Sales and Revenue Expectations - The company expects sales to increase in 2022 from the lows of 2020, although not fully reaching 2019 levels due to the lingering effects of the COVID-19 pandemic [399]. Financial Management and Risk - The company has a credit risk management policy that limits exposure, with no individual customer representing more than 20% of the outstanding accounts receivable balance [399]. - The company has a liquidity risk management strategy that includes financial position analysis and monitoring procedures to ensure sufficient capital resources [401]. - The company has not entered into derivative financial instruments to manage interest rate risk exposure, and a hypothetical 10% change in interest rates would not have a material impact on financial statements [402]. - The majority of the company's revenues are in US Dollars, while about half of its costs are in Renminbi, exposing it to foreign currency risk [403]. Financing Activities - The company entered into an equity financing agreement with Chongqing Youtong for a 9.9% equity interest, raising $13.87 million, of which $10.40 million was received in cash [409]. - The company has issued convertible notes totaling $20 million and $3 million in February and April 2021, respectively, with an annual interest rate of 8% and a conversion price at a 10% discount from market price [414]. - A subsequent issuance of convertible notes on September 14, 2021, raised $27.15 million, with proceeds allocated for the development of next-generation 5G products and acquisition of 51% of HHE [415]. Investment Write-offs - The company ceased further investments in Crave and Colmei due to their insolvency caused by the COVID-19 pandemic, resulting in a write-off of previously issued shares [407]. - As of February 10, 2021, the company eliminated $19.14 million of defaulted debts with its senior lender through debt purchase and share issuance [413].
Borqs(BRQS) - 2021 Q4 - Annual Report