XML 31 R21.htm IDEA: XBRL DOCUMENT v3.25.1
Related Party Transactions
 9 Months Ended
Mar. 28, 2025
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
NEC Corporation
On the Closing Date, the Company completed the NEC Transaction. See Note 11. Acquisitions for further information. A portion of the total consideration in the NEC Transaction included the issuance of 736,750 shares in Company common stock to NEC. The Company and NEC entered into a Registration Rights and Lock-Up Agreement, restricting NEC’s ability to transfer shares (the “Lock-Up”), except for certain limited exceptions as provided in the Registration Rights and Lock-Up Agreement, until one day after the one-year anniversary of the Closing Date (the “Initial Lock-Up Expiration Date”). Starting one day after the Initial Lock-Up Expiration Date, one-twelfth of the issued shares shall be released from the Lock-Up each month, such that all issued shares shall be released from Lock-Up by the two-year anniversary of the Closing Date. Pursuant to the Purchase Agreement, NEC has the right to nominate a director to the Company’s Board of Directors from the Closing Date and for a period of two years thereafter. As of March 28, 2025, NEC held approximately 5.8% of the Company’s outstanding common stock.
In connection with the closing of the NEC Transaction and as of the Closing Date, the Company and NEC entered into agreements covering the performance of certain post-closing services and licensing arrangements. The agreements include arrangements covering manufacturing services and product supply, transition services, distribution services, research and development services, and licensing of trademark and intellectual property (“IP”).
The Manufacturing and Supply Agreement includes arrangements for NEC to manufacture and supply Pasolink products on behalf of and to the Company and its customers. The transition services agreements include arrangements for the Company and NEC to provide and receive certain transition services, primarily associated with administrative functions. The distribution services agreements includes arrangements where NEC will provide distribution services on behalf of and to the
Company and its customers in certain international markets and territories. The Research and Development Cooperating Agreement for Existing Products includes arrangements for NEC to provide the Company certain services relating to development work to maintain existing products of the NEC business. The licensing agreements include arrangements where the Company will grant NEC a non-exclusive license to certain Pasolink trademarks in Japan, and NEC will grant the Company a non-exclusive, worldwide (excluding Japan) license to certain NEC IP, including mobile backhaul-related patents. The licensing agreements are royalty-free and perpetual.
A summary of the related party activity between the Company and NEC is as follows:
Three Months EndedNine Months Ended
(In thousands)March 28,
2025		March 29,
2024		March 28,
2025		March 29,
2024
Transition services received$1,131 $1,152 $3,026 $2,236 
Research and development services received— 3,220 5,401 4,303 
Purchase of inventories12,407 4,783 35,746 4,783 
As of March 28, 2025, the Company’s outstanding related party balances with NEC included in the unaudited condensed consolidated balance sheets are as follows:
(In thousands)
Accounts receivable, net$1,102 
Accounts payable38,511 
Other current liabilities13,213