Gogo (GOGO) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01We may be unable to continue to generate revenue from the provision of our connectivity and other service offerings, which could materially and adversely affect our business and profitability
2. 02We are reliant on our key OEMs and dealers for equipment sales22% rewritten
3. 03We depend upon third party satellite networks providers, which are single-source providers, for our satellite services
4. 04We depend upon third parties, many of which are single-source providers, to manufacture equipment components, provide services for our network, and install and maintain our equipment
5. 05Competition could result in price reduction, reduced revenue and loss of market position and could harm our results of operations
6. 06Any failure to deliver and maintain high-quality customer support may adversely affect our relationships with our customers and prospective customers and could adversely affect our reputation, business, results of operations and financial condition
7. 07Our development contracts may be difficult for us to comply with and may expose us to third-party claims for damages, and we may experience losses from fixed-price contracts
8. 08Our participation in U.S. government contracts exposes us to significant commercial and other business risks
9. 09intense competition for available U.S. government business necessitating increases in time and investment for design and development
10. 10Our participation in non-U.S. government contracts exposes us to significant risks
11. 11Satellites have a finite useful life, and their actual operational life may be shorter than their mission life
12. 12Global supply chain challenges and logistics issues as well as increasing inflation have had, and may continue to have, an adverse effect on our business, financial condition and results of operations47% rewritten
13. 13We are exposed to a variety of risks associated with international operations that could adversely affect our business
14. 14restrictions on the ability of U.S. companies to do business in foreign countries; and
15. 15Our business is subject to foreign currency risk
16. 16As we expand geographically and otherwise, we may experience difficulties in maintaining our corporate culture, and our business, results of operations and financial condition could be adversely affected51% rewritten
17. 17We may fail to recruit, train and retain the highly skilled employees that are necessary to remain competitive and execute our growth strategy. The loss of one or more of our key personnel could harm our business35% rewritten
18. 18Pandemics or other outbreaks of contagious diseases and the measures implemented to combat them have had, and may continue to have, a material adverse effect on our business
19. 19limitations on our ability to market and grow our business and to promote technological innovation
20. 20Adverse economic conditions, including economic slowdowns, and geopolitical instability may have a material adverse effect on our business25% rewritten
21. 21We may not be able to fully utilize portions of our deferred tax assets, which would negatively impact our earnings and other comprehensive income
22. 22We may be adversely affected by global climate change and other sustainability-related mattersNew
23. 23We may be unsuccessful at evaluating or pursuing strategic opportunities, which could adversely affect our revenue, financial condition and results of operation36% rewritten

Risks Related to Our Technology and Intellectual Property

1. 24Our recently-deployed Gogo 5G and Gogo Galileo services may not compete well in the market or face problems relating to implementationNew
2. 25We or our technology suppliers may be unable to continue to innovate next-generation technologies and provide products and services that are useful to customers and passengers, or may be delayed in developing and deploying such technologies37% rewritten
3. 26Our business is dependent on the availability of spectrum
4. 27Additional ATG spectrum, whether licensed or unlicensed, is or may become available in the future
5. 28The availability of additional spectrum in the marketplace that is available for ATG use may increase the possibility that we may face competition from one or more other ATG service providers in the future54% rewritten
6. 29Assertions by third parties of infringement, misappropriation or other violations by us of their intellectual property rights could result in significant costs and materially adversely affect our business and results of operations29% rewritten
7. 30We may be unable to protect our intellectual property rights
8. 31The use of new and evolving technologies, such as AI, in our products and services may result in reputational harm, competitive harm or legal liability67% rewritten
9. 32Our use of open-source software could limit our ability to commercialize our technology
10. 33The failure of our equipment or material defects or errors in our software or services may damage our reputation, result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages, and impair our ability to sell our service

Risks Related to Litigation and Regulation

1. 34If we fail to comply with the Communications Act and FCC regulations limiting ownership and voting of our capital stock by non-U.S. persons, we could lose our FCC license39% rewritten
2. 35Regulation by United States and foreign government agencies, including the FCC, which issued our exclusive ATG spectrum licenses, and the FAA, which regulates the civil aviation manufacturing and repair industries in the United States, may increase our costs of providing service or require us to change our services
3. 36We are also subject to regulation by certain foreign laws and regulatory bodies, including Innovation, Science and Economic Development Canada, which issued our exclusive Canadian ATG subordinate spectrum license and regulates our use of the spectrum licensed to us30% rewritten
4. 37Our possession and use of personal information present risks and expenses that could harm our business. Unauthorized disclosure or manipulation of such data, whether through breach of our network security or otherwise, could expose us to costly litigation and damage our reputation46% rewritten
5. 38Participation in the FCC Supply Chain Reimbursement Program could adversely affect our results of operations and financial condition21% rewritten
6. 39Failure to comply with anti-bribery, anti-corruption and anti-money laundering laws could subject us to penalties and other adverse consequences
7. 40Our international sales and operations are subject to applicable laws relating to trade, sanctions, and export controls, the violation of which could have a material adverse impact on our business
8. 41Expenses, liabilities or business disruptions resulting from litigation could adversely affect our results of operations and financial condition72% rewritten

Risks Related to Our Indebtedness

1. 42For definitions of capitalized terms used and not defined in the following Risk Factors, see “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K
2. 43We and our subsidiaries have substantial debt and may incur substantial additional debt in the future, which could adversely affect our financial health, reduce our profitability, limit our ability to obtain financing in the future and pursue certain business opportunities and reduce the value of your investment
3. 44we may be more vulnerable to general adverse economic and industry conditions; and
4. 45We may have future capital needs and may not be able to obtain additional financing to fund our capital needs on acceptable terms, or at all30% rewritten
5. 46obtain additional financing, we may be required to use the proceeds from any such financing to repay a portion of our outstanding indebtednessNew
6. 47The agreements and instruments governing our debt contain restrictions and limitations that could adversely impact our ability to operate our business
7. 48enter into certain transactions with our affiliates
8. 49An increase in interest rates would increase the cost of servicing our indebtedness and could reduce our profitability
9. 50A downgrade, suspension or withdrawal of the rating assigned by a rating agency to us, our subsidiaries or our indebtedness, if any, could cause our cost of capital to increase

Risks Related to Our Common Stock

1. 51The price of our common stock may be volatile, and the value of your investment could decline24% rewritten
2. 52additions or departures of key personnel45% rewritten
3. 53The utilization of our tax losses could be substantially limited if we experienced an “ownership change” as defined in the Internal Revenue Code21% rewritten
4. 54Future stock issuances could cause substantial dilution and a decline in our stock price
5. 55Fulfilling our obligations associated with being a public company is expensive and time-consuming, and any delays or difficulties in satisfying these obligations may have a material adverse effect on our results of operations and our stock price
6. 56We have identified a material weakness in our internal control over financial reporting, which could, if not effectively remediated, result in material misstatements in our financial statements, and a failure to meet our reporting and financial obligations
7. 57Anti-takeover provisions in our charter documents and Delaware law, and certain provisions in our existing and any future credit facility could discourage, delay or prevent a change in control of our Company and may affect the trading price of our common stock
8. 58A requirement of supermajority stockholder voting to effect certain amendments to our amended and restated certificate of incorporation and amended and restated bylaws