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H.S. junior Avg
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New words:
administered, adverting, advice, airport, al, amidst, anytime, auction, automatic, automatically, awaiting, backstop, ban, benchmarking, bidder, bps, Bulletin, buy, Ca, caption, caution, Christian, clawed, confirm, consultation, consulted, consulting, copy, counsel, counter, cutting, debtor, decommissioned, deposit, DIP, disagreement, distraction, distressed, driver, earlier, Eleventh, employed, encourage, EPS, escalating, escrow, expressed, extinguished, fashion, floor, Footnote, forfeit, forma, found, gaming, hereof, highest, horse, incentivize, inconsistent, jointly, Joshua, kind, KPMG, LIBOR, LLP, mandating, Marcum, Mezger, Milestone, motivate, NaN, Newco, oral, OTC, pendency, petition, pink, precedent, preceding, predominately, President, priority, pro, procedure, prolonged, promptly, propose, proposed, proposing, pursuit, quantify, reached, reaching, rebound, recipient, refrain, reimbursement, resolved, royalty, RSA, sailing, satisfaction, shorter, showing, shut, signature, slower, stalking, stating, steer, Subtopic, suggestion, suitable, suspension, takeback, team, trustee, Twelfth, unprecedented, unvested, urge, vastly, vi, virtually, voluntary, withdrawn, workload
Removed:
CCC, consecutive, CSP, FCC, netting, OFAC, opportunity, Panel, pursuing, referred, regain, request, requirement, twelve
Financial report summary
?Risks
- Our substantial indebtedness and limited cash on hand may limit our ability to invest in the ongoing needs of our business and subject us to various reporting and financial covenants that we may be unable to comply with. The failure to remain in compliance with those covenants could cause our creditors to accelerate our debt obligations, which could adversely affect our business and financial condition and may cause us to seek bankruptcy protection.
- Our audited financial statements included a statement that there is a substantial doubt about our ability to continue as a going concern and a continuation of negative financial trends could result in our inability to continue as a going concern.
- The rapid spread of contagious illnesses could have a material adverse effect on our business and results of operations.
- Our business is dependent on the travel industry and the competitive nature of that industry; it makes our business sensitive to domestic and international economic conditions.
- Negative perceptions or publicity could damage our reputation among existing and potential customers, investors, employees, advisors and vendors. Additionally, our ability to attract, retain and serve our customers may be negatively impacted by service interruptions or delays, technology failures, damage to equipment or software defects or errors.
- Our business and reputation could be materially harmed as a result of cybersecurity attacks, data breaches, data theft, unauthorized access or hacking.
- The material weaknesses in our internal control over financial reporting have not been fully remediated. If we are unable to establish and maintain effective disclosure controls and internal control over financial reporting, our ability to produce accurate financial statements on a timely basis could be impaired, and the market price of our securities may be negatively affected.
- We have expended significant time and resources and expect to expend additional time and resources in connection with our efforts to remediate our material weaknesses in our internal control over financial reporting, which could divert management’s attention from our business, reduce our liquidity and have an adverse effect on our financial performance.
- We have undertaken restructuring activities in the past, are currently undertaking such activities and may determine to undertake additional restructuring activities in the future. These actions may not improve our financial position and may ultimately prove detrimental to our operations and sales.
- We operate internationally and our ability to expand in non-U.S. markets involves multiple risks that the company may not be able to mitigate.
- The long sales cycle of many of our Connectivity and Media & Content segment’s products increases the difficulty of our expense planning and revenue forecasting and may cause us to expend substantial resources without any assurance of an acceptable financial return.
- Our Company’s revenue is largely dependent upon our existing relationship and agreement with Southwest Airlines.
- We may be unable to retain or attract Media & Content customers if we do not develop new products or enhance those we currently provide.
- Businesses or technologies that we have acquired or invested in or that we may acquire or invest in could prove difficult to integrate, disrupt our ongoing business, dilute stockholder value or have an adverse effect on our results of operations.
- We continually assess the strategic fit of our existing businesses and may divest or otherwise dispose of businesses that are deemed not to fit with our strategic plan or are not achieving the desired return on investment, and we cannot be certain that our business, operating results and financial condition will not be materially and adversely affected.
- A future act or threat of terrorism, threats to national security and other actual or potential conflicts, wars, geopolitical disputes or other similar events could result in a prohibition on the use of Wi-Fi enabled devices on aircraft and maritime vessels.
- The occurrence of natural disasters, adverse weather conditions or other environmental incidents could adversely affect the Company’s consolidated financial condition or results of operations.
- Our insurance policies may not fully cover all losses we may incur.
- We may be unable to renew agreements with existing customers or attract new customers on favorable terms or at all.
- Our customers may be unable to pay us for our services.
- Failure to retain key members of senior management could harm our business.
- We may fail to recruit, train and retain the highly skilled personnel that are necessary to remain competitive and execute the growth strategy of our business.
- The structure of our investment in the WMS joint venture subjects us to risks that may limit our anticipated cash distributions from such investment or prevent us from receiving its anticipated benefits.
- We are subject to a variety of complex U.S. and foreign tax laws and regimes as a result of our global footprint, and changes in those laws-or our failure to properly interpret them-may adversely affect our business, financial condition, results of operations and cash flows.
- Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be severely limited.
- We cannot guarantee that we will continue to be able to make claims for investment tax credits in Canada.
- The United Kingdom’s withdrawal from the European Union may have a negative effect on global economic conditions, financial markets and our business and results of operations.
- We may not have the ability to repay the principal amount of our Second Lien Notes at their maturity, to make the cash interest payments on such notes when due or to raise the funds necessary to repurchase our Second Lien Notes upon a change of control.
- We may not have the ability to repay the principal amount of our convertible notes at maturity, to raise the funds necessary to settle conversions of our convertible notes or to repurchase our convertible notes upon a fundamental change or on specified repurchase dates, and the agreements governing our future indebtedness may contain limitations on our ability to repurchase our convertible notes.
- The conditional conversion feature of our convertible notes, if triggered, may adversely affect our financial condition and operating results.
- The accounting method for convertible debt securities that may be settled in cash could have a material adverse effect on our reported financial results.
- Exercise or conversion of our Searchlight warrants and/ or convertible notes, may dilute the ownership interest of our existing stockholders, including holders who had previously converted their notes, or may otherwise depress the price of our common stock.
- The success of our Connectivity segment depends on the investment in and development of new broadband technologies and advanced communications and secure networking systems, products and services and antenna technologies, as well as their market acceptance.
- We face increased demand for greater bandwidth, speed and performance from customers in an increasingly competitive environment featuring new technologies and market entrants, which may require us to maintain increased service levels at higher costs and make significant investments in improving our Connectivity platform.
- We may experience future customer attrition as satellite capacity providers enter into arrangements directly with customers.
- We rely on “sole source” service providers and other third parties for certain key components of, and services relating to, our Connectivity segment.
- We may need to materially increase our investments in product development and equipment in connection with our efforts to grow our Connectivity segment’s service lines and remain competitive in the future, which the Company could be unable to do if it is liquidity constrained.
- The failure of our equipment or material defects or errors in our software may damage our reputation or result in claims against us that exceed our insurance coverage, requiring us to pay significant damages and impairing our ability to offer our Connectivity services.
- Satellite failures or degradations in satellite performance could affect our business, financial condition and results of operations.
- The long sales cycle of many of our Connectivity segment’s products increases the difficulty of our expense planning and revenue forecasting and may cause us to expend substantial resources without any assurance of an acceptable financial return.
- We may experience losses from satellite capacity contracts that require us to make minimum payments, which we may not be able to satisfy.
- We face competition from the increasing on-board use of personal electronic devices and greater capabilities for passengers to access and download content to such devices prior to travel, which may, among other things, cause airlines to reduce investment in seatback entertainment systems in the future.
- Our Media & Content segment and the related media and content market faces pricing pressure from both customers and studios, which could have an adverse effect on our financial condition.
- There could be a reduction in the use of intermediary content service providers.
- Our revenue may be adversely affected by a reduction or elimination of the time between our receipt of content and the content being made more broadly publicly available to the rental or home viewing market (i.e., the “early release window”).
- Our music content licenses could result in operational complexity that may divert resources or make our business more expensive to conduct.
- We may experience losses from fixed-price Media & Content contracts if the market price for that service declines relative to our committed cost.
- We may not succeed in improving and streamline operating systems, including migrating to a single and effective Enterprise Resources Planning (“ERP”) system across all of our businesses to assist with remediating our material weaknesses in our internal controls.
- Our intellectual property rights are valuable, and any failure or inability to sufficiently protect them could harm our business and operating results.
- We rely on technology in our business and any cybersecurity incident, other technology disruption or delay in implementing new technology could negatively affect our business and our relationships with customers.
- We are subject to civil litigation involving allegations of copyright and patent infringement and related claims for indemnification, which could result in our having to pay damages. We may also be subject to additional similar litigation in the future.
- We may face changes in regulations and difficulties in obtaining regulatory approvals to provide our services or to operate our business in particular countries or territorial waters, which could have a material adverse impact on the competitive position, growth and financial performance of our Connectivity segment.
- Regulation by foreign government agencies may increase our costs of providing services or require us to change our services.
- Changes in government regulation of the Internet, including e-commerce or online video distribution, may cause us to change our Connectivity operations and incur greater operating costs in order to maintain compliance.
- We have been subject to civil stockholder litigation involving allegations that certain of our investor disclosures were false or misleading. We may be subject to additional similar litigation in the future.
- Our potential indemnification obligations and limitations of our director and officer liability insurance could result in significant legal expenses or damages and could have a material adverse effect on our reputation, business and results of operations
- If we fail to comply with Nasdaq’s requirements for continued listing, including the minimum closing bid price and market value of listed securities requirements, Nasdaq may determine to delist our common stock. A delisting would give rise to a repurchase obligation under the indenture for our convertible notes and could have an adverse impact on the trading volume, liquidity and market price of our common stock.
- The interests of our largest security holders may conflict with our interests and the interests of our other stockholders.
- The market price of our securities may be volatile and may decline as a result of a number of factors, some of which are beyond our control.
- Anti-takeover provisions contained in our certificate of incorporation and by-laws, as well as provisions of Delaware law, could impair a takeover attempt.
- We may issue additional equity or convertible debt securities in the future, which may result in additional dilution to investors.
- As a result of the material weaknesses in our internal control over financial reporting we may experience delays in filing our periodic SEC reports and resulting in being ineligible to use a registration statement on Form S-3 to register the offer and sale of securities, which could adversely affect our ability to raise future capital or complete acquisitions.
- We could incur additional losses due to further impairment in the carrying value of our goodwill.
Management Discussion
- Net cash used in investing activities of $20.3 million was due to purchases of property and equipment, including the purchase of expanded connectivity infrastructure to support our growth.
- Net cash used in investing activities of $43.5 million was primarily due to purchase of property, plant and equipment, which principally related to satellite transponders and expanding connectivity infrastructure to support growth.