Anterix (ATEX) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01We may not be successful in commercializing our spectrum assets to our targeted utility and critical infrastructure customers in accordance with our business plans and expectations
2. 02We may not be successful in developing, marketing, selling and delivering new products and services to our targeted utility and critical infrastructure customers
3. 03If we are unable to attract new customers, our results of operations and our business will be adversely affected
4. 04Our sales and marketing initiatives, including our AnterixAcceleratorTM program, may not be successful
5. 05Our reputation and business may be harmed, and we may be subject to legal claims if there is loss, disclosure, or misappropriation of, or access to, our customers’ information
6. 06Our strategic review process may not result in our identification or completion of a strategic transaction, which could have an adverse effect on our stock price and our business
7. 07Macroeconomic and unfavorable market conditions, regulatory and policy changes, and ongoing geopolitical matters, may have an adverse impact on our business, financial results, stock price and results of operations as well as the business of our current and potential customers

Risks Related to Our Financial Condition

1. 08We may not be able to correctly estimate our operating expenses, future cash proceeds or future revenues, which could lead to cash shortfalls, and may prevent us from returning capital to our stockholders and require us to secure additional financing
2. 09We have a unique business model, and our business activities, strategic approaches and plans may not be successful
3. 10We have had net losses each year since our inception and may not achieve or maintain profitability in the future
4. 11Our net operating losses (“NOLs”) are subject to certain restrictions and limitations, which may reduce our ability to use such NOLs in offsetting our future taxable income
5. 12The value of our spectrum assets may fluctuate significantly based on supply and demand, as well as technical and regulatory changes

Risks Related to the Use of Our Spectrum

1. 13We may not be successful in the petition filed with the FCC to expand the 900 MHz Broadband Segment from 6 MHz to 10 MHz
2. 14The voluntary exchange process established by the FCC in the Report and Order may not allow us to clear or relocate incumbents in certain counties in a timely manner and on commercially reasonable terms, or at all
3. 15The members of the AAR may delay our ability to commercialize broadband licenses
4. 16Our customers’ initiatives with the federal and state agencies and commissions that regulate electric utilities may not be successful, which may impact our commercialization efforts
5. 17We may not be able to maintain any broadband licenses that we own and/or obtain from the FCC
6. 18We may not be able to maintain any narrowband licenses that we own and/or obtain from the FCC or other licensees
7. 19Government regulations or actions taken by governmental bodies could adversely affect our business prospects, liquidity and results of operations, including any changes by the FCC to the Report and Order or to the FCC rules and regulations governing the 900 MHz band

Risks Related to Our Organization and Structure

1. 20We may change our operations and business strategies without stockholder consent
2. 21Our future success depends on our ability to retain our executive officers and key personnel and to attract, retain and motivate qualified personnel

Risks Related to Our Common Stock

1. 22There is no assurance that a robust market in our common stock will develop or be sustained
2. 23Our common stock prices may be volatile, which could cause the value of our common stock to decline
3. 24Concentration of ownership will limit your ability to influence corporate matters
4. 25Future sales of our common stock, or preferred stock, or of other securities convertible into our common stock or preferred stock, could cause the market value of our common stock to decline and could result in dilution of your shares
5. 26We cannot guarantee that our share repurchase program will be utilized to the full value approved or that it will enhance long-term stockholder value. Repurchases we consummate could increase the volatility of the price of our common stock and could have a negative impact on our available cash balance
6. 27Future offerings of debt securities or preferred stock, which would rank senior to our common stock in the event of our bankruptcy or liquidation, may adversely affect the market price of our common stock
7. 28Certain anti-takeover defenses and applicable law may limit the ability of a third party to acquire control of us
8. 29Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us