( Deferred tax assets of $1,162,000 were recognized through income tax benefit on our consolidated statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (operations. Over time, as we generate taxable income, we expect our tax rate to increase significantly) Tj ET Q q 0 0 0 rg BT 454.24 650.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 624.10 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 624.10 Td (Accounting Policies and Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 607.10 Td (The discussion and analysis of our financial condition and results of operations is based on our Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (Statements contained elsewhere in this annual report, which are prepared in accordance with IFRS as described in Note 2 to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (Consolidated Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 562.10 Td (Some of the accounting methods and policies used in preparing our Consolidated Financial Statements under IFRS are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (based on complex and subjective assessments by our management or on estimates based on past experience and assumptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (deemed realistic and reasonable based on the circumstances concerned. ) Tj ET Q q 0 0 0 rg BT 336.97 538.10 Td (The actual value of our assets, liabilities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (shareholders) Tj ET Q q 0 0 0 rg BT 102.63 526.10 Td ( equity and of our earnings could dif) Tj ET Q q 0 0 0 rg BT 248.24 526.10 Td (fer from the value derived from these estimates if conditions changed and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (these changes had an impact on the assumptions adopted. ) Tj ET Q q 0 0 0 rg BT 281.48 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 290.12 514.10 Td (e believe that the most significant management judgments and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (assumptions in the preparation of our financial statements are described below) Tj ET Q q 0 0 0 rg BT 362.64 502.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 459.10 Td (Through December 31, 2017, our policy for revenue recognition, in instances where multiple deliverables are sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (contemporaneously to the same counterparty) Tj ET Q q 0 0 0 rg BT 228.24 447.10 Td (, was in accordance with IAS 18.13. ) Tj ET Q q 0 0 0 rg BT 375.24 447.10 Td (When we entered into contracts for the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (products, licenses and maintenance and support and development services, we evaluated all deliverables in the arrangement to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (determine whether they represented separate units of accounting, each with its own separate earnings process, and their relative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (fair value. Such determination required judgment and was based on an analysis of the facts and circumstances surrounding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (transactions. ) Tj ET Q q 0 0 0 rg BT 102.08 399.10 Td (W) Tj ET Q q 0 0 0 rg BT 110.72 399.10 Td (e applied judgment for contracts when the first year of maintenance was included in the software license price. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (For such contracts, an amount equal to the relative fair value of one year of maintenance was deducted from the value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (license and recognized as revenue over the period of maintenance. ) Tj ET Q q 0 0 0 rg BT 317.25 375.10 Td (The dif) Tj ET Q q 0 0 0 rg BT 346.22 375.10 Td (ference between license and maintenance services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (invoiced and the amount recognized in revenue was recorded as deferred revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 342.10 Td (In accordance with IAS 18, revenue from technical support and development services was generally recognized using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (percentage-of-completion method when the outcome of the contract could be estimated reliably) Tj ET Q q 0 0 0 rg BT 431.20 330.10 Td (. ) Tj ET Q q 0 0 0 rg BT 436.02 330.10 Td (This occurs when total contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (revenue and costs can be estimated reliably) Tj ET Q q 0 0 0 rg BT 222.11 318.10 Td (, and it is probable that the economic benefits associated with the contract will flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (to the Company and the stage of contract completion can be measured. Estimating the cost to complete the services requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (judgment. ) Tj ET Q q 0 0 0 rg BT 92.09 294.10 Td (W) Tj ET Q q 0 0 0 rg BT 100.73 294.10 Td (e based our estimate on the estimated hours and level of engineer to complete the project, plus any external costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (required to perform the services. In certain circumstances, revenue was recognized based on the achievement of contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (milestones. ) Tj ET Q q 0 0 0 rg BT 97.09 270.10 Td (W) Tj ET Q q 0 0 0 rg BT 105.73 270.10 Td (e recognized revenue on milestones when the milestone was substantive based on technical merits, and we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (obtained customer acceptance that the milestone had been achieved. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 237.20 Td (Ef) Tj ET Q q 0 0 0 rg BT 78.76 237.20 Td (fective January 1, 2018, we adopted IFRS 15, Revenue from Contracts with Customers, with modified retrospective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.20 Td (application approach, meaning that the ef) Tj ET Q q 0 0 0 rg BT 214.81 225.20 Td (fect of adoption recorded in opening retained deficit. Upon the adoption of the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.20 Td (guidance, arrangements with customers are considered contracts if all the following criteria are met: \(a\) parties have approved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.20 Td (the contract and are committed to perform their respective obligations; \(b\) each party) Tj ET Q q 0 0 0 rg BT 392.70 201.20 Td (s rights regarding the goods or services to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.20 Td (be transferred can be identified; \(c\) payment terms related to the goods or services to be transferred can be identified; \(d\) the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.20 Td (contract has commercial substance and \(e\) collectability of substantially all of the consideration is probable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 156.20 Td (The standard) Tj ET Q q 0 0 0 rg BT 128.20 156.20 Td (s core principle is that an entity should recognize revenue when it transfers promised goods or services to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.20 Td (customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.20 Td (services. ) Tj ET Q q 0 0 0 rg BT 86.53 132.20 Td (The standard creates a five-step model to achieve its core principle: \(i\) identify the contract\(s\) with a customer; \(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.20 Td (identify the performance obligations in the contract; \(iii\) determine the transaction price; \(iv\) allocate the transaction price to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.20 Td (the separate performance obligations in the contract; and \(v\) recognize revenue when \(or as\) the entity satisfies a performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.20 Td (obligation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 77.90 Td (Our ) Tj ET Q q 0 0 0 rg BT 90.79 77.90 Td (contracts ) Tj ET Q q 0 0 0 rg BT 128.62 77.90 Td (with ) Tj ET Q q 0 0 0 rg BT 148.13 77.90 Td (customers ) Tj ET Q q 0 0 0 rg BT 190.41 77.90 Td (often ) Tj ET Q q 0 0 0 rg BT 212.69 77.90 Td (include ) Tj ET Q q 0 0 0 rg BT 243.86 77.90 Td (promises ) Tj ET Q q 0 0 0 rg BT 281.70 77.90 Td (to ) Tj ET Q q 0 0 0 rg BT 291.22 77.90 Td (transfer ) Tj ET Q q 0 0 0 rg BT 323.49 77.90 Td (multiple ) Tj ET Q q 0 0 0 rg BT 358.55 77.90 Td (products ) Tj ET Q q 0 0 0 rg BT 394.73 77.90 Td (and/or ) Tj ET Q q 0 0 0 rg BT 422.01 77.90 Td (services ) Tj ET Q q 0 0 0 rg BT 455.95 77.90 Td (to ) Tj ET Q q 0 0 0 rg BT 465.46 77.90 Td (a ) Tj ET Q q 0 0 0 rg BT 471.64 77.90 Td (customer) Tj ET Q q 0 0 0 rg BT 507.74 77.90 Td (. ) Tj ET Q q 0 0 0 rg BT 511.98 77.90 Td (Determining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.90 Td (whether ) Tj ET Q q 0 0 0 rg BT 85.07 65.90 Td (products ) Tj ET Q q 0 0 0 rg BT 122.87 65.90 Td (and ) Tj ET Q q 0 0 0 rg BT 140.67 65.90 Td (services ) Tj ET Q q 0 0 0 rg BT 176.23 65.90 Td (are ) Tj ET Q q 0 0 0 rg BT 191.80 65.90 Td (considered ) Tj ET Q q 0 0 0 rg BT 238.48 65.90 Td (distinct ) Tj ET Q q 0 0 0 rg BT 271.28 65.90 Td (performance ) Tj ET Q q 0 0 0 rg BT 325.17 65.90 Td (obligations ) Tj ET Q q 0 0 0 rg BT 372.97 65.90 Td (that ) Tj ET Q q 0 0 0 rg BT 391.33 65.90 Td (should ) Tj ET Q q 0 0 0 rg BT 421.36 65.90 Td (be ) Tj ET Q q 0 0 0 rg BT 434.16 65.90 Td (accounted ) Tj ET Q q 0 0 0 rg BT 478.05 65.90 Td (for ) Tj ET Q q 0 0 0 rg BT 493.07 65.90 Td (separately ) Tj ET Q q 0 0 0 rg BT 536.96 65.90 Td (versus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.90 Td (together ) Tj ET Q q 0 0 0 rg BT 84.77 53.90 Td (may ) Tj ET Q q 0 0 0 rg BT 104.50 53.90 Td (require ) Tj ET Q q 0 0 0 rg BT 135.33 53.90 Td (significant ) Tj ET Q q 0 0 0 rg BT 180.05 53.90 Td (judgment. ) Tj ET Q q 0 0 0 rg BT 222.84 53.90 Td (Judgment ) Tj ET Q q 0 0 0 rg BT 264.24 53.90 Td (is ) Tj ET Q q 0 0 0 rg BT 273.42 53.90 Td (also ) Tj ET Q q 0 0 0 rg BT 292.04 53.90 Td (required ) Tj ET Q q 0 0 0 rg BT 327.86 53.90 Td (to ) Tj ET Q q 0 0 0 rg BT 338.15 53.90 Td (determine ) Tj ET Q q 0 0 0 rg BT 380.64 53.90 Td (the ) Tj ET Q q 0 0 0 rg BT 395.37 53.90 Td (stand-alone ) Tj ET Q q 0 0 0 rg BT 443.98 53.90 Td (selling ) Tj ET Q q 0 0 0 rg BT 473.15 53.90 Td (price ) Tj ET Q q 0 0 0 rg BT 495.65 53.90 Td (\(SSP"\) ) Tj ET Q q 0 0 0 rg BT 530.03 53.90 Td (for ) Tj ET Q q 0 0 0 rg BT 544.20 53.90 Td (each ) Tj ET Q endstream endobj 109 0 obj <> endobj 110 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (distinct ) Tj ET Q q 0 0 0 rg BT 81.98 722.10 Td (performance ) Tj ET Q q 0 0 0 rg BT 135.54 722.10 Td (obligation. ) Tj ET Q q 0 0 0 rg BT 181.63 722.10 Td (In ) Tj ET Q q 0 0 0 rg BT 192.99 722.10 Td (instances ) Tj ET Q q 0 0 0 rg BT 232.68 722.10 Td (where ) Tj ET Q q 0 0 0 rg BT 260.15 722.10 Td (SSP) Tj ET Q q 0 0 0 rg BT 276.46 722.10 Td ( ) Tj ET Q q 0 0 0 rg BT 279.50 722.10 Td (is ) Tj ET Q q 0 0 0 rg BT 289.20 722.10 Td (not ) Tj ET Q q 0 0 0 rg BT 305.02 722.10 Td (directly ) Tj ET Q q 0 0 0 rg BT 338.60 722.10 Td (observable, ) Tj ET Q q 0 0 0 rg BT 387.45 722.10 Td (such ) Tj ET Q q 0 0 0 rg BT 408.81 722.10 Td (as ) Tj ET Q q 0 0 0 rg BT 420.18 722.10 Td (when ) Tj ET Q q 0 0 0 rg BT 444.88 722.10 Td (we ) Tj ET Q q 0 0 0 rg BT 459.57 722.10 Td (do ) Tj ET Q q 0 0 0 rg BT 472.61 722.10 Td (not ) Tj ET Q q 0 0 0 rg BT 488.42 722.10 Td (sell ) Tj ET Q q 0 0 0 rg BT 505.35 722.10 Td (the ) Tj ET Q q 0 0 0 rg BT 520.60 722.10 Td (product ) Tj ET Q q 0 0 0 rg BT 554.18 722.10 Td (or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (service ) Tj ET Q q 0 0 0 rg BT 80.32 710.10 Td (separately) Tj ET Q q 0 0 0 rg BT 120.20 710.10 Td (, ) Tj ET Q q 0 0 0 rg BT 125.20 710.10 Td (we ) Tj ET Q q 0 0 0 rg BT 139.36 710.10 Td (determine ) Tj ET Q q 0 0 0 rg BT 181.84 710.10 Td (the ) Tj ET Q q 0 0 0 rg BT 196.56 710.10 Td (SSP) Tj ET Q q 0 0 0 rg BT 212.87 710.10 Td ( ) Tj ET Q q 0 0 0 rg BT 215.37 710.10 Td (using ) Tj ET Q q 0 0 0 rg BT 239.54 710.10 Td (information ) Tj ET Q q 0 0 0 rg BT 289.25 710.10 Td (that ) Tj ET Q q 0 0 0 rg BT 306.75 710.10 Td (may ) Tj ET Q q 0 0 0 rg BT 326.46 710.10 Td (include ) Tj ET Q q 0 0 0 rg BT 358.40 710.10 Td (market ) Tj ET Q q 0 0 0 rg BT 388.66 710.10 Td (conditions ) Tj ET Q q 0 0 0 rg BT 432.83 710.10 Td (and ) Tj ET Q q 0 0 0 rg BT 449.76 710.10 Td (other ) Tj ET Q q 0 0 0 rg BT 472.81 710.10 Td (observable ) Tj ET Q q 0 0 0 rg BT 518.63 710.10 Td (inputs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 690.70 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 690.70 Td (e recognize revenue when we satisfy the performance obligation by transferring the control over a product to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.70 Td (customer) Tj ET Q q 0 0 0 rg BT 85.60 678.70 Td (. Judgment is required to assess the pattern of transfer of control, in particular with regards to products) Tj ET Q q 0 0 0 rg BT 497.80 678.70 Td ( sales to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.70 Td (distributors and the rendering of services. ) Tj ET Q q 0 0 0 rg BT 217.88 666.70 Td (Where we render services to the customers, they usually correspond to a single ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.70 Td (performance obligation which is satisfied over time, which are accounted for using the percentage-of-completion method, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.70 Td (electing an input method of estimated costs as a measure of performance completed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 623.30 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 623.30 Td (e rely on estimates around the total estimated costs to complete the contract \(Estimated Costs at Completion\). ) Tj ET Q q 0 0 0 rg BT 531.28 623.30 Td (T) Tj ET Q q 0 0 0 rg BT 536.69 623.30 Td (otal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.30 Td (Estimated Costs at Completion include direct labor) Tj ET Q q 0 0 0 rg BT 253.50 611.30 Td (, material and subcontracting costs. Due to the nature of the ef) Tj ET Q q 0 0 0 rg BT 501.85 611.30 Td (forts required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.30 Td (to be performed to meet the underlying performance obligation, determining Estimated Costs at Completion is subject to many ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.30 Td (variables. Management quarterly reviews the progress and performance of open contracts in order to determine the best ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.30 Td (estimate of Estimated Costs at Completion. ) Tj ET Q q 0 0 0 rg BT 224.76 575.30 Td (As part of this process, management reviews information including, but not limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.30 Td (to, any outstanding key contract matters, progress towards completion, the project schedule, identified risks and opportunities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.30 Td (and the related changes in estimates of costs. ) Tj ET Q q 0 0 0 rg BT 231.20 551.30 Td (The risks and opportunities include management) Tj ET Q q 0 0 0 rg BT 428.66 551.30 Td (s judgment about the ability and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.30 Td (cost to achieve the project schedule, technical requirements, and other contract.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 507.90 Td (T) Tj ET Q q 0 0 0 rg BT 55.24 507.90 Td (rade receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 487.00 Td (W) Tj ET Q q 0 0 0 rg BT 78.14 487.00 Td (e maintain an allowance for doubtful accounts for potential estimated losses resulting from our customers) Tj ET Q q 0 0 0 rg BT 502.83 487.00 Td ( inability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.00 Td (make required payments. Impairment losses on trade accounts receivable are estimated using the expected loss method, in order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.00 Td (to take into account the risk of payment default throughout the lifetime of the receivables. Based on an analysis of historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.00 Td (credit losses, we have not applied any expected credit losses to our outstanding receivables as of the reporting date beyond ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.00 Td (specific provisions for doubtful accounts. If we receive information that the financial condition of our customers has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.00 Td (deteriorated, resulting in an impairment of their ability to make payments, or there are indicators that amounts receivable will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.00 Td (become uncollectible, additional allowances could be required) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.12 415.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.12 415.00 Td ( ) Tj ET Q q 0 0 0 rg BT 303.44 415.00 Td (W) Tj ET Q q 0 0 0 rg BT 312.08 415.00 Td (e record an allowance for any specific account we consider as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.00 Td (doubtful based on the particular circumstances of the account. ) Tj ET Q q 0 0 0 rg BT 299.78 403.00 Td (The carrying amount of the receivable is thus reduced through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.00 Td (the use of an allowance account, and the amount of the char) Tj ET Q q 0 0 0 rg BT 288.67 391.00 Td (ge is recognized in the Consolidated Statement of Operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.00 Td (Subsequent recoveries, if any) Tj ET Q q 0 0 0 rg BT 166.59 379.00 Td (, of amounts previously provided for are credited against the same line in the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.00 Td (Statement of Operations. ) Tj ET Q q 0 0 0 rg BT 151.52 367.00 Td (When a trade accounts receivable is uncollectible, it is written-of) Tj ET Q q 0 0 0 rg BT 411.23 367.00 Td (f against the allowance account for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.00 Td (trade accounts receivable. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 329.00 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 312.00 Td (Inventories consist primarily of the cost of semiconductors, including wafer fabrication, assembly) Tj ET Q q 0 0 0 rg BT 464.13 312.00 Td (, testing and packaging; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.00 Td (components; and modules purchased from subcontractors.) Tj ET Q q 0 0 0 rg BT 284.54 300.00 Td (W) Tj ET Q q 0 0 0 rg BT 293.18 300.00 Td (e write down the carrying value of our inventories to the lower of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.00 Td (cost \(determined using the moving average method\) or net realizable value \(estimated market value less estimated costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.00 Td (completion and the estimated costs necessary to make the sale\). ) Tj ET Q q 0 0 0 rg BT 306.18 276.00 Td (W) Tj ET Q q 0 0 0 rg BT 314.82 276.00 Td (e write down the carrying value of our inventory for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.00 Td (estimated amounts related to lower of cost or net realizable value, obsolescence or unmarketable inventory equal to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.00 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 252.00 Td (ference between the cost of inventory and the estimated net realizable value. ) Tj ET Q q 0 0 0 rg BT 368.16 252.00 Td (The estimated net realizable value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.00 Td (inventory is based on historical usage and assumptions about future demand, future product purchase commitments, estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.00 Td (manufacturing yield levels and market conditions on a product-by-product basis. Once established, inventory reserves are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.00 Td (reversed until the related inventory has been sold or scrapped. ) Tj ET Q q 0 0 0 rg BT 299.14 216.00 Td (Actual demand may dif) Tj ET Q q 0 0 0 rg BT 393.09 216.00 Td (fer from forecasted demand and these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.00 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 204.00 Td (ferences may have a material ef) Tj ET Q q 0 0 0 rg BT 187.11 204.00 Td (fect on recorded inventory values and cost of revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 183.00 Td (When we consider future demand for a product, there are a number of factors that we take into consideration, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.00 Td (purchase orders and forecasts from customers, which in normal market conditions give us visibility for the next three months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.00 Td (and some view on the following three months, our own internal projections based on customer inputs and new business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.00 Td (opportunities, and estimates of market potential based on reports from industry analysts. ) Tj ET Q q 0 0 0 rg BT 404.80 147.00 Td (The time horizon considered for future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.00 Td (demand varies depending on the nature of the product, meaning we consider if the product is newly-introduced or approaching ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.00 Td (end-of-life, if the product is in finished good form or in component form, and if the product is incorporated in a lar) Tj ET Q q 0 0 0 rg BT 507.81 123.00 Td (ge or small ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.00 Td (number of dif) Tj ET Q q 0 0 0 rg BT 104.30 111.00 Td (ferent end-user products from few or many customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 90.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 90.00 Td (e evaluate the realizability of our inventory at each balance sheet date. In doing so, we consider) Tj ET Q q 0 0 0 rg BT 463.25 90.00 Td (, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.00 Td (demand indicated by our customers, overall market potential based on input from operators and analysts, and the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.00 Td (estimated commercial life of our products.) Tj ET Q endstream endobj 111 0 obj <> endobj 112 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (In 2016, 2017 and 2018, we recorded provisions for slow-moving L) Tj ET Q q 0 0 0 rg BT 344.20 722.10 Td (TE inventory totaling $0.1 million, $0.2 million and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td ($0.2 million, respectively) Tj ET Q q 0 0 0 rg BT 151.05 710.10 Td (. In 2017, all the ) Tj ET Q q 0 0 0 rg BT 218.91 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 227.95 710.10 Td (iMAX inventory) Tj ET Q q 0 0 0 rg BT 294.24 710.10 Td (, fully depreciated in previous years, was physically scrapped, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (resulting in a provision reversal of $2.8 million. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 672.10 Td (Share-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 651.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 651.10 Td (e have various share-based compensation plans for employees and non-employees. ) Tj ET Q q 0 0 0 rg BT 416.01 651.10 Td (The expense recorded in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (statement of operations for equity awards under these plans is af) Tj ET Q q 0 0 0 rg BT 306.46 639.10 Td (fected by changes in valuation assumptions. For example, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 Td (fair value of stock options is estimated by using the binomial model on the date of grant based on certain assumptions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (including, among others, expected volatility) Tj ET Q q 0 0 0 rg BT 224.92 615.10 Td (, the expected option term and the expected dividend payout rate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 594.10 Td (For the years ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.17 594.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.17 594.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.17 594.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.17 594.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.61 594.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.61 594.10 Td (, the assumption for expected volatility has been based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 582.10 Td (s historical volatility since the initial public of) Tj ET Q q 0 0 0 rg BT 275.12 582.10 Td (fering in 201) Tj ET Q q 0 0 0 rg BT 326.40 582.10 Td (1.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 561.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 561.10 Td (e recognize compensation expense only for the portion of share options that are expected to vest. Forfeitures are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.10 Td (estimated at the time of grant and revised, if necessary) Tj ET Q q 0 0 0 rg BT 266.55 549.10 Td (, in subsequent periods if actual forfeitures dif) Tj ET Q q 0 0 0 rg BT 450.75 549.10 Td (fer from our estimates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 528.10 Td (For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.89 528.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.89 528.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.89 528.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.89 528.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.33 528.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.33 528.10 Td (, we recorded employee share-based compensation expense of $1.1 million, $1.6 million and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.34 528.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.10 Td ($1.8million, respectively) Tj ET Q q 0 0 0 rg BT 151.05 516.10 Td (. Share-based compensation expense related to non-employees was not material for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.49 516.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.49 516.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.49 516.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.49 516.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 504.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (Functional Currency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 461.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 461.10 Td (e use the U.S. dollar as the functional currency of Sequans Communications S.A. due to the high percentage of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.10 Td (revenues, cost of revenue, capital expenditures and operating costs, other than those related to headcount and overhead, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.10 Td (are denominated in U.S.dollars. Our IPO proceeds, the proceeds from our follow-on of) Tj ET Q q 0 0 0 rg BT 398.95 437.10 Td (ferings and the proceeds from issuance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (of convertible debt were also denominated in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 321.24 425.10 Td (, the venture debt with Harbert European Specialty Lending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (Company II S.a.r) Tj ET Q q 0 0 0 rg BT 117.83 413.10 Td (.l t issued in 2018 and all debt and equity proceeds that we received since our inception prior to our initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (public of) Tj ET Q q 0 0 0 rg BT 85.14 401.10 Td (fering were denominated in euros.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 380.10 Td (Each subsidiary determines its own functional currency and items included in the financial statements of each entity are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (measured using that functional currency) Tj ET Q q 0 0 0 rg BT 209.35 368.10 Td (. ) Tj ET Q q 0 0 0 rg BT 213.80 368.10 Td (As of each reporting date, the assets and liabilities of each subsidiary are translated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (into the U.S. dollar) Tj ET Q q 0 0 0 rg BT 125.48 356.10 Td (, our functional and reporting currency) Tj ET Q q 0 0 0 rg BT 279.77 356.10 Td (, at the rate of exchange at the balance sheet date and each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (subsidiary) Tj ET Q q 0 0 0 rg BT 93.39 344.10 Td (s statement of operations is translated at the average exchange rate for the year) Tj ET Q q 0 0 0 rg BT 407.42 344.10 Td (. Exchange dif) Tj ET Q q 0 0 0 rg BT 465.27 344.10 Td (ferences arising on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (translation are taken directly to a separate component of equity) Tj ET Q q 0 0 0 rg BT 300.70 332.10 Td (, cumulative translation adjustments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (Fair V) Tj ET Q q 0 0 0 rg BT 75.90 306.10 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 289.10 Td (The Company determined that the fair values of cash, trade receivables and trade payables approximate their carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (amounts lar) Tj ET Q q 0 0 0 rg BT 96.25 277.10 Td (gely due to the short-term maturities of these instruments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 260.10 Td (Where no active market exists, we establish fair value by using a valuation technique determined to be the most ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (appropriate in the circumstances, regarding coumpound debt instruments, the fair value of the debt component was determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (using a valuation model that requires judgment, including estimating the change in value of the Company at dif) Tj ET Q q 0 0 0 rg BT 494.77 236.10 Td (ferent dates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (market yields applicable to the Company) Tj ET Q q 0 0 0 rg BT 216.40 224.10 Td (s straight debt \(without the conversion option\). ) Tj ET Q q 0 0 0 rg BT 406.19 224.10 Td (The assumptions used in calculating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (the value of the conversion option represent the Company) Tj ET Q q 0 0 0 rg BT 283.88 212.10 Td (s best estimates based on management) Tj ET Q q 0 0 0 rg BT 440.23 212.10 Td (s judgment and subjective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (future expectations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 168.70 Td (Deferred T) Tj ET Q q 0 0 0 rg BT 93.84 168.70 Td (ax ) Tj ET Q q 0 0 0 rg BT 105.97 168.70 Td (Assets and Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 151.70 Td (Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary dif) Tj ET Q q 0 0 0 rg BT 500.63 151.70 Td (ferences ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.70 Td (between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.70 Td (Management makes assumptions, judgments and estimates to determine our deferred tax assets and liabilities.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 96.30 Td (Research and Development Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 79.30 Td (Costs incurred internally in research and development activities are char) Tj ET Q q 0 0 0 rg BT 362.37 79.30 Td (ged to expense until technological feasibility has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.30 Td (been established for the project. Once technological feasibility is established, development costs are capitalized until the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 55.30 Td (product is available for general release to customers. Judgment is required in determining when technological feasibility of a ) Tj ET Q endstream endobj 113 0 obj <> endobj 114 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (product is established. ) Tj ET Q q 0 0 0 rg BT 140.97 722.10 Td (W) Tj ET Q q 0 0 0 rg BT 149.61 722.10 Td (e have determined that technological feasibility for our software products is reached after all high-risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (development issues have been resolved. Generally) Tj ET Q q 0 0 0 rg BT 250.45 710.10 Td (, this occurs when the preliminary design review has been completed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 672.10 Td (Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 655.10 Td (The following tables set forth a summary of our consolidated results of operations for the periods indicated. ) Tj ET Q q 0 0 0 rg BT 506.54 655.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.10 Td (information should be read together with our Consolidated Financial Statements and related notes included elsewhere in this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.10 Td (annual report. ) Tj ET Q q 0 0 0 rg BT 107.35 631.10 Td (The results of operations in any period are not necessarily indicative of the results that may be expected for any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.10 Td (future period.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (Comparison of ) Tj ET Q q 0 0 0 rg BT 115.24 593.10 Td (Y) Tj ET Q q 0 0 0 rg BT 121.36 593.10 Td (ears Ended December) Tj ET Q q 0 0 0 rg BT 215.04 593.10 Td (31, 2017 and 2018) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 546.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 546.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 546.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 546.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 546.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 546.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 546.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 518.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 518.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 518.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 518.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 490.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 490.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 490.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 490.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 462.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 462.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 462.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 462.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 434.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 434.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 434.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 434.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 434.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 434.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 434.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 406.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 406.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 406.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 406.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 406.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 406.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 406.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 378.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 378.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 378.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 378.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 378.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 378.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 378.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 350.60 366.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 350.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 350.60 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 350.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 350.60 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 350.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 350.60 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 312.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 312.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 312.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 312.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 312.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 312.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 312.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 284.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 284.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 284.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 284.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 284.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 284.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 284.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 256.60 366.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 256.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 256.60 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 256.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 256.60 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 256.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 256.60 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 218.60 366.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 218.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 218.60 45.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 218.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 218.60 45.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 218.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 218.60 45.00 -17.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 570.6 m 465 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 570.6 m 469 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 570.6 m 514 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 570.6 m 563 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 570.6 m 465 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 558.6 m 465 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 558.6 m 514 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 558.6 m 563 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 504.6 m 465 504.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 504.6 m 514 504.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 490.6 m 465 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 490.6 m 514 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 448.6 m 465 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 448.6 m 514 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 434.6 m 465 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 434.6 m 514 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 364.6 m 465 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 364.6 m 514 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 364.6 m 465 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 350.6 m 465 350.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 350.6 m 514 350.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 256.6 m 465 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 256.6 m 514 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 218.60000000000002 m 465 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 218.60000000000002 m 514 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 202.60000000000002 m 465 202.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 200.60000000000002 m 465 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 202.60000000000002 m 514 202.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 200.60000000000002 m 514 200.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 574.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.10 574.68 Td (Y) Tj ET Q q 0 0 0 rg BT 428.43 574.68 Td (ear) Tj ET Q q 0 0 0 rg BT 439.02 574.68 Td (endedDecember) Tj ET Q q 0 0 0 rg BT 497.97 574.68 Td (31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.85 574.68 Td (Change) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 562.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.95 562.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 446.95 566.31 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.95 562.68 Td (2018) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 495.95 566.31 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.00 562.68 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 550.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.15 550.68 Td (\(inthousands\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 520.50 550.55 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 537.17 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 523.17 Td (Product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 523.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 523.17 Td (37,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 523.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 523.17 Td (28,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.45 523.17 Td (\(23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 523.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 509.17 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 509.17 Td (10,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 509.17 Td (1) Tj ET Q q 0 0 0 rg BT 487.25 509.17 Td (1,312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 509.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 495.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 495.17 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 495.17 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 495.17 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.45 495.17 Td (\(17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 495.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 481.17 Td (Cost of revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 467.17 Td (Cost of product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 467.17 Td (24,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 467.17 Td (21,957) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.45 467.17 Td (\(1) Tj ET Q q 0 0 0 rg BT 545.78 467.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 467.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 453.17 Td (Cost of other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 453.17 Td (2,397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.25 453.17 Td (2,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 453.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 439.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 439.17 Td (otal cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 439.17 Td (27,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 439.17 Td (24,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.45 439.17 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 439.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 425.17 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 425.17 Td (21,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 425.17 Td (15,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.45 425.17 Td (\(25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 425.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 411.17 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 397.17 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 397.17 Td (25,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 397.17 Td (27,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 397.17 Td (1) Tj ET Q q 0 0 0 rg BT 545.80 397.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 383.17 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 383.17 Td (8,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.25 383.17 Td (9,41) Tj ET Q q 0 0 0 rg BT 504.75 383.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 383.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 369.17 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 369.17 Td (6,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 369.17 Td (10,085) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 369.17 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 355.17 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 355.17 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 355.17 Td (40,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.25 355.17 Td (47,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 355.17 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 341.17 Td (Operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.95 331.27 Td (\(19,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 331.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.95 331.27 Td (\(31,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 331.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 331.27 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 317.17 Td (Financial income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 303.17 Td (Interest income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.95 303.17 Td (\(4,612) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 303.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.95 303.17 Td (\(5,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 303.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 303.17 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 289.17 Td (Other financial expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 289.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.45 289.17 Td (\(400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.80 289.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 275.17 Td (Convertible debt amendments) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 440.60 274.47 Td (\(322) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 460.80 274.47 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 489.60 274.47 Td (\(265) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 509.80 274.47 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.45 275.17 Td (\(18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 275.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 261.17 Td (Foreign exchange gain \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.95 261.17 Td (\(1,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 261.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.75 261.17 Td (366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.45 261.17 Td (\(126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 261.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 247.17 Td (Profit \(Loss\) before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.95 237.27 Td (\(25,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 237.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.95 237.27 Td (\(37,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 237.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 223.17 Td (Income tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.75 223.17 Td (300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.45 223.17 Td (\(968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 223.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.45 223.17 Td (\(423) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 223.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 209.17 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 206.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.95 206.27 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 206.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 206.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.95 206.27 Td (\(36,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 206.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 187.50 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 187.50 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 187.50 Td (, prior period amounts have not been restated.) Tj ET Q endstream endobj 115 0 obj <> endobj 116 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (The following table sets forth a summary of our statements of operations as a percentage of total revenue:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 667.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 667.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 667.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 667.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 667.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 639.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 639.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 639.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 639.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 639.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 611.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 611.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 611.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 611.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 611.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 583.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 583.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 583.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 583.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 583.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 555.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 555.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 555.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 555.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 555.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 527.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 527.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 527.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 527.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 527.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 499.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 499.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 499.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 499.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 499.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 471.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 471.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 471.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 471.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 443.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 443.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 443.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 443.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 443.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 415.60 415.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 415.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 415.60 45.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 415.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 415.60 45.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 385.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 385.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 385.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 385.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 385.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 357.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 357.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 357.60 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 691.6 m 514 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 691.6 m 518 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 691.6 m 563 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 679.6 m 514 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 679.6 m 563 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 625.6 m 514 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 611.6 m 514 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 625.6 m 563 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 611.6 m 563 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 569.6 m 514 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 555.6 m 514 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 569.6 m 563 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 555.6 m 563 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 485.6 m 514 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 471.6 m 514 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 485.6 m 563 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 471.6 m 563 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 385.6 m 514 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 385.6 m 563 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 357.6 m 514 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 357.6 m 563 357.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 469 343.6 m 514 343.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 518 343.6 m 563 343.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 695.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.35 703.68 Td (Y) Tj ET Q q 0 0 0 rg BT 501.24 703.68 Td (ear) Tj ET Q q 0 0 0 rg BT 512.20 703.68 Td ( ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.25 695.68 Td (December) Tj ET Q q 0 0 0 rg BT 526.75 695.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 683.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 683.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 683.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 671.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.25 671.68 Td (\(%oftotalr) Tj ET Q q 0 0 0 rg BT 523.54 671.68 Td (evenue\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 658.17 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 644.17 Td (Product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 644.17 Td (77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 644.17 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 630.17 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 630.17 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 630.17 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 616.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 616.17 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 616.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 616.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 602.17 Td (Cost of revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 588.17 Td (Cost of product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 588.17 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 588.17 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 574.17 Td (Cost of other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 574.17 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 574.17 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 560.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 560.17 Td (otal cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 560.17 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 560.17 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 546.17 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 546.17 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 546.17 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 532.17 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 518.17 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 518.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 518.17 Td (69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 504.17 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 504.17 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 504.17 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 490.17 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 490.17 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 490.17 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 476.17 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 476.17 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 476.17 Td (84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 476.17 Td (1) Tj ET Q q 0 0 0 rg BT 549.15 476.17 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 462.17 Td (Operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 462.22 Td (\(40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 462.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 462.22 Td (\(78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 462.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 448.17 Td (Financial income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 434.17 Td (Interest income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 434.22 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 434.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 434.22 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 434.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 420.17 Td (Other financial expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 420.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 420.22 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 420.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 406.17 Td (Convertible debt amendments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.80 404.32 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 404.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 404.32 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 404.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 390.17 Td (Foreign exchange gain \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.80 390.22 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 390.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 390.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 376.17 Td (Profit \(Loss\) before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 376.22 Td (\(54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 376.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 376.22 Td (\(92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 376.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 362.17 Td (Income tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 362.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 362.22 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 362.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 348.17 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 348.22 Td (\(55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 348.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 348.22 Td (\(90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 348.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (Revenue) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 301.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 83.13 301.10 Td (oduct Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 284.10 Td (Product revenue decreased 23% from $37.4million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.61 284.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.61 284.10 Td ( to $28.9million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.05 284.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.05 284.10 Td (. ) Tj ET Q q 0 0 0 rg BT 416.87 284.10 Td (The IoT) Tj ET Q q 0 0 0 rg BT 449.18 284.10 Td ( business experienced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (strong growth, with Cat 1 chip volume tripling in 2018 and a more moderate increase in Cat 1 module volumes, as a major US ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (operator's extension of CDMA) Tj ET Q q 0 0 0 rg BT 172.12 260.10 Td ( activations in the second half of last year caused one of our major Cat1 module customers to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (delay deployment of L) Tj ET Q q 0 0 0 rg BT 139.39 248.10 Td (TE solutions on this network. During 2018, the L) Tj ET Q q 0 0 0 rg BT 335.68 248.10 Td (TE M products ramped up and grew more than 50% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (year over year) Tj ET Q q 0 0 0 rg BT 106.13 236.10 Td (. ) Tj ET Q q 0 0 0 rg BT 110.95 236.10 Td (This overall IoT) Tj ET Q q 0 0 0 rg BT 175.75 236.10 Td ( growth was more than of) Tj ET Q q 0 0 0 rg BT 278.04 236.10 Td (fset by a decline in the broadband business, particularly in emer) Tj ET Q q 0 0 0 rg BT 533.06 236.10 Td (ging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (markets. ) Tj ET Q q 0 0 0 rg BT 85.97 224.10 Td (The broadband business has suf) Tj ET Q q 0 0 0 rg BT 212.99 224.10 Td (fered from our decision to focus our development ef) Tj ET Q q 0 0 0 rg BT 421.63 224.10 Td (forts on the IoT) Tj ET Q q 0 0 0 rg BT 483.93 224.10 Td ( business rather ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (than on a second generation Cat 6 product of) Tj ET Q q 0 0 0 rg BT 228.71 212.10 Td (fering.) Tj ET Q q 0 0 0 rg BT 257.41 212.10 Td (T) Tj ET Q q 0 0 0 rg BT 262.82 212.10 Td (otal IoT) Tj ET Q q 0 0 0 rg BT 294.57 212.10 Td ( product revenue grew 92% from $9.1 million in 2017 to $17.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (million in 2018 and accounted for approximately 61% of total product revenue. ) Tj ET Q q 0 0 0 rg BT 369.50 200.10 Td (T) Tj ET Q q 0 0 0 rg BT 374.92 200.10 Td (otal broadband product revenue decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (60% from $27.6 million in 2017 to $1) Tj ET Q q 0 0 0 rg BT 201.35 188.10 Td (1.1 million in 2018. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 171.10 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.33 171.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.33 171.10 Td (, we shipped approximately 3.2 million of units of L) Tj ET Q q 0 0 0 rg BT 312.55 171.10 Td (TE products compared to 3.4 million units in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.02 171.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.02 171.10 Td (. ) Tj ET Q q 0 0 0 rg BT 519.84 171.10 Td (W) Tj ET Q q 0 0 0 rg BT 528.48 171.10 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.10 Td (strong IoT) Tj ET Q q 0 0 0 rg BT 91.26 159.10 Td ( growth in 2019, supported by continued shipment of Cat 1 products in both U.S. and Japan and the ramp of Cat M ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 Td (particularly during the second half of 2019. ) Tj ET Q q 0 0 0 rg BT 225.38 147.10 Td (W) Tj ET Q q 0 0 0 rg BT 234.02 147.10 Td (e believe that the broadband business will remain stable or decline slightly in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.10 Td (short-term, but could be a source of growth longer term, as new design wins are launched by our customers and as we evolve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.10 Td (our products toward 5G technology) Tj ET Q q 0 0 0 rg BT 191.04 123.10 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 97.10 Td (Other Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 80.10 Td (Other revenue increased 4% from $10.9 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.61 80.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.61 80.10 Td ( to $1) Tj ET Q q 0 0 0 rg BT 320.01 80.10 Td (1.3 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.68 80.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.68 80.10 Td (, reflecting an increase in development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.10 Td (services revenue with new projects signed during the year and higher maintenance revenue.) Tj ET Q endstream endobj 117 0 obj <> endobj 118 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td ( Development services revenue increased from $7.7 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.09 722.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.09 722.10 Td ( to $8.0 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.54 722.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.54 722.10 Td (.License revenue decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (slightly from $2.8 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.61 710.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.61 710.10 Td ( to $2.7 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.06 710.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.06 710.10 Td (, and maintenance revenue increased from $300,000 in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.64 710.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.64 710.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td ($600,000 in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.78 698.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.78 698.10 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 672.10 Td (Cost of Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 655.10 Td (Cost of product revenue decreased 1) Tj ET Q q 0 0 0 rg BT 218.91 655.10 Td (1% from $24.7million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.34 655.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.34 655.10 Td ( to $22.0 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.79 655.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.79 655.10 Td ( due to lower product and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.10 Td (manufacturing costs associated with the decreased number of units sold. Cost of other revenue remained flat at $2.4 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 631.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 631.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 631.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (Gross Profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 588.10 Td (Gross profit decreased 25% from $21.1million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.40 588.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.40 588.10 Td ( to $15.9 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.85 588.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.85 588.10 Td (, and the gross mar) Tj ET Q q 0 0 0 rg BT 470.49 588.10 Td (gin percentage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.10 Td (decreased from 43.8% in 2017 to 39.5% in 2018, primarily due to a reduction of product gross mar) Tj ET Q q 0 0 0 rg BT 445.33 576.10 Td (gin. Product gross mar) Tj ET Q q 0 0 0 rg BT 535.70 576.10 Td (gin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.10 Td (percentage decreased from 33.8% in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.76 564.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.76 564.10 Td ( to 24.1% in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.15 564.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.15 564.10 Td ( due to the impact of a higher percentage of lower) Tj ET Q q 0 0 0 rg BT 488.31 564.10 Td (-mar) Tj ET Q q 0 0 0 rg BT 507.00 564.10 Td (gin module ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.10 Td (sales in the product revenue mix compared to 2017.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (Research and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 509.10 Td (Research and development expense increased 1) Tj ET Q q 0 0 0 rg BT 263.32 509.10 Td (1% from $25.2 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.76 509.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.76 509.10 Td ( to $27.9 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.21 509.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.21 509.10 Td ( primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (higher headcount expenses, lower research and development credit and lower grant recognition partially of) Tj ET Q q 0 0 0 rg BT 476.93 497.10 Td (fset by more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (capitalized costs related to the development of the chipsets for Cat M recorded in 2018. Headcount expenses in euros were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (impacted by a higher average foreign exchange rate between euros and US dollars in 2018 compared to 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 452.10 Td (Research and development incentives decreased from $6.4million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.30 452.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.30 452.10 Td ( to $4.1 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.75 452.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.75 452.10 Td (. In the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (December 31, 2018 and 2017, we capitalized costs related to the development of the chipsets for Cat M, the Monarch and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (Monarch 2 \($3.4 million, net of research tax credit of $0.5 million and $1.9 million, net of research tax credit of $0.3 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (respectively\). In the year ended December 31, 2018, $100,000 of other development costs were capitalized related mainly to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (operator certification \($59,000 in 2017\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 383.10 Td (Research and development costs associated with product development \(including normal customer support which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (generates product improvements\) are recorded in operating expense.In some cases, we have negotiated agreements with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (customers and partners whereby we provide certain development services beyond our normal practices or planned product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (roadmap.) Tj ET Q q 0 0 0 rg BT 88.93 347.10 Td (Amounts received from these agreements are recorded in other revenue.Incremental costs, including both internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (resources and out-of-pocket expenses, that we incur as a result of the commitments in the agreements are recorded in cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (other revenue, rather than in research and development expense.Other research and development costs related to the projects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (covered by the agreements, but which we would have incurred without the existence of such agreements are recorded in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (research and development expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.10 Td (There were 203 employees and independent contractors in research and development at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.72 275.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.72 275.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (235 at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.30 263.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.30 263.10 Td (. Some of this reduction is due to a reor) Tj ET Q q 0 0 0 rg BT 315.36 263.10 Td (ganization in 2018 in which 21 technical support engineers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (were transferred from engineering to customer support in Sales and Marketing.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (Sales and Marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 203.10 Td (Sales and marketing expense increased 7% from $8.8million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.49 203.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.49 203.10 Td ( to $9.4 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.94 203.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.94 203.10 Td (. ) Tj ET Q q 0 0 0 rg BT 453.76 203.10 Td (There were 43 employees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (and independent contractors in sales and marketing at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.23 191.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.23 191.10 Td ( compared to 28 employees at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.00 191.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 191.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (Some of this increase is due to a reor) Tj ET Q q 0 0 0 rg BT 197.05 179.10 Td (ganization in 2018 in which 21 technical support engineers were transferred from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (engineering to customer support in Sales and Marketing.) Tj ET Q endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (56) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (General and ) Tj ET Q q 0 0 0 rg BT 103.02 722.25 Td (Administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (General and administrative expense increased 51% from $6.7million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.69 705.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.69 705.25 Td ( to $10.1 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.14 705.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.14 705.25 Td ( primarily due to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (increase in bad debt expense and legal fees. Bad debt expenses are related primarily to aged trade receivables, which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (Company no longer expects to collect. ) Tj ET Q q 0 0 0 rg BT 205.67 681.25 Td (There were 21 employees in general and administrative at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.32 681.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.32 681.25 Td ( compared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (to 20 at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.58 669.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.58 669.25 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 643.25 Td (Interest Income \(Expense\), Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 626.25 Td (Net interest expense increased to $5.4 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.28 626.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.28 626.25 Td ( compared to $4.6 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 626.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 626.25 Td (. ) Tj ET Q q 0 0 0 rg BT 430.47 626.25 Td (The increase in interest expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (in 2018 reflected the issuance of $4.5 million in new convertible debt at the end of September 2018 and 12 million of venture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (debt at the end of October 2018. Interest income was insignificant in both years.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 579.85 Td (Convertible debt amendment, other financial expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 558.85 Td (On October 30, 2017, the convertible notes issued on ) Tj ET Q q 0 0 0 rg BT 291.18 558.85 Td (April 14, 2015 and ) Tj ET Q q 0 0 0 rg BT 368.68 558.85 Td (April 27, 2016 were amended to extend the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.85 Td (term of the notes issued in 2015 from ) Tj ET Q q 0 0 0 rg BT 201.15 546.85 Td (April 14, 2018 to ) Tj ET Q q 0 0 0 rg BT 271.98 546.85 Td (April 14, 2019 and the term of the notes issued in 2016 from ) Tj ET Q q 0 0 0 rg BT 516.39 546.85 Td (April 27, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.85 Td (2019 to ) Tj ET Q q 0 0 0 rg BT 81.73 534.85 Td (April 27, 2020. In addition, the conversion price of the notes issued in 2016 was decreased from $2.71 to $2.25. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.85 Td (Following the extension of the term, the change in fair value of the conversion options before and after the amendment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.85 Td (calculated to be $3,418,000 and was recorded as financial expense. ) Tj ET Q q 0 0 0 rg BT 320.05 510.85 Td (The debt components on October 30, 2017 were remeasured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.85 Td (to take into account the new terms using the ef) Tj ET Q q 0 0 0 rg BT 235.65 498.85 Td (fective interest rate calculated at the date of issue of each convertible note. ) Tj ET Q q 0 0 0 rg BT 535.88 498.85 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.85 Td (debts were reduced by a total amount of $3,096,000 recorded in financial income in 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 465.85 Td (On September 27, 2018, the convertible notes issued on ) Tj ET Q q 0 0 0 rg BT 301.74 465.85 Td (April 14, 2015 and ) Tj ET Q q 0 0 0 rg BT 379.23 465.85 Td (April 27, 2016 were amended to extend the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 453.85 Td (term of the notes issued in 2015 from ) Tj ET Q q 0 0 0 rg BT 201.15 453.85 Td (April 14, 2019 to ) Tj ET Q q 0 0 0 rg BT 271.98 453.85 Td (April 14, 2020, to decrease the conversion price of the notes issued in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.85 Td (2015 from $1.85 to $1.70 and to permit the subordination of the convertible notes to new debt to be issued by the Company) Tj ET Q q 0 0 0 rg BT 543.21 441.85 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.85 Td (addition, warrants to purchase 1.8 million shares of Sequans were issued to the holder of the amended convertible notes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.85 Td (Following the amendment signed in September 27, 2018, the fair value of the debt just prior to amendment was estimated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.85 Td (order to record a loss on extinguishment of $265,000 recorded as Convertible debt amendments in the Consolidated Statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.85 Td (of Operations. On October 30, 2018 and in connection with entering into the bond issuance agreement, the Company retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.85 Td (convertible notes issued on ) Tj ET Q q 0 0 0 rg BT 160.04 381.85 Td (April 27, 2016 and due on ) Tj ET Q q 0 0 0 rg BT 266.97 381.85 Td (April 27, 2020, with a principal amount of $1 million, by paying the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.85 Td (principal and accrued interest due as of October 30, 2018 to the noteholder) Tj ET Q q 0 0 0 rg BT 348.01 369.85 Td (. ) Tj ET Q q 0 0 0 rg BT 352.83 369.85 Td (The impact of the retirement was recorded as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.85 Td (financial expenses in 2018 for an amount of $400,000.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 310.85 Td (Foreign Exchange Gain \(Loss\), Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 293.85 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 293.85 Td (e had a net foreign exchange gain of $0.4 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.52 293.85 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.52 293.85 Td ( compared to a net foreign exchange loss of $1.4 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.85 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 281.85 Td ( primarily due to movements in the U.S.dollar versus the euro.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 255.85 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.30 255.85 Td (ax Expense \(Benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.85 Td (In 2018, we recorded current tax expense of $210,000 arising from taxable income incurred at certain subsidiaries, and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.85 Td (deferred tax benefit amounting to $1,178,000, mainly due to the recognition of deferred tax assets that were determined to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.85 Td (realizable as a result of the deferred tax liability recorded \(through equity\) related to convertible debt and debt with warrants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.85 Td (attached. ) Tj ET Q q 0 0 0 rg BT 87.63 202.85 Td (The deferred tax liability resulted from the recognition of the equity components following the separation between the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.85 Td (equity and liability components of these financial instruments. In 2017, we recorded current tax expense of $273,000 arising ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.85 Td (from taxable income incurred at certain subsidiaries, and deferred tax expense amounting to $27,000.) Tj ET Q endstream endobj 121 0 obj <> endobj 122 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Comparison of ) Tj ET Q q 0 0 0 rg BT 115.24 722.25 Td (Y) Tj ET Q q 0 0 0 rg BT 121.36 722.25 Td (ears Ended December) Tj ET Q q 0 0 0 rg BT 215.04 722.25 Td (31, 2016 and 2017) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 649.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 649.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 649.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 649.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 649.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 649.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 649.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 621.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 621.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 621.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 621.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 621.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 621.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 621.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 593.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 593.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 593.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 593.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 593.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 593.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 593.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 565.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 565.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 565.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 565.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 565.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 565.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 565.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 537.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 537.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 537.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 537.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 537.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 537.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 537.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 509.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 509.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 509.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 509.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 509.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 509.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 509.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 481.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 481.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 481.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 481.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 481.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 481.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 481.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 453.75 339.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 453.75 7.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 453.75 46.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 453.75 11.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 453.75 51.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 453.75 11.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 453.75 48.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 415.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 415.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 415.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 415.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 415.75 51.00 -14.00 re f /GS0 gs 0.8 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0.9333333333333333 1 rg /GS0 gs 453.00 359.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 359.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 359.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 321.75 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 321.75 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 321.75 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 321.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 321.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 321.75 11.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 321.75 48.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 673.75 m 442 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 673.75 m 453 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 673.75 m 504 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 673.75 m 563 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 673.75 m 442 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 661.75 m 442 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 661.75 m 504 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 661.75 m 563 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 607.75 m 442 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 607.75 m 504 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 593.75 m 442 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 607.75 m 504 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 593.75 m 504 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 551.75 m 442 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 551.75 m 504 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 537.75 m 442 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 551.75 m 504 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 537.75 m 504 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 537.75 m 504 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 467.75 m 442 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 467.75 m 504 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 467.75 m 442 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 453.75 m 442 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 467.75 m 504 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 453.75 m 504 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 453.75 m 504 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 345.75 m 442 345.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 345.75 m 504 345.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 345.75 m 504 345.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 307.75 m 442 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 307.75 m 504 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 291.75 m 442 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 289.75 m 442 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 307.75 m 504 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 291.75 m 504 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 289.75 m 504 289.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 677.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.10 677.83 Td (Y) Tj ET Q q 0 0 0 rg BT 411.43 677.83 Td (ear) Tj ET Q q 0 0 0 rg BT 422.02 677.83 Td (endedDecember) Tj ET Q q 0 0 0 rg BT 480.97 677.83 Td (31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.35 677.83 Td (Change) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 665.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.45 665.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 423.45 669.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.95 665.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 482.95 669.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 534.50 665.83 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 653.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.15 653.83 Td (\(inthousands\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.50 653.70 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 640.32 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 626.32 Td (Product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 626.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 626.32 Td (34,581) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.50 626.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.25 626.32 Td (37,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 626.32 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 626.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 612.32 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 612.32 Td (10,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.25 612.32 Td (10,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 612.37 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 612.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 598.32 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 598.32 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 598.32 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.25 598.32 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 598.32 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 584.32 Td (Cost of revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 570.32 Td (Cost of product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 570.32 Td (22,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.25 570.32 Td (24,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 570.32 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 556.32 Td (Cost of other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 556.32 Td (3,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.25 556.32 Td (2,397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 556.37 Td (\(21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 556.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 542.32 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 542.32 Td (otal cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 542.32 Td (25,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.25 542.32 Td (27,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 542.32 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 528.32 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 528.32 Td (19,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.25 528.32 Td (21,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 528.32 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 514.32 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 500.32 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 500.32 Td (26,334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.25 500.32 Td (25,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 500.37 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 500.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 486.32 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 486.32 Td (7,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.25 486.32 Td (8,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 486.32 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 472.32 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 472.32 Td (6,267) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.25 472.32 Td (6,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 472.32 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 458.32 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 458.32 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 458.32 Td (39,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.25 458.32 Td (40,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 458.32 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 444.32 Td (Operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.30 434.47 Td (\(19,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 434.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.95 434.42 Td (\(19,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 434.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 434.47 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 434.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 420.32 Td (Financial income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 406.32 Td (Interest income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 406.37 Td (\(3,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 406.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.95 406.32 Td (\(4,612) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 406.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 406.32 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 392.32 Td (Other financial expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.80 392.37 Td (\(83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 392.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.80 392.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.80 392.37 Td (\(100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 392.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 378.32 Td (Convertible debt amendments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 378.32 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 479.60 377.62 Td (\(322) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 499.80 377.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.15 378.32 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 364.32 Td (Change in the fair value of convertible debt embedded derivative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 364.37 Td (\(1,583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 364.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.80 364.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.80 364.37 Td (\(100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 364.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 350.32 Td (Foreign exchange gain \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 350.32 Td (593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.95 350.32 Td (\(1,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 350.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.80 350.37 Td (\(336) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 350.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 336.32 Td (Profit \(Loss\) before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.30 326.47 Td (\(24,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 326.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.95 326.42 Td (\(25,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 326.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 312.32 Td (Income tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 312.32 Td (284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 312.32 Td (300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 312.32 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 298.32 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 295.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.30 295.47 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 295.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.50 295.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.95 295.42 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 295.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 276.65 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 276.65 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 276.65 Td (, prior period amounts have not been restated.) Tj ET Q endstream endobj 123 0 obj <> endobj 124 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (The following table sets forth a summary of our statement of operations as a percentage of total revenue:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 667.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 667.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 667.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 667.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 667.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 639.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 639.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 639.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 639.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 639.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 611.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 611.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 611.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 611.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 611.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 583.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 583.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 583.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 583.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 583.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 555.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 555.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 555.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 555.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 555.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 527.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 527.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 527.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 527.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 527.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 499.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 499.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 499.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 499.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 499.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 471.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 471.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 471.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 471.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 443.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 443.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 443.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 443.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 443.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 412.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 412.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 412.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 412.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 412.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 384.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 384.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 384.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 384.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 384.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 356.60 415.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 356.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 356.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 356.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 356.60 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 691.6 m 514 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 691.6 m 518 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 691.6 m 563 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 679.6 m 514 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 679.6 m 563 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 625.6 m 563 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 625.6 m 514 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 611.6 m 514 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 625.6 m 563 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 611.6 m 563 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 569.6 m 563 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 569.6 m 514 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 555.6 m 514 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 569.6 m 563 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 555.6 m 563 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 555.6 m 563 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 485.6 m 563 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 485.6 m 514 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 471.6 m 514 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 485.6 m 563 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 471.6 m 563 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 471.6 m 563 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 384.6 m 514 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 384.6 m 563 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 356.6 m 514 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 356.6 m 563 356.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 469 342.6 m 514 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 356.6 m 563 356.6 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 518 342.6 m 563 342.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 695.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.35 703.68 Td (Y) Tj ET Q q 0 0 0 rg BT 501.24 703.68 Td (ear) Tj ET Q q 0 0 0 rg BT 512.20 703.68 Td ( ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.25 695.68 Td (December) Tj ET Q q 0 0 0 rg BT 526.75 695.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 683.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 683.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 683.68 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 671.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.25 671.68 Td (\(%oftotalr) Tj ET Q q 0 0 0 rg BT 523.54 671.68 Td (evenue\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 658.17 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 644.17 Td (Product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 644.17 Td (76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 644.17 Td (77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 630.17 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 630.17 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 630.17 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 616.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 616.17 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 616.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 616.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 602.17 Td (Cost of revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 588.17 Td (Cost of product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 588.17 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 588.17 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 574.17 Td (Cost of other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 574.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 574.17 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 560.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 560.17 Td (otal cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 560.17 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 560.17 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 546.17 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 546.17 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 546.17 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 532.17 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 518.17 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 518.17 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 518.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 504.17 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 504.17 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 504.17 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 490.17 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 490.17 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 490.17 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 476.17 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 476.17 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 476.17 Td (88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 476.17 Td (84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 462.17 Td (Operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 462.22 Td (\(44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 462.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 462.22 Td (\(40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 462.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 448.17 Td (Financial income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 434.17 Td (Interest income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.80 434.22 Td (\(8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 434.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 434.22 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 434.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 420.17 Td (Convertible debt amendments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 417.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 417.32 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 417.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 403.17 Td (Change in the fair value of convertible debt embedded derivative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.80 403.22 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 403.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 403.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 389.17 Td (Foreign exchange gain \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 389.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 389.22 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 389.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 375.17 Td (Profit \(Loss\) before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 375.22 Td (\(54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 375.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 375.22 Td (\(54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 375.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 361.17 Td (Income tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 361.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 361.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 347.17 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 347.22 Td (\(55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 347.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 347.22 Td (\(55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 347.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (Revenue) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 300.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 83.13 300.10 Td (oduct Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 283.10 Td (Product revenue increased 8% from $34.6million in 2016 to $37.4million in 2017, driven primarily by customers with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (broadband access products for emer) Tj ET Q q 0 0 0 rg BT 193.15 271.10 Td (ging markets and emer) Tj ET Q q 0 0 0 rg BT 284.32 271.10 Td (ging carriers as well as by customers selling both broadband access ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.10 Td (and IoT) Tj ET Q q 0 0 0 rg BT 80.70 259.10 Td ( products in the U.S, Japan and South Korea.During 2017, the ramp in Cat 1 product shipments led to our first year of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.10 Td (meaningful IoT) Tj ET Q q 0 0 0 rg BT 111.80 247.10 Td ( product revenue. ) Tj ET Q q 0 0 0 rg BT 183.81 247.10 Td (The strong growth in the IoT) Tj ET Q q 0 0 0 rg BT 299.44 247.10 Td ( business was of) Tj ET Q q 0 0 0 rg BT 364.53 247.10 Td (fset by a decline in the broadband business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (particularly during the second half of the year) Tj ET Q q 0 0 0 rg BT 231.93 235.10 Td (. ) Tj ET Q q 0 0 0 rg BT 236.75 235.10 Td (T) Tj ET Q q 0 0 0 rg BT 242.16 235.10 Td (otal IoT) Tj ET Q q 0 0 0 rg BT 273.91 235.10 Td ( revenue grew 43% from $8.4 million in 2016 to $12.0 million in 2017 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (and accounted for approximately 25% of total revenue. ) Tj ET Q q 0 0 0 rg BT 272.29 223.10 Td (T) Tj ET Q q 0 0 0 rg BT 277.70 223.10 Td (otal broadband revenue decreased 7% from $30.1 million in 2016 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td ($27.9 million in 2017. ) Tj ET Q q 0 0 0 rg BT 143.49 211.10 Td (The lar) Tj ET Q q 0 0 0 rg BT 171.90 211.10 Td (gest factor in the decline was a change in subscription pricing by one major operator) Tj ET Q q 0 0 0 rg BT 509.17 211.10 Td (, leading to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (slow-down in end sales of two products deployed on that network. Increased revenues also reflect a product mix with a higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (percentage of module sales; modules have a higher average selling price than chipsets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 170.10 Td (In 2017, we shipped approximately 3.4 million of units of L) Tj ET Q q 0 0 0 rg BT 312.55 170.10 Td (TE products compared to 2.6 million units in 2016. ) Tj ET Q q 0 0 0 rg BT 519.84 170.10 Td (W) Tj ET Q q 0 0 0 rg BT 528.48 170.10 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (strong IoT) Tj ET Q q 0 0 0 rg BT 91.26 158.10 Td ( growth in 2018, supported by the continuous shipment of Cat 1 products in both U.S. and Japan and the ramp of Cat ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (M particularly during the second half of 2018. ) Tj ET Q q 0 0 0 rg BT 236.77 146.10 Td (W) Tj ET Q q 0 0 0 rg BT 245.41 146.10 Td (e believe that the broadband business will remain a major source of growth as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (newer broadband customers continue to ramp with new operators in emer) Tj ET Q q 0 0 0 rg BT 343.67 134.10 Td (ging markets and new opportunities outside the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (emer) Tj ET Q q 0 0 0 rg BT 69.30 122.10 Td (ging and ) Tj ET Q q 0 0 0 rg BT 106.34 122.10 Td (V) Tj ET Q q 0 0 0 rg BT 112.45 122.10 Td (erizon markets, and, longer term, as we evolve toward 5G services. ) Tj ET Q endstream endobj 125 0 obj <> endobj 126 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (59) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (Other Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.10 Td (Other revenue decreased 1% from $1) Tj ET Q q 0 0 0 rg BT 222.23 705.10 Td (1.0 million in 2016 to $10.9 million in 2017, reflecting a decrease in development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.10 Td (services revenue as some lar) Tj ET Q q 0 0 0 rg BT 163.16 693.10 Td (ge projects from prior years were completed, lar) Tj ET Q q 0 0 0 rg BT 355.67 693.10 Td (gely of) Tj ET Q q 0 0 0 rg BT 383.54 693.10 Td (fset by higher license and maintenance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.10 Td (revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 664.10 Td ( Development services revenue decreased from $9.3 million in 2016 to $7.7 million in 2017.License revenue increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 652.10 Td (from $1.5 million in 2016 to $3.0 million in 2017, and maintenance revenue decreased from $200,000 in 2016 to $160,000 in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.10 Td (2017. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (Cost of Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 597.10 Td (Cost of product revenue increased 10% from $22.6million in 2016 to $24.7 million in 2017 due to higher product and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.10 Td (manufacturing costs associated with the increased number of units sold and more modules in the revenue mix in 2017 compared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.10 Td (to 2016. Cost of other revenue decreased 21% from $3.0 million in 2016 to $2.4 million in 2017, reflecting the 17% decrease of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.10 Td (development services revenue, some of which involved re-selling external services, such as certification costs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 535.10 Td (Gross Profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 518.10 Td (Gross profit increased 6% from $20.0million in 2016 to $21.1 million in 2017, while gross mar) Tj ET Q q 0 0 0 rg BT 456.89 518.10 Td (gin percentage remained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (stable at 43.8%, primarily due to an improved other revenue gross mar) Tj ET Q q 0 0 0 rg BT 331.74 506.10 Td (gin. Product gross mar) Tj ET Q q 0 0 0 rg BT 422.10 506.10 Td (gin percentage decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (34.7% in 2016 to 33.8% in 2017 due to the impact of a higher percentage of lower) Tj ET Q q 0 0 0 rg BT 378.66 494.10 Td (-mar) Tj ET Q q 0 0 0 rg BT 397.35 494.10 Td (gin module sales in the product revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (mix compared to 2016.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 456.10 Td (Research and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 439.10 Td (Research and development expense decreased 4% from $26.3 million in 2016 to $25.2 million in 2017 primarily due to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (higher research and development credit, higher grant recognition and more capitalized costs related to the development of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.10 Td (chipsets for L) Tj ET Q q 0 0 0 rg BT 103.57 415.10 Td (TE Category M recorded in 2017, partially of) Tj ET Q q 0 0 0 rg BT 285.55 415.10 Td (fset by an increase of headcount expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 394.10 Td (These expenses are net of research and development incentives earned during the periods, which are accounted for as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (reduction of research and development expense. Research and development incentives increased from $3.7million in 2016 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td ($6.4 million in 2017. In the year ended December 31, 2016, $22,000 of development costs were capitalized related mainly to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (operator certification \($59,000 in 2017\). In the year ended December 31, 2017, we capitalized costs related to the development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (of the chipsets for L) Tj ET Q q 0 0 0 rg BT 129.11 346.10 Td (TE Category M, the Monarch and Monarch 2 \($1.9 million, net of research tax credit of $ 0.3 million\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 325.10 Td (Research and development costs associated with product development \(including normal customer support which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (generates product improvements\) are recorded in operating expense.In some cases, we have negotiated agreements with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (customers and partners whereby we provide certain development services beyond our normal practices or planned product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (roadmap.) Tj ET Q q 0 0 0 rg BT 88.93 289.10 Td (Amounts received from these agreements are recorded in other revenue.Incremental costs, including both internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (resources and out-of-pocket expenses, that we incur as a result of the commitments in the agreements are recorded in cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (other revenue, rather than in research and development expense.Other research and development costs related to the projects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (covered by the agreements, but which we would have incurred without the existence of such agreements are recorded in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (research and development expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 220.10 Td (There were 235 employees and independent contractors in research and development at December31, 2017 compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.10 Td (186 at December31, 2016.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (Sales and Marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 160.10 Td (Sales and marketing expense increased 23% from $7.1million in 2016 to $8.8 million in 2017. ) Tj ET Q q 0 0 0 rg BT 458.76 160.10 Td (The increase primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (reflects the reinforcement of the sales team beginning in mid-2016, including the hiring of the Chief Marketing Of) Tj ET Q q 0 0 0 rg BT 506.97 148.10 Td (ficer and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.12 136.10 Td (ice President ) Tj ET Q q 0 0 0 rg BT 109.81 136.10 Td (W) Tj ET Q q 0 0 0 rg BT 118.45 136.10 Td (orldwide Sales, and the marketing team beginning of 2017.) Tj ET Q q 0 0 0 rg BT 357.38 136.10 Td (While there were 28 employees and independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.10 Td (contractors in sales and marketing at December31, 2017 compared to 29 employees at December31, 2016, we had increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (headcount early in 2017 followed by a decrease in the latter part of 2017.) Tj ET Q endstream endobj 127 0 obj <> endobj 128 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (60) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (General and ) Tj ET Q q 0 0 0 rg BT 103.02 722.25 Td (Administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (General and administrative expense increased 7% from $6.3million in 2016 to $6.7 million in 2017 primarily due to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (increase in stock-based compensation and headcount. ) Tj ET Q q 0 0 0 rg BT 265.63 693.25 Td (There were 20 employees in general and administrative at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (2017 compared to 17 at December31, 2016. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 655.25 Td (Interest Income \(Expense\), Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 638.25 Td (Net interest expense increased to $4.6 million in 2017 compared to $3.7 million in 2016. Interest expense reflected a full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (year of interest on the convertible debt issued in ) Tj ET Q q 0 0 0 rg BT 243.61 626.25 Td (April 2016. Interest income was insignificant in both years.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 603.85 Td (Convertible debt amendment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 582.85 Td (On October 30, 2017, the convertible notes issued ) Tj ET Q q 0 0 0 rg BT 278.68 582.85 Td (April 14, 2015 and ) Tj ET Q q 0 0 0 rg BT 356.18 582.85 Td (April 27, 2016 were amended to extend the term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.85 Td (the notes issued in 2015 from ) Tj ET Q q 0 0 0 rg BT 169.49 570.85 Td (April 14, 2018 to ) Tj ET Q q 0 0 0 rg BT 240.33 570.85 Td (April 14, 2019 and the term of the notes issued in 2016 from ) Tj ET Q q 0 0 0 rg BT 484.73 570.85 Td (April 27, 2019 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.85 Td (April 27, 2020. In addition, the conversion price of the notes issued in 2016 was decreased from $2.71 to $2.25. Following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.85 Td (extension of the term, the change in fair value of the conversion options before and after the amendment was calculated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.85 Td ($3,418,000 and was recorded as financial expense. ) Tj ET Q q 0 0 0 rg BT 254.80 534.85 Td (The debt components on October 30, 2017 were remeasured to take into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.85 Td (account the new terms using the ef) Tj ET Q q 0 0 0 rg BT 188.16 522.85 Td (fective interest rate calculated at the date of issue of each convertible note. ) Tj ET Q q 0 0 0 rg BT 488.39 522.85 Td (The debts were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.85 Td (reduced by a total amount of $3,096,000 recorded in financial income. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 484.85 Td (Change in Fair V) Tj ET Q q 0 0 0 rg BT 121.47 484.85 Td (alue of Convertible Debt Embedded Derivative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 467.85 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 467.85 Td (April 2015, we issued convertible debt.For the first year of the debt term, the conversion price was subject to change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.85 Td (in certain circumstances if we issued equity at a price lower than the nominal conversion rate of $1.85.) Tj ET Q q 0 0 0 rg BT 462.51 455.85 Td (This option component ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.85 Td (of the convertible debt has been recorded as an embedded derivative at fair value in accordance with the provisions of IAS 39 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 431.85 Td (Financial Instruments: Recognition and Measur) Tj ET Q q 0 0 0 rg BT 242.43 431.85 Td (ement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.81 431.85 Td ( ) Tj ET Q q 0 0 0 rg BT 271.13 431.85 Td (The fair value was determined using a valuation model that requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.85 Td (judgment, including estimating the change in value of the Company at dif) Tj ET Q q 0 0 0 rg BT 344.25 419.85 Td (ferent dates and market yields applicable to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.85 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 407.85 Td (s straight debt \(without the conversion option\). ) Tj ET Q q 0 0 0 rg BT 280.96 407.85 Td (The assumptions used in calculating the value of the conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.85 Td (represent the Company) Tj ET Q q 0 0 0 rg BT 145.03 395.85 Td (s best estimates based on management) Tj ET Q q 0 0 0 rg BT 301.38 395.85 Td (s judgment and subjective future expectations. ) Tj ET Q q 0 0 0 rg BT 488.83 395.85 Td (As long as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.85 Td (conversion price was subject to change, the embedded derivative was revalued at each balance sheet date, with the change in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.85 Td (value recorded in financial income \(expense\). On ) Tj ET Q q 0 0 0 rg BT 248.86 371.85 Td (April 14, 2015, the initial fair value of the embedded derivative was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.85 Td ($4,055,000. ) Tj ET Q q 0 0 0 rg BT 99.32 359.85 Td (The embedded derivative value was fixed in ) Tj ET Q q 0 0 0 rg BT 278.42 359.85 Td (April 2016 at a value of $8,324,000 when the conversion price was no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.85 Td (longer subject to change. ) Tj ET Q q 0 0 0 rg BT 151.79 347.85 Td (The change of this fair value from December 31, 2015 of 2,233,000 was recorded as financial expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.85 Td (in the Consolidated Statement of Operations for the year ended December 31, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 318.85 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 318.85 Td (April 2016, we issued additional convertible debt. ) Tj ET Q q 0 0 0 rg BT 288.55 318.85 Td (The conversion price was based on the average market price during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.85 Td (the period beginning on ) Tj ET Q q 0 0 0 rg BT 146.71 306.85 Td (April 28, 2016 and ending on May 12, 2016, resulting in a short-term embedded derivative period. ) Tj ET Q q 0 0 0 rg BT 543.11 306.85 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.85 Td (final conversion price was $2.7126 per ) Tj ET Q q 0 0 0 rg BT 206.96 294.85 Td (ADS. ) Tj ET Q q 0 0 0 rg BT 231.78 294.85 Td (The fair value of the embedded derivative on the issuance date was calculated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.85 Td (be $2,597,000 and was recalculated to be $1,947,000 when the conversion rate was fixed on May 12, 2016. ) Tj ET Q q 0 0 0 rg BT 483.93 282.85 Td (The change of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.85 Td (fair value of $650,000 was recorded as financial income in the Consolidated Statement of Operations for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.85 Td (December 31, 2016. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 232.85 Td (Foreign Exchange Gain \(Loss\), Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 215.85 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 215.85 Td (e had a net foreign exchange loss of $1.4 million in 2017 compared to a net foreign exchange gain of $593,000 in 2016 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.85 Td (primarily due to movements in the U.S.dollar versus the euro.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 177.85 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.30 177.85 Td (ax Expense \(Benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 160.85 Td (In 2017, we recorded current tax expense of $273,000 arising from taxable income incurred at certain subsidiaries, and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.85 Td (deferred tax expense amounting to $27,000. In 2017, we recorded current tax expense of $272,000 arising from taxable income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.85 Td (incurred at certain subsidiaries, and deferred tax expense amounting to $12,000. Deferred tax assets have not been recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.85 Td (in 2017 or 2016 with respect to our losses as we have not generated taxable profits since beginning operations in 2004.) Tj ET Q endstream endobj 129 0 obj <> endobj 130 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (61) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Selected Quarterly Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (The following table presents our unaudited quarterly results of operations for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.25 705.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.25 705.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.69 705.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.69 705.25 Td (. ) Tj ET Q q 0 0 0 rg BT 448.50 705.25 Td (This unaudited quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (information has been prepared on the same basis as our audited Consolidated Financial Statements and includes all adjustments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (necessary for the fair presentation of the information for the quarters presented. ) Tj ET Q q 0 0 0 rg BT 369.28 681.25 Td (Y) Tj ET Q q 0 0 0 rg BT 375.50 681.25 Td (ou should read this table together with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (Consolidated Financial Statements and the related notes thereto included in this annual report. Our quarterly results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (operations will vary in the future. ) Tj ET Q q 0 0 0 rg BT 185.67 657.25 Td (The results of operations for any quarter are not necessarily indicative of results for the entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (year and are not necessarily indicative of any future results.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 634.45 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 576.95 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 576.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 576.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 576.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 576.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 576.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 576.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 576.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 576.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 576.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 576.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 576.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 576.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 576.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 576.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 576.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 576.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 546.95 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 546.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 546.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 546.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 546.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 546.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 546.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 546.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 546.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 546.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 546.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 546.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 546.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 546.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 546.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 546.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 546.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 516.95 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 516.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 516.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 516.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 516.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 516.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 516.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 516.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 516.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 516.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 516.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 516.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 516.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 516.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 516.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 516.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 516.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 486.95 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 486.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 486.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 486.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 486.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 486.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 486.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 486.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 486.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 486.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 486.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 486.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 486.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 486.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 486.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 486.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 486.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 446.95 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 446.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 446.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 446.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 446.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 446.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 446.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 446.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 446.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 446.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 446.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 446.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 446.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 446.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 446.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 446.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 446.95 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 416.95 121.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 416.95 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 416.95 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 416.95 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 416.95 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 416.95 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 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rg BT 333.45 615.18 Td (Thr) Tj ET Q q 0 0 0 rg BT 346.71 615.18 Td (ee months ended) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 594.20 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 179.50 602.18 Td (Mar) Tj ET Q q 0 0 0 rg BT 194.46 602.18 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 189.00 594.18 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.75 602.18 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.00 594.18 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.40 602.18 Td (Sept. 30, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.00 594.18 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.55 602.18 Td (Dec. 31, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.00 594.18 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.50 602.18 Td (Mar) Tj ET Q q 0 0 0 rg BT 390.46 602.18 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.00 594.18 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.75 602.18 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 594.18 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.40 602.18 Td (Sept. 30, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 594.18 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.55 602.18 Td (Dec. 31, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 594.18 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 581.20 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.15 581.18 Td (\(in thousands\) \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 567.52 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 552.52 Td (Product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 551.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 551.62 Td (9,640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 551.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.60 551.62 Td (10,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 551.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 551.62 Td (8,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 551.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 551.62 Td (8,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 551.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 551.62 Td (7,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 551.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 551.62 Td (9,921) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 551.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 551.62 Td (7,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 551.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 551.62 Td (3,856) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 537.52 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 536.62 Td (2,790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 536.62 Td (3,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 536.62 Td (2,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 536.62 Td (2,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 536.62 Td (3,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 536.62 Td (2,737) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 536.62 Td (2,759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 536.62 Td (2,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 522.52 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 522.52 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.60 521.62 Td (12,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.60 521.62 Td (13,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 521.62 Td (1) Tj ET Q q 0 0 0 rg BT 291.60 521.62 Td (1,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 521.62 Td (1) Tj ET Q q 0 0 0 rg BT 340.60 521.62 Td (1,317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 521.62 Td (1) Tj ET Q q 0 0 0 rg BT 389.60 521.62 Td (1,234) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 521.62 Td (12,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 521.62 Td (10,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 521.62 Td (6,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 506.62 Td (Cost of revenue) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 115.82 511.15 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.39 506.62 Td (:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 492.52 Td (Cost of product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 491.62 Td (5,989) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 491.62 Td (7,064) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 491.62 Td (5,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 491.62 Td (5,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 491.62 Td (5,861) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 491.62 Td (7,127) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 491.62 Td (6,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 491.62 Td (2,943) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 477.52 Td (Cost of other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.15 476.62 Td (589) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 476.62 Td (591) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 476.62 Td (615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 476.62 Td (602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 476.62 Td (689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.75 476.62 Td (549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 476.62 Td (664) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 476.62 Td (503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 462.52 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 462.52 Td (otal cost of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 452.52 Td (revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 451.62 Td (6,578) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 451.62 Td (7,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 451.62 Td (6,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 451.62 Td (6,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 451.62 Td (6,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 451.62 Td (7,676) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 451.62 Td (6,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 451.62 Td (3,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 437.52 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 436.62 Td (5,852) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 436.62 Td (5,562) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 436.62 Td (5,006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 436.62 Td (4,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 436.62 Td (4,684) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 436.62 Td (4,982) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 436.62 Td (3,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 436.62 Td (2,627) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 421.62 Td (Operating expenses) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 131.08 426.15 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.66 421.62 Td (:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 407.52 Td (Research and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 397.52 Td (development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 396.62 Td (6,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 396.62 Td (6,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 396.62 Td (6,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 396.62 Td (5,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 396.62 Td (7,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 396.62 Td (7,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 396.62 Td (6,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 396.62 Td (6,488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 382.52 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 381.62 Td (2,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 381.62 Td (2,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 381.62 Td (2,014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 381.62 Td (2,203) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 381.62 Td (2,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 381.62 Td (2,518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 381.62 Td (2,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 381.62 Td (2,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 367.52 Td (General and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 357.52 Td (administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 356.62 Td (1,41) Tj ET Q q 0 0 0 rg BT 211.15 356.62 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 356.62 Td (1,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 356.62 Td (1,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 356.62 Td (2,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 356.62 Td (1,971) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.25 356.62 Td (2,276) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 356.62 Td (2,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 356.62 Td (3,294) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 342.52 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 342.52 Td (otal operating) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 332.52 Td (expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.60 331.62 Td (10,101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 331.62 Td (9,649) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 331.62 Td (10,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 331.62 Td (10,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 331.62 Td (1) Tj ET Q q 0 0 0 rg BT 389.60 331.62 Td (1,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 331.62 Td (1) Tj ET Q q 0 0 0 rg BT 438.25 331.62 Td (1,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 331.62 Td (1) Tj ET Q q 0 0 0 rg BT 487.60 331.62 Td (1,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 331.62 Td (1) Tj ET Q q 0 0 0 rg BT 536.60 331.62 Td (1,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 317.52 Td (Operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.30 316.62 Td (\(4,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 316.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.30 316.62 Td (\(4,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.15 316.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.30 316.67 Td (\(5,563) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 316.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.30 316.67 Td (\(5,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 316.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 316.67 Td (\(7,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 316.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.95 316.62 Td (\(6,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 316.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 316.67 Td (\(7,929) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 316.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 316.67 Td (\(9,334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 316.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 302.52 Td (Financial income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 287.52 Td (Interest income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 277.52 Td (\(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.30 276.62 Td (\(1,038) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 276.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.30 276.62 Td (\(1,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.15 276.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.30 276.67 Td (\(1,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 276.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.30 276.67 Td (\(1,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 276.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 276.67 Td (\(1,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 276.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.95 276.62 Td (\(1,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 276.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 276.67 Td (\(1,278) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 276.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 276.67 Td (\(1,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 276.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 262.52 Td (Other financial expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.15 261.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 261.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 261.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 261.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 261.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 261.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 261.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 261.67 Td (\(400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 261.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 247.52 Td (Convertible debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 237.52 Td (amendments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.15 237.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 237.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 237.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.80 237.67 Td (\(322) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 237.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 237.62 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 449.75 237.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.80 237.67 Td (\(685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 237.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 237.62 Td (420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 223.52 Td (Foreign exchange gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 213.52 Td (\(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.80 212.62 Td (\(246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 212.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.80 212.62 Td (\(626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.15 212.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.80 212.67 Td (\(90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 212.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.80 212.67 Td (\(439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 212.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.80 212.67 Td (\(212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 212.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.75 212.62 Td (188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 212.62 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 212.62 Td (332) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 198.52 Td (Profit \(Loss\) before income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 188.52 Td (taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.30 187.62 Td (\(5,533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 187.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.30 187.62 Td (\(5,907) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.15 187.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.30 187.67 Td (\(6,855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 187.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.30 187.67 Td (\(7,565) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 187.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 187.67 Td (\(8,730) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 187.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.95 187.62 Td (\(8,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 187.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 187.67 Td (\(9,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 187.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 187.67 Td (\(10,613) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 187.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 173.52 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 163.52 Td (\(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.15 162.62 Td (71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 162.62 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 162.62 Td (65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 162.62 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 162.62 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 162.62 Td (74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 162.62 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 162.67 Td (\(1,139) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 162.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 148.52 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 147.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.30 147.62 Td (\(5,604) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.15 147.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 147.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.30 147.62 Td (\(5,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.15 147.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 147.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.30 147.67 Td (\(6,920) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 147.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 147.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.30 147.67 Td (\(7,646) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 147.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 147.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 147.67 Td (\(8,749) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 147.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 147.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.95 147.62 Td (\(8,090) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 147.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 147.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 147.67 Td (\(9,912) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 147.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 147.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 147.67 Td (\(9,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 147.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.45 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 119.45 Td (\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 119.45 Td (Includes shar) Tj ET Q q 0 0 0 rg BT 133.74 119.45 Td (e-based compensation as follows:) Tj ET Q endstream endobj 131 0 obj <> endobj 132 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (62) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 684.50 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 684.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 684.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 684.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 684.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 684.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 684.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 684.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 684.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 684.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 684.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 684.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 684.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 684.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 684.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 684.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 684.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 656.50 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 656.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 656.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 656.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 656.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 656.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 656.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 656.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 656.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 656.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 656.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 656.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 656.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 656.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 656.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 656.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 656.50 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175 716.5 m 220 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 716.5 m 269 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 716.5 m 318 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 716.5 m 367 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 716.5 m 416 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 716.5 m 465 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 716.5 m 514 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 716.5 m 563 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175 696.5 m 220 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 696.5 m 269 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 696.5 m 318 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 696.5 m 367 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 696.5 m 416 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 696.5 m 465 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 716.5 m 469 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 696.5 m 514 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 716.5 m 518 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 696.5 m 563 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175 656.5 m 220 656.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 656.5 m 269 656.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 656.5 m 318 656.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 656.5 m 367 656.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 656.5 m 416 656.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 656.5 m 465 656.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 656.5 m 514 656.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 656.5 m 563 656.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175 643.5 m 220 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175 641.5 m 220 641.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 643.5 m 269 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 641.5 m 269 641.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 643.5 m 318 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 641.5 m 318 641.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 643.5 m 367 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 641.5 m 367 641.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 643.5 m 416 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 641.5 m 416 641.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 643.5 m 465 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 641.5 m 465 641.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 643.5 m 514 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 641.5 m 514 641.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 643.5 m 563 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 641.5 m 563 641.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 720.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.45 720.58 Td (Thr) Tj ET Q q 0 0 0 rg BT 346.71 720.58 Td (ee months ended) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 700.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 179.50 708.58 Td (Mar) Tj ET Q q 0 0 0 rg BT 194.46 708.58 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 189.00 700.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.75 708.58 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.00 700.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.40 708.58 Td (Sept. 30, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.00 700.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.55 708.58 Td (Dec. 31, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.00 700.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.50 708.58 Td (Mar) Tj ET Q q 0 0 0 rg BT 390.46 708.58 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.00 700.58 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.75 708.58 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 700.58 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.40 708.58 Td (Sept. 30, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 700.58 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.55 708.58 Td (Dec. 31, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 700.58 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 688.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.15 688.58 Td (\(in thousands\) \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 675.07 Td (Cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 675.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 675.07 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 675.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 675.07 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 675.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 675.07 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 675.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 675.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 675.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 675.07 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 675.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 675.07 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 675.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 675.07 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 675.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 675.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 661.07 Td (Operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.15 661.07 Td (338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 661.07 Td (305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 661.07 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 661.07 Td (680) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 661.07 Td (529) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 661.07 Td (523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 661.07 Td (444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 661.07 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 647.07 Td (Share-based compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 647.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.15 647.07 Td (341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 647.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 647.07 Td (307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 647.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 647.07 Td (310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 647.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 647.07 Td (680) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 647.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 647.07 Td (532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 647.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 647.07 Td (526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 647.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 647.07 Td (446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 647.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 647.07 Td (308) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.00 Td (The following table sets forth a summary of our quarterly statement of operations as a percentage of total revenue:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 559.50 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 559.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 559.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 559.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 559.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 559.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 559.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 559.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 559.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 559.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 559.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 559.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 559.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 559.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 559.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 559.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 559.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 529.50 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 529.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 529.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 529.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 529.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 529.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 529.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 529.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 529.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 529.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 529.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 529.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 529.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 529.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 529.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 529.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 529.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 499.50 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 499.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 499.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 499.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 499.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 499.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 499.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 499.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 499.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 499.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 499.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 499.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 499.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 499.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 499.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 499.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 499.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 459.50 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 459.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 459.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 459.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 459.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 459.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 459.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 459.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 459.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 419.50 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 419.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 419.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 419.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 419.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 419.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 419.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 419.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 419.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 419.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 419.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 419.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 419.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 419.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 419.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 419.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 419.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 389.50 121.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 389.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 389.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 389.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 389.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 389.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 389.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 389.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 389.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 389.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 389.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 389.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 389.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 389.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 389.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 389.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 389.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 349.50 121.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 349.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 349.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 349.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 349.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 349.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 349.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 349.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 349.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 349.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 349.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 349.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 349.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 349.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 349.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 349.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 349.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 299.50 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 299.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 299.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 299.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 299.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 299.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 299.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 299.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 299.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 299.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 299.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 299.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 299.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 299.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 299.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 299.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 299.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 269.50 121.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 269.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 269.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 269.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 269.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 269.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 269.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 269.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 269.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 269.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 269.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 269.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 269.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 269.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 269.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 269.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 269.50 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 229.50 121.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 229.50 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.00 229.50 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 229.50 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 229.50 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 229.50 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 229.50 45.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 229.50 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 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419.5 m 416 419.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 419.5 m 465 419.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 419.5 m 514 419.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 419.5 m 563 419.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175 324.5 m 220 324.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 324.5 m 269 324.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 324.5 m 318 324.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 324.5 m 367 324.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 324.5 m 416 324.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 324.5 m 465 324.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 324.5 m 514 324.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 324.5 m 563 324.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175 299.5 m 220 299.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 299.5 m 269 299.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i 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/GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 81.5 m 318 81.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 83.5 m 367 83.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 81.5 m 367 81.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 83.5 m 416 83.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 81.5 m 416 81.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 83.5 m 465 83.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 81.5 m 465 81.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 83.5 m 514 83.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 81.5 m 514 81.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 83.5 m 563 83.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 81.5 m 563 81.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 597.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.45 597.73 Td (Thr) Tj ET Q q 0 0 0 rg BT 346.71 597.73 Td (ee months ended) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 576.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 179.50 584.73 Td (Mar) Tj ET Q q 0 0 0 rg BT 194.46 584.73 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 189.00 576.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.75 584.73 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.00 576.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.40 584.73 Td (Sept. 30, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.00 576.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.55 584.73 Td (Dec. 31, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.00 576.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.50 584.73 Td (Mar) Tj ET Q q 0 0 0 rg BT 390.46 584.73 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.00 576.73 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.75 584.73 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 576.73 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.40 584.73 Td (Sept. 30, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 576.73 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.55 584.73 Td (Dec. 31, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 576.73 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 563.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 563.73 Td (\(% of r) Tj ET Q q 0 0 0 rg BT 346.73 563.73 Td (evenue\) \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 550.07 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 535.07 Td (Product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 534.17 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 534.17 Td (77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 534.17 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 534.17 Td (77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 534.17 Td (68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 534.17 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 534.17 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.80 534.17 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 520.07 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 519.17 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 519.17 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 519.17 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 519.17 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 519.17 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 519.17 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 519.17 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.80 519.17 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 505.07 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 505.07 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.75 504.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.75 504.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.75 504.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.75 504.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.75 504.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.75 504.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.75 504.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.75 504.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 490.07 Td (Cost of revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 475.07 Td (Cost of product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 464.17 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 464.17 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 464.17 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 464.17 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 464.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 464.17 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 464.17 Td (59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.80 464.17 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 450.07 Td (Cost of other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.80 449.17 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.80 449.17 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.80 449.17 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 449.17 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.80 449.17 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 449.17 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.80 449.17 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.80 449.17 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 435.07 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 435.07 Td (otal cost of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 425.07 Td (revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 424.17 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 424.17 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 424.17 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 424.17 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 424.17 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 424.17 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 424.17 Td (65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.80 424.17 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 410.07 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 409.17 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 409.17 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 409.17 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 409.17 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 409.17 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 409.17 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 409.17 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.80 409.17 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 395.07 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 380.07 Td (Research and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 370.07 Td (development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 369.17 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 369.17 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 369.17 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 369.17 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 369.17 Td (67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 369.17 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 369.17 Td (66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.75 369.17 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 355.07 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 354.17 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 354.17 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 354.17 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 354.17 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 354.17 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 354.17 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 354.17 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.80 354.17 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 340.07 Td (General and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 330.07 Td (administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 329.17 Td (1) Tj ET Q q 0 0 0 rg BT 210.80 329.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 329.17 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 329.17 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 329.17 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 329.17 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 329.17 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 329.17 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.80 329.17 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 315.07 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 315.07 Td (otal operating) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 305.07 Td (expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 304.17 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 304.17 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 304.17 Td (93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 304.17 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.75 304.17 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 304.17 Td (94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.75 304.17 Td (1) Tj ET Q q 0 0 0 rg BT 499.75 304.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.75 304.17 Td (197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 290.07 Td (Operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.45 289.17 Td (\(34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.45 289.17 Td (\(31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.45 289.17 Td (\(49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.45 289.17 Td (\(50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.45 289.17 Td (\(65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.45 289.17 Td (\(55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.45 289.17 Td (\(77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.45 289.17 Td (\(154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.80 289.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 275.07 Td (Financial income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 260.07 Td (Interest income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 250.07 Td (\(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.45 249.17 Td (\(8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.80 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.45 249.17 Td (\(9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.80 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.45 249.17 Td (\(1) Tj ET Q q 0 0 0 rg BT 308.78 249.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.80 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.45 249.17 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.80 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.45 249.17 Td (\(1) Tj ET Q q 0 0 0 rg BT 406.78 249.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.80 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.45 249.17 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.45 249.17 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.45 249.17 Td (\(27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.80 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 235.07 Td (Other financial expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 234.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 234.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 234.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 234.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 234.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 234.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 234.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.45 234.17 Td (\(7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.80 234.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 220.07 Td (Convertible debit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 210.07 Td (amendments) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 204.75 210.42 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 253.75 210.42 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 302.75 210.42 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 353.60 210.42 Td (\(3) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 362.80 210.42 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 400.75 210.42 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 449.75 210.42 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 498.75 210.42 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 553.30 210.42 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 196.07 Td (Change in the fair value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 186.07 Td (of convertible debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 176.07 Td (embedded derivative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.80 177.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 177.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 177.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 177.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 177.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 177.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 177.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.80 177.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 163.07 Td (Foreign exchange gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 153.07 Td (\(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.45 152.17 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.80 152.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.45 152.17 Td (\(5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.80 152.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.45 152.17 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.80 152.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.45 152.17 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.80 152.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.45 152.17 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.80 152.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 152.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.80 152.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.80 152.17 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 138.07 Td (Profit \(Loss\) before income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 128.07 Td (taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.45 127.17 Td (\(44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.80 127.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.45 127.17 Td (\(45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.80 127.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.45 127.17 Td (\(61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.80 127.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.45 127.17 Td (\(67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.80 127.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.45 127.17 Td (\(78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.80 127.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.45 127.17 Td (\(64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 127.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.45 127.17 Td (\(95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 127.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.45 127.17 Td (\(176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.80 127.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 113.07 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 103.07 Td (\(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.80 102.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.80 102.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 102.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 102.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.80 102.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 102.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.80 102.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.45 102.17 Td (\(19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.80 102.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 88.07 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.45 87.17 Td (\(45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.80 87.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.45 87.17 Td (\(45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.80 87.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.45 87.17 Td (\(61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.80 87.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.45 87.17 Td (\(68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.80 87.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.45 87.17 Td (\(78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.80 87.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.45 87.17 Td (\(64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 87.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.45 87.17 Td (\(96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 87.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.45 87.17 Td (\(156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.80 87.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 133 0 obj <> endobj 134 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (Product revenues decreased from the second half of 2017 \(except in the second quarter of 2018\) due to weakness in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (broadband business. ) Tj ET Q q 0 0 0 rg BT 135.42 710.10 Td (This weakness primarily related to subscription pricing changes made by a lar) Tj ET Q q 0 0 0 rg BT 447.09 710.10 Td (ge U.S. operator impacting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (end product sales for two of our customers in 2017 and to lower sales in emer) Tj ET Q q 0 0 0 rg BT 360.08 698.10 Td (ging markets in 2018 from our decision in earlier ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (years to focus our product development ef) Tj ET Q q 0 0 0 rg BT 218.15 686.10 Td (forts on the IoT) Tj ET Q q 0 0 0 rg BT 280.46 686.10 Td ( business rather than on a second-generation Cat 6 product of) Tj ET Q q 0 0 0 rg BT 525.20 686.10 Td (fer) Tj ET Q q 0 0 0 rg BT 535.75 686.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (These quarterly decreases were partially of) Tj ET Q q 0 0 0 rg BT 221.17 674.10 Td (fset by strong growth of the IoT) Tj ET Q q 0 0 0 rg BT 348.75 674.10 Td ( business with revenue from Cat 1 chipset sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (the ramp up of the Cat M products during the first half of 2018. Cat M revenue stalled during the second half of the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (because of a delay in the market. ) Tj ET Q q 0 0 0 rg BT 183.15 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 191.79 650.10 Td (e continue to experience volatility in quarterly revenue as many of the new design wins ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (either ramp with some delay versus expectations, or do not ramp smoothly over time.Other revenue has an inherent fluctuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (due to the timing of the execution of software licenses and development services.Other revenue in first quarter of 2018 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (unusually high due to a number of new development services starting and more license revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 593.10 Td (Cost of product revenue in general increased and decreased, consistent with the increases and decreases in product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (revenue quarter to quarter) Tj ET Q q 0 0 0 rg BT 152.50 581.10 Td (. Cost of other revenue remained flat in 2018 compared to 2017; incremental costs incurred by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (Company and related to development service agreements negotiated with customers and partners to develop services are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (recorded in cost of other revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 536.10 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 114.70 536.10 Td (gin remained below 45% in 2017 and 2018 \(except in the first quarter of 2017 and in the last quarter 2018\) as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (we continued to generate a significant portion of our revenues from our L) Tj ET Q q 0 0 0 rg BT 342.93 524.10 Td (TE modules with lower mar) Tj ET Q q 0 0 0 rg BT 454.94 524.10 Td (gins than our chip ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (solutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 491.10 Td (Research and development expenses increased in the third quarter of 2017 reflecting lower capitalized costs and higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (staf) Tj ET Q q 0 0 0 rg BT 63.76 479.10 Td (f costs. Fourth quarter 2017 research and development expenses decreased, primarily due to higher recognition of grants and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (research tax credit. Research and development expenses decreased from the first quarter of 2018 due to a reor) Tj ET Q q 0 0 0 rg BT 488.02 467.10 Td (ganization in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (which 21 technical support engineers were transferred from engineering to customer support in Sales and Marketing. ) Tj ET Q q 0 0 0 rg BT 519.45 455.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (decrease from the third quarter of 2018 reflected seasonality in the third quarter) Tj ET Q q 0 0 0 rg BT 367.30 443.10 Td (, decrease on headcount and a weaker euro ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (compared to the U.S. dollar) Tj ET Q q 0 0 0 rg BT 159.48 431.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 410.10 Td (Sales and marketing expense increased in 2018 compared to 2017. ) Tj ET Q q 0 0 0 rg BT 344.35 410.10 Td (The increase reflects the reor) Tj ET Q q 0 0 0 rg BT 460.21 410.10 Td (ganization in 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 389.10 Td (General and administrative expense has tended to increase over time. Fourth quarter of 2017 increased significantly) Tj ET Q q 0 0 0 rg BT 535.47 389.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (primarily due to stock based compensation expenses related to grants awarded during the quarter) Tj ET Q q 0 0 0 rg BT 436.32 377.10 Td (. Fourth quarter of 2018 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (increased due to bad debt expense and accrual of the expected costs to be incurred related to the ongoing securities class action ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (lawsuit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 332.10 Td (Interest expense increased in the fourth quarter of 2017 due to the impact of the convertible debt amendments signed on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (October 31, 2017. ) Tj ET Q q 0 0 0 rg BT 124.03 320.10 Td (The fourth quarter of 2018 reflects the impact of the convertible debt amendments signed on September 27, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (2018, an increase of interest expense due to an additional convertible debt issued in September 27, 2018 and a venture debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (contracted on October 26, 2018. Interest income was insignificant. Foreign exchange gains and losses resulted primarily from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (the change in the U.S. dollar to euro exchange rate and remeasurement of euro-based assets and liabilities at settlement or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (balance sheet date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 251.10 Td (Income tax income increased in the fourth quarter of 2018 due to the recognition of deferred tax assets as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (deferred tax liabilities recognized \(through equity\) upon the separation between the equity and debt components of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (convertible debt and debt issued with warrants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 206.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 206.10 Td (e have yet to experience an established pattern of seasonality) Tj ET Q q 0 0 0 rg BT 325.00 206.10 Td (. However) Tj ET Q q 0 0 0 rg BT 366.25 206.10 Td (, business activities in ) Tj ET Q q 0 0 0 rg BT 455.97 206.10 Td (Asia generally slow-down ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (in the first quarter of each year during the Chinese New ) Tj ET Q q 0 0 0 rg BT 274.32 194.10 Td (Y) Tj ET Q q 0 0 0 rg BT 280.54 194.10 Td (ear period, which could harm our sales and results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (during the period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 150.17 Td (B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 150.33 Td (Liquidity and Capital Resources) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (Sour) Tj ET Q q 0 0 0 rg BT 69.88 128.10 Td (ces of Liquidity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 111.10 Td (Our cash and cash equivalents and short-term investments were $12.1 million at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.47 111.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.06 111.10 Td (. ) Tj ET Q q 0 0 0 rg BT 479.88 111.10 Td (W) Tj ET Q q 0 0 0 rg BT 488.51 111.10 Td (e believe that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (available cash and cash equivalents, proceeds from government funding of research programs and proceeds from expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (financing activities \(from institutional or strategic investors, or from the capital markets\) will be suf) Tj ET Q q 0 0 0 rg BT 448.38 87.10 Td (ficient to fund our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (operations for at least the next 12 months. ) Tj ET Q endstream endobj 135 0 obj <> endobj 136 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 742.10 Td (Since inception, we have financed our operations primarily through proceeds from the issues of our shares, convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (notes and venture debt, which totaled 54.7million \($73.1 million\) from 2004 to the end of 2010; from the $59.1 million in net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (proceeds from our initial public of) Tj ET Q q 0 0 0 rg BT 186.78 718.10 Td (fering on the New ) Tj ET Q q 0 0 0 rg BT 261.38 718.10 Td (Y) Tj ET Q q 0 0 0 rg BT 267.61 718.10 Td (ork Stock Exchange in ) Tj ET Q q 0 0 0 rg BT 360.36 718.10 Td (April 201) Tj ET Q q 0 0 0 rg BT 398.60 718.10 Td (1 and from $96.4 million in net proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (from our follow-on public of) Tj ET Q q 0 0 0 rg BT 164.85 706.10 Td (ferings in February and November 2013, September 2016, June 2017 and January 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 685.10 Td (In June 2014, the Company entered into a factoring agreement with a French financial institution whereby a line of credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 673.10 Td (was made available equal to 80-90% of the face value of accounts receivable from qualifying customers. ) Tj ET Q q 0 0 0 rg BT 470.54 673.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 661.10 Td (transfers to the finance company all invoices issued to qualifying customers and the customers are instructed to settle the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 649.10 Td (invoices directly with the finance company) Tj ET Q q 0 0 0 rg BT 221.29 649.10 Td (. ) Tj ET Q q 0 0 0 rg BT 225.74 649.10 Td (At December 31, 2018, $10.3 million had been drawn on the line of credit and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 637.10 Td (recorded as a current borrowing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 616.10 Td (In October 2014, Bpifrance, the financial agency of the French government, provided funding to the Company in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.10 Td (context of a long-term research project, estimated to be completed over a 3-year period. ) Tj ET Q q 0 0 0 rg BT 402.50 604.10 Td (The total funding will amount to 7.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (million \($9.0 million\) comprising a portion in the form of a grant \(3.0 million or $3.8 million\) and a portion in the form of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.10 Td (loan \(4.0 million or $5.2 million\). ) Tj ET Q q 0 0 0 rg BT 191.81 580.10 Td (The funding will be paid in installments after milestones defined in the contract.) Tj ET Q q 0 0 0 rg BT 514.88 580.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.10 Td (advance will be repaid from March 31, 2019 to September 30, 2022 and bears interests at a 1.53% fixed contractual rate. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (2014, the Company received 2.1 million \($2.7 million\) as a grant and 1.0 million \($1.2million\) as a loan. In 2016 and 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (the Company received 0.6 million and 1 million respectively \($0.6 million and $1.1 million respectively\) as a loan. In 2018, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (the Company received 0.4 million \($0.5 million\) as a grant and 0.9 million \($1.1 million\) as a loan. ) Tj ET Q q 0 0 0 rg BT 458.41 532.10 Td (The final funding is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (expected to be received in the first quarter 2019 for approximately $1.1 million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 499.10 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 499.10 Td (April 2015, we completed the sale of a $12 million convertible note in a private placement transaction. ) Tj ET Q q 0 0 0 rg BT 497.08 499.10 Td (The convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.10 Td (note matures in ) Tj ET Q q 0 0 0 rg BT 113.10 487.10 Td (April 2021 \(after the amendments signed in October 2017 and September 2018 to extend the term\) and bears ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.10 Td (interest at a rate of 7% per year) Tj ET Q q 0 0 0 rg BT 174.31 475.10 Td (, paid in kind annually on the anniversary of the issuance of the note. ) Tj ET Q q 0 0 0 rg BT 452.01 475.10 Td (After amendment in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 Td (September 2018, the note is convertible, at the holder) Tj ET Q q 0 0 0 rg BT 263.70 463.10 Td () Tj ET Q q 0 0 0 rg BT 266.48 463.10 Td (s option, into the company) Tj ET Q q 0 0 0 rg BT 375.63 463.10 Td (s ) Tj ET Q q 0 0 0 rg BT 381.47 463.10 Td (ADSs at a conversion rate of 588.2353 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.10 Td (ADSs for each $1,000 principal amount of the note, subject to certain adjustments, which equates to an initial conversion price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.10 Td (of $1.70 per ) Tj ET Q q 0 0 0 rg BT 100.05 439.10 Td (ADS. In addition, we issued warrants to purchase 1,800,000 shares to the holder of this note in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (the September 2018 amendment with an exercise price of $1.70.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 406.10 Td (In September 2015, the Company received two loans from the financial agency of the French government for a total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (amount of 2 million \($2.2 million\). One loan of 1 million bears interest at 5.24% per year) Tj ET Q q 0 0 0 rg BT 416.52 394.10 Td (, paid quarterly; the second loan of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (1 million is interest-free. ) Tj ET Q q 0 0 0 rg BT 155.68 382.10 Td (The interest-free loan has been revalued using the 5.24% interest rate payable on the other loan. Both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (loans have seven-year terms with the principal being amortized on a quarterly basis beginning in September 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 349.10 Td (In January 2016, Bpifrance provided a funding to the Company for a new long-term research project, estimated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.10 Td (completed over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.86 337.10 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.86 337.10 Td (-month period. ) Tj ET Q q 0 0 0 rg BT 192.61 337.10 Td (The total of the funding amounts to 2.1 million \($2,3 million\) comprising a portion in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (form of a grant \(60.7 million or $0.7 million\) and a portion in the form of a for) Tj ET Q q 0 0 0 rg BT 368.97 325.10 Td (givable loan \(1.4 million or $1,6 million\). ) Tj ET Q q 0 0 0 rg BT 543.22 325.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (funding will be paid in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.10 313.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.76 313.10 Td ( installments: the first tranche at the contract signature date, the second, the third and the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (installments after milestones defined in the contract. ) Tj ET Q q 0 0 0 rg BT 260.92 301.10 Td (The for) Tj ET Q q 0 0 0 rg BT 290.45 301.10 Td (givable loan advance will be repaid, except if the project is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (commercial failure, from July 1, 2020 to July 1, 2024 and bears interests at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.87 289.10 Td (1.17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.70 289.10 Td ( fixed contractual rate. In 2016 and 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (the Company received 0.3 million and 0.2 million, respectively \($0.4 million and $0.2 million, respectively\) as grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (proceeds. In 2017, the Company 1.2 million \($1.4 million\) as a loan. ) Tj ET Q q 0 0 0 rg BT 336.22 265.10 Td (The next funding is expected to be received by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (second half of 2019 for approximately $0.4 million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 232.10 Td (On ) Tj ET Q q 0 0 0 rg BT 87.67 232.10 Td (April 27, 2016, we raised net proceeds of $7.0 million from the sale of convertible notes to certain institutional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.10 Td (investors in a private placement transaction. ) Tj ET Q q 0 0 0 rg BT 227.87 220.10 Td (The convertible notes mature in ) Tj ET Q q 0 0 0 rg BT 357.00 220.10 Td (April 2020 \(after the amendment signed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.10 Td (October 2017 to extend the term of one year\) and bear interest at a rate of 7% per year) Tj ET Q q 0 0 0 rg BT 393.94 208.10 Td (, paid in kind annually on the anniversary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (of the issuance of the note. ) Tj ET Q q 0 0 0 rg BT 159.01 196.10 Td (The notes are convertible, at the holder) Tj ET Q q 0 0 0 rg BT 315.70 196.10 Td () Tj ET Q q 0 0 0 rg BT 318.48 196.10 Td (s option, into the Company) Tj ET Q q 0 0 0 rg BT 429.87 196.10 Td (s ) Tj ET Q q 0 0 0 rg BT 435.71 196.10 Td (ADSs at $2.25. \(the initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (conversion price was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.41 184.10 Td ($2.7126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.91 184.10 Td ( per ) Tj ET Q q 0 0 0 rg BT 186.13 184.10 Td (ADS and was decreased to $2.25 per ) Tj ET Q q 0 0 0 rg BT 335.54 184.10 Td (ADS in the amendment signed in October 2017\). On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.10 Td (October 30, 2018 and in connection with entering into the bond issuance agreement, the Company retired convertible notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.10 Td (issued on ) Tj ET Q q 0 0 0 rg BT 88.95 160.10 Td (April 27, 2016 and due on ) Tj ET Q q 0 0 0 rg BT 195.88 160.10 Td (April 27, 2020, with a principal amount of $1 million, by paying the principal and accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (interest due as of October 30, 2018 to the noteholder) Tj ET Q q 0 0 0 rg BT 259.45 148.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 127.10 Td (On September 27, 2018, the Company sold a convertible note in the principal amount of $4.5 million to an institutional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.10 Td (investor in a private placement transaction. ) Tj ET Q q 0 0 0 rg BT 226.48 115.10 Td (The convertible note has the same terms as the convertible note issued in 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td (after amendments: matures in ) Tj ET Q q 0 0 0 rg BT 172.52 103.10 Td (April 2021, bears interest at a rate of 7% per year) Tj ET Q q 0 0 0 rg BT 369.53 103.10 Td (, paid in kind annually on ) Tj ET Q q 0 0 0 rg BT 473.69 103.10 Td (April 14th, and is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (convertible, at the holder) Tj ET Q q 0 0 0 rg BT 149.83 91.10 Td () Tj ET Q q 0 0 0 rg BT 152.61 91.10 Td (s option, into the Company) Tj ET Q q 0 0 0 rg BT 264.00 91.10 Td (s ) Tj ET Q q 0 0 0 rg BT 269.84 91.10 Td (ADSs at a conversion rate of $1.70 per ) Tj ET Q q 0 0 0 rg BT 427.30 91.10 Td (ADS. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.10 Td (All remaining convertible notes issued in 2015, 2016 and 2018 are held by one institutional investor) Tj ET Q q 0 0 0 rg BT 473.58 70.10 Td (, Nokomis Capital.) Tj ET Q endstream endobj 137 0 obj <> endobj 138 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 742.10 Td (On October 26, 2018, the Company entered into a bond issuance agreement with Harbert European Specialty Lending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (Company II S.a.r) Tj ET Q q 0 0 0 rg BT 117.83 730.10 Td (.l \(the Harbert\) whereby Harbert agreed to loan to the Company 12 million \($13.8 million\), at a stated rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (of interest of 9%, to be repaid monthly over 42 months \(the Bond\). ) Tj ET Q q 0 0 0 rg BT 330.92 718.10 Td (The Bond is secured by various assets of the Company) Tj ET Q q 0 0 0 rg BT 549.40 718.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (including intellectual property) Tj ET Q q 0 0 0 rg BT 169.92 706.10 Td (, and is senior to all the convertible notes. ) Tj ET Q q 0 0 0 rg BT 341.00 706.10 Td (Also, on October 26, 2018, the Company issued to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (Harbert, for a total subscription price of $1.00, warrants to acquire 816,716 ) Tj ET Q q 0 0 0 rg BT 352.19 694.10 Td (ADSs at an exercise price of $1.34 per ) Tj ET Q q 0 0 0 rg BT 508.53 694.10 Td (ADS. Such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (warrants are exercisable at any time and expire October 26, 2028. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 661.10 Td ( On February 18, 2019, a new strategic investor subscribed for warrants for a total subscription price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 649.10 Td ($8.4 million in support of accelerating Sequans) Tj ET Q q 0 0 0 rg BT 241.21 649.10 Td ( existing 5G product roadmap. Upon the closing of this transaction, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 637.10 Td (Company issued to the investor a total of 9,392,986 warrants. ) Tj ET Q q 0 0 0 rg BT 297.89 637.10 Td (The warrants are exercisable upon 61 days) Tj ET Q q 0 0 0 rg BT 470.96 637.10 Td ( notice to Sequans at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.10 Td (an exercise price of 0.02 per share/ADS into 9,392,986 of our ordinary shares/ADS. ) Tj ET Q q 0 0 0 rg BT 392.84 625.10 Td (The warrants expire 15 years from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 613.10 Td (issuance date. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (Cash Flows) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 570.10 Td (The following table summarizes our cash flows for the periods indicated:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 559.30 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 512.80 278.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 512.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 512.80 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 512.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 512.80 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 512.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 512.80 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 484.80 278.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 484.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 484.80 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 484.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 484.80 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 484.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 484.80 69.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 536.8 m 401 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 536.8 m 405 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 536.8 m 474 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 536.8 m 478 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 536.8 m 547 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 524.8 m 401 524.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 524.8 m 474 524.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 524.8 m 547 524.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 457.8 m 401 457.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 455.8 m 401 455.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 457.8 m 474 457.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 455.8 m 474 455.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 457.8 m 547 457.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 455.8 m 547 455.8 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 540.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.60 540.88 Td (Y) Tj ET Q q 0 0 0 rg BT 400.93 540.88 Td (ear) Tj ET Q q 0 0 0 rg BT 411.52 540.88 Td ( ended December) Tj ET Q q 0 0 0 rg BT 470.47 540.88 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 528.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.00 528.88 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.00 528.88 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.00 528.88 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 516.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.65 516.88 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 503.37 Td (Net cash used in operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 503.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.30 503.42 Td (\(15,589) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 503.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 503.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.30 503.42 Td (\(28,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 503.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.50 503.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.30 503.42 Td (\(22,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 503.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 489.37 Td (Net cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 489.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.30 489.42 Td (\(5,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 489.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 489.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.30 489.42 Td (\(6,477) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 489.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.50 489.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.30 489.42 Td (\(8,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 489.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 475.37 Td (Net cash from financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 475.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 475.37 Td (32,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 475.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.65 475.37 Td (17,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.50 475.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.65 475.37 Td (40,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 461.37 Td (Net increase \(decrease\) in cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 461.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 461.37 Td (1) Tj ET Q q 0 0 0 rg BT 374.65 461.37 Td (1,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 461.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.30 461.42 Td (\(17,265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 461.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.50 461.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.65 461.37 Td (9,140) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 431.30 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 166.93 431.30 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 414.30 Td (Net cash used in operating activities during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.29 414.30 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.29 414.30 Td ( was $22.8 million, reflecting a net loss \(before income tax\) of $37.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.30 Td (million, increases in inventories of $0.9 million and decreases in trade and other receivables of $5.8 million, in research tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.30 Td (credit receivable of $0.6 million, in trade payables and other liabilities of $3.9 million and in government grant advances and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.30 Td (deferred revenue of $1.1 million. ) Tj ET Q q 0 0 0 rg BT 183.99 378.30 Td (These and other smaller working capital adjustments were a net $0.1 million use of cash.In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.30 Td (addition, there were several non-cash char) Tj ET Q q 0 0 0 rg BT 218.13 366.30 Td (ges, including depreciation and amortization of $6.2 million, non-cash interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.30 Td (expense of $5.4 million and share-based compensation expense of $1.8 million during the period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 337.30 Td (Net cash used in operating activities during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.29 337.30 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.29 337.30 Td ( was $28.6 million, reflecting a net loss \(before income tax\) of $25.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.30 Td (million, increases in trade and other receivables of $7.1 million and in research tax credit receivable of $1.1 million, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.30 Td (decreases in inventories of $1.3 million, in trade payables and other liabilities of $5.9 million, in government grant advances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.30 Td (and deferred revenue of $2.5 million. ) Tj ET Q q 0 0 0 rg BT 200.93 301.30 Td (These and other smaller working capital adjustments were a net $15.6 million use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.30 Td (cash.In addition, there were several non-cash char) Tj ET Q q 0 0 0 rg BT 251.73 289.30 Td (ges, including depreciation and amortization of $5.6 million, non-cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.30 Td (interest expense of $4.6 million and share-based compensation expense of $1.6 million during the period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 260.30 Td (Net cash used in operating activities during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.29 260.30 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.29 260.30 Td ( was $15.6 million, reflecting a net loss \(before income tax\) of $24.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.30 Td (million, increases in inventories of $4.6 million and in trade payables and other liabilities of $2.4 million and decreases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.30 Td (government grant advances and deferred revenue of $1.8 million, in research tax credit receivable of $1.0 million and in trade ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.30 Td (and other receivables of $0.7 million. ) Tj ET Q q 0 0 0 rg BT 201.50 224.30 Td (These and other smaller working capital adjustments were a net $2.4 million use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.30 Td (cash.In addition, there were several non-cash char) Tj ET Q q 0 0 0 rg BT 251.73 212.30 Td (ges, including depreciation and amortization of $5.3 million, the change in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.30 Td (the fair value of the convertible debt embedded derivative of $1.6 million, non-cash interest expense of $3.7 million and share-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.30 Td (based compensation expense of $1.1 million during the period.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 162.30 Td (Cash Used in Investing ) Tj ET Q q 0 0 0 rg BT 147.48 162.30 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 145.30 Td (Cash used in investing activities during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.48 145.30 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.48 145.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.48 145.30 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.48 145.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.92 145.30 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.92 145.30 Td (, consisted primarily of purchases of property and equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.30 Td (and intangible assets of $5.4 million, $4.2 million and $5.4 million, respectively) Tj ET Q q 0 0 0 rg BT 369.36 133.30 Td (, and of capitalized development expenditures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.30 Td (of $3.8 million, $2.2 million and $22,000, respectively) Tj ET Q q 0 0 0 rg BT 267.71 121.30 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 95.30 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 168.61 95.30 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 74.30 Td (Net cash provided by financing activities was $40.7 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.84 74.30 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.84 74.30 Td (, reflecting $20.8 million in net proceeds from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.30 Td (follow-on public of) Tj ET Q q 0 0 0 rg BT 127.08 62.30 Td (fering in January 2018, $13.6 million in net proceeds from issuance of venture debt, $4.4 million from net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.30 Td (proceeds from the issuance of convertible debt, $1.6 million proceeds from research project financing and $2.9 million net ) Tj ET Q endstream endobj 139 0 obj <> endobj 140 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (proceeds drawn on the factoring line of credit, of) Tj ET Q q 0 0 0 rg BT 245.08 742.10 Td (fset by a $1.2 million repayment of convertible debt and accrued interest, $0.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (million repayment of government loan and $0.8 million payment of interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 709.10 Td (Net cash provided by financing activities was $17.8 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.84 709.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.84 709.10 Td (, reflecting $14.9 million in net proceeds from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 697.10 Td (follow-on public of) Tj ET Q q 0 0 0 rg BT 127.08 697.10 Td (fering in June 2017, $1.0 million from issue of warrants and exercise of stock options/warrants, and $2.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 685.10 Td (million proceeds from research project financing, of) Tj ET Q q 0 0 0 rg BT 257.85 685.10 Td (fset by $0.3 million net repayment on the factoring line of credit and by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 673.10 Td ($0.3 million payment of interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 652.10 Td (Net cash provided by financing activities was $32.8 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.84 652.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.84 652.10 Td (, reflecting $23.6 million in net proceeds from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.10 Td (follow-on public of) Tj ET Q q 0 0 0 rg BT 127.08 640.10 Td (fering in September 2016, $6.9 million net proceeds from the issuance of convertible debt, $1.2 million net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.10 Td (proceeds drawn on the factoring line of credit, and $1.0 million proceeds from government project financing, of) Tj ET Q q 0 0 0 rg BT 496.67 628.10 Td (fset by payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.10 Td (of interest and final repayment of finance lease liabilities.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (Operating and Investing Requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 573.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 573.10 Td (e expect our operating expenses to be slightly lower in each quarter of 2019 compared to the average quarterly rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.10 Td (2018, in particular due to the weaker euro compared to the U.S. dollar already experienced in 2019 compared to 2018 and due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.10 Td (to headcount reductions made in late 2018.) Tj ET Q q 0 0 0 rg BT 223.71 549.10 Td (W) Tj ET Q q 0 0 0 rg BT 232.35 549.10 Td (e expect that investments in tangible and intangible assets are likely to decrease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.10 Td (slightly due to the timing and nature of product development activity expected in 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 516.10 Td (Based on our current plans and after giving ef) Tj ET Q q 0 0 0 rg BT 256.59 516.10 Td (fect to our sale of warrants to a new strategic investor in February 2019, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.10 Td (currently believe that our available capital resources will be adequate to satisfy our cash requirements at least for 12 months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.10 Td (from the date of this annual report. If our plans change, or if we do not achieve profits or if our profitability is significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.10 Td (lower than anticipated, we may need additional financing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 459.10 Td (If our available cash balances are insuf) Tj ET Q q 0 0 0 rg BT 228.80 459.10 Td (ficient to satisfy our liquidity requirements, we may seek to sell equity or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (convertible debt securities or enter into a credit facility) Tj ET Q q 0 0 0 rg BT 268.21 447.10 Td (, which may contain restrictive covenants. ) Tj ET Q q 0 0 0 rg BT 439.08 447.10 Td (The sale of equity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (convertible debt securities may result in dilution to our shareholders and those securities may have rights senior to those of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (ADSs. If we raise additional funds through the issue of convertible debt securities, these securities could contain covenants that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (would restrict our operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.10 Td (Our estimates of the period of time through which our financial resources will be adequate to support our operations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (the costs to support research and development and our sales and marketing activities are forward-looking statements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (involve risks and uncertainties, and actual results could vary materially and negatively as a result of a number of factors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (including the factors discussed in Item 3.DRisk Factors. ) Tj ET Q q 0 0 0 rg BT 294.83 354.10 Td (W) Tj ET Q q 0 0 0 rg BT 303.46 354.10 Td (e have based our estimates on assumptions that may prove to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (wrong, and we could utilize our available capital resources sooner than we currently expect.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 321.10 Td (Our short and long-term capital requirements will depend on many factors, including the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 309.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 309.10 Td (our ability to generate cash from operations or to minimize the cash used in operations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 297.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 297.10 Td (our ability to control our costs;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 285.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 285.10 Td (the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 273.10 Td (participating in litigation-related activities; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 261.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 261.10 Td (the acquisition of businesses, products and technologies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 229.28 Td (C) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.72 229.28 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 229.33 Td (Research and Development, Patents and Licenses, etc.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 204.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 204.10 Td (e engage in substantial research and development ef) Tj ET Q q 0 0 0 rg BT 289.93 204.10 Td (forts to develop new products and integrate additional capabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (into our core products. Our research and development team of 203 employees and consultants, at December31, 2018, includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.10 Td (experienced semiconductor designers, software developers and test engineers. Key areas of expertise include wireless systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.10 Td (architecture, SoC architecture, digital and RF IC design, digital signal processing, embedded real-time and application software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (design, protocol stack development, hardware and software integration, quality assurance test development and scripting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.10 Td (field testing. Our team has significant experience in the principal wireless domains, including 2G, 3G, 4G L) Tj ET Q q 0 0 0 rg BT 480.14 144.10 Td (TE, 5G and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (wireless communication technologies such as ) Tj ET Q q 0 0 0 rg BT 234.00 132.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.04 132.10 Td (i-Fi. Nearly 80% of our employee engineers have more than 10 years of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.10 Td (experience in their specific domain, and 94% of our engineers hold masters degrees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 99.10 Td (The ability to successfully integrate and mass-produce digital and/or RF functionality in advanced process technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (with acceptable yields is a significant industry challenge. Due to the robustness of our silicon design and verification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (methodologies, we have demonstrated competency in repeatedly achieving production-capable products with the first version of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.10 Td (our chip designs, reducing time to market and avoiding costs associated with additional design revisions. Each of our first three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 51.10 Td (generations of 40nm L) Tj ET Q q 0 0 0 rg BT 139.39 51.10 Td (TE baseband and our first four 65nm L) Tj ET Q q 0 0 0 rg BT 294.82 51.10 Td (TE RF products, as well as our earlier 65nm ) Tj ET Q q 0 0 0 rg BT 474.05 51.10 Td (W) Tj ET Q q 0 0 0 rg BT 483.08 51.10 Td (iMAX SoC ) Tj ET Q endstream endobj 141 0 obj <> endobj 142 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (products, were production-ready from the initial version of the design. ) Tj ET Q q 0 0 0 rg BT 333.13 722.10 Td (W) Tj ET Q q 0 0 0 rg BT 341.77 722.10 Td (e believe this experience positions us well for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (migration to denser process geometries such as 28nm, 22nm or 16nm for our future high-end products and for further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (integration for low cost and low power in our future chipsets for IoT) Tj ET Q q 0 0 0 rg BT 322.58 698.10 Td (.Looking ahead to future generations such as 5G, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (expect this competency will serve us well as we develop ever more complex designs in more advanced process technologies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 665.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 665.10 Td (e design our products with careful attention to quality) Tj ET Q q 0 0 0 rg BT 295.88 665.10 Td (, flexibility) Tj ET Q q 0 0 0 rg BT 339.67 665.10 Td (, cost-and power) Tj ET Q q 0 0 0 rg BT 405.83 665.10 Td (-ef) Tj ET Q q 0 0 0 rg BT 416.75 665.10 Td (ficiency requirements. Our 4G ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (modem architecture, which has been refined through multiple generations of integrated circuit designs, is designed to optimize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (hardware and software partitioning to provide more flexibility and better cost without compromising performance. ) Tj ET Q q 0 0 0 rg BT 509.65 641.10 Td (As a result, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (we achieve equivalent or higher throughput and lower power consumption in a smaller die size than other single-mode L) Tj ET Q q 0 0 0 rg BT 531.77 629.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (chip competitors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 596.10 Td (Since February 2009, we have been certified as ISO 9001 compliant, an international standard set by the International ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (Or) Tj ET Q q 0 0 0 rg BT 59.87 584.10 Td (ganization for Standardization, or ISO, that sets forth requirements for an or) Tj ET Q q 0 0 0 rg BT 363.77 584.10 Td (ganization) Tj ET Q q 0 0 0 rg BT 408.20 584.10 Td (s quality management system. ) Tj ET Q q 0 0 0 rg BT 531.05 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 539.69 584.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (believe this certification gives our customers confidence in our quality control procedures. ) Tj ET Q q 0 0 0 rg BT 413.37 572.10 Td (W) Tj ET Q q 0 0 0 rg BT 422.00 572.10 Td (e also participate in a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 560.10 Td (ganizations and standards bodies, including the 3rd Generation Partnership Project \(3GPP\), Open Mobile ) Tj ET Q q 0 0 0 rg BT 480.62 560.10 Td (Alliance \(OMA\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (the PTS ) Tj ET Q q 0 0 0 rg BT 83.77 548.10 Td (T) Tj ET Q q 0 0 0 rg BT 89.18 548.10 Td (ype Certification Review Board \(PTCRB\) the Global Certification Forum, the GSMA, European ) Tj ET Q q 0 0 0 rg BT 478.37 548.10 Td (T) Tj ET Q q 0 0 0 rg BT 483.78 548.10 Td (elecommunications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (Standards Institute \(ETSI\) and CTIAThe ) Tj ET Q q 0 0 0 rg BT 225.12 536.10 Td (W) Tj ET Q q 0 0 0 rg BT 234.15 536.10 Td (ireless ) Tj ET Q q 0 0 0 rg BT 261.65 536.10 Td (Association. In addition, we participate in multiple European Union and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (French collaborative projects for advanced studies focusing on future evolutions of the 4G technology or addressing the longer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (term 5G technology challenges.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 491.10 Td (Our research and development expense was $26.3 million for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.76 491.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.76 491.10 Td (, $25.2 million for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.31 491.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.31 491.10 Td ( and $27.9 million for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 491.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.30 491.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 459.33 Td (D.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 459.33 Td (T) Tj ET Q q 0 0 0 rg BT 88.24 459.33 Td (rend Information) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 439.10 Td (Other than these items, or as disclosed elsewhere in this annual report, including in Item 5. ) Tj ET Q q 0 0 0 rg BT 442.57 439.10 Td (A. Operating Results, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (are not aware of any trends, uncertainties, demands, commitments or events that are reasonable likely to have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 415.10 Td (fect on our net revenues, income, profitability) Tj ET Q q 0 0 0 rg BT 272.75 415.10 Td (, liquidity or capital resources, or that caused the disclosed financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.10 Td (information to be not necessarily indicative of future operating results or financial condition.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 371.33 Td (E.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 371.33 Td (Of) Tj ET Q q 0 0 0 rg BT 92.87 371.33 Td (f-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 160.83 371.33 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.10 Td (Since our inception, we have not engaged in any of) Tj ET Q q 0 0 0 rg BT 278.26 350.10 Td (f-balance sheet arrangements, including the use of structured finance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (special purpose entities or variable interest entities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 306.33 Td (F) Tj ET Q q 0 0 0 rg BT 57.69 306.33 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 306.33 Td (Contractual Obligations) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 280.10 Td (The following table summarizes our outstanding contractual obligations at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.71 280.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.29 280.10 Td ( and the ef) Tj ET Q q 0 0 0 rg BT 494.03 280.10 Td (fect those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.10 Td (obligations are expected to have on our liquidity and cash flows in future periods:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 257.30 Td () Tj ET Q endstream endobj 143 0 obj <> endobj 144 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (68) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 681.50 268.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 681.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 681.50 45.00 -15.00 re f /GS0 gs 0.8 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322.00 561.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 561.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 561.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 561.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 561.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 561.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 561.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 561.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 561.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 531.50 268.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 531.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 531.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 531.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 531.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 531.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 531.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 531.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 531.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 531.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 531.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 501.50 268.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 501.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 501.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 501.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 501.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 501.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 501.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 501.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 501.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 501.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 501.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.50 268.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 471.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 471.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 471.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 471.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 471.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 471.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 471.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 471.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 471.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 471.50 45.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 715.5 m 367 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 715.5 m 371 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 715.5 m 416 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 715.5 m 420 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 715.5 m 465 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 715.5 m 469 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 715.5 m 514 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 715.5 m 518 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 715.5 m 563 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 694.5 m 367 694.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 694.5 m 416 694.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 694.5 m 465 694.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 694.5 m 514 694.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 694.5 m 563 694.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 531.5 m 367 531.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 531.5 m 416 531.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 531.5 m 465 531.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 531.5 m 514 531.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 531.5 m 563 531.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 517.5 m 367 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 515.5 m 367 515.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 517.5 m 416 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 515.5 m 416 515.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 517.5 m 465 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 515.5 m 465 515.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 517.5 m 514 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 515.5 m 514 515.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 517.5 m 563 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 515.5 m 563 515.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 471.5 m 367 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 471.5 m 416 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 471.5 m 465 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 471.5 m 514 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 471.5 m 563 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 457.5 m 367 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 455.5 m 367 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 457.5 m 416 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 455.5 m 416 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 457.5 m 465 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 455.5 m 465 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 457.5 m 514 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 455.5 m 514 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 457.5 m 563 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 455.5 m 563 455.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 719.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.75 719.73 Td (Payments due by period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 698.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.25 698.73 Td (T) Tj ET Q q 0 0 0 rg BT 340.22 698.73 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.65 706.73 Td (Lessthan) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 698.73 Td (1 year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.55 698.73 Td (1-3years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.55 698.73 Td (3-5years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.95 706.73 Td (Mor) Tj ET Q q 0 0 0 rg BT 536.91 706.73 Td (ethan) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.85 698.73 Td (5 years) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 685.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.65 685.73 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 672.07 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 657.07 Td (Government grant advances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 656.17 Td (144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 656.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 656.17 Td (144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 656.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 656.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 642.07 Td (Research project financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 641.17 Td (5,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 641.17 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 641.17 Td (3,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 641.17 Td (2,062) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 641.17 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 627.07 Td (Government loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 626.17 Td (1,695) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 626.17 Td (499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 626.17 Td (962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 626.17 Td (234) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 626.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 612.07 Td (Convertible debt and accrued interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 611.17 Td (31,221) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 611.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 611.17 Td (7,864) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 611.17 Td (23,357) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 611.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 597.07 Td (V) Tj ET Q q 0 0 0 rg BT 59.17 597.07 Td (enture debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 596.17 Td (16,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 596.17 Td (2,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 596.17 Td (12,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 596.17 Td (2,052) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 582.07 Td (T) Tj ET Q q 0 0 0 rg BT 58.43 582.07 Td (rade payables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 581.17 Td (9,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 581.17 Td (9,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 581.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 581.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 581.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 567.07 Td (Interest-bearing receivables financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 566.17 Td (10,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 566.17 Td (10,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 566.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 566.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 566.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 552.07 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 551.17 Td (691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 551.17 Td (691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 551.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 551.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 551.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 537.07 Td (Other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 536.17 Td (4,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 536.17 Td (4,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 536.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 536.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 536.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 522.07 Td (T) Tj ET Q q 0 0 0 rg BT 76.26 522.07 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 521.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 521.17 Td (79,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 521.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 521.17 Td (27,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 521.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 521.17 Td (24,302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 521.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 521.17 Td (27,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 521.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 521.17 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 507.07 Td (Of) Tj ET Q q 0 0 0 rg BT 62.96 507.07 Td (f-balance sheet commitments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 492.07 Td (Operating leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 491.17 Td (2,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 491.17 Td (1,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 491.17 Td (669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 491.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 491.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 477.07 Td (Inventory component and equipment purchase commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 476.17 Td (5,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 476.17 Td (5,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 476.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 476.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 476.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 462.07 Td (T) Tj ET Q q 0 0 0 rg BT 75.91 462.07 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 461.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 461.17 Td (7,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 461.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 461.17 Td (6,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 461.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 461.17 Td (669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 461.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 461.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 461.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 461.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 419.00 Td (Item6. Dir) Tj ET Q q 0 0 0 rg BT 96.25 419.00 Td (ectors, Senior) Tj ET Q q 0 0 0 rg BT 154.38 419.00 Td ( Management and Employees) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 382.43 Td (A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 382.43 Td (Directors and Senior Management) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 361.20 Td (Executive Officers and Dir) Tj ET Q q 0 0 0 rg BT 163.46 361.20 Td (ectors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 344.20 Td (The following table sets forth information about our executive of) Tj ET Q q 0 0 0 rg BT 333.52 344.20 Td (ficers and directors as the date of this annual report.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 324.93 Td (Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 312.15 324.93 Td (Age) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.50 324.93 Td (Position\(s\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 311.26 Td (Executive Officers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 296.27 Td (Dr) Tj ET Q q 0 0 0 rg BT 62.78 296.27 Td (.Geor) Tj ET Q q 0 0 0 rg BT 87.40 296.27 Td (ges Karam) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 296.27 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 295.37 Td (Chairman of the Board and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 524.52 295.37 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 281.27 Td (Deborah Choate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 281.27 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 280.37 Td (Chief Financial Of) Tj ET Q q 0 0 0 rg BT 410.39 280.37 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 266.27 Td (Bertrand Debray) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 266.27 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 265.37 Td (Chief Operating Of) Tj ET Q q 0 0 0 rg BT 413.16 265.37 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 251.27 Td (Didier Dutronc) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 251.27 Td (59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 250.37 Td (Chief Marketing Of) Tj ET Q q 0 0 0 rg BT 414.83 250.37 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 236.27 Td (Nikhil ) Tj ET Q q 0 0 0 rg BT 80.47 236.27 Td (T) Tj ET Q q 0 0 0 rg BT 86.14 236.27 Td (aluja) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 236.27 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 235.37 Td (V) Tj ET Q q 0 0 0 rg BT 342.42 235.37 Td (ice President ) Tj ET Q q 0 0 0 rg BT 395.90 235.37 Td (W) Tj ET Q q 0 0 0 rg BT 404.85 235.37 Td (orldwide Sales) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 221.26 Td (Dir) Tj ET Q q 0 0 0 rg BT 66.02 221.26 Td (ectors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 206.27 Td (W) Tj ET Q q 0 0 0 rg BT 61.54 206.27 Td (esley Cummins) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 205.37 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 205.37 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 191.27 Td (Mailys Ferrere) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 190.37 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 190.37 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 176.27 Td (Y) Tj ET Q q 0 0 0 rg BT 59.22 176.27 Td (ves Maitre) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 175.37 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 175.37 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 161.27 Td (Richard Nottenbur) Tj ET Q q 0 0 0 rg BT 127.11 161.27 Td (g) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 160.37 Td (65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 160.37 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 146.27 Td (Hubert de Pesquidoux) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 145.37 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 145.37 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 131.27 Td (Dominique Pitteloud) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 130.37 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 130.37 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 116.27 Td (Alok Sharma) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 115.37 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 115.37 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 101.27 Td (Zvi Slonimsky) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 100.37 Td (69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.50 100.37 Td (Director) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 70.20 Td (Executive Officers) Tj ET Q endstream endobj 145 0 obj <> endobj 146 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (69) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 722.25 Td (Dr) Tj ET Q q 0 0 0 rg BT 84.06 722.25 Td (.Georges Karam) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.78 722.25 Td ( has served as our chairman of the board and chief executive of) Tj ET Q q 0 0 0 rg BT 406.27 722.25 Td (ficer since the company was founded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (in 2003. Before founding Sequans, Dr) Tj ET Q q 0 0 0 rg BT 201.42 710.25 Td (.Karam was vice president of cable access at Juniper Networks, running the cable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (engineering and marketing departments and managing the cable sales launch in the Europe, Middle East and ) Tj ET Q q 0 0 0 rg BT 485.19 698.25 Td (Africa region. He ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (joined Juniper Networks when the company acquired Pacific Broadband Communications \(PBC\), where he was vice president ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (of engineering and general manager for Europe. Dr) Tj ET Q q 0 0 0 rg BT 253.86 674.25 Td (.Karam has served in a variety of senior management positions at ) Tj ET Q q 0 0 0 rg BT 519.61 674.25 Td (Alcatel, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (SAGEM and Philips. He is a senior member of IEEE, has authored numerous technical and scientific papers and holds several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (patents in digital communications. Dr) Tj ET Q q 0 0 0 rg BT 199.75 650.25 Td (.Karam holds a PhD in signal processing and communication theory from Ecole ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (Nationale Suprieure des ) Tj ET Q q 0 0 0 rg BT 152.34 638.25 Td (Tlcommunications, Paris.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 617.25 Td (Deborah Choate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.56 617.25 Td ( has served as our chief financial of) Tj ET Q q 0 0 0 rg BT 283.27 617.25 Td (ficer since July 2007. Prior to joining Sequans, she was chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (financial of) Tj ET Q q 0 0 0 rg BT 95.13 605.25 Td (ficer at Esmertec ) Tj ET Q q 0 0 0 rg BT 164.81 605.25 Td (AG from September 2005 to June 2007 and at ) Tj ET Q q 0 0 0 rg BT 351.54 605.25 Td (W) Tj ET Q q 0 0 0 rg BT 360.18 605.25 Td (avecom SA, from ) Tj ET Q q 0 0 0 rg BT 432.94 605.25 Td (August 1998 to ) Tj ET Q q 0 0 0 rg BT 496.56 605.25 Td (August 2004, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (and vice president of finance at Platinum Equity from October 2004 to September 2005. Earlier in her career) Tj ET Q q 0 0 0 rg BT 483.95 593.25 Td (, she was an audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (partner with Ernst& ) Tj ET Q q 0 0 0 rg BT 134.11 581.25 Td (Y) Tj ET Q q 0 0 0 rg BT 140.33 581.25 Td (oung. Ms.Choate has 35 years of experience in management, finance and accounting, including over 20 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (years working with technology companies, in particular communications hardware, software and services. Ms.Choate holds a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.25 Td (BS in business administration from the University of California at Berkeley) Tj ET Q q 0 0 0 rg BT 351.58 557.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 536.25 Td (Bertrand Debray) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.22 536.25 Td ( has served as our chief operating of) Tj ET Q q 0 0 0 rg BT 287.71 536.25 Td (ficer since July 2013 and prior to that as vice president, engineering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (since the company was founded in 2003) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 210.02 524.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.52 524.25 Td ( Before joining Sequans, Mr) Tj ET Q q 0 0 0 rg BT 325.56 524.25 Td (.Debray was director of hardware and ) Tj ET Q q 0 0 0 rg BT 481.05 524.25 Td (ASIC development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (in the cable product division at Juniper Networks. He joined Juniper Networks after the company acquired Pacific Broadband ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (Communications, where he played the same role and was significantly involved in developing the cable product and team. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.17 488.25 Td (.Debray has held technical and management positions at ) Tj ET Q q 0 0 0 rg BT 290.54 488.25 Td (Alcatel. He has 20 years) Tj ET Q q 0 0 0 rg BT 390.59 488.25 Td ( experience in lar) Tj ET Q q 0 0 0 rg BT 459.54 488.25 Td (ge project development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (covering all access technologies, including wireless, satellite and cable. Mr) Tj ET Q q 0 0 0 rg BT 349.40 476.25 Td (.Debray holds a MSE from Ecole Nationale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (Suprieure des ) Tj ET Q q 0 0 0 rg BT 110.96 464.25 Td (Tlcommunications, Paris.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 443.25 Td (Didier Dutronc) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.56 443.25 Td ( has served as chief marketing of) Tj ET Q q 0 0 0 rg BT 268.00 443.25 Td (ficer since March 2016. From January 2014 until March 2016, Mr) Tj ET Q q 0 0 0 rg BT 531.83 443.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.25 Td (Dutronc was a director of ) Tj ET Q q 0 0 0 rg BT 154.00 431.25 Td (T) Tj ET Q q 0 0 0 rg BT 159.41 431.25 Td (apcheck Limited and ) Tj ET Q q 0 0 0 rg BT 245.21 431.25 Td (Asia Business Consulting Limited both based in Hong Kong and providing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.25 Td (services for companies tar) Tj ET Q q 0 0 0 rg BT 154.00 419.25 Td (geting the IoT) Tj ET Q q 0 0 0 rg BT 210.47 419.25 Td ( market. Previously) Tj ET Q q 0 0 0 rg BT 287.86 419.25 Td (, Mr) Tj ET Q q 0 0 0 rg BT 304.53 419.25 Td (. Dutronc served as senior vice president and general manager) Tj ET Q q 0 0 0 rg BT 552.36 419.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.25 Td (M2M Embedded Solutions Business Unit at Sierra ) Tj ET Q q 0 0 0 rg BT 254.59 407.25 Td (W) Tj ET Q q 0 0 0 rg BT 263.63 407.25 Td (ireless from February 2009 until October 2013. He also worked for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 395.25 Td (avecom as general manager Handset BU \(until ) Tj ET Q q 0 0 0 rg BT 247.05 395.25 Td (W) Tj ET Q q 0 0 0 rg BT 255.69 395.25 Td (avecom was acquired by Sierra ) Tj ET Q q 0 0 0 rg BT 382.96 395.25 Td (W) Tj ET Q q 0 0 0 rg BT 392.00 395.25 Td (ireless\).Earlier) Tj ET Q q 0 0 0 rg BT 452.67 395.25 Td (, he held positions at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.25 Td (Alcatel Optronics USA, ) Tj ET Q q 0 0 0 rg BT 147.26 383.25 Td (Alcatel OptronicsFrance and ) Tj ET Q q 0 0 0 rg BT 267.04 383.25 Td (T) Tj ET Q q 0 0 0 rg BT 272.45 383.25 Td (exas Instruments. Mr) Tj ET Q q 0 0 0 rg BT 356.60 383.25 Td (. Dutronc holds a BS in Electrical Engineering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.25 Td (from ESME Sudria \(France\) and a MBA) Tj ET Q q 0 0 0 rg BT 211.69 371.25 Td ( from IAE of Paris.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 350.25 Td (Nikhil T) Tj ET Q q 0 0 0 rg BT 107.31 350.25 Td (aluja) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.43 350.25 Td ( has served as our vice president of worldwide sales since September 2016. From July 2013 until ) Tj ET Q q 0 0 0 rg BT 517.80 350.25 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (2016, Mr) Tj ET Q q 0 0 0 rg BT 86.17 338.25 Td (. ) Tj ET Q q 0 0 0 rg BT 90.99 338.25 Td (T) Tj ET Q q 0 0 0 rg BT 96.40 338.25 Td (aluja was vice president of sales at SK hynix, a leading supplier of DRAM and Flash memory solutions, where he ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (led the sales or) Tj ET Q q 0 0 0 rg BT 109.02 326.25 Td (ganization for the ) Tj ET Q q 0 0 0 rg BT 181.50 326.25 Td (Americas. From March 2012 until July 2013, Mr) Tj ET Q q 0 0 0 rg BT 379.26 326.25 Td (.T) Tj ET Q q 0 0 0 rg BT 387.17 326.25 Td (aluja led the ) Tj ET Q q 0 0 0 rg BT 437.98 326.25 Td (Americas) Tj ET Q q 0 0 0 rg BT 478.88 326.25 Td ( sales and marketing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 314.25 Td (ganizations at ST) Tj ET Q q 0 0 0 rg BT 126.16 314.25 Td (-Ericsson, the former multinational supplier of wireless semiconductor products, including L) Tj ET Q q 0 0 0 rg BT 496.27 314.25 Td (TE solutions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (From November 2007 until March 2012, Mr) Tj ET Q q 0 0 0 rg BT 226.98 302.25 Td (. ) Tj ET Q q 0 0 0 rg BT 231.80 302.25 Td (T) Tj ET Q q 0 0 0 rg BT 237.21 302.25 Td (aluja held various other sales and marketing position at ST) Tj ET Q q 0 0 0 rg BT 470.96 302.25 Td (-Ericsson. Mr) Tj ET Q q 0 0 0 rg BT 527.90 302.25 Td (. ) Tj ET Q q 0 0 0 rg BT 532.72 302.25 Td (T) Tj ET Q q 0 0 0 rg BT 538.13 302.25 Td (aluja ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (has more than 20 years of sales, product marketing and business development experience, including having worked for ) Tj ET Q q 0 0 0 rg BT 527.79 290.25 Td (T) Tj ET Q q 0 0 0 rg BT 533.20 290.25 Td (exas ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (Instruments and ) Tj ET Q q 0 0 0 rg BT 115.97 278.25 Td (T) Tj ET Q q 0 0 0 rg BT 121.73 278.25 Td (ranSwitch, specifically in the areas of wireless and wireline communications and has co-authored three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (patents in the field of near field communications \(NFC\). Mr) Tj ET Q q 0 0 0 rg BT 288.89 266.25 Td (. ) Tj ET Q q 0 0 0 rg BT 293.71 266.25 Td (T) Tj ET Q q 0 0 0 rg BT 299.12 266.25 Td (aluja holds an M.S. in electrical engineering and a BS in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (computer engineering and mathematics from Kansas State University) Tj ET Q q 0 0 0 rg BT 326.82 254.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 228.25 Td (Dir) Tj ET Q q 0 0 0 rg BT 63.76 228.25 Td (ectors) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 211.25 Td (W) Tj ET Q q 0 0 0 rg BT 81.65 211.25 Td (esley Cummins) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.15 211.25 Td ( has served as a director since June 2018. Mr) Tj ET Q q 0 0 0 rg BT 322.99 211.25 Td (. Cummins has been an analyst with Nokomis Capital, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.25 Td (LLC, an investment advisory firm and major shareholder of the Company) Tj ET Q q 0 0 0 rg BT 344.06 199.25 Td (, since 2013. Previously) Tj ET Q q 0 0 0 rg BT 439.23 199.25 Td (, Mr Cummins was an analyst ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.25 Td (for Harvey Partners from March 201) Tj ET Q q 0 0 0 rg BT 196.02 187.25 Td (1 to September 2012. Prior to that, he was employed by B. Riley & Co., an investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.25 Td (banking firm, where he served in positions of increasing responsibility) Tj ET Q q 0 0 0 rg BT 331.01 175.25 Td (, beginning first as an equity research analyst in 2002, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.25 Td (then a director of research, capital markets director) Tj ET Q q 0 0 0 rg BT 252.88 163.25 Td (, and finally as president of B. Riley until his departure in 201) Tj ET Q q 0 0 0 rg BT 500.24 163.25 Td (1. Mr) Tj ET Q q 0 0 0 rg BT 521.91 163.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.25 Td (Cummins is also a board member of ) Tj ET Q q 0 0 0 rg BT 196.79 151.25 Td (T) Tj ET Q q 0 0 0 rg BT 202.21 151.25 Td (elenav) Tj ET Q q 0 0 0 rg BT 227.65 151.25 Td (, Inc., a connected car company) Tj ET Q q 0 0 0 rg BT 353.60 151.25 Td (, and ) Tj ET Q q 0 0 0 rg BT 375.36 151.25 Td (V) Tj ET Q q 0 0 0 rg BT 381.98 151.25 Td (ishay Precision Group, a measurement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.25 Td (solutions company) Tj ET Q q 0 0 0 rg BT 124.12 139.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 122.25 Td (Mr) Tj ET Q q 0 0 0 rg BT 85.17 122.25 Td (. Cummins holds a BS in finance and accounting from ) Tj ET Q q 0 0 0 rg BT 304.68 122.25 Td (W) Tj ET Q q 0 0 0 rg BT 313.31 122.25 Td (ashington University \(St. Louis\). ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 105.25 Td (Mailys Ferrere) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.44 105.25 Td ( has served as a director since June 2017. Ms. Ferrere currently leads Bpifrance Lar) Tj ET Q q 0 0 0 rg BT 469.02 105.25 Td (ge ) Tj ET Q q 0 0 0 rg BT 480.78 105.25 Td (V) Tj ET Q q 0 0 0 rg BT 486.89 105.25 Td (enture, a late-stage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.25 Td (venture capital fund investing in French companies to help them grow into global leaders. Bpifrance Lar) Tj ET Q q 0 0 0 rg BT 466.97 93.25 Td (ge ) Tj ET Q q 0 0 0 rg BT 478.73 93.25 Td (V) Tj ET Q q 0 0 0 rg BT 484.84 93.25 Td (enture has invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.25 Td (in over 30 companies in the tech, biotech and greentech spaces, including the Company) Tj ET Q q 0 0 0 rg BT 399.02 81.25 Td (. Before joining Bpifrance Lar) Tj ET Q q 0 0 0 rg BT 520.18 81.25 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.25 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 69.25 Td (enture in 2013, Ms. Ferrre was an Investment Director at the Fonds Stratgique dInvestissement. Previously) Tj ET Q q 0 0 0 rg BT 494.59 69.25 Td (, she was an ) Tj ET Q endstream endobj 147 0 obj <> endobj 148 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (equity capital markets banker at a number of banks, including Natixis. Ms. Ferrere is also a board member of DBV) Tj ET Q q 0 0 0 rg BT 509.19 722.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 710.10 Td (echnologies, ) Tj ET Q q 0 0 0 rg BT 107.49 710.10 Td (V) Tj ET Q q 0 0 0 rg BT 113.61 710.10 Td (alneva SE, Innate Pharma and Euronext Paris. She is a graduate of Sciences Po \(IEP) Tj ET Q q 0 0 0 rg BT 450.36 710.10 Td ( Paris\). ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 693.10 Td (Y) Tj ET Q q 0 0 0 rg BT 78.69 693.10 Td (ves Maitre) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.74 693.10 Td ( has served as a director since June 2014. Mr) Tj ET Q q 0 0 0 rg BT 300.58 693.10 Td (. Maitre is currently Executive ) Tj ET Q q 0 0 0 rg BT 424.79 693.10 Td (VP) Tj ET Q q 0 0 0 rg BT 437.21 693.10 Td ( for Connected Objects and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.10 Td (Partnerships at Orange Corporate where he is responsible for managing Orange) Tj ET Q q 0 0 0 rg BT 369.95 681.10 Td (s relationships with global device makers as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.10 Td (well as partnering with ecosystem players from chipset upwards to internet companies. Prior to joining Orange, Mr) Tj ET Q q 0 0 0 rg BT 509.39 669.10 Td (. Maitre ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.10 Td (spent six years working for the consumer electronics company ) Tj ET Q q 0 0 0 rg BT 301.75 657.10 Td (Thomson. He was President of Key MRO ) Tj ET Q q 0 0 0 rg BT 471.17 657.10 Td (America, a subsidiary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.10 Td (of ) Tj ET Q q 0 0 0 rg BT 60.15 645.10 Td (Thomson United States and whilst living in Singapore he worked for ) Tj ET Q q 0 0 0 rg BT 337.99 645.10 Td (Thomson ) Tj ET Q q 0 0 0 rg BT 377.71 645.10 Td (Asia as Director of Manufacturing Supply ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.10 Td (Chain andProduct Management. Before ) Tj ET Q q 0 0 0 rg BT 213.16 633.10 Td (Thomson, Mr) Tj ET Q q 0 0 0 rg BT 267.61 633.10 Td (. Maitre spent five years as the COO of Quante-Pouyet, a subsidiary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (of3M, making connectors for the telecoms business. He is also a board member of OrangeChinaand several midsize / start-up ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.10 Td (companies. Mr) Tj ET Q q 0 0 0 rg BT 108.93 609.10 Td (. Maitre is an Engineering graduate in Nuclear Physics from Polytech Grenoble \(France\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 588.10 Td (Richard Nottenburg) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.57 588.10 Td ( has served as a director since June 2016. He is currently an Executive Partner at OceanSound ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.10 Td (Partners LP) Tj ET Q q 0 0 0 rg BT 95.33 576.10 Td (, a private equity firm, and an investor in various early stage technology companies. Previously) Tj ET Q q 0 0 0 rg BT 477.91 576.10 Td (, Dr) Tj ET Q q 0 0 0 rg BT 492.91 576.10 Td (.Nottenbur) Tj ET Q q 0 0 0 rg BT 538.28 576.10 Td (g ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.10 Td (served as president, chief executive of) Tj ET Q q 0 0 0 rg BT 202.03 564.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 219.94 564.10 Td (, and member of the board of directors of Sonus Networks, Inc. from 2008 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.10 Td (2010. From 2004 until 2008, Dr) Tj ET Q q 0 0 0 rg BT 177.00 552.10 Td (.Nottenbur) Tj ET Q q 0 0 0 rg BT 222.37 552.10 Td (g was an of) Tj ET Q q 0 0 0 rg BT 268.01 552.10 Td (ficer with Motorola, Inc., ultimately serving as its executive vice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.10 Td (president, chief strategy of) Tj ET Q q 0 0 0 rg BT 155.95 540.10 Td (ficer and chief technology of) Tj ET Q q 0 0 0 rg BT 271.27 540.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 289.03 540.10 Td (. He served on the boards of ) Tj ET Q q 0 0 0 rg BT 403.45 540.10 Td (Aeroflex Corporation from 2010 until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.10 Td (2014, PMC Sierra, where he was a member of the audit committee, from 201) Tj ET Q q 0 0 0 rg BT 357.94 528.10 Td (1 until 2016 and ) Tj ET Q q 0 0 0 rg BT 425.53 528.10 Td (V) Tj ET Q q 0 0 0 rg BT 432.15 528.10 Td (iolin Memory where he served ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.10 Td (as Chairman from 2014 until 2017. Dr) Tj ET Q q 0 0 0 rg BT 202.54 516.10 Td (.Nottenbur) Tj ET Q q 0 0 0 rg BT 247.90 516.10 Td (g is currently a member of the board of directors of ) Tj ET Q q 0 0 0 rg BT 455.15 516.10 Td (V) Tj ET Q q 0 0 0 rg BT 461.26 516.10 Td (erint Systems Inc., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.10 Td (where he is chairman of the compensation committee. He previously served on the boards of directors of PMC-Sierra Inc., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.10 Td (Aeroflex Holding Corp., ) Tj ET Q q 0 0 0 rg BT 149.76 492.10 Td (Anaren, Inc., Comverse ) Tj ET Q q 0 0 0 rg BT 247.33 492.10 Td (T) Tj ET Q q 0 0 0 rg BT 252.74 492.10 Td (echnology) Tj ET Q q 0 0 0 rg BT 293.74 492.10 Td (, Inc. and ) Tj ET Q q 0 0 0 rg BT 333.27 492.10 Td (V) Tj ET Q q 0 0 0 rg BT 339.89 492.10 Td (iolin Memory) Tj ET Q q 0 0 0 rg BT 394.51 492.10 Td (, Inc. Dr) Tj ET Q q 0 0 0 rg BT 427.28 492.10 Td (. Nottenbur) Tj ET Q q 0 0 0 rg BT 472.65 492.10 Td (g has a BSEE in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.10 Td (Electrical Engineering from New ) Tj ET Q q 0 0 0 rg BT 184.63 480.10 Td (Y) Tj ET Q q 0 0 0 rg BT 190.85 480.10 Td (ork University) Tj ET Q q 0 0 0 rg BT 248.25 480.10 Td (, an MSEE in Electrical Engineering from Colorado State University and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.10 Td (PhD in Electrical Engineering from Ecole Polytechnique Federal Lausanne.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 447.10 Td (Hubert de Pesquidoux) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.73 447.10 Td ( has served as a director since March 201) Tj ET Q q 0 0 0 rg BT 330.29 447.10 Td (1. Mr) Tj ET Q q 0 0 0 rg BT 351.96 447.10 Td (.de Pesquidoux is an Executive Partner at Siris ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (Capital, a private equity firm focused on making control investments in data/telecom, technology and technology-enabled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (business service companies in North ) Tj ET Q q 0 0 0 rg BT 197.53 423.10 Td (America. From 1991 until December2009, Mr) Tj ET Q q 0 0 0 rg BT 387.21 423.10 Td (.de Pesquidoux held various positions at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (the telecommunications company ) Tj ET Q q 0 0 0 rg BT 185.85 411.10 Td (Alcatel-Lucent SA) Tj ET Q q 0 0 0 rg BT 260.55 411.10 Td ( \(and its predecessor) Tj ET Q q 0 0 0 rg BT 342.06 411.10 Td (, ) Tj ET Q q 0 0 0 rg BT 346.51 411.10 Td (Alcatel S.A. and its af) Tj ET Q q 0 0 0 rg BT 434.64 411.10 Td (filiates\), where he most ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (recently served as Chief Financial Of) Tj ET Q q 0 0 0 rg BT 198.43 399.10 Td (ficer from November2007 until December2008 and as President of the Enterprise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (business from November2006 until December2008. Mr) Tj ET Q q 0 0 0 rg BT 276.13 387.10 Td (. de Pesquidoux was also previously a member of the ) Tj ET Q q 0 0 0 rg BT 490.81 387.10 Td (Alcatel Executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (Committee and held various executive positions including President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 418.96 375.10 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 450.05 375.10 Td (Alcatel North ) Tj ET Q q 0 0 0 rg BT 506.70 375.10 Td (America, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (Chief Executive Of) Tj ET Q q 0 0 0 rg BT 127.07 363.10 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 158.16 363.10 Td (Alcatel Canada \(formerlyNewbridgeNetworks\) and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 443.71 363.10 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 474.81 363.10 Td (Alcatel USA. Mr) Tj ET Q q 0 0 0 rg BT 542.85 363.10 Td (.de ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.10 Td (Pesquidoux also served as the Chairman of the Board of ) Tj ET Q q 0 0 0 rg BT 276.49 351.10 Td (T) Tj ET Q q 0 0 0 rg BT 281.90 351.10 Td (ekelec and currently serves as a director and audit committee chair of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (Criteo S.A., as a director of ) Tj ET Q q 0 0 0 rg BT 161.79 339.10 Td (T) Tj ET Q q 0 0 0 rg BT 167.55 339.10 Td (ransaction Network Services, as executive chairman of Premiere Global Services, Inc. and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (Mavenir Systems, Inc. He is also a member of the University of Pittsbur) Tj ET Q q 0 0 0 rg BT 340.66 327.10 Td (g Medical Center Information ) Tj ET Q q 0 0 0 rg BT 462.66 327.10 Td (T) Tj ET Q q 0 0 0 rg BT 468.07 327.10 Td (echnology Board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (V) Tj ET Q q 0 0 0 rg BT 56.12 315.10 Td (isitors, which advises UPMC on matters generally related to information technology strategy) Tj ET Q q 0 0 0 rg BT 427.06 315.10 Td (, acquisition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (implementation.Mr) Tj ET Q q 0 0 0 rg BT 128.93 303.10 Td (.de Pesquidoux holds a Master in Law from University of Nancy II, a Master in Economics and Finance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (from Institut dEtudes Politiques de Paris, a DESS in International ) Tj ET Q q 0 0 0 rg BT 316.97 291.10 Td (Af) Tj ET Q q 0 0 0 rg BT 327.34 291.10 Td (fairs from University of Paris Dauphine and was a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (laureate in the Concours Gnral de Droit.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 258.10 Td (Dominique Pitteloud) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.34 258.10 Td ( has served as a director since January 2005. Mr) Tj ET Q q 0 0 0 rg BT 350.95 258.10 Td (.Pitteloud has been a Managing Partner with Ginko ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 246.10 Td (entures in Geneva since 2015, was a partner with Endeavour ) Tj ET Q q 0 0 0 rg BT 300.07 246.10 Td (V) Tj ET Q q 0 0 0 rg BT 306.69 246.10 Td (ision from 2007 to 2015, and was a principal at ) Tj ET Q q 0 0 0 rg BT 497.86 246.10 Td (V) Tj ET Q q 0 0 0 rg BT 504.49 246.10 Td (ision Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (from 2001 to 2007. Mr) Tj ET Q q 0 0 0 rg BT 140.89 234.10 Td (.Pitteloud is also an advisor to ) Tj ET Q q 0 0 0 rg BT 265.88 234.10 Td (ASSIA, a provider of DSL) Tj ET Q q 0 0 0 rg BT 372.44 234.10 Td ( management solutions. Mr) Tj ET Q q 0 0 0 rg BT 481.32 234.10 Td (.Pitteloud also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (serves as a director of number of private companies. Prior to becoming a venture capitalist, Mr) Tj ET Q q 0 0 0 rg BT 427.99 222.10 Td (.Pitteloud was vice president of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (marketing at 88, a Silicon ) Tj ET Q q 0 0 0 rg BT 160.49 210.10 Td (V) Tj ET Q q 0 0 0 rg BT 166.60 210.10 Td (alley semiconductor and telecommunication company) Tj ET Q q 0 0 0 rg BT 382.00 210.10 Td (, which he joined in 1999 as part of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (acquisition of Odisei, a ) Tj ET Q q 0 0 0 rg BT 144.58 198.10 Td (V) Tj ET Q q 0 0 0 rg BT 150.51 198.10 Td (oIP) Tj ET Q q 0 0 0 rg BT 164.03 198.10 Td ( start-up from Sophia ) Tj ET Q q 0 0 0 rg BT 251.24 198.10 Td (Antipolis, France. ) Tj ET Q q 0 0 0 rg BT 325.13 198.10 Td (At Odisei, Mr) Tj ET Q q 0 0 0 rg BT 380.40 198.10 Td (.Pitteloud led the development of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (company) Tj ET Q q 0 0 0 rg BT 88.93 186.10 Td (s business and financing activities. Prior to Odisei, Mr) Tj ET Q q 0 0 0 rg BT 305.57 186.10 Td (.Pitteloud held various engineering and management positions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (at Logitech, including ) Tj ET Q q 0 0 0 rg BT 139.85 174.10 Td (V) Tj ET Q q 0 0 0 rg BT 146.47 174.10 Td (ice President of the scanner and video camera business units. Mr) Tj ET Q q 0 0 0 rg BT 404.46 174.10 Td (.Pitteloud received a BS in electrical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (engineering and telecommunications from the School of Business and Engineering in ) Tj ET Q q 0 0 0 rg BT 393.41 162.10 Td (V) Tj ET Q q 0 0 0 rg BT 399.52 162.10 Td (aud, Switzerland and an MBA) Tj ET Q q 0 0 0 rg BT 520.33 162.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (Santa Clara University) Tj ET Q q 0 0 0 rg BT 139.94 150.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 129.10 Td (Dr) Tj ET Q q 0 0 0 rg BT 84.06 129.10 Td (. ) Tj ET Q q 0 0 0 rg BT 88.69 129.10 Td (Alok Sharma) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.43 129.10 Td ( has served as a director since January 201) Tj ET Q q 0 0 0 rg BT 313.00 129.10 Td (1. Dr) Tj ET Q q 0 0 0 rg BT 333.00 129.10 Td (. Sharma has served as the Chief Executive Of) Tj ET Q q 0 0 0 rg BT 518.59 129.10 Td (ficer of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.10 Td (Stratus Silver Lining, a private cloud-based software-as-service company) Tj ET Q q 0 0 0 rg BT 342.09 117.10 Td (, since 2014. From September 2010 to December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (2012, Dr) Tj ET Q q 0 0 0 rg BT 84.50 105.10 Td (. Sharma was the chief executive of) Tj ET Q q 0 0 0 rg BT 226.76 105.10 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 257.85 105.10 Td (Accelera Inc., a company focused on building network optimization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (software for mobile broadband networks. From February 2009 to ) Tj ET Q q 0 0 0 rg BT 312.22 93.10 Td (August 2010, Dr) Tj ET Q q 0 0 0 rg BT 378.62 93.10 Td (.Sharma was the Senior ) Tj ET Q q 0 0 0 rg BT 477.86 93.10 Td (V) Tj ET Q q 0 0 0 rg BT 484.48 93.10 Td (ice President, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (Corporate Development and ) Tj ET Q q 0 0 0 rg BT 164.74 81.10 Td (Alliances, at ) Tj ET Q q 0 0 0 rg BT 216.67 81.10 Td (A) Tj ET Q q 0 0 0 rg BT 223.15 81.10 Td (viat Networks \(earlier known as Harris-Stratex, Microwave Division of Harris ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.10 Td (Corporation\), where he was responsible for leading corporate strategy) Tj ET Q q 0 0 0 rg BT 328.47 69.10 Td (, mer) Tj ET Q q 0 0 0 rg BT 348.84 69.10 Td (gers and acquisitions, as well as the development of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 57.10 Td (key strategic relationships for the company) Tj ET Q q 0 0 0 rg BT 221.30 57.10 Td (. Beginning in June 2004, Dr) Tj ET Q q 0 0 0 rg BT 336.57 57.10 Td (.Sharma was the founder and chief executive of) Tj ET Q q 0 0 0 rg BT 529.37 57.10 Td (ficer of ) Tj ET Q endstream endobj 149 0 obj <> endobj 150 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 722.10 Td (elsima Corporation, a provider of ) Tj ET Q q 0 0 0 rg BT 190.80 722.10 Td (W) Tj ET Q q 0 0 0 rg BT 199.84 722.10 Td (iMAX broadband wireless solutions, until it was acquired by ) Tj ET Q q 0 0 0 rg BT 445.36 722.10 Td (A) Tj ET Q q 0 0 0 rg BT 451.84 722.10 Td (viat Networks in February ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (2009. Prior to ) Tj ET Q q 0 0 0 rg BT 107.10 710.10 Td (T) Tj ET Q q 0 0 0 rg BT 112.51 710.10 Td (elsima, Dr) Tj ET Q q 0 0 0 rg BT 153.61 710.10 Td (.Sharma was the vice president and general manager of the ) Tj ET Q q 0 0 0 rg BT 393.89 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 402.53 710.10 Td (orldwide Cable Business at Juniper ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (Networks from December 2001 to May 2003. Before Juniper Networks, Dr) Tj ET Q q 0 0 0 rg BT 350.54 698.10 Td (.Sharma was the founder and chief executive of) Tj ET Q q 0 0 0 rg BT 543.34 698.10 Td (ficer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (of Pacific Broadband Communications, which was acquired by Juniper Networks in December 2001. Prior to that, Dr) Tj ET Q q 0 0 0 rg BT 519.67 686.10 Td (.Sharma ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (held senior management and technical positions at Hewlett Packard, Fujitsu/Amdahl, Integrated Device ) Tj ET Q q 0 0 0 rg BT 466.42 674.10 Td (T) Tj ET Q q 0 0 0 rg BT 471.83 674.10 Td (echnology and Siara ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (Systems, a metro routing company acquired by Redback/Ericsson. Dr) Tj ET Q q 0 0 0 rg BT 327.77 662.10 Td (.Sharma holds a bachelor of engineering from the Indian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Institute of ) Tj ET Q q 0 0 0 rg BT 95.42 650.10 Td (T) Tj ET Q q 0 0 0 rg BT 100.83 650.10 Td (echnology) Tj ET Q q 0 0 0 rg BT 141.84 650.10 Td (, Roorkee, India and a PhD in electrical engineering from the University of ) Tj ET Q q 0 0 0 rg BT 444.06 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 453.10 650.10 Td (isconsin-Madison, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (holds seven patents.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 617.10 Td (Zvi Slonimsky) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.11 617.10 Td ( has served as a director since November 2006. Since 2005, Mr) Tj ET Q q 0 0 0 rg BT 384.54 617.10 Td (.Slonimsky has been chairman of the board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (of several Israeli high tech companies, currently including several private companies as well as ) Tj ET Q q 0 0 0 rg BT 431.86 605.10 Td (A) Tj ET Q q 0 0 0 rg BT 438.17 605.10 Td (wear) Tj ET Q q 0 0 0 rg BT 457.20 605.10 Td (, Maradin and Surf, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (previously ) Tj ET Q q 0 0 0 rg BT 93.67 593.10 Td (Alvarion, Extricom, Pentalum and ) Tj ET Q q 0 0 0 rg BT 233.46 593.10 Td (T) Tj ET Q q 0 0 0 rg BT 238.87 593.10 Td (eledata. He served as CEO of ) Tj ET Q q 0 0 0 rg BT 358.54 593.10 Td (Alvarion Ltd. from 2001 to October 2005, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (following ) Tj ET Q q 0 0 0 rg BT 90.33 581.10 Td (Alvarion) Tj ET Q q 0 0 0 rg BT 128.66 581.10 Td (s establishment via mer) Tj ET Q q 0 0 0 rg BT 222.63 581.10 Td (ger of BreezeCOM and Floware in ) Tj ET Q q 0 0 0 rg BT 363.69 581.10 Td (August 2001. Prior to the mer) Tj ET Q q 0 0 0 rg BT 482.95 581.10 Td (ger) Tj ET Q q 0 0 0 rg BT 495.32 581.10 Td (, Mr) Tj ET Q q 0 0 0 rg BT 511.99 581.10 Td (.Slonimsky ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (was CEO of BreezeCom. Before that, he served as president and CEO of MTS Ltd. and was general manager of DSP) Tj ET Q q 0 0 0 rg BT 518.17 569.10 Td ( Group, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (Israel. Earlier in his career) Tj ET Q q 0 0 0 rg BT 154.87 557.10 Td (, he held senior positions at several Israeli telecom companies, including C.Mer and ) Tj ET Q q 0 0 0 rg BT 492.38 557.10 Td (T) Tj ET Q q 0 0 0 rg BT 497.79 557.10 Td (adiran. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.17 545.10 Td (.Slonimsky holds a BSEE and a MSEE from the ) Tj ET Q q 0 0 0 rg BT 259.04 545.10 Td (T) Tj ET Q q 0 0 0 rg BT 264.45 545.10 Td (echnion Israel Institute for ) Tj ET Q q 0 0 0 rg BT 372.56 545.10 Td (T) Tj ET Q q 0 0 0 rg BT 377.97 545.10 Td (echnology and an MBA) Tj ET Q q 0 0 0 rg BT 473.24 545.10 Td ( from ) Tj ET Q q 0 0 0 rg BT 497.49 545.10 Td (T) Tj ET Q q 0 0 0 rg BT 502.90 545.10 Td (el-A) Tj ET Q q 0 0 0 rg BT 519.93 545.10 Td (viv ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (University) Tj ET Q q 0 0 0 rg BT 91.07 533.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 512.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 85.17 512.10 Td (. Karam has agreed to support the designation of a director by Bpifrance to serve on our Board as long as Bpifrance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (owns at least 5% of our outstanding shares or voting rights. Ms. Ferrere is Bpifrance) Tj ET Q q 0 0 0 rg BT 392.49 500.10 Td (s designated representative.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 456.33 Td (B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 456.33 Td (Compensation) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (Compensation of Executive Officers and Dir) Tj ET Q q 0 0 0 rg BT 238.46 436.10 Td (ectors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 419.10 Td (The aggregate compensation paid and benefits in kind granted by us to our executive of) Tj ET Q q 0 0 0 rg BT 423.76 419.10 Td (ficers and directors, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (share-based compensation, for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.70 407.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.28 407.10 Td ( was approximately $3.9 million. For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 395.10 Td (, we estimate that approximately $16,000 of the amounts set aside or accrued to provide pension, retirement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (or similar benefits to our employees was attributable to our executive of) Tj ET Q q 0 0 0 rg BT 337.29 383.10 Td (ficers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 362.10 Td (Our non-employee directors, and directors who are permitted to receive remuneration by their employers, are entitled to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (the following annual compensation:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 339.30 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 328.80 468.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 328.80 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 300.80 468.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 300.80 45.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 268.80 468.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 268.80 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 240.80 468.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 240.80 45.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 209.80 468.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 209.80 45.00 -14.00 re f /GS0 gs BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 319.37 Td (Attendance fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 319.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 319.37 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 305.37 Td (Attendance fees for lead independent director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 305.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 305.37 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 289.42 Td (Attendance fees for board committee chairperson) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 273.37 Td (Audit committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 273.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 273.37 Td (12,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 259.37 Td (Compensation committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 259.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 259.37 Td (9,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 245.37 Td (Nominating and corporate governance committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 245.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 245.37 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 229.92 Td (Attendance fees for board committee members) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 214.37 Td (Audit committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 214.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 214.37 Td (6,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 200.37 Td (Compensation committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 200.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 200.37 Td (4,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 186.37 Td (Nominating and corporate governance committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 186.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 186.37 Td (2,500) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.30 Td (In addition, our non-employee directors and directors who are so permitted by their employers, are also entitled to the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.30 Td (equity awards:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 123.47 Td (Annual award for continuing board members) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 232.72 128.00 Td (\(1\)\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 123.47 Td (W) Tj ET Q q 0 0 0 rg BT 422.14 123.47 Td (arrants to purchase 30,000 shares) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.30 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 95.30 Td (\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 95.30 Td (The annual equity awar) Tj ET Q q 0 0 0 rg BT 174.85 95.30 Td (d for continuing boar) Tj ET Q q 0 0 0 rg BT 260.32 95.30 Td (d members has an exer) Tj ET Q q 0 0 0 rg BT 352.15 95.30 Td (cise price equal to the fair market value of the ) Tj ET Q q 0 0 0 rg BT 539.14 95.30 Td (ADSs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 83.30 Td (on the date of grant and will fully vest on the earlier of \(a\)the thr) Tj ET Q q 0 0 0 rg BT 342.04 83.30 Td (ee year anniversary of the date of grant of the awar) Tj ET Q q 0 0 0 rg BT 548.30 83.30 Td (d ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 71.30 Td (and \(b\)the date immediately pr) Tj ET Q q 0 0 0 rg BT 205.94 71.30 Td (eceding the date of the annual meeting of our shar) Tj ET Q q 0 0 0 rg BT 407.47 71.30 Td (eholders for the thir) Tj ET Q q 0 0 0 rg BT 487.38 71.30 Td (d year following ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 59.30 Td (the year of grant for the awar) Tj ET Q q 0 0 0 rg BT 198.46 59.30 Td (d, subject to the non-employee dir) Tj ET Q q 0 0 0 rg BT 334.16 59.30 Td (ector) Tj ET Q q 0 0 0 rg BT 355.08 59.30 Td () Tj ET Q q 0 0 0 rg BT 357.12 59.30 Td (s continued service to us thr) Tj ET Q q 0 0 0 rg BT 469.23 59.30 Td (ough the vesting date. ) Tj ET Q endstream endobj 151 0 obj <> endobj 152 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (72) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 722.10 Td (A) Tj ET Q q 0 0 0 rg BT 85.88 722.10 Td ( non-employee dir) Tj ET Q q 0 0 0 rg BT 158.26 722.10 Td (ector will r) Tj ET Q q 0 0 0 rg BT 202.33 722.10 Td (eceive an annual warrant awar) Tj ET Q q 0 0 0 rg BT 327.50 722.10 Td (d only if he or she has served on the boar) Tj ET Q q 0 0 0 rg BT 492.66 722.10 Td (d of dir) Tj ET Q q 0 0 0 rg BT 521.74 722.10 Td (ectors for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 710.10 Td (at least the pr) Tj ET Q q 0 0 0 rg BT 134.85 710.10 Td (eceding twelve months.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 698.10 Td (\(2\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 698.10 Td (All such awar) Tj ET Q q 0 0 0 rg BT 135.14 698.10 Td (ds will become fully vested upon a change of contr) Tj ET Q q 0 0 0 rg BT 337.22 698.10 Td (ol.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (No cash or warrants were awarded to Ms. Fererre in accordance with the restrictions of her employment agreement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (Bpifrance Lar) Tj ET Q q 0 0 0 rg BT 105.12 662.10 Td (ge ) Tj ET Q q 0 0 0 rg BT 116.88 662.10 Td (V) Tj ET Q q 0 0 0 rg BT 122.99 662.10 Td (enture.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 636.10 Td (Employment ) Tj ET Q q 0 0 0 rg BT 106.45 636.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 122.93 636.10 Td (eements with Executive Officers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 619.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 619.10 Td (e have entered into a managing director agreement with Geor) Tj ET Q q 0 0 0 rg BT 327.13 619.10 Td (ges Karam, our chairman and chief executive of) Tj ET Q q 0 0 0 rg BT 519.08 619.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 536.84 619.10 Td (. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.10 Td (Item7.BRelated Party ) Tj ET Q q 0 0 0 rg BT 155.40 607.10 Td (T) Tj ET Q q 0 0 0 rg BT 161.16 607.10 Td (ransactionsAgreements with Executive Of) Tj ET Q q 0 0 0 rg BT 340.09 607.10 Td (ficers and DirectorsEmployment ) Tj ET Q q 0 0 0 rg BT 482.55 607.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 536.23 607.10 Td (W) Tj ET Q q 0 0 0 rg BT 544.87 607.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (have entered into standard employment agreements with each of our other executive of) Tj ET Q q 0 0 0 rg BT 397.52 595.10 Td (ficers. ) Tj ET Q q 0 0 0 rg BT 424.54 595.10 Td (There are no arrangements or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (understanding between us and any of our other executive of) Tj ET Q q 0 0 0 rg BT 288.41 583.10 Td (ficers providing for benefits upon termination of their employment, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.10 Td (other than as required by applicable law) Tj ET Q q 0 0 0 rg BT 208.79 571.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (Equity Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 528.10 Td (Beginning in 2004, we have issued to our employees and consultants stock options, founders' warrants and warrants to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.10 Td (purchase our ordinary shares, and restricted share awards. Due to French corporate law and tax considerations, we have issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.10 Td (such equity awards under four types of equity plans, collectively referred to in this discussion as our equity plans. Our equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.10 Td (plans provide for the issue of restricted free shares or stock options to employees pursuant to our Stock Option and Restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.10 Td (Share ) Tj ET Q q 0 0 0 rg BT 74.22 480.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.52 480.10 Td (ward Plans; warrants to our business partners, including consultants and advisors, who have long-term relationships ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.10 Td (with us and advise us on a regular basis, pursuant to our BSA) Tj ET Q q 0 0 0 rg BT 294.75 468.10 Td ( Subscription Plans; and prior to our initial public of) Tj ET Q q 0 0 0 rg BT 503.71 468.10 Td (fering in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.10 Td (United States in ) Tj ET Q q 0 0 0 rg BT 115.33 456.10 Td (April 201) Tj ET Q q 0 0 0 rg BT 153.57 456.10 Td (1, founders' warrants to employees in France until the time of our initial public of) Tj ET Q q 0 0 0 rg BT 479.28 456.10 Td (fering, pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.10 Td (our BCE Subscription Plans. Founders' warrants are a specific type of option available to qualifying young companies in France ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.10 Td (and have a more favorable tax treatment for both the employee and the employer compared to stock options, but otherwise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.10 Td (function in the same manner as stock options, in particular in terms of vesting. Following completion of our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 408.10 Td (fering in the Unites States in ) Tj ET Q q 0 0 0 rg BT 173.74 408.10 Td (April 201) Tj ET Q q 0 0 0 rg BT 211.98 408.10 Td (1, we no longer issue founders' warrants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 387.10 Td (Under French law) Tj ET Q q 0 0 0 rg BT 145.05 387.10 Td (, the creation of each of these equity plans and the issuance of the underlying shares must be approved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (at the shareholders) Tj ET Q q 0 0 0 rg BT 127.06 375.10 Td ( general meeting. ) Tj ET Q q 0 0 0 rg BT 198.51 375.10 Td (The shareholders may delegate to our board of directors the authority to finalize the form ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (of the plans and to grant the securities within a period that cannot exceed 18 months for restricted share awards, founders' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.10 Td (warrants and warrants, and 38 months for stock options. ) Tj ET Q q 0 0 0 rg BT 276.22 351.10 Td (The shareholders have nevertheless historically delegated the authority ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (to our board to grant these securities within a period that cannot exceed 12 months. Once approved by the shareholders) Tj ET Q q 0 0 0 rg BT 528.05 339.10 Td ( general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (meeting, these equity plans cannot be extended either in duration or in size. ) Tj ET Q q 0 0 0 rg BT 353.39 327.10 Td (W) Tj ET Q q 0 0 0 rg BT 362.03 327.10 Td (e have therefore implemented new equity plans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (each year) Tj ET Q q 0 0 0 rg BT 86.97 315.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 294.10 Td (From 2004 through March 29, 2019, our shareholders have approved and authorized the issuance of an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (16,505,500 shares under our equity plans. ) Tj ET Q q 0 0 0 rg BT 218.64 282.10 Td (At March 29, 2019, there were outstanding stock options, founders' warrants and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (warrants to purchase a total of 5,865,992 of our shares issued under our equity plans at a weighted average exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td ($3.1) Tj ET Q q 0 0 0 rg BT 66.63 258.10 Td (1, of which 3,086,200 were held by our directors and executive of) Tj ET Q q 0 0 0 rg BT 330.26 258.10 Td (ficers at a weighted average exercise price of $3.39 per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (share. Of these outstanding stock options, founders' warrants and warrants, at March 29, 2019, options and warrants to purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (5,164,166 ordinary shares were vested and exercisable, of which 2,566,992 were held by our directors and executive of) Tj ET Q q 0 0 0 rg BT 526.38 234.10 Td (ficers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (At March 29, 2019, there were 2,467,390 unvested restricted share awards outstanding, of which 1,232,813 were held by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (directors and executive of) Tj ET Q q 0 0 0 rg BT 152.88 210.10 Td (ficers. ) Tj ET Q q 0 0 0 rg BT 182.04 210.10 Td (As of March 29, 2019, 289,653 restricted shares \(157,812 held by our directors and executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 198.10 Td (ficers\) had vested but were not yet freely transferable under the restrictions of the plans. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 177.10 Td (The stock options, founders' warrants and warrants granted under each of our equity plans were granted on substantially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (the same terms. In general, vesting of the stock options and founders' warrants occurs over four years, with 25% vesting after an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.10 Td (initial 12months and the remaining 75% vesting monthly over the remaining 36 months or twelve quarters, or may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (immediate when linked to employee performance. Restricted shares also generally vest over four years with either 25% vesting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.10 Td (after an initial 12 months or 50% vesting after the initial 24 months, and the remainder vesting over the remaining 12 or 8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.10 Td (quarters, respectively) Tj ET Q q 0 0 0 rg BT 134.37 117.10 Td (. In 2017 only) Tj ET Q q 0 0 0 rg BT 192.33 117.10 Td (, we added a restricted share plan with vesting based on company financial performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (over two years. In addition, restricted shares cannot be sold during the first 24 months after the grant date. In general, vesting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (of other warrants may be either on a monthly basis over a two-year or four) Tj ET Q q 0 0 0 rg BT 347.53 93.10 Td (-year period, or may be immediate, depending on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (nature of the service contract with the consultant or adviser) Tj ET Q q 0 0 0 rg BT 285.80 81.10 Td (. ) Tj ET Q q 0 0 0 rg BT 290.62 81.10 Td (The stock options, founders' warrants and warrants generally expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.10 Td (ten years after the date of grant if not exercised earlier) Tj ET Q q 0 0 0 rg BT 265.50 69.10 Td (. In general, when a stock option, restricted share or founders warrant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 57.10 Td (holder) Tj ET Q q 0 0 0 rg BT 75.42 57.10 Td () Tj ET Q q 0 0 0 rg BT 78.20 57.10 Td (s employment service with us, or a warrant holder) Tj ET Q q 0 0 0 rg BT 278.79 57.10 Td () Tj ET Q q 0 0 0 rg BT 281.57 57.10 Td (s service with us, terminates for any reason, his or her stock options ) Tj ET Q endstream endobj 153 0 obj <> endobj 154 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (or restricted shares or founders' warrants or warrants, as the case may be, will no longer continue to vest following termination. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (The holder may exercise any vested stock options or founders' warrants or warrants for a period of 30-90 days. In the event of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (death, the holder) Tj ET Q q 0 0 0 rg BT 116.79 698.10 Td () Tj ET Q q 0 0 0 rg BT 119.57 698.10 Td (s heirs or beneficiaries shall have a period of six months to exercise such founders' warrants, stock options or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (warrants. In the event that a third party acquires a 100% interest in us, an employee holder of stock options, restricted shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (and founders' warrants, who is subsequently dismissed has the right to exercise all of his or her options or warrants within 30 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (days, notwithstanding the current vesting schedule, and all unvested restricted shares shall vest immediately) Tj ET Q q 0 0 0 rg BT 480.68 662.10 Td (, conditional upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (such dismissal being at least one year from grant date and subject to the same requirement to hold the restricted shares until two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (years from the grant date. In the event of a change of control, as defined in the warrant equity plans subject to vesting, warrants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (that are not yet exercisable will become exercisable for 30 days following the ef) Tj ET Q q 0 0 0 rg BT 369.47 626.10 Td (fective date of the change of control.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 605.10 Td (Since our public listing in ) Tj ET Q q 0 0 0 rg BT 178.77 605.10 Td (April 201) Tj ET Q q 0 0 0 rg BT 217.01 605.10 Td (1, the exercise price of the stock options or warrants is the fair market value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (shares on the date of grant as determined by our board of directors, typically the closing price of the ) Tj ET Q q 0 0 0 rg BT 451.04 593.10 Td (ADSs on the grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (date.Prior to the public listing, the exercise price of the stock options, founders' warrants and warrants was equal to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (estimated fair value of the shares on the date of grant, based on our valuation, as negotiated with new investors, at the time of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (the last round of financing prior to the grant or based upon independent valuation analyses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 536.10 Td (In the event of certain changes in our share capital structure, such as a consolidation or share split or dividend, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (appropriate adjustments will be made to the numbers of shares and exercise prices under outstanding stock options, founders' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (warrants and warrants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 491.10 Td (The following table provides information regarding the options to purchase our ordinary shares and restricted shares held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (by each of our directors and of) Tj ET Q q 0 0 0 rg BT 172.05 479.10 Td (ficers who beneficially own greater than one percent of our ordinary shares or have options to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (purchase more than one percent of our ordinary shares as of March 29, 2019:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 396.60 131.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 396.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 396.60 46.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 396.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 396.60 47.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 396.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 396.60 47.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 396.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 396.60 47.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 396.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 396.60 65.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 396.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 396.60 85.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 357.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 357.60 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 357.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 357.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 357.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 357.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 357.60 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 329.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 329.60 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 329.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 329.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 329.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 329.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 329.60 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 301.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 301.60 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 301.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 301.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 301.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 301.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 301.60 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 273.60 131.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 273.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 273.60 46.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 273.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 273.60 47.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 273.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 273.60 47.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 273.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 273.60 47.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 273.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 273.60 65.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 273.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 273.60 85.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 234.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 234.60 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 234.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 234.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 234.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 234.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 234.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 234.60 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 206.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 206.60 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 206.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 206.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 206.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 206.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 206.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 206.60 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 178.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 178.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 178.60 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 178.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 178.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 178.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 178.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 178.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 178.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 178.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 178.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 178.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 178.60 85.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 436.6 m 231 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 436.6 m 235 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 436.6 m 282 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 436.6 m 286 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 436.6 m 333 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 436.6 m 384 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 436.6 m 388 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 436.6 m 453 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 436.6 m 457 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 436.6 m 542 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 396.6 m 231 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 396.6 m 235 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 396.6 m 282 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 396.6 m 286 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 436.6 m 333 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 396.6 m 333 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 396.6 m 384 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 396.6 m 453 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 396.6 m 542 396.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 224.95 440.85 Td (Restricted Shares \(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 440.85 Td (Options) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 400.85 Td (Name \(T) Tj ET Q q 0 0 0 rg BT 80.87 400.85 Td (itle\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.35 408.85 Td (Number) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 192.35 400.85 Td (Unvested) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.85 424.85 Td (Number) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 246.30 416.85 Td (V) Tj ET Q q 0 0 0 rg BT 251.63 416.85 Td (ested,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 245.45 408.85 Td (T) Tj ET Q q 0 0 0 rg BT 250.20 408.85 Td (rading) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 241.75 400.85 Td (Restricted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 291.30 408.85 Td (Grant Date) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.50 400.85 Td (Fair ) Tj ET Q q 0 0 0 rg BT 307.31 400.85 Td (V) Tj ET Q q 0 0 0 rg BT 312.58 400.85 Td (alue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.85 400.85 Td (Number) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.20 408.85 Td (Exercise) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.75 400.85 Td (Price) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.55 400.85 Td (Expiration Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 387.17 Td (Dr) Tj ET Q q 0 0 0 rg BT 62.78 387.17 Td (. Geor) Tj ET Q q 0 0 0 rg BT 87.40 387.17 Td (ges Karam, Chairman) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 377.17 Td (and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 147.10 377.17 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.25 376.27 Td (131,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 376.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.75 376.27 Td ($1.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.75 376.27 Td (500,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.90 376.27 Td (6.26\($7.67\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.40 376.27 Td (Mar) Tj ET Q q 0 0 0 rg BT 489.78 376.27 Td (.8,2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.75 362.17 Td (93,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 362.17 Td (56,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.75 362.17 Td ($3.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 362.17 Td (50,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 362.17 Td ($2.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.95 362.17 Td (Dec.13,2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.25 348.17 Td (262,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 348.17 Td (87,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.75 348.17 Td ($1.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.75 348.17 Td (150,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 348.17 Td ($1.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.95 348.17 Td (Dec. 12, 2023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.25 334.17 Td (500,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.75 334.17 Td ($0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.75 334.17 Td (170,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 334.17 Td ($1.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.90 334.17 Td (July 22, 2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.75 320.17 Td (130,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 320.17 Td ($1.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 320.17 Td (Dec.1) Tj ET Q q 0 0 0 rg BT 497.01 320.17 Td (1,2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 306.17 Td (98,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 306.17 Td ($1.94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 306.17 Td (Apr) Tj ET Q q 0 0 0 rg BT 486.78 306.17 Td (. 21, 2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.75 292.17 Td (170,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 292.17 Td ($1.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.90 292.17 Td (July 20, 2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.75 278.17 Td (100,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 278.17 Td ($1.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.95 278.17 Td (Dec. 14, 2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 264.17 Td (Bertrand Debray) Tj ET Q q 0 0 0 rg BT 118.76 264.17 Td (, Chief) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 254.17 Td (Operating Of) Tj ET Q q 0 0 0 rg BT 105.36 254.17 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.75 253.27 Td (13,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 253.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.75 253.27 Td ($1.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.75 253.27 Td (150,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.90 253.27 Td (6.26\($7.67\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.40 253.27 Td (Mar) Tj ET Q q 0 0 0 rg BT 489.78 253.27 Td (. 8, 2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.75 239.17 Td (20,625) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.75 239.17 Td (9,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.75 239.17 Td ($1.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 239.17 Td (24,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 239.17 Td ($2.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.95 239.17 Td (Dec. 13, 2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.75 225.17 Td (80,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.75 225.17 Td ($0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 225.17 Td (24,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 225.17 Td ($1.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.95 225.17 Td (Dec. 12, 2023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 211.17 Td (50,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 211.17 Td ($1.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.90 211.17 Td (July 22, 2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 197.17 Td (28,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 197.17 Td ($1.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 197.17 Td (Dec.1) Tj ET Q q 0 0 0 rg BT 497.01 197.17 Td (1,2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 183.17 Td (50,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 183.17 Td ($1.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.90 183.17 Td (July 20, 2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 169.17 Td (24,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.75 169.17 Td ($1.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.95 169.17 Td (Dec. 14, 2025) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 65.98 141.10 Td (The restricted shares also vest over four years with 25% vesting after an initial 12 months and the remainder vesting over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.10 Td (the remaining 36 months. ) Tj ET Q q 0 0 0 rg BT 154.03 129.10 Td (The restricted shares cannot be sold during the first 24 months after the grant date. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 83.33 Td (C.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 83.33 Td (Board Practices) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 63.10 Td (In accordance with French law governing a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 249.26 63.10 Td (socit anonyme) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.62 63.10 Td (, our business is overseen by our board of directors and by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 51.10 Td (our chairman. ) Tj ET Q q 0 0 0 rg BT 107.35 51.10 Td (The board of directors has appointed Dr) Tj ET Q q 0 0 0 rg BT 266.75 51.10 Td (.Karam as our chairman, who also serves as our chief executive of) Tj ET Q q 0 0 0 rg BT 534.24 51.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 552.00 51.10 Td (. ) Tj ET Q endstream endobj 155 0 obj <> endobj 156 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (Subject to the prior authorization of the board of directors for certain decisions as required under French law) Tj ET Q q 0 0 0 rg BT 482.87 722.10 Td (, the chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (executive of) Tj ET Q q 0 0 0 rg BT 98.46 710.10 Td (ficer has full authority to manage our af) Tj ET Q q 0 0 0 rg BT 257.39 710.10 Td (fairs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 689.10 Td (Our board of directors is responsible for) Tj ET Q q 0 0 0 rg BT 233.61 689.10 Td (, among other things, presenting our accounts to our shareholders for their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (approval and convening shareholder meetings. ) Tj ET Q q 0 0 0 rg BT 238.15 677.10 Td (The board of directors also reviews and monitors our economic, financial and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (technical strategies. ) Tj ET Q q 0 0 0 rg BT 130.67 665.10 Td (The directors are elected by the shareholders at an ordinary general meeting. Under French law) Tj ET Q q 0 0 0 rg BT 510.69 665.10 Td (, a director ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (may be an individual or a corporation and the board of directors must be composed at all times of a minimum of three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (members.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 620.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 620.10 Td (ithin the limits set out by the corporate purposes \() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 281.11 620.10 Td (objet social) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.49 620.10 Td (\) of our company and the powers expressly granted by law ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (to the shareholders) Tj ET Q q 0 0 0 rg BT 127.62 608.10 Td ( general meeting, the board of directors may deliberate upon our operations and make any decisions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (accordance with our business. However) Tj ET Q q 0 0 0 rg BT 208.21 596.10 Td (, a director must abstain from voting on matters in which the director has an interest. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (The board of directors can only deliberate if at least half of the directors attend the meeting in the manners provided for in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (by-laws. Decisions of the board of directors are taken by the majority of the directors present or represented. Under French law) Tj ET Q q 0 0 0 rg BT 557.56 572.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (our directors and chief executive of) Tj ET Q q 0 0 0 rg BT 191.20 560.10 Td (ficer may not, under any circumstances, borrow money from us or obtain an extension of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (credit or obtain a surety from us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 527.10 Td (Our board of directors currently consists of nine directors, which is the maximum permitted under our by-laws. Pursuant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (to the terms of senior debt issued to Harbert European Special Lending Company II S.a.r) Tj ET Q q 0 0 0 rg BT 404.41 515.10 Td (.l. \("Harbert"\), the Board approved on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (October 23, 2018, the nomination of an observer to the Board representing Harbert. Our board of directors has determined that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (each of Messrs. Cummins, Maitre, Nottenbur) Tj ET Q q 0 0 0 rg BT 230.40 491.10 Td (g, de Pesquidoux, Pitteloud and Slonimsky and Ms. Ferrere qualify as independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (under the applicable rules and regulations of the SEC and the NYSE.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 458.10 Td (Under our by-laws, the sections of the by-laws relating to the number of directors, election and removal of a director from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 446.10 Td (fice may be modified only by a resolution adopted by 66) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 284.26 450.63 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.89 446.10 Td (2/3% of our shareholders present or represented. ) Tj ET Q q 0 0 0 rg BT 481.93 446.10 Td (A) Tj ET Q q 0 0 0 rg BT 488.60 446.10 Td ( director) Tj ET Q q 0 0 0 rg BT 522.57 446.10 Td () Tj ET Q q 0 0 0 rg BT 525.34 446.10 Td (s term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (expires at the end of the ordinary shareholders) Tj ET Q q 0 0 0 rg BT 237.30 434.10 Td ( general meeting convened to vote upon the accounts of the then-preceding fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (year and is held in the year during which the term of such director comes to an end unless such director) Tj ET Q q 0 0 0 rg BT 463.07 422.10 Td () Tj ET Q q 0 0 0 rg BT 465.85 422.10 Td (s term expires earlier in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (the event of a resignation or removal. ) Tj ET Q q 0 0 0 rg BT 201.49 410.10 Td (The following table sets forth the names of the directors of our company) Tj ET Q q 0 0 0 rg BT 490.75 410.10 Td (, the dates of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (their initial appointment as directors and the expiration dates of their current term.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 359.60 321.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 359.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 359.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 359.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 359.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 359.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 359.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 331.60 321.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 331.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 331.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 331.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 331.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 331.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 331.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 303.60 321.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 303.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 303.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 303.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 303.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 303.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 303.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 275.60 321.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 275.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 275.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 275.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 275.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 275.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 275.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 247.60 321.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 247.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 247.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 247.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 247.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 247.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 247.60 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 359.6 m 435 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 359.6 m 499 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 359.6 m 563 359.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 363.83 Td (Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.55 371.83 Td (Curr) Tj ET Q q 0 0 0 rg BT 407.73 371.83 Td (ent) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.90 363.83 Td (position) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.20 371.83 Td (Y) Tj ET Q q 0 0 0 rg BT 461.09 371.83 Td (ear) Tj ET Q q 0 0 0 rg BT 472.05 371.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.70 363.83 Td (appointment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.30 379.68 Td (T) Tj ET Q q 0 0 0 rg BT 527.90 379.68 Td (erm) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.90 371.68 Td (expiration) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.00 363.68 Td (year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 350.17 Td (Geor) Tj ET Q q 0 0 0 rg BT 72.40 350.17 Td (ges Karam) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 350.17 Td (Chairman) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 350.17 Td (2003) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 350.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 336.17 Td (W) Tj ET Q q 0 0 0 rg BT 61.54 336.17 Td (esley Cummins) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 336.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 336.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 336.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 322.17 Td (Mailys Ferrere) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 322.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 322.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 322.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 308.17 Td (Y) Tj ET Q q 0 0 0 rg BT 59.22 308.17 Td (ves Maitre) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 308.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 308.17 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 308.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 294.17 Td (Richard Nottenbur) Tj ET Q q 0 0 0 rg BT 127.11 294.17 Td (g) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 294.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 294.17 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 294.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 280.17 Td (Hubert de Pesquidoux) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 280.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 280.17 Td (201) Tj ET Q q 0 0 0 rg BT 473.46 280.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 280.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 266.17 Td (Dominique Pitteloud) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 266.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 266.17 Td (2005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 266.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 252.17 Td (Alok Sharma) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 252.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 252.17 Td (201) Tj ET Q q 0 0 0 rg BT 473.46 252.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 252.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 238.17 Td (Zvi Slonimsky) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 238.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 238.17 Td (2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 238.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 224.17 Td (Mailys Ferrere) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.50 224.17 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 224.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 224.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 199.10 Td (Each director is elected for a three-year term by a vote of the majority of the shareholders present or represented. Under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (French law) Tj ET Q q 0 0 0 rg BT 93.56 187.10 Td (, a director who is an individual cannot serve on more than five boards of directors or supervisory boards in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (corporations \() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.32 175.10 Td (socit anonyme) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.68 175.10 Td (\) registered in France; directorships in companies controlled by us, as defined in article L.233-16 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (of the French Commercial Code, are not taken into account.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 142.10 Td (Directors may resign at any time and their position as members of the board of directors may be revoked at any time by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (majority vote of the shareholders present or represented at a shareholders) Tj ET Q q 0 0 0 rg BT 344.75 130.10 Td ( general meeting, excluding abstentions. ) Tj ET Q q 0 0 0 rg BT 508.14 130.10 Td (The number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (of directors who are over 70 years old may not exceed one third of the total number of directors and the chairman of our board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (must not be over 65 years old. ) Tj ET Q q 0 0 0 rg BT 172.26 106.10 Td (A) Tj ET Q q 0 0 0 rg BT 178.93 106.10 Td ( director does not need to be a French national and there is no limitation on the number of terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (that a director may serve. In case of removal without cause, directors may be entitled to damages.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 73.10 Td (V) Tj ET Q q 0 0 0 rg BT 79.61 73.10 Td (acancies on our board of directors, including vacancies resulting from there being fewer than the maximum number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.10 Td (directors permitted by our by-laws, provided there are at least three directors remaining, may be filled by a vote of a simple ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.10 Td (majority of the directors then in of) Tj ET Q q 0 0 0 rg BT 187.06 49.10 Td (fice. ) Tj ET Q q 0 0 0 rg BT 206.86 49.10 Td (The appointment must then be ratified by the next shareholders) Tj ET Q q 0 0 0 rg BT 462.43 49.10 Td ( general meeting. ) Tj ET Q endstream endobj 157 0 obj <> endobj 158 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (Directors chosen or appointed to fill a vacancy shall be elected by the board for the remaining duration of the current term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (the replaced director) Tj ET Q q 0 0 0 rg BT 131.12 710.10 Td (. In the event the board would be composed of less than three directors as a result of a vacancy) Tj ET Q q 0 0 0 rg BT 508.67 710.10 Td (, meetings of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (the board of directors shall no longer be permitted to be held except to immediately convene a shareholders) Tj ET Q q 0 0 0 rg BT 481.66 698.10 Td ( general meeting to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (elect one or several new directors so there are at least three directors serving on the board of directors, in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (French law) Tj ET Q q 0 0 0 rg BT 93.56 674.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 653.10 Td (Under French law) Tj ET Q q 0 0 0 rg BT 145.05 653.10 Td (, employees may be elected to serve as a director) Tj ET Q q 0 0 0 rg BT 339.96 653.10 Td (. However) Tj ET Q q 0 0 0 rg BT 381.21 653.10 Td (, such employee-director must perform ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (actual functions separate from his/her role as director in order to retain the benefit of his/her employment agreement. ) Tj ET Q q 0 0 0 rg BT 518.87 641.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (number of directors who are our employees cannot exceed one third of the directors then in of) Tj ET Q q 0 0 0 rg BT 425.30 629.10 Td (fice. No director can enter into an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (employment agreement with us after his/her election to the board of directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 596.10 Td (French law requires that companies having at least 50 employees for a period of 12 consecutive months have a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 518.64 596.10 Td (Comit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (dEntr) Tj ET Q q 0 0 0 rg BT 75.24 584.10 Td (eprise) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.68 584.10 Td (, or ) Tj ET Q q 0 0 0 rg BT 115.33 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 123.96 584.10 Td (orkers) Tj ET Q q 0 0 0 rg BT 151.54 584.10 Td ( Council, composed of representatives elected from among the personnel. Our ) Tj ET Q q 0 0 0 rg BT 465.98 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 474.62 584.10 Td (orkers) Tj ET Q q 0 0 0 rg BT 502.20 584.10 Td ( Council was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (formed in 2007. ) Tj ET Q q 0 0 0 rg BT 115.97 572.10 Td (T) Tj ET Q q 0 0 0 rg BT 121.38 572.10 Td (wo of these representatives are entitled to attend all meetings of the board of directors and the shareholders, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (but they do not have any voting rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 539.10 Td (Directors are required to comply with applicable law and with our by-laws. Our directors may be jointly and severally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (liable for actions that they take that are contrary to our interests. Directors are jointly and severally liable for collective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (decisions. However) Tj ET Q q 0 0 0 rg BT 127.97 515.10 Td (, each director may avoid liability by proving that he or she acted diligently and with caution, in particular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (by not approving the decision at issue or even by resigning in the event of certain critical situations. In certain critical situations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (in order to avoid liability for decisions made by the board, a director must resign from his or her of) Tj ET Q q 0 0 0 rg BT 444.77 491.10 Td (fice. Directors may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (individually liable for actions fully attributable to them in connection with a specific mission assigned to them by the board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (directors. ) Tj ET Q q 0 0 0 rg BT 88.93 467.10 Td (As a director) Tj ET Q q 0 0 0 rg BT 140.18 467.10 Td (, the chairman of the board is liable under the same conditions. ) Tj ET Q q 0 0 0 rg BT 393.81 467.10 Td (The chief executive of) Tj ET Q q 0 0 0 rg BT 483.30 467.10 Td (ficer may be liable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (with respect to third parties if he commits a fault that is severable from his duties and which is only attributable to him.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 429.10 Td (Dir) Tj ET Q q 0 0 0 rg BT 63.76 429.10 Td (ectors) Tj ET Q q 0 0 0 rg BT 91.88 429.10 Td ( Service Contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 412.10 Td (See Item 7.BRelated Party ) Tj ET Q q 0 0 0 rg BT 196.34 412.10 Td (T) Tj ET Q q 0 0 0 rg BT 202.10 412.10 Td (ransactionsAgreements with Executive Of) Tj ET Q q 0 0 0 rg BT 381.03 412.10 Td (ficers and DirectorsDirector ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.10 Td (Compensation and ) Tj ET Q q 0 0 0 rg BT 126.16 400.10 Td (Agreements. ) Tj ET Q q 0 0 0 rg BT 183.73 400.10 Td (There are no arrangements or understandings between us and any of our non-employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (directors providing for benefits upon termination of their employment or service as directors of our company) Tj ET Q q 0 0 0 rg BT 484.56 388.10 Td (, other than as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (required by applicable law) Tj ET Q q 0 0 0 rg BT 155.19 376.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (Board Leadership Structur) Tj ET Q q 0 0 0 rg BT 165.99 350.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 333.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 333.10 Td (e believe that the interests of our shareholders are best served by maintaining our Board of Directors) Tj ET Q q 0 0 0 rg BT 486.26 333.10 Td ( flexibility in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.10 Td (determining the board leadership structure that is best suited to the needs of the Company at any particular time. Our Board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.10 Td (Internal Charter provides that where the Chairman is also the Chief Executive Of) Tj ET Q q 0 0 0 rg BT 373.66 309.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 391.57 309.10 Td (, the independent directors will appoint a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.10 Td (lead independent director to coordinate their ef) Tj ET Q q 0 0 0 rg BT 237.01 297.10 Td (forts and activities. ) Tj ET Q q 0 0 0 rg BT 315.51 297.10 Td (Y) Tj ET Q q 0 0 0 rg BT 321.73 297.10 Td (ves Maitre currently services as lead independent director) Tj ET Q q 0 0 0 rg BT 551.92 297.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.10 Td (The defined role of the lead independent director is designed to ensure a strong, independent and active Board of Directors. ) Tj ET Q q 0 0 0 rg BT 544.89 285.10 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.10 Td (set forth in the Board Internal Charter) Tj ET Q q 0 0 0 rg BT 200.16 273.10 Td (, the lead independent director has clearly delineated and comprehensive duties. ) Tj ET Q q 0 0 0 rg BT 521.79 273.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.10 Td (duties include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 249.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 249.10 Td (Presiding at all meetings of the board at which the chairman is not present, including executive sessions of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 237.10 Td (independent directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 225.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 225.10 Td (Calling meetings of the independent directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 213.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 213.10 Td (Serving as liaison between the independent directors and the chairman and chief executive of) Tj ET Q q 0 0 0 rg BT 457.83 213.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 475.60 213.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 201.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 201.10 Td (Collecting feedback from the board members in order to help the chairman finalize the meeting agendas.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 189.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 189.10 Td (Based on feedback from the other board members, recommending to the chairman that a special board of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 177.10 Td (meeting be called focused on a specific agenda.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 165.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 165.10 Td (If a shareholder requests to talk with an independent director and not to the chairman and/or the chief executive of) Tj ET Q q 0 0 0 rg BT 541.69 165.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 559.61 165.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 153.10 Td (representing the board of directors for such communication in coordination with the chairman.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (Board Committees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 110.10 Td (Our board of directors has established an audit committee, a compensation committee and a nominating and corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (governance committee.) Tj ET Q endstream endobj 159 0 obj <> endobj 160 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (76) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Audit Committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (Our audit committee consists of Hubert de Pesquidoux, Richard Nottenbur) Tj ET Q q 0 0 0 rg BT 372.15 705.25 Td (g and Dominique Pitteloud, with Mr) Tj ET Q q 0 0 0 rg BT 517.15 705.25 Td (.de ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (Pesquidoux serving as chairperson. Our audit committee oversees our corporate accounting and financial reporting process and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (internal controls over financial reporting. Our audit committee evaluates the independent registered public accounting firm) Tj ET Q q 0 0 0 rg BT 543.49 681.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (qualifications, independence and performance; recommends to the shareholders with respect to the identity and compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (of the independent registered public accounting firm; approves the retention of the independent registered public accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (firm to perform any proposed permissible non-audit services; reviews our Consolidated Financial Statements; reviews our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (critical accounting policies and estimates and internal controls over financial reporting; discusses with management and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.25 Td (independent registered public accounting firm the results of the annual audit and the reviews of our quarterly Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.25 Td (Financial Statements; and reviews the scope and results of internal audits and evaluates the performance of the internal auditor) Tj ET Q q 0 0 0 rg BT 555.44 609.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.25 Td (Our board of directors has determined that each of our audit committee members meets the requirements for independence and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.25 Td (financial literacy under the applicable rules and regulations of the SEC and the NYSE. Our board of directors has determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.25 Td (that Mr) Tj ET Q q 0 0 0 rg BT 78.67 573.25 Td (.de Pesquidoux is an audit committee financial expert as defined under the applicable rules of the SEC and has the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.25 Td (requisite financial sophistication under the applicable rules and regulations of the NYSE. ) Tj ET Q q 0 0 0 rg BT 407.83 561.25 Td (The audit committee operates under a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.25 Td (written charter that satisfies the applicable rules of the SEC and the NYSE.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (Compensation Committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 506.25 Td (Our compensation committee consists of Zvi Slonimsky) Tj ET Q q 0 0 0 rg BT 297.83 506.25 Td (, Richard Nottenbur) Tj ET Q q 0 0 0 rg BT 377.35 506.25 Td (g and Dominique Pitteloud, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.17 494.25 Td (.Slonimsky serving as chairperson. Our compensation committee reviews and recommends policies relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (compensation and benefits of our of) Tj ET Q q 0 0 0 rg BT 193.45 482.25 Td (ficers and employees, which includes reviewing and approving corporate goals and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (objectives relevant to compensation of our chief executive of) Tj ET Q q 0 0 0 rg BT 293.67 470.25 Td (ficer and other senior of) Tj ET Q q 0 0 0 rg BT 389.56 470.25 Td (ficers, evaluating the performance of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 458.25 Td (ficers in light of those goals and objectives and setting compensation of these of) Tj ET Q q 0 0 0 rg BT 377.67 458.25 Td (ficers based on such evaluations. ) Tj ET Q q 0 0 0 rg BT 511.34 458.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (compensation committee also recommends to the board of directors the issue of stock options and other awards. Our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (directors has determined that each member our compensation committee meets the requirements for independence under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (applicable rules and regulations of the SEC and the NYSE. ) Tj ET Q q 0 0 0 rg BT 287.87 422.25 Td (The compensation committee operates under a written charter) Tj ET Q q 0 0 0 rg BT 534.72 422.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td (Nominating and Corporate Governance Committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 379.25 Td (Our nominating and corporate governance committee consists of ) Tj ET Q q 0 0 0 rg BT 334.72 379.25 Td (Y) Tj ET Q q 0 0 0 rg BT 340.94 379.25 Td (ves Maitre and Zvi Slonimsky) Tj ET Q q 0 0 0 rg BT 461.39 379.25 Td (, with Mr) Tj ET Q q 0 0 0 rg BT 498.33 379.25 Td (.Maitre serving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.25 Td (as chairperson. ) Tj ET Q q 0 0 0 rg BT 111.79 367.25 Td (The nominating and corporate governance committee is responsible for making recommendations regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.25 Td (candidates for directorships and the size and composition of our board. In making such recommendations, the nominating and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.25 Td (corporate governance committee considers the skills and experience of the directors or nominees in the context of the needs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.25 Td (our board of directors as well as the directors) Tj ET Q q 0 0 0 rg BT 232.58 331.25 Td ( or nominees) Tj ET Q q 0 0 0 rg BT 286.82 331.25 Td ( diversity of skills and experience in areas that are relevant to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.25 Td (business and activities. In addition, the nominating and corporate governance committee is responsible for overseeing our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.25 Td (corporate governance guidelines and reporting and making recommendations concerning governance matters. Our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.25 Td (directors has determined that each member of our nominating and corporate governance committee meets the requirements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.25 Td (independence under the applicable rules and regulations of the NYSE. ) Tj ET Q q 0 0 0 rg BT 332.83 283.25 Td (The nominating and corporate governance committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.25 Td (operates under a written charter) Tj ET Q q 0 0 0 rg BT 175.55 271.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 234.48 Td (D.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 234.48 Td (Employees) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 214.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 214.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.58 214.25 Td (, we had 227 full-time employees, of whom 148 were located in France, 23 were in the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (Kingdom, 18 were in the United States, 9 were in Singapore, 9 were in Israel, 8 were in China, 5 were in ) Tj ET Q q 0 0 0 rg BT 470.59 202.25 Td (T) Tj ET Q q 0 0 0 rg BT 476.00 202.25 Td (aiwan, 4 were in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (Sweden, and there was one employee in each of South Korea, Ukraine and Hong Kong. Management considers labor relations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (to be good. ) Tj ET Q q 0 0 0 rg BT 96.54 178.25 Td (W) Tj ET Q q 0 0 0 rg BT 105.17 178.25 Td (e also have independent contractors and consultants. ) Tj ET Q q 0 0 0 rg BT 316.78 178.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.28 178.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.86 178.25 Td (, we had 29 dedicated engineers from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (Global Logic in Ukraine for software development and testing, and also had 17 independent contractors in both research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (development and sales and marketing in France, Finland, the United Kingdom, the United States and Japan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 133.25 Td (At each date shown, we had the following employees, broken out by department and geography:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 122.45 Td () Tj ET Q endstream endobj 161 0 obj <> endobj 162 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (77) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 704.50 366.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 704.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 704.50 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 704.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 704.50 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 704.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 704.50 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 677.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 677.50 4.00 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gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 551.5 m 514 551.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 553.5 m 563 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 551.5 m 563 551.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 720.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.50 720.58 Td (At December) Tj ET Q q 0 0 0 rg BT 507.51 720.58 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 708.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 708.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 708.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 708.58 Td (2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 695.23 Td (Department:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 682.07 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 682.07 Td (148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 682.07 Td (185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 682.07 Td (176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 668.07 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 668.07 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 668.07 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 668.07 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 654.07 Td (General and administration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 654.07 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 654.07 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 654.07 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 640.07 Td (Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.50 640.07 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.50 640.07 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 640.07 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 626.07 Td (T) Tj ET Q q 0 0 0 rg BT 75.91 626.07 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 626.07 Td (213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 626.07 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 626.07 Td (227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 612.07 Td (Geography:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 599.07 Td (Europe, Middle East, ) Tj ET Q q 0 0 0 rg BT 139.70 599.07 Td (Africa) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 599.07 Td (165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 599.07 Td (188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 599.07 Td (185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 585.07 Td (Asia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 585.07 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 585.07 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.50 585.07 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 571.07 Td (Americas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 571.07 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 571.07 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 571.07 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 557.07 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 557.07 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 557.07 Td (213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 557.07 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 557.07 Td (227) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 521.23 Td (E.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 521.23 Td (Share Ownership) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 501.00 Td (For information regarding the share ownership of our directors and executive of) Tj ET Q q 0 0 0 rg BT 392.94 501.00 Td (ficers, please refer to Item 6.B.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.00 Td (CompensationEquity Plans and Item 7.AMajor Shareholders.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 463.00 Td (Item7. Major) Tj ET Q q 0 0 0 rg BT 109.02 463.00 Td ( Shar) Tj ET Q q 0 0 0 rg BT 131.90 463.00 Td (eholders and Related Party ) Tj ET Q q 0 0 0 rg BT 250.59 463.00 Td (T) Tj ET Q q 0 0 0 rg BT 256.52 463.00 Td (ransactions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 443.23 Td (A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 443.23 Td (Major Shareholders) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 423.00 Td (The following table sets forth information with respect to the beneficial ownership of our shares as of March 29, 2019:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 411.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 411.00 Td (each person, or group of af) Tj ET Q q 0 0 0 rg BT 192.65 411.00 Td (filiated persons, known by us to own beneficially more than 5% of our outstanding ) Tj ET Q q 0 0 0 rg BT 526.20 411.00 Td (ADSs or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 399.00 Td (ordinary shares;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 387.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 387.00 Td (each of our executive of) Tj ET Q q 0 0 0 rg BT 181.54 387.00 Td (ficers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 375.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 375.00 Td (each of our directors; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 363.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 363.00 Td (all of our executive of) Tj ET Q q 0 0 0 rg BT 173.22 363.00 Td (ficers and directors as a group.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 342.00 Td (Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission. ) Tj ET Q q 0 0 0 rg BT 514.30 342.00 Td (These rules ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.00 Td (generally attribute beneficial ownership of securities to persons who possess sole or shared voting or investment power with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.00 Td (respect to those securities, and include shares subject to options that are exercisable within 60 days after the date of this annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.00 Td (report. Such shares are also deemed outstanding for purposes of computing the percentage ownership of the person holding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.00 Td (option, but not the percentage ownership of any other person.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 273.00 Td (For the purpose of calculating the percentage of shares beneficially owned by any shareholder) Tj ET Q q 0 0 0 rg BT 449.34 273.00 Td (, this table lists applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.00 Td (percentage ownership based on 94,934,713 ordinary shares outstanding as of March 29, 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 240.00 Td (Unless otherwise indicated below) Tj ET Q q 0 0 0 rg BT 207.54 240.00 Td (, to our knowledge, all persons named in the table have sole voting and investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.00 Td (power with respect to their shares. ) Tj ET Q q 0 0 0 rg BT 189.00 228.00 Td (T) Tj ET Q q 0 0 0 rg BT 194.41 228.00 Td (o our knowledge, none of our selling shareholders is a broker) Tj ET Q q 0 0 0 rg BT 439.42 228.00 Td (-dealer or is af) Tj ET Q q 0 0 0 rg BT 497.26 228.00 Td (filiated with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.00 Td (broker) Tj ET Q q 0 0 0 rg BT 75.40 216.00 Td (-dealer) Tj ET Q q 0 0 0 rg BT 102.60 216.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 195.00 Td (Unless otherwise indicated in the footnotes to the table, the address of each individual listed in the table is c/o Sequans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.00 Td (Communications S.A., 15-55 boulevard Charles de Gaulle, 92700 Colombes, France.) 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60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 558.50 385.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 558.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 558.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 558.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 558.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 530.50 385.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 530.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 530.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 530.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 530.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 502.50 385.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 502.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 502.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 502.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 502.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 474.50 385.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 474.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 474.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 474.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 474.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 446.50 385.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 446.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 446.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 446.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 446.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 418.50 385.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 418.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 418.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 418.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 418.50 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 708.5 m 499 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 708.5 m 503 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 708.5 m 563 708.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 696.5 m 499 696.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 696.5 m 563 696.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 712.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.75 720.58 Td (Ordinary Shar) Tj ET Q q 0 0 0 rg BT 522.50 720.58 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.25 712.58 Td (BeneficiallyOwned) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 700.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.35 700.58 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.45 700.58 Td (Per) Tj ET Q q 0 0 0 rg BT 531.29 700.58 Td (cent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 687.23 Td (5% Shar) Tj ET Q q 0 0 0 rg BT 90.47 687.23 Td (eholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 674.07 Td (Bpifrance Participations) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 149.41 678.60 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.10 674.07 Td (12,085,561) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 674.07 Td (12.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 674.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 660.07 Td (Nokomis Capital, L.L.C.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 151.94 664.60 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.10 660.07 Td (9,609,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 660.07 Td (9.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 660.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 646.07 Td (A) Tj ET Q q 0 0 0 rg BT 58.92 646.07 Td (WM Investment Co. Participations) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 198.34 650.60 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.10 646.07 Td (9,214,784) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 646.07 Td (9.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 646.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 632.07 Td (Divisar Partners QP) Tj ET Q q 0 0 0 rg BT 131.38 632.07 Td (, L.P) Tj ET Q q 0 0 0 rg BT 149.44 632.07 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 151.94 636.60 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.10 632.07 Td (7,170,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 632.07 Td (7.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 632.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 618.07 Td (Dr) Tj ET Q q 0 0 0 rg BT 62.50 618.07 Td (.Geor) Tj ET Q q 0 0 0 rg BT 87.31 618.07 Td (ges Karam) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 130.35 622.60 Td (\(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.10 618.07 Td (4,414,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 618.07 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 618.07 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 604.23 Td (Executive Officers and Dir) Tj ET Q q 0 0 0 rg BT 166.46 604.23 Td (ectors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 591.07 Td (Dr) Tj ET Q q 0 0 0 rg BT 62.50 591.07 Td (.Geor) Tj ET Q q 0 0 0 rg BT 87.31 591.07 Td (ges Karam) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 130.35 595.60 Td (\(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.10 591.07 Td (4,414,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 591.07 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 591.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 577.07 Td (Deborah Choate) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 117.75 581.60 Td (\(6\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 577.07 Td (362,920) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 577.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 563.07 Td (W) Tj ET Q q 0 0 0 rg BT 61.54 563.07 Td (esley Cummins) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.80 563.12 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 549.07 Td (Bertrand Debray) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 119.41 553.60 Td (\(7\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.10 549.07 Td (1,205,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 549.07 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 549.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 535.07 Td (Didier Dutronc) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 113.32 539.60 Td (\(8\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 535.07 Td (125,823) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 535.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 521.07 Td (Mailys Ferrere) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.80 521.12 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.15 521.07 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 507.07 Td (Y) Tj ET Q q 0 0 0 rg BT 58.72 507.07 Td (ves Maitre) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 101.21 511.60 Td (\(9\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 507.07 Td (201,696) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 507.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 493.07 Td (Richard Nottenbur) Tj ET Q q 0 0 0 rg BT 127.02 493.07 Td (g) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 132.02 497.60 Td (\(10\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 493.07 Td (636,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 493.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 479.07 Td (Hubert de Pesquidoux) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 141.38 483.60 Td (\(1) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 146.55 483.60 Td (1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 479.07 Td (122,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 479.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 465.07 Td (Dominique Pitteloud) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 136.11 469.60 Td (\(12\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 465.07 Td (150,333) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 465.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 451.07 Td (Alok Sharma) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 105.55 455.60 Td (\(13\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 451.07 Td (1) Tj ET Q q 0 0 0 rg BT 467.65 451.07 Td (10,514) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 451.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 437.07 Td (Zvi Slonimsky) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 111.67 441.60 Td (\(14\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 437.07 Td (130,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 437.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 423.07 Td (Nikhil ) Tj ET Q q 0 0 0 rg BT 80.38 423.07 Td (T) Tj ET Q q 0 0 0 rg BT 85.79 423.07 Td (aluja) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 105.22 427.60 Td (\(15\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 423.07 Td (172,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.50 423.07 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 409.07 Td (All executive of) Tj ET Q q 0 0 0 rg BT 116.74 409.07 Td (ficers and directors as a group \(13 persons\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 289.18 413.60 Td (\(16\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.10 409.07 Td (7,633,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 409.07 Td (7.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 409.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.00 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 381.00 Td (* ) Tj ET Q q 0 0 0 rg BT 81.00 381.00 Td (Repr) Tj ET Q q 0 0 0 rg BT 100.07 381.00 Td (esents beneficial ownership of less than 1%.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 357.00 Td (\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 357.00 Td (Based on a Schedule 13D/A) Tj ET Q q 0 0 0 rg BT 191.41 357.00 Td ( filed with the SEC on January 18, 2018 and information pr) Tj ET Q q 0 0 0 rg BT 429.92 357.00 Td (ovided to the Company) Tj ET Q q 0 0 0 rg BT 521.85 357.00 Td (. Includes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 345.00 Td (12,085,561 shar) Tj ET Q q 0 0 0 rg BT 144.86 345.00 Td (es held by Bpifrance Participations S.A., or Bpifrance. Bpifrance is the wholly owned subsidiary of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 333.00 Td (BPI-Gr) Tj ET Q q 0 0 0 rg BT 109.57 333.00 Td (oupe \(bpifrance\), or BPI. The Caisse des Dpts et Consignations, or CDC, and EPIC BPI-Gr) Tj ET Q q 0 0 0 rg BT 488.06 333.00 Td (oupe, or EPIC, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 321.00 Td (each hold 50% of the shar) Tj ET Q q 0 0 0 rg BT 184.84 321.00 Td (e capital of BPI and jointly contr) Tj ET Q q 0 0 0 rg BT 316.67 321.00 Td (ol BPI. Nicolas Dufour) Tj ET Q q 0 0 0 rg BT 409.07 321.00 Td (cq is the Chief Executive Officer of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 309.00 Td (Bpifrance and he may be deemed to have shar) Tj ET Q q 0 0 0 rg BT 264.53 309.00 Td (ed voting and investment power over the shar) Tj ET Q q 0 0 0 rg BT 446.62 309.00 Td (es held by Bpifrance. Paul-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 297.00 Td (Franois Fournier is the dir) Tj ET Q q 0 0 0 rg BT 192.35 297.00 Td (ector of the Innovation Business Unit of Bpifrance and Malys Ferrr) Tj ET Q q 0 0 0 rg BT 469.72 297.00 Td (e is the dir) Tj ET Q q 0 0 0 rg BT 511.84 297.00 Td (ector of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 285.00 Td (Lar) Tj ET Q q 0 0 0 rg BT 94.03 285.00 Td (ge V) Tj ET Q q 0 0 0 rg BT 110.97 285.00 Td (entur) Tj ET Q q 0 0 0 rg BT 131.71 285.00 Td (e Fund of Bpifrance, and they may be deemed to have shar) Tj ET Q q 0 0 0 rg BT 366.82 285.00 Td (ed voting and investment power over the shar) Tj ET Q q 0 0 0 rg BT 548.92 285.00 Td (es ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 273.00 Td (held by Bpifrance. None of BPI, CDC, EPIC, Nicolas Dufour) Tj ET Q q 0 0 0 rg BT 324.83 273.00 Td (cq, Paul-Franois Fournier or Malys Ferrr) Tj ET Q q 0 0 0 rg BT 506.10 273.00 Td (e holds any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 261.00 Td (shar) Tj ET Q q 0 0 0 rg BT 97.36 261.00 Td (es dir) Tj ET Q q 0 0 0 rg BT 119.49 261.00 Td (ectly) Tj ET Q q 0 0 0 rg BT 137.81 261.00 Td (. BPI may be deemed to be the beneficial owner of 12,085,561 shar) Tj ET Q q 0 0 0 rg BT 406.55 261.00 Td (es, indir) Tj ET Q q 0 0 0 rg BT 438.95 261.00 Td (ectly thr) Tj ET Q q 0 0 0 rg BT 471.62 261.00 Td (ough its sole ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 249.00 Td (ownership of Bpifrance. CDC and EPIC may be deemed to be the beneficial owner of 12,085,561 shar) Tj ET Q q 0 0 0 rg BT 489.80 249.00 Td (es, indir) Tj ET Q q 0 0 0 rg BT 522.21 249.00 Td (ectly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 237.00 Td (thr) Tj ET Q q 0 0 0 rg BT 91.25 237.00 Td (ough their joint ownership and contr) Tj ET Q q 0 0 0 rg BT 238.38 237.00 Td (ol of BPI. Nicolas Dufour) Tj ET Q q 0 0 0 rg BT 341.06 237.00 Td (cq. Paul-Franois Fournier and Malys Ferrr) Tj ET Q q 0 0 0 rg BT 528.44 237.00 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 225.00 Td (disclaim beneficial ownership of the shar) Tj ET Q q 0 0 0 rg BT 244.84 225.00 Td (es held by Bpifrance. The principal addr) Tj ET Q q 0 0 0 rg BT 406.95 225.00 Td (ess for Bpifrance, BPI, EPIC, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 213.00 Td (Nicolas Dufour) Tj ET Q q 0 0 0 rg BT 141.53 213.00 Td (cq is 6-8 Boulevar) Tj ET Q q 0 0 0 rg BT 214.75 213.00 Td (d Haussmann, 75009 Paris, France.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.95 201.00 Td (\(2\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 201.00 Td (Based on a Schedule 13D/A) Tj ET Q q 0 0 0 rg BT 191.41 201.00 Td ( filed with the SEC on January 23, 2018. Includes 7,628,513 shar) Tj ET Q q 0 0 0 rg BT 455.46 201.00 Td (es held by Nokomis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 189.00 Td (Capital, L.L.C., or Nokomis Capital, pur) Tj ET Q q 0 0 0 rg BT 242.66 189.00 Td (chased by Nokomis Capital thr) Tj ET Q q 0 0 0 rg BT 366.18 189.00 Td (ough the accounts of certain private funds and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 177.00 Td (managed accounts \(collectively) Tj ET Q q 0 0 0 rg BT 205.46 177.00 Td (, the Nokomis ) Tj ET Q q 0 0 0 rg BT 262.49 177.00 Td (Accounts\) and appr) Tj ET Q q 0 0 0 rg BT 341.00 177.00 Td (oximately 1,981,000 Or) Tj ET Q q 0 0 0 rg BT 435.61 177.00 Td (dinary Shar) Tj ET Q q 0 0 0 rg BT 482.74 177.00 Td (es r) Tj ET Q q 0 0 0 rg BT 497.09 177.00 Td (eceivable upon ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 165.00 Td (conversion of pr) Tj ET Q q 0 0 0 rg BT 145.13 165.00 Td (esently convertible notes.Nokomis Capital is pr) Tj ET Q q 0 0 0 rg BT 336.67 165.00 Td (ohibited fr) Tj ET Q q 0 0 0 rg BT 378.25 165.00 Td (om converting the pr) Tj ET Q q 0 0 0 rg BT 461.47 165.00 Td (esently convertible notes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 153.00 Td (held by them to obtain ownership in excess of 9.9%. Nokomis Capital serves as the investment adviser to the Nokomis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 141.00 Td (Accounts and may dir) Tj ET Q q 0 0 0 rg BT 167.06 141.00 Td (ect the voting and disposition of the shar) Tj ET Q q 0 0 0 rg BT 329.74 141.00 Td (es held by the Nokomis ) Tj ET Q q 0 0 0 rg BT 424.26 141.00 Td (Accounts. ) Tj ET Q q 0 0 0 rg BT 465.73 141.00 Td (As the principal of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 129.00 Td (Nokomis Capital, Br) Tj ET Q q 0 0 0 rg BT 162.08 129.00 Td (ett Hendrickson holds voting and investment power with r) Tj ET Q q 0 0 0 rg BT 393.35 129.00 Td (espect to all securities beneficially owned ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 117.00 Td (by the Nokomis ) Tj ET Q q 0 0 0 rg BT 143.92 117.00 Td (Accounts. The addr) Tj ET Q q 0 0 0 rg BT 221.60 117.00 Td (ess of Nokomis Capital is 2305 Cedar Springs Rd., Suite 420, Dallas, TX 75201.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 105.00 Td (\(3\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 105.00 Td (Based on a Schedule 13G/A) Tj ET Q q 0 0 0 rg BT 191.41 105.00 Td ( filed with the SEC on February 13, 2019. Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.05 105.00 Td (9,214,784 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 440.55 105.00 Td (shar) Tj ET Q q 0 0 0 rg BT 457.96 105.00 Td (es held by ) Tj ET Q q 0 0 0 rg BT 500.27 105.00 Td (A) Tj ET Q q 0 0 0 rg BT 506.00 105.00 Td (WM ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 93.00 Td (Investment Company) Tj ET Q q 0 0 0 rg BT 163.54 93.00 Td (, Inc., a Delawar) Tj ET Q q 0 0 0 rg BT 230.94 93.00 Td (e corporation \(A) Tj ET Q q 0 0 0 rg BT 302.79 93.00 Td (WM\), that is the investment adviser to Special Situations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 81.00 Td (Cayman Fund, L.P) Tj ET Q q 0 0 0 rg BT 154.77 81.00 Td (., a Cayman Island limited partnership \("CA) Tj ET Q q 0 0 0 rg BT 332.30 81.00 Td (YMAN"\), Special Situations Fund III QP) Tj ET Q q 0 0 0 rg BT 494.08 81.00 Td (, L.P) Tj ET Q q 0 0 0 rg BT 511.96 81.00 Td (., a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 69.00 Td (Delawar) Tj ET Q q 0 0 0 rg BT 114.58 69.00 Td (e limited partnership \("SSFQP"\) Special Situations Private Equity Fund, L.P) Tj ET Q q 0 0 0 rg BT 421.92 69.00 Td (., a Delawar) Tj ET Q q 0 0 0 rg BT 471.55 69.00 Td (e limited partnership ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 57.00 Td (\("SSPE"\), Special Situations T) Tj ET Q q 0 0 0 rg BT 201.31 57.00 Td (echnology Fund, L.P) Tj ET Q q 0 0 0 rg BT 283.89 57.00 Td (., a Delawar) Tj ET Q q 0 0 0 rg BT 333.52 57.00 Td (e limited partnership \("TECH"\) and Special Situations ) Tj ET Q endstream endobj 165 0 obj <> endobj 166 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (79) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 722.10 Td (T) Tj ET Q q 0 0 0 rg BT 84.59 722.10 Td (echnology Fund II, L.P) Tj ET Q q 0 0 0 rg BT 176.34 722.10 Td (., a Delawar) Tj ET Q q 0 0 0 rg BT 225.97 722.10 Td (e limited partnership \("TECH II"\), \(CA) Tj ET Q q 0 0 0 rg BT 382.68 722.10 Td (YMAN, SSFQP) Tj ET Q q 0 0 0 rg BT 442.50 722.10 Td (, SSPE, TECH and TECH II, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 710.10 Td (will her) Tj ET Q q 0 0 0 rg BT 110.41 710.10 Td (eafter be r) Tj ET Q q 0 0 0 rg BT 151.70 710.10 Td (eferr) Tj ET Q q 0 0 0 rg BT 170.77 710.10 Td (ed to as the Funds\). ) Tj ET Q q 0 0 0 rg BT 263.36 710.10 Td (As the investment adviser to the Funds, ) Tj ET Q q 0 0 0 rg BT 422.60 710.10 Td (A) Tj ET Q q 0 0 0 rg BT 428.33 710.10 Td (WM holds sole voting and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 698.10 Td (investment power over 821,877 held by CA) Tj ET Q q 0 0 0 rg BT 251.86 698.10 Td (YMAN, 2,419,276 shar) Tj ET Q q 0 0 0 rg BT 343.45 698.10 Td (es held by SSFQP) Tj ET Q q 0 0 0 rg BT 414.08 698.10 Td (, 943,621 shar) Tj ET Q q 0 0 0 rg BT 471.49 698.10 Td (es held by SSPE, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 686.10 Td (743,566 Shar) Tj ET Q q 0 0 0 rg BT 133.47 686.10 Td (es held by TECH and 4,286,444 Shar) Tj ET Q q 0 0 0 rg BT 282.54 686.10 Td (es held by TECH II. ) Tj ET Q q 0 0 0 rg BT 372.06 686.10 Td (Austin W) Tj ET Q q 0 0 0 rg BT 407.53 686.10 Td (. Marxe \("Marxe"\), David M. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 674.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 90.69 674.10 Td (eenhouse \("Gr) Tj ET Q q 0 0 0 rg BT 148.67 674.10 Td (eenhouse"\) and ) Tj ET Q q 0 0 0 rg BT 213.23 674.10 Td (Adam C. Stettner \("Stettner"\) ar) Tj ET Q q 0 0 0 rg BT 341.51 674.10 Td (e members of: SSCayman, L.L.C., a Delawar) Tj ET Q q 0 0 0 rg BT 521.41 674.10 Td (e limited ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 662.10 Td (liability company \("SSCA) Tj ET Q q 0 0 0 rg BT 181.91 662.10 Td (Y"\), the general partner of CA) Tj ET Q q 0 0 0 rg BT 302.77 662.10 Td (YMAN; MGP) Tj ET Q q 0 0 0 rg BT 356.75 662.10 Td ( ) Tj ET Q q 0 0 0 rg BT 359.07 662.10 Td (Advisers Limited Partnership, a Delawar) Tj ET Q q 0 0 0 rg BT 523.97 662.10 Td (e limited ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 650.10 Td (partnership \("MGP"\), the general partner of SSFQP; MG ) Tj ET Q q 0 0 0 rg BT 314.52 650.10 Td (Advisers, L.L.C., a New Y) Tj ET Q q 0 0 0 rg BT 416.67 650.10 Td (ork limited liability company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 638.10 Td (\("MG"\), the general partner of SSPE; and SST) Tj ET Q q 0 0 0 rg BT 267.03 638.10 Td ( ) Tj ET Q q 0 0 0 rg BT 269.35 638.10 Td (Advisers, L.L.C., a Delawar) Tj ET Q q 0 0 0 rg BT 381.21 638.10 Td (e limited liability company \("SST) Tj ET Q q 0 0 0 rg BT 512.98 638.10 Td (A"\), the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 626.10 Td (general partner of TECH and TECH II. Marxe, Gr) Tj ET Q q 0 0 0 rg BT 282.90 626.10 Td (eenhouse and Stettner ar) Tj ET Q q 0 0 0 rg BT 382.23 626.10 Td (e also contr) Tj ET Q q 0 0 0 rg BT 429.08 626.10 Td (olling principals of ) Tj ET Q q 0 0 0 rg BT 508.07 626.10 Td (A) Tj ET Q q 0 0 0 rg BT 513.80 626.10 Td (WM. The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 614.10 Td (principal business addr) Tj ET Q q 0 0 0 rg BT 174.03 614.10 Td (ess for ) Tj ET Q q 0 0 0 rg BT 202.74 614.10 Td (A) Tj ET Q q 0 0 0 rg BT 208.48 614.10 Td (WM is c/o Special Situations Funds, 527 Madison ) Tj ET Q q 0 0 0 rg BT 410.78 614.10 Td (A) Tj ET Q q 0 0 0 rg BT 416.34 614.10 Td (venue, Suite 2600, New Y) Tj ET Q q 0 0 0 rg BT 517.07 614.10 Td (ork, NY ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 602.10 Td (10022. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 590.10 Td (\(4\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 590.10 Td (Based on a Schedule 13G/A) Tj ET Q q 0 0 0 rg BT 191.41 590.10 Td ( filed with the SEC on February 13, 2019. Includes 6,61) Tj ET Q q 0 0 0 rg BT 414.81 590.10 Td (1,096 shar) Tj ET Q q 0 0 0 rg BT 457.22 590.10 Td (es held by Divisar ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 578.10 Td (Partners QP) Tj ET Q q 0 0 0 rg BT 129.49 578.10 Td (, LP) Tj ET Q q 0 0 0 rg BT 145.98 578.10 Td ( and 559,496 shar) Tj ET Q q 0 0 0 rg BT 218.39 578.10 Td (es held by Divisar Partners, L.P) Tj ET Q q 0 0 0 rg BT 346.26 578.10 Td (.. Divisar Capital Management LLC is an investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 566.10 Td (advisor that is r) Tj ET Q q 0 0 0 rg BT 143.20 566.10 Td (egister) Tj ET Q q 0 0 0 rg BT 170.04 566.10 Td (ed under the Investment ) Tj ET Q q 0 0 0 rg BT 268.16 566.10 Td (Advisors ) Tj ET Q q 0 0 0 rg BT 305.48 566.10 Td (Act of 1940. Divisar Capital Management LLC, which serves as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 554.10 Td (the general partner and investment manager to each of Divisar Partners QP) Tj ET Q q 0 0 0 rg BT 385.00 554.10 Td (, L.P) Tj ET Q q 0 0 0 rg BT 402.88 554.10 Td (. and Divisar Partners, L.P) Tj ET Q q 0 0 0 rg BT 510.77 554.10 Td (., ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 542.10 Td (\(collectively "the Funds"\), may be deemed to be the beneficial owner of all shar) Tj ET Q q 0 0 0 rg BT 398.99 542.10 Td (es held by the Funds. Mr) Tj ET Q q 0 0 0 rg BT 497.31 542.10 Td (. Steven ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 530.10 Td (Baughman, as Managing Member of Divisar Capital Management LLC, with the power to exer) Tj ET Q q 0 0 0 rg BT 460.94 530.10 Td (cise investment and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 518.10 Td (voting discr) Tj ET Q q 0 0 0 rg BT 127.07 518.10 Td (etion, may be deemed to be the beneficial owner of all shar) Tj ET Q q 0 0 0 rg BT 363.31 518.10 Td (es held by the Funds. Pursuant to Rule 13d-4 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 506.10 Td (under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 204.17 506.10 Td (Act of 1934, as amended, each of the Funds expr) Tj ET Q q 0 0 0 rg BT 399.04 506.10 Td (essly disclaims beneficial ownership ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 494.10 Td (over any of the securities r) Tj ET Q q 0 0 0 rg BT 186.50 494.10 Td (eported in this statement, and the filing of this statement shall not be construed as an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 482.10 Td (admission that either of the Funds ar) Tj ET Q q 0 0 0 rg BT 227.91 482.10 Td (e the beneficial owner of any of the securities r) Tj ET Q q 0 0 0 rg BT 415.55 482.10 Td (eported her) Tj ET Q q 0 0 0 rg BT 461.56 482.10 Td (ein.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 470.10 Td (\(5\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 470.10 Td (Includes 1,374,458 shar) Tj ET Q q 0 0 0 rg BT 176.24 470.10 Td (es subject to options that ar) Tj ET Q q 0 0 0 rg BT 286.70 470.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 310.47 470.10 Td (cisable and r) Tj ET Q q 0 0 0 rg BT 362.32 470.10 Td (estricted shar) Tj ET Q q 0 0 0 rg BT 416.66 470.10 Td (es that vest within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 551.56 470.10 Td (ch ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 458.10 Td (29, 2019. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 446.10 Td (\(6\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 446.10 Td (Includes 302,617 shar) Tj ET Q q 0 0 0 rg BT 168.74 446.10 Td (es subject to options that ar) Tj ET Q q 0 0 0 rg BT 279.20 446.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 302.97 446.10 Td (cisable and r) Tj ET Q q 0 0 0 rg BT 354.82 446.10 Td (estricted shar) Tj ET Q q 0 0 0 rg BT 409.16 446.10 Td (es that vest within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 544.06 446.10 Td (ch ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 434.10 Td (29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 422.10 Td (\(7\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 422.10 Td (Includes 91,200 shar) Tj ET Q q 0 0 0 rg BT 163.74 422.10 Td (es held by Mr) Tj ET Q q 0 0 0 rg BT 217.34 422.10 Td (.Debray as custodian for his sons. Includes 344,417 shar) Tj ET Q q 0 0 0 rg BT 447.52 422.10 Td (es subject to options that ar) Tj ET Q q 0 0 0 rg BT 557.98 422.10 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 410.10 Td (exer) Tj ET Q q 0 0 0 rg BT 96.79 410.10 Td (cisable and r) Tj ET Q q 0 0 0 rg BT 148.63 410.10 Td (estricted shar) Tj ET Q q 0 0 0 rg BT 202.98 410.10 Td (es that vest within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 337.87 410.10 Td (ch 29, 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.95 398.10 Td (\(8\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 398.10 Td (Includes 65,833 shar) Tj ET Q q 0 0 0 rg BT 163.74 398.10 Td (es subject to options that ar) Tj ET Q q 0 0 0 rg BT 274.20 398.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 297.97 398.10 Td (cisable and r) Tj ET Q q 0 0 0 rg BT 349.82 398.10 Td (estricted shar) Tj ET Q q 0 0 0 rg BT 404.16 398.10 Td (es that vest within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 539.06 398.10 Td (ch ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 386.10 Td (29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 374.10 Td (\(9\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 374.10 Td (Includes 58,333 shar) Tj ET Q q 0 0 0 rg BT 163.74 374.10 Td (es subject to warrants that ar) Tj ET Q q 0 0 0 rg BT 280.87 374.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 304.65 374.10 Td (cisable within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 423.44 374.10 Td (ch 29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 362.10 Td (\(10\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 362.10 Td (Includes 36,667 shar) Tj ET Q q 0 0 0 rg BT 163.74 362.10 Td (es subject to warrants that ar) Tj ET Q q 0 0 0 rg BT 280.87 362.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 304.65 362.10 Td (cisable within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 423.44 362.10 Td (ch 29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 350.10 Td (\(1) Tj ET Q q 0 0 0 rg BT 69.54 350.10 Td (1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 350.10 Td (Includes 80,333 shar) Tj ET Q q 0 0 0 rg BT 163.74 350.10 Td (es subject to warrants that ar) Tj ET Q q 0 0 0 rg BT 280.87 350.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 304.65 350.10 Td (cisable within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 423.44 350.10 Td (ch 29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 338.10 Td (\(12\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 338.10 Td (Includes 80,333 shar) Tj ET Q q 0 0 0 rg BT 163.74 338.10 Td (es subject to warrants that ar) Tj ET Q q 0 0 0 rg BT 280.87 338.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 304.65 338.10 Td (cisable within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 423.44 338.10 Td (ch 29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 326.10 Td (\(13\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 326.10 Td (Includes 80,333 shar) Tj ET Q q 0 0 0 rg BT 163.74 326.10 Td (es subject to warrants that ar) Tj ET Q q 0 0 0 rg BT 280.87 326.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 304.65 326.10 Td (cisable within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 423.44 326.10 Td (ch 29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 314.10 Td (\(14\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 314.10 Td (Includes 80,333 shar) Tj ET Q q 0 0 0 rg BT 163.74 314.10 Td (es subject to warrants that ar) Tj ET Q q 0 0 0 rg BT 280.87 314.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 304.65 314.10 Td (cisable within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 423.44 314.10 Td (ch 29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 302.10 Td (\(15\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 302.10 Td (Includes 127,292 shar) Tj ET Q q 0 0 0 rg BT 168.74 302.10 Td (es subject to options that ar) Tj ET Q q 0 0 0 rg BT 279.20 302.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 302.97 302.10 Td (cisable and r) Tj ET Q q 0 0 0 rg BT 354.82 302.10 Td (estricted shar) Tj ET Q q 0 0 0 rg BT 409.16 302.10 Td (es that vest within 60 days of Mar) Tj ET Q q 0 0 0 rg BT 544.06 302.10 Td (ch ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 290.10 Td (29, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.95 278.10 Td (\(16\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 278.10 Td (Includes 2,630,949 shar) Tj ET Q q 0 0 0 rg BT 176.24 278.10 Td (es subject to options and warrants that ar) Tj ET Q q 0 0 0 rg BT 342.82 278.10 Td (e exer) Tj ET Q q 0 0 0 rg BT 366.60 278.10 Td (cisable and r) Tj ET Q q 0 0 0 rg BT 418.44 278.10 Td (estricted shar) Tj ET Q q 0 0 0 rg BT 472.79 278.10 Td (es that vest within 60 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.95 266.10 Td (days of Mar) Tj ET Q q 0 0 0 rg BT 127.91 266.10 Td (ch 29, 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 245.10 Td (None of our principal shareholders have voting rights dif) Tj ET Q q 0 0 0 rg BT 301.04 245.10 Td (ferent than our other shareholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 224.10 Td (At March 29, 2019, there were 94,242,240 of our ) Tj ET Q q 0 0 0 rg BT 272.62 224.10 Td (ADSs outstanding, representing 94,723,505 our ordinary shares or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (99.8% of our outstanding ordinary shares. ) Tj ET Q q 0 0 0 rg BT 219.47 212.10 Td (At such date, there were 222 holders of record registered with the Bank of New ) Tj ET Q q 0 0 0 rg BT 539.54 212.10 Td (Y) Tj ET Q q 0 0 0 rg BT 545.76 212.10 Td (ork ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (Mellon, depositary of our ) Tj ET Q q 0 0 0 rg BT 153.65 200.10 Td (ADSs.) Tj ET Q BT /F1 14.00 Tf ET q 0 0 0 rg BT 49.50 183.30 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 163.53 Td (B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 87.50 163.53 Td (Related Party T) Tj ET Q q 0 0 0 rg BT 151.56 163.53 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 142.30 Td (Since January1, 2018, we have engaged in the following transactions with our directors and executive of) Tj ET Q q 0 0 0 rg BT 494.31 142.30 Td (ficers, holders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.30 Td (more than 5% of our voting securities and af) Tj ET Q q 0 0 0 rg BT 227.60 130.30 Td (filiates of our directors, executive of) Tj ET Q q 0 0 0 rg BT 372.92 130.30 Td (ficers and 5% shareholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 109.30 Td (Under French law) Tj ET Q q 0 0 0 rg BT 145.05 109.30 Td (, agreements entered into directly or indirectly between us and either one of our of) Tj ET Q q 0 0 0 rg BT 473.91 109.30 Td (ficers or one of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.30 Td (shareholders owning more than 10% of our shares, or any company controlling one of our shareholders owning more than 10% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.30 Td (of our shares, are subject to the prior approval of the board of directors and must be ratified by our ordinary shareholders) Tj ET Q q 0 0 0 rg BT 535.26 85.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.30 Td (general meetings on the basis of a specific report issued by our statutory auditors on such agreements. Our managing director ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.30 Td (agreement with Geor) Tj ET Q q 0 0 0 rg BT 133.73 61.30 Td (ges Karam described below has been submitted to the prior approval of the board of directors and have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.30 Td (been or will be submitted to our shareholders at each annual shareholders) Tj ET Q q 0 0 0 rg BT 345.60 49.30 Td ( general meeting.) Tj ET Q endstream endobj 167 0 obj <> endobj 168 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (80) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Agr) Tj ET Q q 0 0 0 rg BT 65.98 722.25 Td (eements with Major) Tj ET Q q 0 0 0 rg BT 151.33 722.25 Td ( Shar) Tj ET Q q 0 0 0 rg BT 174.21 722.25 Td (eholders) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (Bpifrance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 688.25 Td (In October 2014, Bpifrance, the financial agency of the French government, provided funding to the Company in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 676.25 Td (context of a long-term research project, estimated to be completed over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.10 676.25 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.10 676.25 Td (-year period. In December 2016, Bpifrance and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 664.25 Td (Company signed an amendment to extend the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.72 664.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.71 664.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.48 664.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.14 664.25 Td ( years. ) Tj ET Q q 0 0 0 rg BT 362.56 664.25 Td (The total funding remains unchanged and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 652.25 Td (amounts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.17 652.25 Td (6,967,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.17 652.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.00 652.25 Td ($8,988,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.00 652.25 Td (\) comprising a portion in the form of a grant \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.72 652.25 Td (2,957,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.72 652.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.05 652.25 Td ($3,815,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.05 652.25 Td (\) and a portion in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.25 Td (form of a for) Tj ET Q q 0 0 0 rg BT 100.69 640.25 Td (givable loan \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.67 640.25 Td (4,010,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.67 640.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 640.25 Td ($5,173,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.00 640.25 Td (\). ) Tj ET Q q 0 0 0 rg BT 267.15 640.25 Td (The funding will be paid in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.79 640.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.78 640.25 Td ( installments: the first tranche at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.25 Td (contract signature date, the second and the third installments after milestones defined in the contract. ) Tj ET Q q 0 0 0 rg BT 454.46 628.25 Td (The for) Tj ET Q q 0 0 0 rg BT 483.99 628.25 Td (givable loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.25 Td (advance will be repaid, except if the project is a commercial failure, from March 31, 2019 to September 30, 2022 and bears ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (interest at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.09 604.25 Td (1.53%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.92 604.25 Td ( fixed contractual rate. In the event of commercial success, defined as sales of the product developed under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.25 Td (this program in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.53 592.25 Td (350 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.92 592.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.75 592.25 Td ($425 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.15 592.25 Td (\) during a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.40 592.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.38 592.25 Td ( years, then the Company shall pay a bonus to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (Bpifrance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.25 580.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.58 580.25 Td ( of annual revenues generated by products issued from the project.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 559.25 Td (In September 2015, the Company received two loans from the financial agency of the French government for a total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.25 Td (amount of 2 million \($2.2 million\). One loan of 1 million bears interest at 5.24% per year) Tj ET Q q 0 0 0 rg BT 416.52 547.25 Td (, paid quarterly; the second loan of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (1 million is interest-free. ) Tj ET Q q 0 0 0 rg BT 155.68 535.25 Td (The interest-free loan has been revalued using the 5.24% interest rate payable on the other loan. Both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (loans have seven-year terms with the principal being amortized on a quarterly basis beginning in September 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 506.25 Td (In January 2016, Bpifrance provided funding to the Company for a new long-term research project, estimated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (completed over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.86 494.25 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.86 494.25 Td (-month period. ) Tj ET Q q 0 0 0 rg BT 192.61 494.25 Td (The total of the funding amounts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.75 494.25 Td (2,095,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.75 494.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.58 494.25 Td ($2,288,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.58 494.25 Td (\) comprising a portion in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (form of a grant \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.58 482.25 Td (668,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.08 482.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.41 482.25 Td ($729,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.91 482.25 Td (\) and a portion in the form of a for) Tj ET Q q 0 0 0 rg BT 341.19 482.25 Td (givable loan \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.17 482.25 Td (1,427,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.17 482.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 482.25 Td (1,558,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 482.25 Td (\). ) Tj ET Q q 0 0 0 rg BT 502.65 482.25 Td (The funding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (will be paid in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.49 470.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.15 470.25 Td ( installments: the first tranche at the contract signature date, the second, the third and the fourth installments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (after milestones defined in the contract. ) Tj ET Q q 0 0 0 rg BT 210.09 458.25 Td (The for) Tj ET Q q 0 0 0 rg BT 239.62 458.25 Td (givable loan advance will be repaid, except if the project is a commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (failure, from July 1, 2020 to July 1, 2024 and bears interests at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.17 446.25 Td (1.17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.00 446.25 Td ( fixed contractual rate. In the event of commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (success, defined as sales of the product developed under this program in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.23 434.25 Td (3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.62 434.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.45 434.25 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.35 434.25 Td (\), then the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (shall pay for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.99 422.25 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.99 422.25 Td ( consecutive years after the date of the termination of the refund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.76 422.25 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.09 422.25 Td ( of the revenues generated by the sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (the products or services \(up to a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.62 410.25 Td (600,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.12 410.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.95 410.25 Td ($655,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.45 410.25 Td (, over a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.54 410.25 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.54 410.25 Td ( years\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 389.25 Td (On January 18, 2018, Bpifrance Participations purchased 3,125,000 ) Tj ET Q q 0 0 0 rg BT 346.22 389.25 Td (ADSs, each ) Tj ET Q q 0 0 0 rg BT 395.38 389.25 Td (ADS representing one ordinary share, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (a price of $1.60 per ) Tj ET Q q 0 0 0 rg BT 129.47 377.25 Td (ADS in connection with our public of) Tj ET Q q 0 0 0 rg BT 280.38 377.25 Td (fering in which we issued a total of 14,375,000 ordinary shares.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 356.25 Td (Nokomis Capital, L.L.C.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 335.25 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 335.25 Td (April 2015, we completed the sale of a $12 million convertible note to an af) Tj ET Q q 0 0 0 rg BT 387.12 335.25 Td (filiate of Nokomis Capital, L.L.C. in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (private placement transaction. ) Tj ET Q q 0 0 0 rg BT 172.04 323.25 Td (The convertible note is an unsecured obligation of the Company) Tj ET Q q 0 0 0 rg BT 428.27 323.25 Td (, was to mature in ) Tj ET Q q 0 0 0 rg BT 501.59 323.25 Td (April 2018 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.25 Td (bears interest at a rate of 7% per year) Tj ET Q q 0 0 0 rg BT 197.91 311.25 Td (, paid in kind annually on the anniversary of the issuance of the note. ) Tj ET Q q 0 0 0 rg BT 475.98 311.25 Td (The note is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.25 Td (convertible, at the holder) Tj ET Q q 0 0 0 rg BT 149.83 299.25 Td () Tj ET Q q 0 0 0 rg BT 152.61 299.25 Td (s option, into the company) Tj ET Q q 0 0 0 rg BT 261.77 299.25 Td (s ) Tj ET Q q 0 0 0 rg BT 267.61 299.25 Td (ADSs at a conversion rate of $1.85 per ) Tj ET Q q 0 0 0 rg BT 425.07 299.25 Td (ADS. On ) Tj ET Q q 0 0 0 rg BT 464.24 299.25 Td (April 27, 2016, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.25 Td (completed the sale of a $6.0 million convertible note to an af) Tj ET Q q 0 0 0 rg BT 292.58 287.25 Td (filiate of Nokomis Capital, L.L.C. in a private placement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.25 Td (transaction. ) Tj ET Q q 0 0 0 rg BT 98.19 275.25 Td (The convertible note is an unsecured obligation of the Company) Tj ET Q q 0 0 0 rg BT 354.42 275.25 Td (, was to mature in ) Tj ET Q q 0 0 0 rg BT 427.74 275.25 Td (April 2019 and bear interest at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.25 Td (rate of 7% per year) Tj ET Q q 0 0 0 rg BT 125.72 263.25 Td (, paid in kind annually on the anniversary of the issuance of the notes. ) Tj ET Q q 0 0 0 rg BT 407.69 263.25 Td (The notes are convertible, at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.25 Td (holder) Tj ET Q q 0 0 0 rg BT 75.42 251.25 Td () Tj ET Q q 0 0 0 rg BT 78.20 251.25 Td (s option, into the Company) Tj ET Q q 0 0 0 rg BT 189.58 251.25 Td (s ) Tj ET Q q 0 0 0 rg BT 195.42 251.25 Td (ADSs at a conversion price of $2.7126 per ) Tj ET Q q 0 0 0 rg BT 367.88 251.25 Td (ADS. In 2017, we amended the terms of both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.25 Td (notes to extend the maturity dates each by one year and to change the conversion price of the notes issued in 2016 from $2.7126 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (per ) Tj ET Q q 0 0 0 rg BT 64.22 227.25 Td (ADS to $2.25 per ) Tj ET Q q 0 0 0 rg BT 136.72 227.25 Td (ADS. ) Tj ET Q q 0 0 0 rg BT 163.67 227.25 Td (As part of the agreement, a representative of Nokomis Capital, L.L.C. became a board observer in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (November 2017 and became a board member after approval of shareholders at the June 2018 annual meeting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 194.25 Td (On January 18, 2018, Nokomis Capital, L.L.C. purchased 3,125,000 ) Tj ET Q q 0 0 0 rg BT 348.74 194.25 Td (ADSs, each ) Tj ET Q q 0 0 0 rg BT 397.90 194.25 Td (ADS representing one ordinary share, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (a price of $1.60 per ) Tj ET Q q 0 0 0 rg BT 129.47 182.25 Td (ADS in connection with our public of) Tj ET Q q 0 0 0 rg BT 280.38 182.25 Td (fering in which we issued a total of 14,375,000 ordinary shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 161.25 Td (On September 27, 2018, the Company amended the terms of the convertible note issued to Nokomis Capital, L.L.C. in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (2015 to extend by two years the maturity of the note to ) Tj ET Q q 0 0 0 rg BT 271.12 149.25 Td (April 14, 2021. In addition, the conversion price was reduced from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td ($1.85 to $1.70. Lastly) Tj ET Q q 0 0 0 rg BT 136.62 137.25 Td (, Nokomis Capital, L.L.C. agreed to subordinate this note to new debt then in negotiation by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (Company) Tj ET Q q 0 0 0 rg BT 87.74 125.25 Td (. ) Tj ET Q q 0 0 0 rg BT 94.69 125.25 Td (Also, on September 27, 2018, the Company amended the terms of the convertible note issued to Nokomis Capital, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (L.L.C. in 2016 to subordinate the note to the new debt then in negotiation by the Company) Tj ET Q q 0 0 0 rg BT 411.84 113.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 92.25 Td (On September 27, 2018, the Company issued and sold a convertible note in the principal amount of $4.5 million to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.25 Td (Nokomis Capital, L.L.C. ) Tj ET Q q 0 0 0 rg BT 151.26 80.25 Td (This note shall be convertible into the Company) Tj ET Q q 0 0 0 rg BT 346.50 80.25 Td (s ) Tj ET Q q 0 0 0 rg BT 352.34 80.25 Td (ADSs at a conversion price of $1.70 per ) Tj ET Q q 0 0 0 rg BT 514.80 80.25 Td (ADS and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.25 Td (otherwise has the same terms as the convertible note issued in ) Tj ET Q q 0 0 0 rg BT 299.16 68.25 Td (April 2015, as amended. It is an unsecured obligation of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 56.25 Td (Company) Tj ET Q q 0 0 0 rg BT 87.74 56.25 Td (, will mature on ) Tj ET Q q 0 0 0 rg BT 153.01 56.25 Td (April 14, 2021 and is not redeemable prior to maturity at the option of the Company) Tj ET Q q 0 0 0 rg BT 488.95 56.25 Td (. ) Tj ET Q endstream endobj 169 0 obj <> endobj 170 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (Also, on September 27, 2018, the Company issued to Nokomis Capital, L.L.C., for a total subscription price of $1.00, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (warrants to acquire 1,800,000 ) Tj ET Q q 0 0 0 rg BT 170.58 710.10 Td (ADSs at an exercise price of $1.70 per ) Tj ET Q q 0 0 0 rg BT 326.92 710.10 Td (ADS. Such warrants are exercisable at any time and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (expire ) Tj ET Q q 0 0 0 rg BT 76.43 698.10 Td (April 14, 2021. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 677.10 Td (On October 26, 2018, the Company further amended the convertible notes with Nokomis Capital, L.L.C. issued in 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (2016 and 2018 to clarify the terms of the subordination of these convertible notes to the Company) Tj ET Q q 0 0 0 rg BT 444.41 665.10 Td (s new bondholder) Tj ET Q q 0 0 0 rg BT 514.96 665.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 644.10 Td (On ) Tj ET Q q 0 0 0 rg BT 87.67 644.10 Td (April 30, 2019, Nokomis Capital, L.L.C. issued a firm commitment to purchase a new convertible note for $3 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (converting at $1.21 per ) Tj ET Q q 0 0 0 rg BT 144.20 632.10 Td (ADS, on substantially similar terms as their convertible note issued in ) Tj ET Q q 0 0 0 rg BT 425.82 632.10 Td (April 2015 with a maturity in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (April 2021. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 65.98 594.10 Td (eements with Executive Officers and Dir) Tj ET Q q 0 0 0 rg BT 238.26 594.10 Td (ectors) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 577.10 Td (Employment ) Tj ET Q q 0 0 0 rg BT 103.85 577.10 Td (Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 560.10 Td (e have entered into a managing director agreement with Geor) Tj ET Q q 0 0 0 rg BT 327.13 560.10 Td (ges Karam, our chairman and chief executive of) Tj ET Q q 0 0 0 rg BT 519.08 560.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 537.00 560.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (which contains provisions regarding salary) Tj ET Q q 0 0 0 rg BT 220.48 548.10 Td (, severance payment and benefits. If Dr) Tj ET Q q 0 0 0 rg BT 377.08 548.10 Td (.Karam is terminated for any reason, he is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (entitled to a lump sum severance payment equal to one year of base salary and bonus, plus accelerated vesting of his founders' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (warrants, stock options and restricted share awards. In accordance with French law) Tj ET Q q 0 0 0 rg BT 380.67 524.10 Td (, our chief executive of) Tj ET Q q 0 0 0 rg BT 472.95 524.10 Td (ficer \(directeur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (gnral or managing director\) cannot be an employee in connection with the performance of his duties in such capacity) Tj ET Q q 0 0 0 rg BT 538.66 512.10 Td (. ) Tj ET Q q 0 0 0 rg BT 543.47 512.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (managing director agreement entered into with Dr) Tj ET Q q 0 0 0 rg BT 249.43 500.10 Td (.Karam does not constitute and does not contain the compulsory provisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (under French law to be construed as, an employment agreement. ) Tj ET Q q 0 0 0 rg BT 309.79 488.10 Td (Therefore, Dr) Tj ET Q q 0 0 0 rg BT 364.20 488.10 Td (.Karam does not benefit from the status of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (employee nor from any benefit that French laws and regulations grant to employees. ) Tj ET Q q 0 0 0 rg BT 389.22 476.10 Td (The managing director agreement only sets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (forth the terms and conditions, including compensation, under which Dr) Tj ET Q q 0 0 0 rg BT 337.50 464.10 Td (.Karam performs his duties as chief executive of) Tj ET Q q 0 0 0 rg BT 533.64 464.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 551.40 464.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 438.10 Td (Director Compensation and ) Tj ET Q q 0 0 0 rg BT 166.09 438.10 Td (Agreements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 421.10 Td (The non-employee members of our board of directors and directors who are permitted to receive remuneration by their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.10 Td (employers, receive compensation based on our director compensation policy) Tj ET Q q 0 0 0 rg BT 355.14 409.10 Td (. ) Tj ET Q q 0 0 0 rg BT 359.59 409.10 Td (A) Tj ET Q q 0 0 0 rg BT 366.26 409.10 Td ( description of the cash compensation and equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (awards that non-employee members of our board of directors will be entitled to receive is described under Item 6. B) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (CompensationCompensation of Executive Of) Tj ET Q q 0 0 0 rg BT 241.23 385.10 Td (ficers and Directors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (Other ) Tj ET Q q 0 0 0 rg BT 75.52 359.10 Td (Agreements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 342.10 Td (On ) Tj ET Q q 0 0 0 rg BT 87.67 342.10 Td (April 30, 2019, Dr) Tj ET Q q 0 0 0 rg BT 161.28 342.10 Td (. Karam issued a commitment to loan up to $700,000 to the Company) Tj ET Q q 0 0 0 rg BT 439.48 342.10 Td (, if the Company needs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (additional liquidity) Tj ET Q q 0 0 0 rg BT 125.23 330.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (Stock Options, Founders' ) Tj ET Q q 0 0 0 rg BT 160.45 304.10 Td (W) Tj ET Q q 0 0 0 rg BT 169.90 304.10 Td (arrants and ) Tj ET Q q 0 0 0 rg BT 222.50 304.10 Td (W) Tj ET Q q 0 0 0 rg BT 231.95 304.10 Td (arrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 287.10 Td (Since our inception, we have granted restricted shares, stock options, founders' warrants and warrants to purchase our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (shares to certain of our executive of) Tj ET Q q 0 0 0 rg BT 192.59 275.10 Td (ficers and to our non-employee directors and directors who are permitted by their employers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (to receive warrants. For more information about our option and warrant plans see Item 6. BCompensationEquity Plans.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 226.33 Td (C.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 226.33 Td (Interests of Experts and Counsel) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 204.10 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (Item8. Financial Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 158.33 Td (A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 158.33 Td (Consolidated Statements and Other Financial Information) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 Td (Consolidated Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 115.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 115.10 Td (e have appended our consolidated financial statements at the end of this annual report, starting at page F-1, as part of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td (this annual report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (Legal Pr) Tj ET Q q 0 0 0 rg BT 86.25 77.10 Td (oceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 60.10 Td (On ) Tj ET Q q 0 0 0 rg BT 87.67 60.10 Td (August 9, 2017, a putative securities class action captioned ) Tj ET Q q 0 0 0 rg BT 325.67 60.10 Td (Andrew Renner v) Tj ET Q q 0 0 0 rg BT 396.11 60.10 Td (. Sequans Communications S.A., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 48.10 Td (Geor) Tj ET Q q 0 0 0 rg BT 69.31 48.10 Td (ges Karam, and Deborah Choate \(Case 1:17-cv-04665\) was filed in the U.S. District Court for the Eastern District of New ) Tj ET Q endstream endobj 171 0 obj <> endobj 172 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (Y) Tj ET Q q 0 0 0 rg BT 55.72 722.10 Td (ork. ) Tj ET Q q 0 0 0 rg BT 73.87 722.10 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 120.62 722.10 Td (f alleges violations of Sections 10\(b\) and 20\(a\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 419.42 722.10 Td (Act of 1934 based on purported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (misrepresentations regarding Sequans) Tj ET Q q 0 0 0 rg BT 203.71 710.10 Td ( revenue recognition policy in the Company) Tj ET Q q 0 0 0 rg BT 382.56 710.10 Td (s Form 20-F annual reports filed on ) Tj ET Q q 0 0 0 rg BT 526.71 710.10 Td (April ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (29, 2016 and March 31, 2017. ) Tj ET Q q 0 0 0 rg BT 174.86 698.10 Td (The complaint seeks unspecified damages and costs and fees. On ) Tj ET Q q 0 0 0 rg BT 439.78 698.10 Td (August 10, 2017, an almost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (identical class action complaint captioned Kevin Shillito v) Tj ET Q q 0 0 0 rg BT 282.41 686.10 Td (. Sequans Communications S.A., Geor) Tj ET Q q 0 0 0 rg BT 436.66 686.10 Td (ges Karam, and Deborah ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (Choate \(Case 2:17-cv-04707\) was filed in the same court. On September 28, 2017, the Shillito action was consolidated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (Renner action. On October 10, 2017, candidates to be the lead plaintif) Tj ET Q q 0 0 0 rg BT 331.73 662.10 Td (f filed motions to appoint a lead plaintif) Tj ET Q q 0 0 0 rg BT 490.68 662.10 Td (f and lead ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.90 Td (counsel. On February 6, 2018, the) Tj ET Q BT /F5 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.12156862745098039 0.28627450980392155 0.49019607843137253 rg BT 185.58 648.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 188.07 648.90 Td (Court appointed the lead plaintif) Tj ET Q q 0 0 0 rg BT 317.86 648.90 Td (fs and lead counsel. Lead plaintif) Tj ET Q q 0 0 0 rg BT 452.90 648.90 Td (fs filed their Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.90 Td (Amended Complaint \(the CAC\) on ) Tj ET Q q 0 0 0 rg BT 200.86 636.90 Td (April 9, 2018, which did not significantly alter the allegations made in the earlier ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.90 Td (pleadings. On May 24, 2018, the Company) Tj ET Q q 0 0 0 rg BT 221.33 624.90 Td (, Mr) Tj ET Q q 0 0 0 rg BT 238.00 624.90 Td (. Karam and Ms. Choate filed a pre-motion letter requesting permission to file a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.90 Td (motion to dismiss the CAC, a request that was granted on ) Tj ET Q q 0 0 0 rg BT 281.70 612.90 Td (August 21, 2018. ) Tj ET Q q 0 0 0 rg BT 352.91 612.90 Td (The motion to dismiss was fully briefed and filed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 600.90 Td (\(along with lead plaintif) Tj ET Q q 0 0 0 rg BT 145.68 600.90 Td (fs) Tj ET Q q 0 0 0 rg BT 155.49 600.90 Td ( opposition briefing\) on November 30, 2018.On December 12, 2018, at the parties) Tj ET Q q 0 0 0 rg BT 489.39 600.90 Td ( request, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.90 Td (Court stayed the action pending a scheduled mediation. ) Tj ET Q q 0 0 0 rg BT 275.93 588.90 Td (The mediation occurred on February 7, 2019, but did not result in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.90 Td (resolution of the case. On February 12, 2019, the Court lifted the stay) Tj ET Q q 0 0 0 rg BT 326.84 576.90 Td (, and the parties await the Court) Tj ET Q q 0 0 0 rg BT 457.08 576.90 Td (s decision on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.90 Td (previously-filed motion to dismiss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 547.90 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 547.90 Td (e are not a party to any other material legal proceedings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 521.90 Td (Dividend Policy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 504.90 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 504.90 Td (e have never declared or paid any cash dividends on our ordinary shares. ) Tj ET Q q 0 0 0 rg BT 375.18 504.90 Td (W) Tj ET Q q 0 0 0 rg BT 383.82 504.90 Td (e do not anticipate paying any cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.90 Td (dividends on our ordinary shares in the foreseeable future and intend to retain all available funds and any future earnings for use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.90 Td (in the operation and expansion of our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 459.90 Td (Subject to the requirements of French law and our by-laws, dividends may only be distributed from our statutory retained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.90 Td (earnings. See Item 10. BMemorandum and ) Tj ET Q q 0 0 0 rg BT 237.79 447.90 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 282.22 447.90 Td (Association for further details on the limitations on our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.90 Td (declare and pay dividends. Dividend distributions, if any) Tj ET Q q 0 0 0 rg BT 275.75 435.90 Td (, will be made in euros and converted into U.S. dollars with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.90 Td (the ) Tj ET Q q 0 0 0 rg BT 63.67 423.90 Td (ADSs, as provided in the deposit agreement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 404.13 Td (B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 404.13 Td (Significant Changes) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 383.90 Td (No significant changes have occurred since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.54 383.90 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.12 383.90 Td (, except as otherwise disclosed in this annual report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 357.90 Td (Item9. ) Tj ET Q q 0 0 0 rg BT 81.81 357.90 Td (The Offer) Tj ET Q q 0 0 0 rg BT 124.11 357.90 Td ( and Listing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 338.13 Td (A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 338.13 Td (Listing Details) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 317.90 Td (Our ) Tj ET Q q 0 0 0 rg BT 91.00 317.90 Td (ADSs have been listed on the New ) Tj ET Q q 0 0 0 rg BT 232.54 317.90 Td (Y) Tj ET Q q 0 0 0 rg BT 238.76 317.90 Td (ork Stock Exchange under the symbol SQNS since ) Tj ET Q q 0 0 0 rg BT 453.17 317.90 Td (April15, 201) Tj ET Q q 0 0 0 rg BT 506.41 317.90 Td (1. Prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.90 Td (that date, there was no public trading market for ) Tj ET Q q 0 0 0 rg BT 243.88 305.90 Td (ADSs or our ordinary shares. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td () Tj ET Q BT /F1 14.00 Tf ET q 0 0 0 rg BT 51.75 289.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 269.33 Td (B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 269.33 Td (Plan of Distribution) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 249.10 Td (Not applicable.) Tj ET Q BT /F1 14.00 Tf ET q 0 0 0 rg BT 49.50 232.30 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 212.53 Td (C.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 212.53 Td (Markets) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 192.30 Td (Our ) Tj ET Q q 0 0 0 rg BT 91.00 192.30 Td (ADS have been listed on the New ) Tj ET Q q 0 0 0 rg BT 228.65 192.30 Td (Y) Tj ET Q q 0 0 0 rg BT 234.87 192.30 Td (ork Stock Exchange under the symbol SQNS since ) Tj ET Q q 0 0 0 rg BT 449.28 192.30 Td (April15, 201) Tj ET Q q 0 0 0 rg BT 502.51 192.30 Td (1.) Tj ET Q BT /F1 14.00 Tf ET q 0 0 0 rg BT 49.50 175.50 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 155.73 Td (D.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 155.73 Td (Selling Shareholders) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 135.50 Td (Not applicable.) Tj ET Q BT /F1 14.00 Tf ET q 0 0 0 rg BT 49.50 118.70 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 98.93 Td (E.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 98.93 Td (Dilution) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 78.70 Td (Not applicable.) Tj ET Q BT /F1 14.00 Tf ET q 0 0 0 rg BT 49.50 61.90 Td () Tj ET Q endstream endobj 173 0 obj <> endobj 174 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (83) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 719.23 Td (F) Tj ET Q q 0 0 0 rg BT 57.69 719.23 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 719.23 Td (Expenses of the Issue) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 699.00 Td (Not applicable.) Tj ET Q endstream endobj 175 0 obj <> endobj 176 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (84) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Item10. ) Tj ET Q q 0 0 0 rg BT 86.44 722.25 Td (Additional Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 688.48 Td (A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 688.48 Td (Share Capital) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 668.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 634.48 Td (B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 634.48 Td (Memorandum and ) Tj ET Q q 0 0 0 rg BT 161.59 634.48 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 206.22 634.48 Td (Association) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 613.25 Td (The information set forth in our Registration Statement on Form F-3 \(File No.333-221919\), filed with the SEC on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.25 Td (December 6, 2017, under the heading Description of Share Capital is incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 567.48 Td (C.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 567.48 Td (Material Contracts) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 547.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 547.25 Td (ith the exception of the material agreements described in Item 7.B Related Party ) Tj ET Q q 0 0 0 rg BT 410.02 547.25 Td (T) Tj ET Q q 0 0 0 rg BT 415.78 547.25 Td (ransactionsAgreements with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (Major Shareholders, all contracts concluded by the Company during the two years preceding the date of this annual report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (were entered into in the ordinary course of business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 489.48 Td (D.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 489.48 Td (Exchange Controls) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 469.25 Td (Under current French foreign exchange control regulations there are no limitations on the amount of cash payments that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.25 Td (we may remit to residents of foreign countries. Laws and regulations concerning foreign exchange controls do, however) Tj ET Q q 0 0 0 rg BT 529.50 457.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.25 Td (require that all payments or transfers of funds made by a French resident to a non-resident be handled by an accredited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.25 Td (intermediary) Tj ET Q q 0 0 0 rg BT 99.94 433.25 Td (. ) Tj ET Q q 0 0 0 rg BT 104.39 433.25 Td (All registered banks and substantially all credit institutions in France are accredited intermediaries.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 399.48 Td (E.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 399.48 Td (T) Tj ET Q q 0 0 0 rg BT 87.69 399.48 Td (axation) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 375.25 Td (Material United States Federal Income ) Tj ET Q q 0 0 0 rg BT 217.89 375.25 Td (T) Tj ET Q q 0 0 0 rg BT 223.64 375.25 Td (ax Consequences) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 354.25 Td (The following is a description of the material United States federal income tax consequences of the acquisition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.25 Td (ownership and disposition of the ) Tj ET Q q 0 0 0 rg BT 181.99 342.25 Td (ADSs. ) Tj ET Q q 0 0 0 rg BT 210.71 342.25 Td (This description addresses only the United States federal income tax consequences to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (holders that are purchasers of the ) Tj ET Q q 0 0 0 rg BT 183.89 330.25 Td (ADSs and hold such ) Tj ET Q q 0 0 0 rg BT 267.79 330.25 Td (ADSs as capital assets \(generally property held for investment\). ) Tj ET Q q 0 0 0 rg BT 525.31 330.25 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (description does not address tax considerations applicable to holders that may be subject to special tax rules, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 306.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 306.25 Td (financial institutions or insurance companies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 294.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 294.25 Td (real estate investment trusts, regulated investment companies or grantor trusts;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 282.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 282.25 Td (dealers or traders in securities or currencies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 270.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 270.25 Td (tax-exempt entities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 258.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 258.25 Td (certain former citizens or former long-term residents of the United States;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 246.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 246.25 Td (persons that received the ) Tj ET Q q 0 0 0 rg BT 186.17 246.25 Td (ADSs as compensation for the performance of services;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 234.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 234.25 Td (persons that will hold the ) Tj ET Q q 0 0 0 rg BT 188.15 234.25 Td (ADSs as part of a hedging or conversion transaction or as a position in a straddle for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 222.25 Td (United States federal income tax purposes;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 210.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 210.25 Td (holders that will hold the ) Tj ET Q q 0 0 0 rg BT 187.03 210.25 Td (ADSs through a partnership or other pass-through entity;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 198.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 198.25 Td (U.S. Holders, as defined below) Tj ET Q q 0 0 0 rg BT 209.15 198.25 Td (, whose functional currency is not the United States dollar; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 186.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 186.25 Td (holders that own, directly) Tj ET Q q 0 0 0 rg BT 186.65 186.25 Td (, indirectly or through attribution, 10.0% or more of the voting power or value of our shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 165.25 Td (Moreover) Tj ET Q q 0 0 0 rg BT 112.53 165.25 Td (, this description does not address the United States federal estate and gift or alternative minimum tax, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.25 Td (foreign, state or local tax, consequences of the acquisition, ownership and disposition of the ) Tj ET Q q 0 0 0 rg BT 418.58 153.25 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 132.25 Td (This description is based on the United States Internal Revenue Code of 1986, as amended, or the Code, existing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.25 Td (proposed and temporary United States ) Tj ET Q q 0 0 0 rg BT 205.12 120.25 Td (T) Tj ET Q q 0 0 0 rg BT 210.87 120.25 Td (reasury Regulations and judicial and administrative interpretations thereof, in each case ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (as in ef) Tj ET Q q 0 0 0 rg BT 78.20 108.25 Td (fect and available on the date hereof. ) Tj ET Q q 0 0 0 rg BT 227.57 108.25 Td (All of the foregoing is subject to change, which change could apply retroactively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.25 Td (and could af) Tj ET Q q 0 0 0 rg BT 98.74 96.25 Td (fect the tax consequences described below) Tj ET Q q 0 0 0 rg BT 267.74 96.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 75.25 Td (For purposes of this description, a U.S. Holder is a beneficial owner of the ) Tj ET Q q 0 0 0 rg BT 382.04 75.25 Td (ADSs that, for United States federal income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.25 Td (tax purposes, is:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 51.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 51.25 Td (a citizen or resident of the United States;) Tj ET Q endstream endobj 177 0 obj <> endobj 178 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 722.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 722.10 Td (a corporation or other entity treated as a corporation for United States federal income tax purposes, created or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 710.10 Td (or) Tj ET Q q 0 0 0 rg BT 93.25 710.10 Td (ganized in or under the laws of the United States or any state thereof, including the District of Columbia;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 698.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 698.10 Td (an estate the income of which is subject to United States federal income taxation regardless of its source; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 686.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 686.10 Td (a trust if such trust has validly elected to be treated as a United States person for United States federal income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 674.10 Td (purposes or if \(1\)a court within the United States is able to exercise primary supervision over its administration and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 662.10 Td (\(2\)one or more United States persons have the authority to control all of the substantial decisions of such trust.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 641.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 641.10 Td ( Non-U.S. Holder is a beneficial owner of the ) Tj ET Q q 0 0 0 rg BT 273.16 641.10 Td (ADSs that is neither a U.S. Holder nor a partnership, or other entity or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (arrangement treated as a partnership, for United States federal income tax purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 608.10 Td (If a partnership or any other entity or arrangement treated as a partnership for United States federal income tax purposes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (holds the ) Tj ET Q q 0 0 0 rg BT 87.83 596.10 Td (ADSs, the tax treatment of a partner in such partnership will depend on the status of the partner and the activities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (the partnership. Such a partner or partnership is encouraged to consult its tax advisor as to its tax consequences.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 73.50 563.10 Td (Y) Tj ET Q q 0 0 0 rg BT 79.61 563.10 Td (ou ar) Tj ET Q q 0 0 0 rg BT 101.93 563.10 Td (e encouraged to consult your) Tj ET Q q 0 0 0 rg BT 224.52 563.10 Td ( tax advisor) Tj ET Q q 0 0 0 rg BT 274.34 563.10 Td ( with r) Tj ET Q q 0 0 0 rg BT 302.49 563.10 Td (espect to United States federal, state, local and for) Tj ET Q q 0 0 0 rg BT 515.04 563.10 Td (eign tax ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (consequences of acquiring, owning and disposing of the ) Tj ET Q q 0 0 0 rg BT 287.05 551.10 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.10 Td (For United States federal income tax purposes, you will be treated as the owner of our ordinary shares represented by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (your ) Tj ET Q q 0 0 0 rg BT 69.78 518.10 Td (ADSs. Exchanges of ordinary shares for ) Tj ET Q q 0 0 0 rg BT 232.80 518.10 Td (ADSs, and ) Tj ET Q q 0 0 0 rg BT 278.08 518.10 Td (ADSs for ordinary shares, will not be subject to United States federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (income tax.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 480.10 Td (Distributions with Respect to ) Tj ET Q q 0 0 0 rg BT 170.26 480.10 Td (ADSs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 463.10 Td (If you are a U.S. Holder) Tj ET Q q 0 0 0 rg BT 169.46 463.10 Td (, for United States federal income tax purposes, the gross amount of any distribution made to you ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.10 Td (with respect to your ) Tj ET Q q 0 0 0 rg BT 131.15 451.10 Td (ADSs \(other than certain distributions, if any) Tj ET Q q 0 0 0 rg BT 310.75 451.10 Td (, of the ) Tj ET Q q 0 0 0 rg BT 340.74 451.10 Td (ADSs distributed pro rata to all our shareholders\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.10 Td (before reduction for any French taxes withheld therefrom, will be includible in your income as dividend income to the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (such distribution is paid out of our current or accumulated earnings and profits as determined under United States federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.10 Td (income tax principles. Subject to the discussion below under Passive Foreign Investment Company Considerations, non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.10 Td (corporate U.S. Holders may qualify for the lower rates of taxation with respect to dividends on ) Tj ET Q q 0 0 0 rg BT 430.51 403.10 Td (ADSs applicable to long-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 Td (capital gains \(i.e., gains from the sale of capital assets held for more than one year\), provided that certain conditions are met, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (including certain holding period requirements and the absence of certain risk reduction transactions. However) Tj ET Q q 0 0 0 rg BT 488.39 379.10 Td (, such dividends ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.10 Td (will not be eligible for the dividends received deduction generally allowed to corporate U.S. Holders. Subject to the discussion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.10 Td (below under Passive Foreign Investment Company Considerations, to the extent, if any) Tj ET Q q 0 0 0 rg BT 406.83 355.10 Td (, that the amount of any distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.10 Td (by us exceeds our current and accumulated earnings and profits as determined under United States federal income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.10 Td (principles, such excess amount will be treated first as a tax-free return of your adjusted tax basis in your ) Tj ET Q q 0 0 0 rg BT 467.15 331.10 Td (ADSs and thereafter as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.10 Td (capital gain. ) Tj ET Q q 0 0 0 rg BT 100.69 319.10 Td (W) Tj ET Q q 0 0 0 rg BT 109.32 319.10 Td (e do not expect to maintain calculations of our earnings and profits under United States federal income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (principles and, therefore, if you are a U.S. Holder you should expect that the entire amount of any distribution generally will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.10 Td (reported as dividend income to you.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.10 Td (Dividends, if any) Tj ET Q q 0 0 0 rg BT 142.01 274.10 Td (, paid to U.S. Holders in euros or currency other than the U.S. dollar \(Other Foreign Currency\) will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (includible in income in a U.S. dollar amount based on the prevailing spot market exchange rate in ef) Tj ET Q q 0 0 0 rg BT 450.59 262.10 Td (fect on the date of actual or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (constructive receipt, whether or not converted into U.S. dollars at that time. ) Tj ET Q q 0 0 0 rg BT 353.30 250.10 Td (Assuming dividends received in euros \(or Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (Foreign Currency\) are converted into U.S. dollars on the day they are received, the U.S. Holder will not be required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (recognize foreign currency gain or loss in respect of the dividend income. If, however) Tj ET Q q 0 0 0 rg BT 392.58 226.10 Td (, the payment is not converted at that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (time, a U.S. Holder will have a tax basis in euros \(or Other Foreign Currency\) equal to the U.S. dollar amount of the dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (included in income, which will be used to measure gain or loss from subsequent changes in exchange rates. ) Tj ET Q q 0 0 0 rg BT 481.05 202.10 Td (Any gain or loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (that a U.S. Holder recognizes on a subsequent conversion of euros \(or Other Foreign Currency\) into U.S. dollars \(or on other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (disposition\) will be U.S. source ordinary income or loss. U.S. Holders should consult their own tax advisors regarding the tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (consequences to them if the dividends are paid in euros \(or Other Foreign Currency\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 145.10 Td (Subject to certain conditions and limitations, French tax withheld on dividends may be deducted from your taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (income or credited against your United States federal income tax liability) Tj ET Q q 0 0 0 rg BT 342.09 133.10 Td (. ) Tj ET Q q 0 0 0 rg BT 346.91 133.10 Td (The limitation on foreign taxes eligible for credit is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (calculated separately with respect to specific classes of income. For this purpose, dividends, if any) Tj ET Q q 0 0 0 rg BT 442.34 121.10 Td (, that we distribute will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.10 Td (constitute passive category income, or) Tj ET Q q 0 0 0 rg BT 210.98 109.10 Td (, in the case of certain U.S. Holders, general category income. ) Tj ET Q q 0 0 0 rg BT 469.77 109.10 Td (A) Tj ET Q q 0 0 0 rg BT 476.44 109.10 Td ( foreign tax credit for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.10 Td (foreign taxes imposed on distributions may be denied if you do not satisfy certain minimum holding period requirements or if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.10 Td (you engage in certain risk reduction transactions. If you are a U.S. Holder) Tj ET Q q 0 0 0 rg BT 344.28 85.10 Td (, dividends, if any) Tj ET Q q 0 0 0 rg BT 415.56 85.10 Td (, paid to you with respect to your ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (ADSs will be treated as foreign source income, which may be relevant in calculating your foreign tax credit limitation. ) Tj ET Q q 0 0 0 rg BT 526.67 73.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.10 Td (rules relating to the determination of the foreign tax credit are complex, and you are encouraged to consult your tax advisor to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.10 Td (determine whether and to what extent you will be entitled to this credit.) Tj ET Q endstream endobj 179 0 obj <> endobj 180 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.10 Td (Subject to the discussion below under Backup ) Tj ET Q q 0 0 0 rg BT 264.67 722.10 Td (W) Tj ET Q q 0 0 0 rg BT 273.71 722.10 Td (ithholding ) Tj ET Q q 0 0 0 rg BT 317.14 722.10 Td (T) Tj ET Q q 0 0 0 rg BT 322.55 722.10 Td (ax and Information Reporting Requirements, if you are a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (Non-U.S. Holder) Tj ET Q q 0 0 0 rg BT 117.70 710.10 Td (, you should not be subject to United States federal income or withholding tax on dividends received by you ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (on your ) Tj ET Q q 0 0 0 rg BT 82.28 698.10 Td (ADSs unless such income is ef) Tj ET Q q 0 0 0 rg BT 205.70 698.10 Td (fectively connected with your conduct of a trade or business in the United States \(and, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (required by an applicable income tax treaty) Tj ET Q q 0 0 0 rg BT 222.11 686.10 Td (, is attributable to a permanent establishment or fixed base\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 660.10 Td (Sale, Exchange or Other Disposition of ) Tj ET Q q 0 0 0 rg BT 213.87 660.10 Td (ADSs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 639.10 Td (Subject to the discussion below under Passive Foreign Investment Company Considerations, if you are a U.S. Holder) Tj ET Q q 0 0 0 rg BT 551.07 639.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 Td (you will recognize capital gain or loss on the sale, exchange or other disposition of your ) Tj ET Q q 0 0 0 rg BT 403.58 627.10 Td (ADSs equal to the dif) Tj ET Q q 0 0 0 rg BT 490.05 627.10 Td (ference between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (the amount realized on such sale, exchange or other disposition and your adjusted tax basis in your ) Tj ET Q q 0 0 0 rg BT 446.62 615.10 Td (ADSs. If you are a non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.10 Td (corporate U.S. Holder) Tj ET Q q 0 0 0 rg BT 137.41 603.10 Td (, capital gain from the sale, exchange or other disposition of ) Tj ET Q q 0 0 0 rg BT 379.28 603.10 Td (ADSs will be eligible for the preferential rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (of taxation applicable to long-term capital gains if your holding period for such ) Tj ET Q q 0 0 0 rg BT 368.58 591.10 Td (ADSs exceeds one year \(i.e., such gain is long-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.10 Td (term capital gain\). Gain or loss, if any) Tj ET Q q 0 0 0 rg BT 200.75 579.10 Td (, recognized by a U.S. Holder will be treated as U.S. source gain or loss, as the case may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.10 Td (be, for foreign tax credit limitation purposes. ) Tj ET Q q 0 0 0 rg BT 231.21 567.10 Td (The deductibility of capital losses for United States federal income tax purposes is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (subject to limitations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 534.10 Td (Subject to the discussion below under Backup ) Tj ET Q q 0 0 0 rg BT 264.67 534.10 Td (W) Tj ET Q q 0 0 0 rg BT 273.71 534.10 Td (ithholding ) Tj ET Q q 0 0 0 rg BT 317.14 534.10 Td (T) Tj ET Q q 0 0 0 rg BT 322.55 534.10 Td (ax and Information Reporting Requirements, if you are a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (Non-U.S. Holder) Tj ET Q q 0 0 0 rg BT 117.70 522.10 Td (, you will not be subject to United States federal income or withholding tax on any gain realized on the sale or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (exchange of your ) Tj ET Q q 0 0 0 rg BT 120.86 510.10 Td (ADSs unless:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 498.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 498.10 Td (such gain is ef) Tj ET Q q 0 0 0 rg BT 142.40 498.10 Td (fectively connected with your conduct of a trade or business in the United States \(and, if required by an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 486.10 Td (applicable income tax treaty) Tj ET Q q 0 0 0 rg BT 197.45 486.10 Td (, is attributable to a permanent establishment or fixed base\); or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 474.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 474.10 Td (you are an individual and have been present in the United States for 183 days or more in the taxable year of such sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 462.10 Td (or exchange and certain other conditions are met.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (Passive Foreign Investment Company Considerations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 419.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 419.10 Td ( non-U.S. corporation will be classified as a passive foreign investment company, or a PFIC, for United States federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (income tax purposes for any taxable year in which, after applying certain look-through rules, either) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 395.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 395.10 Td (at least 75% of its gross income is passive income; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 383.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 383.10 Td (at least 50% of the average value of its gross assets is attributable to assets that produce passive income or are held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 371.10 Td (for the production of passive income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.10 Td (Passive income for this purpose includes dividends, interest, royalties, rents, gains from commodities and securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (transactions and the excess of gains over losses from the disposition of assets which produce passive income, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (amounts derived by reason of the investment of funds raised in of) Tj ET Q q 0 0 0 rg BT 311.76 326.10 Td (ferings of the ) Tj ET Q q 0 0 0 rg BT 367.02 326.10 Td (ADSs. If a non-U.S. corporation owns at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (25% by value of the stock of another corporation, the non-U.S. corporation is treated for purposes of the PFIC tests as owning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (its proportionate share of the assets of the other corporation and as receiving directly its proportionate share of the other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (corporation) Tj ET Q q 0 0 0 rg BT 98.37 290.10 Td (s income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 269.10 Td (Based on the character of our gross income and the average value of our passive assets relative to the gross value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (assets for the taxable year ended December31, 2018, we do not believe we were a PFIC for 2018. Because PFIC status is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (determined annually based on our income, assets and activities for the entire taxable year) Tj ET Q q 0 0 0 rg BT 405.63 245.10 Td (, it is not possible to determine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (whether we will be characterized as a PFIC for 2019 or any other future year until after the close of that year) Tj ET Q q 0 0 0 rg BT 483.49 233.10 Td (. ) Tj ET Q q 0 0 0 rg BT 488.31 233.10 Td (While we intend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (to manage our business so as to avoid PFIC status to the extent consistent with our other business goals, we cannot predict ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.10 Td (whether our business plans will allow us to avoid PFIC status. In addition, because the market price of the ) Tj ET Q q 0 0 0 rg BT 475.81 209.10 Td (ADSs has fluctuated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (and is likely to fluctuate in the future and because that market price may af) Tj ET Q q 0 0 0 rg BT 348.65 197.10 Td (fect the determination of whether we are a PFIC, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (there can be no assurance that we will not be a PFIC for any taxable year) Tj ET Q q 0 0 0 rg BT 340.78 185.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 164.10 Td (If we are a PFIC for a given year) Tj ET Q q 0 0 0 rg BT 204.71 164.10 Td (, and you are a U.S. Holder) Tj ET Q q 0 0 0 rg BT 313.45 164.10 Td (, then unless you make one of the elections described below) Tj ET Q q 0 0 0 rg BT 552.45 164.10 Td (, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (special tax regime will apply to both \(a\)any excess distribution by us to you for the year \(defined as your ratable portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (distributions in the year which are greater than 125% of the average annual distribution received by you in the shorter of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (three preceding years or your holding period for the ) Tj ET Q q 0 0 0 rg BT 258.60 128.10 Td (ADSs\) and \(b\)any gain realized on the sale or other disposition \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (a pledge\) of the ) Tj ET Q q 0 0 0 rg BT 113.92 116.10 Td (ADSs. Under this regime, any excess distribution and realized gain will be treated as ordinary income and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (be subject to tax as if \(i\)the excess distribution or gain had been realized ratably over your holding period, \(ii\)the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (deemed realized in each year had been subject to tax in each year of that holding period at the highest mar) Tj ET Q q 0 0 0 rg BT 473.59 92.10 Td (ginal rate for such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (year \(other than income allocated to the current period or any taxable period before we became a PFIC, which would be subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.10 Td (to tax at the U.S. Holder) Tj ET Q q 0 0 0 rg BT 147.35 68.10 Td () Tj ET Q q 0 0 0 rg BT 150.13 68.10 Td (s regular ordinary income rate for the current year and would not be subject to the interest char) Tj ET Q q 0 0 0 rg BT 528.97 68.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 56.10 Td (discussed below\), and \(iii\)the interest char) Tj ET Q q 0 0 0 rg BT 221.21 56.10 Td (ge applicable to underpayments of tax had been imposed on the taxes deemed to ) Tj ET Q endstream endobj 181 0 obj <> endobj 182 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (have been payable in those years. In addition, the tax liability for amounts allocated to years prior to the year of disposition or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (excess distribution cannot be of) Tj ET Q q 0 0 0 rg BT 184.83 710.10 Td (fset by any net operating losses for such years, and dividend distributions made to you will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (not qualify for the lower rates of taxation applicable to long-term capital gains discussed above under Distributions with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Respect to ) Tj ET Q q 0 0 0 rg BT 93.38 686.10 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 665.10 Td (Certain elections are available to U.S. Holders of shares that may serve to alleviate some of the adverse tax consequences ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (of PFIC status described above. One such election is a qualified electing fund, or a QEF) Tj ET Q q 0 0 0 rg BT 400.55 653.10 Td (, election, under which you would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (required to include in income on a current basis your pro rata share of our ordinary earnings as ordinary income and your pro ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (rata share of our net capital gains as capital gain. However) Tj ET Q q 0 0 0 rg BT 283.17 629.10 Td (, we do not expect to provide to U.S. Holders the information needed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (to report income and gain pursuant to a QEF election, and we make no undertaking to provide such information in the event ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (that we are a PFIC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 584.10 Td (Under an alternative tax regime, you may also avoid certain adverse tax consequences relating to PFIC status discussed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (above by making a mark-to-market election with respect to your ) Tj ET Q q 0 0 0 rg BT 308.86 572.10 Td (ADSs, provided that the ) Tj ET Q q 0 0 0 rg BT 407.46 572.10 Td (ADSs are marketable. ) Tj ET Q q 0 0 0 rg BT 506.68 572.10 Td (The ) Tj ET Q q 0 0 0 rg BT 524.18 572.10 Td (ADSs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (will be marketable if they are regularly traded on certain U.S. stock exchanges, including the NYSE, or on certain non-U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (stock exchanges. For these purposes, the ) Tj ET Q q 0 0 0 rg BT 213.91 548.10 Td (ADSs will be considered regularly traded during any calendar year during which they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (are traded, other than in negligible quantities, on at least 15 days during each calendar quarter) Tj ET Q q 0 0 0 rg BT 423.53 536.10 Td (. U.S. Holders should be aware, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 524.10 Td (, that if we are determined to be a PFIC, the interest char) Tj ET Q q 0 0 0 rg BT 309.93 524.10 Td (ge regime described above could be applied to indirect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (distributions or gains deemed to be attributable to U.S. Holders in respect of any of our subsidiaries that also may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (determined to be a PFIC, and the mark-to-market election would not be ef) Tj ET Q q 0 0 0 rg BT 345.62 500.10 Td (fective for such subsidiaries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 479.10 Td (If you choose to make a mark-to-market election, you would recognize as ordinary income or loss each year in which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (are a PFIC an amount equal to the dif) Tj ET Q q 0 0 0 rg BT 199.28 467.10 Td (ference as of the close of the taxable year between the fair market value of your ) Tj ET Q q 0 0 0 rg BT 519.68 467.10 Td (ADSs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (your adjusted tax basis in your ) Tj ET Q q 0 0 0 rg BT 173.93 455.10 Td (ADSs. Losses would be allowed only to the extent of net mark-to-market gain previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (included by you under the election for prior taxable years. If the mark-to-market election were made, then the PFIC rules ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (described above relating to excess distributions and realized gains would not apply for periods covered by the election. If you ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (do not make a mark-to-market election for the first taxable year in which we are a PFIC during your holding period of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (ADSs, you would be subject to interest char) Tj ET Q q 0 0 0 rg BT 225.40 407.10 Td (ges with respect to the inclusion of ordinary income attributable to each taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (year in which we were a PFIC during your holding period before the ef) Tj ET Q q 0 0 0 rg BT 333.96 395.10 Td (fective date of such election.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 374.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 374.10 Td ( U.S. Holder who is a direct or indirect holder of stock of a PFIC must file United States Internal Revenue Service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (Form 8621 in respect of such PFIC for a taxable year in the circumstances described in the United States ) Tj ET Q q 0 0 0 rg BT 470.59 362.10 Td (T) Tj ET Q q 0 0 0 rg BT 476.35 362.10 Td (reasury Regulations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (If we are a PFIC for a given taxable year) Tj ET Q q 0 0 0 rg BT 212.08 350.10 Td (, you are encouraged to consult your tax advisor concerning the availability and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (consequences of making any of the elections mentioned above, as well as concerning your annual filing requirements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 312.10 Td (Medicare T) Tj ET Q q 0 0 0 rg BT 96.07 312.10 Td (ax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 295.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 295.10 Td ( United States person that is an individual or estate, or a trust that does not fall into a special class of trusts that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (exempt from such tax, is subject to a 3.8% tax on net investment income in excess of certain amounts. In the case of an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (individual, the tax is imposed on the lesser of \(1\)the United States person) Tj ET Q q 0 0 0 rg BT 347.78 271.10 Td (s net investment income for the relevant taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.10 Td (year and \(2\)the excess of the United States person) Tj ET Q q 0 0 0 rg BT 254.71 259.10 Td (s modified adjusted gross income for the taxable year over $250,000 \(in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.10 Td (case of a taxpayer filing a joint return or a surviving spouse\), $125,000 \(in the case of a married taxpayer filing a separate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (return\) or $200,000 \(in any other case\). In the case of an estate or trust, the tax is imposed on the lesser of \(1\)the entity) Tj ET Q q 0 0 0 rg BT 528.80 235.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (undistributed net investment income for the taxable year and \(2\)the excess \(if any\) of the entity) Tj ET Q q 0 0 0 rg BT 444.36 223.10 Td (s adjusted gross income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (over the dollar amount at which the highest tax bracket begins for such entity) Tj ET Q q 0 0 0 rg BT 357.93 211.10 Td (. ) Tj ET Q q 0 0 0 rg BT 362.38 211.10 Td (A) Tj ET Q q 0 0 0 rg BT 369.05 211.10 Td ( holder) Tj ET Q q 0 0 0 rg BT 397.46 211.10 Td () Tj ET Q q 0 0 0 rg BT 400.24 211.10 Td (s net investment income will include its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (gross dividend income and its net gains from the disposition of ) Tj ET Q q 0 0 0 rg BT 303.08 199.10 Td (ADSs unless such dividends or net gains are derived in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (ordinary course of the conduct of a trade or business \(other than a trade or business that consists of certain passive or trading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (activities\). If you are a United States person that is an individual, estate or trust, you are encouraged to consult your tax advisors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (regarding the applicability of the Medicare tax to your income and gains in respect of your investment in the ) Tj ET Q q 0 0 0 rg BT 485.20 163.10 Td (ADSs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (Information with Respect to Foreign Financial ) Tj ET Q q 0 0 0 rg BT 245.83 137.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 120.10 Td (Individualswho own specified foreign financial assets with an aggregate value in excess of $50,000 are required to file ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (an information report with respect to such assets with their tax returns. Specified foreign financial assets include any financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.10 Td (accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.10 Td (maintained by financial institutions: \(i\)stocks and securities, including ) Tj ET Q q 0 0 0 rg BT 335.00 84.10 Td (ADSs. issued by non-U.S. persons, \(ii\)financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.10 Td (instruments and contracts held for investment that have non-U.S. issuers or counterparties and \(iii\)interests in foreign entities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.10 Td (U.S. holders that are individuals are encouraged to consult their tax advisors regarding the application of this reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 48.10 Td (requirement as it relates to their ownership of ) Tj ET Q q 0 0 0 rg BT 233.33 48.10 Td (ADSs.) Tj ET Q endstream endobj 183 0 obj <> endobj 184 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (88) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Backup ) Tj ET Q q 0 0 0 rg BT 83.49 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 92.01 722.25 Td (ithholding T) Tj ET Q q 0 0 0 rg BT 142.50 722.25 Td (ax and Information Reporting Requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (United States backup withholding tax and information reporting requirements apply to certain payments to certain non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (corporate holders of stock. Information reporting will apply to payments of dividends on, and to proceeds from the sale or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (redemption of, the ) Tj ET Q q 0 0 0 rg BT 125.04 681.25 Td (ADSs made within the United States, or by a United States payor or United States middleman, to a holder of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (the ) Tj ET Q q 0 0 0 rg BT 63.67 669.25 Td (ADSs, other than an exempt recipient, including a corporation, a payee that is not a United States person that provides an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (appropriate certification and certain other persons. ) Tj ET Q q 0 0 0 rg BT 253.03 657.25 Td (A) Tj ET Q q 0 0 0 rg BT 259.70 657.25 Td ( payor will be required to withhold backup withholding tax from any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (payments of dividends on, or the proceeds from the sale or redemption of, ) Tj ET Q q 0 0 0 rg BT 347.48 645.25 Td (ADSs within the United States, or by a United States ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (payor or United States middleman, to a holder) Tj ET Q q 0 0 0 rg BT 234.06 633.25 Td (, other than an exempt recipient, if such holder fails to furnish its correct taxpayer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.25 Td (identification number or otherwise fails to comply with, or establish an exemption from, such backup withholding tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.25 Td (requirements. ) Tj ET Q q 0 0 0 rg BT 106.15 609.25 Td (Any amounts withheld under the backup withholding rules will be allowed as a refund or credit against the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.25 Td (beneficial owner) Tj ET Q q 0 0 0 rg BT 116.78 597.25 Td () Tj ET Q q 0 0 0 rg BT 119.56 597.25 Td (s United States federal income tax liability) Tj ET Q q 0 0 0 rg BT 289.42 597.25 Td (, if any) Tj ET Q q 0 0 0 rg BT 316.81 597.25 Td (, provided that the required information is timely furnished ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.25 Td (to the IRS.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 559.25 Td (Fr) Tj ET Q q 0 0 0 rg BT 59.87 559.25 Td (ench Material ) Tj ET Q q 0 0 0 rg BT 121.89 559.25 Td (T) Tj ET Q q 0 0 0 rg BT 127.64 559.25 Td (ax Consequences) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 538.25 Td (The following is a description of the material French tax consequences of the acquisition, ownership and disposition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (the ) Tj ET Q q 0 0 0 rg BT 63.67 526.25 Td (ADSs by a U.S. Holder) Tj ET Q q 0 0 0 rg BT 157.00 526.25 Td (. ) Tj ET Q q 0 0 0 rg BT 161.82 526.25 Td (This description is based on applicable tax laws, regulations and judicial decisions as of the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (this annual report, and, where applicable, the Convention between the United States of ) Tj ET Q q 0 0 0 rg BT 397.73 514.25 Td (America and France for the ) Tj ET Q q 0 0 0 rg BT 509.63 514.25 Td (A) Tj ET Q q 0 0 0 rg BT 516.11 514.25 Td (voidance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (of Double ) Tj ET Q q 0 0 0 rg BT 92.09 502.25 Td (T) Tj ET Q q 0 0 0 rg BT 97.50 502.25 Td (axation and the Prevention of Fiscal Evasion with Respect to ) Tj ET Q q 0 0 0 rg BT 343.38 502.25 Td (T) Tj ET Q q 0 0 0 rg BT 348.79 502.25 Td (axes on Income and Capital, dated of ) Tj ET Q q 0 0 0 rg BT 499.29 502.25 Td (August31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (1994, as amended from time to time \(the U.S. ) Tj ET Q q 0 0 0 rg BT 239.28 490.25 Td (T) Tj ET Q q 0 0 0 rg BT 245.03 490.25 Td (reaty\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 469.25 Td (This description is based in part upon the representation of the custodian and the assumption that each obligation in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.25 Td (Depositary ) Tj ET Q q 0 0 0 rg BT 95.33 457.25 Td (Agreement with the depositary relating to your ) Tj ET Q q 0 0 0 rg BT 285.00 457.25 Td (ADRs and any related agreement will be performed in accordance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.25 Td (with their terms.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 424.25 Td (The following is a description of the principal tax ef) Tj ET Q q 0 0 0 rg BT 281.87 424.25 Td (fect on U.S. Holders for the purposes of French tax if, all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.25 Td (following points apply:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 400.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 400.25 Td (the U.S. Holder owns, directly) Tj ET Q q 0 0 0 rg BT 206.37 400.25 Td (, indirectly or constructively) Tj ET Q q 0 0 0 rg BT 319.03 400.25 Td (, less than 10% of the Company capital and dividend rights;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 388.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 388.25 Td (the U.S. Holder is entitled to the benefits of the U.S. ) Tj ET Q q 0 0 0 rg BT 296.83 388.25 Td (T) Tj ET Q q 0 0 0 rg BT 302.59 388.25 Td (reaty \(including under the limitations on benefits article of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 376.25 Td (U.S. ) Tj ET Q q 0 0 0 rg BT 105.20 376.25 Td (T) Tj ET Q q 0 0 0 rg BT 110.96 376.25 Td (reaty\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 364.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 364.25 Td (the U.S. Holder does not hold the ) Tj ET Q q 0 0 0 rg BT 220.92 364.25 Td (ADSs through a permanent establishment or a fixed base in France;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 352.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 352.25 Td (the U.S. Holder is not multi-resident;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 340.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 340.25 Td (the U.S. Holder does not hold the ) Tj ET Q q 0 0 0 rg BT 220.92 340.25 Td (ADSs through a non-U.S. based pass-through entity; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 328.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 328.25 Td (the U.S. Holder does not receive dividend, capital gains or other payments on the ) Tj ET Q q 0 0 0 rg BT 411.96 328.25 Td (ADSs on an account located in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 316.25 Td (Non-cooperative State as defined in ) Tj ET Q q 0 0 0 rg BT 230.33 316.25 Td (Article 238-0 ) Tj ET Q q 0 0 0 rg BT 285.87 316.25 Td (A) Tj ET Q q 0 0 0 rg BT 292.54 316.25 Td ( of the French General ) Tj ET Q q 0 0 0 rg BT 384.82 316.25 Td (T) Tj ET Q q 0 0 0 rg BT 390.23 316.25 Td (ax Code and as mentioned in a list ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 304.25 Td (published by the French tax authorities as amended from time to time \(on January1) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 420.02 308.78 Td (st) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.35 304.25 Td ( of each year\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 283.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 283.25 Td ( U.S. Holder to whom all the above requirements apply will be hereafter defined as a Qualifying U.S. Holder) Tj ET Q q 0 0 0 rg BT 515.60 283.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 262.25 Td (This description is relevant only to holders of ) Tj ET Q q 0 0 0 rg BT 257.36 262.25 Td (ADSs who are Qualifying U.S. Holders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 241.25 Td (For purposes of the U.S. ) Tj ET Q q 0 0 0 rg BT 173.59 241.25 Td (T) Tj ET Q q 0 0 0 rg BT 179.35 241.25 Td (reaty Qualifying U.S. Holders of ) Tj ET Q q 0 0 0 rg BT 312.38 241.25 Td (ADSs will be treated as the owners of Company) Tj ET Q q 0 0 0 rg BT 507.90 241.25 Td (s ordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.25 Td (shares represented by such ) Tj ET Q q 0 0 0 rg BT 158.35 229.25 Td (ADSs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 208.25 Td (Special rules apply to U.S. expatriates, insurance companies, pass-through entities and investors in such entities, tax-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.25 Td (exempt or) Tj ET Q q 0 0 0 rg BT 89.58 196.25 Td (ganizations, financial institutions, persons subject to the alternative minimum tax and securities broker) Tj ET Q q 0 0 0 rg BT 499.84 196.25 Td (-dealers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.25 Td (among others. ) Tj ET Q q 0 0 0 rg BT 108.47 184.25 Td (Those special rules are not discussed in this annual report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 163.25 Td (Holders of Company ) Tj ET Q q 0 0 0 rg BT 159.33 163.25 Td (ADSs are encouraged to consult their own tax advisors as to the particular tax consequences to them ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.25 Td (of owning the ) Tj ET Q q 0 0 0 rg BT 107.00 151.25 Td (ADS, including their eligibility for benefits under the U.S. ) Tj ET Q q 0 0 0 rg BT 342.89 151.25 Td (T) Tj ET Q q 0 0 0 rg BT 348.65 151.25 Td (reaty) Tj ET Q q 0 0 0 rg BT 367.98 151.25 Td (, the application and ef) Tj ET Q q 0 0 0 rg BT 459.15 151.25 Td (fect of state, local, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.25 Td (foreign and other tax laws and possible changes in tax laws or in their interpretation.) Tj ET Q endstream endobj 185 0 obj <> endobj 186 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (89) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.69 722.25 Td (axation of Dividends) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 705.25 Td (Dividends paid by a French company to corporate non-French holders are generally subject to a 30% withholding tax \(or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (21% if the holder is an individual resident of the EU, Norway) Tj ET Q q 0 0 0 rg BT 295.46 693.25 Td (, Iceland or Liechtenstein\). Such 30% withholding tax rate can be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (increased to 75% if the dividend is paid towards Non-cooperative States or territories \(as mentioned above\) irrespective of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (tax residence of the beneficiary of the dividends. Such withholding tax rates may) Tj ET Q q 0 0 0 rg BT 372.92 669.25 Td (, however) Tj ET Q q 0 0 0 rg BT 411.95 669.25 Td (, be reduced or eliminated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (application of a tax treaty with France. For fiscal years opened as from January 1, 2020, the withholding tax rate applicable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (dividends paid to corporate non-French holders will be equal to the standard corporate income tax rate \(i.e., 28% in 2020, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (26.5% in 2021 and 25% as from 2022\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 616.25 Td (Since January1, 2018, dividends paid by a French company to individualnon-Frenchholders are generally subject to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (12.8% withholding tax. Such 12.8% withholding tax rate can be increased to 75% if the dividend is paid towardsNon-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.25 Td (cooperativeStates or territories \(as mentioned above\) irrespective of the tax residence of the beneficiary of the dividends. Such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (withholding tax rates may) Tj ET Q q 0 0 0 rg BT 153.00 580.25 Td (, however) Tj ET Q q 0 0 0 rg BT 192.02 580.25 Td (, be reduced or eliminated by application of a tax treaty with France.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 559.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.69 559.25 Td (axation of Capital Gains) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 538.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 538.25 Td ( Qualifying U.S. Holder will not be subject to any French income or withholding tax on any capital gain realized upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (the sale or exchange of ) Tj ET Q q 0 0 0 rg BT 143.63 526.25 Td (ADSs of the Company) Tj ET Q q 0 0 0 rg BT 233.81 526.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 505.25 Td (Estate and Gift T) Tj ET Q q 0 0 0 rg BT 119.42 505.25 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 484.25 Td (Under the Convention Between the United States of ) Tj ET Q q 0 0 0 rg BT 283.46 484.25 Td (America and the French Republic for the ) Tj ET Q q 0 0 0 rg BT 449.23 484.25 Td (A) Tj ET Q q 0 0 0 rg BT 455.71 484.25 Td (voidance of Double ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 472.25 Td (axation and the Prevention of Fiscal Evasion with Respect to ) Tj ET Q q 0 0 0 rg BT 300.79 472.25 Td (T) Tj ET Q q 0 0 0 rg BT 306.20 472.25 Td (axes on Estates, Inheritance and Gifts dated November24, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.25 Td (1978 \(as amended from time to time\), if a U.S. Holder transfers his or her shares by gift or by reason of the U.S. Holder) Tj ET Q q 0 0 0 rg BT 528.92 460.25 Td () Tj ET Q q 0 0 0 rg BT 531.70 460.25 Td (s death, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.25 Td (that transfer will not be subject to French gift or inheritance tax unless the U.S. Holder is domiciled in France at the time of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.25 Td (making the gift or at the time of his or her death or if the shares are held for use in the conduct of a business or profession ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.25 Td (through a permanent establishment or a fixed base in France.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 403.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 403.25 Td (ealth T) Tj ET Q q 0 0 0 rg BT 85.90 403.25 Td (ax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 382.25 Td (As of January1, 2018, the French wealth tax namely the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 302.05 382.25 Td (Impt de Solidarit sur la Fortune) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.54 382.25 Td (\(ISF\) is replaced by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 64.22 370.25 Td (Impt sur la Fortune Immobilir) Tj ET Q q 0 0 0 rg BT 194.39 370.25 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.83 370.25 Td (\(IFI\). ) Tj ET Q q 0 0 0 rg BT 233.91 370.25 Td (The IFI generally applies to real estate assets to the extent that their net value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (exceeds 1,300,000. ) Tj ET Q q 0 0 0 rg BT 133.46 358.25 Td (Therefore, all other movable assets \(tangible assets, shares, life insurance, cash, etc.\) are excluded from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (tax base, unless their underlying assets \(direct or indirect\) consist of real estate assets or rights. However) Tj ET Q q 0 0 0 rg BT 467.31 346.25 Td (, a general exclusion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (applies to real estate assets owned by companies pursuing a commercial, industrial, craft, agricultural or liberal activity when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (the taxpayer \(together with the members of its tax household\) holds directly or indirectly less than 10% of the share capital or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (the voting rights of the company) Tj ET Q q 0 0 0 rg BT 179.10 310.25 Td (. ) Tj ET Q q 0 0 0 rg BT 186.05 310.25 Td (As a result, Qualifying U.S. Holders will not be subject to French IFI in respect of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (shareholding in the Company) Tj ET Q q 0 0 0 rg BT 166.89 298.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 264.48 Td (F) Tj ET Q q 0 0 0 rg BT 57.69 264.48 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 264.48 Td (Dividends and Paying ) Tj ET Q q 0 0 0 rg BT 175.19 264.48 Td (Agents) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 243.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 209.48 Td (G.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 209.48 Td (Statement by Experts) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 189.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 155.48 Td (H.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 155.48 Td (Documents on Display) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 135.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 135.25 Td (e are currently subject to the informational requirements of the Exchange ) Tj ET Q q 0 0 0 rg BT 376.75 135.25 Td (Act applicable to foreign private issuers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.25 Td (fulfill the obligations of these requirements by filing reports with the Securities and Exchange Commission. ) Tj ET Q q 0 0 0 rg BT 482.75 123.25 Td (As a foreign private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.25 Td (issuer) Tj ET Q q 0 0 0 rg BT 72.43 111.25 Td (, we are exempt from the rules under the Exchange ) Tj ET Q q 0 0 0 rg BT 278.18 111.25 Td (Act relating to the furnishing and content of proxy statements, and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 99.25 Td (ficers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.25 Td (contained in Section16 of the Exchange ) Tj ET Q q 0 0 0 rg BT 213.06 87.25 Td (Act. In addition, we are not required under the Exchange ) Tj ET Q q 0 0 0 rg BT 442.42 87.25 Td (Act to file periodic reports ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.25 Td (and financial statements with the Securities and Exchange Commission as frequently or as promptly as United States companies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.25 Td (whose securities are registered under the Exchange ) Tj ET Q q 0 0 0 rg BT 255.80 63.25 Td (Act. However) Tj ET Q q 0 0 0 rg BT 311.49 63.25 Td (, we intend to file with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 51.25 Td (Commission, within 120 days after the end of each subsequent fiscal year) Tj ET Q q 0 0 0 rg BT 343.47 51.25 Td (, an annual report on Form 20-F containing financial ) Tj ET Q endstream endobj 187 0 obj <> endobj 188 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (statements which will be examined and reported on, with an opinion expressed, by an independent public accounting firm. ) Tj ET Q q 0 0 0 rg BT 541.69 722.10 Td (W) Tj ET Q q 0 0 0 rg BT 550.33 722.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (also intend to file with the Securities and Exchange Commission reports on Form 6-K containing unaudited financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (information for the first three quarters of each fiscal year) Tj ET Q q 0 0 0 rg BT 276.50 698.10 Td (, within 60 days after the end of each quarter) Tj ET Q q 0 0 0 rg BT 454.76 698.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 677.10 Td (The Securities and Exchange Commission maintains an Internet site that contains reports and other information regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (issuers that file electronically with the Securities and Exchange Commission. Our filings with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (Commission are available to the public through this web site at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 304.17 653.10 Td (http://www) Tj ET Q q 0 0 0 rg BT 347.88 653.10 Td (.sec.gov) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.09 653.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 619.33 Td (I.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 619.33 Td (Subsidiary Information) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 598.10 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (Item1) Tj ET Q q 0 0 0 rg BT 76.44 572.10 Td (1. Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 251.54 572.10 Td (es ) Tj ET Q q 0 0 0 rg BT 261.82 572.10 Td (About Market Risk) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 70.98 555.10 Td (est Rate Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 538.10 Td (e had cash and cash equivalents and short-term investments totaling $20.5 million, $3.3 million and $12.1 million, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.08 526.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 526.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.08 526.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.08 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.52 526.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.52 526.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 245.18 526.10 Td (. Our cash and cash equivalents consist of cash in commercial bank accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (and investments in money market funds. Short-term investments are investments in deposits or money market funds with terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (greater than 90 days but less than one year) Tj ET Q q 0 0 0 rg BT 218.89 502.10 Td (.) Tj ET Q q 0 0 0 rg BT 223.71 502.10 Td (The primary objectives of our investment activities are to preserve principal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (provide liquidity without significantly increasing risk. Our cash and cash equivalents are held for working capital purposes. ) Tj ET Q q 0 0 0 rg BT 545.58 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 554.22 490.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (do not enter into investments for trading or speculative purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 457.10 Td (Our exposure to interest rate risk primarily relates to the interest income generated by excess cash invested in money ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (market funds. Due to the short-term and highly liquid nature of our portfolio, a movement in interest rates of 100 basis points ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (during 2018 would not have a material ef) Tj ET Q q 0 0 0 rg BT 214.55 433.10 Td (fect on interest income.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (For) Tj ET Q q 0 0 0 rg BT 64.87 407.10 Td (eign Curr) Tj ET Q q 0 0 0 rg BT 106.62 407.10 Td (ency Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 390.10 Td (e use the U.S. dollar as the functional currency of Sequans Communications S.A. Substantially all of our sales are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (denominated in U.S. dollars. ) Tj ET Q q 0 0 0 rg BT 166.25 378.10 Td (Therefore, we have very limited foreign currency risk associated with our revenue. ) Tj ET Q q 0 0 0 rg BT 499.82 378.10 Td (The payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (terms of our significant supply chain vendors are also denominated in U.S. dollars. ) Tj ET Q q 0 0 0 rg BT 383.14 366.10 Td (W) Tj ET Q q 0 0 0 rg BT 391.78 366.10 Td (e incur operating expenses and hold assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (and liabilities denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 314.86 354.10 Td (, principally the euro. In addition, we have limited exposure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (to the British pound sterling, the New Israeli shekel, the ) Tj ET Q q 0 0 0 rg BT 275.38 342.10 Td (T) Tj ET Q q 0 0 0 rg BT 280.79 342.10 Td (aiwan dollar) Tj ET Q q 0 0 0 rg BT 330.10 342.10 Td (, the Chinese yuan, the Swedish krona and the Japanese ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (yen. ) Tj ET Q q 0 0 0 rg BT 68.39 330.10 Td (As a result, our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (rates, primarily the U.S. dollar to euro exchange rate. ) Tj ET Q q 0 0 0 rg BT 264.15 318.10 Td (As we grow our operations, our exposure to foreign currency risk could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (become more significant. If there had been a 10% increase or decrease in the exchange rate of the U.S. dollar to the euro, based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (on the weighted average rate of exchange in our financial statements for the year ending December 31, 2018, we estimate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (impact, in absolute terms, on operating expenses and on financial liabilities for 2018, would have been $4.4 million.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 258.10 Td (From time to time, we have entered into foreign currency hedging contracts primarily to reduce the impact of variations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (in the U.S. dollar to euro exchange rate on our operating expenses denominated in euros. Currently) Tj ET Q q 0 0 0 rg BT 444.85 246.10 Td (, we do not expect to enter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (into foreign currency exchange contracts for trading or speculative purposes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 208.10 Td (Item12. Description of Securities Other) Tj ET Q q 0 0 0 rg BT 219.28 208.10 Td ( than Equity Securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 174.33 Td (A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 174.33 Td (Debt Securities) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 154.10 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 120.33 Td (B) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.17 120.33 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 120.33 Td (W) Tj ET Q q 0 0 0 rg BT 90.65 120.33 Td (arrants and Rights) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 100.10 Td (Not applicable.) Tj ET Q endstream endobj 189 0 obj <> endobj 190 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (91) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 719.23 Td (C.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 719.23 Td (Other Securities) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 699.00 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 665.23 Td (D.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 82.50 665.23 Td (American Depositary Shares) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 644.00 Td (The Bank of New ) Tj ET Q q 0 0 0 rg BT 147.00 644.00 Td (Y) Tj ET Q q 0 0 0 rg BT 153.22 644.00 Td (ork Mellon, as depositary) Tj ET Q q 0 0 0 rg BT 254.77 644.00 Td (, registers and delivers our ) Tj ET Q q 0 0 0 rg BT 362.52 644.00 Td (ADSs. Each ) Tj ET Q q 0 0 0 rg BT 413.35 644.00 Td (ADS represents one ordinary share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.00 Td (\(or a right to receive one ordinary share\) deposited with the principal Paris of) Tj ET Q q 0 0 0 rg BT 358.38 632.00 Td (fice of Socit Gnrale or any successor) Tj ET Q q 0 0 0 rg BT 522.90 632.00 Td (, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.00 Td (custodian for the depositary) Tj ET Q q 0 0 0 rg BT 160.21 620.00 Td (. Each ) Tj ET Q q 0 0 0 rg BT 187.14 620.00 Td (ADS will also represent any other securities, cash or other property which may be held by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.00 Td (depositary in respect of the depositary facility) Tj ET Q q 0 0 0 rg BT 232.12 608.00 Td (. ) Tj ET Q q 0 0 0 rg BT 236.57 608.00 Td (A) Tj ET Q q 0 0 0 rg BT 243.24 608.00 Td ( copy of our Deposit ) Tj ET Q q 0 0 0 rg BT 327.40 608.00 Td (Agreement among us, the depositary) Tj ET Q q 0 0 0 rg BT 473.65 608.00 Td (, owners and holders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.00 Td (of ) Tj ET Q q 0 0 0 rg BT 59.78 596.00 Td (ADSs was filed with the SEC as an exhibit to our Form F-6 filed on March22, 201) Tj ET Q q 0 0 0 rg BT 392.15 596.00 Td (1.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 570.00 Td (Fees and Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.00 Td (Pursuant to the terms of the deposit agreement, we will be paying all fees and expenses relating to the ) Tj ET Q q 0 0 0 rg BT 458.27 553.00 Td (ADSs on behalf of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.00 Td (holders. However) Tj ET Q q 0 0 0 rg BT 120.19 541.00 Td (, in the future that arrangement may be changed, at our option, such that the holders will be required to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.00 Td (the following fees:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 495.06 Td (Persons depositing or withdrawing or) Tj ET Q q 0 0 0 rg BT 204.55 495.06 Td (dinary shar) Tj ET Q q 0 0 0 rg BT 250.57 495.06 Td (es or ) Tj ET Q q 0 0 0 rg BT 272.52 495.06 Td (ADS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 485.06 Td (holders must pay:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 484.75 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 318.50 495.06 Td (For:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 456.07 Td ($5.00 \(or less\) per 100 ) Tj ET Q q 0 0 0 rg BT 144.98 456.07 Td (ADSs \(or portion of 100 ) Tj ET Q q 0 0 0 rg BT 244.70 456.07 Td (ADSs\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 409.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.50 445.17 Td (Issue of ) Tj ET Q q 0 0 0 rg BT 397.83 445.17 Td (ADSs, including issues resulting from a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 435.17 Td (distribution of ordinary shares or rights or other property) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 318.50 428.63 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.50 420.17 Td (Cancellation of ) Tj ET Q q 0 0 0 rg BT 427.82 420.17 Td (ADSs for the purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 410.17 Td (withdrawal, including if the deposit agreement terminates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 381.07 Td ($0.05 \(or less\) per ) Tj ET Q q 0 0 0 rg BT 127.48 381.07 Td (ADS) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 380.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 381.07 Td () Tj ET Q q 0 0 0 rg BT 362.23 381.07 Td (Any cash distribution to ) Tj ET Q q 0 0 0 rg BT 460.56 381.07 Td (ADS holders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 352.07 Td (A) Tj ET Q q 0 0 0 rg BT 59.45 352.07 Td ( fee equivalent to the fee that would be payable if) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 342.07 Td (securities distributed to you had been ordinary shares and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 332.07 Td (the shares had been deposited for issue of ) Tj ET Q q 0 0 0 rg BT 221.06 332.07 Td (ADSs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 331.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 352.07 Td (Distribution of securities distributed to holders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 342.07 Td (of deposited securities which are distributed by the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 332.07 Td (depositary to ) Tj ET Q q 0 0 0 rg BT 390.66 332.07 Td (ADS holders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 303.07 Td ($0.05 \(or less\) per ) Tj ET Q q 0 0 0 rg BT 127.48 303.07 Td (ADSs per calendar year) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 302.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 303.07 Td (Depositary services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 274.07 Td (Registration or transfer fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 242.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 274.07 Td () Tj ET Q q 0 0 0 rg BT 362.41 274.07 Td (T) Tj ET Q q 0 0 0 rg BT 368.25 274.07 Td (ransfer and registration of ordinary shares on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 264.07 Td (our share register to or from the name of the depositary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 254.07 Td (or its agent when you deposit or withdraw shares) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 214.07 Td (Expenses of the depositary) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 188.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.50 214.07 Td (Cable, telex and facsimile transmissions \(when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 204.07 Td (expressly provided in the deposit agreement\)) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 318.50 197.53 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.50 189.07 Td (converting foreign currency to U.S. dollars) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 160.07 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 160.07 Td (axes and other governmental char) Tj ET Q q 0 0 0 rg BT 192.76 160.07 Td (ges the depositary or the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 150.07 Td (custodian have to pay on any ) Tj ET Q q 0 0 0 rg BT 171.08 150.07 Td (ADS or share underlying an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 140.07 Td (ADS, for example, stock transfer taxes, stamp duty or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 130.07 Td (withholding taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 128.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 160.07 Td () Tj ET Q q 0 0 0 rg BT 362.23 160.07 Td (As necessary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 100.07 Td (Any char) Tj ET Q q 0 0 0 rg BT 89.25 100.07 Td (ges incurred by the depositary or its agents for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 90.07 Td (servicing the deposited securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 89.75 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 100.07 Td () Tj ET Q q 0 0 0 rg BT 361.95 100.07 Td (As necessary) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 65.00 Td (The depositary collects its fees for delivery and surrender of ) Tj ET Q q 0 0 0 rg BT 316.19 65.00 Td (ADSs directly from investors depositing ordinary shares or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.00 Td (surrendering ) Tj ET Q q 0 0 0 rg BT 101.99 53.00 Td (ADSs for the purpose of withdrawal or from intermediaries acting for them. ) Tj ET Q q 0 0 0 rg BT 408.11 53.00 Td (The depositary collects fees for ) Tj ET Q endstream endobj 191 0 obj <> endobj 192 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (property to pay the fees. ) Tj ET Q q 0 0 0 rg BT 148.73 710.10 Td (The depositary may collect its annual fee for depositary services by deduction from cash distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (or by directly billing investors or by char) Tj ET Q q 0 0 0 rg BT 213.45 698.10 Td (ging the book-entry system accounts of participants acting for them. ) Tj ET Q q 0 0 0 rg BT 488.47 698.10 Td (The depositary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (may generally refuse to provide for) Tj ET Q q 0 0 0 rg BT 190.63 686.10 Td (-fee services until its fees for those services are paid.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 665.10 Td (Holders of ) Tj ET Q q 0 0 0 rg BT 117.94 665.10 Td (ADS are responsible for any taxes or other governmental char) Tj ET Q q 0 0 0 rg BT 365.73 665.10 Td (ges payable on the holders) Tj ET Q q 0 0 0 rg BT 474.39 665.10 Td ( ) Tj ET Q q 0 0 0 rg BT 476.34 665.10 Td (ADSs or on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (deposited securities represented by any of ) Tj ET Q q 0 0 0 rg BT 218.89 653.10 Td (ADSs. ) Tj ET Q q 0 0 0 rg BT 247.61 653.10 Td (The depositary may refuse to register any transfer of the holders) Tj ET Q q 0 0 0 rg BT 506.77 653.10 Td ( ) Tj ET Q q 0 0 0 rg BT 508.71 653.10 Td (ADSs or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (allow the holder to withdraw the deposited securities represented by the holders) Tj ET Q q 0 0 0 rg BT 371.16 641.10 Td ( ) Tj ET Q q 0 0 0 rg BT 373.11 641.10 Td (ADSs until such taxes or other char) Tj ET Q q 0 0 0 rg BT 515.12 641.10 Td (ges are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (paid. It may apply payments owed to the holder or sell deposited securities represented by the holders) Tj ET Q q 0 0 0 rg BT 458.92 629.10 Td ( ) Tj ET Q q 0 0 0 rg BT 460.87 629.10 Td (ADSs to pay any taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (owed and you will remain liable for any deficiency) Tj ET Q q 0 0 0 rg BT 253.22 617.10 Td (. If the depositary sells deposited securities, it will, if appropriate, reduce the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (number of ) Tj ET Q q 0 0 0 rg BT 92.83 605.10 Td (ADSs to reflect the sale and pay to ) Tj ET Q q 0 0 0 rg BT 233.90 605.10 Td (ADS holders any proceeds, or send to ) Tj ET Q q 0 0 0 rg BT 387.21 605.10 Td (ADS holders any property) Tj ET Q q 0 0 0 rg BT 491.81 605.10 Td (, remaining after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (it has paid the taxes.) Tj ET Q endstream endobj 193 0 obj <> endobj 194 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (93) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.85 722.25 Td (P) Tj ET Q q 0 0 0 rg BT 293.22 722.25 Td (AR) Tj ET Q q 0 0 0 rg BT 307.31 722.25 Td (T) Tj ET Q q 0 0 0 rg BT 313.80 722.25 Td ( II) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 696.25 Td (Item13. Defaults, Dividend ) Tj ET Q q 0 0 0 rg BT 168.39 696.25 Td (Arr) Tj ET Q q 0 0 0 rg BT 184.31 696.25 Td (earages and Delinquencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 679.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (Item14. Material Modifications to the Rights of Security Holders and Use of Pr) Tj ET Q q 0 0 0 rg BT 388.16 653.25 Td (oceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 636.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (Item15. Contr) Tj ET Q q 0 0 0 rg BT 112.36 610.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 155.52 610.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 184.78 610.25 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 89.32 593.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 121.63 593.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 164.79 593.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 194.05 593.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 576.25 Td (Our chief executive of) Tj ET Q q 0 0 0 rg BT 163.00 576.25 Td (ficer and chief financial of) Tj ET Q q 0 0 0 rg BT 268.87 576.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 286.78 576.25 Td (, after evaluating the ef) Tj ET Q q 0 0 0 rg BT 379.05 576.25 Td (fectiveness of our disclosure controls and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.25 Td (procedures \(as defined in Rule13a-15\(e\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 282.46 564.25 Td (Act\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.39 564.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.98 564.25 Td (, have concluded that, as of such date, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.25 Td (as a result of the material weakness related to controls over the accounting and presentation of complex, non-routine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.25 Td (transactions detailed below) Tj ET Q q 0 0 0 rg BT 157.70 540.25 Td (, our disclosure controls and procedures were not ef) Tj ET Q q 0 0 0 rg BT 364.40 540.25 Td (fective at a reasonable level of assurance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.25 Td (accordingly) Tj ET Q q 0 0 0 rg BT 96.05 528.25 Td (, are not ef) Tj ET Q q 0 0 0 rg BT 138.63 528.25 Td (fective in ensuring that information required to be disclosed by us in reports that we file or submit under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.25 Td (the Exchange ) Tj ET Q q 0 0 0 rg BT 105.59 516.25 Td (Act is accumulated and communicated to our management, including our chief executive of) Tj ET Q q 0 0 0 rg BT 472.78 516.25 Td (ficer and chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.25 Td (financial of) Tj ET Q q 0 0 0 rg BT 95.13 504.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 113.04 504.25 Td (, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.25 Td (within the time periods specified by the SEC) Tj ET Q q 0 0 0 rg BT 231.41 492.25 Td (s rules and forms.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (Management ) Tj ET Q q 0 0 0 rg BT 107.55 466.25 Td (Annual Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 250.15 466.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 281.91 466.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 449.25 Td (Our management is responsible for establishing and maintaining adequate internal control over our financial reporting.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 432.25 Td (Internal control over financial reporting is defined in Rule 13a-15\(f\) or 15d-15\(f\) promulgated under the Exchange ) Tj ET Q q 0 0 0 rg BT 534.45 432.25 Td (Act as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.25 Td (a process designed by) Tj ET Q q 0 0 0 rg BT 136.33 420.25 Td (, or under the supervision of, the Company) Tj ET Q q 0 0 0 rg BT 310.46 420.25 Td (s principal executive and principal financial of) Tj ET Q q 0 0 0 rg BT 496.32 420.25 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 408.25 Td (fected by the Company) Tj ET Q q 0 0 0 rg BT 152.89 408.25 Td (s board of directors, management and other personnel, to provide reasonable assurance regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td (reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.25 Td (includes those policies and procedures that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.50 372.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 372.25 Td (Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 360.25 Td (dispositions of the assets of the Company;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.50 348.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 348.25 Td (Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 336.25 Td (in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 324.25 Td (being made only in accordance with authorizations of management and directors of the Company; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.50 312.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 312.25 Td (Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use of disposition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 300.25 Td (of the Company) Tj ET Q q 0 0 0 rg BT 151.71 300.25 Td (s assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 297.31 300.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 279.25 Td (Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.25 Td (Projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 187.33 267.25 Td (fectiveness to future periods are subject to the risk that controls may become inadequate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.25 Td (because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 234.25 Td (Our management assessed the ef) Tj ET Q q 0 0 0 rg BT 203.83 234.25 Td (fectiveness of our internal control over financial reporting, as of December31, 2018. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.25 Td (making this assessment, our management used the criteria set forth by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 463.12 222.25 Td (ganizations of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 210.25 Td (readway Commission \(COSO\) in Internal Control-Integrated Framework \(2013 Framework\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 189.25 Td (Based on the assessment performed by our management, as of December 31, 2018, we identified a material weakness in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.25 Td (our internal control over financial reporting.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 156.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 156.25 Td ( material weakness is a deficiency) Tj ET Q q 0 0 0 rg BT 215.85 156.25 Td (, or a combination of deficiencies, in internal control over financial reporting, such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.25 Td (that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.25 Td (prevented or detected on a timely basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 111.25 Td (The material weakness in internal control over financial reporting that our management identified relates to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.25 Td (management) Tj ET Q q 0 0 0 rg BT 103.37 99.25 Td (s review controls and other controls over the accounting and presentation of complex, non-routine transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.25 Td (that were not adequately designed and documented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 66.25 Td (In 2018, the complex, non-routine transaction that exposed the material weakness was the amendment of convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.25 Td (bonds that were issued in prior years as well as the issuance of new financial instruments with equity components and their ) Tj ET Q endstream endobj 195 0 obj <> endobj 196 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (associated deferred tax impacts. Specifically) Tj ET Q q 0 0 0 rg BT 229.33 722.10 Td (, our management identified that our controls lacked suf) Tj ET Q q 0 0 0 rg BT 453.25 722.10 Td (ficient specificity) Tj ET Q q 0 0 0 rg BT 522.29 722.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (including evaluation of all relevant accounting standards for these complex transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 686.10 Td (Based on the aforementioned material weakness, our management concluded that the Company) Tj ET Q q 0 0 0 rg BT 470.37 686.10 Td (s system of internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (control over financial reporting was not ef) Tj ET Q q 0 0 0 rg BT 218.15 674.10 Td (fective as of December 31, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 653.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 133.21 653.10 Td (s independent registered public accounting firm, Ernst & ) Tj ET Q q 0 0 0 rg BT 362.50 653.10 Td (Y) Tj ET Q q 0 0 0 rg BT 368.72 653.10 Td (oung ) Tj ET Q q 0 0 0 rg BT 390.67 653.10 Td (Audit, has issued an audit report on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 641.10 Td (s internal control over financial reporting, which expresses an adverse opinion on the ef) Tj ET Q q 0 0 0 rg BT 441.42 641.10 Td (fectiveness of our internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (control over financial reporting as of December 31, 2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.05 557.10 Td (Report of Independent Register) Tj ET Q q 0 0 0 rg BT 316.13 557.10 Td (ed Public ) Tj ET Q q 0 0 0 rg BT 357.81 557.10 Td (Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.70 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 527.70 Td (o the Shareholders and the Board of Directors of Sequans Communications S.A.:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 491.70 Td (Opinion on Internal Contr) Tj ET Q q 0 0 0 rg BT 162.95 491.70 Td (ol Over) Tj ET Q q 0 0 0 rg BT 194.71 491.70 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.70 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 467.70 Td (e have audited Sequans Communications S.A.) Tj ET Q q 0 0 0 rg BT 245.61 467.70 Td (s internal control over financial reporting as of December 31, 2018, based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.70 Td (criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 467.55 455.70 Td (ganizations of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.70 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 443.70 Td (readway Commission 2013 framework,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.56 443.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.06 443.70 Td (\(the COSO criteria\). In our opinion, because of the ef) Tj ET Q q 0 0 0 rg BT 429.42 443.70 Td (fect of the material weakness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.70 Td (described below on the achievement of the objectives of the control criteria, Sequans Communications S.A. \(the Company\) has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.70 Td (not maintained ef) Tj ET Q q 0 0 0 rg BT 119.29 419.70 Td (fective internal control over financial reporting as of December 31, 2018, based on the COSO criteria.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.70 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 398.70 Td ( material weakness is a deficiency) Tj ET Q q 0 0 0 rg BT 191.85 398.70 Td (, or combination of deficiencies, in internal control over financial reporting, such that there ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.70 Td (is a reasonable possibility that a material misstatement of the company) Tj ET Q q 0 0 0 rg BT 334.98 386.70 Td (s annual or interim financial statements will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.70 Td (prevented or detected on a timely basis. ) Tj ET Q q 0 0 0 rg BT 210.37 374.70 Td (The following material weakness has been identified and included in management) Tj ET Q q 0 0 0 rg BT 541.93 374.70 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.70 Td (assessment: ) Tj ET Q q 0 0 0 rg BT 101.54 362.70 Td (The Company's management review controls and other controls over the accounting and presentation of complex, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.70 Td (non-routine transactions were not adequately designed and documented. Specifically) Tj ET Q q 0 0 0 rg BT 390.40 350.70 Td (, in 2018, the complex, non-routine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.70 Td (transaction that exposed the material weakness was the amendment of convertible bonds that were issued in prior years as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.70 Td (as the issuance of new financial instruments with equity components and their associated deferred tax impacts. Specifically) Tj ET Q q 0 0 0 rg BT 544.25 326.70 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.70 Td (management) Tj ET Q q 0 0 0 rg BT 103.37 314.70 Td (s controls lacked suf) Tj ET Q q 0 0 0 rg BT 185.11 314.70 Td (ficient specificity) Tj ET Q q 0 0 0 rg BT 254.15 314.70 Td (, including evaluation of all relevant accounting standards for these complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.70 Td (transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.70 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 278.70 Td (e also have audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 366.94 278.70 Td (Accounting Oversight Board \(United States\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.70 Td (\(PCAOB\), the consolidated statements of financial position of the Company as of December 31, 2016, 2017 and 2018, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.70 Td (related consolidated statements of operations, comprehensive income \(loss\), changes in equity \(deficit\) and cash flows for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.70 Td (of the three years in the period ended December 31, 2018, and the related notes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.70 Td (This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.70 Td (2018 consolidated financial statements, and this report does not af) Tj ET Q q 0 0 0 rg BT 313.69 206.70 Td (fect our report dated May 1, 2019.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 170.70 Td (Basis for) Tj ET Q q 0 0 0 rg BT 86.82 170.70 Td ( Opinion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.70 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 144.70 Td (s management is responsible for maintaining ef) Tj ET Q q 0 0 0 rg BT 298.43 144.70 Td (fective internal control over financial reporting and for its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.70 Td (assessment of the ef) Tj ET Q q 0 0 0 rg BT 129.57 132.70 Td (fectiveness of internal control over financial reporting included in the accompanying Management ) Tj ET Q q 0 0 0 rg BT 524.99 132.70 Td (Annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.70 Td (Report on Internal Control Over Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.70 Td (Our responsibility is to express an opinion on the Company) Tj ET Q q 0 0 0 rg BT 290.31 100.70 Td (s internal control over financial reporting based on our audit. ) Tj ET Q q 0 0 0 rg BT 535.89 100.70 Td (W) Tj ET Q q 0 0 0 rg BT 544.52 100.70 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.70 Td (are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.70 Td (accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 64.70 Td (Commission and the PCAOB.) Tj ET Q endstream endobj 197 0 obj <> endobj 198 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 722.10 Td (e conducted our audit in accordance with the standards of the PCAOB. ) Tj ET Q q 0 0 0 rg BT 343.71 722.10 Td (Those standards require that we plan and perform the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (audit to obtain reasonable assurance about whether ef) Tj ET Q q 0 0 0 rg BT 263.40 710.10 Td (fective internal control over financial reporting was maintained in all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (material respects. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (weakness exists, testing and evaluating the design and operating ef) Tj ET Q q 0 0 0 rg BT 316.47 662.10 Td (fectiveness of internal control based on the assessed risk, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (performing such other procedures as we considered necessary in the circumstances. ) Tj ET Q q 0 0 0 rg BT 385.86 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 394.50 650.10 Td (e believe that our audit provides a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (reasonable basis for our opinion.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (Definition and Limitations of Internal Contr) Tj ET Q q 0 0 0 rg BT 239.05 614.10 Td (ol Over) Tj ET Q q 0 0 0 rg BT 270.80 614.10 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 590.10 Td ( company) Tj ET Q q 0 0 0 rg BT 98.10 590.10 Td (s internal control over financial reporting is a process designed to provide reasonable assurance regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (accepted accounting principles. ) Tj ET Q q 0 0 0 rg BT 177.22 566.10 Td (A) Tj ET Q q 0 0 0 rg BT 183.89 566.10 Td ( company) Tj ET Q q 0 0 0 rg BT 225.83 566.10 Td (s internal control over financial reporting includes those policies and procedures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (that \(1\) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (dispositions of the assets of the company; \(2\) provide reasonable assurance that transactions are recorded as necessary to permit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (expenditures of the company are being made only in accordance with authorizations of management and directors of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (company; and \(3\) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (disposition of the company) Tj ET Q q 0 0 0 rg BT 160.88 494.10 Td (s assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 306.47 494.10 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. ) Tj ET Q q 0 0 0 rg BT 517.70 470.10 Td (Also, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 186.77 458.10 Td (fectiveness to future periods are subject to the risk that controls may become inadequate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (/s/ Ernst & ) Tj ET Q q 0 0 0 rg BT 94.96 410.10 Td (Y) Tj ET Q q 0 0 0 rg BT 101.18 410.10 Td (oung ) Tj ET Q q 0 0 0 rg BT 123.13 410.10 Td (Audit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (Paris-La Dfense, France) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (May1, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.33 386.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (Changes in Internal Contr) Tj ET Q q 0 0 0 rg BT 162.39 339.10 Td (ol Over) Tj ET Q q 0 0 0 rg BT 194.14 339.10 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 322.10 Td (There were no changes in our internal control over financial reporting that occurred during the period covered by this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (annual report that have materially af) Tj ET Q q 0 0 0 rg BT 194.53 310.10 Td (fected, or that are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 398.98 310.10 Td (fect, our internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (reporting.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (Item16A. ) Tj ET Q q 0 0 0 rg BT 93.66 255.10 Td (Audit Committee Financial Expert) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.10 Td (Our Board has determined that Mr) Tj ET Q q 0 0 0 rg BT 210.97 238.10 Td (.de Pesquidoux is an audit committee financial expert as defined by the Securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (Exchange Commission rules and has the requisite financial sophistication under the applicable rules and regulations of the New ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (Y) Tj ET Q q 0 0 0 rg BT 55.72 214.10 Td (ork Stock Exchange. Mr) Tj ET Q q 0 0 0 rg BT 152.92 214.10 Td (.de Pesquidoux is independent as such term is defined in Rule 10A-3\(b\)\(1\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 538.11 214.10 Td (Act ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (and under the listing standards of the New ) Tj ET Q q 0 0 0 rg BT 220.75 202.10 Td (Y) Tj ET Q q 0 0 0 rg BT 226.98 202.10 Td (ork Stock Exchange.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (Item16B. Code of Ethics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 159.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 159.10 Td (e have adopted a Code of Ethics that applies to the Company) Tj ET Q q 0 0 0 rg BT 328.46 159.10 Td (s chief executive of) Tj ET Q q 0 0 0 rg BT 406.30 159.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 424.21 159.10 Td (, chief financial of) Tj ET Q q 0 0 0 rg BT 497.33 159.10 Td (ficer and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 Td (senior financial of) Tj ET Q q 0 0 0 rg BT 122.07 147.10 Td (ficers, including the Company) Tj ET Q q 0 0 0 rg BT 245.93 147.10 Td (s principal accounting of) Tj ET Q q 0 0 0 rg BT 344.89 147.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 362.65 147.10 Td (. ) Tj ET Q q 0 0 0 rg BT 367.47 147.10 Td (W) Tj ET Q q 0 0 0 rg BT 376.11 147.10 Td (e have posted this code on our corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.10 Td (website at http://www) Tj ET Q q 0 0 0 rg BT 137.17 135.10 Td (.sequans.com/investors/corporate-governance/.) Tj ET Q endstream endobj 199 0 obj <> endobj 200 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (96) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Item16C. Principal ) Tj ET Q q 0 0 0 rg BT 135.60 722.25 Td (Accountant Fees and Services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 701.25 Td (Ernst& ) Tj ET Q q 0 0 0 rg BT 107.02 701.25 Td (Y) Tj ET Q q 0 0 0 rg BT 113.24 701.25 Td (oung ) Tj ET Q q 0 0 0 rg BT 135.18 701.25 Td (Audit has served as our independent registered public accounting firm for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.59 701.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.59 701.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.03 701.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.03 701.25 Td (. Our accountants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.25 Td (billed the following fees to us for professional services in each of those fiscal years:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 654.75 351.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 654.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 654.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 654.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 654.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 626.75 351.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 626.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 626.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 626.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 626.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 600.75 351.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 600.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 600.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 600.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 600.75 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 600.75 m 470 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 600.75 m 539 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 587.75 m 470 587.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 585.75 m 470 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 587.75 m 539 587.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 585.75 m 539 585.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.00 670.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.00 670.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 658.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.85 658.83 Td (\(eur) Tj ET Q q 0 0 0 rg BT 450.92 658.83 Td (osinthousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 645.48 Td (Audit Fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 645.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 645.32 Td (529) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.50 645.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 645.32 Td (484) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 631.48 Td (Audit-Related Fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 631.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 631.32 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 617.48 Td (T) Tj ET Q q 0 0 0 rg BT 58.71 617.48 Td (ax Fees) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 617.48 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 617.48 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 604.48 Td (All Other) Tj ET Q q 0 0 0 rg BT 93.14 604.48 Td ( Fees) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 604.48 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 604.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 591.32 Td (T) Tj ET Q q 0 0 0 rg BT 75.91 591.32 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 591.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 591.32 Td (529) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.50 591.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 591.32 Td (484) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 566.25 Td (Audit Fees are the aggregate fees billed for the audit of our annual financial statements. ) Tj ET Q q 0 0 0 rg BT 434.84 566.25 Td (This category also includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (services that generally the independent accountant provides, such as consents, provision of comfort letters, and assistance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (and review of documents filed with the SEC. Audit-Related Fees are the aggregate fees billed for assurance and related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (services that are reasonably related to the performance of the audit and are not reported under ) Tj ET Q q 0 0 0 rg BT 425.44 530.25 Td (Audit Fees. ) Tj ET Q q 0 0 0 rg BT 473.87 530.25 Td (These fees include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (mainly accounting consultations regarding the accounting treatment of matters that occur in the regular course of business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (implications of new accounting pronouncements and other accounting issues that occur from time to time. ) Tj ET Q q 0 0 0 rg BT 476.43 506.25 Td (There were no T) Tj ET Q q 0 0 0 rg BT 546.52 506.25 Td (ax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (Fees or Other Fees billed or paid during 2017 or 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 473.25 Td (Our audit committee has adopted a pre-approval policy for the engagement of our independent accountant to perform ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td (certain audit and non-audit services. Pursuant to this policy) Tj ET Q q 0 0 0 rg BT 285.74 461.25 Td (, which is designed to assure that such engagements do not impair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.25 Td (the independence of our auditors, the audit committee pre-approves annually a catalog of specific audit and non-audit services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (in the categories of audit service, audit-related service and tax services that may be performed by our independent accountants.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (Item16D. Exemptions fr) Tj ET Q q 0 0 0 rg BT 154.86 411.25 Td (om the Listing Standards for) Tj ET Q q 0 0 0 rg BT 278.03 411.25 Td ( ) Tj ET Q q 0 0 0 rg BT 279.97 411.25 Td (Audit Committees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 394.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (Item16E. Pur) Tj ET Q q 0 0 0 rg BT 109.59 368.25 Td (chases of Equity Securities by the Issuer) Tj ET Q q 0 0 0 rg BT 280.52 368.25 Td ( and ) Tj ET Q q 0 0 0 rg BT 301.09 368.25 Td (Affiliated Pur) Tj ET Q q 0 0 0 rg BT 360.07 368.25 Td (chasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 351.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 325.25 Td (Item16F) Tj ET Q q 0 0 0 rg BT 87.18 325.25 Td (. Change in Registrant) Tj ET Q q 0 0 0 rg BT 186.25 325.25 Td (s Certifying ) Tj ET Q q 0 0 0 rg BT 238.47 325.25 Td (Accountant) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 308.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (Item16G. Corporate Governance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 265.25 Td (As a foreign private issuer listed on the NYSE, we are subject to NYSE corporate governance listing standards. However) Tj ET Q q 0 0 0 rg BT 557.96 265.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (NYSE rules permit a foreign private issuer like us to follow the corporate governance practices of its home country) Tj ET Q q 0 0 0 rg BT 509.82 253.25 Td (. Currently) Tj ET Q q 0 0 0 rg BT 552.49 253.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.25 Td (we rely on the NYSE Listed Company Manual with respect to our corporate governance to the extent possible under French ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.25 Td (law) Tj ET Q q 0 0 0 rg BT 63.29 229.25 Td (. ) Tj ET Q q 0 0 0 rg BT 68.11 229.25 Td (The following are the significant ways in which our corporate governance practices dif) Tj ET Q q 0 0 0 rg BT 415.57 229.25 Td (fer from those required for U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (companies listed on the NYSE.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 188.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 188.25 Td (Audit Committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.83 188.25 Td (Our audit committee is responsible for or) Tj ET Q q 0 0 0 rg BT 329.61 188.25 Td (ganizing for selecting our statutory auditors and making a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 176.25 Td (recommendation to our board of directors regarding their chose and terms of compensation. ) Tj ET Q q 0 0 0 rg BT 453.87 176.25 Td (As required by French law) Tj ET Q q 0 0 0 rg BT 559.86 176.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 164.25 Td (the actual appointment of the statutory auditors is made by our shareholders at a general meeting of the shareholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 152.25 Td (According to the ) Tj ET Q q 0 0 0 rg BT 154.25 152.25 Td (Audit Committee Charter) Tj ET Q q 0 0 0 rg BT 256.05 152.25 Td (, our audit committee has the authority to engage advisors and determine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 140.25 Td (appropriate funding for payment of compensation to an independent auditor or other advisors necessary or appropriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 128.25 Td (to aid the committee in carrying out its responsibilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 116.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 116.25 Td (Executive Sessions/Communications with Independent Directors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.80 116.25 Td (French law does not require \(and we do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 104.25 Td (currently provide\) for our independent directors to meet regularly without management, nor does it require the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 92.25 Td (independent directors to meet alone in executive session at least once a year) Tj ET Q q 0 0 0 rg BT 388.32 92.25 Td (. However) Tj ET Q q 0 0 0 rg BT 429.57 92.25 Td (, if our independent directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 80.25 Td (decide to do so, they may do so. In addition, French law does not require \(and we do not currently provide\) a method ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 68.25 Td (for interested parties to communication with our independent directors.) Tj ET Q endstream endobj 201 0 obj <> endobj 202 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 722.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 722.10 Td (Equity Compensation Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.12 722.10 Td (Under French law) Tj ET Q q 0 0 0 rg BT 281.67 722.10 Td (, we must obtain shareholder approval at a general meeting of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 710.10 Td (shareholders in order to adopt an equity compensation plan. Generally) Tj ET Q q 0 0 0 rg BT 365.48 710.10 Td (, the shareholders then delegate to our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 698.10 Td (directors the authority to decide on the specific terms of the granting of equity compensation, within the limits of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 686.10 Td (shareholders) Tj ET Q q 0 0 0 rg BT 138.22 686.10 Td ( authorization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 674.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 85.10 674.10 Td (Corporate Governance Guidelines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.21 674.10 Td (W) Tj ET Q q 0 0 0 rg BT 244.85 674.10 Td (e have adopted a Board Internal Charter as required by French law that sets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 662.10 Td (forth certain corporate governance practices of our board under French law) Tj ET Q q 0 0 0 rg BT 384.87 662.10 Td (. ) Tj ET Q q 0 0 0 rg BT 389.68 662.10 Td (This Board Internal Charter does not cover ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 650.10 Td (all items required by the NYSE Listed Company Manual for U.S. companies listed on the NYSE.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 624.10 Td (Item16H. Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 188.46 624.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 607.10 Td (Not applicable.) Tj ET Q endstream endobj 203 0 obj <> endobj 204 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (98) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.90 722.25 Td (P) Tj ET Q q 0 0 0 rg BT 291.27 722.25 Td (AR) Tj ET Q q 0 0 0 rg BT 305.36 722.25 Td (T) Tj ET Q q 0 0 0 rg BT 311.85 722.25 Td ( III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 696.25 Td (Item17. Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 679.25 Td (See pages F-1 through F-52 of this annual report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (Item18. Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 636.25 Td (Not applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (Item19. Exhibits) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 590.98 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 581.730078125 m 80.869140625 581.730078125 l s q 0 0 0 rg BT 52.50 582.98 Td (Number) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 97.5 581.730078125 m 173.05859375 581.730078125 l s q 0 0 0 rg BT 97.50 582.98 Td (Description of Exhibit) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 567.9833984375 m 70 567.9833984375 l s q 0 0 1 rg BT 52.50 569.32 Td (1.1*) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 568.42 Td (By-laws \() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 136.66 568.42 Td (statuts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.78 568.42 Td (\) of Sequans Communications S.A. ef) Tj ET Q q 0 0 0 rg BT 313.97 568.42 Td (fective December 18, 2018 \(English translation\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 552.9833984375 m 65 552.9833984375 l s q 0 0 1 rg BT 52.50 554.32 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 554.32 Td (Form of Deposit ) Tj ET Q q 0 0 0 rg BT 165.83 554.32 Td (Agreement among Sequans Communications S.A., ) Tj ET Q q 0 0 0 rg BT 371.55 554.32 Td (The Bank of New ) Tj ET Q q 0 0 0 rg BT 445.14 554.32 Td (Y) Tj ET Q q 0 0 0 rg BT 451.68 554.32 Td (ork Mellon and owners) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 544.32 Td (and holders of ) Tj ET Q q 0 0 0 rg BT 156.93 544.32 Td (American Depositary Shares \(incorporated by reference to Exhibit 4.2 to Registration No.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 534.32 Td (333-173001, filed with the SEC on May 2, 2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 517.9833984375 m 65 517.9833984375 l s q 0 0 1 rg BT 52.50 519.32 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 519.32 Td (Form of ) Tj ET Q q 0 0 0 rg BT 132.22 519.32 Td (American Depositary Receipt \(included in Exhibit 2.2\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 502.9833984375 m 76.0986328125 502.9833984375 l s q 0 0 1 rg BT 52.50 504.32 Td (4.1\(a\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 504.32 Td (Stock Option Subscription Plans2008-1, 2009-1, 2009-2, 2010-1, 2010-2, 2010-1-2, 201) Tj ET Q q 0 0 0 rg BT 460.91 504.32 Td (1-1, 201) Tj ET Q q 0 0 0 rg BT 493.87 504.32 Td (1-2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 494.32 Td (\(incorporated by reference to Exhibit 10.1 to Registration No. 333-173001, filed with the SEC on March 22, 201) Tj ET Q q 0 0 0 rg BT 548.05 494.32 Td (1\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 477.9833984375 m 76.66015625 477.9833984375 l s q 0 0 1 rg BT 52.50 479.32 Td (4.1\(b\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 479.32 Td (Stock Option Subscription Plan2012-1 \(incorporated by reference to Exhibit 4.1\(b\) to Sequans Communications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 469.32 Td (S.A.) Tj ET Q q 0 0 0 rg BT 118.34 469.32 Td (s ) Tj ET Q q 0 0 0 rg BT 124.18 469.32 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2012, filed with the SEC on March 29,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 459.32 Td (2013\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 442.9833984375 m 76.0986328125 442.9833984375 l s q 0 0 1 rg BT 52.50 444.32 Td (4.1\(c\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 444.32 Td (Stock Option Subscription Plan2013-1 \(incorporated by reference to Exhibit 4.1\(c\) to Sequans Communications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 434.32 Td (S.A.) Tj ET Q q 0 0 0 rg BT 118.34 434.32 Td (s ) Tj ET Q q 0 0 0 rg BT 124.18 434.32 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2013, filed with the SEC on March 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 424.32 Td (2014\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 407.9833984375 m 76.66015625 407.9833984375 l s q 0 0 1 rg BT 52.50 409.32 Td (4.1\(d\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 409.32 Td (Stock Option Subscription Plan2014-1 \(incorporated by reference to Exhibit 4.1\(d\) to Sequans Communications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 399.32 Td (S.A.) Tj ET Q q 0 0 0 rg BT 118.34 399.32 Td (s ) Tj ET Q q 0 0 0 rg BT 124.18 399.32 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 515.20 399.32 Td (April 21,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 389.32 Td (2015\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 372.9833984375 m 76.0986328125 372.9833984375 l s q 0 0 1 rg BT 52.50 374.32 Td (4.1\(e\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 374.32 Td (Stock Option Subscription Plan2015-1 \(incorporated by reference to Exhibit 4.1\(e\) to Sequans Communications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 364.32 Td (S.A.) Tj ET Q q 0 0 0 rg BT 118.34 364.32 Td (s ) Tj ET Q q 0 0 0 rg BT 124.18 364.32 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 515.20 364.32 Td (April 29,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 354.32 Td (2016\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 337.9833984375 m 74.990234375 337.9833984375 l s q 0 0 1 rg BT 52.50 339.32 Td (4.1\(f\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 339.32 Td (Stock Option Subscription Plan2016-1 \(incorporated by reference to Exhibit 99.1 to Registration No.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 329.32 Td (333-214444, filed with the SEC on November 4, 2016\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 312.9833984375 m 76.66015625 312.9833984375 l s q 0 0 1 rg BT 52.50 314.32 Td (4.1\(g\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 314.32 Td (Stock Option Subscription Plan2017-1 \(incorporated by reference to Exhibit 99.1 to Registration No.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 304.32 Td (333-219430, filed with the SEC on July 24, 2017\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 288.9833984375 m 76.66015625 288.9833984375 l s q 0 0 1 rg BT 52.50 290.32 Td (4.1\(h\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 290.32 Td (Stock Option Subscription Plan2018 \(incorporated by reference to Exhibit 99.1 to Registration No. 333-226458,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 280.32 Td (filed with the SEC on July 31, 2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 261.9833984375 m 76.0986328125 261.9833984375 l s q 0 0 1 rg BT 52.50 263.32 Td (4.2\(a\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 263.32 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 263.32 Td ( Subscription Plans2007-1, 2007-2, 2008-1, 2008-2, 2009-1, 2009-2, 2010-1, 2010-2, 2010-1-2, 2010-2-2,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 253.32 Td (201) Tj ET Q q 0 0 0 rg BT 112.31 253.32 Td (1-1, 201) Tj ET Q q 0 0 0 rg BT 145.27 253.32 Td (1-2 \(incorporated by reference to Exhibit 10.2 to Registration No. 333-173001, filed with the SEC on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 243.32 Td (March 22, 201) Tj ET Q q 0 0 0 rg BT 155.91 243.32 Td (1\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 226.9833984375 m 76.66015625 226.9833984375 l s q 0 0 1 rg BT 52.50 228.32 Td (4.2\(b\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 228.32 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 228.32 Td ( Subscription Plan2012-2 \(incorporated by reference to Exhibit 4.2\(b\) to Sequans Communications S.A.) Tj ET Q q 0 0 0 rg BT 545.77 228.32 Td (s) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 218.32 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2012, filed with the SEC on March 29, 2013\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 201.9833984375 m 76.0986328125 201.9833984375 l s q 0 0 1 rg BT 52.50 203.32 Td (4.2\(c\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 203.32 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 203.32 Td ( 2013-1 \(W) Tj ET Q q 0 0 0 rg BT 162.10 203.32 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 231.39 203.32 Td (Agreement \(incorporated by reference to Exhibit 4.2\(c\) to Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 193.32 Td (Communications S.A.) Tj ET Q q 0 0 0 rg BT 189.17 193.32 Td (s ) Tj ET Q q 0 0 0 rg BT 195.01 193.32 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2013, filed with the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 183.32 Td (SEC on March 31, 2014\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 166.9833984375 m 76.66015625 166.9833984375 l s q 0 0 1 rg BT 52.50 168.32 Td (4.2\(d\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 168.32 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.40 168.32 Td ( Subscription Plan2014-1 \(incorporated by reference to Exhibit 4.2\(d\) to Sequans Communications S.A.) Tj ET Q q 0 0 0 rg BT 545.49 168.32 Td (s) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 158.32 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 488.53 158.32 Td (April 21, 2015\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 141.9833984375 m 65 141.9833984375 l s q 0 0 1 rg BT 52.50 143.32 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 142.42 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.40 142.42 Td ( \(W) Tj ET Q q 0 0 0 rg BT 130.87 142.42 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 200.28 142.42 Td (Agreement, dated January 1) Tj ET Q q 0 0 0 rg BT 312.09 142.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 317.09 146.95 Td (th) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.15 142.42 Td (, 201) Tj ET Q q 0 0 0 rg BT 341.77 142.42 Td (1 \(incorporated by reference to Exhibit 4.4 to Sequans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 132.42 Td (Communications S.A.) Tj ET Q q 0 0 0 rg BT 188.89 132.42 Td (s ) Tj ET Q q 0 0 0 rg BT 194.73 132.42 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 201) Tj ET Q q 0 0 0 rg BT 486.78 132.42 Td (1, filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 122.42 Td (SEC on March 30, 2012\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 106.9833984375 m 65 106.9833984375 l s q 0 0 1 rg BT 52.50 108.32 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 107.42 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.40 107.42 Td ( \(W) Tj ET Q q 0 0 0 rg BT 130.87 107.42 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 200.28 107.42 Td (Agreement, dated January 1) Tj ET Q q 0 0 0 rg BT 312.09 107.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 317.09 111.95 Td (th) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.15 107.42 Td (, 201) Tj ET Q q 0 0 0 rg BT 341.77 107.42 Td (1 \(incorporated by reference to Exhibit 4.5 to Sequans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 97.42 Td (Communications S.A.) Tj ET Q q 0 0 0 rg BT 188.89 97.42 Td (s ) Tj ET Q q 0 0 0 rg BT 194.73 97.42 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 201) Tj ET Q q 0 0 0 rg BT 486.78 97.42 Td (1, filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 87.42 Td (SEC on March 30, 2012\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 71.9833984375 m 65 71.9833984375 l s q 0 0 1 rg BT 52.50 73.32 Td (4.5) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 72.42 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.40 72.42 Td ( \(W) Tj ET Q q 0 0 0 rg BT 130.87 72.42 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 200.28 72.42 Td (Agreement, dated March 8) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 307.46 76.95 Td (th) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.52 72.42 Td (, 201) Tj ET Q q 0 0 0 rg BT 332.15 72.42 Td (1 \(incorporated by reference to Exhibit 4.5 to Sequans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 62.42 Td (Communications S.A.) Tj ET Q q 0 0 0 rg BT 188.89 62.42 Td (s ) Tj ET Q q 0 0 0 rg BT 194.73 62.42 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 201) Tj ET Q q 0 0 0 rg BT 486.78 62.42 Td (1, filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 52.42 Td (SEC on March 30, 2012\)) Tj ET Q endstream endobj 205 0 obj <> endobj 206 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (99) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 719.73 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 710.480078125 m 80.869140625 710.480078125 l s q 0 0 0 rg BT 52.50 711.73 Td (Number) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 97.5 710.480078125 m 173.05859375 710.480078125 l s q 0 0 0 rg BT 97.50 711.73 Td (Description of Exhibit) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 696.7333984375 m 65 696.7333984375 l s q 0 0 1 rg BT 52.50 698.07 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 698.07 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 698.07 Td ( \(W) Tj ET Q q 0 0 0 rg BT 131.27 698.07 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 200.56 698.07 Td (Agreement, dated June 26, 2012 \(6,000 BSA\) \(incorporated by reference to Exhibit 4.6 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 688.07 Td (Sequans Communications S.A.) Tj ET Q q 0 0 0 rg BT 225.00 688.07 Td (s ) Tj ET Q q 0 0 0 rg BT 230.84 688.07 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2012, filed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 678.07 Td (with the SEC on March 29, 2013\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 661.7333984375 m 65 661.7333984375 l s q 0 0 1 rg BT 52.50 663.07 Td (4.7) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 663.07 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 663.07 Td ( \(W) Tj ET Q q 0 0 0 rg BT 131.27 663.07 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 200.56 663.07 Td (Agreement, dated June 26, 2012 \(25,000 BSA\) \(incorporated by reference to Exhibit 4.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 653.07 Td (to Sequans Communications S.A.) Tj ET Q q 0 0 0 rg BT 235.28 653.07 Td (s ) Tj ET Q q 0 0 0 rg BT 241.12 653.07 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2012,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 643.07 Td (filed with the SEC on March 29, 2013\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 626.7333984375 m 65 626.7333984375 l s q 0 0 1 rg BT 52.50 628.07 Td (4.8) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 628.07 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 628.07 Td ( \(W) Tj ET Q q 0 0 0 rg BT 131.27 628.07 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 200.56 628.07 Td (Agreement, dated June 25, 2013 \(incorporated by reference to Exhibit 4.8 to Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 618.07 Td (Communications S.A.) Tj ET Q q 0 0 0 rg BT 189.17 618.07 Td (s ) Tj ET Q q 0 0 0 rg BT 195.01 618.07 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2013, filed with the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 608.07 Td (SEC on March 31, 2014\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 591.7333984375 m 70 591.7333984375 l s q 0 0 1 rg BT 52.50 593.07 Td (4.10) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 593.07 Td (Form of Letter ) Tj ET Q q 0 0 0 rg BT 158.60 593.07 Td (Agreement by and between Sequans Communications S.A. and Board Nominee \(incorporated by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 583.07 Td (reference to Exhibit 10.7 to Registration No. 333-173001\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 566.7333984375 m 69.62890625 566.7333984375 l s q 0 0 1 rg BT 52.50 568.07 Td (4.1) Tj ET Q q 0 0 1 rg BT 64.63 568.07 Td (1) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 568.07 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 568.07 Td ( \(W) Tj ET Q q 0 0 0 rg BT 131.27 568.07 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 200.56 568.07 Td (Agreement, dated June 26, 2014 \(incorporated by reference to Exhibit 4.12 to Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 558.07 Td (Communications S.A.) Tj ET Q q 0 0 0 rg BT 189.17 558.07 Td (s ) Tj ET Q q 0 0 0 rg BT 195.01 558.07 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed with the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 548.07 Td (SEC on ) Tj ET Q q 0 0 0 rg BT 130.56 548.07 Td (April 21, 2015\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 531.7333984375 m 70 531.7333984375 l s q 0 0 1 rg BT 52.50 533.07 Td (4.13) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 533.07 Td (Convertible Note ) Tj ET Q q 0 0 0 rg BT 168.87 533.07 Td (Agreement by and between Sequans Communications S.A. and Nokomis Capital Master Fund,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 523.07 Td (LP) Tj ET Q q 0 0 0 rg BT 108.62 523.07 Td (, dated ) Tj ET Q q 0 0 0 rg BT 136.94 523.07 Td (April 14, 2015 \(incorporated by reference to Exhibit 4.1 to Sequans Communications S.A.) Tj ET Q q 0 0 0 rg BT 501.32 523.07 Td (s Report on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 513.07 Td (Form 6-K filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 228.61 513.07 Td (April 15, 2015\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 496.7333984375 m 70 496.7333984375 l s q 0 0 1 rg BT 52.50 498.07 Td (4.14) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 498.07 Td (Convertible Promissory Note issued by Sequans Communications S.A. to Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 532.30 498.07 Td ( on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 488.07 Td (April 14, 2015 \(incorporated by reference to Exhibit 4.2 to Sequans Communications S.A.) Tj ET Q q 0 0 0 rg BT 462.15 488.07 Td (s Report on Form 6-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 478.07 Td (filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 186.38 478.07 Td (April 15, 2015\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 461.7333984375 m 70 461.7333984375 l s q 0 0 1 rg BT 52.50 463.07 Td (4.15) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 463.07 Td (Loan ) Tj ET Q q 0 0 0 rg BT 120.27 463.07 Td (Agreement by and between Bpifrance Financement and Sequans Communications S.A., dated September 14,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 453.07 Td (2015 \(English translation\) \(incorporated by reference to Exhibit 4.15 to Sequans Communications S.A.'s ) Tj ET Q q 0 0 0 rg BT 517.83 453.07 Td (Annual) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 443.07 Td (Report on Form 20-F for the fiscal year ended December 31, 2015, filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 456.86 443.07 Td (April 29, 2016\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 426.7333984375 m 70 426.7333984375 l s q 0 0 1 rg BT 52.50 428.07 Td (4.16) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 428.07 Td (Interest-Free Innovation Loan ) Tj ET Q q 0 0 0 rg BT 219.68 428.07 Td (Agreement by and between Bpifrance Financement and Sequans Communications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 418.07 Td (S.A., dated ) Tj ET Q q 0 0 0 rg BT 144.16 418.07 Td (August 17, 2015 \(English translation\) \(incorporated by reference to Exhibit 4.16 to Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 408.07 Td (Communications S.A.'s ) Tj ET Q q 0 0 0 rg BT 194.03 408.07 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed with the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 398.07 Td (SEC on ) Tj ET Q q 0 0 0 rg BT 130.56 398.07 Td (April 29, 2016\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 381.7333984375 m 70 381.7333984375 l s q 0 0 1 rg BT 52.50 383.07 Td (4.17) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 383.07 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 383.07 Td ( \(W) Tj ET Q q 0 0 0 rg BT 131.27 383.07 Td (arrants\) Issuance ) Tj ET Q q 0 0 0 rg BT 200.56 383.07 Td (Agreement, dated June 29, 2015 \(incorporated by reference to Exhibit 4.17 to Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 373.07 Td (Communications S.A.'s ) Tj ET Q q 0 0 0 rg BT 194.03 373.07 Td (Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed with the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 363.07 Td (SEC on ) Tj ET Q q 0 0 0 rg BT 130.56 363.07 Td (April 29, 2016\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 346.7333984375 m 70 346.7333984375 l s q 0 0 1 rg BT 52.50 348.07 Td (4.18) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 348.07 Td (Convertible Note ) Tj ET Q q 0 0 0 rg BT 168.87 348.07 Td (Agreement by and between Sequans Communications S.A. and the purchasers signatory thereto,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 338.07 Td (dated ) Tj ET Q q 0 0 0 rg BT 121.38 338.07 Td (April 27, 2016 \(including the Form of Convertible Promissory Note attached thereto as Exhibit B\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 328.07 Td (\(incorporated by reference to Exhibit 4.18 to Sequans Communications S.A.'s ) Tj ET Q q 0 0 0 rg BT 410.91 328.07 Td (Annual Report on Form 20-F for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 318.07 Td (fiscal year ended December 31, 2015, filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 340.21 318.07 Td (April 29, 2016\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 301.7333984375 m 81.0986328125 301.7333984375 l s q 0 0 1 rg BT 52.50 303.07 Td (4.18\(a\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 303.07 Td (Amendment No 1 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 268.02 303.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.55 303.07 Td (April 14, 2015 by and between Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 293.07 Td (Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 343.42 293.07 Td ( dated June 30, 2017 \(incorporated by reference to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 283.07 Td (Exhibit 99.2 to the Form 6-K filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 305.54 283.07 Td (August 1, 2017\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 262.7333984375 m 81.66015625 262.7333984375 l s q 0 0 1 rg BT 52.50 264.07 Td (4.18\(b\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 264.07 Td (Amendment No 1 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 267.75 264.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.28 264.07 Td (April 27, 2016 by and between Sequans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 254.07 Td (Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 343.23 254.07 Td ( dated June 30, 2017 \(incorporated by reference to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 244.07 Td (Exhibit 99.3 to the Form 6-K filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 305.27 244.07 Td (August 1, 2017\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 220.7333984375 m 81.0986328125 220.7333984375 l s q 0 0 1 rg BT 52.50 222.07 Td (4.18\(c\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 222.07 Td (Amendment No 1 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 267.75 222.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.28 222.07 Td (April 27, 2016 by and between Sequans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 212.07 Td (Communications S.A. and Manatuck Hill Scout Fund, LP) Tj ET Q q 0 0 0 rg BT 328.23 212.07 Td ( dated June 30, 2017 \(incorporated by reference to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 202.07 Td (Exhibit 99.4 to the Form 6-K filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 305.27 202.07 Td (August 1, 2017\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 177.7333984375 m 81.66015625 177.7333984375 l s q 0 0 1 rg BT 52.50 179.07 Td (4.18\(d\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 179.07 Td (Amendment No 2 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 268.02 179.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.55 179.07 Td (April 14, 2015 by and between Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 169.07 Td (Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 343.42 169.07 Td ( dated October 30, 2017 \(incorporated by reference to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 159.07 Td (Exhibit 99.2 to the Form 6-K filed with the SEC on October 31, 2017\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 139.7333984375 m 81.0986328125 139.7333984375 l s q 0 0 1 rg BT 52.50 141.07 Td (4.18\(e\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 141.07 Td (Amendment No 2 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 268.02 141.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.55 141.07 Td (April 27, 2016 by and between Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 131.07 Td (Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 343.42 131.07 Td ( dated October 30, 2017 \(incorporated by reference to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 121.07 Td (Exhibit 99.3 to the Form 6-K filed with the SEC on October 31, 2017\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 96.7333984375 m 79.990234375 96.7333984375 l s q 0 0 1 rg BT 52.50 98.07 Td (4.18\(f\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 98.07 Td (Amendment No 2 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 267.75 98.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.28 98.07 Td (April 27, 2016 by and between Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 88.07 Td (Communications S.A. and Manatuck Hill Scout Fund, LP) Tj ET Q q 0 0 0 rg BT 328.23 88.07 Td ( dated October 30, 2017 \(incorporated by reference to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 78.07 Td (Exhibit 99.4 to the Form 6-K filed with the SEC on October 31, 2017\)) Tj ET Q endstream endobj 207 0 obj <> endobj 208 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (100) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 719.73 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 710.480078125 m 80.869140625 710.480078125 l s q 0 0 0 rg BT 52.50 711.73 Td (Number) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 97.5 710.480078125 m 173.05859375 710.480078125 l s q 0 0 0 rg BT 97.50 711.73 Td (Description of Exhibit) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 696.7333984375 m 81.66015625 696.7333984375 l s q 0 0 1 rg BT 52.50 698.07 Td (4.18\(g\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 698.07 Td (Amendment No 3 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 268.02 698.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.55 698.07 Td (April 14, 2015 by and between Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 688.07 Td (Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 343.42 688.07 Td ( dated September 27, 2018 \(incorporated by reference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 678.07 Td (to Exhibit 4.1 to the Form 6-K filed with the SEC on October 30, 2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 660.7333984375 m 81.66015625 660.7333984375 l s q 0 0 1 rg BT 52.50 662.07 Td (4.18\(h\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 662.07 Td (Amendment No 3 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 268.02 662.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.55 662.07 Td (April 27, 2016 by and between Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 652.07 Td (Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 343.42 652.07 Td ( dated September 27, 2018 \(incorporated by reference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 642.07 Td (to Exhibit 4.2 to the Form 6-K filed with the SEC on October 30, 2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 623.7333984375 m 79.4384765625 623.7333984375 l s q 0 0 1 rg BT 52.50 625.07 Td (4.18\(i\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 625.07 Td (Amendment No 4 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 268.02 625.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.55 625.07 Td (April 14, 2015 by and between Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 615.07 Td (Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 343.42 615.07 Td ( dated October 26, 2018 \(incorporated by reference to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 605.07 Td (Exhibit 4.5 to the Form 6-K filed with the SEC on October 30, 2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 585.7333984375 m 79.4384765625 585.7333984375 l s q 0 0 1 rg BT 52.50 587.07 Td (4.18\(j\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 587.07 Td (Amendment No 4 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 267.75 587.07 Td (Agreement dated ) Tj ET Q q 0 0 0 rg BT 338.28 587.07 Td (April 27, 2016 by and between Sequans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 577.07 Td (Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 343.23 577.07 Td ( dated October 26, 2018 \(incorporated by reference to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 567.07 Td (Exhibit 4.6 to the Form 6-K filed with the SEC on October 30, 2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 551.7333984375 m 70 551.7333984375 l s q 0 0 1 rg BT 52.50 553.07 Td (4.19) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 553.07 Td (W) Tj ET Q q 0 0 0 rg BT 106.54 553.07 Td (arrant ) Tj ET Q q 0 0 0 rg BT 131.68 553.07 Td (Agreement by and between Sequans Communications S.A. and Nokomis Capital Master Fund, LP) Tj ET Q q 0 0 0 rg BT 524.96 553.07 Td (, dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 543.07 Td (September 27, 2018 \(incorporated by reference to Exhibit 4.4 to Sequans Communications S.A.) Tj ET Q q 0 0 0 rg BT 483.81 543.07 Td (s Report on Form) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 533.07 Td (6-K filed with the SEC on October 30, 2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 516.7333984375 m 81.0986328125 516.7333984375 l s q 0 0 1 rg BT 52.50 518.07 Td (4.20\(a\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 518.07 Td (Convertible Note ) Tj ET Q q 0 0 0 rg BT 168.87 518.07 Td (Agreement by and between Sequans Communications S.A. and the purchasers signatory thereto,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 508.07 Td (dated September 27, 2018 \(including the Form of Convertible Promissory Note attached thereto as Exhibit B\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 498.07 Td (\(incorporated by reference to Exhibit 4.3 to the Form 6-K filed with the SEC on October 30, 2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 481.7333984375 m 81.66015625 481.7333984375 l s q 0 0 1 rg BT 52.50 483.07 Td (4.20\(b\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 483.07 Td (Amendment No 1 to the Convertible Note ) Tj ET Q q 0 0 0 rg BT 268.02 483.07 Td (Agreement by and between Sequans Communications S.A. and the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 473.07 Td (purchasers signatory thereto, dated October 26, 2018 \(including the Form of Convertible Promissory Note attached) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 463.07 Td (thereto as Exhibit B\) \(incorporated by reference to Exhibit 4.7 to the Form 6-K filed with the SEC on October 30,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 453.07 Td (2018\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 436.7333984375 m 70 436.7333984375 l s q 0 0 1 rg BT 52.50 438.07 Td (4.21) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 438.07 Td (Restricted Share ) Tj ET Q q 0 0 0 rg BT 165.26 438.07 Td (A) Tj ET Q q 0 0 0 rg BT 171.56 438.07 Td (ward Plan 2016-1 \(incorporated by reference to Exhibit 99.2 to Registration No. 333-214444, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 428.07 Td (filed with the SEC on November 4, 2016\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 406.7333984375 m 70 406.7333984375 l s q 0 0 1 rg BT 52.50 408.07 Td (4.22) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 408.07 Td (BSA) Tj ET Q q 0 0 0 rg BT 116.68 408.07 Td ( \(W) Tj ET Q q 0 0 0 rg BT 131.27 408.07 Td (arrants\) Subscription Plan 2016-1 \(incorporated by reference to Exhibit 99.3 to Registration No.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 398.07 Td (333-214444, filed 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211 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 213 m 498 213 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 198 m 498 198 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 196 m 498 196 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 211 m 563 211 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 213 m 563 213 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 198 m 563 198 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 196 m 563 196 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 724.25 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 344.50 724.25 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.60 724.23 Td (Y) Tj ET Q q 0 0 0 rg BT 428.93 724.23 Td (ear) Tj ET Q q 0 0 0 rg BT 439.52 724.23 Td ( ended December) Tj ET Q q 0 0 0 rg BT 498.47 724.23 Td ( 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 711.25 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.50 711.23 Td (Note) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.95 711.23 Td (2016 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 407.95 714.86 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.95 711.23 Td (2017 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 472.95 714.86 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 711.23 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 696.25 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 344.50 696.25 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.40 696.23 Td (\(inthousands,exceptshar) Tj ET Q q 0 0 0 rg BT 468.16 696.23 Td (eandper) Tj ET Q q 0 0 0 rg BT 500.01 696.23 Td (shar) Tj ET Q q 0 0 0 rg BT 516.98 696.23 Td (eamounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 682.57 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 667.57 Td (Product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 666.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.25 666.67 Td (34,581) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 666.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 666.67 Td (37,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 666.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 666.67 Td (28,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 652.57 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.25 651.67 Td (10,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 651.67 Td (10,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 651.67 Td (1) Tj ET Q q 0 0 0 rg BT 536.65 651.67 Td (1,312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 637.57 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 637.57 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.00 636.67 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.25 636.67 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 636.67 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 636.67 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 622.57 Td (Cost of revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 607.57 Td (Cost of product revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.25 606.67 Td (22,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 606.67 Td (24,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 606.67 Td (21,957) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 592.57 Td (Cost of other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.30 591.67 Td (3,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 591.67 Td (2,397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 591.67 Td (2,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 577.57 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 577.57 Td (otal cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 576.67 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.25 576.67 Td (25,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 576.67 Td (27,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 576.67 Td (24,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 562.57 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.25 561.67 Td (19,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 561.67 Td (21,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 561.67 Td (15,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 547.57 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 532.57 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 531.67 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.25 531.67 Td (26,334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 531.67 Td (25,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 531.67 Td (27,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 517.57 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.30 516.67 Td (7,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 516.67 Td (8,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 516.67 Td (9,41) Tj ET Q q 0 0 0 rg BT 554.15 516.67 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 502.57 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.30 501.67 Td (6,267) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 501.67 Td (6,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 501.67 Td (10,085) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 487.57 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 487.57 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 486.67 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.25 486.67 Td (39,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 486.67 Td (40,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 486.67 Td (47,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 472.57 Td (Operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.95 471.67 Td (\(19,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 471.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.95 471.67 Td (\(19,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 471.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 471.72 Td (\(31,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 471.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 457.57 Td (Financial income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 442.57 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 441.67 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.95 441.67 Td (\(3,734) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 441.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.95 441.67 Td (\(4,672) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 441.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 441.72 Td (\(5,447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 441.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 427.57 Td (Interest income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 426.67 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.80 426.67 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 426.67 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 426.67 Td (71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 412.57 Td (Other financial expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 411.67 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.45 411.67 Td (\(83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 411.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 411.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 411.72 Td (\(400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 411.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 397.57 Td (Convertible debt amendments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 396.67 Td (4.1) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 417.80 396.87 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 473.60 396.87 Td (\(322) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 493.80 396.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 396.72 Td (\(265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 396.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 382.57 Td (Change in the fair value of convertible debt embedded derivative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 381.67 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.95 381.67 Td (\(1,583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 381.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 381.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 381.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 367.57 Td (Foreign exchange gain \(loss\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.25 366.67 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.80 366.67 Td (593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.95 366.67 Td (\(1,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 366.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 366.67 Td (366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 352.57 Td (Profit \(Loss\) before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.95 351.67 Td (\(24,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 351.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.95 351.67 Td (\(25,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 351.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 351.72 Td (\(37,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 351.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 337.57 Td (Income tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.00 336.67 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.80 336.67 Td (284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.80 336.67 Td (300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 336.72 Td (\(968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 336.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 322.57 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 321.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.95 321.67 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 321.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 321.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.95 321.67 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 321.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 321.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 321.72 Td (\(36,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 321.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 307.57 Td (Attributable to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 292.57 Td (Shareholders of the parent) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 291.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.95 291.67 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 291.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 291.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.95 291.67 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 291.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 291.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 291.72 Td (\(36,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 291.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 277.57 Td (Non-controlling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.80 276.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 276.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 276.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 262.57 Td (Basic earnings \(loss\) per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.00 261.67 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 261.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.95 261.67 Td (\(0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 261.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 261.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.95 261.67 Td (\(0.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 261.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 261.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.30 261.72 Td (\(0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 261.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 247.57 Td (Diluted earnings \(loss\) per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.00 246.67 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 246.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.95 246.67 Td (\(0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 246.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 246.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.95 246.67 Td (\(0.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 246.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 246.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.30 246.72 Td (\(0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 246.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 232.57 Td (W) Tj ET Q q 0 0 0 rg BT 61.14 232.57 Td (eighted average number of shares used for computing:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 217.57 Td (Basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.75 216.67 Td (63,805,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.75 216.67 Td (77,668,404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.10 216.67 Td (93,767,005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 202.57 Td (Diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.75 201.67 Td (63,805,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.75 201.67 Td (77,668,404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.10 201.67 Td (93,767,005) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 168.90 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 168.90 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 168.90 Td (, prior period amounts have not been restated.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 176.75 142.30 Td (The following notes form an integral part of the annual financial statements) Tj ET Q endstream endobj 221 0 obj <> endobj 222 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 762.10 Td (Sequans Communications S.A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.75 745.10 Td (Consolidated Statements of Compr) Tj ET Q q 0 0 0 rg BT 331.29 745.10 Td (ehensive Income \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 33.60 Td (F-5) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 694.00 361.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 694.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 694.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 694.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 694.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 694.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 665.00 361.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 665.00 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 665.00 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 665.00 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 665.00 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 665.00 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 625.00 361.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 625.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 625.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 625.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 625.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 625.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 585.00 361.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 585.00 48.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 585.00 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 585.00 48.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 585.00 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 585.00 48.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 546.00 361.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 546.00 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 546.00 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 546.00 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 546.00 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 546.00 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 506.00 361.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 506.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 506.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 506.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 506.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 506.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 476.00 361.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 476.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 476.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 476.00 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 476.00 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 476.00 48.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 720 m 459 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 720 m 463 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 720 m 511 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 720 m 515 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 720 m 563 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 720 m 459 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 707 m 459 707 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 720 m 463 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 707 m 463 707 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 720 m 511 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 707 m 511 707 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 720 m 515 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 707 m 515 707 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 720 m 563 720 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 707 m 563 707 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 679 m 459 679 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 679 m 511 679 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 679 m 563 679 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 610 m 459 610 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 610 m 511 610 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 610 m 563 610 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 610 m 459 610 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 610 m 511 610 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 610 m 563 610 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 546 m 459 546 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 546 m 511 546 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 546 m 563 546 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 546 m 459 546 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 521 m 459 521 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 546 m 511 546 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 521 m 511 521 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 546 m 563 546 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 521 m 563 521 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 521 m 459 521 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 506 m 459 506 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 521 m 511 521 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 506 m 511 506 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 521 m 563 521 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 506 m 563 506 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 506 m 459 506 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 492 m 459 492 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 490 m 459 490 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 506 m 511 506 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 492 m 511 492 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 490 m 511 490 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 506 m 563 506 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 492 m 563 492 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 490 m 563 490 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 724.25 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.10 724.23 Td (Y) Tj ET Q q 0 0 0 rg BT 448.43 724.23 Td (ear) Tj ET Q q 0 0 0 rg BT 459.02 724.23 Td ( ended December) Tj ET Q q 0 0 0 rg BT 517.97 724.23 Td ( 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 711.25 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.45 711.23 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 439.45 714.86 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.50 711.23 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.50 711.23 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 698.25 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.15 698.23 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 684.57 Td (Profit \(Loss\) for the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 683.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.30 683.72 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 683.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.50 683.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 683.72 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 683.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 683.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 683.72 Td (\(36,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 683.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 669.73 Td (Other) Tj ET Q q 0 0 0 rg BT 77.87 669.73 Td ( compr) Tj ET Q q 0 0 0 rg BT 107.95 669.73 Td (ehensive income \(loss\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 655.56 Td (Other compr) Tj ET Q q 0 0 0 rg BT 103.70 655.56 Td (ehensive income \(loss\) to be r) Tj ET Q q 0 0 0 rg BT 222.46 655.56 Td (eclassified to pr) Tj ET Q q 0 0 0 rg BT 285.97 655.56 Td (ofit or loss in subsequent) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 645.56 Td (years :) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 630.57 Td (Net gain \(loss\) on cash flow hedge) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.80 629.72 Td (\(91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 629.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 629.67 Td (195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 629.72 Td (\(69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 629.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 615.57 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 123.44 615.57 Td (ferences on translation of foreign operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 614.72 Td (\(375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 614.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 614.67 Td (212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 614.72 Td (\(53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 614.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 600.57 Td (Net other comprehensive income \(loss\) to be reclassified to profit or loss in subsequent) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 590.57 Td (years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 589.72 Td (\(466) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 589.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 589.67 Td (407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 589.72 Td (\(122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 589.67 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 575.56 Td (Other compr) Tj ET Q q 0 0 0 rg BT 103.51 575.56 Td (ehensive income \(loss\) not to be r) Tj ET Q q 0 0 0 rg BT 237.55 575.56 Td (eclassified to pr) Tj ET Q q 0 0 0 rg BT 301.06 575.56 Td (ofit or loss in subsequent) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 565.56 Td (years :) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 551.57 Td (Re-measurement gains \(losses\) on defined benefit plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 550.67 Td (120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 550.72 Td (\(46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 550.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 550.72 Td (\(47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 550.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 536.57 Td (Net other comprehensive income \(loss\) not to be reclassified to profit or loss in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 526.57 Td (subsequent years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 525.67 Td (120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 525.72 Td (\(46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 525.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 525.72 Td (\(47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 525.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 511.57 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 511.57 Td (otal other comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 510.72 Td (\(346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 510.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 510.67 Td (361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 510.72 Td (\(169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 510.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 496.57 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 496.57 Td (otal comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 495.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.30 495.72 Td (\(25,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 495.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.50 495.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 495.72 Td (\(25,799) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 495.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 495.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 495.72 Td (\(36,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 495.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 481.57 Td (Attributable to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 466.57 Td (Shareholders of the parent) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 465.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.30 465.72 Td (\(25,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 465.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.50 465.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 465.72 Td (\(25,799) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 465.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 465.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 465.72 Td (\(36,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 465.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 451.57 Td (Non-controlling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 450.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 450.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 450.67 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 417.90 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 417.90 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 417.90 Td (, prior period amounts have not been restated.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 176.75 391.30 Td (The following notes form an integral part of the annual financial statements) Tj ET Q endstream endobj 223 0 obj <>] /Rotate 0 /Contents 224 0 R>> endobj 224 0 obj <> stream BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 50 772.848046875 m 110.15625 772.848046875 l s q 0 0 1 rg BT 50.00 774.10 Td (T) Tj ET Q q 0 0 1 rg BT 54.60 774.10 Td (able of Contents) Tj ET Q BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 762.10 Td (Sequans Communications S.A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 207.90 745.10 Td (Consolidated Statements of Financial Position) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 33.60 Td (F-6) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 696.00 317.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 696.00 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 696.00 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 696.00 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 696.00 52.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 696.00 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 696.00 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 671.00 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 671.00 30.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 671.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 671.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 671.00 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 671.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 671.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 645.00 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 645.00 30.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 645.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 645.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 645.00 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 645.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 645.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 619.00 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 619.00 30.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 619.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 619.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 619.00 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 619.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 619.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 593.00 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 593.00 30.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 593.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 593.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 593.00 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 593.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 593.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 567.00 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 567.00 30.00 -13.00 re f /GS0 gs 0.8 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0.9333333333333333 1 rg /GS0 gs 449.00 216.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 216.00 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 216.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 216.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 190.00 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 190.00 30.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 190.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 190.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 190.00 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 190.00 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 190.00 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 164.00 317.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 164.00 30.00 -13.00 re f /GS0 gs 0.8 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[] 0 d 0 J 0 j 3 M 449 721 m 453 721 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 721 m 505 721 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 721 m 509 721 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 721 m 562 721 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 708 m 396 708 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 708 m 449 708 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 708 m 453 708 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 708 m 505 708 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 708 m 509 708 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 708 m 562 708 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 619 m 449 619 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 619 m 505 619 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 619 m 562 619 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 619 m 449 619 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 606 m 449 606 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 619 m 505 619 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 606 m 505 606 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 619 m 562 619 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 606 m 562 606 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 489 m 449 489 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 489 m 505 489 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 489 m 562 489 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 489 m 449 489 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 476 m 449 476 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 489 m 505 489 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 476 m 505 476 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 489 m 562 489 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 476 m 562 476 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 476 m 449 476 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 464 m 449 464 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 462 m 449 462 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 476 m 505 476 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 464 m 505 464 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 462 m 505 462 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 476 m 562 476 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 464 m 562 464 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 462 m 562 462 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 359 m 449 359 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 359 m 505 359 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 359 m 562 359 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 359 m 449 359 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 346 m 449 346 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 359 m 505 359 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 346 m 505 346 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 359 m 562 359 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 346 m 562 346 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 255 m 449 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 255 m 505 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 255 m 562 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 255 m 449 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 242 m 449 242 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 255 m 505 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 242 m 505 242 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 255 m 562 255 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 242 m 562 242 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 138 m 449 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 138 m 505 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 138 m 562 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 138 m 449 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 125 m 449 125 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 138 m 505 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 125 m 505 125 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 138 m 562 138 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 125 m 562 125 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 125 m 449 125 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 113 m 449 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 111 m 449 111 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 125 m 505 125 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 113 m 505 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 111 m 505 111 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 125 m 562 125 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 113 m 562 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 111 m 562 111 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 724.95 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.50 724.95 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 725.08 Td (At December) Tj ET Q q 0 0 0 rg BT 495.01 725.08 Td ( 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 712.25 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.50 712.23 Td (Note) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.95 712.23 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 426.95 715.86 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.45 712.23 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 483.45 715.86 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 712.23 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 699.95 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.15 700.08 Td (\(in thousands\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 687.95 Td (ASSETS) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 676.95 Td (Non-current assets:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 662.95 Td (Property) Tj ET Q q 0 0 0 rg BT 96.79 662.95 Td (, plant and equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.80 662.25 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.50 662.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 662.25 Td (6,659) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.50 662.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 662.25 Td (6,992) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 662.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 662.25 Td (6,271) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 649.95 Td (Intangible assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.80 649.25 Td (8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 649.25 Td (7,707) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 649.25 Td (9,562) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 649.25 Td (12,409) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 636.95 Td (Deposits and other receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 636.25 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 636.25 Td (332) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 636.25 Td (402) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 636.25 Td (394) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 623.95 Td (Other non-current financial assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 623.25 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 623.25 Td (310) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 623.25 Td (353) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 623.25 Td (337) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 610.95 Td (T) Tj ET Q q 0 0 0 rg BT 92.11 610.95 Td (otal non-current assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 610.25 Td (15,008) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 610.25 Td (17,309) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 610.25 Td (19,41) Tj ET Q q 0 0 0 rg BT 554.75 610.25 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 597.95 Td (Current assets:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 584.95 Td (Inventories) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.80 584.25 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 584.25 Td (8,693) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 584.25 Td (7,376) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 584.25 Td (8,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 571.95 Td (T) Tj ET Q q 0 0 0 rg BT 74.25 571.95 Td (rade receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 571.25 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 571.25 Td (13,673) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 571.25 Td (17,814) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 571.25 Td (13,177) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 558.95 Td (Contract assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 558.25 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 558.25 Td (1,612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 558.25 Td (3,1) Tj ET Q q 0 0 0 rg BT 493.80 558.25 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 558.25 Td (2,707) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 545.95 Td (Prepaid expenses and other receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 545.25 Td (3,172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 545.25 Td (4,214) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 545.25 Td (3,237) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 532.95 Td (Recoverable value added tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 532.25 Td (470) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 532.25 Td (688) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 532.25 Td (565) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 519.95 Td (Research tax credit receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.80 519.25 Td (4.4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 519.25 Td (1,902) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 519.25 Td (3,248) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 519.25 Td (3,148) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 506.95 Td (Deposit) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 506.25 Td (345) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 506.25 Td (347) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 506.25 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 493.95 Td (Cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 493.25 Td (1) Tj ET Q q 0 0 0 rg BT 388.80 493.25 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 493.25 Td (20,202) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 493.25 Td (2,948) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 493.25 Td (12,086) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 480.95 Td (T) Tj ET Q q 0 0 0 rg BT 92.11 480.95 Td (otal current assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 480.25 Td (50,069) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 480.25 Td (39,747) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 480.25 Td (43,163) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 467.95 Td (T) Tj ET Q q 0 0 0 rg BT 74.11 467.95 Td (otal assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.50 467.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 467.25 Td (65,077) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.50 467.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 467.25 Td (57,056) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 467.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 467.25 Td (62,574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 454.95 Td (EQUITY) Tj ET Q q 0 0 0 rg BT 81.12 454.95 Td ( \(DEFICIT\) ) Tj ET Q q 0 0 0 rg BT 120.74 454.95 Td (AND LIABILITIES) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 443.95 Td (Equity \(deficit\):) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 432.95 Td (Issued capital, euro 0.02 nominal value, 94,732,539 shares issued and outstanding at) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 424.95 Td (December 31, 2018 \(80,024,707 and 75,030,078 at December 31, 2017 and 2016,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 416.95 Td (respectively\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 415.25 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.50 415.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 415.25 Td (1,923) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.50 415.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 415.25 Td (2,031) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 415.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 415.25 Td (2,384) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 402.95 Td (Share premium) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 402.25 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.75 402.25 Td (189,029) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.75 402.25 Td (204,952) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.75 402.25 Td (225,470) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 389.95 Td (Other capital reserves) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 389.25 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 389.25 Td (28,257) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 389.25 Td (33,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 389.25 Td (39,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 376.95 Td (Accumulated deficit) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.10 376.25 Td (\(209,553) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 376.25 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 376.25 Td (\(235,712) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 501.80 376.25 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 530.10 376.25 Td (\(272,036) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 376.25 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 363.95 Td (Other components of equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.10 363.25 Td (\(796) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 363.25 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.10 363.25 Td (\(436) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 501.80 363.25 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 363.25 Td (\(605) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 363.25 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 350.95 Td (T) Tj ET Q q 0 0 0 rg BT 92.11 350.95 Td (otal equity \(deficit\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 350.25 Td (8,860) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 350.25 Td (4,148) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.10 350.25 Td (\(5,019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 350.25 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 337.95 Td (Non-current liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 324.95 Td (Government grant advances and loans) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 324.25 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 324.25 Td (5,144) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 324.25 Td (5,030) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 324.25 Td (5,674) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 311.95 Td (V) Tj ET Q q 0 0 0 rg BT 74.83 311.95 Td (enture debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 311.25 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 311.25 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 311.25 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 311.25 Td (1) Tj ET Q q 0 0 0 rg BT 540.75 311.25 Td (1,81) Tj ET Q q 0 0 0 rg BT 554.75 311.25 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 298.95 Td (Convertible debt and accrued interest) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 298.25 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 298.25 Td (16,338) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 298.25 Td (17,063) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 298.25 Td (19,723) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 285.95 Td (Provisions) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 285.25 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 285.25 Td (1,306) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 285.25 Td (1,532) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 285.25 Td (1,689) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 272.95 Td (Deferred tax liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 272.25 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 272.25 Td (22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 272.25 Td (52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 272.25 Td (691) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 259.95 Td (Deferred revenue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 259.25 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 259.25 Td (1,940) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 259.25 Td (1,293) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 259.25 Td (808) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 246.95 Td (T) Tj ET Q q 0 0 0 rg BT 92.11 246.95 Td (otal non-current liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 246.25 Td (24,750) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 246.25 Td (24,970) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 246.25 Td (40,396) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 233.95 Td (Current liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 220.95 Td (T) Tj ET Q q 0 0 0 rg BT 74.25 220.95 Td (rade payables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 220.25 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 220.25 Td (18,358) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 220.25 Td (13,023) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 220.25 Td (9,412) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 207.95 Td (Interest-bearing financing of receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 207.25 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 207.25 Td (7,712) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 207.25 Td (7,413) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 207.25 Td (10,295) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 194.95 Td (V) Tj ET Q q 0 0 0 rg BT 74.83 194.95 Td (enture debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 194.25 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 194.25 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 194.25 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 194.25 Td (823) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 181.95 Td (Government grant advances and loans) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 181.25 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 181.25 Td (601) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 181.25 Td (1,592) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 181.25 Td (688) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 168.95 Td (Other current liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 168.25 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 168.25 Td (4,415) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 168.25 Td (5,138) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 168.25 Td (4,654) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 155.95 Td (Deferred revenue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 155.25 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 155.25 Td (335) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 155.25 Td (740) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 155.25 Td (973) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 142.95 Td (Provisions) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 142.25 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 142.25 Td (46) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 142.25 Td (32) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 142.25 Td (352) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 129.95 Td (T) Tj ET Q q 0 0 0 rg BT 92.11 129.95 Td (otal current liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 129.25 Td (31,467) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 129.25 Td (27,938) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 129.25 Td (27,197) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 116.95 Td (T) Tj ET Q q 0 0 0 rg BT 91.83 116.95 Td (otal equity and liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.50 116.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.75 116.25 Td (65,077) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.50 116.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 116.25 Td (57,056) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 116.25 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 116.25 Td (62,574) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 83.90 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 83.90 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 83.90 Td (, prior period amounts have not been restated.) 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0 J 0 j 3 M 517 101.60000000000002 m 569 101.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 88.60000000000002 m 569 88.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 573 101.60000000000002 m 622 101.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 573 88.60000000000002 m 622 88.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 626 101.60000000000002 m 697 101.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 626 88.60000000000002 m 697 88.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 701 101.60000000000002 m 743 101.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 701 88.60000000000002 m 743 88.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 75.60000000000002 m 372 75.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 62.60000000000002 m 372 62.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 75.60000000000002 m 416 75.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 62.60000000000002 m 416 62.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 75.60000000000002 m 465 75.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 62.60000000000002 m 465 62.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 75.60000000000002 m 513 75.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 62.60000000000002 m 513 62.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 75.60000000000002 m 569 75.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 62.60000000000002 m 569 62.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 573 75.60000000000002 m 622 75.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 573 62.60000000000002 m 622 62.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 626 75.60000000000002 m 697 75.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 626 62.60000000000002 m 697 62.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 701 75.60000000000002 m 743 75.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 701 62.60000000000002 m 743 62.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 511.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.15 511.68 Td (Attributable to the shar) Tj ET Q q 0 0 0 rg BT 533.18 511.68 Td (eholders of the par) Tj ET Q q 0 0 0 rg BT 597.25 511.68 Td (ent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 493.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.45 493.83 Td (Ordinary shar) Tj ET Q q 0 0 0 rg BT 387.94 493.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.05 480.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 448.35 480.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.25 472.83 Td (pr) Tj ET Q q 0 0 0 rg BT 434.11 472.83 Td (emium) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.35 488.83 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.90 480.83 Td (capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.55 472.83 Td (r) Tj ET Q q 0 0 0 rg BT 479.96 472.83 Td (eserves) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.80 480.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.80 472.83 Td (deficit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 577.00 488.83 Td (Cumulative) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 578.30 480.83 Td (translation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 576.10 472.83 Td (adjustments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 638.30 496.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 651.95 488.83 Td (other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 635.50 480.83 Td (compr) Tj ET Q q 0 0 0 rg BT 657.64 480.83 Td (ehensive) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 638.85 472.83 Td (income \(loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 712.75 488.83 Td (T) Tj ET Q q 0 0 0 rg BT 717.35 488.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 710.80 480.83 Td (equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 708.15 472.83 Td (\(deficit\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 472.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.00 472.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 349.38 472.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.45 472.83 Td (Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 460.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.80 460.68 Td (\(Note 12\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.80 460.68 Td (\(Note12\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.30 460.68 Td (\(Note 12\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.80 460.68 Td (\(Note 13\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 519.50 460.55 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 575.50 460.55 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 628.50 460.55 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 703.50 460.55 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 448.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.40 448.68 Td (\(in thousands, except shar) Tj ET Q q 0 0 0 rg BT 531.16 448.68 Td (e and per) Tj ET Q q 0 0 0 rg BT 563.01 448.68 Td ( shar) Tj ET Q q 0 0 0 rg BT 579.98 448.68 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 435.17 Td (At January 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 435.17 Td (59,166,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.60 435.17 Td (1,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.60 435.17 Td (165,536) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 435.17 Td (16,864) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.30 435.17 Td (\(184,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 435.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 575.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 599.80 435.17 Td (\(152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 618.15 435.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 628.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 674.80 435.17 Td (\(299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.15 435.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 703.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 713.30 435.17 Td (\(1,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 435.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 421.17 Td (Loss for the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 421.17 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 421.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 708.30 421.17 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 421.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 408.17 Td (Re-measurement gains \(losses\) on defined benefit plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 678.15 408.17 Td (120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 724.15 408.17 Td (120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 395.17 Td (Foreign currency translation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 599.80 395.17 Td (\(375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 618.15 395.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 720.80 395.17 Td (\(375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 395.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 382.17 Td (Net loss on cash flow hedge) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 679.80 382.17 Td (\(91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.15 382.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 725.80 382.17 Td (\(91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 382.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 369.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.26 369.17 Td (otal comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 369.17 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 369.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 599.80 369.17 Td (\(375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 618.15 369.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 683.15 369.17 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 708.30 369.17 Td (\(25,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 369.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 356.17 Td (Issue of shares in connection with the exercise of options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 346.17 Td (and warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 347.27 Td (187,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 347.27 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 347.27 Td (275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 724.15 347.27 Td (279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 333.17 Td (Issue of shares in connection with the public of) Tj ET Q q 0 0 0 rg BT 259.25 333.17 Td (fering of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 323.17 Td (September 2016 \(Note 12\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 322.27 Td (15,675,436) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 322.27 Td (351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 322.27 Td (25,514) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 711.60 322.27 Td (25,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 308.17 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 308.17 Td (ransaction costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.30 308.22 Td (\(2,296) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 308.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 713.30 308.17 Td (\(2,296) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 308.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 295.17 Td (Reclassification of embedded derivative of convertible debts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 295.17 Td (10,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 711.60 295.17 Td (10,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 282.17 Td (Share-based payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 282.17 Td (1,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 716.60 282.17 Td (1,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 269.17 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 269.17 Td (75,030,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.60 269.17 Td (1,923) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.60 269.17 Td (189,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 269.17 Td (28,257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.30 269.17 Td (\(209,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 269.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 575.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 599.80 269.17 Td (\(527) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 618.15 269.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 628.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 674.80 269.17 Td (\(270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.15 269.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 703.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 716.60 269.17 Td (8,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 256.17 Td (Loss for the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 256.17 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 256.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 708.30 256.17 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 256.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 243.17 Td (Re-measurement gains \(losses\) on defined benefit plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 679.80 243.17 Td (\(46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.15 243.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 725.80 243.17 Td (\(46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 243.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 230.17 Td (Foreign currency translation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 603.15 230.17 Td (212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 724.15 230.17 Td (212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 217.17 Td (Net gain on cash flow hedge) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 678.15 217.17 Td (195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 724.15 217.17 Td (195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 204.17 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 204.17 Td (otal comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 204.17 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 204.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 603.15 204.17 Td (212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 678.15 204.17 Td (149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 708.30 204.17 Td (\(25,799) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 204.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 191.17 Td (Issue of shares in connection with the exercise of options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 181.17 Td (and warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 181.27 Td (618,871) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 181.27 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 181.27 Td (956) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 724.15 181.27 Td (966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 167.17 Td (Issue of shares in connection with the public of) Tj ET Q q 0 0 0 rg BT 259.25 167.17 Td (fering of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 157.17 Td (June 2017 \(Note 12\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.10 158.27 Td (4,312,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 158.27 Td (96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 158.27 Td (16,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 711.60 158.27 Td (16,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 144.17 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 144.17 Td (ransaction costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.30 144.22 Td (\(1,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 144.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 713.30 144.17 Td (\(1,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 144.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 131.17 Td (Conversion of convertible debt \(Note 12\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 131.17 Td (63,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 131.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 131.17 Td (165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 724.15 131.17 Td (167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 118.17 Td (Convertible debt amendments \(Note 14.1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 118.17 Td (3,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 716.60 118.17 Td (3,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 105.17 Td (Share-based payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 105.17 Td (1,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 716.60 105.17 Td (1,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 92.17 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 92.17 Td (80,024,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.50 92.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.60 92.17 Td (2,031) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 92.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.60 92.17 Td (204,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 92.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 92.17 Td (33,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 92.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.30 92.17 Td (\(235,712) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 92.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 575.50 92.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 599.80 92.17 Td (\(315) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 618.15 92.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 628.50 92.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 674.80 92.17 Td (\(121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.15 92.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 703.50 92.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 716.60 92.17 Td (4,148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 79.17 Td (Ef) Tj ET Q q 0 0 0 rg BT 79.85 79.17 Td (fect of adoption of new accounting standard - IFRS 15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.80 79.17 Td (\(100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 79.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 720.80 79.17 Td (\(100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 79.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 66.17 Td (At December 31, 2017 restated) Tj ET Q BT /F1 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ET q 0 0 0 rg BT 679.80 512.07 Td (\(69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.15 512.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 725.80 512.07 Td (\(69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 512.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 499.07 Td (T) Tj ET Q q 0 0 0 rg BT 93.91 499.07 Td (otal comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 499.07 Td (\(36,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 499.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 604.80 499.07 Td (\(53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 618.15 499.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 674.80 499.07 Td (\(1) Tj ET Q q 0 0 0 rg BT 683.13 499.07 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.15 499.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 708.30 499.07 Td (\(36,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 499.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 486.07 Td (Issue of shares in connection with the exercise of options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 476.07 Td (and warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 476.17 Td (332,832) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 476.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 476.17 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 729.15 476.17 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 462.07 Td (Issue of shares in connection with the public of) Tj ET Q q 0 0 0 rg BT 259.25 462.07 Td (fering of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 452.07 Td (January 2018 \(Note 12\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 451.17 Td (14,375,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 451.17 Td (353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 451.17 Td (22,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 711.60 451.17 Td (23,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 437.07 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 437.07 Td (ransaction costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.30 437.12 Td (\(2,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 437.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 713.30 437.07 Td (\(2,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 437.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 424.07 Td (Issuance of convertible debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 424.07 Td (1,346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 716.60 424.07 Td (1,346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 411.07 Td (Convertible debt amendments \(Note 14.1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 411.07 Td (4,296) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 716.60 411.07 Td (4,296) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 398.07 Td (W) Tj ET Q q 0 0 0 rg BT 79.54 398.07 Td (arrants attached with the venture debt \(Note 14.2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 398.07 Td (819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 724.15 398.07 Td (819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 385.07 Td (Deferred tax ef) Tj ET Q q 0 0 0 rg BT 130.92 385.07 Td (fect of debt instruments with equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 375.07 Td (components \(Note 17\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.30 374.22 Td (\(1,818) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 374.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 713.30 374.17 Td (\(1,818) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 374.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 360.07 Td (Share-based payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 360.07 Td (1,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 716.60 360.07 Td (1,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 347.07 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 347.07 Td (94,732,539) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.50 347.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.60 347.07 Td (2,384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 347.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.60 347.07 Td (225,470) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 347.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 347.07 Td (39,768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 347.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.30 347.07 Td (\(272,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 565.15 347.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 575.50 347.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 599.80 347.07 Td (\(368) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 618.15 347.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 628.50 347.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 674.80 347.07 Td (\(237) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.15 347.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 703.50 347.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 713.30 347.07 Td (\(5,019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 739.15 347.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 8.00 Tf ET q 0 0 0 rg BT 266.75 317.40 Td (The following notes form an integral part of the annual financial statements) Tj ET Q endstream endobj 229 0 obj <>] /Rotate 0 /Contents 230 0 R>> endobj 230 0 obj <> stream BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 50 772.848046875 m 110.15625 772.848046875 l s q 0 0 1 rg BT 50.00 774.10 Td (T) Tj ET Q q 0 0 1 rg BT 54.60 774.10 Td (able of Contents) Tj ET Q BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 762.10 Td (Sequans Communications S.A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.75 745.10 Td (Consolidated Statements of Cash Flow) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 33.60 Td (F-9) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 692.50 312.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 692.50 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 692.50 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 692.50 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 692.50 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 664.50 312.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 664.50 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 664.50 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 664.50 52.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 664.50 52.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 664.50 53.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 634.50 312.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 634.50 40.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 634.50 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 634.50 52.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 634.50 52.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 634.50 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 612.50 312.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 612.50 40.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 612.50 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 612.50 52.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 612.50 52.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 612.50 53.00 -11.00 re f /GS0 gs 0.8 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0.9333333333333333 1 rg /GS0 gs 401.00 168.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 168.50 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 168.50 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 168.50 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 142.50 312.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 142.50 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 142.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 142.50 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 142.50 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 142.50 53.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 716.5 m 457 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 716.5 m 509 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 716.5 m 562 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 704.5 m 401 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 716.5 m 457 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 704.5 m 457 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 716.5 m 509 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 704.5 m 509 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 716.5 m 562 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 704.5 m 562 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 436.5 m 457 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 436.5 m 509 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 436.5 m 562 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 436.5 m 457 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 423.5 m 457 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 436.5 m 509 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 423.5 m 509 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 436.5 m 562 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 423.5 m 562 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 345.5 m 457 345.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 345.5 m 509 345.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 345.5 m 562 345.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 345.5 m 457 345.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 332.5 m 457 332.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 345.5 m 509 345.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 332.5 m 509 332.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 345.5 m 562 345.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 332.5 m 562 332.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 181.5 m 457 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 181.5 m 509 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 181.5 m 562 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 181.5 m 457 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 168.5 m 457 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 181.5 m 509 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 168.5 m 509 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 181.5 m 562 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 168.5 m 562 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 168.5 m 457 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 168.5 m 509 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 168.5 m 562 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 129.5 m 457 129.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 129.5 m 509 129.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 129.5 m 562 129.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 129.5 m 457 129.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 117.5 m 457 117.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 115.5 m 457 115.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 129.5 m 509 129.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 117.5 m 509 117.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 115.5 m 509 115.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 129.5 m 562 129.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 117.5 m 562 117.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 115.5 m 562 115.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 720.45 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.50 720.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.60 720.58 Td (Y) Tj ET Q q 0 0 0 rg BT 444.93 720.58 Td (ear) Tj ET Q q 0 0 0 rg BT 455.52 720.58 Td ( ended December) Tj ET Q q 0 0 0 rg BT 514.47 720.58 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 708.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.50 708.58 Td (Note) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.45 708.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 435.45 712.21 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.45 708.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 487.45 712.21 Td (\(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 708.58 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 696.45 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.50 696.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.65 696.58 Td (\(in thousands\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 684.45 Td (Operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 670.45 Td (Profit \(Loss\) before income taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 668.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.10 668.75 Td (\(24,503) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 668.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.50 668.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.10 668.75 Td (\(25,860) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 668.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 668.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.10 668.75 Td (\(37,192) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 668.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 656.45 Td (Non-cash adjustment to reconcile income \(loss\) before tax to net cash used in operating) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 648.45 Td (activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 637.45 Td (Amortization and impairment of property) Tj ET Q q 0 0 0 rg BT 220.09 637.45 Td (, plant and equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 637.45 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 637.45 Td (3,080) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 637.45 Td (2,760) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 637.45 Td (3,060) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 626.45 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 626.45 Td (8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 626.45 Td (2,215) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 626.45 Td (2,815) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 626.45 Td (3,103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 615.45 Td (Share-based payment expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.75 615.45 Td (4.3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 615.45 Td (1,122) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 615.45 Td (1,638) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 615.45 Td (1,812) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 604.45 Td (Increase \(Decrease\) in provisions) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.10 604.45 Td (\(240) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 604.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 604.45 Td (165) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 604.45 Td (431) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 593.45 Td (Interest expense, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 593.45 Td (3,686) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 593.45 Td (4,612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 593.45 Td (5,376) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 582.45 Td (Convertible debt amendments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.75 582.45 Td (14.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 582.45 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 582.45 Td (322) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 582.45 Td (265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 571.45 Td (Change in fair value of convertible debt embedded derivative) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.75 571.45 Td (14.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 571.45 Td (1,583) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 571.45 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 571.45 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 560.45 Td (Other financial expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 560.45 Td (83) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 560.45 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 560.45 Td (400) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 549.45 Td (Foreign exchange loss \(gain\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.10 549.45 Td (\(18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 549.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 549.45 Td (561) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 549.45 Td (\(497) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 549.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 538.45 Td (Loss on disposal of property) Tj ET Q q 0 0 0 rg BT 178.34 538.45 Td (, plant and equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.80 538.45 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 538.45 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 538.45 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 527.45 Td (Bad debt expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 527.45 Td (40) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 527.45 Td (183) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 527.45 Td (1,782) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 516.45 Td (W) Tj ET Q q 0 0 0 rg BT 76.73 516.45 Td (orking capital adjustments:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 505.45 Td (Decrease \(Increase\) in trade receivables and other receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 505.45 Td (665) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.10 505.45 Td (\(7,267) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 505.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 505.45 Td (4,003) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 494.45 Td (Decrease \(Increase\) in inventories) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.10 494.45 Td (\(4,628) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 494.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 494.45 Td (1,317) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 494.45 Td (\(867) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 494.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 483.45 Td (Decrease \(Increase\) in research tax credit receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 483.45 Td (963) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.10 483.45 Td (\(1,087) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 483.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 483.45 Td (559) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 472.45 Td (Increase \(Decrease\) in trade payables and other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 472.45 Td (2,354) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.10 472.45 Td (\(5,939) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 472.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.10 472.45 Td (\(3,899) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 472.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 461.45 Td (Increase \(Decrease\) in deferred revenue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.10 461.45 Td (\(737) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 461.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.10 461.45 Td (\(242) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 461.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 461.45 Td (\(252) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 461.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.50 450.45 Td (Decrease in government grant advances) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.10 450.45 Td (\(1,030) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 450.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.10 450.45 Td (\(2,271) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 450.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 450.45 Td (\(857) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 450.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 439.45 Td (Income tax paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.10 439.45 Td (\(226) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 439.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.10 439.45 Td (\(333) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 439.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 439.45 Td (\(78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 439.45 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 428.45 Td (Net cash flow used in operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 427.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.10 427.75 Td (\(15,589) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 427.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.50 427.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.10 427.75 Td (\(28,626) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 427.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 427.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.10 427.75 Td (\(22,838) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 427.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 415.45 Td (Investing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 402.45 Td (Purchase of intangible assets and property) Tj ET Q q 0 0 0 rg BT 204.09 402.45 Td (, plant and equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.80 401.75 Td (7-8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 401.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.10 401.75 Td (\(5,368) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 401.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.50 401.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.10 401.75 Td (\(4,232) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 401.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 401.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.10 401.75 Td (\(5,373) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 401.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 389.45 Td (Capitalized development expenditures) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.10 388.75 Td (\(22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 388.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.10 388.75 Td (\(2,190) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 388.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.10 388.75 Td (\(3,835) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 388.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 376.45 Td (Sale \(Purchase\) of financial assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 375.75 Td (24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.10 375.75 Td (\(1) Tj ET Q q 0 0 0 rg BT 497.76 375.75 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 375.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 375.75 Td (24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 363.45 Td (Decrease \(Increase\) of short-term deposit) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 362.75 Td (48) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.10 362.75 Td (\(2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 362.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 362.75 Td (347) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 350.45 Td (Interest received) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 349.75 Td (48) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 349.75 Td (60) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 349.75 Td (71) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 337.45 Td (Net cash flow used in investments activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 336.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.10 336.75 Td (\(5,270) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 336.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.50 336.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.10 336.75 Td (\(6,477) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 336.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 336.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.10 336.75 Td (\(8,766) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 336.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 324.45 Td (Financing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 311.45 Td (Public equity of) Tj ET Q q 0 0 0 rg BT 120.53 311.45 Td (fering proceeds, net of transaction costs paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 310.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.75 310.75 Td (23,569) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.50 310.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.75 310.75 Td (14,898) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 310.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 310.75 Td (20,841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 298.45 Td (Proceeds from issue of warrants and exercise of stock options/warrants, net of transaction) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 290.45 Td (costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 289.75 Td (279) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 289.75 Td (966) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 289.75 Td (30) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 277.45 Td (Proceeds \(repayment of\) from interest-bearing receivables financing) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.75 276.75 Td (14.3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 276.75 Td (1,240) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.10 276.75 Td (\(299) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 276.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 276.75 Td (2,882) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 264.45 Td (Proceeds from interest-bearing research project financing) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.75 263.75 Td (15.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 263.75 Td (1,021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 263.75 Td (2,716) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 263.75 Td (1,574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 251.45 Td (Proceeds from issuance of venture debt, net of transaction cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 250.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 250.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 250.75 Td (13,595) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 238.45 Td (Proceeds from convertible debt, net of transaction cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.75 237.75 Td (14.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 237.75 Td (6,932) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 237.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 237.75 Td (4,388) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 225.45 Td (Repayment of government loans) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.75 224.75 Td (15.3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 224.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.10 224.75 Td (\(1) Tj ET Q q 0 0 0 rg BT 497.76 224.75 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 224.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 224.75 Td (\(589) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 224.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 212.45 Td (Repayment of convertible debt and accrued expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.80 211.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 211.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.10 211.75 Td (\(1,186) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 211.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 199.45 Td (Repayment of borrowings and finance lease liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.10 198.75 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 198.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 198.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 198.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 186.45 Td (Interest paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.10 185.75 Td (\(251) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 185.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.10 185.75 Td (\(327) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 185.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 185.75 Td (\(791) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 185.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 173.45 Td (Net cash flows from financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 172.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.75 172.75 Td (32,778) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.50 172.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.75 172.75 Td (17,838) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 172.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 172.75 Td (40,744) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 160.45 Td (Net increase \(decrease\) in cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.75 159.75 Td (1) Tj ET Q q 0 0 0 rg BT 435.75 159.75 Td (1,919) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.10 159.75 Td (\(17,265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 159.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 159.75 Td (9,140) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 147.45 Td (Net foreign exchange dif) Tj ET Q q 0 0 0 rg BT 149.17 147.45 Td (ference) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.10 146.75 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 146.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 146.75 Td (1) Tj ET Q q 0 0 0 rg BT 501.80 146.75 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.10 146.75 Td (\(2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 146.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 134.45 Td (Cash and cash equivalent at January1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 133.75 Td (8,288) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.75 133.75 Td (20,202) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 133.75 Td (2,948) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 121.45 Td (Cash and cash equivalents at period end) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.75 120.75 Td (1) Tj ET Q q 0 0 0 rg BT 393.75 120.75 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 120.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.75 120.75 Td (20,202) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.50 120.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 120.75 Td (2,948) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 120.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.75 120.75 Td (12,086) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 88.40 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 88.40 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 88.40 Td (, prior period amounts have not been restated.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 176.75 69.20 Td (The following notes form an integral part of the annual financial statements) Tj ET Q endstream endobj 231 0 obj <>] /Rotate 0 /Contents 232 0 R>> endobj 232 0 obj <> stream BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 50 772.848046875 m 110.15625 772.848046875 l s q 0 0 1 rg BT 50.00 774.10 Td (T) Tj ET Q q 0 0 1 rg BT 54.60 774.10 Td (able of Contents) Tj ET Q BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 762.10 Td (Sequans Communications S.A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.30 750.10 Td (Notes to the Consolidated Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 701.25 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 701.25 Td (. Corporate information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.25 Td (Sequans Communications S.A. \(Sequans\) is or) Tj ET Q q 0 0 0 rg BT 245.13 680.25 Td (ganized as a limited liability company \() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 407.85 680.25 Td (socit anonyme) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.22 680.25 Td (\) incorporated and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.25 Td (domiciled in the Republic of France, with its principal place of business at 15-55 boulevard Charles de Gaulle, 92700 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.25 Td (Colombes, France. Sequans, together with its subsidiaries \(the Company\), is a fabless designer) Tj ET Q q 0 0 0 rg BT 436.79 656.25 Td (, developer and supplier of 4G ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.25 Td (semiconductor solutions for wireless broadband applications. ) Tj ET Q q 0 0 0 rg BT 296.77 644.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 356.48 644.25 Td (s semiconductor solutions incorporate baseband ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (processor and radio frequency transceiver integrated circuits along with its proprietary signal processing techniques, algorithms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.25 Td (and software stacks.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 599.25 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 599.25 Td (. Summary of significant accounting and r) Tj ET Q q 0 0 0 rg BT 234.05 599.25 Td (eporting policies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (2.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 578.25 Td (. Basis of pr) Tj ET Q q 0 0 0 rg BT 112.38 578.25 Td (eparation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.25 Td (The Consolidated Financial Statements are presented in U.S. dollars.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (These Consolidated Financial Statements for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.21 536.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.79 536.25 Td ( have been prepared on a going concern ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (assumption. ) Tj ET Q q 0 0 0 rg BT 99.88 524.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 159.59 524.25 Td (s internal cash forecast is built from sales forecasts by products and by customer and assumes a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (stable operating cost structure. ) Tj ET Q q 0 0 0 rg BT 174.00 512.25 Td (T) Tj ET Q q 0 0 0 rg BT 179.41 512.25 Td (aking into account forecasted operating cash flow) Tj ET Q q 0 0 0 rg BT 377.58 512.25 Td (, government funding of research programs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (and proceeds from expected financing activities \(from institutional or strategic investors, or from the capital markets\),) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.29 500.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (management believes that Company) Tj ET Q q 0 0 0 rg BT 197.51 488.25 Td (s existing cash and cash equivalents plus cash generated from these activities will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 476.25 Td (ficient at least for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 476.25 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.00 476.25 Td ( months following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.84 476.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.42 476.25 Td (. ) Tj ET Q q 0 0 0 rg BT 317.87 476.25 Td (As disclosed in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.42 476.25 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.42 476.25 Td (, "Events after the reporting date", ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (the Company raised net proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.56 464.25 Td ($8.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.46 464.25 Td ( from a strategic investor in February 2019, and on ) Tj ET Q q 0 0 0 rg BT 452.19 464.25 Td (April 30, 2019, Nokomis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (Capital, L.L.C. issued a firm commitment to purchase a new convertible note for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.74 452.25 Td ($3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.13 452.25 Td ( and Dr) Tj ET Q q 0 0 0 rg BT 448.57 452.25 Td (. Geor) Tj ET Q q 0 0 0 rg BT 473.38 452.25 Td (ges Karam issued a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (commitment to loan up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.32 440.25 Td ($700,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.82 440.25 Td (, if the Company needs additional liquidity) Tj ET Q q 0 0 0 rg BT 363.53 440.25 Td (. Should these net proceeds and other existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (sources of financing not be suf) Tj ET Q q 0 0 0 rg BT 172.34 428.25 Td (ficient to fund operating activities, the Company expects to be able to obtain additional funding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (through one or more possible licenses, business partnerships or other similar arrangements, equity of) Tj ET Q q 0 0 0 rg BT 452.28 416.25 Td (ferings, debt financing, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (a combination of the above. ) Tj ET Q q 0 0 0 rg BT 163.17 404.25 Td (The Company cannot guarantee if or when any such transactions will occur or whether they will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (on satisfactory terms. ) Tj ET Q q 0 0 0 rg BT 137.63 392.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 197.34 392.25 Td (s failure to raise financing as and when needed could have a negative impact on its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (financial condition and its ability to pursue its business strategies. If adequate funds are not available, the Company may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (required to reduce its current level of expenses and investments. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 347.25 Td (Statement of compliance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (The Consolidated Financial Statements of the Company have been prepared in accordance with International Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (Reporting Standards \(IFRS\) as issued by the International ) Tj ET Q q 0 0 0 rg BT 291.68 314.25 Td (Accounting Standard Board \(IASB\) and whose application is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (mandatory for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.72 302.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.31 302.25 Td (. Comparative figures are presented for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.41 302.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.99 302.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.43 302.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.43 302.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.25 Td (The accounting policies are consistent with those of the same period of the previous financial year) Tj ET Q q 0 0 0 rg BT 442.02 281.25 Td (, except for the changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.25 Td (disclosed in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.43 269.25 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.93 269.25 Td ( to the Consolidated Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (The Consolidated Financial Statements of the Company for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.70 248.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.28 248.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.28 248.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.28 248.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.72 248.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.72 248.25 Td ( have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (authorized for issue in accordance with a resolution of the board of directors on ) Tj ET Q q 0 0 0 rg BT 369.39 236.25 Td (April 23, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.00 236.25 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 236.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (Basis of consolidation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (The Consolidated Financial Statements comprise the financial statements of Sequans Communications S.A., which is the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (ultimate parent of the group, and its subsidiaries and for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.53 182.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.11 182.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.11 182.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.11 182.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.55 182.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.55 182.25 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 134.75 276.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 134.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 134.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.00 134.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.00 134.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 134.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 134.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 106.75 276.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 106.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 106.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.00 106.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.00 106.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 106.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 106.75 75.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 134.75 m 404 134.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 134.75 m 483 134.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 134.75 m 562 134.75 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 51.5 137.73007812499998 m 71.4921875 137.73007812499998 l s q 0 0 0 rg BT 51.50 138.98 Td (Name) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 348.10 146.98 Td (Country of) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 343.30 138.98 Td (incorporation) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 433.30 146.98 Td (Y) Tj ET Q q 0 0 0 rg BT 437.30 146.98 Td (ear of) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 422.30 138.98 Td (incorporation) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 520.65 154.83 Td (%) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 514.00 146.83 Td (equity) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 511.75 138.83 Td (interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 125.32 Td (Sequans Communications Ltd.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.50 125.32 Td (UnitedKingdom) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 125.32 Td (2005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 125.32 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 111.32 Td (Sequans Communications Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.50 111.32 Td (United States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 111.32 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 111.32 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 97.32 Td (Sequans Communications Ltd. Pte.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.50 97.32 Td (Singapore) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 97.32 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 97.32 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 83.32 Td (Sequans Communications Israel \(2009\) Ltd.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.50 83.32 Td (Israel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 83.32 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 83.32 Td (100) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 233 0 obj <> endobj 234 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.70 33.60 Td (F-1) Tj ET Q q 0 0 0 rg BT 310.22 33.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (The financial statements of the subsidiaries are prepared for the same reporting period as the parent company) Tj ET Q q 0 0 0 rg BT 485.35 722.10 Td (, using consistent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (accounting policies. ) Tj ET Q q 0 0 0 rg BT 131.42 710.10 Td (All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (group transactions are eliminated in full. ) Tj ET Q q 0 0 0 rg BT 213.99 698.10 Td (The subsidiaries have been fully consolidated from their date of incorporation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (2.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 665.10 Td (. Changes in accounting policy and disclosur) Tj ET Q q 0 0 0 rg BT 251.02 665.10 Td (es) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (New and amended standards and interpretations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (The accounting policies used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.63 620.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.63 620.10 Td ( are consistent with those of the previous financial year) Tj ET Q q 0 0 0 rg BT 418.99 620.10 Td (, except for the following new and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (amended IFRS and IFRIC interpretations ef) Tj ET Q q 0 0 0 rg BT 224.56 608.10 Td (fective as of January1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.52 608.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.52 608.10 Td (:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 587.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 587.10 Td (IFRS 15 Revenue fr) Tj ET Q q 0 0 0 rg BT 163.71 587.10 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 570.60 Td (IFRS 15 was issued in May 2014 and establishes a five-step model to account for revenue arising from contracts with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 558.60 Td (customers and requires that revenue be recognized at an amount that reflects the consideration to which an entity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 546.60 Td (expects to be entitled in exchange for transferring goods or services to a customer) Tj ET Q q 0 0 0 rg BT 411.78 546.60 Td (. ) Tj ET Q q 0 0 0 rg BT 416.60 546.60 Td (The principles in IFRS 15 provide a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 534.60 Td (more structured approach to measuring and recognizing revenue. ) Tj ET Q q 0 0 0 rg BT 347.72 534.60 Td (The new revenue standard is applicable to all entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 522.60 Td (and supersedes IAS 1) Tj ET Q q 0 0 0 rg BT 171.50 522.60 Td (1 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 179.00 522.60 Td (Construction Contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.18 522.60 Td (, IAS 18 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 309.29 522.60 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.15 522.60 Td ( and related interpretations. ) Tj ET Q q 0 0 0 rg BT 454.87 522.60 Td (The Company applies the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 510.60 Td (five-step approach in determining the amount and timing of revenue to be recognized: \(1\) identifying the contract with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 498.60 Td (a customer; \(2\) identifying the performance obligations in the contract; \(3\) determining the transaction price; \(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 486.60 Td (allocating the transaction price to the performance obligations in the contract; and \(5\) recognizing revenue when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 474.60 Td (performance obligation is satisfied. ) Tj ET Q q 0 0 0 rg BT 228.89 474.60 Td (The standard also includes additional disclosure requirements, which we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 462.60 Td (included within the footnotes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 438.60 Td (The Company adopted IFRS 15 using the modified retrospective method applying the guidance to all open contracts at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 426.60 Td (January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 153.92 426.60 Td (The analysis was based on the identification of revenue streams presented in financial statements : ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 414.60 Td (product revenues \(direct sales or through a distributor\) and other revenues \(sales of licenses, maintenance or services\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 402.60 Td (The ef) Tj ET Q q 0 0 0 rg BT 111.13 402.60 Td (fect of adopting IFRS 15 was limited to a change in the accounting for one contract where the timing of revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 390.60 Td (recognition was determined to be point in time under IFRS 15 rather than over time based on the pattern of transfer of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 378.60 Td (control to the customer) Tj ET Q q 0 0 0 rg BT 177.42 378.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 354.60 Td (The Company recognized the cumulative ef) Tj ET Q q 0 0 0 rg BT 260.53 354.60 Td (fect adjustment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.23 354.60 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.12 354.60 Td ( to increase accumulated deficit and reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 342.60 Td (contract assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 321.60 Td (The comparative financial information has not been restated and continues to be presented under the accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 309.60 Td (standards in ef) Tj ET Q q 0 0 0 rg BT 143.63 309.60 Td (fect for the respective periods except that we have reclassified prior years) Tj ET Q q 0 0 0 rg BT 440.25 309.60 Td ( contract assets out of trade ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 297.60 Td (receivables to conform to 2018 presentation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 276.60 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 276.60 Td (IFRS 9 - Financial Instruments: Classification and Measur) Tj ET Q q 0 0 0 rg BT 322.05 276.60 Td (ement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 255.60 Td (In July 2014, the IASB issued IFRS 9 \(Financial Instruments\). IFRS 9 introduces a new classification and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 243.60 Td (measurement model of financial assets and liabilities and sets new hedge accounting requirements. It also provides a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 231.60 Td (new expected loss model for impairment of financial assets \(versus the incurred losses historical approach\), which is in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 219.60 Td (particular applicable to trade receivables. ) Tj ET Q q 0 0 0 rg BT 252.45 219.60 Td (The Company has performed an analysis on historical uncollectible amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 207.60 Td (and determined that these were lar) Tj ET Q q 0 0 0 rg BT 222.76 207.60 Td (gely a result of account-specific factors and not a result of actual or expected general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 195.60 Td (default conditions or indicators. ) Tj ET Q q 0 0 0 rg BT 215.01 195.60 Td (The Company performed this analysis using internal historical information on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 183.60 Td (nature of the impairment and expectations around the collectibilty of aged receivables currently held, considering both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 171.60 Td (account-specific and macroeconomic factors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 150.60 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 150.60 Td (Amendments to IFRS2: Classification and measur) Tj ET Q q 0 0 0 rg BT 285.39 150.60 Td (ement of shar) Tj ET Q q 0 0 0 rg BT 339.46 150.60 Td (e-based payment transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 129.60 Td (The amendments clarify how to account for certain types of share-based payment transactions. ) Tj ET Q q 0 0 0 rg BT 466.29 129.60 Td (The amendments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 117.60 Td (provide requirements on the accounting for the ef) Tj ET Q q 0 0 0 rg BT 283.30 117.60 Td (fects of vesting and non-vesting conditions on the measurement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 105.60 Td (cash-settled share-based payments, share-based transactions with a net settlement feature for withholding tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 93.60 Td (obligations, and a modification to the terms and conditions of a share-based payment that changes the classification of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 81.60 Td (the transaction from cash-settled to equity settled. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 60.60 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 60.60 Td (Annual Impr) Tj ET Q q 0 0 0 rg BT 135.96 60.60 Td (ovements to IFRS \(2014-2016\)) Tj ET Q endstream endobj 235 0 obj <> endobj 236 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 722.10 Td (These include improvements to IAS 28: Investments in associates and joint ventures.) Tj ET Q endstream endobj 237 0 obj <> endobj 238 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 701.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 701.10 Td (IFRIC 22 For) Tj ET Q q 0 0 0 rg BT 140.68 701.10 Td (eign Curr) Tj ET Q q 0 0 0 rg BT 179.47 701.10 Td (ency T) Tj ET Q q 0 0 0 rg BT 205.30 701.10 Td (ransactions and ) Tj ET Q q 0 0 0 rg BT 271.79 701.10 Td (Advance Considerations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 680.10 Td (IFRIC Interpretation 22 addresses the exchange rate to use in transactions that involve advance considerations paid or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 668.10 Td (received in a foreign currency) Tj ET Q q 0 0 0 rg BT 204.78 668.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (Except for IFRS 15, and IFRS 9 for disclosure purposes, the adoption of these new standard and interpretations had no impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (on the Company's financial statements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (Standards issued but not yet ef) Tj ET Q q 0 0 0 rg BT 175.17 611.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (Standards and interpretations issued but not yet ef) Tj ET Q q 0 0 0 rg BT 249.00 590.10 Td (fective up to the date of issue of the Company) Tj ET Q q 0 0 0 rg BT 435.89 590.10 Td (s Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (Statements are listed below) Tj ET Q q 0 0 0 rg BT 158.54 578.10 Td (. ) Tj ET Q q 0 0 0 rg BT 163.36 578.10 Td (The Company intends to adopt these standards when they become ef) Tj ET Q q 0 0 0 rg BT 437.55 578.10 Td (fective:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 557.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 557.10 Td (IFRS 16 - Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 540.60 Td (In January 2016, the IASB issued IFRS 16 \(Leases\), which aligns the accounting treatment of operating leases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 528.60 Td (lessees with that already applied to finance leases \(i.e. recognition in the balance sheet of a liability for future lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 516.60 Td (payments, and of an asset for the Sequans Communications S.A. associated rights of use\). ) Tj ET Q q 0 0 0 rg BT 447.10 516.60 Td (Application of IFRS 16 will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 504.60 Td (also require a change in the presentation of lease expenses both in the income statement \(i.e. depreciation and interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 492.60 Td (expense\) and in the statement of cash flows \(the amount allocated to repayment of the liability will be reported as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 480.60 Td (cash outflow from financing activities\). IFRS 16 is applicable for annual reporting periods beginning on or after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 468.60 Td (January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 153.92 468.60 Td (The Company is currently assessing the impacts of IFRS 16 and intends to apply the modified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 456.60 Td (retrospective application approach. Under the modified retrospective application approach, the Company will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 444.60 Td (recognize a lease liability at January 1, 2019 for leases previously classified as operating leases applying IAS 17 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 432.60 Td (IFRIC 4 and will measure lease liabilities at the present value of the remaining lease payments, discounted using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 420.60 Td (Company) Tj ET Q q 0 0 0 rg BT 127.17 420.60 Td (s incremental borrowing rate at the date of initial application. ) Tj ET Q q 0 0 0 rg BT 374.40 420.60 Td (The Company will also recognize a right-of-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 408.60 Td (use asset at January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 201.40 408.60 Td (The Company intends to elect the practical expedient not to reassess whether contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 396.60 Td (are or contain leases. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 375.60 Td (Due to the adoption of IFRS 16, the Company) Tj ET Q q 0 0 0 rg BT 272.99 375.60 Td (s operating profit will improve, while interest expense will increase due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 363.60 Td (to the change in the accounting for expenses of leases that were classified as operating leases under IAS 17.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 342.60 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 342.60 Td (IFRIC 23 Uncertainty over Income T) Tj ET Q q 0 0 0 rg BT 233.15 342.60 Td (ax T) Tj ET Q q 0 0 0 rg BT 250.10 342.60 Td (r) Tj ET Q q 0 0 0 rg BT 253.62 342.60 Td (eatments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 321.60 Td (This Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 309.60 Td (uncertainty over income tax treatments. ) Tj ET Q q 0 0 0 rg BT 246.37 309.60 Td (The interpretation will be ef) Tj ET Q q 0 0 0 rg BT 358.37 309.60 Td (fective from annual periods commencing on or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 297.60 Td (after January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 174.73 297.60 Td (The Company is currently assessing the impact of this interpretation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 276.60 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 276.60 Td (Amendments to IFRS 9: Pr) Tj ET Q q 0 0 0 rg BT 192.88 276.60 Td (epayments with negative compensation featur) Tj ET Q q 0 0 0 rg BT 375.25 276.60 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 255.60 Td (The amendments clarify how to classify particular pre-payable financial assets and how to account for financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 243.60 Td (liabilities following a modification. ) Tj ET Q q 0 0 0 rg BT 229.46 243.60 Td (These amendments will be ef) Tj ET Q q 0 0 0 rg BT 346.46 243.60 Td (fective for annual periods commencing on or after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 231.60 Td (January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 153.92 231.60 Td (The Company is currently assessing the impact of these amendments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 210.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 210.60 Td (A) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.72 210.60 Td (mendments to IAS 28: Investments in associates and joint ventur) Tj ET Q q 0 0 0 rg BT 350.36 210.60 Td (es ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.19 210.60 Td (which will be ef) Tj ET Q q 0 0 0 rg BT 425.71 210.60 Td (fective from annual periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 198.60 Td (commencing on or after January 1, 2019 are not expected to have a significant impact on the Company) Tj ET Q q 0 0 0 rg BT 499.81 198.60 Td (s financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 186.60 Td (statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 165.60 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 165.60 Td (Annual Impr) Tj ET Q q 0 0 0 rg BT 135.96 165.60 Td (ovements to IFRS \(2015-2017\), including amendments to IFRS 3: Business Combinations, amendments to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 153.60 Td (IAS 12 : Income T) Tj ET Q q 0 0 0 rg BT 157.34 153.60 Td (axes, and amendments to IAS 23 : Borr) Tj ET Q q 0 0 0 rg BT 314.17 153.60 Td (owing Costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.35 153.60 Td (are) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 380.55 153.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.05 153.60 Td (applicable from annual periods commencing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 141.60 Td (on or after January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 198.06 141.60 Td (The Company is currently assessing the impact of these improvements.) Tj ET Q endstream endobj 239 0 obj <> endobj 240 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (2.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 722.25 Td (. Summary of significant accounting policies) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 705.25 Td (Functional currencies and translation of financial statements denominated in currencies other than the U.S. dollar) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 688.25 Td (The Consolidated Financial Statements are presented in U.S. dollars, which is also the functional currency of Sequans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 676.25 Td (Communications S.A. ) Tj ET Q q 0 0 0 rg BT 140.43 676.25 Td (The Company uses the U.S. dollar as its functional currency due to the high percentage of revenues, cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 664.25 Td (of revenue, capital expenditures and operating costs, other than those related to headcount and overhead, which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 652.25 Td (denominated in U.S. dollars. Each subsidiary determines its own functional currency and items included in the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.25 Td (statements of each entity are measured using that functional currency) Tj ET Q q 0 0 0 rg BT 325.69 640.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.25 Td (As at the reporting date, the assets and liabilities of each subsidiary are translated into the presentation currency of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.25 Td (Company \(the U.S. dollar\) at the rate of exchange in ef) Tj ET Q q 0 0 0 rg BT 269.24 607.25 Td (fect at the Statement of Financial Position date and their Statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.25 Td (Operations are translated at the weighted average exchange rate for the reporting period. ) Tj ET Q q 0 0 0 rg BT 405.27 595.25 Td (The exchange dif) Tj ET Q q 0 0 0 rg BT 474.50 595.25 Td (ferences arising on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.25 Td (the translation are taken directly to a separate component of equity \(Cumulative translation adjustments\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 557.25 Td (Foreign currency transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.25 Td (Foreign currency transactions are initially recognized by Sequans Communications S.A. and each of its subsidiaries at their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.25 Td (respective functional currency rates prevailing at the date of the transactions. Monetary assets and liabilities denominated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.25 Td (foreign currencies are retranslated at the functional currency spot rate of exchange in ef) Tj ET Q q 0 0 0 rg BT 398.87 516.25 Td (fect at the reporting date. ) Tj ET Q q 0 0 0 rg BT 501.04 516.25 Td (All dif) Tj ET Q q 0 0 0 rg BT 527.25 516.25 Td (ferences ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.25 Td (are taken to the Consolidated Statement of Operations within financial income or expense. Non-monetary items that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.25 Td (measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.25 Td (transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.25 Td (The table below sets forth, for the periods and dates indicated, the average and closing exchange rate for the U.S. dollar \(USD\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.25 Td (to the euro \(EUR\), the U.K. pound sterling \(GBP\), the Singapore dollar \(SGD\) and the New Israeli shekel \(NIS\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 424.75 317.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 424.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 424.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 424.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 424.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 396.75 317.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 396.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 396.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 396.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 396.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 368.75 317.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 368.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 368.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 368.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 368.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 340.75 317.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 340.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 340.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 340.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 340.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 340.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 340.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 340.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 340.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 312.75 317.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 312.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 312.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 312.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 312.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 312.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 312.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 312.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 312.75 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 424.75 m 415 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 424.75 m 464 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 424.75 m 513 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 424.75 m 562 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 382.75 m 415 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 382.75 m 464 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 382.75 m 513 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 382.75 m 562 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 340.75 m 415 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 340.75 m 464 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 340.75 m 513 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 340.75 m 562 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 298.75 m 415 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 298.75 m 464 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 298.75 m 513 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 298.75 m 562 298.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 374.40 428.83 Td (USD/EUR) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.85 428.83 Td (USD/GBP) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.65 428.83 Td (USD/SGD) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.20 428.83 Td (USD/NIS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 415.32 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 401.32 Td (A) Tj ET Q q 0 0 0 rg BT 76.35 401.32 Td (verage rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.60 401.32 Td (1.1066) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 401.32 Td (1.3555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 401.32 Td (0.7244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 401.32 Td (0.2605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 387.32 Td (Closing rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.60 387.32 Td (1.0541) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 387.32 Td (1.2312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 387.32 Td (0.6919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 387.32 Td (0.2604) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 373.32 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 359.32 Td (A) Tj ET Q q 0 0 0 rg BT 76.35 359.32 Td (verage rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.60 359.32 Td (1.1293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 359.32 Td (1.2885) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 359.32 Td (0.7244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 359.32 Td (0.2780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 345.32 Td (Closing rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.60 345.32 Td (1.1993) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 345.32 Td (1.3518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 345.32 Td (0.7484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 345.32 Td (0.2880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 331.32 Td (December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 317.32 Td (A) Tj ET Q q 0 0 0 rg BT 76.35 317.32 Td (verage rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.60 317.32 Td (1.1815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 317.32 Td (1.3356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 317.32 Td (0.7416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 317.32 Td (0.2782) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 303.32 Td (Closing rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.60 303.32 Td (1.1450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 303.32 Td (1.2800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 303.32 Td (0.7344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 303.32 Td (0.2665) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 273.25 Td (Earnings \(loss\) per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.25 Td (Basic earnings \(loss\) per share amounts are computed using the weighted average number of shares outstanding during each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.25 Td (period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.25 Td (Diluted earnings per share include the ef) Tj ET Q q 0 0 0 rg BT 211.48 223.25 Td (fects of dilutive options and warrants as if they had been exercised, unless the ef) Tj ET Q q 0 0 0 rg BT 532.58 223.25 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.25 Td (would be anti-dilutive.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 185.25 Td (Revenue recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 168.25 Td (s total revenue consists of product revenue and other revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.25 Td (Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company when revenue can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.25 Td (be reliably measured and when the costs incurred or to be incurred in respect of the transaction can be measured reliably) Tj ET Q q 0 0 0 rg BT 530.33 135.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.25 Td (Revenue is measured at the fair value of the consideration to which the entity is entitled, excluding sales taxes or duties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: \(1\) identifying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (the contract with a customer; \(2\) identifying the performance obligations in the contract; \(3\) determining the transaction price; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (\(4\) allocating the transaction price to the performance obligations in the contract; and \(5\) recognizing revenue when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (performance obligation is satisfied. ) Tj ET Q endstream endobj 241 0 obj <> endobj 242 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (When a contract includes multiple promised goods and services, the Company evaluates each component to determine whether ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (they represent separate performance obligations and determines the appropriate allocation of the contract consideration to each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (identified performance obligation based on estimated relative stand-alone selling prices.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.13 672.10 Td (oduct r) Tj ET Q q 0 0 0 rg BT 87.37 672.10 Td (evenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.10 Td (Substantially all of the Company) Tj ET Q q 0 0 0 rg BT 183.93 655.10 Td (s product revenue is derived from the sale of semiconductor solutions for 4G wireless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.10 Td (broadband applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (Revenue from the sale of products is recognized at a point in time when the Company satisfies its performance obligation to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (buyer) Tj ET Q q 0 0 0 rg BT 71.87 610.10 Td (, whether direct end customer) Tj ET Q q 0 0 0 rg BT 190.03 610.10 Td (, end customer's manufacturing partner or distributor) Tj ET Q q 0 0 0 rg BT 400.39 610.10 Td (. ) Tj ET Q q 0 0 0 rg BT 405.21 610.10 Td (This occurs when there is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (continuing managerial involvement to the degree usually associated with ownership nor ef) Tj ET Q q 0 0 0 rg BT 411.16 598.10 Td (fective control over the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (products is retained, which is based on the specified Incoterms, but usually occurs on shipment of the goods. ) Tj ET Q q 0 0 0 rg BT 486.17 586.10 Td (The Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (the principal in all product sales regardless of customer type. Products are not sold with a right of return but are covered by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (warranty) Tj ET Q q 0 0 0 rg BT 84.39 562.10 Td (. ) Tj ET Q q 0 0 0 rg BT 89.21 562.10 Td (This is an assurance-type warranty) Tj ET Q q 0 0 0 rg BT 227.40 562.10 Td (. ) Tj ET Q q 0 0 0 rg BT 232.21 562.10 Td (The Company does not accrue for a warranty obligation as the Company has not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (historically incurred and does not expect material costs. ) Tj ET Q q 0 0 0 rg BT 274.15 550.10 Td (Although the products sold have embedded software, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (believes that software is incidental to the products it sells.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (Other r) Tj ET Q q 0 0 0 rg BT 78.85 512.10 Td (evenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (Other revenue consists of the sale of licenses to use the Company) Tj ET Q q 0 0 0 rg BT 314.15 495.10 Td (s technology solutions and fees for the associated annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (software maintenance and support services, as well as the sale of technical support and development services. Development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (services include advanced technology development services for technology partners and product development and integration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (services for customers, and wireless operators.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.10 Td (Revenue from the sale of licenses is recognized at a point in time when the Company satisfies its performance obligation which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.10 Td (occurs when the software has been delivered to the customer \(assuming no other significant obligations exist\), as licenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (provide the right to use the software as it exists when made available to the customer) Tj ET Q q 0 0 0 rg BT 388.57 414.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (Revenue from the sale of software maintenance and support services is recognized over time, over the period of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (maintenance \(generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.56 381.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.00 381.10 Td ( year\). ) Tj ET Q q 0 0 0 rg BT 187.85 381.10 Td (When the first year of maintenance is included in the software license price, an amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (generally equal to the negotiated rate for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.15 369.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.59 369.10 Td ( year of maintenance is deducted from the value of the license and recognized as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.10 Td (revenue over time, over the period of maintenance as described above. ) Tj ET Q q 0 0 0 rg BT 333.92 357.10 Td (The dif) Tj ET Q q 0 0 0 rg BT 362.89 357.10 Td (ference between license and maintenance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.10 Td (services invoiced and the amount recognized in revenue is recorded as deferred revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.10 Td (Revenue from technical support and development services is generally recognized over time using the percentage-of-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.10 Td (completion method. For each service contract, the Company determines whether the pattern of transfer of control meets one of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.10 Td (the criteria for revenue recognition over time: \(a\) the customer simultaneously receives and consumes the benefits provided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.10 Td (the entity's performance as the entity performs \(b\) the Company's performance creates or enhances an asset \(for example, work ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.10 Td (in progress\) that the customer controls as the asset is created or enhanced or \(c\)the Company's performance does not create an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.10 Td (asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.10 Td (Generally) Tj ET Q q 0 0 0 rg BT 88.27 252.10 Td (, the support and development contracts meet one or more of these criteria, based on the facts and circumstances both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.10 Td (within the contract and the nature of the services provided. ) Tj ET Q q 0 0 0 rg BT 286.74 240.10 Td (T) Tj ET Q q 0 0 0 rg BT 292.15 240.10 Td (ypically) Tj ET Q q 0 0 0 rg BT 323.71 240.10 Td (, the customers consume the services as they are provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.10 Td (through ongoing technical support or through an iterative development process. Certain contracts also include terms which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (allow the customer to have control over the asset as it is created or provide Sequans the right to payment for all work performed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (to date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (Due to revenue recognition over time, contract assets are created for services provided that Sequans does not yet have the right ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (to invoice.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (When a contract does not meet one of the criteria above, revenue is recognized at a point in time, when there is evidence of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (transfer of control, which typically occurs upon achievement of certain or all contract milestones. Percentage-of-completion is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (calculated based on the input method using estimated costs as a measure of performance completed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (The costs associated with these arrangements are recognized as incurred. Revenue from development contracts where no related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (incremental costs were identified amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.66 93.10 Td ($831,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.16 93.10 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.62 93.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.20 93.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.03 93.10 Td ($1,321,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.03 93.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.81 93.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.81 93.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td ($3,684,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 81.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.28 81.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 81.10 Td (\).) Tj ET Q endstream endobj 243 0 obj <> endobj 244 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-16) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (Contract assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 705.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 705.10 Td ( contract asset is the right to consideration in exchange for goods or services transferred to the customer) Tj ET Q q 0 0 0 rg BT 470.76 705.10 Td (. ) Tj ET Q q 0 0 0 rg BT 475.21 705.10 Td (As described above, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.10 Td (when the Company performs by transferring goods or services before the customer pays consideration or before payment is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.10 Td (due, a contract asset is recognized for the earned consideration that is conditional. ) Tj ET Q q 0 0 0 rg BT 378.92 681.10 Td (Where the Company has the right to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.10 Td (payment, these are included in unbilled revenue until billing occurs and classified as trade receivables.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 652.10 Td (Although not required under the modified retrospective approach, we have reclassified prior year amounts to conform with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.10 Td (IFRS 15 presentation: we have reclassified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 640.10 Td ($3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.84 640.10 Td ( million and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.67 640.10 Td ($1.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.17 640.10 Td ( million of contract assets out of trade receivables for the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.10 Td (ended 2017 and 2016 respectively) Tj ET Q q 0 0 0 rg BT 185.48 628.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (There are no other dif) Tj ET Q q 0 0 0 rg BT 136.50 611.10 Td (ferences between the amounts recognized in the current year on the financial statements and amounts that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (would have been recognized under previous revenue recognition standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 578.10 Td (e have elected to use the practical expedient not to adjust the promised amount of consideration for the ef) Tj ET Q q 0 0 0 rg BT 478.92 578.10 Td (fects of a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (financing component when the period between when we transfer the promised good or service to our customers and when we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (expect the customers to pay for that good or service is one year or less.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 533.10 Td (e have elected to use the practical expedient not to disclose information about our remaining performance obligations for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (contracts that have an original expected duration of one year or less.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 497.10 Td (e do not have any costs that meet the criteria for costs to obtain a contract or cost to fulfill a contract.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (As of December 31, 2018, the transaction price allocated to the remaining performance obligations \(unsatisfied or partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.10 Td (unsatisfied\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.71 461.10 Td ($936,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.21 461.10 Td ( for which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.81 461.10 Td ($919,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.31 461.10 Td ( is expected to be recognized in the next year and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.94 461.10 Td ($17,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.44 461.10 Td ( in the year after) Tj ET Q q 0 0 0 rg BT 532.41 461.10 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (Contract liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (Deferred revenue represents the Company's contract liabilities. Revenue recognized in the current period from amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (included in deferred revenue at the beginning of the year was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.90 407.10 Td ($740,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.40 407.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.40 407.10 Td ($497,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.90 407.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.34 407.10 Td ($1,221,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.34 407.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.00 407.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 407.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 407.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 407.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.43 407.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.43 407.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (respectively \(See Note 17 Other non-current liabilities and Note 18 trade payables and other current liabilities\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (Cost of revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (Cost of product revenue includes all direct and indirect costs incurred with the sale of products, including shipping and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (handling. Cost of other revenue includes incremental costs incurred to support the obligations covered by development services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (contracts \(mainly employees and subcontractors costs\). Research and development costs associated with product development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (\(including normal customer support which generates product improvement\) are recorded in research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (expenses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (Research and development costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.10 Td (Research costs are expensed as incurred. Development costs are recognized as an intangible asset if the Company can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.10 Td (demonstrate:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 232.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 232.10 Td (the technical feasibility of completing the intangible asset so that it will be available for use or sale;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 215.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 215.10 Td (its intention to complete the asset and use or sell it;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 198.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 198.10 Td (its ability to use or sell the asset;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 181.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 181.10 Td (how the asset will generate future economic benefits;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 164.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 164.10 Td (the availability of adequate resources to complete the development and to use or sell the asset; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 147.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 147.10 Td (the ability to measure reliably the expenditure during development.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (The asset is tested for impairment annually) Tj ET Q q 0 0 0 rg BT 221.02 126.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (Development costs that meet the criteria for capitalization have been recorded as intangible assets. \(See Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.94 105.10 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.94 105.10 Td ( to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (Consolidated Financial Statements\). Beginning in 2015, certain development costs incurred at the end of the product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (development cycle when the criteria for capitalization are met, became material as the Company began making its product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.10 Td (available on more operator networks which require significant testing and qualification work in order to finalize the product for ) Tj ET Q endstream endobj 245 0 obj <> endobj 246 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (sale on that network. Beginning in 2017, the Company capitalized costs related to the development of the chipsets for L) Tj ET Q q 0 0 0 rg BT 527.63 722.10 Td (TE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (Category M, and in 2018 the Company also capitalized costs for the development of the Monarch and Monarch 2.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.10 Td (Research and development costs associated with product development \(including normal customer support which generates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (product improvements\) are recorded in operating expense.In some cases, the Company has negotiated agreements with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (customers and partners whereby the Company provides certain development services beyond its normal practices or planned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (product roadmap.) Tj ET Q q 0 0 0 rg BT 121.98 653.10 Td (Amounts received from these agreements are recorded in other revenue.Incremental costs incurred by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (Company as a result of the commitments in the agreements are recorded in cost of other revenue.Other research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (development costs related to the projects covered by the agreements, but which would have been incurred by the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (without the existence of such agreements are recorded in research and development expense.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (Government grants, loans and research tax credits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (The Company operates in certain jurisdictions which of) Tj ET Q q 0 0 0 rg BT 271.76 574.10 Td (fer government grants or other incentives based on the qualifying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (research expense incurred or to be incurred in that jurisdiction. ) Tj ET Q q 0 0 0 rg BT 302.83 562.10 Td (These incentives are recognized as the qualifying research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (expense is incurred if there is reasonable assurance that all related conditions will be complied with and the grant will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (received. ) Tj ET Q q 0 0 0 rg BT 88.18 538.10 Td (When the grant relates to an expense item, it is recognized as a reduction of the related expense over the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (necessary to match the grant on a systematic basis to the costs that it is intended to compensate. ) Tj ET Q q 0 0 0 rg BT 433.57 526.10 Td (Any cash received in advance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (of the expenses being incurred is recorded as a liability) Tj ET Q q 0 0 0 rg BT 269.05 514.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (Some long-term research projects are also financed through low-interest for) Tj ET Q q 0 0 0 rg BT 352.26 493.10 Td (givable loans. ) Tj ET Q q 0 0 0 rg BT 410.13 493.10 Td (The present value of for) Tj ET Q q 0 0 0 rg BT 506.01 493.10 Td (givable loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (is calculated based on expected future payments discounted using interest rate applied for standard loans with the same ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (maturity) Tj ET Q q 0 0 0 rg BT 82.73 469.10 Td (. ) Tj ET Q q 0 0 0 rg BT 87.55 469.10 Td (The dif) Tj ET Q q 0 0 0 rg BT 116.53 469.10 Td (ference between present value and amount received is accounted for as a grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.10 Td (Where loans or similar assistance provided by governments or related institutions are interest-free, the present value is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (calculated based on expected future payments discounted using the interest rate applied for standard loans with same ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (maturity) Tj ET Q q 0 0 0 rg BT 82.73 424.10 Td (.) Tj ET Q q 0 0 0 rg BT 87.55 424.10 Td (The dif) Tj ET Q q 0 0 0 rg BT 116.53 424.10 Td (ference between present value and amount received is accounted for as a grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.10 Td (The Company also benefits from research incentives in the form of tax credits which are detailed in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.13 403.10 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.63 403.10 Td ( to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 Td (Consolidated Financial Statements. ) Tj ET Q q 0 0 0 rg BT 193.19 391.10 Td (When the incentive is available only as a reduction of taxes owed, such incentive is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (accounted for as a reduction of tax expense; otherwise, it is accounted for as a government grant with the benefit recorded as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.10 Td (reduction of research and development costs, whether capitalized or expensed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (Financial income and expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.10 Td (Financial income and expense include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 307.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 307.10 Td (interest expense related to venture debt, accounts receivable financing, the debt component of convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 295.10 Td (debt and government loans, and a supplier payable with extended payment terms;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 278.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 278.10 Td (other expenses paid to financial institutions for financing operations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 261.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 261.10 Td (foreign exchange gains and losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 244.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 244.10 Td (changes in fair value of financial assets and liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 227.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 227.10 Td (impact of convertible debt amendments; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 210.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 210.10 Td (impact of convertible debt reimbursement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.10 Td (The Company reflects foreign exchange gains and losses related to hedges \(through derivatives\) of euro-based operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.10 Td (expenses in operating expenses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.69 151.10 Td (axation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (Curr) Tj ET Q q 0 0 0 rg BT 68.58 134.10 Td (ent income tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.10 Td (Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (from or paid to the taxation authorities. ) Tj ET Q q 0 0 0 rg BT 208.72 105.10 Td (The tax rates and tax laws used to compute the amount are those that are enacted or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (substantively enacted at the reporting date.) Tj ET Q endstream endobj 247 0 obj <> endobj 248 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-18) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 75.79 722.10 Td (ed income tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 705.10 Td (Deferred income tax is provided using the liability method on temporary dif) Tj ET Q q 0 0 0 rg BT 353.41 705.10 Td (ferences at the reporting date between the tax bases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.10 Td (of assets and liabilities and their carrying amounts for financial reporting purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.10 Td (Deferred income tax liabilities are recognized for all taxable temporary dif) Tj ET Q q 0 0 0 rg BT 347.51 672.10 Td (ferences, except with respect to taxable temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 660.10 Td (ferences associated with investments in subsidiaries where the timing of the reversal of the temporary dif) Tj ET Q q 0 0 0 rg BT 480.39 660.10 Td (ferences can be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.10 Td (controlled and it is probable that the temporary dif) Tj ET Q q 0 0 0 rg BT 250.93 648.10 Td (ferences will not reverse in the foreseeable future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 Td (Deferred income tax assets are recognized for all deductible temporary dif) Tj ET Q q 0 0 0 rg BT 346.40 627.10 Td (ferences, carry forwards of unused tax credits and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 603.10 Td (ferences and the carry forwards of unused tax credits and unused tax losses can be utilized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (Deferred tax is computed based on the temporary dif) Tj ET Q q 0 0 0 rg BT 260.35 582.10 Td (ference that exists between the tax and accounting basis for non-monetary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (items.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.10 Td (The carrying amount of deferred income tax assets is reviewed at the reporting date and adjusted to the extent that it is probable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.10 Td (that suf) Tj ET Q q 0 0 0 rg BT 79.04 537.10 Td (ficient future taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.10 Td (Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.10 Td (realized or the liability is settled, based on tax rates \(and tax laws\) that have been enacted or substantively enacted at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.10 Td (statement of financial position date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (Deferred income tax relating to items recognized directly in equity is recognized in equity) Tj ET Q q 0 0 0 rg BT 409.00 471.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (Deferred income tax assets and deferred income tax liabilities are of) Tj ET Q q 0 0 0 rg BT 321.98 450.10 Td (fset if a legally enforceable right of of) Tj ET Q q 0 0 0 rg BT 473.67 450.10 Td (fset exists.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (V) Tj ET Q q 0 0 0 rg BT 54.50 424.10 Td (alue added tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (Revenue, expenses and assets are recognized net of the amount of value added tax except:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 390.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 390.10 Td (where the value added tax incurred on a purchase of assets or services is not recoverable from the tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 378.10 Td (authorities, in which case the value added tax is recognized as part of the cost of acquisition of the asset or as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 366.10 Td (part of the expense item as applicable; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 349.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 349.10 Td (receivables and payables that are stated with the amount of value added tax included.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 328.10 Td (alue added tax recoverable consists of value added tax paid by the Company to vendors and suppliers located in the European ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (Union and recoverable from the tax authorities. ) Tj ET Q q 0 0 0 rg BT 241.47 316.10 Td (V) Tj ET Q q 0 0 0 rg BT 247.59 316.10 Td (alue added tax recoverable is collected on a quarterly basis.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.10 Td (Inventories consist primarily of the cost of semiconductors, including wafer fabrication, assembly) Tj ET Q q 0 0 0 rg BT 440.13 273.10 Td (, testing and packaging; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.10 Td (components;and modules purchased from subcontractors. Inventories are valued at the lower of cost \(determined using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.10 Td (weighted average cost method\) or net realizable value \(estimated market value less estimated cost of completion and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (estimated costs necessary to make the sale\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (The Company writes down the carrying value of its inventories for estimated amounts related to the lower of cost or net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (realizable value, obsolescence or unmarketable inventory equal to the dif) Tj ET Q q 0 0 0 rg BT 341.42 204.10 Td (ference between the cost of inventory and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (estimated net realizable value. ) Tj ET Q q 0 0 0 rg BT 172.87 192.10 Td (The estimated net realizable value of the inventory is based on historical usage and assumptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.10 Td (about future demand, future product purchase commitments, estimated manufacturing yield levels and market conditions on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.10 Td (product-by-product basis. ) Tj ET Q q 0 0 0 rg BT 154.57 168.10 Td (When the circumstances that previously caused inventories to be written down below cost no longer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (exist or when there is clear evidence of an increase in net realizable value because of changed economic circumstances, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.10 Td (amount of the write-down is reversed \(i.e. the reversal is limited to the amount of the original write-down\) so that the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (carrying amount is the lower of the cost and the revised net realizable value.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (Financial assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 Td (Financial assets are classified, at initial recognition, as \(1\) measured at amortized cost, \(2\) fair value through other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (comprehensive income \(OCI\), or \(3\) fair value through profit or loss. ) Tj ET Q q 0 0 0 rg BT 328.41 77.10 Td (The classification of financial assets at initial recognition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (depends on the financial asset) Tj ET Q q 0 0 0 rg BT 171.68 65.10 Td (s contractual cash flow characteristics and Sequans) Tj ET Q q 0 0 0 rg BT 378.64 65.10 Td ( business model for managing them. ) Tj ET Q q 0 0 0 rg BT 525.93 65.10 Td (W) Tj ET Q q 0 0 0 rg BT 534.97 65.10 Td (ith the ) Tj ET Q endstream endobj 249 0 obj <> endobj 250 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (exception of trade receivables that do not contain a significant financing component or for which the Company has applied the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (practical expedient, the Company initially measures a financial asset at its fair value. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 693.10 Td (Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 676.10 Td (The Company has not adjusted the transaction price for any revenue contracts for a significant financing component and as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 664.10 Td (such, trade receivables are measured at the transaction price determined under IFRS 15. Impairment losses on trade accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 652.10 Td (receivable are estimated using the expected loss method, in order to take into account the risk of payment default throughout the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.10 Td (lifetime of the receivables. Based on an analysis of historical credit losses, the Company has not applied any expected credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.10 Td (losses to its outstanding receivables as of the reporting date beyond specific provisions for doubtful accounts. ) Tj ET Q q 0 0 0 rg BT 489.50 628.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.10 Td (records an allowance for any specific account it considers as doubtful based on the particular circumstances of the account. ) Tj ET Q q 0 0 0 rg BT 544.12 616.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.10 Td (carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the char) Tj ET Q q 0 0 0 rg BT 522.20 604.10 Td (ge is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (recognized on the line General and administrative expenses in the Consolidated Statement of Operations. Subsequent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.10 Td (recoveries, if any) Tj ET Q q 0 0 0 rg BT 117.98 580.10 Td (, of amounts previously provided for are credited against the same line in the Consolidated Statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.10 Td (Operations. ) Tj ET Q q 0 0 0 rg BT 98.20 568.10 Td (When a trade accounts receivable is uncollectible, it is written-of) Tj ET Q q 0 0 0 rg BT 357.91 568.10 Td (f against the allowance account for trade accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (receivable. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (Short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.10 Td (Short-term investments are financial instruments with an initial maturity of greater than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.18 513.10 Td (90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.18 513.10 Td ( days, but less than one year) Tj ET Q q 0 0 0 rg BT 524.25 513.10 Td (, and are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.10 Td (reported as current financial assets.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 475.10 Td (Deposits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (Deposits are reported as non-current financial assets \(loans and receivables\) when their initial maturity is more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.62 458.10 Td (twelve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.27 458.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (months.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (Cash and cash equivalents in the Consolidated Statements of Financial Position includes cash at banks, term deposits and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (money market funds, which correspond to highly liquid investments readily convertible to known amounts of cash and subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (to an insignificant risk of change in value.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (Property) Tj ET Q q 0 0 0 rg BT 84.68 359.10 Td (, plant and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (Property) Tj ET Q q 0 0 0 rg BT 83.29 342.10 Td (, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment loss. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (Depreciation is computed using the straight-line method over the estimated useful lives of each component. ) Tj ET Q q 0 0 0 rg BT 481.98 330.10 Td (The useful lives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (most commonly used are the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 298.17 Td (Machinery and equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 297.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.10 298.17 Td (3to5years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 284.17 Td (Building and leasehold improvements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 283.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.05 284.17 Td (Lesser of 6 years or the life of the lease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 270.17 Td (Computer equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 269.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.90 270.17 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 256.17 Td (Furniture and of) Tj ET Q q 0 0 0 rg BT 117.30 256.17 Td (fice equipment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 255.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.90 256.17 Td (5 years) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td (Impairment tests are performed whenever events or changes in circumstances indicate that the carrying amount of an asset may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.10 Td (not be recoverable. If any indication exists, the Company estimates the asset) Tj ET Q q 0 0 0 rg BT 357.46 219.10 Td (s recoverable amount, which is the higher of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.10 Td (fair value less cost to sell and the value in use. ) Tj ET Q q 0 0 0 rg BT 237.04 207.10 Td (Where the carrying amount exceeds that recoverable amount, the asset is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 Td (considered impaired and it is written down to its recoverable amount.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (Depreciation expense is recorded in cost of revenue or operating expenses, based on the function of the underlying assets.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (Intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (Intangible assets, primarily purchased licenses for development or production technology and tools, as well as standard-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (patent licenses and development costs meeting the criteria for capitalization, are stated at cost less accumulated amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (and any accumulated impairment loss. ) Tj ET Q q 0 0 0 rg BT 205.01 107.10 Td (Amortization is computed using the straight-line method over the estimated useful life of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (each component. ) Tj ET Q q 0 0 0 rg BT 119.20 95.10 Td (Acquired licenses are amortized over their contractual life or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.92 95.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.46 95.10 Td ( years in the case of perpetual licenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (Capitalized development costs are generally amortized over periods ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.27 83.10 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.27 83.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.05 83.10 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.05 83.10 Td ( years, representing the expected life of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (the related technology) Tj ET Q q 0 0 0 rg BT 137.70 71.10 Td (.) Tj ET Q endstream endobj 251 0 obj <> endobj 252 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (Useful lives are reviewed on a regular basis and changes in estimates, when relevant, are accounted for on a prospective basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (The amortization expense is recorded in cost of revenue or operating expenses, based on the function of the underlying assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.10 Td (Impairment tests are performed whenever events or changes in circumstances indicate that the carrying amount of an asset may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (not be recoverable. If any indication exists, the Company estimates the asset) Tj ET Q q 0 0 0 rg BT 357.46 677.10 Td (s recoverable amount, which is the higher of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (fair value less cost to sell and the value in use. ) Tj ET Q q 0 0 0 rg BT 237.04 665.10 Td (Where the carrying amount exceeds that recoverable amount, the asset is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (considered impaired and it is written down to its recoverable amount.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 Td (Costs of Equity T) Tj ET Q q 0 0 0 rg BT 120.53 627.10 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (Incremental costs directly attributable to the equity transaction are recorded as a deduction from equity) Tj ET Q q 0 0 0 rg BT 460.36 610.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (Provisions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.10 Td (Provisions are recognized when the Company has a present obligation \(legal or constructive\) as a result of a past event for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (reliable estimate can be made of the amount of the obligation. ) Tj ET Q q 0 0 0 rg BT 299.23 543.10 Td (Where the Company expects some or all of a provision to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.10 Td (reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.10 Td (reimbursement is virtually certain. ) Tj ET Q q 0 0 0 rg BT 189.55 519.10 Td (The expense relating to any provision is presented in operating income \(loss\) net of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (reimbursement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (Provisions include the provision for pensions and post-employment benefits. Pension funds in favor of employees are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td (maintained in France, the United Kingdom, Singapore, the United States and Israel, and they comply with the respective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (legislation in each country and are financially independent of the Company) Tj ET Q q 0 0 0 rg BT 349.86 462.10 Td (. ) Tj ET Q q 0 0 0 rg BT 354.68 462.10 Td (The pension funds are generally financed by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (employer and employee contributions and are accounted for as defined contribution plans with the employer contributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.10 Td (recognized as expense as incurred. ) Tj ET Q q 0 0 0 rg BT 190.36 438.10 Td (There are no actuarial liabilities in connection with these plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.10 Td (French law also requires payment of a lump sum retirement indemnity to employees based on years of service and annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.10 Td (compensation at retirement. Benefits do not vest prior to retirement. ) Tj ET Q q 0 0 0 rg BT 323.68 405.10 Td (This defined benefit plan is self-funded by the Company) Tj ET Q q 0 0 0 rg BT 549.09 405.10 Td (. It ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (is calculated as the present value of estimated future benefits to be paid, applying the projected unit credit method whereby each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (period of service is seen as giving rise to an additional unit of benefit entitlement, each unit being measured separately to build ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (up the final obligation. Following the application of IAS 19 revised, actuarial gains and losses are recognized in equity) Tj ET Q q 0 0 0 rg BT 523.73 369.10 Td (. ) Tj ET Q q 0 0 0 rg BT 528.55 369.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.10 Td (actualization rate is based on iBoxx Corporates ) Tj ET Q q 0 0 0 rg BT 240.28 357.10 Td (AA.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 331.10 Td (Share-based payment transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (Employees \(including senior executives and members of the board of directors\) and certain service providers of the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (receive remuneration in the form of share-based payment transactions, whereby they render services as consideration for equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (instruments \(equity-settled transactions\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (The cost of equity-settled transactions is measured by reference to the fair value at the date on which they are granted. ) Tj ET Q q 0 0 0 rg BT 524.13 269.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (exercise price is based on closing market price on the date of grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (The cost of equity-settled transactions is recognized, together with a corresponding increase in equity) Tj ET Q q 0 0 0 rg BT 454.28 236.10 Td (, over the period in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (the performance and/or service conditions are fulfilled, ending on the date on which the beneficiary becomes fully entitled to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (the award \(the vesting date\). ) Tj ET Q q 0 0 0 rg BT 174.26 212.10 Td (The cumulative expense recognized for equity-settled transactions at each reporting date until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (the vesting date reflects the extent to which the vesting period has expired and the Company) Tj ET Q q 0 0 0 rg BT 421.34 200.10 Td (s best estimate of the number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (equity instruments that will ultimately vest which includes assumptions on the number of awards to be forfeited due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (employees) Tj ET Q q 0 0 0 rg BT 94.85 176.10 Td ( failing to fulfill the service condition, and forfeitures following the non-completion of performance conditions. ) Tj ET Q q 0 0 0 rg BT 543.16 176.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (Consolidated Statement of Operations char) Tj ET Q q 0 0 0 rg BT 221.50 164.10 Td (ge or credit for a period represents the movement in cumulative expense recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (as at the beginning and end of that period.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 120.70 Td (Financial liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.70 Td (Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.70 Td (borrowings, payables, or as derivatives designated as hedging instruments in an ef) Tj ET Q q 0 0 0 rg BT 377.85 91.70 Td (fective hedge, as appropriate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.70 Td (All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 55.70 Td (directly attributable transaction costs.) Tj ET Q endstream endobj 253 0 obj <> endobj 254 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (Non derivative financial liabilities are subsequently measured at amortized cost whereas derivative liabilities not designated as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (hedging instruments are recognized at fair value through profit or loss.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 681.10 Td (Convertible debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.30 Td (The ) Tj ET Q q 0 0 0 rg BT 66.67 665.30 Td (Company ) Tj ET Q q 0 0 0 rg BT 107.17 665.30 Td (evaluates ) Tj ET Q q 0 0 0 rg BT 145.99 665.30 Td (at ) Tj ET Q q 0 0 0 rg BT 154.83 665.30 Td (initial ) Tj ET Q q 0 0 0 rg BT 179.78 665.30 Td (recognition ) Tj ET Q q 0 0 0 rg BT 226.94 665.30 Td (of ) Tj ET Q q 0 0 0 rg BT 236.89 665.30 Td (a ) Tj ET Q q 0 0 0 rg BT 242.94 665.30 Td (convertible ) Tj ET Q q 0 0 0 rg BT 289.54 665.30 Td (debt ) Tj ET Q q 0 0 0 rg BT 308.38 665.30 Td (the ) Tj ET Q q 0 0 0 rg BT 322.21 665.30 Td (dif) Tj ET Q q 0 0 0 rg BT 333.14 665.30 Td (ferent ) Tj ET Q q 0 0 0 rg BT 358.07 665.30 Td (components ) Tj ET Q q 0 0 0 rg BT 408.02 665.30 Td (and ) Tj ET Q q 0 0 0 rg BT 424.08 665.30 Td (features ) Tj ET Q q 0 0 0 rg BT 457.34 665.30 Td (of ) Tj ET Q q 0 0 0 rg BT 467.29 665.30 Td (the ) Tj ET Q q 0 0 0 rg BT 481.12 665.30 Td (hybrid ) Tj ET Q q 0 0 0 rg BT 508.85 665.30 Td (instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.30 Td (and ) Tj ET Q q 0 0 0 rg BT 65.96 653.30 Td (determines ) Tj ET Q q 0 0 0 rg BT 111.86 653.30 Td (whether ) Tj ET Q q 0 0 0 rg BT 146.09 653.30 Td (these ) Tj ET Q q 0 0 0 rg BT 168.66 653.30 Td (elements ) Tj ET Q q 0 0 0 rg BT 206.22 653.30 Td (are ) Tj ET Q q 0 0 0 rg BT 220.45 653.30 Td (equity ) Tj ET Q q 0 0 0 rg BT 247.47 653.30 Td (instruments ) Tj ET Q q 0 0 0 rg BT 296.16 653.30 Td (or ) Tj ET Q q 0 0 0 rg BT 306.51 653.30 Td (embedded ) Tj ET Q q 0 0 0 rg BT 349.63 653.30 Td (derivatives ) Tj ET Q q 0 0 0 rg BT 395.52 653.30 Td (which ) Tj ET Q q 0 0 0 rg BT 421.98 653.30 Td (require ) Tj ET Q q 0 0 0 rg BT 452.32 653.30 Td (bifurcation. ) Tj ET Q q 0 0 0 rg BT 500.72 653.30 Td (In ) Tj ET Q q 0 0 0 rg BT 511.07 653.30 Td (subsequent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.30 Td (periods, ) Tj ET Q q 0 0 0 rg BT 83.66 641.30 Td (the ) Tj ET Q q 0 0 0 rg BT 98.10 641.30 Td (liability ) Tj ET Q q 0 0 0 rg BT 131.43 641.30 Td (component ) Tj ET Q q 0 0 0 rg BT 178.08 641.30 Td (is ) Tj ET Q q 0 0 0 rg BT 186.97 641.30 Td (accounted ) Tj ET Q q 0 0 0 rg BT 229.72 641.30 Td (for ) Tj ET Q q 0 0 0 rg BT 243.60 641.30 Td (using ) Tj ET Q q 0 0 0 rg BT 267.50 641.30 Td (the ) Tj ET Q q 0 0 0 rg BT 281.93 641.30 Td (ef) Tj ET Q q 0 0 0 rg BT 289.52 641.30 Td (fective ) Tj ET Q q 0 0 0 rg BT 318.94 641.30 Td (interest ) Tj ET Q q 0 0 0 rg BT 350.60 641.30 Td (method, ) Tj ET Q q 0 0 0 rg BT 385.31 641.30 Td (based ) Tj ET Q q 0 0 0 rg BT 410.30 641.30 Td (on ) Tj ET Q q 0 0 0 rg BT 422.52 641.30 Td (the ) Tj ET Q q 0 0 0 rg BT 436.96 641.30 Td (expected ) Tj ET Q q 0 0 0 rg BT 474.71 641.30 Td (maturity ) Tj ET Q q 0 0 0 rg BT 510.82 641.30 Td (of ) Tj ET Q q 0 0 0 rg BT 521.37 641.30 Td (the ) Tj ET Q q 0 0 0 rg BT 535.80 641.30 Td (debt. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.30 Td (The ) Tj ET Q q 0 0 0 rg BT 67.09 629.30 Td (equity ) Tj ET Q q 0 0 0 rg BT 94.13 629.30 Td (component ) Tj ET Q q 0 0 0 rg BT 140.61 629.30 Td (is ) Tj ET Q q 0 0 0 rg BT 149.33 629.30 Td (not ) Tj ET Q q 0 0 0 rg BT 164.15 629.30 Td (remeasured, ) Tj ET Q q 0 0 0 rg BT 214.78 629.30 Td (while ) Tj ET Q q 0 0 0 rg BT 239.05 629.30 Td (embedded ) Tj ET Q q 0 0 0 rg BT 282.19 629.30 Td (derivatives ) Tj ET Q q 0 0 0 rg BT 328.10 629.30 Td (unless ) Tj ET Q q 0 0 0 rg BT 355.15 629.30 Td (closely ) Tj ET Q q 0 0 0 rg BT 385.52 629.30 Td (related ) Tj ET Q q 0 0 0 rg BT 414.77 629.30 Td (to ) Tj ET Q q 0 0 0 rg BT 424.59 629.30 Td (the ) Tj ET Q q 0 0 0 rg BT 438.86 629.30 Td (host ) Tj ET Q q 0 0 0 rg BT 457.57 629.30 Td (instruments ) Tj ET Q q 0 0 0 rg BT 506.28 629.30 Td (are ) Tj ET Q q 0 0 0 rg BT 520.54 629.30 Td (recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.30 Td (at ) Tj ET Q q 0 0 0 rg BT 59.22 617.30 Td (fair ) Tj ET Q q 0 0 0 rg BT 75.59 617.30 Td (value ) Tj ET Q q 0 0 0 rg BT 99.75 617.30 Td (through ) Tj ET Q q 0 0 0 rg BT 133.36 617.30 Td (the ) Tj ET Q q 0 0 0 rg BT 148.07 617.30 Td (Consolidated ) Tj ET Q q 0 0 0 rg BT 203.35 617.30 Td (Statement ) Tj ET Q q 0 0 0 rg BT 245.84 617.30 Td (of ) Tj ET Q q 0 0 0 rg BT 256.67 617.30 Td (Operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 600.30 Td (As described in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.15 600.30 Td (14.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.65 600.30 Td ( to the Consolidated Financial Statements, the Company issued debt with an option to convert into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.30 Td (shares of the Company in 2015 and 2016. ) Tj ET Q q 0 0 0 rg BT 218.46 588.30 Td (This option component has been accounted for as an embedded derivative and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.30 Td (recorded as a financial liability:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 559.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 559.30 Td (On the date of issue, the fair value of the embedded derivative is estimated based on a Black-Scholes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 547.30 Td (valuation model. ) Tj ET Q q 0 0 0 rg BT 191.03 547.30 Td (The debt component equals the present value of future contractual cash flows for a similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 535.30 Td (instrument with the same conditions \(maturity) Tj ET Q q 0 0 0 rg BT 305.54 535.30 Td (, cash flows\) excluding any option or any obligation for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 523.30 Td (conversion or redemption in shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 506.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 506.30 Td (Subsequently) Tj ET Q q 0 0 0 rg BT 174.74 506.30 Td (, the debt component is accounted for based on amortized cost, using the ef) Tj ET Q q 0 0 0 rg BT 475.30 506.30 Td (fective interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 494.30 Td (calculated at the date of issue and the embedded derivative is accounted as a financial liability) Tj ET Q q 0 0 0 rg BT 497.09 494.30 Td (, with changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 482.30 Td (in fair value recognized in the statement of operations until the date when the conversion rate is fixed. ) Tj ET Q q 0 0 0 rg BT 531.08 482.30 Td (At this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 470.30 Td (date, the fair value of the derivative - if not exercised - is reclassified in equity) Tj ET Q q 0 0 0 rg BT 434.06 470.30 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.30 Td (Costs incurred related to the convertible debt are deducted from the liability component and from the embedded derivative, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.30 Td (proportionally) Tj ET Q q 0 0 0 rg BT 106.06 437.30 Td (. ) Tj ET Q q 0 0 0 rg BT 110.88 437.30 Td (The part related to the embedded derivative has been recognized in the Consolidated Statements of Operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.30 Td (in Other financial expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.30 Td (On October 30, 2017, the convertibles notes were amended to extend the term of the notes and reduce the conversion rate for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.30 Td (one convertible debt agreement \(see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.31 392.30 Td (14.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.81 392.30 Td (\). ) Tj ET Q q 0 0 0 rg BT 243.96 392.30 Td (The change in fair value of the conversion options before and after the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.30 Td (amendment has been recorded in Other Capital Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 342.26 380.30 Td ( equity) Tj ET Q q 0 0 0 rg BT 369.11 380.30 Td (. ) Tj ET Q q 0 0 0 rg BT 373.93 380.30 Td (The debt components on October 30, 2017 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.30 Td (were re-measured based on the extended term of the notes using the ef) Tj ET Q q 0 0 0 rg BT 330.88 368.30 Td (fective interest rate calculated at the date of issue of each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.30 Td (convertible note. ) Tj ET Q q 0 0 0 rg BT 121.52 356.30 Td (The impact of the term extension and reduction of the conversion rate has been recorded in the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.30 Td (Statements of Operations in "Convertible debt amendments".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.30 Td (On September 27, 2018, the terms of the note issued on ) Tj ET Q q 0 0 0 rg BT 273.63 323.30 Td (April 15, 2015 were amended to extend by two years the maturity of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.30 Td (note to ) Tj ET Q q 0 0 0 rg BT 78.94 311.30 Td (April 14, 2021, and reduce the conversion rate. It was considered to be the equivalent of the extinguishment of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.30 Td (existing debt and issuance of new debt \(derecognition method of accounting\). ) Tj ET Q q 0 0 0 rg BT 371.44 299.30 Td (Therefore, the fair value of the debt just prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.30 Td (to amendment was estimated in order to record a loss on extinguishment in the Consolidated Statement of Operations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.30 Td (Convertible debt amendments. ) Tj ET Q q 0 0 0 rg BT 183.17 275.30 Td (The amended debt was recorded at its fair value assuming a market rate of interest, with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.30 Td (estimated value of the conversion option in equity as the conversion rate is fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.30 Td (On September 27, 2018, the Company issued debt with an option to convert into shares of the Company) Tj ET Q q 0 0 0 rg BT 465.17 242.30 Td (. ) Tj ET Q q 0 0 0 rg BT 469.99 242.30 Td (The option component ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.30 Td (has been accounted for in equity at its fair value at the date of issuance and is not remeasured. ) Tj ET Q q 0 0 0 rg BT 426.96 230.30 Td (The debt component portion has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.30 Td (been recorded as a financial liability and is subsequently measured at amortized cost, using the ef) Tj ET Q q 0 0 0 rg BT 438.63 218.30 Td (fective interest rate calculated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.30 Td (at the date of issue.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 185.30 Td (V) Tj ET Q q 0 0 0 rg BT 54.50 185.30 Td (entur) Tj ET Q q 0 0 0 rg BT 75.24 185.30 Td (e debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.30 Td (As described in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.15 168.30 Td (14.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.65 168.30 Td ( to the Consolidated Financial Statements, the Company entered into a bond issuance agreement on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.30 Td (October 26, 2018, with warrants attached. ) Tj ET Q q 0 0 0 rg BT 219.54 156.30 Td (The issuance proceeds were allocated between the venture debt component and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.30 Td (equity component \(the warrants\). ) Tj ET Q q 0 0 0 rg BT 187.05 144.30 Td (The value of the warrants was recorded in Other Capital Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 516.19 144.30 Td ( equity) Tj ET Q q 0 0 0 rg BT 543.04 144.30 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 118.30 Td (Short-term debt secur) Tj ET Q q 0 0 0 rg BT 136.34 118.30 Td (ed by accounts r) Tj ET Q q 0 0 0 rg BT 201.78 118.30 Td (eceivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.30 Td (As described in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.15 101.30 Td (14.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.65 101.30 Td ( to the Consolidated Financial Statements, the Company has a factoring agreement with a French ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.30 Td (financial institution. ) Tj ET Q q 0 0 0 rg BT 132.36 89.30 Td (The Company transfers to the finance company all invoices issued to qualifying customers, and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.30 Td (customers are instructed to settle the invoices directly with the finance company) Tj ET Q q 0 0 0 rg BT 369.58 77.30 Td (. Because there is recourse to the Company for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.30 Td (amounts that are overdue, the Company retains all receivables on its Consolidated Statement of Financial Position until they are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.30 Td (paid and any amounts drawn on the line of credit are reflected in short-term debt. ) Tj ET Q q 0 0 0 rg BT 376.42 53.30 Td (The Company pays a commission on the face ) Tj ET Q endstream endobj 255 0 obj <> endobj 256 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (value of the accounts receivable submitted, which is recorded in General and ) Tj ET Q q 0 0 0 rg BT 359.10 722.10 Td (Administration expense, and pays interest on any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (draw-down of the resulting line of credit.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 684.10 Td (Derivative financial instruments and hedge accounting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.10 Td (The Company uses financial instruments, including derivatives such as foreign currency forward and options contracts, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.10 Td (reduce the foreign exchange risk on cash flows from firm and highly probable commitments denominated in euros. ) Tj ET Q q 0 0 0 rg BT 511.97 651.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 639.10 Td (fective portion of the gain or loss on the hedging instrument is recognized directly as other comprehensive income \(loss\) in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 Td (the cash flow hedge reserve, while any inef) Tj ET Q q 0 0 0 rg BT 222.58 627.10 Td (fective portion is immediately accounted for in financial results in the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (Statement of Operations. ) Tj ET Q q 0 0 0 rg BT 151.15 615.10 Td (Amounts recognized as other comprehensive income \(loss\) are transferred to the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.10 Td (Statement of Operations when the hedged transaction af) Tj ET Q q 0 0 0 rg BT 273.41 603.10 Td (fects profit or loss. If the forecasted transaction is no longer expected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (occur) Tj ET Q q 0 0 0 rg BT 71.31 591.10 Td (, the cumulative gain or loss previously recognized in equity is transferred to the Consolidated Statement of Operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (All derivative financial instruments are recorded at fair value. Changes in fair value are recorded in current earnings or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (comprehensive income \(loss\), depending on whether the derivative is designated as a hedge, its ef) Tj ET Q q 0 0 0 rg BT 440.86 558.10 Td (fectiveness as a hedge, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (the type of hedge transaction. ) Tj ET Q q 0 0 0 rg BT 169.46 546.10 Td (Any change in the fair value of the derivatives deemed inef) Tj ET Q q 0 0 0 rg BT 406.40 546.10 Td (fective as a hedge is immediately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (recognized in earnings.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.10 Td (Commitments comprise primarily future operating lease payments and purchase commitments with its third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.10 Td (manufacturers for future deliveries of equipment and components, which are described in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.58 475.10 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.58 475.10 Td ( to the Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 Td (Statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (2.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 442.10 Td (. Significant accounting judgments, estimates and assumptions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (In the process of applying the Company) Tj ET Q q 0 0 0 rg BT 212.24 425.10 Td (s accounting policies, management must make judgments and estimates involving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (assumptions. ) Tj ET Q q 0 0 0 rg BT 103.77 413.10 Td (These judgments and estimates can have a significant ef) Tj ET Q q 0 0 0 rg BT 327.95 413.10 Td (fect on the amounts recognized in the financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (and the Company reviews them on an ongoing basis taking into consideration past experience and other relevant factors. ) Tj ET Q q 0 0 0 rg BT 533.90 401.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (evolution of the judgments and assumptions underlying estimates could cause a material adjustment to the carrying amounts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (assets and liabilities as recognized in the financial statements. ) Tj ET Q q 0 0 0 rg BT 298.68 377.10 Td (The most significant management judgments and assumptions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (the preparation of these financial statements are:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (Revenue recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 322.10 Td (s policy for revenue recognition, in instances where multiple deliverables are sold contemporaneously to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (same counterparty) Tj ET Q q 0 0 0 rg BT 122.43 310.10 Td (, is in accordance with IFRS 15 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 250.74 310.10 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 293.40 310.10 Td (om contracts with customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.12 310.10 Td (. ) Tj ET Q q 0 0 0 rg BT 412.94 310.10 Td (The application of IFRS 15 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (contracts with customers requires management to make certain judgments, the most significant of which are outlined below) Tj ET Q q 0 0 0 rg BT 543.43 298.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (These judgments are based on an analysis of the facts and circumstances surrounding the transactions on a contract-by-contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (basis. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (Determination of performance obligations within a contract) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.10 Td (The Company applies judgment in determining whether a promised good or service is a performance obligation under the terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.10 Td (of the contract and whether multiple promised goods or services should be accounted for separately or together as a bundle.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (Allocation of contract consideration to distinct performance obligations based on their stand-alone selling prices) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 194.10 Td (ypically) Tj ET Q q 0 0 0 rg BT 86.47 194.10 Td (, contracts state the value of individual promised goods and services directly) Tj ET Q q 0 0 0 rg BT 391.29 194.10 Td (. However) Tj ET Q q 0 0 0 rg BT 432.54 194.10 Td (, in instances where the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (value is not observable, management applies judgment in determining the stand-alone selling price for goods and services.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (Estimation of per) Tj ET Q q 0 0 0 rg BT 118.57 165.10 Td (centage-of-completion based on the input method) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (For service contracts that are recognized over time based on the percentage-of-completion, the Company sets up an initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 Td (budget at contract inception and tracks the progress to completion based on time and costs incurred by the employees directly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.10 Td (working on each project. Management reviews the progress and performance of open contracts in order to determine the best ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (estimate of estimated costs at completion on a quarterly basis and updates the revenue recognized as necessary) Tj ET Q q 0 0 0 rg BT 491.47 112.10 Td (.) Tj ET Q endstream endobj 257 0 obj <> endobj 258 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-23) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.24 722.25 Td (rade receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 705.25 Td (The Company records an allowance for any specific account it considers as doubtful based on the particular circumstances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (the account. ) Tj ET Q q 0 0 0 rg BT 99.76 693.25 Td (Additional allowances could be required if we receive information that the financial condition of our customers has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (deteriorated, resulting in an impairment of their ability to make payments, or there are indicators that amounts receivable will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (become uncollectible.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 643.25 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (As disclosed in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.05 626.25 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.55 626.25 Td ( to the Consolidated Financial Statements, the Company writes down the carrying value of its inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (to the lower of cost or net realizable value. ) Tj ET Q q 0 0 0 rg BT 222.58 614.25 Td (The estimated net realizable value of the inventory is based on historical usage and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (assumptions about future demand, future product purchase commitments, estimated manufacturing yield levels and market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (conditions on a product-by-product basis. ) Tj ET Q q 0 0 0 rg BT 217.81 590.25 Td (Actual demand may dif) Tj ET Q q 0 0 0 rg BT 311.76 590.25 Td (fer from the forecast established by the Company) Tj ET Q q 0 0 0 rg BT 508.55 590.25 Td (, which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (materially impact recorded inventory values and cost of revenue.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 552.25 Td (Share-based compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.25 Td (As disclosed in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.05 531.25 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.05 531.25 Td ( to the Consolidated Financial Statements, the Company has various share-based compensation plans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.25 Td (for employees and non-employees that may be af) Tj ET Q q 0 0 0 rg BT 246.19 519.25 Td (fected, as to the expense recorded in the Consolidated Statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.25 Td (Operations, by changes in valuation assumptions. Fair value of stock options is estimated by using the binomial model on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.25 Td (date of grant based on certain assumptions, including, among others expected volatility) Tj ET Q q 0 0 0 rg BT 397.37 495.25 Td (, the expected option term, the risk-free ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.25 Td (interest rate and the expected dividend payout rate. ) Tj ET Q q 0 0 0 rg BT 255.62 483.25 Td (The fair value of the Company) Tj ET Q q 0 0 0 rg BT 381.41 483.25 Td (s shares underlying stock option grants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.25 Td (equals the closing price on the New ) Tj ET Q q 0 0 0 rg BT 194.36 471.25 Td (Y) Tj ET Q q 0 0 0 rg BT 200.58 471.25 Td (ork Stock Exchange on the date of grant.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 445.25 Td (Fair value of financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (Fair value corresponds to the quoted price for listed financial assets and liabilities. ) Tj ET Q q 0 0 0 rg BT 380.89 428.25 Td (The Company determined that the fair values ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (of cash, trade receivables and trade payables approximate their carrying amounts lar) Tj ET Q q 0 0 0 rg BT 385.84 416.25 Td (gely due to the short-term maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (these instruments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.25 Td (Where no active market exists, the Company establishes fair value by using a valuation technique determined to be the most ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.25 Td (appropriate in the circumstances. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (Regarding coumpound debt instruments, the fair value of debt component was determined using a valuation model that requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (judgment, including estimating the change in value of the Company at dif) Tj ET Q q 0 0 0 rg BT 344.25 346.25 Td (ferent dates and market yields applicable to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 334.25 Td (s straight debt \(without the conversion option\). ) Tj ET Q q 0 0 0 rg BT 280.96 334.25 Td (The assumptions used in calculating the value of the conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (option represent the Company) Tj ET Q q 0 0 0 rg BT 173.08 322.25 Td (s best estimates based on management) Tj ET Q q 0 0 0 rg BT 329.43 322.25 Td (s judgment and subjective future expectations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (Deferred T) Tj ET Q q 0 0 0 rg BT 93.84 296.25 Td (ax ) Tj ET Q q 0 0 0 rg BT 105.97 296.25 Td (Assets and Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.25 Td (Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary dif) Tj ET Q q 0 0 0 rg BT 476.63 279.25 Td (ferences between the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.25 Td (financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.25 Td (makes assumptions, judgments and estimates to determine our deferred tax assets and liabilities particularly as it relates to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.25 Td (whether it is probable that deferred tax assets will be realized..) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (Research and Development Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (Costs incurred internally in research and development activities are char) Tj ET Q q 0 0 0 rg BT 338.37 200.25 Td (ged to expense until technological feasibility has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (established for the project. Once technological feasibility is established, development costs are capitalized until the product is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (available for general release to customers. Judgment is required in determining when technological feasibility of a product is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (established. ) Tj ET Q q 0 0 0 rg BT 98.75 164.25 Td (W) Tj ET Q q 0 0 0 rg BT 107.39 164.25 Td (e have determined that technological feasibility for our software products is reached after all high-risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (development issues have been resolved. Generally) Tj ET Q q 0 0 0 rg BT 250.45 152.25 Td (, this occurs when the preliminary design review has been done.) Tj ET Q endstream endobj 259 0 obj <> endobj 260 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 722.25 Td (. Segment information ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.27 722.25 Td (and Disaggr) Tj ET Q q 0 0 0 rg BT 204.04 722.25 Td (egated Revenue Disclosur) Tj ET Q q 0 0 0 rg BT 313.29 722.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 705.25 Td (The Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.76 705.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.20 705.25 Td ( operating segment, which is the design and marketing of semiconductor components for 4G broadband ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (wireless systems. ) Tj ET Q q 0 0 0 rg BT 120.89 693.25 Td (All information required to be disclosed under IFRS 8 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 340.02 693.25 Td (Operating Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.39 693.25 Td ( is shown in the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (Financial Statements and these associated Notes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (Sales to external customers disclosed below are based on the geographical location of the customers. ) Tj ET Q q 0 0 0 rg BT 454.75 660.25 Td (The following table sets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (forth the Company) Tj ET Q q 0 0 0 rg BT 127.82 648.25 Td (s total revenue by region for the periods indicated. ) Tj ET Q q 0 0 0 rg BT 331.46 648.25 Td (The Company categorizes its total revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.25 Td (geographically based on the location to which it invoices.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 66.00 588.75 244.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 588.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 588.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 588.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 588.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 588.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 588.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 66.00 560.75 244.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 560.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 560.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 560.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 560.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 560.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 560.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 66.00 532.75 244.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 532.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 532.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 532.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 532.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 532.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 532.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 66.00 504.75 244.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 504.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 504.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 504.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 504.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 504.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 504.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 66.00 476.75 244.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 476.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 476.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 476.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 476.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 476.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 476.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 66.00 448.75 244.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 448.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 448.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 448.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 448.75 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 448.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 448.75 74.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 602.75 m 388 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 602.75 m 393 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 602.75 m 467 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 602.75 m 471 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 602.75 m 545 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 588.75 m 388 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 588.75 m 467 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 588.75 m 471 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 588.75 m 545 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 532.75 m 388 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 532.75 m 467 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 532.75 m 545 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 532.75 m 388 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 532.75 m 467 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 532.75 m 545 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 462.75 m 388 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 462.75 m 467 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 462.75 m 545 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 448.75 m 388 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 435.75 m 388 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 433.75 m 388 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 448.75 m 467 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 435.75 m 467 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 433.75 m 467 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 448.75 m 545 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 435.75 m 545 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 433.75 m 545 433.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.60 606.98 Td (Y) Tj ET Q q 0 0 0 rg BT 390.93 606.98 Td (ear) Tj ET Q q 0 0 0 rg BT 401.52 606.98 Td ( ended December) Tj ET Q q 0 0 0 rg BT 460.47 606.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.45 592.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 355.45 596.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.45 592.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 434.45 596.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.50 592.98 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 579.32 Td (Asia :) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 565.32 Td ( ) Tj ET Q q 0 0 0 rg BT 73.41 565.32 Td (T) Tj ET Q q 0 0 0 rg BT 79.08 565.32 Td (aiwan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.50 565.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 565.32 Td (5,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.50 565.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 565.32 Td (8,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.50 565.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 565.32 Td (16,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 551.32 Td ( China \(including Hong-Kong\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 551.32 Td (24,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 551.32 Td (21,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 551.32 Td (1) Tj ET Q q 0 0 0 rg BT 518.65 551.32 Td (1,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 537.32 Td ( Rest of ) Tj ET Q q 0 0 0 rg BT 104.33 537.32 Td (Asia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 537.32 Td (3,256) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 537.32 Td (2,664) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 537.32 Td (2,172) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 523.32 Td ( ) Tj ET Q q 0 0 0 rg BT 80.91 523.32 Td (T) Tj ET Q q 0 0 0 rg BT 86.58 523.32 Td (otal ) Tj ET Q q 0 0 0 rg BT 103.45 523.32 Td (Asia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 523.32 Td (33,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 523.32 Td (32,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 523.32 Td (30,514) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 509.32 Td (Europe, Middle East, ) Tj ET Q q 0 0 0 rg BT 155.70 509.32 Td (Africa:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 509.32 Td (5,730) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 509.32 Td (5,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 509.32 Td (855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 495.32 Td (Americas:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 481.32 Td ( United Stated of ) Tj ET Q q 0 0 0 rg BT 141.27 481.32 Td (America) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 481.32 Td (6,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 481.32 Td (7,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 481.32 Td (7,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 467.32 Td ( Rest of ) Tj ET Q q 0 0 0 rg BT 104.33 467.32 Td (Americas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 467.32 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 467.32 Td (2,1) Tj ET Q q 0 0 0 rg BT 453.15 467.32 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 467.32 Td (1,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 453.32 Td ( ) Tj ET Q q 0 0 0 rg BT 80.91 453.32 Td (T) Tj ET Q q 0 0 0 rg BT 86.58 453.32 Td (otal ) Tj ET Q q 0 0 0 rg BT 103.45 453.32 Td (Americas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 453.32 Td (6,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 453.32 Td (10,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 453.32 Td (8,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 439.32 Td (T) Tj ET Q q 0 0 0 rg BT 73.91 439.32 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.50 439.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 439.32 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.50 439.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 439.32 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.50 439.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 439.32 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 420.65 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 420.65 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 420.65 Td (, prior period amounts have not been restated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.65 Td (The Company categorizes its total revenue based on technology) Tj ET Q q 0 0 0 rg BT 304.32 399.65 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 354.15 248.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 354.15 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 354.15 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 354.15 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.50 354.15 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 354.15 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 354.15 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 328.15 248.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 328.15 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 328.15 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 328.15 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.50 328.15 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 328.15 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 328.15 72.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 367.15 m 391.5 367.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 367.15 m 395.5 367.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 367.15 m 467.5 367.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 367.15 m 471.5 367.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 367.15 m 543.5 367.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 354.15 m 391.5 354.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 354.15 m 467.5 354.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 354.15 m 471.5 354.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 354.15 m 543.5 354.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 315.15 m 391.5 315.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 303.15 m 391.5 303.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 301.15 m 391.5 301.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 315.15 m 467.5 315.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 303.15 m 467.5 303.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 301.15 m 467.5 301.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 315.15 m 543.5 315.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 303.15 m 543.5 303.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 301.15 m 543.5 301.15 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.60 371.38 Td (Y) Tj ET Q q 0 0 0 rg BT 392.93 371.38 Td (ear) Tj ET Q q 0 0 0 rg BT 403.52 371.38 Td ( ended December) Tj ET Q q 0 0 0 rg BT 462.47 371.38 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.95 358.38 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 359.95 362.01 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.95 358.38 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 435.95 362.01 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.00 358.38 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 344.72 Td (Broadband) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.00 344.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 344.72 Td (30,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 344.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 344.72 Td (27,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.00 344.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 344.72 Td (1) Tj ET Q q 0 0 0 rg BT 517.15 344.72 Td (1,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 331.72 Td (IOT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 331.72 Td (8,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 331.72 Td (1) Tj ET Q q 0 0 0 rg BT 441.15 331.72 Td (1,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 331.72 Td (19,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 318.72 Td (V) Tj ET Q q 0 0 0 rg BT 76.67 318.72 Td (ertical) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 318.72 Td (7,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 318.72 Td (8,795) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 318.72 Td (8,914) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 305.72 Td (T) Tj ET Q q 0 0 0 rg BT 75.41 305.72 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.00 305.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 305.72 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 305.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 305.72 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.00 305.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 305.72 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 288.05 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 288.05 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 288.05 Td (, prior period amounts have not been restated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.05 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.40 267.05 Td (, the Company categorize its total revenue based on product and other revenue.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 61.00 219.55 254.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 219.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 219.55 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 219.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 219.55 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 219.55 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 219.55 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.00 191.55 254.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 191.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 191.55 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 191.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 191.55 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 191.55 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 191.55 74.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 233.54999999999995 m 393 233.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 233.54999999999995 m 397 233.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 233.54999999999995 m 471 233.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 233.54999999999995 m 476 233.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 233.54999999999995 m 550 233.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 219.54999999999995 m 393 219.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 219.54999999999995 m 471 219.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 219.54999999999995 m 476 219.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 219.54999999999995 m 550 219.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 177.54999999999995 m 393 177.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 164.54999999999995 m 393 164.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 162.54999999999995 m 393 162.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 177.54999999999995 m 471 177.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 164.54999999999995 m 471 164.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 162.54999999999995 m 471 162.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 177.54999999999995 m 550 177.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 164.54999999999995 m 550 164.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 162.54999999999995 m 550 162.54999999999995 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.60 237.78 Td (Y) Tj ET Q q 0 0 0 rg BT 395.93 237.78 Td (ear) Tj ET Q q 0 0 0 rg BT 406.52 237.78 Td ( ended December) Tj ET Q q 0 0 0 rg BT 465.47 237.78 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 344.45 223.78 Td (2016) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 360.45 227.41 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.45 223.78 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 438.45 227.41 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.50 223.78 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 210.12 Td (Product) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.50 210.12 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 210.12 Td (34,581) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 210.12 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 210.12 Td (37,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 210.12 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 210.12 Td (28,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 196.12 Td (License) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.65 196.12 Td (1,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 196.12 Td (2,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 196.12 Td (2,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 182.12 Td (Development and other services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.65 182.12 Td (9,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 182.12 Td (8,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 182.12 Td (8,605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 168.12 Td (T) Tj ET Q q 0 0 0 rg BT 68.91 168.12 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.50 168.12 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 168.12 Td (45,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 168.12 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 168.12 Td (48,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 168.12 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 168.12 Td (40,250) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 149.45 Td (\(1\) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. ) Tj ET Q q 0 0 0 rg BT 366.32 149.45 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.79 149.45 Td (, prior period amounts have not been restated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.45 Td (The substantial majority of the Company) Tj ET Q q 0 0 0 rg BT 216.41 128.45 Td (s non-current assets are held by the parent company) Tj ET Q q 0 0 0 rg BT 422.91 128.45 Td (, Sequans Communications S.A. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.45 Td (and located in France. See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.17 116.45 Td (19.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.67 116.45 Td ( to these Consolidated Financial Statements for information about major customers.) Tj ET Q endstream endobj 261 0 obj <> endobj 262 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 722.25 Td (. Other) Tj ET Q q 0 0 0 rg BT 84.87 722.25 Td ( income and expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 701.25 Td (4.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 701.25 Td (. Financial income and expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (Financial income:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 634.75 370.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 634.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 634.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 634.75 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 634.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 634.75 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 604.75 370.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 604.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 604.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 604.75 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 604.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 604.75 42.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 660.75 m 464 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 660.75 m 469 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 660.75 m 513 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 660.75 m 518 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 660.75 m 560 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 647.75 m 464 647.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 647.75 m 469 647.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 647.75 m 513 647.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 647.75 m 518 647.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 647.75 m 560 647.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 604.75 m 464 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 604.75 m 513 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 604.75 m 560 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 604.75 m 464 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 590.75 m 464 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 588.75 m 464 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 604.75 m 513 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 590.75 m 513 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 588.75 m 513 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 604.75 m 560 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 590.75 m 560 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 588.75 m 560 588.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.50 665.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.60 664.98 Td (Y) Tj ET Q q 0 0 0 rg BT 451.93 664.98 Td (ear) Tj ET Q q 0 0 0 rg BT 462.52 664.98 Td ( ended December) Tj ET Q q 0 0 0 rg BT 521.47 664.98 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.50 652.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 651.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.50 651.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.50 651.98 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.50 639.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 638.98 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 625.32 Td (Income from short-term investments and term deposits and other finance revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.50 624.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 624.42 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 624.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 624.42 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 624.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 624.42 Td (71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 610.32 Td (Foreign exchange gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.60 609.42 Td (2,069) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 609.42 Td (2,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.60 609.42 Td (1,774) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 595.32 Td (T) Tj ET Q q 0 0 0 rg BT 76.91 595.32 Td (otal financial income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.50 594.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.60 594.42 Td (2,1) Tj ET Q q 0 0 0 rg BT 450.10 594.42 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 594.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 594.42 Td (2,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 594.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.60 594.42 Td (1,845) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (Financial expenses:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 519.75 370.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 519.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 519.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 519.75 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 519.75 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 519.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 489.75 370.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 489.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 489.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 489.75 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 489.75 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 489.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 459.75 370.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 459.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 459.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 459.75 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 459.75 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 459.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 429.75 370.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 429.75 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 429.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 429.75 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 429.75 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 429.75 43.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 545.75 m 464 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 545.75 m 469 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 545.75 m 511 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 545.75 m 517 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 545.75 m 560 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 532.75 m 464 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 532.75 m 469 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 532.75 m 511 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 532.75 m 517 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 532.75 m 560 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 414.75 m 464 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 400.75 m 464 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 398.75 m 464 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 414.75 m 511 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 400.75 m 511 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 398.75 m 511 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 414.75 m 560 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 400.75 m 560 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 398.75 m 560 398.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.50 550.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.60 549.98 Td (Y) Tj ET Q q 0 0 0 rg BT 451.93 549.98 Td (ear) Tj ET Q q 0 0 0 rg BT 462.52 549.98 Td ( ended December) Tj ET Q q 0 0 0 rg BT 521.47 549.98 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.50 537.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 536.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.50 536.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.00 536.98 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.50 524.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 523.98 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 510.32 Td (Interest on loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.50 509.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.60 509.42 Td (3,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 509.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.60 509.42 Td (4,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 509.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.60 509.42 Td (4,971) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 495.32 Td (Interest on supplier payable with extended payment terms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 494.42 Td (41) Tj ET Q q 0 0 0 rg BT 455.15 494.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 494.42 Td (213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 494.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 480.32 Td (Other bank fees and financial char) Tj ET Q q 0 0 0 rg BT 190.84 480.32 Td (ges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 479.42 Td (1) Tj ET Q q 0 0 0 rg BT 450.15 479.42 Td (1) Tj ET Q q 0 0 0 rg BT 455.15 479.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 479.42 Td (306) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 479.42 Td (476) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 465.32 Td (Other financial expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 464.42 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 464.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 464.42 Td (400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 450.32 Td (Convertible debt amendments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 449.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 449.42 Td (322) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 449.42 Td (265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 435.32 Td (Change in the fair value of convertible debt embedded derivative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.60 434.42 Td (1,583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 434.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 434.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.50 420.32 Td (Foreign exchange loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.60 419.42 Td (1,476) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.60 419.42 Td (3,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.60 419.42 Td (1,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 405.32 Td (T) Tj ET Q q 0 0 0 rg BT 76.91 405.32 Td (otal financial expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.50 404.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.60 404.42 Td (6,876) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 404.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.60 404.42 Td (8,422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 404.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.60 404.42 Td (7,520) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.25 Td (For the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.28 379.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.28 379.25 Td (, interest on loans included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.25 379.25 Td ($4,872,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.25 379.25 Td ( related to convertible debt issued in 2018, 2016 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.25 Td (and 2015, the venture debt issued in 2018 and government loans granted in 2015 \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.04 367.25 Td ($4,094,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.04 367.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.48 367.25 Td ($3,039,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.48 367.25 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.25 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.08 355.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 355.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.52 355.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 355.25 Td (, respectively\). \(See Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.37 355.25 Td (14.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.87 355.25 Td ( to the Consolidated Financial Statements\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (The net foreign exchange gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.44 334.25 Td ($366,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.94 334.25 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.40 334.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.99 334.25 Td ( \(2017: net foreign exchange loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td ($1,401,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 322.25 Td (; 2016: net foreign exchange gain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.12 322.25 Td ($593,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.62 322.25 Td (\) arises primarily from euro-based monetary liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.25 Td (For the year ended December 31, 2018, net expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.53 301.25 Td ($265,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.03 301.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.86 301.25 Td ($322,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.36 301.25 Td ( for the year ended December 31, 2017\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (recognized related to the convertible debt amendments and other financial expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.69 289.25 Td ($400,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.19 289.25 Td ( correspond to costs related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.25 Td (the early retirement of debt after the repayment \(see Note 14.1 to the Consolidated Financial Statements\). For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.25 Td (December31, 2016, expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.51 265.25 Td ($1,583,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.51 265.25 Td ( were recognized related to the change in fair value of the convertible debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (embedded derivative. \(See Note) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.28 253.25 Td (14.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.78 253.25 Td ( to the Consolidated Financial Statements\). Other financial expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 253.25 Td ($83,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 253.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.25 Td (years ended December 31, 2016 correspond to costs related to the embedded derivative.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 208.25 Td (4.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 208.25 Td (. Cost of r) Tj ET Q q 0 0 0 rg BT 104.03 208.25 Td (evenue and operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.25 Td (The tables below present the cost of revenue and operating expenses by nature of expense :) Tj ET Q endstream endobj 263 0 obj <> endobj 264 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-26) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 689.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 689.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 689.50 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 689.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 689.50 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 689.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 689.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 689.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 689.50 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 659.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 659.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 659.50 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 659.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 659.50 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 659.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 659.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 659.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 659.50 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 629.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 629.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 629.50 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 629.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 629.50 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 629.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 629.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 629.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 629.50 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 599.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 599.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 599.50 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 599.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 599.50 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 599.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 599.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 599.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 599.50 43.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 715.5 m 467 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 715.5 m 472 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 715.5 m 514 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 715.5 m 519 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 715.5 m 562 715.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 702.5 m 420 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 702.5 m 467 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 702.5 m 472 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 702.5 m 514 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 702.5 m 519 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 702.5 m 562 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 584.5 m 467 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 584.5 m 514 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 584.5 m 562 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 584.5 m 467 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 570.5 m 467 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 568.5 m 467 568.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 584.5 m 514 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 570.5 m 514 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 568.5 m 514 568.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 584.5 m 562 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 570.5 m 562 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 568.5 m 562 568.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 719.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 719.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.10 719.73 Td (Y) Tj ET Q q 0 0 0 rg BT 454.43 719.73 Td (ear) Tj ET Q q 0 0 0 rg BT 465.02 719.73 Td ( ended December) Tj ET Q q 0 0 0 rg BT 523.97 719.73 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 706.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.00 706.73 Td (Note) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.00 706.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.50 706.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 706.73 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 693.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 693.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.15 693.73 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 680.07 Td (Included in cost of revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 665.07 Td (Cost of components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.50 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.60 664.17 Td (20,277) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.50 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 664.17 Td (22,137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 664.17 Td (19,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 650.07 Td (Depreciation and impairment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.50 649.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.60 649.17 Td (1,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.60 649.17 Td (1,037) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.60 649.17 Td (1,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 635.07 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.50 634.17 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 634.17 Td (157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 634.17 Td (157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 634.17 Td (158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 620.07 Td (W) Tj ET Q q 0 0 0 rg BT 79.54 620.07 Td (ages and benefits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.60 619.17 Td (2,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.60 619.17 Td (2,233) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.60 619.17 Td (2,368) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 605.07 Td (Share-based payment expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.00 604.17 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 604.17 Td (1) Tj ET Q q 0 0 0 rg BT 458.15 604.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 604.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 604.17 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 590.07 Td (Assembly services, royalties and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.60 589.17 Td (1,507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.60 589.17 Td (1,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.60 589.17 Td (1,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.50 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.60 574.17 Td (25,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.50 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 574.17 Td (27,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 574.17 Td (24,362) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 511.50 330.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 511.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 511.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 511.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 511.50 40.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 511.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 511.50 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 511.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 511.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 481.50 330.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 481.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 481.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 481.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 481.50 40.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 481.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 481.50 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 481.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 481.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 451.50 330.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 451.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 451.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 451.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 451.50 40.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 451.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 451.50 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 451.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 451.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 421.50 330.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 421.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 421.50 42.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 421.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 421.50 40.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 421.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 421.50 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 421.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 421.50 42.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 537.5 m 470 537.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 537.5 m 475 537.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 537.5 m 516 537.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516 537.5 m 521 537.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 537.5 m 563 537.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 524.5 m 426 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 524.5 m 470 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 524.5 m 475 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 524.5 m 516 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516 524.5 m 521 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 524.5 m 563 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 406.5 m 470 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 406.5 m 516 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 406.5 m 563 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 406.5 m 470 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 392.5 m 470 392.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 390.5 m 470 390.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 406.5 m 516 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 392.5 m 516 392.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 390.5 m 516 390.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 406.5 m 563 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 392.5 m 563 392.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 390.5 m 563 390.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.60 541.73 Td (Y) Tj ET Q q 0 0 0 rg BT 457.93 541.73 Td (ear) Tj ET Q q 0 0 0 rg BT 468.52 541.73 Td ( ended December) Tj ET Q q 0 0 0 rg BT 527.47 541.73 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 528.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.50 528.73 Td (Note) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.50 528.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 528.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.50 528.73 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 515.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.50 515.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.65 515.73 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 502.07 Td (Included in operating expenses \(between gross profit and operating result\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 487.07 Td (Depreciation and impairment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 486.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.50 486.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.60 486.17 Td (1,81) Tj ET Q q 0 0 0 rg BT 461.10 486.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 486.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.60 486.17 Td (1,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.50 486.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.60 486.17 Td (1,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 472.07 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 471.17 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.60 471.17 Td (2,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.60 471.17 Td (2,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.60 471.17 Td (2,945) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 457.07 Td (W) Tj ET Q q 0 0 0 rg BT 79.54 457.07 Td (ages and benefits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.60 456.17 Td (22,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.60 456.17 Td (26,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 456.17 Td (27,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 442.07 Td (Share-based payment expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 441.17 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.60 441.17 Td (1,1) Tj ET Q q 0 0 0 rg BT 456.10 441.17 Td (1) Tj ET Q q 0 0 0 rg BT 461.10 441.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.60 441.17 Td (1,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.60 441.17 Td (1,804) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 427.07 Td (Foreign exchange gains and losses related to hedges of euro) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 426.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 426.17 Td (99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 426.22 Td (\(27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 426.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 412.07 Td (Other) Tj ET Q q 0 0 0 rg BT 92.87 412.07 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.60 411.17 Td (12,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.60 411.17 Td (8,51) Tj ET Q q 0 0 0 rg BT 507.10 411.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 411.17 Td (13,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.50 396.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.60 396.17 Td (39,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 396.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.60 396.17 Td (40,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.50 396.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 396.17 Td (47,405) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 359.00 Td (4.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 359.00 Td (. Employee benefits expense) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 300.50 317.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 300.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 300.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 300.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 300.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 300.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 300.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 300.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 300.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 270.50 317.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 270.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 270.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 270.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 270.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 270.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 270.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 270.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 270.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 240.50 317.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 240.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 240.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 240.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 240.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 240.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 240.50 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 240.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 240.50 45.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 326.5 m 464 326.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 326.5 m 468 326.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 326.5 m 513 326.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 326.5 m 517 326.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 326.5 m 562 326.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 313.5 m 415 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 313.5 m 464 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 313.5 m 513 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 313.5 m 562 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 225.5 m 464 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 225.5 m 513 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 225.5 m 562 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 225.5 m 464 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 211.5 m 464 211.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 209.5 m 464 209.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 225.5 m 513 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 211.5 m 513 211.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 209.5 m 513 209.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 225.5 m 562 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 211.5 m 562 211.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 209.5 m 562 209.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 330.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 372.50 330.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.60 330.73 Td (Y) Tj ET Q q 0 0 0 rg BT 451.93 330.73 Td (ear) Tj ET Q q 0 0 0 rg BT 462.52 330.73 Td ( ended December) Tj ET Q q 0 0 0 rg BT 521.47 330.73 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 317.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 317.73 Td (Note) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 317.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 317.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.00 317.73 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 304.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 372.50 304.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 304.73 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 291.07 Td (W) Tj ET Q q 0 0 0 rg BT 60.54 291.07 Td (ages and salaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 290.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 290.17 Td (18,996) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 290.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 290.17 Td (21,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 290.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 290.17 Td (22,501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 276.07 Td (Social security costs and other payroll taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 275.17 Td (5,805) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 275.17 Td (6,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 275.17 Td (7,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 261.07 Td (Other benefits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 260.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 260.17 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 260.17 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 246.07 Td (Pension costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 245.17 Td (88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 245.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 245.17 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 231.07 Td (Share-based payment expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.00 230.17 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 230.17 Td (1,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 230.17 Td (1,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 230.17 Td (1,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 216.07 Td (T) Tj ET Q q 0 0 0 rg BT 74.91 216.07 Td (otal employee benefits expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 215.17 Td (26,1) Tj ET Q q 0 0 0 rg BT 450.10 215.17 Td (1) Tj ET Q q 0 0 0 rg BT 455.10 215.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 215.17 Td (29,915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 215.17 Td (31,796) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.00 Td (The amount recognized as an expense for defined contributions plans amounts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.07 190.00 Td ($1,369,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.07 190.00 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.53 190.00 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.00 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 178.00 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 178.00 Td ($1,077,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 178.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.77 178.00 Td ($1,230,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.77 178.00 Td ( for the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.71 178.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.71 178.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.14 178.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.14 178.00 Td (, respectively\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 145.00 Td (4.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 145.00 Td (. Resear) Tj ET Q q 0 0 0 rg BT 96.25 145.00 Td (ch and development expense and tax cr) Tj ET Q q 0 0 0 rg BT 263.29 145.00 Td (edit r) Tj ET Q q 0 0 0 rg BT 286.16 145.00 Td (eceivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.00 Td (The research tax credit in France is deducted from corporate income taxes due; if taxes due are not suf) Tj ET Q q 0 0 0 rg BT 458.59 124.00 Td (ficient to cover the full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.00 Td (amount of the credit, the balance is received in cash three years later \(one year later if the Company is below certain size ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.00 Td (criteria\). ) Tj ET Q q 0 0 0 rg BT 85.96 100.00 Td (T) Tj ET Q q 0 0 0 rg BT 91.37 100.00 Td (otal research tax credit receivable as of December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.47 100.00 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.47 100.00 Td ( is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.14 100.00 Td ($2,960,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.14 100.00 Td (, relating to tax credits receivables for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.97 100.00 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.97 100.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.00 Td (which are expected to be recovered in 2019 in cash.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.00 Td (The Company also has research tax credits available in the United Kingdom.) Tj ET Q endstream endobj 265 0 obj <> endobj 266 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (In the year ended December 31, 2017 and 2018, the Company capitalized costs related to the development of the chipsets for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 710.10 Td (TE Category M, the Monarch and Monarch 2. In the year ended December 31, 2016, the costs capitalized related mainly to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (operator certification. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (The reduction of research and development expense from government grants, research tax credit and development costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (capitalized was as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 615.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 615.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 615.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 615.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 615.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 615.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 615.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 585.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 585.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 585.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 585.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 555.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 555.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 555.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 555.60 45.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 641.6 m 465 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 641.6 m 469 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 641.6 m 514 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 641.6 m 518 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 641.6 m 563 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 628.6 m 465 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 628.6 m 514 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 628.6 m 563 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 540.6 m 465 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 540.6 m 514 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 540.6 m 563 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 540.6 m 465 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 526.6 m 465 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 524.6 m 465 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 540.6 m 514 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 526.6 m 514 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 524.6 m 514 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 540.6 m 563 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 526.6 m 563 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 524.6 m 563 524.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 645.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.60 645.83 Td (Y) Tj ET Q q 0 0 0 rg BT 452.93 645.83 Td (ear) Tj ET Q q 0 0 0 rg BT 463.52 645.83 Td ( ended December) Tj ET Q q 0 0 0 rg BT 522.47 645.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 632.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 632.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 632.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 632.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 619.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.65 619.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 606.17 Td (Research and development costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 605.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 605.27 Td (30,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 605.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 605.27 Td (33,318) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 605.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 605.27 Td (34,969) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 591.17 Td (Research tax credit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.30 590.32 Td (\(1,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 590.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 590.32 Td (\(3,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 590.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 590.32 Td (\(3,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 590.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 576.17 Td (Government and other grants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.30 575.32 Td (\(1,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 575.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 575.32 Td (\(3,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 575.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 575.32 Td (\(1,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 575.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 561.17 Td (Development costs capitalized \(*\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 560.32 Td (\(22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 560.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 560.32 Td (\(1,931) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 560.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 560.32 Td (\(3,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 560.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 546.17 Td (Amortization of capitalized development costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 545.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 545.27 Td (232) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 545.27 Td (447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 531.17 Td (T) Tj ET Q q 0 0 0 rg BT 75.91 531.17 Td (otal research and development expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 530.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 530.27 Td (26,334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 530.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 530.27 Td (25,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 530.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 530.27 Td (27,909) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET 1 1 1 rg /GS0 gs 49.50 520.34 121.69 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 514.10 Td (\(*\) Net of Research tax credit for ) Tj ET Q BT /F1 9.00 Tf ET 1 1 1 rg /GS0 gs 171.19 520.34 33.75 -9.09 re f /GS0 gs q 0 0 0 rg BT 171.19 514.10 Td ($459,000) Tj ET Q BT /F1 9.00 Tf ET 1 1 1 rg /GS0 gs 204.94 520.34 17.49 -9.09 re f /GS0 gs q 0 0 0 rg BT 204.94 514.10 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET 1 1 1 rg /GS0 gs 222.44 520.34 33.75 -9.09 re f /GS0 gs q 0 0 0 rg BT 222.44 514.10 Td ($259,000) Tj ET Q BT /F1 9.00 Tf ET 1 1 1 rg /GS0 gs 256.19 520.34 229.08 -9.09 re f /GS0 gs q 0 0 0 rg BT 256.19 514.10 Td ( for the years ended December 31, 2018 and 2017, respectively) Tj ET Q q 0 0 0 rg BT 483.02 514.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.27 514.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 469.10 Td (. Income tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (The major components of income tax expense are:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 402.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 402.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 402.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 402.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 402.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 402.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 402.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 372.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 372.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 372.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 372.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 372.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 372.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 372.60 45.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 428.6 m 464 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 428.6 m 468 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 428.6 m 513 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 428.6 m 517 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 428.6 m 562 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 415.6 m 464 415.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 415.6 m 513 415.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 415.6 m 562 415.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 357.6 m 464 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 357.6 m 513 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 357.6 m 562 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 357.6 m 464 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 343.6 m 464 343.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 341.6 m 464 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 357.6 m 513 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 343.6 m 513 343.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 341.6 m 513 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 357.6 m 562 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 343.6 m 562 343.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 341.6 m 562 341.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 432.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.60 432.83 Td (Y) Tj ET Q q 0 0 0 rg BT 451.93 432.83 Td (ear) Tj ET Q q 0 0 0 rg BT 462.52 432.83 Td (endedDecember) Tj ET Q q 0 0 0 rg BT 521.47 432.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 419.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 419.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 419.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.00 419.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 406.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 406.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 393.17 Td (Consolidated Statement of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 378.17 Td (Current income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 377.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 377.27 Td (272) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 377.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 377.27 Td (273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 377.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 377.27 Td (210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 363.17 Td (Deferred income tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 362.27 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 362.27 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 362.32 Td (\(1,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 362.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 348.17 Td (Income tax expense \(benefit\) reported in the Consolidated Statement of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 347.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 347.27 Td (284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 347.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 347.27 Td (300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 347.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 347.32 Td (\(968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 347.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 322.10 Td ( reconciliation of income taxes computed at the French statutory rate \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.90 322.10 Td (34.43%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.73 322.10 Td ( for the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.67 322.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.67 322.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 310.10 Td (; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.72 310.10 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.05 310.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.83 310.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.83 310.10 Td (\) to the income tax expense \(benefit\) is as follows: ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 260.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 260.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 260.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 260.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 260.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 260.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 260.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 230.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 230.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 230.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 230.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 230.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 230.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 230.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 200.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 200.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 200.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 200.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 200.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 200.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 200.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 169.60 366.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 169.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 169.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 169.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 169.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 169.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 169.60 45.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 286.6 m 464 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 286.6 m 468 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 286.6 m 513 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 286.6 m 517 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 286.6 m 562 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 273.6 m 464 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 273.6 m 513 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 273.6 m 562 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 169.60000000000002 m 464 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 169.60000000000002 m 513 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 169.60000000000002 m 562 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 169.60000000000002 m 464 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 155.60000000000002 m 464 155.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 153.60000000000002 m 464 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 169.60000000000002 m 513 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 155.60000000000002 m 513 155.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 153.60000000000002 m 513 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 169.60000000000002 m 562 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 155.60000000000002 m 562 155.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 153.60000000000002 m 562 153.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 290.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.60 290.83 Td (Y) Tj ET Q q 0 0 0 rg BT 451.93 290.83 Td (ear) Tj ET Q q 0 0 0 rg BT 462.52 290.83 Td ( ended December) Tj ET Q q 0 0 0 rg BT 521.47 290.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 277.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 277.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 277.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.00 277.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 264.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 264.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 251.17 Td (Profit \(loss\) before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 250.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.30 250.32 Td (\(24,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 250.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 250.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.30 250.32 Td (\(25,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 250.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 250.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 250.32 Td (\(37,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 250.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 236.17 Td (At France) Tj ET Q q 0 0 0 rg BT 94.26 236.17 Td (s statutory income tax rate of 28% \(34.43% in 2016 and 2017\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.30 235.32 Td (\(8,436) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 235.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.30 235.32 Td (\(8,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 235.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 235.32 Td (\(10,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 235.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 221.17 Td (Non-deductible share-based payment expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 220.27 Td (386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 220.27 Td (564) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 220.27 Td (507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 206.17 Td (T) Tj ET Q q 0 0 0 rg BT 57.26 206.17 Td (ax credits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.80 205.32 Td (\(676) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 205.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.30 205.32 Td (\(1,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 205.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 205.32 Td (\(848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 205.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 191.17 Td (Permanent dif) Tj ET Q q 0 0 0 rg BT 107.78 191.17 Td (ferences and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.80 190.32 Td (\(567) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 190.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.80 190.32 Td (\(329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 190.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 190.32 Td (\(596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 190.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 176.17 Td (Unrecognized benefit of tax losses carryforward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 174.27 Td (9,577) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 174.27 Td (10,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 174.27 Td (10,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 160.17 Td (Income tax expense \(income\) reported in the Consolidated Statement of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 159.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 159.27 Td (284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 159.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 159.27 Td (300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 159.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 159.32 Td (\(968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 159.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 267 0 obj <> endobj 268 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (Significant ) Tj ET Q q 0 0 0 rg BT 95.88 722.10 Td (components ) Tj ET Q q 0 0 0 rg BT 146.71 722.10 Td (of ) Tj ET Q q 0 0 0 rg BT 157.54 722.10 Td (the ) Tj ET Q q 0 0 0 rg BT 172.25 722.10 Td (Company) Tj ET Q q 0 0 0 rg BT 213.92 722.10 Td (s ) Tj ET Q q 0 0 0 rg BT 220.31 722.10 Td (deferred ) Tj ET Q q 0 0 0 rg BT 256.12 722.10 Td (tax ) Tj ET Q q 0 0 0 rg BT 270.83 722.10 Td (assets ) Tj ET Q q 0 0 0 rg BT 296.66 722.10 Td (and ) Tj ET Q q 0 0 0 rg BT 313.60 722.10 Td (liabilities ) Tj ET Q q 0 0 0 rg BT 353.32 722.10 Td (are ) Tj ET Q q 0 0 0 rg BT 368.03 722.10 Td (as ) Tj ET Q q 0 0 0 rg BT 378.86 722.10 Td (follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 632.60 235.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 632.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 632.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 632.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 632.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 632.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 632.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 632.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 632.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 632.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 632.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 632.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 632.60 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 604.60 235.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 604.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 604.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 604.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 604.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 604.60 4.00 -14.00 re f /GS0 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1 rg /GS0 gs 380.00 548.60 42.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 548.60 5.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 548.60 42.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 548.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 548.60 42.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 548.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 548.60 43.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 519.60 235.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 519.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 519.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 519.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 519.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 519.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 519.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 519.60 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 489.60 235.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 489.60 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 489.60 42.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 489.60 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 489.60 42.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 489.60 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 489.60 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gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 452.6 m 515 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 467.6 m 562 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 454.6 m 562 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 452.6 m 562 452.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.35 686.83 Td (Consolidated Statement of Financial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.70 678.83 Td (Position) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.85 686.83 Td (Consolidated Statement of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.85 678.83 Td (Operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.25 664.83 Td (December) Tj ET Q q 0 0 0 rg BT 365.82 664.83 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.60 664.83 Td (Y) Tj ET Q q 0 0 0 rg BT 455.93 664.83 Td (ear) Tj ET Q q 0 0 0 rg BT 466.52 664.83 Td ( ended December) Tj ET Q q 0 0 0 rg BT 525.47 664.83 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.50 650.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET 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BT 357.15 581.17 Td (121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 581.17 Td (74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 581.17 Td (126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.80 581.22 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 581.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 581.22 Td (\(46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 581.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 567.17 Td (Cash flow hedge) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.80 567.22 Td (\(7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 567.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.15 567.17 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 567.22 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 567.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 567.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 567.17 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 567.22 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 567.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 553.17 Td (Remeasurement of non-monetary accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 553.17 Td (264) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.80 553.22 Td (\(327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 553.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 553.17 Td (87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 553.17 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.80 553.22 Td (\(591) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 553.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 553.17 Td (414) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 537.27 Td (Convertible debts and venture debt - liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.15 537.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 537.27 Td (981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 537.27 Td (235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 537.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 537.27 Td (981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 537.32 Td (\(746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 537.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 523.17 Td (Convertible debts and venture debt - equity component) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.15 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.60 523.17 Td (1,818) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 510.17 Td (Other provisions and accruals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.80 510.22 Td (\(29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 510.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.80 510.22 Td (\(64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 510.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.80 510.22 Td (\(460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 510.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.80 510.22 Td (\(15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 510.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.80 510.22 Td (\(34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 510.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 510.22 Td (\(396) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 510.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 494.27 Td (From subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.15 494.27 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 494.27 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 494.27 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 494.27 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 494.27 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 494.32 Td (\(17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 494.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 480.17 Td (Loss available for of) Tj ET Q q 0 0 0 rg BT 133.88 480.17 Td (fsetting against future taxable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 470.22 Td (income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.15 472.27 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.80 472.32 Td (\(270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 472.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.80 472.32 Td (\(672) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 472.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.80 472.32 Td (\(199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 472.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.80 472.32 Td (\(276) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 472.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 472.32 Td (\(402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 472.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 458.17 Td ( ) Tj ET Q q 0 0 0 rg BT 71.32 458.17 Td (T) Tj ET Q q 0 0 0 rg BT 76.73 458.17 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.50 458.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.15 458.17 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 458.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 458.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.50 458.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 458.17 Td (691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 458.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 458.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 458.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 458.17 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.50 458.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 458.22 Td (\(1,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 458.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (The changes in deferred tax assets and liabilities were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 389.60 352.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 389.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 389.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 389.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 389.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 389.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 389.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 359.60 352.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 359.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 359.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 359.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 359.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 359.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 359.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 329.60 352.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 329.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 329.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 329.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 329.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 329.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 329.60 45.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 419.6 m 458 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 404.6 m 458 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 419.6 m 462 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 419.6 m 511 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 404.6 m 511 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 419.6 m 515 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 419.6 m 560 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 404.6 m 560 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 404.6 m 458 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 329.6 m 458 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 329.6 m 511 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 329.6 m 560 329.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 315.6 m 458 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 313.6 m 458 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 315.6 m 511 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 313.6 m 511 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 315.6 m 560 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 313.6 m 560 313.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.50 408.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.00 408.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.00 408.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.15 393.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 379.27 Td (As of January 1st) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.50 379.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 379.27 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.50 379.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 379.27 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 379.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 379.27 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 364.27 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 364.27 Td (ax expense \(income\) during the year recognised in Profit or Loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 364.27 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 364.27 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.30 364.32 Td (\(1,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.15 364.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 349.27 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 349.27 Td (ax expense during the year recognised in equity ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 251.18 353.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 349.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 349.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 349.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.65 349.27 Td (1,818) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 334.27 Td (Ef) Tj ET Q q 0 0 0 rg BT 61.85 334.27 Td (fect of foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 334.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 334.27 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.80 334.32 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.15 334.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 319.27 Td (As at December 31st) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.50 319.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 319.27 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.50 319.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 319.27 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 319.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 319.27 Td (691) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 295.90 Td (\(1\) Relates to the split accounting of the convertible debts and the venture debt issued with an equity component) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.90 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.94 274.90 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.53 274.90 Td ( the Company had accumulated tax losses which arose in France of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.56 274.90 Td ($265,873,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.56 274.90 Td ( that are available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.90 Td (for of) Tj ET Q q 0 0 0 rg BT 71.81 262.90 Td (fset against future taxable profits of Sequans Communications S.A) Tj ET Q q 0 0 0 rg BT 338.15 262.90 Td ( within a limit of one million euro per year) Tj ET Q q 0 0 0 rg BT 508.54 262.90 Td (, plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.71 262.90 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.04 262.90 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.90 Td (the profit exceeding this limit. Remaining unapplied losses would continue to be carried forward indefinitely) Tj ET Q q 0 0 0 rg BT 484.02 250.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.90 Td (Deferred tax assets were recognized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.64 229.90 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.64 229.90 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.64 229.90 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.64 229.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.08 229.90 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.08 229.90 Td ( only to the extent that deferred tax liabilities existed relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.90 Td (same taxable entity) Tj ET Q q 0 0 0 rg BT 126.04 217.90 Td (, which are expected to reverse in the same period as the asset or into which a tax loss may be carried ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.90 Td (forward.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 163.90 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 163.90 Td (. Earnings \(loss\) per) Tj ET Q q 0 0 0 rg BT 139.88 163.90 Td ( shar) Tj ET Q q 0 0 0 rg BT 161.09 163.90 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.90 Td (Basic earnings \(loss\) per share amounts are calculated by dividing net income \(loss\) for the year attributable to all shareholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.90 Td (of the Company by the weighted average number of all shares outstanding during the year) Tj ET Q q 0 0 0 rg BT 409.40 130.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.90 Td (Diluted earnings per share amounts are calculated by dividing the net earnings attributable to equity holders of the Company by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.90 Td (the weighted average number of shares outstanding during the year plus the weighted average number of shares that would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.90 Td (issued on the exercise of all the dilutive stock options and warrants, and upon vesting of restricted stock awards as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.90 Td (conversion of convertible debt. Dilution is defined as a reduction of earnings per share or an increase of loss per share. ) Tj ET Q q 0 0 0 rg BT 525.73 73.90 Td (As the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.90 Td (exercise of all outstanding stock options and warrants as well as vesting as restricted stock awards and conversion of ) Tj ET Q endstream endobj 269 0 obj <> endobj 270 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (convertible debt, would decrease loss per share, they are considered to be anti-dilutive and excluded from the calculation of loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (per share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.10 Td (The following reflects the income and share data used in the basic and diluted earnings \(loss\) per share computations:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 633.60 336.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 633.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 633.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 633.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 633.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 633.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 633.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 605.60 336.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 605.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 605.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 605.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 605.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 605.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 605.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 577.60 336.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 577.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 577.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 577.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 577.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 577.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 577.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 547.60 336.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 547.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 547.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 547.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 547.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 547.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 547.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 518.60 336.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 518.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 518.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 518.60 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 657.6 m 444 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 657.6 m 448 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 657.6 m 503 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 657.6 m 507 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 657.6 m 562 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 645.6 m 444 645.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 645.6 m 503 645.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 645.6 m 562 645.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 532.6 m 444 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 532.6 m 503 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 532.6 m 562 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 532.6 m 444 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 518.6 m 444 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 532.6 m 503 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 518.6 m 503 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 532.6 m 562 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 518.6 m 562 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 518.6 m 444 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 505.6 m 444 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 503.6 m 444 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 518.6 m 503 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 505.6 m 503 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 503.6 m 503 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 518.6 m 562 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 505.6 m 562 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 503.6 m 562 503.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 661.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.60 661.68 Td (Y) Tj ET Q q 0 0 0 rg BT 436.93 661.68 Td (ear) Tj ET Q q 0 0 0 rg BT 447.52 661.68 Td ( ended December) Tj ET Q q 0 0 0 rg BT 506.47 661.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 649.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.00 649.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.00 649.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.00 649.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 637.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.50 637.68 Td (\(in thousands, except shar) Tj ET Q q 0 0 0 rg BT 483.26 637.68 Td (e and per) Tj ET Q q 0 0 0 rg BT 515.11 637.68 Td ( shar) Tj ET Q q 0 0 0 rg BT 532.08 637.68 Td (e data\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 624.17 Td (Profit \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 624.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.95 624.17 Td (\(24,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.80 624.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.50 624.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.95 624.17 Td (\(26,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.80 624.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.50 624.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.95 624.17 Td (\(36,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.80 624.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 610.17 Td (W) Tj ET Q q 0 0 0 rg BT 78.54 610.17 Td (eighted average number of shares outstanding for basic EPS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.75 610.17 Td (63,805,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.75 610.17 Td (77,668,404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.75 610.17 Td (93,767,005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 596.17 Td (Net ef) Tj ET Q q 0 0 0 rg BT 94.12 596.17 Td (fect of dilutive stock options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 596.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.80 596.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.80 596.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 582.17 Td (Net ef) Tj ET Q q 0 0 0 rg BT 94.12 582.17 Td (fect of dilutive warrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 582.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.80 582.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.80 582.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 568.17 Td (Net ef) Tj ET Q q 0 0 0 rg BT 94.12 568.17 Td (fect of vesting of restricted stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 567.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.80 567.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.80 567.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 553.17 Td (Net ef) Tj ET Q q 0 0 0 rg BT 94.12 553.17 Td (fect of conversion of convertible notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 552.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.80 552.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.80 552.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 538.17 Td (W) Tj ET Q q 0 0 0 rg BT 78.14 538.17 Td (eighted average number of shares outstanding for diluted EPS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.75 537.27 Td (63,805,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.75 537.27 Td (77,668,404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.75 537.27 Td (93,767,005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 523.17 Td (Basic earnings \(loss\) per share) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 391.50 522.47 Td ($) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 416.85 522.47 Td (\(0.39) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 439.80 522.47 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 450.50 522.47 Td ($) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 475.85 522.47 Td (\(0.34) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 498.80 522.47 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 509.50 522.47 Td ($) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 534.85 522.47 Td (\(0.39) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 557.80 522.47 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 509.17 Td (Diluted earnings \(loss\) per share) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 391.50 508.47 Td ($) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 416.85 508.47 Td (\(0.39) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 439.80 508.47 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 450.50 508.47 Td ($) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 475.85 508.47 Td (\(0.34) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 498.80 508.47 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 509.50 508.47 Td ($) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 534.85 508.47 Td (\(0.39) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 557.80 508.47 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 271 0 obj <> endobj 272 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (7. Pr) Tj ET Q q 0 0 0 rg BT 69.87 722.25 Td (operty) Tj ET Q q 0 0 0 rg BT 97.08 722.25 Td (, plant and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 701.25 Td (Property) Tj ET Q q 0 0 0 rg BT 83.29 701.25 Td (, plant and equipment include:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 658.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 658.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 658.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 658.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 658.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 658.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 658.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 658.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 658.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 630.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 630.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 630.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 630.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 630.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 630.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 630.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 630.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 630.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 602.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 602.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 602.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 602.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 602.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 602.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 602.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 602.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 602.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 574.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 574.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 574.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 574.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 574.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 574.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 574.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 574.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 574.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 546.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 546.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 546.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 546.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 546.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 518.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 518.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 518.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 518.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 518.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 490.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 490.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 490.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 490.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 490.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 462.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 462.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 462.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 462.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 462.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 462.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 462.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 462.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 462.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 434.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 434.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 434.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 434.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 434.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 434.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 434.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 434.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 434.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 406.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 406.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 406.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 406.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 406.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 378.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 378.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 378.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 378.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 378.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 350.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 350.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 350.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 350.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 350.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 350.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 321.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 321.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 321.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 321.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 321.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 321.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 321.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 321.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 321.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 293.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 293.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 293.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 293.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 293.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 293.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 293.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 293.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 293.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 265.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 265.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 265.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 265.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 265.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 265.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 265.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 265.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 265.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 237.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 237.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 237.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 237.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 237.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 237.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 237.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 237.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 237.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 209.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 209.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 209.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 209.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 209.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 209.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 209.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 209.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 209.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 181.75 277.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 181.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 181.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 181.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 181.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 181.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 181.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 181.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 181.75 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 670.75 m 386 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 670.75 m 445 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 670.75 m 504 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 670.75 m 563 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 588.75 m 386 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 588.75 m 445 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 588.75 m 504 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 588.75 m 563 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 532.75 m 386 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 532.75 m 445 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 532.75 m 504 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 532.75 m 563 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 462.75 m 386 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 462.75 m 445 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 462.75 m 504 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 462.75 m 563 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 462.75 m 386 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 448.75 m 386 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 462.75 m 445 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 448.75 m 445 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 462.75 m 504 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 448.75 m 504 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 462.75 m 563 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 448.75 m 563 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 378.75 m 386 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 378.75 m 445 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 378.75 m 504 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 378.75 m 563 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 307.75 m 386 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 307.75 m 445 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 307.75 m 504 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 307.75 m 563 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 237.75 m 386 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 223.75 m 386 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 237.75 m 445 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 223.75 m 445 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 237.75 m 504 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 223.75 m 504 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 237.75 m 563 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 223.75 m 563 223.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.65 682.83 Td (Leasehold) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.60 674.83 Td (impr) Tj ET Q q 0 0 0 rg BT 350.34 674.83 Td (ovements) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.40 682.83 Td (Plant and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.75 674.83 Td (equipment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.05 682.83 Td (IT) Tj ET Q q 0 0 0 rg BT 462.35 682.83 Td (andoffice) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.75 674.83 Td (equipment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.25 674.98 Td (T) Tj ET Q q 0 0 0 rg BT 531.22 674.98 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 662.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.15 662.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 649.32 Td (Cost:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 635.32 Td (At January 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.50 635.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.25 635.32 Td (1,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 635.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 635.32 Td (25,167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 635.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 635.32 Td (4,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 635.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 635.32 Td (30,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 621.32 Td (Additions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 621.32 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 621.32 Td (2,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 621.32 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 621.32 Td (2,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 607.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 607.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.80 607.37 Td (\(345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 607.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.80 607.37 Td (\(643) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 607.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 607.37 Td (\(988) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 607.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 593.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 593.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.45 593.32 Td (\(30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 593.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.80 593.37 Td (\(221) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 593.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 593.37 Td (\(51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 593.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 593.37 Td (\(302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 593.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 579.32 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.25 579.32 Td (1,303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 579.32 Td (27,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 579.32 Td (3,749) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 579.32 Td (32,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 565.32 Td (Additions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.80 565.32 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 565.32 Td (2,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 565.32 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 565.32 Td (3,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 551.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.45 551.32 Td (\(87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 551.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 551.37 Td (\(4,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 551.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 551.37 Td (\(81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 551.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 551.37 Td (\(4,495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 551.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 537.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 537.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 537.32 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 537.32 Td (1) Tj ET Q q 0 0 0 rg BT 431.15 537.32 Td (1) Tj ET Q q 0 0 0 rg BT 436.15 537.32 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 537.32 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 537.32 Td (163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 523.32 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.25 523.32 Td (1,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 523.32 Td (25,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 523.32 Td (3,761) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 523.32 Td (30,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 509.32 Td (Additions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 509.32 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 509.32 Td (2,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 509.32 Td (80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 509.32 Td (2,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 495.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.45 495.32 Td (\(30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 495.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.80 495.37 Td (\(70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 495.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.80 495.37 Td (\(203) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 495.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 495.37 Td (\(303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 495.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 481.32 Td (Reclassification) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 481.32 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 481.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 481.37 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 481.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 481.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 467.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 467.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.45 467.32 Td (\(7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 467.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.80 467.37 Td (\(64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 467.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 467.37 Td (\(16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 467.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 467.37 Td (\(87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 467.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 453.32 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.50 453.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.25 453.32 Td (1,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 453.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 453.32 Td (28,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 453.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 453.32 Td (3,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 453.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 453.32 Td (32,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 439.32 Td (Depreciation and impairment:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 425.32 Td (At January 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 425.32 Td (578) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 425.32 Td (18,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 425.32 Td (4,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 425.32 Td (23,715) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 411.32 Td (Depreciation char) Tj ET Q q 0 0 0 rg BT 159.76 411.32 Td (ge for the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 411.32 Td (214) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 411.32 Td (2,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 411.32 Td (189) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 411.32 Td (3,081) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 397.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 397.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.80 397.37 Td (\(346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 397.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.80 397.37 Td (\(641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 397.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 397.37 Td (\(987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 397.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 383.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 383.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.45 383.32 Td (\(9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 383.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.80 383.37 Td (\(140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 383.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.80 383.37 Td (\(1) Tj ET Q q 0 0 0 rg BT 490.13 383.37 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 383.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 383.37 Td (\(266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 383.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 369.32 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 369.32 Td (783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 369.32 Td (21,158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 369.32 Td (3,602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 369.32 Td (25,543) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 355.32 Td (Depreciation char) Tj ET Q q 0 0 0 rg BT 159.76 355.32 Td (ge for the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 355.32 Td (226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 355.32 Td (2,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 355.32 Td (129) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 355.32 Td (2,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 341.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.45 341.32 Td (\(87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 341.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 341.37 Td (\(4,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 341.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 341.37 Td (\(81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 341.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 341.37 Td (\(4,495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 341.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 327.32 Td (Reclassification) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 326.42 Td (275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 326.42 Td (326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.80 326.47 Td (\(601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 326.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 326.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 312.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 312.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 312.32 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 312.32 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 312.32 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 312.32 Td (1) Tj ET Q q 0 0 0 rg BT 549.15 312.32 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 298.32 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.25 298.32 Td (1,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 298.32 Td (19,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 298.32 Td (3,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 298.32 Td (23,924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 284.32 Td (Depreciation char) Tj ET Q q 0 0 0 rg BT 159.76 284.32 Td (ge for the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 284.32 Td (188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 284.32 Td (2,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 284.32 Td (167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 284.32 Td (3,060) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 270.32 Td (Disposals) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 367.10 269.62 Td (\(18) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 381.80 269.62 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.80 270.37 Td (\(70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 270.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.80 270.37 Td (\(203) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 270.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 270.37 Td (\(291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 270.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 256.32 Td (Reclassification) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.45 256.32 Td (\(418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 256.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 256.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 256.32 Td (418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 256.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 242.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.35 242.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.45 242.32 Td (\(8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 242.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.80 242.37 Td (\(55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 242.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 242.37 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 242.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 242.37 Td (\(76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 242.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 228.32 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.50 228.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 228.32 Td (957) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 228.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 228.32 Td (22,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 228.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 228.32 Td (3,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 228.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 228.32 Td (26,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 214.32 Td (Net book value:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 200.32 Td (At January 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.50 200.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 200.32 Td (721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 200.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 200.32 Td (6,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 200.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 200.32 Td (194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 200.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 200.32 Td (7,1) Tj ET Q q 0 0 0 rg BT 549.15 200.32 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 186.32 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 186.32 Td (520) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 186.32 Td (5,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 186.32 Td (147) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 186.32 Td (6,659) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 172.32 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 172.32 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 172.32 Td (6,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 172.32 Td (672) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 172.32 Td (6,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 158.32 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.50 158.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.80 158.32 Td (296) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 158.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 158.32 Td (5,825) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 158.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 158.32 Td (150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 158.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 158.32 Td (6,271) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 273 0 obj <> endobj 274 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-31) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 722.25 Td (. Intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 701.25 Td (Intangible assets include:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 648.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 648.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 618.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 618.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 588.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 588.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 558.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 558.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 528.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 528.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 498.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 498.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 468.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 468.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 438.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 438.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 408.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 408.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 378.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 378.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 348.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 348.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 318.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 318.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 288.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 288.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 258.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 258.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 228.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 228.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 198.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 198.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 168.75 427.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 168.75 85.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 661.75 m 562 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 573.75 m 562 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 513.75 m 562 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 453.75 m 562 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 453.75 m 562 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 439.75 m 562 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 437.75 m 562 437.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 363.75 m 562 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 303.75 m 562 303.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 243.75 m 562 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 243.75 m 562 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 229.75 m 562 229.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 227.75 m 562 227.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 666.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.10 681.98 Td (Licenses, capitalized ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.40 673.98 Td (R&Dandother) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.10 665.98 Td (intangible assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 653.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.65 652.98 Td (\(inthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 639.32 Td (Cost:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 624.32 Td (At January 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 623.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 623.42 Td (16,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 609.32 Td (Additions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 608.42 Td (4,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 594.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 593.47 Td (\(3,620) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 593.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 579.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 579.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 578.47 Td (\(47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 578.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 564.32 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 563.42 Td (18,1) Tj ET Q q 0 0 0 rg BT 548.15 563.42 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 549.32 Td (Additions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 548.42 Td (4,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 534.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 533.47 Td (\(64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 533.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 519.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 519.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 518.42 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 504.32 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 503.42 Td (22,715) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 489.32 Td (Additions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 488.42 Td (5,953) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 474.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 473.47 Td (\(3,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 473.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 459.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 459.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 458.47 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 458.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 444.32 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 443.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 443.42 Td (24,821) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 429.32 Td (Depreciation and impairment:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 414.32 Td (At January 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 413.42 Td (1) Tj ET Q q 0 0 0 rg BT 535.65 413.42 Td (1,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 399.32 Td (Amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 398.42 Td (2,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 384.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 383.47 Td (\(3,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 383.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 369.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 369.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 368.47 Td (\(30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 368.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 354.32 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 353.42 Td (10,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 339.32 Td (Amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 338.42 Td (2,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 324.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 323.47 Td (\(64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 323.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 309.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.44 309.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.80 308.47 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 308.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 294.32 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 293.42 Td (13,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 279.32 Td (Amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 278.42 Td (3,103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 264.32 Td (Disposals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 263.47 Td (\(3,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 263.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 249.32 Td (Exchange dif) Tj ET Q q 0 0 0 rg BT 141.35 249.32 Td (ference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 248.47 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 248.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 234.32 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 233.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 233.42 Td (12,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 219.32 Td (Net book value:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 204.32 Td (At January 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 203.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 203.42 Td (5,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 189.32 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 188.42 Td (7,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 174.32 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 173.42 Td (9,562) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 159.32 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 158.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 158.42 Td (12,409) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.25 Td (For the years ended December 31, 2016, 2017 and 2018, the Company identified certain development costs that met the criteria ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.25 Td (for capitalization \(see note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.34 121.25 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.84 121.25 Td (\), in addition to the acquisition of technology licenses.) Tj ET Q endstream endobj 275 0 obj <> endobj 276 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 701.10 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 701.10 Td (. Inventories) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 654.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 654.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 654.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 654.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 626.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 626.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 626.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 626.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 598.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 598.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 598.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 598.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 570.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 570.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 570.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 570.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 542.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 542.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 542.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 542.60 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 678.6 m 464 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 678.6 m 468 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 678.6 m 513 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 678.6 m 517 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 678.6 m 562 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 666.6 m 464 666.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 666.6 m 513 666.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 666.6 m 562 666.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 626.6 m 464 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 626.6 m 513 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 626.6 m 562 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 613.6 m 464 613.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 611.6 m 464 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 613.6 m 513 613.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 611.6 m 513 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 613.6 m 562 613.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 611.6 m 562 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 584.6 m 464 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 584.6 m 513 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 584.6 m 562 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 571.6 m 464 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 569.6 m 464 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 571.6 m 513 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 569.6 m 513 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 571.6 m 562 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 569.6 m 562 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 569.6 m 464 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 571.6 m 464 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 569.6 m 513 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 571.6 m 513 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 569.6 m 562 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 571.6 m 562 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 542.6 m 464 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 542.6 m 513 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 542.6 m 562 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 542.6 m 464 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 529.6 m 464 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 527.6 m 464 527.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 542.6 m 513 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 529.6 m 513 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 527.6 m 513 527.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 542.6 m 562 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 529.6 m 562 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 527.6 m 562 527.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 682.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.50 682.68 Td (At December) Tj ET Q q 0 0 0 rg BT 506.51 682.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 670.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 670.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 670.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.00 670.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 658.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 658.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 645.17 Td (Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 645.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 645.17 Td (4,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 645.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 645.17 Td (2,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 645.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 645.17 Td (4,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 631.17 Td (Finished goods \(at lower of cost or net realizable value\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 631.17 Td (6,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 631.17 Td (5,035) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 631.17 Td (4,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 617.17 Td (T) Tj ET Q q 0 0 0 rg BT 57.26 617.17 Td (otal inventories at cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 617.17 Td (1) Tj ET Q q 0 0 0 rg BT 437.60 617.17 Td (1,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 617.17 Td (7,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 617.17 Td (8,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 603.17 Td (Depreciation of components \(at cost\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 603.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 603.17 Td (277) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 603.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 603.17 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 603.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 603.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 589.17 Td (Depreciation of finished goods) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 589.17 Td (2,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 589.17 Td (593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 589.17 Td (501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 575.17 Td (T) Tj ET Q q 0 0 0 rg BT 57.26 575.17 Td (otal depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 575.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 575.17 Td (2,968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 575.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 575.17 Td (623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 575.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 575.17 Td (501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 561.17 Td (Components, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 561.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 561.17 Td (4,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 561.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 561.17 Td (2,934) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 561.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 561.17 Td (4,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 547.17 Td (Finished goods, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 547.17 Td (4,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 547.17 Td (4,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 547.17 Td (4,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 533.17 Td (T) Tj ET Q q 0 0 0 rg BT 56.91 533.17 Td (otal net inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 533.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 533.17 Td (8,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 533.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 533.17 Td (7,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 533.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 533.17 Td (8,243) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (In the year ended December 31, 2016, there was no significant change in the provision on components and finished goods. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (Finished goods inventory depreciated concerned ) Tj ET Q q 0 0 0 rg BT 245.65 496.10 Td (W) Tj ET Q q 0 0 0 rg BT 254.69 496.10 Td (iMAX finished goods inventory) Tj ET Q q 0 0 0 rg BT 382.08 496.10 Td (, depreciated in previous years as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (anticipated demand from identified customers and projects was canceled, reduced or delayed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 Td (In the year ended December 31, 2017, all the ) Tj ET Q q 0 0 0 rg BT 231.75 463.10 Td (W) Tj ET Q q 0 0 0 rg BT 240.78 463.10 Td (iMAX inventory) Tj ET Q q 0 0 0 rg BT 307.07 463.10 Td (, fully depreciated in previous years, was physically scrapped, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.10 Td (resulting in a provision reversal of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.47 451.10 Td ($2,755,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.47 451.10 Td (. ) Tj ET Q q 0 0 0 rg BT 239.29 451.10 Td (The Company also depreciated the value of inventory for one L) Tj ET Q q 0 0 0 rg BT 492.72 451.10 Td (TE product for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.10 Td (which units on hand were in excess of the units needed to serve the expected demand for identified customers and projects. ) Tj ET Q q 0 0 0 rg BT 544.16 439.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (resulted in a provision of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.98 427.10 Td ($199,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.48 427.10 Td (. ) Tj ET Q q 0 0 0 rg BT 194.30 427.10 Td (The Company further depreciated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.02 427.10 Td ($265,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.52 427.10 Td ( in 2017 related to goods damaged during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.10 Td (production over the course of the year \(recovered from a manufacturing supplier in 2018 in line with the amounts recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.10 Td (under Prepaid Expenses and Other Receivables as of December 31, 2017\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (In the year ended December 31, 2018, the goods damaged and depreciated in 2017 were physically scrapped resulting in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (provision reversal of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.75 370.10 Td ($265,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.25 370.10 Td (. ) Tj ET Q q 0 0 0 rg BT 177.07 370.10 Td (The remaining amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.49 370.10 Td ($501,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.99 370.10 Td ( in depreciation is related to finished goods that have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (damaged or units on hand in excess of the units needed to serve the expected demand for identified customers and projects.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 325.10 Td (. ) Tj ET Q q 0 0 0 rg BT 64.32 325.10 Td (T) Tj ET Q q 0 0 0 rg BT 70.25 325.10 Td (rade r) Tj ET Q q 0 0 0 rg BT 96.44 325.10 Td (eceivables and contract assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 308.10 Td (rade receivables and contract assets are non-interest bearing and generally have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.38 308.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.38 308.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.71 308.10 Td (90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.71 308.10 Td ( day payment terms.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 261.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 261.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 261.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 261.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 261.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 261.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 261.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 233.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 233.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 233.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 233.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 233.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 233.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 233.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 205.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 205.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 205.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 205.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 205.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 205.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 205.60 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 285.6 m 464 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 285.6 m 468 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 285.6 m 513 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 285.6 m 517 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 285.6 m 562 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 273.6 m 464 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 273.6 m 513 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 273.6 m 562 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 191.60000000000002 m 464 191.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 191.60000000000002 m 513 191.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 191.60000000000002 m 562 191.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 191.60000000000002 m 464 191.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 178.60000000000002 m 464 178.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 176.60000000000002 m 464 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 191.60000000000002 m 513 191.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 178.60000000000002 m 513 178.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 176.60000000000002 m 513 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 191.60000000000002 m 562 191.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 178.60000000000002 m 562 178.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 176.60000000000002 m 562 176.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 289.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.50 289.68 Td (At December) Tj ET Q q 0 0 0 rg BT 506.51 289.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 277.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 277.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 277.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.00 277.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 265.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 265.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 252.17 Td (T) Tj ET Q q 0 0 0 rg BT 57.43 252.17 Td (rade receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 252.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 252.17 Td (14,427) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 252.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 252.17 Td (18,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 252.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 252.17 Td (16,758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 238.17 Td (Contract assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 238.17 Td (1,612) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 238.17 Td (3,1) Tj ET Q q 0 0 0 rg BT 499.15 238.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 238.17 Td (2,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 224.17 Td (Unbilled revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 224.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 224.17 Td (355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 224.17 Td (105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 210.17 Td (Unissued credit notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.80 210.22 Td (\(138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 210.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.80 210.22 Td (\(485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 210.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 210.22 Td (\(1,094) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 210.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 196.17 Td (Provisions on trade receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.80 196.22 Td (\(628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 196.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.80 196.22 Td (\(810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 196.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 196.22 Td (\(2,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 196.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 182.17 Td (Net trade receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 182.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 182.17 Td (15,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 182.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 182.17 Td (20,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 182.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 182.17 Td (15,884) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (In the year ended December 31, 2018, the Company recorded unissued credit notes related to special customers programs such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (as rebates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.10 Td (The movements in the provision for impairment of receivables were as follows:) Tj ET Q endstream endobj 277 0 obj <> endobj 278 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-33) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 692.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 692.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 692.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 692.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 664.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 664.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 664.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 664.50 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 716.5 m 464 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 716.5 m 468 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 716.5 m 513 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 716.5 m 517 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 716.5 m 562 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 704.5 m 464 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 704.5 m 513 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 704.5 m 562 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 664.5 m 464 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 651.5 m 464 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 649.5 m 464 649.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 664.5 m 513 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 651.5 m 513 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 649.5 m 513 649.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 664.5 m 562 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 651.5 m 562 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 649.5 m 562 649.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 720.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.75 720.58 Td (December) Tj ET Q q 0 0 0 rg BT 501.32 720.58 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 708.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 708.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 708.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.00 708.58 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 696.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 696.58 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 683.07 Td (At January 1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 683.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 683.07 Td (588) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 683.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 683.07 Td (628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 683.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 683.07 Td (810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 669.07 Td (Char) Tj ET Q q 0 0 0 rg BT 70.85 669.07 Td (ge for the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 669.07 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 669.07 Td (182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 669.07 Td (1,782) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 655.07 Td (At year end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 655.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 655.07 Td (628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 655.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 655.07 Td (810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 655.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 655.07 Td (2,592) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.00 Td (In the year ended December 31, 2018, the Company recognized a provision for impairment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.99 627.00 Td ($1,782,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.99 627.00 Td ( included in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.00 Td (Consolidated Statement of Operations in "General and administration". ) Tj ET Q q 0 0 0 rg BT 336.58 615.00 Td (T) Tj ET Q q 0 0 0 rg BT 342.34 615.00 Td (rade receivables impaired are related primarily to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.00 Td (significantly aged receivables, which the Company no longer expects to collect although still subject to enforcement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.00 Td (As at year end, the aging analysis of trade receivables and contract assets that were not impaired is as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 498.50 176.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.00 498.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 498.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 498.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 498.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 498.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 498.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 498.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 498.50 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 498.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 498.50 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 498.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 498.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 470.50 176.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.00 470.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 470.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 470.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 470.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 470.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 470.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 470.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 470.50 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 470.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 470.50 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 470.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 470.50 50.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229 522.5 m 279 522.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 522.5 m 333 522.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 522.5 m 387 522.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 522.5 m 391 522.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391 522.5 m 442 522.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 522.5 m 446 522.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 522.5 m 508 522.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 522.5 m 512 522.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 522.5 m 562 522.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 527.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.25 527.17 Td (T) Tj ET Q q 0 0 0 rg BT 249.01 527.17 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.50 557.17 Td (Neitherpa) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 547.17 Td (st) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.35 537.17 Td (due nor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.45 527.17 Td (Impaired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.85 527.17 Td (Past due but not impaired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.25 513.12 Td (<30days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.90 513.12 Td (30-60days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.90 513.12 Td (60-120days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.75 513.12 Td (>120days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 501.12 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 489.07 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.50 489.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 489.07 Td (15,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 489.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 489.07 Td (12,995) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.50 489.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 489.07 Td (412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.50 489.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 489.07 Td (374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 489.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 489.07 Td (1,494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.50 489.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 489.07 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 475.07 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.50 475.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 475.07 Td (20,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 475.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 475.07 Td (12,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.50 475.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 475.07 Td (4,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.50 475.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 475.07 Td (1,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 475.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 475.07 Td (1,673) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.50 475.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 475.07 Td (700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 461.07 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.50 461.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 461.07 Td (15,884) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 461.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 461.07 Td (7,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.50 461.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 461.07 Td (5,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.50 461.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 461.07 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 461.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 461.07 Td (471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.50 461.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 461.07 Td (2,788) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.00 Td (The Company does not assign credit risk rating grades to its trade receivables, but assess credit risk at the customer level.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 388.00 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 388.00 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.95 388.00 Td (. Cash and cash equivalents) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 332.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 332.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 332.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 332.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 332.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 332.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 332.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 304.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 304.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 304.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 304.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 304.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 304.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 304.50 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 356.5 m 464 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 356.5 m 468 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 356.5 m 513 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 356.5 m 517 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 356.5 m 562 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 344.5 m 464 344.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 344.5 m 513 344.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 344.5 m 562 344.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 304.5 m 464 304.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 304.5 m 513 304.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 304.5 m 562 304.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 304.5 m 464 304.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 291.5 m 464 291.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 289.5 m 464 289.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 304.5 m 513 304.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 291.5 m 513 291.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 289.5 m 513 289.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 304.5 m 562 304.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 291.5 m 562 291.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 289.5 m 562 289.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 360.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.50 360.58 Td (At December) Tj ET Q q 0 0 0 rg BT 506.51 360.58 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 348.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 348.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 348.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.00 348.58 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 336.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 336.58 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 323.07 Td (Cash at banks) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 323.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 323.07 Td (8,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 323.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 323.07 Td (2,039) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 323.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 323.07 Td (4,577) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 309.07 Td (Cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 309.07 Td (1) Tj ET Q q 0 0 0 rg BT 437.60 309.07 Td (1,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 309.07 Td (909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 309.07 Td (7,509) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 295.07 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 295.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 295.07 Td (20,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 295.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 295.07 Td (2,948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 295.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 295.07 Td (12,086) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.00 Td (Cash at banks earns no interest. Cash equivalents in money market funds are invested for short-term periods depending on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.00 Td (immediate cash requirements of the Company) Tj ET Q q 0 0 0 rg BT 232.96 258.00 Td (, and earn interest at market rates for short-term investments. ) Tj ET Q q 0 0 0 rg BT 478.81 258.00 Td (The fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.00 Td (cash and cash equivalents is equal to book value. Most of the cash and cash equivalents is held in U.S. dollar and euros as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.00 Td (follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 178.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 178.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 178.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 178.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 178.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 178.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 178.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 150.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 150.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 150.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 150.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 150.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 150.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 150.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 122.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 122.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 122.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 122.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 122.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 122.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 122.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 94.50 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 94.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 94.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 94.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 94.50 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 94.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 94.50 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 202.5 m 464 202.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 202.5 m 468 202.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 202.5 m 513 202.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 202.5 m 517 202.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 202.5 m 562 202.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 190.5 m 464 190.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 190.5 m 513 190.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 190.5 m 562 190.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 80.5 m 464 80.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 80.5 m 513 80.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 80.5 m 562 80.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 80.5 m 464 80.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 67.5 m 464 67.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 65.5 m 464 65.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 80.5 m 513 80.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 67.5 m 513 67.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 65.5 m 513 65.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 80.5 m 562 80.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 67.5 m 562 67.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 65.5 m 562 65.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 206.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.50 206.58 Td (At December) Tj ET Q q 0 0 0 rg BT 506.51 206.58 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 194.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 194.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 194.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.00 194.58 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 182.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.65 182.58 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 169.07 Td (U.S. dollar denominated accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 169.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 169.07 Td (19,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 169.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 169.07 Td (1,343) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 169.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 169.07 Td (4,41) Tj ET Q q 0 0 0 rg BT 553.15 169.07 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 155.07 Td (Euro denominated accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 155.07 Td (949) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 155.07 Td (1,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 155.07 Td (7,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 141.07 Td (GBP) Tj ET Q q 0 0 0 rg BT 70.77 141.07 Td ( denominated accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 141.07 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 141.07 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 141.07 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 127.07 Td (SGP) Tj ET Q q 0 0 0 rg BT 69.66 127.07 Td ( denominated accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 127.07 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 127.07 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 127.07 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 113.07 Td (NIS denominated accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 113.07 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 113.07 Td (1) Tj ET Q q 0 0 0 rg BT 504.15 113.07 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 113.07 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 99.07 Td (RMB denominated accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 99.07 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 99.07 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 99.07 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 85.07 Td (Other currencies denominated accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 85.07 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 85.07 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 85.07 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 71.07 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.50 71.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 71.07 Td (20,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 71.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 71.07 Td (2,948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 71.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 71.07 Td (12,086) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 279 0 obj <> endobj 280 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 701.10 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 701.10 Td (. Issued capital and r) Tj ET Q q 0 0 0 rg BT 148.50 701.10 Td (eserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.10 Td (The share capital of Sequans Communications S.A. is denominated in euros, as required by law in France. ) Tj ET Q q 0 0 0 rg BT 476.35 684.10 Td (Any distributions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.10 Td (shareholders are denominated in euros. ) Tj ET Q q 0 0 0 rg BT 207.78 672.10 Td (Amounts of capital and reserves presented in the Consolidated Statements of Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.10 Td (Position in U.S. dollars have been translated using historical exchange rates.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (Authorized capital, in number of shares) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (Authorized capital includes all shares issued as well as all potential shares which may be issued upon exercise of stock options, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (founders' warrants, other warrants, restricted share awards and conversion of convertible debt, or which the shareholders have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (otherwise authorized for specific capital increases.) Tj ET Q q 0 0 0 rg BT 253.58 593.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.08 593.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.66 593.10 Td (, authorized capital was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.57 593.10 Td (156,960,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.57 593.10 Td ( ordinary shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (with a nominal of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.82 581.10 Td (0.02) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.32 581.10 Td ( each \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.97 581.10 Td (98,462,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.97 581.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 581.10 Td (139,359,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.40 581.10 Td ( ordinary shares at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.07 581.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.07 581.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.51 581.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.51 581.10 Td (, respectively\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.10 Td (There is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.49 564.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.92 564.10 Td ( category of authorized shares: ordinary shares.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (Shares issued and fully paid) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 474.60 159.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 474.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 474.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 474.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 474.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 474.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 474.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 474.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 474.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 474.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 474.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 474.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 474.60 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 511.6 m 268 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 511.6 m 272 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 511.6 m 327 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 511.6 m 331 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 511.6 m 386 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 511.6 m 390 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 511.6 m 445 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 511.6 m 449 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 511.6 m 504 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 511.6 m 508 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 511.6 m 563 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 511.6 m 268 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 499.6 m 268 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 511.6 m 272 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 499.6 m 272 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 511.6 m 327 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 499.6 m 327 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 511.6 m 331 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 511.6 m 386 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 499.6 m 386 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 499.6 m 390 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 499.6 m 445 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 499.6 m 504 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 499.6 m 508 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 499.6 m 563 499.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 487.6 m 268 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 487.6 m 327 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 487.6 m 386 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 487.6 m 445 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 487.6 m 504 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 487.6 m 563 487.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 515.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.00 515.68 Td (At December) Tj ET Q q 0 0 0 rg BT 404.01 515.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 503.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 261.50 503.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.50 503.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.50 503.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 491.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.50 491.68 Td (Shar) Tj ET Q q 0 0 0 rg BT 244.88 491.68 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.95 491.68 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.50 491.68 Td (Shar) Tj ET Q q 0 0 0 rg BT 362.88 491.68 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.95 491.68 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.50 491.68 Td (Shar) Tj ET Q q 0 0 0 rg BT 480.88 491.68 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.95 491.68 Td (Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 478.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.40 478.83 Td (\(in thousands, except for) Tj ET Q q 0 0 0 rg BT 409.26 478.83 Td ( shar) Tj ET Q q 0 0 0 rg BT 426.23 478.83 Td (e data\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 465.17 Td (Ordinary shares) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.10 465.17 Td (75,030,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.50 465.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 465.17 Td (1,501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.10 465.17 Td (80,024,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 465.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 465.17 Td (1,597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.10 465.17 Td (94,732,539) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 465.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 465.17 Td (1,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 451.17 Td (Converted to U.S. dollars at historical) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 441.17 Td (exchange rates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.50 440.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 440.27 Td (1,923) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 440.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 440.27 Td (2,031) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 440.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 440.27 Td (2,384) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 415.10 Td (Other capital reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (Other capital reserves include the accumulated share-based payment expense as of period end, the counterpart of which is in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (retained earnings \(accumulated deficit\) as the expense is reflected in profit and loss, as well as the fair value of the convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (debt embedded derivatives at the time of conversion rate was fixed in 2016, the change in fair value of the conversion options at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (resulting from the 2017 and 2018 amendments, the value of the conversion option of the 2018 convertible, the value of warrants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (issued to the holder of the 2015 convertible note in connection with the September 2018 amendment, the value of warrants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (issued to the holder of the venture debt and the deferred tax impact related to the equity component of the convertible debts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (venture debt.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (Dividend rights) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (Dividends may be distributed from the statutory retained earnings and additional paid-in capital, subject to the requirements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (French law and the by-laws of Sequans Communications S.A. ) Tj ET Q q 0 0 0 rg BT 300.12 267.10 Td (There were no distributable retained earnings at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 255.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 255.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 255.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 255.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.83 255.10 Td (. Dividend distributions by the Company) Tj ET Q q 0 0 0 rg BT 290.51 255.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 317.90 255.10 Td (, will be made in euros.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (Capital transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.10 Td (On January 17, 2018, the Company increased its capital in connection with a public of) Tj ET Q q 0 0 0 rg BT 394.79 208.10 Td (fering by issuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.50 208.10 Td (14,375,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.50 208.10 Td ( ordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (shares \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.59 196.10 Td (1,875,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.59 196.10 Td ( shares from the underwriters' over) Tj ET Q q 0 0 0 rg BT 299.65 196.10 Td (-allotment option\) at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.35 196.10 Td ($1.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.85 196.10 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 450.54 196.10 Td (The total of) Tj ET Q q 0 0 0 rg BT 497.00 196.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.71 184.10 Td ($23,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.71 184.10 Td (. ) Tj ET Q q 0 0 0 rg BT 156.16 184.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 205.50 184.10 Td (, issued capital in the Consolidated Statement of Financial Position was increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.10 Td ($352,369) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 172.10 Td ( recorded in share capital and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.94 172.10 Td ($22,647,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.94 172.10 Td ( in share premium. Costs directly attributable to the equity transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.10 Td (amounting to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.31 160.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.20 160.10 Td ( were deducted from the share premium.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 Td (On June 16, 2017, the Company increased its capital in connection with a public of) Tj ET Q q 0 0 0 rg BT 382.02 136.10 Td (fering by issuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.74 136.10 Td (4,312,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.74 136.10 Td ( ordinary shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.10 Td (\(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.10 124.10 Td (562,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.60 124.10 Td ( shares from the underwriters' over) Tj ET Q q 0 0 0 rg BT 264.66 124.10 Td (-allotment option\) at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.36 124.10 Td ($3.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.86 124.10 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 415.54 124.10 Td (The total of) Tj ET Q q 0 0 0 rg BT 462.01 124.10 Td (fering amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td ($16,387,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 112.10 Td (. ) Tj ET Q q 0 0 0 rg BT 103.95 112.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 153.28 112.10 Td (, issued capital in the Consolidated Statement of Financial Position was increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.33 112.10 Td ($96,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.83 112.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (recorded in share capital and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.94 100.10 Td ($16,291,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.94 100.10 Td ( in share premium. Costs directly attributable to the equity transaction amounting to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 88.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.65 88.10 Td ( were deducted from the share premium.) Tj ET Q endstream endobj 281 0 obj <> endobj 282 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (On May 9, 2017, a holder of convertible notes issued in 2016 with a principal value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.48 722.10 Td ($160,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.98 722.10 Td ( converted the debt, plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (accrued interest of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.85 710.10 Td ($1) Tj ET Q q 0 0 0 rg BT 135.48 710.10 Td (1,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.98 710.10 Td ( into a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.58 710.10 Td (63,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.08 710.10 Td ( ordinary shares. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.94 710.10 Td ($1,380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.44 710.10 Td ( was recorded in share capital in the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (Statement of Financial Position and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.76 698.10 Td ($165,1) Tj ET Q q 0 0 0 rg BT 221.89 698.10 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.89 698.10 Td ( in share premium. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (On September 16, 2016, the Company increased its capital in connection with a public of) Tj ET Q q 0 0 0 rg BT 406.45 677.10 Td (fering by issuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.17 677.10 Td (15,151,520) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.17 677.10 Td ( ordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.10 Td (shares at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.71 665.10 Td ($1.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.21 665.10 Td ( per share. On October 7, 2016, the underwriters purchased an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.72 665.10 Td (523,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.22 665.10 Td ( ordinary shares at the public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 653.10 Td (fering price. ) Tj ET Q q 0 0 0 rg BT 108.83 653.10 Td (The total of) Tj ET Q q 0 0 0 rg BT 155.30 653.10 Td (fering amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.89 653.10 Td ($25,864,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.89 653.10 Td (. ) Tj ET Q q 0 0 0 rg BT 288.34 653.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 337.67 653.10 Td (, issued capital in the Consolidated Statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (Financial Position was increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.31 641.10 Td ($350,456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.81 641.10 Td ( recorded in share capital and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.75 641.10 Td ($25,514,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.75 641.10 Td ( in share premium. Costs directly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (attributable to the equity transaction amounting to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.21 629.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.10 629.10 Td ( were deducted from the share premium.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (In the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.61 608.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.61 608.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.61 608.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.61 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.04 608.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.04 608.10 Td (, ordinary shares were issued upon exercise of options and warrants as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (described in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.53 596.10 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.53 596.10 Td ( to the Consolidated Financial Statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 563.10 Td (. Shar) Tj ET Q q 0 0 0 rg BT 84.88 563.10 Td (e-based payment plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (The expense recognized for employee and other services received during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.61 546.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.20 546.10 Td ( and arising from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (equity-settled share-based payment transactions was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.38 534.10 Td ($1,812,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.38 534.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.21 534.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.21 534.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.48 534.10 Td ($1,122,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.48 534.10 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.76 534.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.76 534.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.04 534.10 Td ($1,638,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.04 534.10 Td (\). Of this total, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.14 534.10 Td ($24,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.64 534.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 522.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 522.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.33 522.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.61 522.10 Td ($14,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.11 522.10 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.39 522.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.39 522.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.67 522.10 Td ($14,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.17 522.10 Td (\), related to warrants plans for consultants considered equivalent to employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.10 Td (Founders' warrants, stock options, warrants and restricted share awards give the right to acquire ordinary shares. Following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.10 Td (completion of the initial public of) Tj ET Q q 0 0 0 rg BT 184.01 489.10 Td (fering of the Company) Tj ET Q q 0 0 0 rg BT 277.60 489.10 Td (s shares, the exercise price for options and warrants is based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 477.10 Td (closing market price on the date of grant. ) Tj ET Q q 0 0 0 rg BT 216.20 477.10 Td (There is no exercise price for restricted share awards; the beneficiary receives title to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 465.10 Td (the underlying ordinary shares with no cash payment at the end of the vesting period. In general, the contractual life of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 453.10 Td (founders' warrants, stock options and warrants is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.81 453.10 Td (ten) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.03 453.10 Td ( years. ) Tj ET Q q 0 0 0 rg BT 287.45 453.10 Td (There are no cash settlement alternatives, and the Company has not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.10 Td (developed a practice of cash settlement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.10 Td (There have been no cancellations or modifications to any of the plans during the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.84 420.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.84 420.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.84 420.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.84 420.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 408.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (General employee stock option, founders warrant plans and restricted shares awards) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (All employees of the French parent company and its subsidiaries are entitled to a grant of stock options or restricted shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (awards. Founders' warrants were granted to residents of France prior to the Company) Tj ET Q q 0 0 0 rg BT 393.15 353.10 Td (s IPO. Founders' warrants are a specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (type of option available to qualifying young companies in France and had more favorable tax treatment for both the employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (and the employer compared to stock options. Otherwise, founders' warrants function in the same manner as stock options.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (In general, vesting of the founders' warrants and stock options occurs over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.27 308.10 Td (four years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.53 308.10 Td (, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.81 308.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.14 308.10 Td ( vesting after the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (anniversary of grant and the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.22 296.10 Td (75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.55 296.10 Td ( vesting monthly over the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.30 296.10 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 296.10 Td ( months. Restricted shares awards \(RSA\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (vest over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.38 284.10 Td (four years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.64 284.10 Td (, with either ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.18 284.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.51 284.10 Td ( vesting after the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.93 284.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.93 284.10 Td (-year anniversary of the grant and the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.40 284.10 Td (75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.73 284.10 Td ( of the grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (vesting quarterly over the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.51 272.10 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.51 272.10 Td ( years, or with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.21 272.10 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.54 272.10 Td ( vesting after the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.96 272.10 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.96 272.10 Td (-year anniversary of the grant and the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.83 260.10 Td ( vesting quarterly over the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.34 260.10 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 260.10 Td ( years. From time to time, vesting of founders' warrants, stock options and restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (shares may be linked to employee performance with dif) Tj ET Q q 0 0 0 rg BT 272.02 248.10 Td (ferent vesting periods. Restricted shares may be sold only beginning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 236.10 Td ( years after the date of grant. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (All expenses related to these plans have been recorded in the Consolidated Statement of Operations in the same line items as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (the related employees) Tj ET Q q 0 0 0 rg BT 139.27 203.10 Td ( cash-based compensation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 177.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 177.10 Td (arrant plans for board members and consultants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (The Company awards warrants to members of the board of directors following approval by the shareholders and to a limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.10 Td (number of consultants who have long-term relationships with the Company) Tj ET Q q 0 0 0 rg BT 350.74 144.10 Td (. ) Tj ET Q q 0 0 0 rg BT 355.56 144.10 Td (V) Tj ET Q q 0 0 0 rg BT 361.67 144.10 Td (esting may be either over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.19 144.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.19 144.10 Td (-year) Tj ET Q q 0 0 0 rg BT 507.32 144.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.32 144.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.31 144.10 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 132.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.79 132.10 Td (-year period, or may be immediate, depending on the nature of the service contract. ) Tj ET Q q 0 0 0 rg BT 411.94 132.10 Td (All expenses related to these plans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.10 Td (have been recorded in the Consolidated Statements of Operations in the same line items as the related service provider) Tj ET Q q 0 0 0 rg BT 523.60 120.10 Td () Tj ET Q q 0 0 0 rg BT 526.38 120.10 Td (s cash-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (based compensation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (Movements in the periods presented) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (The following table illustrates the number and weighted average exercise prices \(W) Tj ET Q q 0 0 0 rg BT 382.98 65.10 Td (AEP\) of, and movements in, founders' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.10 Td (warrants, stock options and warrants during the period:) Tj ET Q endstream endobj 283 0 obj <> endobj 284 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-36) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 692.50 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 692.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 692.50 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 692.50 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 692.50 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 692.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 692.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 692.50 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 664.50 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 664.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 664.50 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 664.50 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 664.50 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 664.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 664.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 664.50 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 636.50 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 636.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 636.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 636.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 636.50 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 636.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 636.50 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 636.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 636.50 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 636.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 636.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 636.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 636.50 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 608.50 177.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 608.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 608.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 608.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 608.50 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 608.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 608.50 49.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 608.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 608.50 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 608.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 608.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 608.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 608.50 49.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 569.50 177.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 569.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 569.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 569.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 569.50 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 569.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 569.50 49.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 569.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 569.50 48.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 569.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 569.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 569.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 569.50 49.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 716.5 m 281 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 716.5 m 285 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 716.5 m 333 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 716.5 m 337 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 716.5 m 386 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 716.5 m 390 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 716.5 m 438 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 716.5 m 442 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 716.5 m 492 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 716.5 m 496 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 716.5 m 545 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 716.5 m 281 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 704.5 m 281 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 716.5 m 285 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 704.5 m 285 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 716.5 m 333 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 704.5 m 333 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 716.5 m 337 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 716.5 m 386 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 704.5 m 386 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 716.5 m 390 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 704.5 m 390 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 716.5 m 438 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 704.5 m 438 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 716.5 m 442 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 716.5 m 492 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 704.5 m 492 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 704.5 m 496 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 704.5 m 545 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 692.5 m 281 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 692.5 m 333 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 692.5 m 386 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 692.5 m 438 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 692.5 m 492 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 692.5 m 545 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 692.5 m 281 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 692.5 m 333 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 692.5 m 386 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 692.5 m 438 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 692.5 m 492 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 692.5 m 545 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 622.5 m 281 622.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 622.5 m 386 622.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 622.5 m 492 622.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 622.5 m 545 622.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 622.5 m 281 622.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 622.5 m 333 622.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 622.5 m 438 622.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 622.5 m 492 622.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.50 720.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.25 720.58 Td (December) Tj ET Q q 0 0 0 rg BT 398.82 720.58 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.50 708.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 273.50 708.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.00 708.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.00 708.58 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.50 696.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 241.35 696.58 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.15 696.58 Td (W) Tj ET Q q 0 0 0 rg BT 304.71 696.58 Td (AEP) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.85 696.58 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.15 696.58 Td (W) Tj ET Q q 0 0 0 rg BT 409.71 696.58 Td (AEP) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.35 696.58 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.65 696.58 Td (W) Tj ET Q q 0 0 0 rg BT 515.76 696.58 Td (AEP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 683.07 Td (Outstanding at January1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.10 683.07 Td (7,428,931) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 683.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 683.07 Td (3.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.10 683.07 Td (7,177,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 683.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 683.07 Td (3.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.10 683.07 Td (6,197,848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 683.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 683.07 Td (3.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 669.07 Td (Granted during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.60 669.07 Td (643,350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 669.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 669.07 Td (2.07) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.60 669.07 Td (230,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 669.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 669.07 Td (3.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.60 669.07 Td (250,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 669.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 669.07 Td (1.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 655.07 Td (Forfeited during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.30 655.07 Td (\(317,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 655.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 655.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 655.07 Td (2.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.30 655.12 Td (\(336,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 655.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 655.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 655.07 Td (4.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.30 655.12 Td (\(269,082) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 655.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 655.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 655.07 Td (2.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 641.07 Td (Exercised during the year) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 154.96 645.60 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.30 641.07 Td (\(187,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 641.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 641.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 641.07 Td (1.53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.30 641.12 Td (\(431,790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 641.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 641.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 641.07 Td (2.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.30 641.12 Td (\(14,814) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 641.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 641.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 641.07 Td (1.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 627.07 Td (Expired during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.30 627.07 Td (\(389,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 627.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 627.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 627.07 Td (3.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.30 627.12 Td (\(441,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 627.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 627.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 627.07 Td (3.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.30 627.12 Td (\(180,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 627.07 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 498.50 626.37 Td ($) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 521.50 626.37 Td (5.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 613.07 Td (Outstanding at period end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.10 613.07 Td (7,177,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 613.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 613.07 Td (3.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.10 613.07 Td (6,197,848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 613.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 613.07 Td (3.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.10 613.07 Td (5,983,452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 613.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 613.07 Td (3.50) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 599.06 Td (Of which, warrants for consultants) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 589.06 Td (equivalent to employees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.60 588.17 Td (404,798) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 588.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 588.17 Td (3.23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.60 588.17 Td (151,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 588.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 588.17 Td (3.29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.60 588.17 Td (180,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 588.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 588.17 Td (2.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 574.07 Td (Exercisable at period end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.10 574.07 Td (5,049,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 574.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 574.07 Td (4.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.10 574.07 Td (4,900,052) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 574.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 574.07 Td (3.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.10 574.07 Td (5,194,187) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 574.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 574.07 Td (3.62) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 560.06 Td (Of which, warrants for consultants) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 550.06 Td (equivalent to employees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.60 549.17 Td (360,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 549.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 549.17 Td (3.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.60 549.17 Td (131,917) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 549.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 549.17 Td (3.51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.60 549.17 Td (143,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 549.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 549.17 Td (3.1) Tj ET Q q 0 0 0 rg BT 535.75 549.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.00 Td (________________________) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 521.00 Td (\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 521.00 Td (The weighted average shar) Tj ET Q q 0 0 0 rg BT 193.72 521.00 Td (e estimated fair value at the dates of exer) Tj ET Q q 0 0 0 rg BT 358.31 521.00 Td (cise of these options was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 459.69 521.00 Td ($2.20) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 482.19 521.00 Td ( in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 494.97 521.00 Td (2018) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 514.97 521.00 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 519.97 521.00 Td ($3.49) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 542.47 521.00 Td ( in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 509.00 Td (2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.50 509.00 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 125.50 509.00 Td ($2.21) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 148.00 509.00 Td ( in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 160.78 509.00 Td (2016) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 180.78 509.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.00 Td (The following table illustrates the number of, and movements in, restricted shares awards \(RSA\) during the period:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 87.50 439.50 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.50 439.50 7.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.50 439.50 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 439.50 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 439.50 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 439.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 439.50 74.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 87.50 409.50 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.50 409.50 7.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.50 409.50 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 409.50 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 409.50 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 409.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 409.50 74.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 87.50 379.50 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.50 379.50 7.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.50 379.50 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 379.50 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 379.50 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 379.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 379.50 74.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 379.5 m 365.5 379.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 379.5 m 444.5 379.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 379.5 m 523.5 379.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.00 458.73 Td (December) Tj ET Q q 0 0 0 rg BT 329.50 458.73 Td (31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.50 446.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.50 446.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.00 446.58 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 429.17 Td (Outstanding at January1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 429.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 429.17 Td (634,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 429.17 Td (1,467,166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 414.17 Td (Granted during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 414.17 Td (634,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 414.17 Td (1,002,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 414.17 Td (1,803,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 399.17 Td (Forfeited during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 399.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 399.22 Td (\(15,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 399.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 399.22 Td (\(206,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.65 399.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 384.17 Td (V) Tj ET Q q 0 0 0 rg BT 96.67 384.17 Td (ested during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 384.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.80 384.22 Td (\(155,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 384.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 384.22 Td (\(318,018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.65 384.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 369.17 Td (Outstanding at period end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 369.17 Td (634,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 369.17 Td (1,467,166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 369.17 Td (2,746,181) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.00 Td (Prior to the initial public of) Tj ET Q q 0 0 0 rg BT 158.47 344.00 Td (fering in ) Tj ET Q q 0 0 0 rg BT 194.57 344.00 Td (April 201) Tj ET Q q 0 0 0 rg BT 232.81 344.00 Td (1, exercise prices were denominated in euros. Since the IPO, exercise prices are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.00 Td (denominated in U.S. dollars. Euro-denominated exercise prices have been converted to U.S. dollars at the historical exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.00 Td (rate for purposes of presentation in this table.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.00 Td (The weighted average remaining contractual life of founders' warrants, stock options and warrants outstanding as at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.00 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 287.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 287.00 Td (5.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.14 287.00 Td ( years \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.56 287.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.56 287.00 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.84 287.00 Td (6.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.34 287.00 Td ( years; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.22 287.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.22 287.00 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.50 287.00 Td (6.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.00 287.00 Td ( years\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.00 Td (The range of exercise prices, with euro-denominated exercise prices converted to U.S. dollars at the year) Tj ET Q q 0 0 0 rg BT 468.02 266.00 Td (-end exchange rate, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.00 Td (founders' warrants, stock options, and warrants outstanding at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.03 254.00 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.61 254.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.61 254.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.61 254.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.05 254.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.05 254.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.60 254.00 Td ($1.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.10 254.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.10 254.00 Td ($8.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.60 254.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.00 Td (The weighted average fair value of founders' warrants, stock options and warrants granted during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.69 233.00 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.00 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 221.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 221.00 Td (0.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.55 221.00 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.38 221.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.38 221.00 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.66 221.00 Td (1.52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.16 221.00 Td ( ; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.94 221.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.94 221.00 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.22 221.00 Td (0.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.72 221.00 Td (\). ) Tj ET Q q 0 0 0 rg BT 229.87 221.00 Td (The weighted average fair value of the restricted shares awards granted during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.00 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.58 209.00 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.17 209.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.72 209.00 Td (1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.22 209.00 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.05 209.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.05 209.00 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.33 209.00 Td (2.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.83 209.00 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.11 209.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.11 209.00 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.38 209.00 Td (1.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.88 209.00 Td (\). ) Tj ET Q q 0 0 0 rg BT 332.03 209.00 Td (The fair value is measured at the grant date. ) Tj ET Q q 0 0 0 rg BT 509.55 209.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.00 Td (following table lists the inputs to the models used for determining the value of the grants made for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.00 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 185.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.08 185.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.08 185.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.52 185.00 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.52 185.00 Td (:) Tj ET Q endstream endobj 285 0 obj <> endobj 286 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-37) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 704.50 202.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 704.50 10.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 704.50 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 704.50 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 704.50 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 704.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 704.50 118.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 676.50 202.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 676.50 10.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 676.50 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 676.50 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 676.50 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 676.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 676.50 118.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 600.50 202.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 600.50 10.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 600.50 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 600.50 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 600.50 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 600.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 600.50 118.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 572.50 202.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 572.50 10.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 572.50 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 572.50 7.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 572.50 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 572.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 572.50 118.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 716.5 m 347 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 716.5 m 354 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 716.5 m 430 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 716.5 m 434 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 716.5 m 552 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 704.5 m 347 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 704.5 m 430 704.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 704.5 m 552 704.5 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 720.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.75 720.58 Td (December) Tj ET Q q 0 0 0 rg BT 422.32 720.58 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 708.45 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.50 708.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.50 708.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.50 708.58 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 695.07 Td (Dividend yield \(%\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 695.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 695.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.15 695.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 681.07 Td (Expected volatility \(%\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 681.07 Td (63 - 69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 681.07 Td (63 - 64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 681.07 Td (68 - 70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 667.07 Td (Riskfree interest rate \(%\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.15 667.07 Td (0.00 - 0.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 667.07 Td (0.43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.00 667.07 Td (0.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 653.07 Td (Assumed annual lapse rate of awards \(%\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.20 653.07 Td (10 \(5 for RSA\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.25 653.07 Td (10 for RSA) Tj ET Q q 0 0 0 rg BT 405.09 653.07 Td ( 2 for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.90 643.07 Td (stock options,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 633.07 Td (warrants and a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 623.07 Td (limited group of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.40 613.07 Td (beneficiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 653.07 Td (10 for RSA) Tj ET Q q 0 0 0 rg BT 503.21 653.07 Td ( 2 for stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.70 643.07 Td (options, warrants and a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 633.07 Td (limited group of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.40 623.07 Td (beneficiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 591.07 Td (Sell price multiple \(applied to exercise price\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 591.07 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 591.07 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 591.07 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 577.07 Td (W) Tj ET Q q 0 0 0 rg BT 70.54 577.07 Td (eighted average share price \(\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 577.07 Td (1.76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 577.07 Td (2.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 577.07 Td (1.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 563.07 Td (Model used) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.25 563.07 Td (Binomial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.25 563.07 Td (Binomial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.25 563.07 Td (Binomial) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.00 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.58 538.00 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.17 538.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.17 538.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.17 538.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.61 538.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.61 538.00 Td ( the expected volatility assumption has been based on the Company) Tj ET Q q 0 0 0 rg BT 546.88 538.00 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.00 Td (volatility since its initial public of) Tj ET Q q 0 0 0 rg BT 184.58 526.00 Td (fering in 201) Tj ET Q q 0 0 0 rg BT 235.86 526.00 Td (1.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.00 Td (Founders' warrants, stock options and warrants can be exercised during a period after the vesting date until the plan terminates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.00 Td (In the pricing model, the assumption was made that plan participants will exercise before the end of the exercise period if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.00 Td (share price reaches a certain multiple of the exercise price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.00 Td (If a sell-price multiple of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.96 460.00 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.96 460.00 Td ( instead of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.12 460.00 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.12 460.00 Td ( had been used \(no impact on the restricted shares\) and if the weighted average share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.00 Td (price used in the pricing model had been decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.86 448.00 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.19 448.00 Td (, share-based payment total compensation for founders' warrants, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.00 Td (stock options, warrants and restricted shares awards granted through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.53 436.00 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.11 436.00 Td ( would have decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.00 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 424.00 Td (\(8.63\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.25 424.00 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.08 424.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.08 424.00 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.36 424.00 Td (\(8.73\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.85 424.00 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.13 424.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.13 424.00 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 424.00 Td (\(7.09\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.89 424.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.00 Td (The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur) Tj ET Q q 0 0 0 rg BT 554.05 403.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.00 Td (The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.00 Td (necessarily be the actual outcome.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 353.00 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 353.00 Td (. Inter) Tj ET Q q 0 0 0 rg BT 85.98 353.00 Td (est-bearing loans and borr) Tj ET Q q 0 0 0 rg BT 198.86 353.00 Td (owings) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 306.50 334.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 306.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 306.50 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 306.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 306.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 306.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 306.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 306.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 306.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 278.50 334.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 278.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 278.50 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 278.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 278.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 278.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 278.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 278.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 278.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 250.50 334.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 250.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 250.50 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 250.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 250.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 250.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 250.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 250.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 250.50 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 222.50 334.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 222.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 222.50 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 222.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 222.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 222.50 4.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 330.5 m 473 330.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 330.5 m 477 330.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 330.5 m 518 330.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 330.5 m 522 330.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 330.5 m 563 330.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 318.5 m 428 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 318.5 m 473 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 318.5 m 518 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 318.5 m 563 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 264.5 m 473 264.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 264.5 m 518 264.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 264.5 m 563 264.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 264.5 m 473 264.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 251.5 m 473 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 249.5 m 473 249.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 264.5 m 518 264.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 251.5 m 518 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 249.5 m 518 249.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 264.5 m 563 264.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 251.5 m 563 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 249.5 m 563 249.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 208.5 m 473 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 208.5 m 518 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 208.5 m 563 208.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.50 334.58 Td (At December) Tj ET Q q 0 0 0 rg BT 513.51 334.58 Td (31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.50 322.58 Td (Note) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.00 322.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.00 322.58 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 534.00 322.58 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.65 310.58 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 297.07 Td (Current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 283.07 Td (V) Tj ET Q q 0 0 0 rg BT 77.17 283.07 Td (enture debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 283.07 Td (14.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 283.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 283.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 283.07 Td (823) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 269.07 Td (Interest-bearing receivables financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 269.07 Td (14.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.60 269.07 Td (7,712) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.60 269.07 Td (7,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 269.07 Td (10,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 255.07 Td (T) Tj ET Q q 0 0 0 rg BT 76.26 255.07 Td (otal current portion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.50 255.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.60 255.07 Td (7,712) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 255.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.60 255.07 Td (7,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.50 255.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 255.07 Td (1) Tj ET Q q 0 0 0 rg BT 536.60 255.07 Td (1,1) Tj ET Q q 0 0 0 rg BT 549.10 255.07 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 241.07 Td (Non-current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 227.07 Td (Convertible debt and accrued interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 227.07 Td (14.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.50 227.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.60 227.07 Td (16,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 227.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.60 227.07 Td (17,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.50 227.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 227.07 Td (19,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 213.07 Td (V) Tj ET Q q 0 0 0 rg BT 77.17 213.07 Td (enture debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 213.07 Td (14.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 213.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 213.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 213.07 Td (1) Tj ET Q q 0 0 0 rg BT 536.60 213.07 Td (1,81) Tj ET Q q 0 0 0 rg BT 554.10 213.07 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 199.07 Td (T) Tj ET Q q 0 0 0 rg BT 75.91 199.07 Td (otal non-current portion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.50 199.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.60 199.07 Td (16,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 199.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.60 199.07 Td (17,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.50 199.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 199.07 Td (31,534) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.94 174.00 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.53 174.00 Td (, the Company had no drawn or undrawn committed borrowing or overdraft facilities in place.) Tj ET Q endstream endobj 287 0 obj <> endobj 288 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (14.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 722.25 Td (. Convertible debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 701.25 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 701.25 Td (April 14, 2015,the Company entered into a convertible note agreement with Nokomis Capital, L.L.C., one of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 689.25 Td (s existing shareholders, regarding the issuance and sale of a convertible note in the principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.48 689.25 Td ($12 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 677.25 Td (\(the 2015 note\), which note was convertible into the Company) Tj ET Q q 0 0 0 rg BT 339.99 677.25 Td (s ) Tj ET Q q 0 0 0 rg BT 345.83 677.25 Td (American Depositary Shares \(ADSs\), each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (representing one ordinary share, nominal value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.27 665.25 Td (0.02) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.77 665.25 Td ( per share, at a conversion rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.98 665.25 Td (540.5405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.48 665.25 Td ( ) Tj ET Q q 0 0 0 rg BT 437.43 665.25 Td (ADSs for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.80 665.25 Td ($1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.30 665.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (principal amount of the 2015 note, subject to certain adjustments, which equated to an initial conversion price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 653.25 Td ($1.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 653.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (ADS. On October 30, 2017, the convertible note was further amended to extend the term from ) Tj ET Q q 0 0 0 rg BT 428.56 641.25 Td (April 14, 2018 to ) Tj ET Q q 0 0 0 rg BT 499.40 641.25 Td (April 14, 2019. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (On September 27, 2018, the convertible note was amended to extend the term by two years to ) Tj ET Q q 0 0 0 rg BT 426.35 629.25 Td (April 14, 2021, and to decrease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (the conversion price from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.02 617.25 Td ($1.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.52 617.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.30 617.25 Td ($1.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.80 617.25 Td (. In addition, the Company issued to Nokomis, for a total subscription price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.03 617.25 Td ($1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.53 617.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (warrants to acquire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.63 605.25 Td (1,800,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.63 605.25 Td ( ) Tj ET Q q 0 0 0 rg BT 170.58 605.25 Td (ADSs at an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.20 605.25 Td ($1.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.70 605.25 Td ( per ) Tj ET Q q 0 0 0 rg BT 326.92 605.25 Td (ADS. Such warrants are exercisable at any time and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (expire ) Tj ET Q q 0 0 0 rg BT 76.43 593.25 Td (April 14, 2021. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 572.25 Td (April 27, 2016, the Company entered into a convertible note agreement with Nokomis Capital, L.L.C. and two other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (financial institutions \(the Holders\) regarding the issuance and sale of convertible notes in the aggregate principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td ($7.16 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 548.25 Td ( \(the 2016 notes\), which are convertible into the Company) Tj ET Q q 0 0 0 rg BT 348.32 548.25 Td (s ) Tj ET Q q 0 0 0 rg BT 354.16 548.25 Td (ADS. ) Tj ET Q q 0 0 0 rg BT 378.98 548.25 Td (The initial conversion price of the 2016 notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.55 536.25 Td ($2.7126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.05 536.25 Td ( per ) Tj ET Q q 0 0 0 rg BT 117.27 536.25 Td (ADS. On October 30, 2017, the convertible note agreement was amended to extend the term from ) Tj ET Q q 0 0 0 rg BT 513.26 536.25 Td (April 27, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (2019 to ) Tj ET Q q 0 0 0 rg BT 81.73 524.25 Td (April 27, 2020. In addition, the conversion price was decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.42 524.25 Td ($2.71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.92 524.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.70 524.25 Td ($2.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.20 524.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (On September 27, 2018, the Company entered into a convertible note agreement with Nokomis Capital, L.L.C. in the principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 491.25 Td ($4.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.72 491.25 Td ( \(the "2018 notes"\) under which the convertible note matures in ) Tj ET Q q 0 0 0 rg BT 397.87 491.25 Td (April 2021 and is subordinated to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (venture debt to be issued by the Company and is convertible, at the holder) Tj ET Q q 0 0 0 rg BT 346.46 479.25 Td () Tj ET Q q 0 0 0 rg BT 349.24 479.25 Td (s option, into the company) Tj ET Q q 0 0 0 rg BT 458.40 479.25 Td (s ) Tj ET Q q 0 0 0 rg BT 464.24 479.25 Td (ADSs at a conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.82 467.25 Td ($1.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.32 467.25 Td ( per ) Tj ET Q q 0 0 0 rg BT 117.53 467.25 Td (ADS. On September 27, 2018, all of the convertible notes issued in 2015 and convertible notes with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.87 455.25 Td ($6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.26 455.25 Td ( issued in 2016 were amended to allow the convertible notes to be subordinated to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (venture debt to be issued by the Company) Tj ET Q q 0 0 0 rg BT 216.87 443.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (On October 26, 2018, the Company further amended the 2015 note, the 2016 note and the 2018 note with Nokomis to clarify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (the terms of the subordination of these convertible notes to the Company) Tj ET Q q 0 0 0 rg BT 343.60 410.25 Td (s venture debt holder) Tj ET Q q 0 0 0 rg BT 427.19 410.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (The 2015, 2016 and 2018 notes \(together) Tj ET Q q 0 0 0 rg BT 213.79 389.25 Td (, the Notes\) are unsecured obligations of the Company) Tj ET Q q 0 0 0 rg BT 440.01 389.25 Td (. ) Tj ET Q q 0 0 0 rg BT 447.33 389.25 Td (The Notes issued in 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (and 2018 will mature on ) Tj ET Q q 0 0 0 rg BT 149.21 377.25 Td (April 14, 2021 and the 2016 Notes will mature on ) Tj ET Q q 0 0 0 rg BT 350.57 377.25 Td (April 27, 2020. ) Tj ET Q q 0 0 0 rg BT 416.50 377.25 Td (The Notes are not redeemable prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (to maturity at the option of the Company) Tj ET Q q 0 0 0 rg BT 212.43 365.25 Td (. ) Tj ET Q q 0 0 0 rg BT 217.25 365.25 Td (The accreted principal amounts of the notes are convertible at any time or times on or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (after the issuance dates until maturity) Tj ET Q q 0 0 0 rg BT 198.52 353.25 Td (, in whole or in part, subject to certain adjustments for significant corporate events, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (including dilutive issuances, dividends, stock splits and other similar events.Interest accrues on the unconverted portion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.25 Td (notes at the rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.86 329.25 Td (7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.19 329.25 Td ( per year) Tj ET Q q 0 0 0 rg BT 173.76 329.25 Td (, paid in kind annually on the anniversaries of the issuance of the Notes.) Tj ET Q q 0 0 0 rg BT 464.06 329.25 Td (The notes also provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (for customary events of default which, if any of them occurs, would permit or require the principal of and accrued interest on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.25 Td (the notes to become or to be declared due and payable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (In the event of a recapitalization, reor) Tj ET Q q 0 0 0 rg BT 199.52 284.25 Td (ganization, reclassification, consolidation, mer) Tj ET Q q 0 0 0 rg BT 385.95 284.25 Td (ger) Tj ET Q q 0 0 0 rg BT 398.31 284.25 Td (, sale of all or substantially all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 272.25 Td (s assets or other transaction, which in each case results in the Company) Tj ET Q q 0 0 0 rg BT 379.14 272.25 Td (s shareholders receiving stock, securities or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (assets with respect to or in exchange for their ) Tj ET Q q 0 0 0 rg BT 232.50 260.25 Td (ADSs or ordinary shares, the holders shall elect, at their option, either \(a\) to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (require the Company to repurchase for cash the entire accreted principal amount of the Notes or \(b\) to convert the Notes in their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (entirety) Tj ET Q q 0 0 0 rg BT 79.39 236.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (The Notes contain customary ongoing covenants of the Company) Tj ET Q q 0 0 0 rg BT 311.01 215.25 Td (. In addition, the Notes provide that the Company will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.25 Td (grant a consensual security interest or pledge its personal property assets to a third-party lender \(with certain limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.25 Td (exceptions\) during the time that the notes are outstanding.) Tj ET Q q 0 0 0 rg BT 283.33 191.25 Td (Any amendment or waiver of the terms of the Notes requires the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 179.25 Td (firmative consent of the holders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.25 Td (The 2015 and 2016 notes were accounted for as compound financial instruments with two components: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 131.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 131.25 Td (A) Tj ET Q q 0 0 0 rg BT 92.17 131.25 Td ( liability component reflecting the Company) Tj ET Q q 0 0 0 rg BT 272.40 131.25 Td (s contractual obligation to pay interest and redeem the bonds in cash; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 119.25 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 107.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 107.25 Td (An embedded derivative, which is the holder's call option whereby the Company can be required to issue a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 95.25 Td (shares in exchange for notes, at a rate which may vary during the first twelve months after issuance of the 2015 note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 83.25 Td (under certain contractual conditions and during the period beginning on ) Tj ET Q q 0 0 0 rg BT 374.31 83.25 Td (April 28, 2016 and ending on May 12, 2016 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 71.25 Td (for the 2016 notes, and at the fixed conversion rate for the 2018 note.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.25 Td (The initial fair value of the 2015 and 2016 notes was split between these two components.) Tj ET Q endstream endobj 289 0 obj <> endobj 290 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (The fair value of the liability component on the issuance date represents the fair value of a similar liability that does not have an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (associated equity conversion feature, calculated as the net present value of contractually determined future cash flows, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (discounted at the rate of interest applied by the market at the time of issue to instruments of comparable credit status and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (providing substantially the same cash flows, on the same terms, but without the conversion option.) Tj ET Q q 0 0 0 rg BT 446.48 686.10 Td (The Company has used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (24.26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 674.10 Td (% and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.77 674.10 Td (25.69%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.60 674.10 Td ( as the market rate of interest in order to value the liability components of the 2015 and 2016 notes on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (issuance, respectively) Tj ET Q q 0 0 0 rg BT 136.04 662.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.10 Td (The embedded derivatives of the 2015 and 2016 notes were valued using the Black-Scholes valuation model. On ) Tj ET Q q 0 0 0 rg BT 502.72 641.10 Td (April 14, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (2015, the initial fair value of the embedded derivative of the 2015 note was calculated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.26 629.10 Td ($4,055,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.26 629.10 Td (. On ) Tj ET Q q 0 0 0 rg BT 482.43 629.10 Td (April 14, 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.10 Td (when the conversion rate of the 2015 notes was fixed, the fair value of the embedded derivative was calculated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td ($8,324,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 605.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.33 605.10 Td ($6,091,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.33 605.10 Td ( at December 31, 2015\). ) Tj ET Q q 0 0 0 rg BT 244.28 605.10 Td (The change in fair value was recorded as financial expense for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.66 605.10 Td ($2,233,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.66 605.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (the year ended December 31, 2016 and the fair value of the embedded derivative was transferred from liabilities to Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (Capital Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 182.88 581.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 209.73 581.10 Td (. Following the extension of the term, the change in fair value of the conversion option ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (before and after the amendment was calculated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.45 569.10 Td ($2,120,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.45 569.10 Td ( and was recorded as financial expense and in Other Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 151.50 557.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 178.35 557.10 Td (. ) Tj ET Q q 0 0 0 rg BT 183.17 557.10 Td (The debt component on October 30, 2017 was remeasured to take into account the new term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (using the ef) Tj ET Q q 0 0 0 rg BT 95.97 545.10 Td (fective interest rate calculated at the date of issue. ) Tj ET Q q 0 0 0 rg BT 297.36 545.10 Td (The debt was reduced by an amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.09 545.10 Td ($1,994,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.09 545.10 Td ( recorded in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (financial income. Following the amendment signed in September 27, 2018, the fair value of the debt just prior to amendment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (was estimated in order to record a loss on extinguishment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.05 521.10 Td ($265,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.55 521.10 Td ( recorded as Convertible debt amendments in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (Consolidated Statements of Operations. ) Tj ET Q q 0 0 0 rg BT 213.18 509.10 Td (The amended debt was then recorded at its fair value assuming a market rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (interest, with the calculated value of the conversion option of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.92 497.10 Td ($3,788,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.92 497.10 Td ( recorded in Other Capital Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 550.83 497.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (equity) Tj ET Q q 0 0 0 rg BT 73.85 485.10 Td (. In the amendment signed on September 27, 2018, the Company issued to Nokomis, for a total subscription price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td ($1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 473.10 Td (, warrants to acquire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.13 473.10 Td (1,800,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.13 473.10 Td ( ) Tj ET Q q 0 0 0 rg BT 198.08 473.10 Td (ADSs at an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.70 473.10 Td ($1.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.20 473.10 Td ( per ) Tj ET Q q 0 0 0 rg BT 354.42 473.10 Td (ADS. Such warrants are exercisable at any time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.10 Td (and expire ) Tj ET Q q 0 0 0 rg BT 93.37 461.10 Td (April 14, 2021. ) Tj ET Q q 0 0 0 rg BT 156.80 461.10 Td (The calculated value of these warrants amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.05 461.10 Td ($749,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.55 461.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.32 461.10 Td ($523,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.82 461.10 Td ( was recorded as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.10 Td (reduction of the amount of debt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (The fair value of the embedded derivative of the 2016 notes on the issuance date of ) Tj ET Q q 0 0 0 rg BT 384.38 428.10 Td (April 27, 2016 was calculated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td ($2,597,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 416.10 Td ( and was recalculated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.00 416.10 Td ($1,947,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.00 416.10 Td ( when the conversion rate of the 2016 Notes was fixed on May 12, 2016. ) Tj ET Q q 0 0 0 rg BT 545.87 416.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (change in fair value was recorded as financial income for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.06 404.10 Td ($650,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.56 404.10 Td ( in the year ended December 31, 2016, and the value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (embedded derivative as of May 12, 2016 was transferred from liabilities to Other Capital Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 510.01 392.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 536.85 392.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.35 392.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (Following the extension of the term and the decrease of the conversion price, the change in fair value of the conversion option ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (before and after the amendment was calculated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.45 368.10 Td ($1,298,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.45 368.10 Td ( and was recorded as financial expense and in Other Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 151.50 356.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 178.35 356.10 Td (. ) Tj ET Q q 0 0 0 rg BT 183.17 356.10 Td (The debt component on October 30, 2017 was remeasured to take into account the new term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (using the ef) Tj ET Q q 0 0 0 rg BT 95.97 344.10 Td (fective interest rate calculated at the date of issue. ) Tj ET Q q 0 0 0 rg BT 297.36 344.10 Td (The debt was reduced by an amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.09 344.10 Td ($1,103,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.09 344.10 Td ( recorded in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (financial income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (The net impact of the October 30, 2017 amendments of the convertible notes recorded in financial expense amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td ($322,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 299.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (On May 9, 2017, a Holder of 2016 notes with a principal value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.44 278.10 Td ($160,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.94 278.10 Td ( converted the debt, plus accrued interest of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.82 278.10 Td ($1) Tj ET Q q 0 0 0 rg BT 538.45 278.10 Td (1,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.95 278.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (into a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.60 266.10 Td (63,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.10 266.10 Td ( ) Tj ET Q q 0 0 0 rg BT 135.05 266.10 Td (ADS. On October 30, 2018 and in connection with entering into the venture debt issuance agreement, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (Company retired convertible notes issued on ) Tj ET Q q 0 0 0 rg BT 230.02 254.10 Td (April 27, 2016 and due on ) Tj ET Q q 0 0 0 rg BT 336.95 254.10 Td (April 27, 2020, with a principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.14 254.10 Td ($1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.54 254.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (by paying the principal and accrued interest due as of October 30, 2018 to the noteholder) Tj ET Q q 0 0 0 rg BT 404.94 242.10 Td (. ) Tj ET Q q 0 0 0 rg BT 409.76 242.10 Td (W) Tj ET Q q 0 0 0 rg BT 418.40 242.10 Td (e recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.70 242.10 Td ($400,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.20 242.10 Td ( in financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (expense related to the early retirement of this debt after the repayment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (The 2018 note was accounted for as compound financial instruments with two components:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 194.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 194.10 Td (A) Tj ET Q q 0 0 0 rg BT 92.17 194.10 Td ( liability component reflecting the Company) Tj ET Q q 0 0 0 rg BT 272.40 194.10 Td (s contractual obligation to pay interest and redeem the bonds in cash; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 182.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 170.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 170.10 Td (An equity component for the value of the conversion option.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (The initial fair value of the notes was split between these two components.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (The fair value of the equity component of the 2018 notes on the issuance date of September 27, 2018 was calculated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td ($1,366,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 125.10 Td ( and was recorded in Other Capital Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 338.40 125.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 365.24 125.10 Td (, net of transaction costs. ) Tj ET Q q 0 0 0 rg BT 466.98 125.10 Td (The Company has used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (23.81%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.33 113.10 Td ( as the market rate of interest in order to value the liability component of the note.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td ( ) Tj ET Q q 0 0 0 rg BT 51.45 92.10 Td (All remaining convertible notes issued in 2015, 2016 and 2018 are held by one institutional investor) Tj ET Q q 0 0 0 rg BT 451.53 92.10 Td (, Nokomis Capital.) Tj ET Q endstream endobj 291 0 obj <> endobj 292 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-40) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (14.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 722.25 Td (. ) Tj ET Q q 0 0 0 rg BT 71.82 722.25 Td (V) Tj ET Q q 0 0 0 rg BT 78.12 722.25 Td (entur) Tj ET Q q 0 0 0 rg BT 101.27 722.25 Td (e debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 701.25 Td (On October 26, 2018, the Company entered into a bond issuance agreement with Harbert European Specialty Lending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.25 Td (Company II S.a.r) Tj ET Q q 0 0 0 rg BT 117.83 689.25 Td (.l \(the Harbert\) whereby Harbert agreed to loan to the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.38 689.25 Td (12 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.77 689.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.60 689.25 Td ($14.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 689.25 Td ( using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (exchange rate as of October 26, 2018\), at a stated rate of interest of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.50 677.25 Td (9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.83 677.25 Td (, to be repaid monthly over 42 months \(the Bond\).The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (Company may redeem or repurchase the notes before the maturity date, subject to making certain contractual payments. ) Tj ET Q q 0 0 0 rg BT 531.64 665.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (contract also requires the Company to pay an additional fee equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.41 653.25 Td (2.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.24 653.25 Td ( of the principal at the end of the term. ) Tj ET Q q 0 0 0 rg BT 501.39 653.25 Td (The Bond is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (secured by various assets of the Company \(See Note 20\), including intellectual property) Tj ET Q q 0 0 0 rg BT 400.70 641.25 Td (, and is senior to all the convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (notes. ) Tj ET Q q 0 0 0 rg BT 77.56 629.25 Td (Also on October 26, 2018, the Company issued to Harbert, for a total subscription price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 629.25 Td ($1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 629.25 Td (, warrants to acquire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (816,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 617.25 Td ( ) Tj ET Q q 0 0 0 rg BT 83.95 617.25 Td (ADSs at an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.57 617.25 Td ($1.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.07 617.25 Td ( per ) Tj ET Q q 0 0 0 rg BT 240.29 617.25 Td (ADS. Such warrants are exercisable at any time and expire October 26, 2028. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (The amounts received from Harbert, net of transaction costs, were allocated to \(i\) the warrants for an amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.49 593.25 Td (712,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.99 593.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (\() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.83 581.25 Td ($819,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.33 581.25 Td (\), which was recorded in Other Capital Reserves in shareholders) Tj ET Q q 0 0 0 rg BT 350.06 581.25 Td ( equity) Tj ET Q q 0 0 0 rg BT 376.90 581.25 Td (, and \(ii\) the liability component for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.98 581.25 Td (10.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 569.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.22 569.25 Td ($12.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.11 569.25 Td (\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (During the first twelve months, Sequans pays only interest and then begins to reimburse the principal during the remaining 30 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (months until ) Tj ET Q q 0 0 0 rg BT 101.73 536.25 Td (April 26, 2022. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (14.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 494.25 Td (. Inter) Tj ET Q q 0 0 0 rg BT 93.48 494.25 Td (est-bearing financing of r) Tj ET Q q 0 0 0 rg BT 201.35 494.25 Td (eceivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 477.25 Td (In June 2014, the Company entered into a factoring agreement with a French financial institution whereby a line of credit was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 465.25 Td (made available equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.68 465.25 Td (90%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.01 465.25 Td ( of the face value of accounts receivable from product sales to qualifying customers. In July 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 453.25 Td (the Company signed an amendment to the initial agreement to include limited financing of accounts receivable from service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.25 Td (sales. ) Tj ET Q q 0 0 0 rg BT 73.76 441.25 Td (The Company transfers to the finance company all invoices issued to qualifying customers, and the customers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.25 Td (instructed to settle the invoices directly with the finance company) Tj ET Q q 0 0 0 rg BT 311.82 429.25 Td (. ) Tj ET Q q 0 0 0 rg BT 316.64 429.25 Td (The Company pays a commission on the face value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.25 Td (accounts receivable submitted and interest at the rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.13 417.25 Td (1.60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.96 417.25 Td ( \(LIBOR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.29 417.25 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.29 417.25 Td ( months +) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.38 417.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.71 417.25 Td (\) on any draw-down of the resulting line ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.25 Td (of credit. In the event that the customer does not pay the invoice within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.92 405.25 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.92 405.25 Td ( days of the due date, the receivable is excluded from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.25 Td (the line of credit, and recovery becomes the Company) Tj ET Q q 0 0 0 rg BT 268.59 393.25 Td (s responsibility) Tj ET Q q 0 0 0 rg BT 328.77 393.25 Td (. ) Tj ET Q q 0 0 0 rg BT 333.22 393.25 Td (At December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.30 393.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.30 393.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.30 393.25 Td ($10,295,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.30 393.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.13 393.25 Td ($7,413,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.13 393.25 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.25 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.08 381.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 381.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.52 381.25 Td ($7,712,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.52 381.25 Td ( at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.32 381.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.32 381.25 Td (\) had been drawn on the line of credit and recorded as a current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.25 Td (borrowing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 331.25 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 331.25 Td (. Government grant advances and loans) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 284.75 332.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 284.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 284.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 284.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 284.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 284.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 284.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 284.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 284.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 256.75 332.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 256.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 256.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 256.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 256.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 256.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 256.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 256.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 256.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 228.75 332.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 228.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 228.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 228.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 228.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 200.75 332.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 200.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 200.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 200.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 200.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 172.75 332.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 172.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 172.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 172.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 172.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 172.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 172.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 172.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 172.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 144.75 332.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 144.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 144.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 144.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 144.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 144.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 144.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 144.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 144.75 40.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 308.75 m 475 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 308.75 m 479 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 308.75 m 519 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 308.75 m 523 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 308.75 m 563 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 296.75 m 431 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 296.75 m 475 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 296.75 m 519 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 296.75 m 563 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 228.75 m 475 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 228.75 m 475 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 215.75 m 475 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 213.75 m 475 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 228.75 m 519 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 215.75 m 519 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 213.75 m 519 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 228.75 m 563 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 215.75 m 563 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 213.75 m 563 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 144.75 m 475 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 144.75 m 519 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 144.75 m 563 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 144.75 m 475 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 131.75 m 475 131.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 129.75 m 475 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 144.75 m 519 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 131.75 m 519 131.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 129.75 m 519 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 144.75 m 563 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 131.75 m 563 131.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523 129.75 m 563 129.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 312.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.50 312.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.25 312.83 Td (December) Tj ET Q q 0 0 0 rg BT 509.82 312.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 300.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.00 300.83 Td (Note) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.50 300.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 490.50 300.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 534.50 300.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 288.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.50 288.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.15 288.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 275.32 Td (Current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 261.32 Td (Government grant advances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 261.32 Td (15.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.50 261.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 261.32 Td (390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 261.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 261.32 Td (93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.50 261.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 261.32 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 247.32 Td (Research project financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 247.32 Td (15.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 247.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 247.32 Td (899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 247.32 Td (172) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 233.32 Td (Government loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 233.32 Td (15.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 233.32 Td (21) Tj ET Q q 0 0 0 rg BT 466.15 233.32 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 233.32 Td (600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 233.32 Td (458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 219.32 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 219.32 Td (otal current portion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.50 219.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 219.32 Td (601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 219.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.60 219.32 Td (1,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.50 219.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 219.32 Td (688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 205.32 Td (Non-current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 191.32 Td (Government grant advances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 191.32 Td (15.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.50 191.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 191.32 Td (197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 191.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 191.32 Td (350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.50 191.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 191.32 Td (86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 177.32 Td (Research project financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 177.32 Td (15.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.60 177.32 Td (3,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.60 177.32 Td (2,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.60 177.32 Td (4,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 163.32 Td (Government loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 163.32 Td (15.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.60 163.32 Td (1,571) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.60 163.32 Td (1,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 163.32 Td (819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 149.32 Td (Accrued interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 149.32 Td (15.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 149.32 Td (153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 149.32 Td (381) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 149.32 Td (495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 135.32 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 135.32 Td (otal non-current portion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.50 135.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.60 135.32 Td (5,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 135.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.60 135.32 Td (5,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.50 135.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.60 135.32 Td (5,674) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 98.25 Td (15.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 98.25 Td (. Government grant advances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.25 Td (In 2016, the Company was named as a participant in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.95 77.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.38 77.25 Td ( new collaborative project with funding of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.72 77.25 Td (121,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.22 77.25 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.05 77.25 Td ($131,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.55 77.25 Td (\), which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.25 Td (is expected to be released to the Consolidated Statement of Operations over the life of the project, estimated to be between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.11 65.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.55 65.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 53.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.10 53.25 Td ( years.) Tj ET Q endstream endobj 293 0 obj <> endobj 294 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (In 2017, the Company was named as a participant in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.95 722.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.38 722.10 Td ( new collaborative project with funding of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.72 722.10 Td (349,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.22 722.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.05 722.10 Td ($386,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.55 722.10 Td (\) which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (is expected to be released to the Consolidated Statement of Operations over the life of the project, estimated to be between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.11 710.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.55 710.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 698.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.44 698.10 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (The Company did not participate in any new collaborative projects in 2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (15.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 656.10 Td (. Resear) Tj ET Q q 0 0 0 rg BT 101.25 656.10 Td (ch pr) Tj ET Q q 0 0 0 rg BT 123.57 656.10 Td (oject financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (In October 2014, Bpifrance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.46 639.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.90 639.10 Td ( of the Company) Tj ET Q q 0 0 0 rg BT 248.61 639.10 Td (s shareholders and the financial agency of the French government, provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 Td (funding to the Company in the context of a long-term research project, estimated to be completed over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.08 627.10 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.08 627.10 Td (-year period. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (December 2016, Bpifrance and the Company signed an amendment to extend the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.88 615.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.87 615.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 615.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.31 615.10 Td ( years. ) Tj ET Q q 0 0 0 rg BT 504.72 615.10 Td (The total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.10 Td (funding remains unchanged and amounts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.68 603.10 Td (6,967,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.68 603.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.51 603.10 Td ($8,988,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.51 603.10 Td (\) with a portion in the form of a grant \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.03 603.10 Td (2,957,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.03 603.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td ($3,815,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 591.10 Td (\) and a portion in the form of a for) Tj ET Q q 0 0 0 rg BT 231.78 591.10 Td (givable loan \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.76 591.10 Td (4,010,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.76 591.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.09 591.10 Td ($5,173,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.09 591.10 Td (\). ) Tj ET Q q 0 0 0 rg BT 398.24 591.10 Td (The funding will be paid in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.88 591.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.87 591.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.10 Td (installments: the first tranche at the contract signature date, the second and the third installments after milestones defined in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.10 Td (contract. ) Tj ET Q q 0 0 0 rg BT 86.52 567.10 Td (The grant is recognized as a reduction of research and development expense when corresponding expense is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (incurred.) Tj ET Q q 0 0 0 rg BT 87.63 555.10 Td (The for) Tj ET Q q 0 0 0 rg BT 117.16 555.10 Td (givable loan advance will be repaid, except if the project is a commercial failure, from March 31, 2019 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (September 30, 2022 and bears interests at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.28 543.10 Td (1.53%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.11 543.10 Td ( fixed contractual rate. ) Tj ET Q q 0 0 0 rg BT 343.38 543.10 Td (The dif) Tj ET Q q 0 0 0 rg BT 372.36 543.10 Td (ference between the amount of grant received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.10 Td (and the present value amounted to a reduction of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.93 531.10 Td ($1) Tj ET Q q 0 0 0 rg BT 256.56 531.10 Td (15,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.06 531.10 Td ( in the debt carrying value, with such dif) Tj ET Q q 0 0 0 rg BT 445.78 531.10 Td (ference being amortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.10 Td (over the contract period. In the event of commercial success, and sales of the product developed under this program are in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.93 507.10 Td (350 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.32 507.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.15 507.10 Td ($425 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.54 507.10 Td (\) during a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.80 507.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.78 507.10 Td ( years, then the Company shall pay for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.69 507.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.67 507.10 Td ( consecutive years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (after the date of the termination of the refund a bonus to Bpifrance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.84 495.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.17 495.10 Td ( of annual revenues generated by products issued from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (the project \(up to a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.41 483.10 Td (350,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.41 483.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.74 483.10 Td ($419,755,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.74 483.10 Td ( over a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.32 483.10 Td (ten) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.54 483.10 Td ( years\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (In January 2016, Bpifrance provided funding to the Company for a new long-term research project, estimated to be completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.71 454.10 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.71 454.10 Td (-month period. ) Tj ET Q q 0 0 0 rg BT 148.46 454.10 Td (The total of the funding amounts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.60 454.10 Td (2,095,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.60 454.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.43 454.10 Td ($2,288,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.43 454.10 Td (\) comprising a portion in the form of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (grant \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 442.10 Td (668,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.38 442.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.71 442.10 Td ($729,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.21 442.10 Td (\) and a portion in the form of a for) Tj ET Q q 0 0 0 rg BT 301.48 442.10 Td (givable loan \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.46 442.10 Td (1,427,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.46 442.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.79 442.10 Td ($1,558,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.79 442.10 Td (\). ) Tj ET Q q 0 0 0 rg BT 467.94 442.10 Td (The funding will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (paid in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 430.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.16 430.10 Td ( installments: the first tranche at the contract signature date, the second, the third and the fourth installments after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (milestones defined in the contract. ) Tj ET Q q 0 0 0 rg BT 189.28 418.10 Td (The grant is recognized as a reduction of research and development expense when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (corresponding expense is incurred. ) Tj ET Q q 0 0 0 rg BT 191.22 406.10 Td (The for) Tj ET Q q 0 0 0 rg BT 220.75 406.10 Td (givable loan advance will be repaid, except if the project is a commercial failure, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (from July 1, 2020 to July 1, 2024 and bears interests at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.07 394.10 Td (1.17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.90 394.10 Td ( fixed contractual rate. ) Tj ET Q q 0 0 0 rg BT 396.17 394.10 Td (The dif) Tj ET Q q 0 0 0 rg BT 425.15 394.10 Td (ference between the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (grant received and the present value of future payments discounted using interest rate applied for standard loans with similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (maturity amounted to a reduction of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.13 370.10 Td ($30,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.63 370.10 Td ( in the debt carrying value, with such dif) Tj ET Q q 0 0 0 rg BT 390.34 370.10 Td (ference being amortized over the contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (period. In the event of commercial success, and sales of the product developed under this program are in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.34 358.10 Td (3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.73 358.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (\() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.83 346.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.72 346.10 Td (\), then the Company shall pay for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.36 346.10 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.36 346.10 Td ( consecutive years after the date of the termination of the refund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.14 346.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.47 346.10 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (revenues generated by the sales of the products or services \(up to a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.01 334.10 Td (600,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.51 334.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.34 334.10 Td ($655,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.84 334.10 Td (, over a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.92 334.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.92 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (years\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (In 2016, the Company received payments for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.50 301.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.50 301.10 Td ( foregoing projects of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.36 301.10 Td (342,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.86 301.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.69 301.10 Td ($379,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.19 301.10 Td (\) as grants and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.73 301.10 Td (594,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.23 301.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (\() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.83 289.10 Td ($642,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.33 289.10 Td (\) as for) Tj ET Q q 0 0 0 rg BT 118.47 289.10 Td (givable loans. In 2017, the Company received payments for one project of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.83 289.10 Td (176,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.33 289.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.83 289.10 Td (\($207,000\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.99 289.10 Td ( as a grant and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 277.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.38 277.10 Td ( projects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.03 277.10 Td (2,132,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.03 277.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.53 277.10 Td (\($2,509,000\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.19 277.10 Td ( as for) Tj ET Q q 0 0 0 rg BT 254.00 277.10 Td (givable loans. In 2018, the Company received payments for one project of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (421,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 265.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 265.10 Td ($492,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.33 265.10 Td (\) as a grant and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.91 265.10 Td (927,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.41 265.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.24 265.10 Td ($1,083,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.24 265.10 Td (\) as a for) Tj ET Q q 0 0 0 rg BT 317.32 265.10 Td (givable loan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (The estimated market rate of interest applied in 2018, 2017 and 2016 was between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.90 248.10 Td (1.80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.73 248.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.17 248.10 Td (2.30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 248.10 Td (. ) Tj ET Q q 0 0 0 rg BT 457.44 248.10 Td (Accrued interest of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td ($242,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 236.10 Td ( was recorded as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.27 236.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.27 236.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.10 236.10 Td ($159,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.60 236.10 Td ( as of December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.35 236.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.35 236.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.78 236.10 Td ($83,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.28 236.10 Td ( as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.03 236.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.03 236.10 Td (\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (15.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 203.10 Td (. Government loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (In September 2015, the Company received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.06 186.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.06 186.10 Td ( loans from Bpifrance for a total amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.73 186.10 Td (2,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.73 186.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.56 186.10 Td ($2,228,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.56 186.10 Td (\). One loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 174.10 Td (1,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 174.10 Td ( bears interest at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.08 174.10 Td (5.24%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.91 174.10 Td ( per year) Tj ET Q q 0 0 0 rg BT 233.48 174.10 Td (, paid quarterly; the second loan of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.11 174.10 Td (1,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.11 174.10 Td ( is interest-free. ) Tj ET Q q 0 0 0 rg BT 484.90 174.10 Td (The interest-free ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (loan has been revalued using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.23 162.10 Td (5.24%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.06 162.10 Td ( interest rate payable on the other loan. Both loans have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.99 162.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.76 162.10 Td ( year terms with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (principal being amortized on a quarterly basis beginning in June 2017.) Tj ET Q endstream endobj 295 0 obj <> endobj 296 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-42) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 701.10 Td (16) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 701.10 Td (. Pr) Tj ET Q q 0 0 0 rg BT 74.87 701.10 Td (ovisions) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 650.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 650.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 650.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 650.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 650.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 650.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 650.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 650.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 650.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 650.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 650.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 622.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 622.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 622.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 622.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 622.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 622.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 622.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 622.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 622.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 622.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 622.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 594.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 594.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 594.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 594.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 594.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 594.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 594.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 594.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 594.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 594.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 594.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 566.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 566.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 566.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 566.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 566.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 566.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 566.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 566.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 566.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 566.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 566.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 538.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 538.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 538.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 538.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 538.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 538.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 538.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 538.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 538.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 538.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 538.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 510.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 510.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 510.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 510.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 510.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 510.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 510.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 510.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 510.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 510.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 510.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 482.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 482.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 482.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 482.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 482.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 482.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 482.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 482.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 482.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 482.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 482.60 58.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 594.6 m 316 594.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 594.6 m 378 594.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 594.6 m 439 594.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 538.6 m 316 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 538.6 m 378 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 538.6 m 439 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 538.6 m 316 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 538.6 m 378 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 538.6 m 439 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 482.6 m 316 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 482.6 m 378 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 482.6 m 439 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 482.6 m 316 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 469.6 m 316 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 467.6 m 316 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 482.6 m 378 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 469.6 m 378 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 467.6 m 378 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 482.6 m 439 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 469.6 m 439 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 467.6 m 439 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 469.6 m 501 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 467.6 m 501 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 469.6 m 563 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 467.6 m 563 467.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.30 682.68 Td (Post-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.85 674.68 Td (employment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 273.65 666.68 Td (benefits) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.35 674.83 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.00 666.83 Td (pr) Tj ET Q q 0 0 0 rg BT 338.93 666.83 Td (ovisions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.25 666.83 Td (T) Tj ET Q q 0 0 0 rg BT 406.22 666.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.55 666.83 Td (Curr) Tj ET Q q 0 0 0 rg BT 474.81 666.83 Td (ent) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.55 666.83 Td (Non curr) Tj ET Q q 0 0 0 rg BT 543.81 666.83 Td (ent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 654.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.15 654.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 641.17 Td (At January 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.50 641.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.15 641.17 Td (728) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.50 641.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 641.17 Td (985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.50 641.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 641.17 Td (1,713) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.50 641.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 641.17 Td (317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 641.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 641.17 Td (1,396) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 627.17 Td (Arising \(released\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.80 627.22 Td (\(29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.15 627.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 627.17 Td (75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.80 627.17 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 627.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 627.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 613.17 Td (Released \(used\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.80 613.22 Td (\(1) Tj ET Q q 0 0 0 rg BT 307.13 613.22 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.15 613.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 613.22 Td (\(269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 613.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.45 613.17 Td (\(280) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 613.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 599.17 Td (Released \(unused\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 599.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 599.22 Td (\(127) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 599.17 Td (\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 414.60 598.47 Td (\(127) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 434.80 598.47 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 599.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 599.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 585.17 Td (At December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.15 585.17 Td (688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 585.17 Td (664) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 585.17 Td (1,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 585.17 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 585.17 Td (1,306) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 571.17 Td (Arising \(released\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.15 571.17 Td (216) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 571.17 Td (443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.80 571.17 Td (659) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 571.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 571.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 557.17 Td (Released \(used\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 557.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.80 557.22 Td (\(50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 557.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.45 557.17 Td (\(50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 557.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 557.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 557.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 543.17 Td (Released \(unused\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 543.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 543.22 Td (\(397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 543.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.45 543.17 Td (\(397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 543.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 543.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 543.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 529.17 Td (At December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.15 529.17 Td (904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 529.17 Td (660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 529.17 Td (1,564) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 529.17 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 529.17 Td (1,532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 515.17 Td (Arising \(released\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 515.17 Td (86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 515.17 Td (590) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.80 515.17 Td (676) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 515.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 515.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 501.17 Td (Released \(used\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 501.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.80 501.22 Td (\(32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 501.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.45 501.17 Td (\(32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 501.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 501.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 501.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 487.17 Td (Released \(unused\) during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 487.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 487.22 Td (\(167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 487.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.45 487.17 Td (\(167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 487.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 487.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 487.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 473.17 Td (At December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.50 473.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.15 473.17 Td (990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.50 473.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 473.17 Td (1,051) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.50 473.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 473.17 Td (2,041) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.50 473.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 473.17 Td (352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 473.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 473.17 Td (1,689) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.10 Td (The provision for post-employment benefits is for the lump sum retirement indemnity required to be paid to French employees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (if they retire as a Company employee. ) Tj ET Q q 0 0 0 rg BT 204.27 436.10 Td (The comprehensive income \(loss\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.16 436.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.16 436.10 Td ( includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.49 436.10 Td ($47,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.99 436.10 Td ( of actuarial loss \(actuarial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 424.10 Td ($46,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.89 424.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.67 424.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.67 424.10 Td ( and actuarial gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.57 424.10 Td ($120,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.07 424.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.85 424.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.85 424.10 Td (\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.18 424.10 Td (One) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.84 424.10 Td ( employee retired during the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.10 Td (2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 412.10 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 412.10 Td ( employee retired in 2017 or 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 Td (The main assumptions used in the calculation are the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 368.60 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 368.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 368.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 368.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 368.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 368.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 368.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 330.60 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 330.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 330.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 330.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 330.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 330.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 330.60 100.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 368.6 m 355 368.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 368.6 m 459 368.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 368.6 m 563 368.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.50 372.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.50 372.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.50 372.68 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 359.17 Td (Discount rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.55 359.17 Td (1.31%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.55 359.17 Td (1.30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.55 359.17 Td (1.57%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 345.17 Td (Salary increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.85 345.17 Td (Between 1.5% and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.05 335.17 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.85 345.17 Td (Between 1.5% and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.05 335.17 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.85 345.17 Td (Between 1.5% and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.05 335.17 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 321.17 Td (Retirement age) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.00 321.17 Td (60-62 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.00 321.17 Td (60-62 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 321.17 Td (60-62 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 307.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 307.17 Td (urnover: depending on the seniority) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.15 307.17 Td (4.35%, nil as from 64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.25 297.17 Td (year old) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 307.17 Td (4.35%, nil as from 64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.25 297.17 Td (year old) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 307.17 Td (4.35%, nil as from 64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.25 297.17 Td (year old) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (At December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.58 272.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.58 272.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.58 272.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.58 272.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.02 272.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.02 272.10 Td (, Other provisions include primarily estimated royalty payments assessed on sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (modules to holders of patents which may be deemed as essential under the requirements of the L) Tj ET Q q 0 0 0 rg BT 435.13 260.10 Td (TE standard. ) Tj ET Q q 0 0 0 rg BT 488.55 260.10 Td (The royalty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (provision is based on management) Tj ET Q q 0 0 0 rg BT 190.58 248.10 Td (s judgment, taking into consideration the various legal decisions, articles, reports and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (industry discussions on the subject which were available, and is recorded in the cost of product revenue. ) Tj ET Q q 0 0 0 rg BT 468.37 236.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 528.08 236.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (modules are considered as final products incorporating the full L) Tj ET Q q 0 0 0 rg BT 307.67 224.10 Td (TE function, and therefore may have royalties assessed on their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (sale; no royalties are accrued on the sales of chips as the full L) Tj ET Q q 0 0 0 rg BT 298.77 212.10 Td (TE functionality is not included in the chip and it is not current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (industry practice to license standard-essential patents at the component level. In the year ended December 31, 2017, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (Company revised the estimated royalty provision and reduced provisions from 2015 and 2016 by a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.58 188.10 Td ($397,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.08 188.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (\(provisions from 2014 and 2015 were reduced by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.45 176.10 Td ($127,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.95 176.10 Td ( in the year ended December 31, 2016\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (At December 31, 2018, the Company recorded a provision for risk for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.20 155.10 Td ($352,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.70 155.10 Td ( related to the probable expected costs to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (incurred by the Company related to the current class action litigation \(see Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.45 143.10 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.45 143.10 Td ( to the Consolidated Financial Statements\).) Tj ET Q endstream endobj 297 0 obj <> endobj 298 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 701.10 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 701.10 Td (. Other) Tj ET Q q 0 0 0 rg BT 89.87 701.10 Td ( non-curr) Tj ET Q q 0 0 0 rg BT 130.52 701.10 Td (ent liabilities ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 654.60 381.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 654.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 654.60 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 654.60 40.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 678.6 m 474 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 678.6 m 478 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 678.6 m 518 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 678.6 m 522 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 678.6 m 562 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 666.6 m 474 666.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 666.6 m 518 666.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 666.6 m 562 666.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 682.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.00 682.68 Td (At December) Tj ET Q q 0 0 0 rg BT 514.01 682.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 670.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.50 670.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.50 670.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.50 670.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 658.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.15 658.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 645.17 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 645.17 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 645.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 645.17 Td (691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 631.17 Td (Deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.50 631.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.60 631.17 Td (1,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.50 631.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.60 631.17 Td (1,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.50 631.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 631.17 Td (808) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (In December 2018, the Company recognized a net deferred tax liability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.00 606.10 Td ($691,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 606.10 Td ( related mainly to a deferred tax liability on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (the equity component of the convertible debt and the venture debt issued during the year of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.61 594.10 Td ($1,818,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.61 594.10 Td (, partially of) Tj ET Q q 0 0 0 rg BT 510.58 594.10 Td (fset by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (deferred tax asset related to unused tax losses which could be utilized in the period into which taxable temporary dif) Tj ET Q q 0 0 0 rg BT 513.89 582.10 Td (ferences are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (expected to reverse.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.10 Td (In December 2015, the Company entered into a contract with a customer for certain development services which resulted in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.10 Td (recognition of deferred revenues for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.38 537.10 Td ($1,940,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.38 537.10 Td ( to be recognized on a straight-line basis over four years beginning when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 525.10 Td (customer) Tj ET Q q 0 0 0 rg BT 86.53 525.10 Td () Tj ET Q q 0 0 0 rg BT 89.30 525.10 Td (s product is certified by a major U.S. carrier) Tj ET Q q 0 0 0 rg BT 264.80 525.10 Td (. ) Tj ET Q q 0 0 0 rg BT 269.25 525.10 Td (As revenues were expected to be recognized subsequent to December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.10 Td (31, 2018, these deferred revenues were presented as noncurrent liabilities as of December 31, 2017 and 2016. ) Tj ET Q q 0 0 0 rg BT 495.00 513.10 Td (The certification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.10 Td (occurred in September 2017 and therefore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.54 501.10 Td ($485,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.04 501.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.48 501.10 Td ($121,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.98 501.10 Td ( was recognized as revenue in 2018 and 2017, respectively) Tj ET Q q 0 0 0 rg BT 549.25 501.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.10 Td ($485,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 489.10 Td ( of the deferred revenues has been classified as current as of December 31, 2017 and 2018 and the remainder as non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 477.10 Td (current as of December 31, 2017 and 2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.10 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 444.10 Td (. ) Tj ET Q q 0 0 0 rg BT 64.32 444.10 Td (T) Tj ET Q q 0 0 0 rg BT 70.25 444.10 Td (rade payables, other) Tj ET Q q 0 0 0 rg BT 157.00 444.10 Td ( curr) Tj ET Q q 0 0 0 rg BT 178.20 444.10 Td (ent liabilities and deferr) Tj ET Q q 0 0 0 rg BT 280.51 444.10 Td (ed r) Tj ET Q q 0 0 0 rg BT 297.27 444.10 Td (evenue) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 397.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 397.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 397.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 397.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 397.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 397.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 397.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 369.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 369.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 369.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 369.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 369.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 369.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 369.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 341.60 366.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 341.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 341.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 341.60 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 421.6 m 465 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 421.6 m 469 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 421.6 m 514 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 421.6 m 518 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 421.6 m 563 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 409.6 m 465 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 421.6 m 514 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 409.6 m 514 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 409.6 m 563 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 341.6 m 465 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 341.6 m 514 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 341.6 m 563 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 341.6 m 465 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 328.6 m 465 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 326.6 m 465 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 341.6 m 514 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 328.6 m 514 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 326.6 m 514 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 341.6 m 563 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 328.6 m 563 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 326.6 m 563 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 326.6 m 465 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 328.6 m 465 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 314.6 m 465 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 312.6 m 465 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 326.6 m 514 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 328.6 m 514 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 314.6 m 514 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 312.6 m 514 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 326.6 m 563 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 328.6 m 563 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 314.6 m 563 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 312.6 m 563 312.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 425.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.50 425.68 Td (At December) Tj ET Q q 0 0 0 rg BT 507.51 425.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 413.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 413.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 413.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 413.68 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 401.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.65 401.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 388.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.43 388.17 Td (rade payables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 388.17 Td (18,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 388.17 Td (13,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 388.17 Td (9,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 374.17 Td (Other current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 360.17 Td (Employees and social debts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 360.17 Td (3,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 360.17 Td (3,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 360.17 Td (3,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 346.17 Td (Others) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 346.17 Td (1,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 346.17 Td (1,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 346.17 Td (1,563) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 332.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 332.17 Td (otal other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 332.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 332.17 Td (4,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 332.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 332.17 Td (5,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 332.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 332.17 Td (4,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 318.17 Td (Deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 318.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 318.17 Td (335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 318.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 318.17 Td (740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 318.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 318.17 Td (973) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 293.10 Td (erms and conditions of the above financial liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 272.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 272.10 Td (T) Tj ET Q q 0 0 0 rg BT 100.26 272.10 Td (rade payables are non-interest bearing and are generally settled on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.36 272.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.36 272.10 Td (-day terms.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 251.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 251.10 Td (Other payables, primarily accrued compensation and related social char) Tj ET Q q 0 0 0 rg BT 380.58 251.10 Td (ges, are non-interest bearing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.53 230.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.53 230.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.97 230.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.97 230.10 Td (, trade payables included the current part of a supplier debt recorded at the discounted value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (calculated with an interest rate of 8.34% and amounting to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.81 218.10 Td ($5,061,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.81 218.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.25 218.10 Td ($2,399,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.25 218.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 447.91 218.10 Td (. ) Tj ET Q q 0 0 0 rg BT 452.73 218.10 Td (The final installment of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (supplier debt was settled in January 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.53 185.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.53 185.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.53 185.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.53 185.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.97 185.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.97 185.10 Td (, deferred revenue is related to maintenance revenue, recognized over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.09 185.10 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.09 185.10 Td (-month ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (maintenance period.In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.90 173.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.90 173.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.34 173.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.34 173.10 Td (, in addition to deferred maintenance revenue, the Company recognized deferred revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (related to development services agreements. ) Tj ET Q q 0 0 0 rg BT 228.32 161.10 Td (At December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.40 161.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.40 161.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.84 161.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.84 161.10 Td (, deferred development services revenue totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td ($61,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 149.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.44 149.10 Td ($148,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.94 149.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 191.60 149.10 Td (, which was recognized during the year ended December 31, 2018 and is expected to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (recognized during the year ended December 31, 2019, respectively) Tj ET Q q 0 0 0 rg BT 316.52 137.10 Td (. ) Tj ET Q q 0 0 0 rg BT 321.34 137.10 Td (There was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.20 137.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.20 137.10 Td ( deferred development services revenue at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (December 31, 2016.) Tj ET Q endstream endobj 299 0 obj <> endobj 300 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 701.10 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 701.10 Td (. Information about financial instruments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (19.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 680.10 Td (. Financial assets and liabilities) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 617.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 617.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 617.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 617.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 617.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 617.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 617.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 587.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 587.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 587.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 587.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 587.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 587.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 587.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 557.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 557.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 557.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 557.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 557.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 557.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 557.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 557.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 557.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 557.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 557.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 557.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 557.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 527.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 527.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 527.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 527.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 527.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 527.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 527.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 487.60 219.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 487.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 487.60 45.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 487.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 487.60 45.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 487.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 487.60 45.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 487.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 487.60 45.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 487.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 487.60 45.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 487.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 487.60 45.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 444.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 444.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 444.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 444.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 444.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 444.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 444.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 444.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 444.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 444.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 444.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 444.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 444.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 414.60 219.00 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gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 384.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 384.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 384.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 384.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 384.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 384.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 384.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 384.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 384.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 384.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 384.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 384.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 354.60 219.00 -15.00 re f /GS0 gs 0.8 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1 rg /GS0 gs 269.00 324.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 324.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 324.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 324.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 324.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 324.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 324.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 324.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 324.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 324.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 324.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 324.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 294.60 219.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 294.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.00 294.60 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 294.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 294.60 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 294.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 294.60 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 294.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 294.60 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 294.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 294.60 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 294.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 294.60 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 244.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 244.60 4.00 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1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 656.6 m 367 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 656.6 m 371 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 656.6 m 416 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 656.6 m 465 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 656.6 m 469 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 656.6 m 514 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 656.6 m 518 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 656.6 m 563 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 643.6 m 318 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 643.6 m 322 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 643.6 m 367 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 643.6 m 371 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 643.6 m 416 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 643.6 m 465 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 643.6 m 469 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 643.6 m 514 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 643.6 m 518 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 643.6 m 563 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 630.6 m 318 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 630.6 m 367 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 630.6 m 416 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 630.6 m 465 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 630.6 m 514 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 630.6 m 563 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 444.6 m 318 444.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 444.6 m 367 444.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 444.6 m 416 444.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 444.6 m 465 444.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 444.6 m 514 444.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 444.6 m 563 444.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 229.60000000000002 m 318 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 229.60000000000002 m 367 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 229.60000000000002 m 416 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 229.60000000000002 m 465 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 229.60000000000002 m 514 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 229.60000000000002 m 563 229.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 660.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.10 660.83 Td (Carrying amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.60 660.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 488.19 660.83 Td ( value) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 647.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.75 647.83 Td (December) Tj ET Q q 0 0 0 rg BT 355.32 647.83 Td (31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.75 647.83 Td (December) Tj ET Q q 0 0 0 rg BT 502.32 647.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 634.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.00 634.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.00 634.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.00 634.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 634.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 634.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 634.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 621.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.15 621.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 608.17 Td (Financial assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 593.17 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 593.17 Td (rade and other receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 578.17 Td (T) Tj ET Q q 0 0 0 rg BT 94.43 578.17 Td (rade receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 577.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 577.27 Td (15,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 577.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 577.27 Td (20,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 577.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 577.27 Td (15,884) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 577.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 577.27 Td (15,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 577.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 577.27 Td (20,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 577.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 577.27 Td (15,884) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 563.17 Td (Deposits and other receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 548.17 Td (Deposits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 547.27 Td (332) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 547.27 Td (402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 547.27 Td (394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 547.27 Td (332) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 547.27 Td (402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 547.27 Td (394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 533.17 Td (Other financial assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 518.17 Td (Long-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 517.27 Td (310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 517.27 Td (353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 517.27 Td (337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 517.27 Td (310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 517.27 Td (353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 517.27 Td (337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 503.17 Td (Financial instruments at fair value through other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 493.17 Td (comprehensive income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 478.17 Td (Cash flow hedges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 474.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 474.27 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 474.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 474.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 474.27 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 474.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 460.17 Td (Cash, cash equivalents and short-term) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 450.17 Td (investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 449.27 Td (20,547) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 449.27 Td (3,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 449.27 Td (12,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 449.27 Td (20,547) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 449.27 Td (3,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 449.27 Td (12,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 435.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 435.17 Td (otal financial assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 434.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 434.27 Td (36,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 434.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 434.27 Td (25,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 434.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 434.27 Td (28,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 434.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 434.27 Td (36,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 434.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 434.27 Td (25,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 434.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 434.27 Td (28,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 420.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 420.17 Td (otal current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 419.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 419.27 Td (35,832) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 419.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 419.27 Td (24,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 419.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 419.27 Td (27,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 419.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 419.27 Td (35,832) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 419.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 419.27 Td (24,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 419.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 419.27 Td (27,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 405.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 405.17 Td (otal non-current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 404.27 Td (642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 404.27 Td (755) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 404.27 Td (731) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 404.27 Td (642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 404.27 Td (755) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 404.27 Td (731) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 390.17 Td (Financial liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 375.17 Td (Interest-bearing loans and borrowings:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 360.17 Td (Interest-bearing receivables financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 359.27 Td (7,712) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 359.27 Td (7,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 359.27 Td (10,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 359.27 Td (7,712) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 359.27 Td (7,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 359.27 Td (10,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 345.17 Td (Convertible debt and accrued expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 344.27 Td (16,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 344.27 Td (17,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 344.27 Td (19,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 344.27 Td (16,1) Tj ET Q q 0 0 0 rg BT 451.10 344.27 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 344.27 Td (16,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 344.27 Td (19,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 330.17 Td (V) Tj ET Q q 0 0 0 rg BT 95.17 330.17 Td (enture debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 329.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 329.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 329.27 Td (12,634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 329.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 329.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 329.27 Td (12,634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 315.17 Td (Government loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 314.27 Td (1,852) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 314.27 Td (2,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 314.27 Td (1,431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 314.27 Td (1,852) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 314.27 Td (2,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 314.27 Td (1,431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 300.17 Td (Research project financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 299.27 Td (3,306) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 299.27 Td (4,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 299.27 Td (4,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 299.27 Td (3,306) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 299.27 Td (4,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 299.27 Td (4,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 285.17 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 285.17 Td (rade and other payables \(current and non) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 275.17 Td (current\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 274.27 Td (18,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 274.27 Td (13,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 274.27 Td (9,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 274.27 Td (18,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 274.27 Td (13,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 274.27 Td (9,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 260.17 Td (Financial instruments at fair value through other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 250.17 Td (comprehensive income:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 235.17 Td (Cash flow hedges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 234.27 Td (150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 234.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 234.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 234.27 Td (150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 234.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 234.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 220.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 220.17 Td (otal financial liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 219.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 219.27 Td (47,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 219.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 219.27 Td (43,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 219.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 219.27 Td (58,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 219.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 219.27 Td (47,493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 219.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 219.27 Td (42,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 219.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 219.27 Td (58,168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 205.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 205.17 Td (otal current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 204.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 204.27 Td (26,431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 204.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 204.27 Td (21,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 204.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 204.27 Td (21,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 204.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 204.27 Td (26,431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 204.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 204.27 Td (21,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 204.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 204.27 Td (21,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 190.17 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 190.17 Td (otal non-current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 189.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 189.27 Td (21,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 189.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.60 189.27 Td (21,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 189.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.60 189.27 Td (37,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 189.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.60 189.27 Td (21,062) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 189.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 189.27 Td (20,885) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 189.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 189.27 Td (37,008) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (The carrying values of current financial instruments \(cash and cash equivalents, short-term investments, trade receivables and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (trade and other payables, and interest-bearing receivables financing\) approximate their fair values, due to their short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (nature.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (A) Tj ET Q q 0 0 0 rg BT 55.98 119.10 Td (vailable for sale long-term investments are primarily related to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 102.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 102.10 Td (a bank guarantee secured by pledges of investments in money market funds issued in favor of the owners of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 90.10 Td (leased of) Tj ET Q q 0 0 0 rg BT 157.13 90.10 Td (fice space to secure annual lease payments by the Company for its of) Tj ET Q q 0 0 0 rg BT 432.97 90.10 Td (fice space in Colombes; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 73.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 73.10 Td (bank credit lines used in connection with the purchase of hedging instruments and finance lease, also secured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 61.10 Td (by pledged money market funds.) Tj ET Q endstream endobj 301 0 obj <> endobj 302 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (Government loans received from the financial agency of the French government were recorded as financial instruments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (compliance with IAS 20 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 149.48 710.10 Td (Accounting for Government Grants and Disclosur) Tj ET Q q 0 0 0 rg BT 349.92 710.10 Td (e of Government ) Tj ET Q q 0 0 0 rg BT 418.89 710.10 Td (Assistance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 684.10 Td (Fair V) Tj ET Q q 0 0 0 rg BT 75.90 684.10 Td (alue Hierarchy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.10 Td (The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.10 Td (technique:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 630.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 630.10 Td (Level 1: quoted \(unadjusted\) prices in active markets for identical assets or liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 609.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 609.10 Td (Level 2: other techniques for which all inputs which have a significant ef) Tj ET Q q 0 0 0 rg BT 413.45 609.10 Td (fect on the recorded fair value are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 597.10 Td (observable, either directly or indirectly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 576.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 576.10 Td (Level 3: techniques which use inputs that have a significant ef) Tj ET Q q 0 0 0 rg BT 370.13 576.10 Td (fect on the recorded fair value that are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 564.10 Td (based on observable market data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (As at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.41 543.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.41 543.10 Td (, the Company held the following financial instruments carried at fair value on the statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.10 Td (financial position:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (Assets measured at fair value) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 458.60 297.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 458.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.00 458.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 458.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 458.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 458.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 458.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 458.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 458.60 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 482.6 m 416 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 470.6 m 416 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 470.6 m 465 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 470.6 m 514 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 470.6 m 563 470.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.50 486.68 Td (AtDecember) Tj ET Q q 0 0 0 rg BT 399.51 486.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 474.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.00 474.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.65 474.68 Td (Level1) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.65 474.68 Td (Level2) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.65 474.68 Td (Level3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 462.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.15 462.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 449.17 Td (Long-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.50 449.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 449.17 Td (310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 449.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 449.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 449.17 Td (310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 449.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (Liabilities measured at fair value ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 188.10 419.10 Td (\(on a recurring basis\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 372.60 297.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 372.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.00 372.60 65.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 372.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 372.60 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 372.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 372.60 45.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.00 372.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 372.60 45.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 396.6 m 416 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 384.6 m 416 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 384.6 m 465 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 384.6 m 514 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 384.6 m 563 384.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.50 400.68 Td (AtDecember) Tj ET Q q 0 0 0 rg BT 399.51 400.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 388.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.00 388.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.65 388.68 Td (Level1) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.65 388.68 Td (Level2) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.65 388.68 Td (Level3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 376.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.15 376.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 363.17 Td (Financial instruments at fair value through other comprehensive) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 353.17 Td (income:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 338.17 Td (Cash flow hedge) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.50 338.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.80 338.22 Td (\(150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 338.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 338.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 338.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.80 338.22 Td (\(150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 338.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 338.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (As at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.41 313.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.41 313.10 Td (, the Company held the following financial instruments carried at fair value on the statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (financial position:) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (Assets measured at fair value) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 228.60 297.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 228.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 228.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 228.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 228.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 228.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 228.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 228.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 228.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 188.60 297.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 188.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 188.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 188.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 188.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 188.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 188.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 188.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 188.60 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 252.60000000000002 m 415 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 240.60000000000002 m 415 240.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 240.60000000000002 m 464 240.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 240.60000000000002 m 513 240.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 240.60000000000002 m 562 240.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.50 256.68 Td (AtDecember) Tj ET Q q 0 0 0 rg BT 398.51 256.68 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 244.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 374.00 244.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.65 244.68 Td (Level1) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.65 244.68 Td (Level2) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.65 244.68 Td (Level3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 232.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.15 232.68 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 219.17 Td (Long-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.50 219.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 219.17 Td (353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 219.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 219.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 219.17 Td (353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 219.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 205.17 Td (Financial instruments at fair value through other comprehensive) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 195.17 Td (income:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 179.17 Td (Cash flow hedge) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 179.17 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 179.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 179.17 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 179.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (There were no liabilities measured at fair value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (As at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.41 104.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.41 104.10 Td (, the Company held the following financial instruments carried at fair value on the statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (financial position:) Tj ET Q endstream endobj 303 0 obj <> endobj 304 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-46) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Assets measured at fair value) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 675.75 297.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 675.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 675.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 675.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 675.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 675.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 675.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 675.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 675.75 45.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 699.75 m 415 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 687.75 m 415 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 687.75 m 464 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 687.75 m 513 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 687.75 m 562 687.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.50 703.83 Td (AtDecember) Tj ET Q q 0 0 0 rg BT 398.51 703.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 691.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 374.00 691.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.65 691.83 Td (Level1) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.65 691.83 Td (Level2) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.65 691.83 Td (Level3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 679.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.15 679.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 666.32 Td (Long-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.50 666.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 666.32 Td (337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 666.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 666.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 666.32 Td (337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 666.32 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (There were no liabilities measured at fair value.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (19.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 605.25 Td (. Financial instruments at fair) Tj ET Q q 0 0 0 rg BT 194.31 605.25 Td ( value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.25 Td (The Company uses financial instruments, including derivatives such as foreign currency forward and options contracts, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.25 Td (reduce the foreign exchange risk on cash flows from firm and highly probable commitments denominated in euros.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.25 Td (The following tables present fair values of derivative financial instruments at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.82 555.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.82 555.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.25 555.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.25 555.25 Td (. ) Tj ET Q q 0 0 0 rg BT 483.07 555.25 Td (There was no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.25 Td (derivative financial instrument outstanding at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.20 543.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.20 543.25 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 496.75 375.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 496.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 496.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 496.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 496.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 468.75 375.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 468.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 468.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 468.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 468.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 406.75 375.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 406.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 406.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 378.75 375.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 378.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 378.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 378.75 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 520.75 m 493 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 520.75 m 497 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 520.75 m 562 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 508.75 m 493 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 508.75 m 562 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 468.75 m 493 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 468.75 m 562 468.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 455.75 m 493 455.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 453.75 m 493 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 455.75 m 562 455.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 453.75 m 562 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 453.75 m 493 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 455.75 m 493 455.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 453.75 m 497 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 455.75 m 497 455.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 453.75 m 562 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 455.75 m 562 455.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 430.75 m 493 430.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 430.75 m 497 430.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 430.75 m 562 430.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 418.75 m 493 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 418.75 m 562 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 378.75 m 493 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 378.75 m 562 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 365.75 m 493 365.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 363.75 m 493 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 365.75 m 562 365.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 363.75 m 562 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 363.75 m 493 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 365.75 m 493 365.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 363.75 m 497 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 365.75 m 497 365.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 363.75 m 562 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 365.75 m 562 365.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 524.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.00 524.83 Td (At December) Tj ET Q q 0 0 0 rg BT 502.01 524.83 Td ( 31, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 512.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.55 512.83 Td (Notional) Tj ET Q q 0 0 0 rg BT 461.67 512.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.60 512.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 526.19 512.83 Td (value) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 500.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.15 500.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 487.32 Td (Forward contracts \(buy U.S dollars, sell euros\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 487.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 487.32 Td (5,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 487.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 487.37 Td (\(142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 487.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 473.32 Td (Options \(buy euros, sell U.S. dollars\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 473.32 Td (1,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.80 473.37 Td (\(8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 473.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 459.32 Td (T) Tj ET Q q 0 0 0 rg BT 57.26 459.32 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 459.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 459.32 Td (7,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 459.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 459.37 Td (\(150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 459.32 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 434.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.00 434.83 Td (At December) Tj ET Q q 0 0 0 rg BT 502.01 434.83 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 422.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.55 422.83 Td (Notional) Tj ET Q q 0 0 0 rg BT 461.67 422.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.60 422.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 526.19 422.83 Td (value) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 410.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.15 410.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 397.32 Td (Forward contracts \(buy euros, sell U.S. dollars\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 397.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 397.32 Td (2,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 397.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 397.32 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 383.32 Td (Options \(buy euros, sell U.S. dollars\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 383.32 Td (3,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 383.32 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 369.32 Td (T) Tj ET Q q 0 0 0 rg BT 56.91 369.32 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 369.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 369.32 Td (5,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 369.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 369.32 Td (72) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (The fair value of foreign currency related derivatives are included in the Consolidated Statement of Financial Position in Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (current financial liabilities at December 31, 2016 and in "Prepaid and other receivables" at December 31, 2017. ) Tj ET Q q 0 0 0 rg BT 501.76 320.25 Td (The earnings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (impact of cash flow hedges relating to forecasted operating expense transactions is reported in operating expense. Realized and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (unrealized gains and losses on these instruments deemed ef) Tj ET Q q 0 0 0 rg BT 286.47 296.25 Td (fective for hedge accounting are deferred in accumulated other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (comprehensive income until the underlying transaction is recognized in earnings or the instruments are designated as hedges.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.25 Td (During the year ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.71 263.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.71 263.25 Td (, the Company recorded a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.12 263.25 Td ($69,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.62 263.25 Td ( \(gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.00 263.25 Td ($195,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 263.25 Td ( and loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.83 263.25 Td ($91,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.33 263.25 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.25 Td (the years ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.78 251.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.78 251.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.21 251.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.21 251.25 Td (, respectively\) in other comprehensive income \(loss\) related to the ef) Tj ET Q q 0 0 0 rg BT 506.65 251.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.25 Td (portion of the change in fair value of its cash flow hedges. During the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.92 239.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.92 239.25 Td (, the amount reclassified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (from other comprehensive income to Consolidated Statement of Operations was a gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.24 227.25 Td ($53,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.74 227.25 Td ( \(losses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.79 227.25 Td ($74,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.29 227.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td ($44,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 215.25 Td ( during the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.49 215.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.49 215.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.93 215.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.93 215.25 Td (, respectively\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (During the year ended December31, 2017, the Company recognized a net loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.73 194.25 Td ($3,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.23 194.25 Td ( related to the inef) Tj ET Q q 0 0 0 rg BT 477.79 194.25 Td (fective position of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (hedging instruments. ) Tj ET Q q 0 0 0 rg BT 135.70 182.25 Td (There was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.57 182.25 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.57 182.25 Td ( inef) Tj ET Q q 0 0 0 rg BT 207.43 182.25 Td (fective portion of hedging instruments in the years ended December 31, 2016 and 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (The derivatives have maturity dates of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.77 161.25 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.77 161.25 Td ( months. Management believes counterparty risk on financial instruments is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (minimal since the Company deals with major banks and financial institutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (The use of dif) Tj ET Q q 0 0 0 rg BT 105.13 128.25 Td (ferent estimations, methodologies and assumptions could have a material ef) Tj ET Q q 0 0 0 rg BT 407.65 128.25 Td (fect on the estimated fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (amounts. ) Tj ET Q q 0 0 0 rg BT 88.21 116.25 Td (The methodologies are as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 99.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 99.25 Td (Cash, cash equivalents, short-term investments, accounts receivable, accounts payable, other receivable and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 87.25 Td (accrued liabilities: due to the short-term nature of these balances, carrying amounts approximate fair value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 70.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 70.25 Td (Long-term investments are composed of debt-based mutual funds with traded market prices. ) Tj ET Q q 0 0 0 rg BT 493.16 70.25 Td (Their fair values ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 58.25 Td (amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.71 58.25 Td ($310,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.21 58.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.21 58.25 Td ($353,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.71 58.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 58.25 Td ($337,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 58.25 Td ( at December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.45 58.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.45 58.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.45 58.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.45 58.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.89 58.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.89 58.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 518.55 58.25 Td (.) Tj ET Q endstream endobj 305 0 obj <> endobj 306 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 722.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 722.10 Td (Foreign exchange forward and option contracts: the fair values of foreign exchange forward and option ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 710.10 Td (contracts were calculated using the market price that the Company would pay or receive to settle the related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 698.10 Td (agreements, by reference to published exchange rates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (19.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 677.10 Td (. Financial risk management objectives and policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 660.10 Td (s principal financial liabilities comprise trade payables \(current and non-current\), interest-bearing receivables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.10 Td (financing, government loans, convertible debt and venture debt. ) Tj ET Q q 0 0 0 rg BT 307.29 648.10 Td (The Company has various financial assets such as trade ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.10 Td (receivables and cash and cash equivalents, which arise directly from its operations, as well as from capital increases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (The main risks arising from the Company) Tj ET Q q 0 0 0 rg BT 219.47 615.10 Td (s financial instruments are foreign currency risk, credit risk, interest rate risk and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.10 Td (cash flow liquidity risk. ) Tj ET Q q 0 0 0 rg BT 146.81 603.10 Td (The Board of Directors reviews and agrees policies for managing each of these risks which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (summarized below) Tj ET Q q 0 0 0 rg BT 124.66 591.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (Foreign currency risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (The Company faces the following foreign currency exposures:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 531.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 531.10 Td (Operating activities, when revenues or expenses are denominated in dif) Tj ET Q q 0 0 0 rg BT 406.77 531.10 Td (ferent currencies from the functional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 519.10 Td (currency of the entity carrying out these transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 502.10 Td (V) Tj ET Q q 0 0 0 rg BT 127.61 502.10 Td (enture debt and government loans denominated in euros while the functional currency of the entity carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 490.10 Td (out these transactions is the U.S. dollar) Tj ET Q q 0 0 0 rg BT 277.03 490.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 473.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 473.10 Td (Non derivative monetary financial instruments that are denominated and settled in a currency dif) Tj ET Q q 0 0 0 rg BT 508.13 473.10 Td (ferent from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 461.10 Td (the functional currency of the entity which holds them.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (Nearly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.21 440.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.54 440.10 Td ( of total revenues and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.38 440.10 Td (87%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.71 440.10 Td ( of total cost of sales are denominated in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 522.57 440.10 Td (, as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (result of significant headcount and related costs from operations in France, which are denominated and settled in euros \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (structural costs\), the Company has transactional currency exposures which can be af) Tj ET Q q 0 0 0 rg BT 395.30 416.10 Td (fected significantly by movements in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (US dollar/euro exchange rates. ) Tj ET Q q 0 0 0 rg BT 174.73 404.10 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.78 404.10 Td (64%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.11 404.10 Td ( of operating expense is denominated in euros. \(See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.87 404.10 Td (19.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.37 404.10 Td (regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (hedging arrangements\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (If there were a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.01 371.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.34 371.10 Td ( increase or decrease in exchange rate of the U.S. dollar to the euro, as measured using the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.89 371.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.89 371.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (weighted average exchange rate of one euro = ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.16 359.10 Td ($1.1852) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.66 359.10 Td (, the Company estimates the impact, in absolute terms, on operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (expenses and on financial liabilities for the year ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.28 347.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.28 347.10 Td ( would have been approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.29 347.10 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.18 347.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 321.10 Td (Credit risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (It is the Company) Tj ET Q q 0 0 0 rg BT 123.66 304.10 Td (s policy that all customers who wish to trade on credit terms are subject to credit verification procedures and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 Td (as such are considered to have low credit risk at initial recognition. ) Tj ET Q q 0 0 0 rg BT 319.51 292.10 Td (The Company has subscribed to a credit insurance policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.10 Td (which provides assistance in determining credit limits and collection, in addition to some coverage of uncollectible amounts. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.10 Td (addition, receivable balances are monitored on an ongoing basis. ) Tj ET Q q 0 0 0 rg BT 310.62 268.10 Td (There is a rebuttable presumption in IFRS 9 that the credit risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.10 Td (on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.10 Td (due. ) Tj ET Q q 0 0 0 rg BT 68.76 244.10 Td (The Company considers that credit risk has not increased significantly on its outstanding not impaired trade receivables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.10 Td (since initial recognition. ) Tj ET Q q 0 0 0 rg BT 148.74 232.10 Td (The Company considers events of default based on the specific facts and circumstances relevant to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.10 Td (outstanding amount.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (The following table summarizes customers representing a significant portion of the Company) Tj ET Q q 0 0 0 rg BT 426.35 199.10 Td (s total revenue:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 52.00 153.60 39.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 91.00 153.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 95.00 153.60 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.00 153.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.00 153.60 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 243.00 153.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 153.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 153.60 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 153.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 153.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 153.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 153.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 153.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 153.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 153.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 52.00 123.60 39.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 91.00 123.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 95.00 123.60 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.00 123.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.00 123.60 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 243.00 123.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 123.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 123.60 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 123.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 123.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 123.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 123.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 123.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 123.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 123.60 54.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 52 166.60000000000002 m 91 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 166.60000000000002 m 166 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 166.60000000000002 m 243 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 243 166.60000000000002 m 247 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 166.60000000000002 m 312 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 166.60000000000002 m 317 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 166.60000000000002 m 385 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 166.60000000000002 m 443 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 166.60000000000002 m 447 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 166.60000000000002 m 501 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 166.60000000000002 m 505 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 166.60000000000002 m 559 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 166.60000000000002 m 243 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 153.60000000000002 m 243 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 243 166.60000000000002 m 247 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 166.60000000000002 m 312 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 153.60000000000002 m 312 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 166.60000000000002 m 317 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 166.60000000000002 m 385 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 153.60000000000002 m 385 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 153.60000000000002 m 443 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 153.60000000000002 m 501 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 153.60000000000002 m 559 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 153.60000000000002 m 501 153.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 153.60000000000002 m 559 153.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 54.50 170.85 Td (Customer) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.50 170.85 Td (Customer Location) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 192.55 170.85 Td (% of total revenues for the year ended December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.00 170.85 Td (T) Tj ET Q q 0 0 0 rg BT 422.75 170.85 Td (rade receivables at December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 54.50 157.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.50 157.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.00 157.85 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.00 157.85 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.50 157.85 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 157.85 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.50 157.85 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.50 157.85 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 144.17 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 143.27 Td (T) Tj ET Q q 0 0 0 rg BT 103.26 143.27 Td (aiwan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.15 143.27 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.15 143.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.15 143.27 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 143.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.60 143.27 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 143.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.10 143.27 Td (5,881,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 143.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.10 143.27 Td (4,060,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 143.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.15 143.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 129.17 Td (B) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 128.27 Td (China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.15 128.27 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.15 128.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.60 128.27 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.60 128.27 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.10 128.27 Td (1,858,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 128.27 Td (91) Tj ET Q q 0 0 0 rg BT 474.65 128.27 Td (1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.15 128.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 114.17 Td (C) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 113.27 Td (T) Tj ET Q q 0 0 0 rg BT 103.26 113.27 Td (aiwan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.60 113.27 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.15 113.27 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 113.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 113.27 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 113.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 113.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.10 113.27 Td (2,526,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 113.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.10 113.27 Td (5,352,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 113.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.10 113.27 Td (4,870,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 99.17 Td (D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 98.27 Td (China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.60 98.27 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.60 98.27 Td (Less than 10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 98.27 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 98.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 98.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 98.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 98.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 98.27 Td (667,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 98.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.30 98.32 Td (\(100,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.15 98.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.54 73.10 Td (ith respect to credit risk arising from the other financial assets, which comprise cash and cash equivalents, the Company) Tj ET Q q 0 0 0 rg BT 541.17 73.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.10 Td (exposure to credit risk arises from default of the counterparty) Tj ET Q q 0 0 0 rg BT 294.04 61.10 Td (, with a maximum exposure equal to the carrying amount of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.10 Td (instruments. Nearly all cash and cash equivalents are held in France at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.01 49.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.00 49.10 Td ( lar) Tj ET Q q 0 0 0 rg BT 365.86 49.10 Td (ge and international banks.) Tj ET Q endstream endobj 307 0 obj <> endobj 308 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-48) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (V) Tj ET Q q 0 0 0 rg BT 55.06 722.25 Td (endor concentration risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 705.25 Td (Access to foundry capacity is critical to the Company) Tj ET Q q 0 0 0 rg BT 266.66 705.25 Td (s operations as a fabless semiconductor company) Tj ET Q q 0 0 0 rg BT 462.62 705.25 Td (. ) Tj ET Q q 0 0 0 rg BT 467.44 705.25 Td (The Company depends ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 693.25 Td (on a sole independent foundry in ) Tj ET Q q 0 0 0 rg BT 183.18 693.25 Td (T) Tj ET Q q 0 0 0 rg BT 188.59 693.25 Td (aiwan to manufacture its semiconductor wafers.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 667.25 Td (Liquidity risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (The Company monitors its risk of a shortage of funds using a cash flow planning tool. ) Tj ET Q q 0 0 0 rg BT 396.21 650.25 Td (This tool considers the maturity of both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (its financial investments and financial assets \(e.g. accounts receivables, other financial assets\) and projected cash flows from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.25 Td (The following table includes our contractual obligations, including interest, for existing financial liabilities as of the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.25 Td (dates: ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 544.75 198.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 544.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 544.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 544.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 544.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 544.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 544.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 544.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 515.75 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 515.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 515.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 515.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 515.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 515.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 515.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 515.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 485.75 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 485.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 485.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 485.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 485.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 485.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 485.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 485.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 455.75 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 455.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 455.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 455.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 455.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 455.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 455.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 455.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 425.75 198.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 425.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 425.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 425.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 425.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 425.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 425.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 425.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 396.75 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 396.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 396.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 396.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 396.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 396.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 396.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 396.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 366.75 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 366.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 366.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 366.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 366.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 366.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 366.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 366.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 336.75 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 336.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 336.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 336.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 336.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 336.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 336.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 336.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 306.75 198.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 306.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 306.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 306.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 306.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 306.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 306.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 306.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 277.75 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 277.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 277.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 277.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 277.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 277.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 277.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 277.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 247.75 198.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 247.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 247.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 247.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 247.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 247.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 247.75 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 247.75 45.00 -15.00 re f /GS0 gs 0.8 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Td (18,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 446.32 Td (Other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.65 445.42 Td (4,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 445.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 445.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 445.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 445.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 445.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 445.42 Td (4,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.60 430.42 Td (32,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 430.42 Td (1,007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.60 430.42 Td (17,453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 430.42 Td (795) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 430.42 Td (387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 430.42 Td (228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.25 430.42 Td (51,898) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 416.48 Td (At December) Tj ET Q q 0 0 0 rg BT 108.77 416.48 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 402.32 Td (Research project financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 401.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 401.42 Td (899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.50 401.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 401.42 Td (1,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 401.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 401.42 Td (671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 401.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 401.42 Td (291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 401.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 401.42 Td (297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 401.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 401.42 Td (441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 401.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 401.42 Td (3,845) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 387.32 Td (Interest-bearing receivables financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.65 386.42 Td (7,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 386.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 386.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 386.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 386.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 386.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 386.42 Td (7,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 372.32 Td (Government loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 371.42 Td (600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.15 371.42 Td (398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 371.42 Td (398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 371.42 Td (398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 371.42 Td (159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 371.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 371.42 Td (1,953) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 357.32 Td (Convertible debt and accrued interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.15 356.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.60 356.42 Td (1) Tj ET Q q 0 0 0 rg BT 311.60 356.42 Td (1,861) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 356.42 Td (5,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 356.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 356.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 356.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.25 356.42 Td (17,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 342.32 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 342.32 Td (rade payables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.60 341.42 Td (13,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 341.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 341.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 341.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 341.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 341.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.25 341.42 Td (13,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 327.32 Td (Other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.65 326.42 Td (5,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 326.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 326.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 326.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 326.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 326.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 326.42 Td (5,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 311.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.60 311.42 Td (27,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.50 311.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.60 311.42 Td (13,505) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 311.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 311.42 Td (6,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 311.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 311.42 Td (689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 311.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 311.42 Td (456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 311.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 311.42 Td (441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 311.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.25 311.42 Td (48,435) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 297.48 Td (At December) Tj ET Q q 0 0 0 rg BT 108.68 297.48 Td ( 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 283.32 Td (Research project financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 282.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 282.42 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.50 282.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.15 282.42 Td (973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 282.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 282.42 Td (2,043) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 282.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.65 282.42 Td (1,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 282.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 282.42 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 282.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 282.42 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 282.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 282.42 Td (5,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 268.32 Td (Interest-bearing receivables financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.60 267.42 Td (10,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 267.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 267.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 267.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 267.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 267.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.25 267.42 Td (10,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 253.32 Td (Government loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 252.42 Td (499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.15 252.42 Td (487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 252.42 Td (475) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 252.42 Td (234) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 252.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 252.42 Td (1,695) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 238.32 Td (Convertible debt and accrued interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.15 237.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 237.42 Td (5,807) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.60 237.42 Td (13,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 237.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 237.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 237.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.25 237.42 Td (19,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 223.32 Td (V) Tj ET Q q 0 0 0 rg BT 77.17 223.32 Td (enture debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.65 222.42 Td (2,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 222.42 Td (6,158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 222.42 Td (6,158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.65 222.42 Td (2,396) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 222.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 222.42 Td () Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 528.50 222.62 Td (16,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 208.32 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 208.32 Td (rade payables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.65 207.42 Td (9,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 207.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 207.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 207.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 207.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 207.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 207.42 Td (9,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 193.32 Td (Other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.65 192.42 Td (4,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 192.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 192.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 192.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 192.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 192.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.25 192.42 Td (4,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.60 177.42 Td (27,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.50 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.60 177.42 Td (13,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.60 177.42 Td (22,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.65 177.42 Td (4,317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 177.42 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 177.42 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.25 177.42 Td (67,937) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 152.25 Td (s liquidity risk for the next ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.04 152.25 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.04 152.25 Td ( months is described in note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.47 152.25 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.97 152.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (Capital management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.25 Td (The primary objective of the Company) Tj ET Q q 0 0 0 rg BT 208.06 109.25 Td (s capital management is to continue to execute according to its business plans and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.25 Td (budgets in order to achieve profitability and positive cash flow) Tj ET Q q 0 0 0 rg BT 299.62 97.25 Td (, and to maximize shareholder value.) Tj ET Q endstream endobj 309 0 obj <> endobj 310 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (19.4. Changes in liabilities arising fr) Tj ET Q q 0 0 0 rg BT 202.94 722.25 Td (om financing activities) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 654.75 143.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 192.00 654.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 654.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 654.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 654.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.00 654.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 654.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 654.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 606.75 143.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 192.00 606.75 53.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 606.75 52.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 606.75 53.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 606.75 53.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.00 606.75 53.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 606.75 53.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 606.75 53.00 -24.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 192 582.75 m 245 582.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 245 582.75 m 297 582.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 582.75 m 350 582.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 582.75 m 403 582.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 582.75 m 456 582.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 582.75 m 509 582.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 582.75 m 562 582.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 659.42 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.45 669.42 Td (January 1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 659.42 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.10 659.42 Td (Cash flows) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.40 679.42 Td (Foreign) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.10 669.42 Td (exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.85 659.42 Td (movement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.80 669.42 Td (Non-cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.25 659.42 Td (interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 679.42 Td (Non-cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.95 669.42 Td (impact of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 659.42 Td (amendment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 659.42 Td (Other) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 489.57 663.95 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.45 669.42 Td (December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 659.42 Td (31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 644.42 Td (Government grant advances and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 634.42 Td (loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.50 634.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.65 634.42 Td (5,745) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.65 634.42 Td (2,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.15 634.42 Td (915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 634.42 Td (90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.15 634.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.30 634.47 Td (\(2,728) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 634.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.50 634.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 634.42 Td (6,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 620.32 Td (Convertible debt and accrued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 610.32 Td (interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.50 611.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.65 611.42 Td (16,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.15 611.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.15 611.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 611.42 Td (3,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.30 611.47 Td (\(3,097) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 611.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.80 611.47 Td (\(165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 611.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.50 611.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 611.42 Td (17,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 597.32 Td (Interest-bearing financing of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 587.32 Td (receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.50 587.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.65 587.42 Td (7,712) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.80 587.42 Td (\(299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.15 587.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.15 587.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 587.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.15 587.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 587.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.50 587.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 587.42 Td (7,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 572.42 Td (T) Tj ET Q q 0 0 0 rg BT 56.91 572.42 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.50 572.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.65 572.42 Td (29,795) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.65 572.42 Td (2,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.15 572.42 Td (915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 572.42 Td (4,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.30 572.47 Td (\(3,097) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 572.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.30 572.47 Td (\(2,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 572.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.50 572.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 572.42 Td (31,098) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 513.75 106.00 -30.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.00 513.75 54.00 -30.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 513.75 64.00 -30.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.00 513.75 64.00 -30.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 513.75 52.00 -30.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 513.75 54.00 -30.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 513.75 53.00 -30.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 513.75 66.00 -30.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 457.75 106.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.00 457.75 54.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 457.75 64.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.00 457.75 64.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 457.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 457.75 54.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 457.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 457.75 66.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 407.75 106.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.00 407.75 54.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 407.75 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.00 407.75 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 407.75 52.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 407.75 54.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 407.75 53.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 407.75 66.00 -21.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 156 407.75 m 210 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 407.75 m 274 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 407.75 m 338 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 407.75 m 390 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 407.75 m 444 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 407.75 m 497 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 407.75 m 563 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 156 407.75 m 210 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 407.75 m 274 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 407.75 m 338 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 407.75 m 390 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 407.75 m 444 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 407.75 m 497 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 407.75 m 563 407.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 518.42 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.95 528.42 Td (January 1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.50 518.42 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.10 518.42 Td (Cash flows) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.90 538.42 Td (Foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 528.42 Td (exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.35 518.42 Td (movement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.30 528.42 Td (Non-cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.75 518.42 Td (interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.30 538.42 Td (Non-cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.45 528.42 Td (impact of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 518.42 Td (amendment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.80 518.42 Td (Other) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 477.57 522.95 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.45 528.42 Td (December 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 518.42 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 498.42 Td (Government grant) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 488.42 Td (advances and loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.50 488.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.65 488.42 Td (6,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 488.42 Td (985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.80 488.47 Td (\(250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.15 488.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 488.42 Td (151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 488.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 488.47 Td (\(1,146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 488.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 488.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 488.42 Td (6,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 472.42 Td (Convertible debt and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 462.42 Td (accrued interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.50 462.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.65 462.42 Td (17,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 462.42 Td (3,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 462.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 462.42 Td (4,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.30 462.47 Td (\(3,630) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 462.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 462.47 Td (\(1,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 462.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 462.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 462.42 Td (19,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 437.42 Td (V) Tj ET Q q 0 0 0 rg BT 59.17 437.42 Td (enture debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.50 437.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.15 437.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 437.42 Td (13,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.80 437.47 Td (\(243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.15 437.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 437.42 Td (101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.80 437.47 Td (\(819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 437.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 437.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 437.42 Td (12,634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 422.42 Td (Interest-bearing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 412.42 Td (financing of receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.50 412.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.65 412.42 Td (7,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 412.42 Td (2,882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 412.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 412.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 412.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 412.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 412.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 412.42 Td (10,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 391.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 391.42 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.50 391.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.65 391.42 Td (31,098) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 391.42 Td (20,664) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.80 391.47 Td (\(493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.15 391.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 391.42 Td (4,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.30 391.47 Td (\(3,630) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 391.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 391.47 Td (\(3,312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 391.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 391.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 391.42 Td (49,014) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 371.45 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 61.75 371.45 Td (Amounts included in Other for 2018 mainly represent the amounts recorded in equity related to the issuance of debt with an equity ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 360.65 Td (component and the reduction of grants as the corresponding expense is incurred.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 344.85 Td (Amounts included in Other for 2017 mainly represent the reduction of grants as the corresponding expense is incurred.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 303.05 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 303.05 Td (. Commitments and contingencies) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 277.05 Td (Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.05 Td (From time to time, the Company has been and may become involved in legal proceedings arising in the ordinary course of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.05 Td (business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.05 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 224.05 Td (August 9, 2017, a putative securities class action captioned ) Tj ET Q q 0 0 0 rg BT 301.67 224.05 Td (Andrew Renner v) Tj ET Q q 0 0 0 rg BT 372.11 224.05 Td (. Sequans Communications S.A., Geor) Tj ET Q q 0 0 0 rg BT 526.36 224.05 Td (ges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.05 Td (Karam, and Deborah Choate \(Case 1:17-cv-04665\) was filed in the U.S. District Court for the Eastern District of New ) Tj ET Q q 0 0 0 rg BT 524.00 212.05 Td (Y) Tj ET Q q 0 0 0 rg BT 530.22 212.05 Td (ork. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.05 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 96.25 200.05 Td (f alleges violations of Sections 10\(b\) and 20\(a\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 395.05 200.05 Td (Act of 1934 based on purported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.05 Td (misrepresentations regarding Sequans) Tj ET Q q 0 0 0 rg BT 203.71 188.05 Td ( revenue recognition policy in the Company) Tj ET Q q 0 0 0 rg BT 382.56 188.05 Td (s Form 20-F annual reports filed on ) Tj ET Q q 0 0 0 rg BT 526.71 188.05 Td (April ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.05 Td (29, 2016 and March 31, 2017. ) Tj ET Q q 0 0 0 rg BT 174.86 176.05 Td (The complaint seeks unspecified damages and costs and fees. On ) Tj ET Q q 0 0 0 rg BT 439.78 176.05 Td (August 10, 2017, an almost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.05 Td (identical class action complaint captioned Kevin Shillito v) Tj ET Q q 0 0 0 rg BT 282.41 164.05 Td (. Sequans Communications S.A., Geor) Tj ET Q q 0 0 0 rg BT 436.66 164.05 Td (ges Karam, and Deborah ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.05 Td (Choate \(Case 2:17-cv-04707\) was filed in the same court. On September 28, 2017, the Shillito action was consolidated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.05 Td (Renner action. On October 10, 2017, candidates to be the lead plaintif) Tj ET Q q 0 0 0 rg BT 331.73 140.05 Td (f filed motions to appoint a lead plaintif) Tj ET Q q 0 0 0 rg BT 490.68 140.05 Td (f and lead ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.05 Td (counsel. On February 6, 2018, the) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.12156862745098039 0.28627450980392155 0.49019607843137253 rg BT 185.58 128.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 188.08 128.05 Td (Court appointed the lead plaintif) Tj ET Q q 0 0 0 rg BT 317.87 128.05 Td (fs and lead counsel.Lead plaintif) Tj ET Q q 0 0 0 rg BT 450.42 128.05 Td (fs filed their Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.05 Td (Amended Complaint \(the CAC\) on ) Tj ET Q q 0 0 0 rg BT 200.86 116.05 Td (April 9, 2018, which did not significantly alter the allegations made in the earlier ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.05 Td (pleadings. On May 24, 2018, the Company) Tj ET Q q 0 0 0 rg BT 221.33 104.05 Td (, Mr) Tj ET Q q 0 0 0 rg BT 238.00 104.05 Td (. Karam and Ms. Choate filed a pre-motion letter requesting permission to file a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.05 Td (motion to dismiss the CAC, a request that was granted on ) Tj ET Q q 0 0 0 rg BT 281.70 92.05 Td (August 21, 2018. ) Tj ET Q q 0 0 0 rg BT 352.91 92.05 Td (The motion to dismiss was fully briefed and filed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.05 Td (\(along with lead plaintif) Tj ET Q q 0 0 0 rg BT 145.68 80.05 Td (fs) Tj ET Q q 0 0 0 rg BT 155.49 80.05 Td ( opposition briefing\) on November 30, 2018.On December 12, 2018, at the parties) Tj ET Q q 0 0 0 rg BT 489.39 80.05 Td ( request, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.05 Td (Court stayed the action pending a scheduled mediation. ) Tj ET Q q 0 0 0 rg BT 275.93 68.05 Td (The mediation occurred on February 7, 2019, but did not result in a ) Tj ET Q endstream endobj 311 0 obj <> endobj 312 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (resolution of the case. On February 12, 2019, the Court lifted the stay) Tj ET Q q 0 0 0 rg BT 326.84 722.10 Td (, and the parties await the Court) Tj ET Q q 0 0 0 rg BT 457.08 722.10 Td (s decision on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (previously-filed motion to dismiss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (The Company has estimated the financial ef) Tj ET Q q 0 0 0 rg BT 225.37 686.10 Td (fect on the Company that will result from ultimate resolution of the proceedings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (has recorded a provision for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.18 674.10 Td ($352,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.68 674.10 Td ( as of December 31, 2018. Management is not aware of any other legal proceedings that, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (if concluded unfavorably) Tj ET Q q 0 0 0 rg BT 149.37 662.10 Td (, would have a significant impact on the Company's financial position, operations or cash flows. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 636.10 Td (Bank guarantee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 619.10 Td ( bank guarantee was issued in favor of the owners of new leased of) Tj ET Q q 0 0 0 rg BT 323.95 619.10 Td (fice space in France, in order to secure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.82 619.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.44 619.10 Td ( of lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.10 Td (payments, for an amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.25 607.10 Td ($336,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.75 607.10 Td ( as of December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.49 607.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.49 607.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.32 607.10 Td ($352,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.82 607.10 Td ( as of December 31, 2017\). ) Tj ET Q q 0 0 0 rg BT 456.72 607.10 Td (This guarantee was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (secured by the pledge of certificates of deposit and mutual funds for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.41 595.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.74 595.10 Td ( of the amount of the guarantee. ) Tj ET Q q 0 0 0 rg BT 477.51 595.10 Td (The total value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (investments secured to cover this bank guarantee was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.10 583.10 Td ($337,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.60 583.10 Td ( at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.40 583.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.40 583.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.23 583.10 Td ($353,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.73 583.10 Td ( at December 31, 2017\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (Pledge of assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (As security for the payment and repayment of the venture debt \(see Note 14.2 to these Consolidated Financial Statements\), the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (Company has granted to Harbert a first ranking pledge over the receivables the Company holds against its customers other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (customers covered by the factoring agreement. ) Tj ET Q q 0 0 0 rg BT 238.96 509.10 Td (The carrying amount was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.37 509.10 Td ($4.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.26 509.10 Td ( as of December 31, 2018. ) Tj ET Q q 0 0 0 rg BT 499.83 509.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (has also agreed to grant to Harbert a first ranking pledge over specified bank accounts', which had a carrying amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.02 497.10 Td ($1) Tj ET Q q 0 0 0 rg BT 539.65 497.10 Td (1.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 485.10 Td ( as of December 31, 2018 and a pledge over its IP) Tj ET Q q 0 0 0 rg BT 277.41 485.10 Td ( rights. Prior to an event of default, the amounts within the pledged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (accounts are not restricted; however) Tj ET Q q 0 0 0 rg BT 193.48 473.10 Td (, the pledge agreement stipulates certain covenants with which the Company must comply) Tj ET Q q 0 0 0 rg BT 553.57 473.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (Operating leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (The determination of whether an arrangement is a lease is based on the substance of the arrangement at the inception of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (lease. ) Tj ET Q q 0 0 0 rg BT 74.30 418.10 Td (The arrangement is a lease if fulfillment of the arrangement is dependent on the use of a specific asset and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (arrangement conveys a right to use the asset. ) Tj ET Q q 0 0 0 rg BT 230.65 406.10 Td (The Company has long-term operating leases for of) Tj ET Q q 0 0 0 rg BT 436.79 406.10 Td (fice and equipment rental. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (Future minimum undiscounted lease payments under long-term operating leases are as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 335.60 372.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 335.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 335.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 335.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 305.60 372.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 305.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 305.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 305.60 47.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 361.6 m 468 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 361.6 m 515 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 361.6 m 562 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 348.6 m 468 348.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 348.6 m 515 348.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 348.6 m 562 348.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 290.6 m 468 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 290.6 m 515 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 290.6 m 562 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 290.6 m 468 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 276.6 m 468 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 274.6 m 468 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 290.6 m 515 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 276.6 m 515 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 274.6 m 515 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 290.6 m 562 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 276.6 m 562 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 274.6 m 562 274.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 365.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.75 365.83 Td (December) Tj ET Q q 0 0 0 rg BT 502.32 365.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 352.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.00 352.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.00 352.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.00 352.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 339.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.65 339.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 326.17 Td (W) Tj ET Q q 0 0 0 rg BT 60.74 326.17 Td (ithin one year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.50 325.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 325.27 Td (1,864) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 325.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 325.27 Td (2,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 325.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 325.27 Td (1,541) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 311.17 Td (After one year but not more than five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 310.27 Td (3,165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 310.27 Td (1,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 310.27 Td (515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 296.17 Td (More than five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 295.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 295.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 295.27 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 281.17 Td (T) Tj ET Q q 0 0 0 rg BT 56.91 281.17 Td (otal minimum lease payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.50 280.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 280.27 Td (5,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 280.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 280.27 Td (3,797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 280.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 280.27 Td (2,058) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (The table above does not include amounts for expected renewal periods that have not been committed to as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (2018. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 222.10 Td (otal operating lease expense for the year ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.41 222.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.41 222.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.96 222.10 Td ($2,963,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.96 222.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.79 222.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.79 222.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.07 222.10 Td ($2,655,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.07 222.10 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.34 222.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.34 222.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.62 222.10 Td ($2,426,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.62 222.10 Td (\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (Purchase commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.94 179.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.53 179.10 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.57 179.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.46 179.10 Td ( of non-cancelable purchase commitments with its third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (manufacturer and suppliers for future deliveries of equipment and components, principally during the first half of 2019.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 141.10 Td (. Related party disclosur) Tj ET Q q 0 0 0 rg BT 163.76 141.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.10 Td (There is no single investor who has the ability to control the Board of Directors or the vote on shareholder resolutions. ) Tj ET Q q 0 0 0 rg BT 525.32 124.10 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (were two investors who each beneficially own ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.49 112.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.82 112.10 Td ( or more of the share capital of the Company: BPI France Participation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (Fonds Lar) Tj ET Q q 0 0 0 rg BT 90.15 100.10 Td (ge ) Tj ET Q q 0 0 0 rg BT 101.91 100.10 Td (V) Tj ET Q q 0 0 0 rg BT 108.02 100.10 Td (enture, a fund managed by Bpifrance, and Nokomis Capital, L.L.C. ) Tj ET Q q 0 0 0 rg BT 379.62 100.10 Td (At the annual shareholders meeting on June ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.10 Td (30, 2017, the shareholders approved the nomination of Mailys Ferrere to the board of directors. Mrs. Ferrere is employed by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.10 Td (BPI France Participation - Fonds Lar) Tj ET Q q 0 0 0 rg BT 197.35 76.10 Td (ge ) Tj ET Q q 0 0 0 rg BT 209.10 76.10 Td (V) Tj ET Q q 0 0 0 rg BT 215.22 76.10 Td (enture. Bpifrance provided funding to two consortiums which include the Company in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 64.10 Td (the context of long-term research projects \(See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.08 64.10 Td (15.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.58 64.10 Td ( Research project financing\) and in loans \(See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.12 64.10 Td (19.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.62 64.10 Td ( Government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 52.10 Td (loans\). In ) Tj ET Q q 0 0 0 rg BT 89.22 52.10 Td (April 2015, the Company completed the sale of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.61 52.10 Td ($12 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.00 52.10 Td ( convertible note, in ) Tj ET Q q 0 0 0 rg BT 416.93 52.10 Td (April 2016 the sale of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.57 52.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.46 52.10 Td ( ) Tj ET Q endstream endobj 313 0 obj <> endobj 314 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.10 Td (convertible note and in September 2018 the sale of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.21 722.10 Td ($4.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.10 722.10 Td ( convertible note, to an af) Tj ET Q q 0 0 0 rg BT 413.10 722.10 Td (filiate of Nokomis Capital, L.L.C., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (\(See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.71 710.10 Td (14.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.21 710.10 Td ( Convertible debt\). In 2017, the Company amended the terms of the notes issued in 2015 and 2016 and as part of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.10 Td (the agreement, ) Tj ET Q q 0 0 0 rg BT 110.68 698.10 Td (W) Tj ET Q q 0 0 0 rg BT 119.31 698.10 Td (esley Cummins, a representative of Nokomis Capital, L.L.C., became a board observer in November 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (and on June 29, 2018, the shareholders approved Mr Cummins' nomination to the board of directors. ) Tj ET Q q 0 0 0 rg BT 453.73 686.10 Td (As of December 31, 2018, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (the principal amount and accrued interest of the convertible notes held by an af) Tj ET Q q 0 0 0 rg BT 365.59 674.10 Td (filiate of Nokomis Capital, L.L.C amounts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td ($19.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 662.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.10 Td (On December 1) Tj ET Q q 0 0 0 rg BT 112.43 645.10 Td (1, 2014, the Board of Directors approved a consulting agreement with ) Tj ET Q q 0 0 0 rg BT 394.30 645.10 Td (Alok Sharma, member of the board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.10 Td (directors, for services in business development and strategy) Tj ET Q q 0 0 0 rg BT 287.12 633.10 Td (. ) Tj ET Q q 0 0 0 rg BT 291.94 633.10 Td (This agreement was renewed in 2016, and expired in July 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (During the year ended December 31, 2016, Mr Sharma earned fees totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.28 621.10 Td ($108,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.78 621.10 Td ( under this contract. No consulting fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.10 Td (were paid or accrued during the years ended December 31, 2017 and 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (No other transactions have been entered into with these or any other related parties in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.54 592.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.54 592.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.54 592.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.54 592.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.98 592.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.98 592.10 Td (, other than normal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.10 Td (compensation \(including share based payment arrangements\) for and reimbursement of expenses incurred in their roles as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.10 Td (Directors or employees of the Company) Tj ET Q q 0 0 0 rg BT 209.08 568.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (Compensation of key management personnel) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 492.60 402.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 492.60 37.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 492.60 37.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.00 492.60 37.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 462.60 402.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 462.60 37.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 462.60 37.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.00 462.60 37.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 518.6 m 489 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 518.6 m 526 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526 518.6 m 563 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 505.6 m 489 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 505.6 m 526 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526 505.6 m 563 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 447.6 m 489 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 447.6 m 526 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526 447.6 m 563 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 433.6 m 489 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 431.6 m 489 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 433.6 m 526 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 431.6 m 526 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526 433.6 m 563 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526 431.6 m 563 431.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 522.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 522.83 Td (Y) Tj ET Q q 0 0 0 rg BT 468.93 522.83 Td (ear) Tj ET Q q 0 0 0 rg BT 479.52 522.83 Td ( ended December) Tj ET Q q 0 0 0 rg BT 538.47 522.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 509.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.00 509.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.00 509.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.00 509.83 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 496.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.65 496.83 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 483.17 Td (Fixed and variable wages, social char) Tj ET Q q 0 0 0 rg BT 202.35 483.17 Td (ges and benefits expensed in the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 482.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.60 482.27 Td (1,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.50 482.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.60 482.27 Td (2,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.50 482.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.60 482.27 Td (2,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 468.17 Td (Share-based payment expense for the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 467.27 Td (490) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.60 467.27 Td (1,043) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.60 467.27 Td (1,397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 453.17 Td (Board members fees to non-executive members) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 452.27 Td (188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 452.27 Td (190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 452.27 Td (199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 438.17 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 438.17 Td (otal compensation expense for key management personnel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.50 437.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.60 437.27 Td (2,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.50 437.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.60 437.27 Td (3,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.50 437.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.60 437.27 Td (3,944) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.10 Td (Key management personnel comprises the chief executive of) Tj ET Q q 0 0 0 rg BT 292.83 412.10 Td (ficer and all executive vice presidents reporting directly to him.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 Td (The employment agreement with the chief executive of) Tj ET Q q 0 0 0 rg BT 270.62 391.10 Td (ficer calls for the payment of a termination indemnity of an amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (equal to one year of his gross annual base remuneration and bonus in the event of his dismissal by the Board of Directors of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.10 Td (Company) Tj ET Q q 0 0 0 rg BT 87.74 367.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.69 350.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.28 350.10 Td (, we estimate that approximately $16,000 of the amounts set aside or accrued to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (pension, retirement or similar benefits to our employees was attributable to our executive of) Tj ET Q q 0 0 0 rg BT 416.99 338.10 Td (ficers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (In 2016, the Company had in place a consulting agreement with anon-executive board member as described above.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (Directors) Tj ET Q q 0 0 0 rg BT 90.42 291.10 Td ( interests in an employee share incentive plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (The Company granted warrants to certain members of the Board of Directors during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.81 274.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.39 274.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.39 274.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.39 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 262.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 262.10 Td (:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (- On June28, 2016, the shareholders authorized the Board of Directors to grant to Messrs. de Pesquidoux, Maitre, Pitteloud, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (Sharma and Slonimsky ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 229.10 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.27 229.10 Td ( warrants each and to Mr Nottenbur) Tj ET Q q 0 0 0 rg BT 314.82 229.10 Td (g ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.32 229.10 Td (40,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.82 229.10 Td ( warrants. On June29, 2016, the Board used this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (authorization to make such grants with an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.75 217.10 Td ($1.86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.25 217.10 Td ( per ordinary share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (- On June 30, 2017, the shareholders authorized the Board of Directors to grant to Messrs. de Pesquidoux, Maitre, Nottenbur) Tj ET Q q 0 0 0 rg BT 548.10 196.10 Td (g, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (Pitteloud, Sharma and Slonimsky ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.89 184.10 Td (30,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.39 184.10 Td ( warrants each. On July 3, 2017, the Board used this authorization to make such grants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.10 Td (with an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.29 172.10 Td ($3.31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.79 172.10 Td ( per ordinary share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (- On June 29, 2018, the shareholders authorized the Board of Directors to grant to Messrs. de Pesquidoux, Maitre, Nottenbur) Tj ET Q q 0 0 0 rg BT 548.10 151.10 Td (g, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (Pitteloud, Sharma, Slonimsky and Cummings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.78 139.10 Td (30,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.28 139.10 Td ( warrants each. On July 2, 2018, the Board used this authorization to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (such grants with an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.05 127.10 Td ($2.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.55 127.10 Td ( per ordinary share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (The board members were required to subscribe to the warrants at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.16 106.10 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.66 106.10 Td (per warrant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.10 Td (Share-based payment expense incurred in connection with these transactions amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.77 85.10 Td ($65,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.27 85.10 Td ( in the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 73.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.91 73.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.91 73.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 73.10 Td ($89,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.69 73.10 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.97 73.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.97 73.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.25 73.10 Td ($35,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.75 73.10 Td (\).) Tj ET Q endstream endobj 315 0 obj <> endobj 316 0 obj <> stream BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.95 763.30 Td (Sequans Communications S.A.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 187.60 752.50 Td (Notes to the Consolidated Financial Statements\(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.55 33.60 Td (F-52) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 722.25 Td (. Events after) Tj ET Q q 0 0 0 rg BT 116.25 722.25 Td ( the r) Tj ET Q q 0 0 0 rg BT 138.84 722.25 Td (eporting date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 701.25 Td (At its meeting of February 5, 2019, the Board of Directors granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.77 701.25 Td (12,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.27 701.25 Td ( restricted share awards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.25 Td (On February 18, 2019, a new strategic investor invested approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.09 680.25 Td ($8.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.98 680.25 Td ( in support of accelerating Sequans) Tj ET Q q 0 0 0 rg BT 527.81 680.25 Td ( existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.25 Td (5G product roadmap. Upon the closing of this transaction, the Company issued to the investor a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.09 668.25 Td (9,392,986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.09 668.25 Td ( warrants. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.25 Td (The warrants are exercisable upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.15 656.25 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.15 656.25 Td ( days) Tj ET Q q 0 0 0 rg BT 222.57 656.25 Td ( notice to Sequans at an exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.34 656.25 Td (0.02) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.84 656.25 Td ( per share/ADS into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.04 656.25 Td (9,392,986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.04 656.25 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.25 Td (ordinary shares/ADS. ) Tj ET Q q 0 0 0 rg BT 138.47 644.25 Td (The warrants expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.93 644.25 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.93 644.25 Td ( years from the issuance date. ) Tj ET Q q 0 0 0 rg BT 351.54 644.25 Td (The Company is currently assessing the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (impact of this transaction.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (At its meeting of ) Tj ET Q q 0 0 0 rg BT 118.94 611.25 Td (April 23, 2019, the Board of Directors granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.22 611.25 Td (151,450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.72 611.25 Td ( restricted share awards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (On ) Tj ET Q q 0 0 0 rg BT 63.67 594.25 Td (April 30, 2019, Nokomis Capital, L.L.C. issued a firm commitment to purchase a new convertible note for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.19 594.25 Td ($3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.58 594.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (converting at $1.21 per ) Tj ET Q q 0 0 0 rg BT 144.20 582.25 Td (ADS, on substantially similar terms as their convertible note issued in ) Tj ET Q q 0 0 0 rg BT 425.82 582.25 Td (April 2015 with a maturity in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.25 Td (April 2021. Dr) Tj ET Q q 0 0 0 rg BT 110.61 570.25 Td (. Geor) Tj ET Q q 0 0 0 rg BT 135.42 570.25 Td (ges Karam also issued a commitment to loan up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.82 570.25 Td ($700,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.32 570.25 Td (, if the Company needs additional liquidity) Tj ET Q q 0 0 0 rg BT 548.04 570.25 Td (.) Tj ET Q endstream endobj 317 0 obj <> /View <>>>>> endobj 318 0 obj <> /View <>>>>> endobj 319 0 obj <> endobj 320 0 obj <> stream xy\E7~n{{w'd'52 HaGPPA!"" b-&h,+TLy?:uk?uΩoH""?W~.Xv3&rm 2\jMgwm'CڴzlycǏ\ rBjx\DsV@{twocmC{Iwl11z:1m!t-\q3D.:yz'Wɨp[_F=>E"ǢӦ/|K&_~=!wn-az3¦h$7,ؑ2Oo_eSFLlk}Fg[F>|;