As of September 30, 2024, the non-controlling Adtran Networks stockholders’ equity ownership percentage in Adtran Networks was approximately 33.0%.

The following table summarizes the redeemable non-controlling interest activity for the nine months ended September 30, 2024 and for the year ended December 31, 2023:


	Nine Months Ended			For the Year Ended
(In thousands)	September 30, 2024			December 31, 2023
Balance at beginning of period	$	442,152		$	—
Reclassification of non-controlling interests		—			443,757
Redemption of redeemable non-controlling interest		(20,376	)		(1,657	)
Net income attributable to redeemable non-controlling interests		7,417			10,092		(1)
Annual recurring compensation earned		(7,417	)		(10,092	)	(1)
Adtran Networks stock option exercises		—			52
Balance at end of period	$	421,776		$	442,152		(1)

(1) Following the third quarter of 2024, the Company identified errors primarily impacting the carrying values of the redeemable non-controlling interest, retained deficit, the net income attributable to the non-controlling interest and the net loss attributable to the Company and, as a consequence, of the loss per common share attributable to the Company. We have revised our previously issued Condensed Consolidated Financial Statements for the periods ended March 31, 2023, June 30, 2023, September 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024. See Note 1 for additional information.

Annual recurring compensation payable on untendered outstanding shares under the DPLTA must be recognized as it is accrued. For the three and nine months ended September 30, 2024, we have accrued $2.4 million and $7.4 million, respectively, representing the portion of the annual recurring cash compensation to the non-controlling shareholders during such periods, which will be paid after the ordinary general shareholders' meeting of Adtran Networks in 2025. For the year ended December 31, 2023, we paid $10.1 million representing the portion of the annual recurring cash compensation to the non-controlling shareholders during such period. See Note 1 for additional information on RNCI and the annual dividend.