KVH Industries (KVHI) risk factors, FY2024 10-K

Risks related to our financial performance

1. 01We have a history of losses, and achieving sustained profitability may take longer than we anticipate or may not be achievable
2. 02Our losses may increase if we are unable to effectively adapt to changes in our business and industry
3. 03Our quarterly net sales and results of operations could continue to vary significantly for various reasons, many of which are
4. 04A material increase in sales of third-party airtime services and products could reduce our gross margins and our profitability

Risks related to our operations

1. 05Our planned transition to reliance on third-party hardware products may be unsuccessful
2. 06Our future success will depend in part on the services of our executive officers and key employees
3. 07If we cannot effectively manage changes in our business and continue to attract and retain skilled personnel, our business may suffer
4. 08Future strategic activities could disrupt our business and affect our results of operations
5. 09We must generate a certain level of service sales in order to maintain or improve our service gross margins
6. 10Our ability to compete in the maritime airtime services market will be impaired if we are unable to provide sufficient service capacity to meet customer demand
7. 11Our results of operations are adversely affected by unseasonably cold weather, prolonged winter conditions, disasters or similar events
8. 12We are winding down our single manufacturing facility, and any significant disruption to this facility in the near term will impair our ability to deliver our products
9. 13Acquisitions and strategic relationships may disrupt our operations or adversely affect our results

Risks related to our industry

1. 14Increasingly intense competition may limit our ability to sell our products and services
2. 15We depend on sole or limited source suppliers, and any disruption in supply could impair our ability to deliver our products on time or at expected cost
3. 16Changes in the competitive environment, customer demand, supply chain issues, and the transition to new products may require inventory write-downs and/or the disposal of AgilePlans revenue-generating fixed assets

Risks related to our dependence on third parties and third-party technology

1. 17Our mobile satellite communications solutions currently depend on third-party satellite services, gateway teleports and terrestrial networks provided by third parties, and a disruption in those services could adversely affect sales
2. 18We depend on cloud-based data services operated by third parties, and any disruption in the operation of these services could harm our business
3. 19Our media and entertainment business relies on licensing arrangements with content providers, and the loss of, or changes in, those arrangements could adversely affect our business
4. 20Cybersecurity breaches could disrupt our operations, expose us to liability, damage our reputation, and require us to incur significant costs or otherwise adversely affect our financial results

Risks related to economic conditions and trade relations

1. 21Our revenues, results of operations and financial condition may be adversely impacted by economic turmoil, war, political instability, declines in consumer and enterprise spending
2. 22Changes in U.S. trade policy, including changes to existing trade agreements and any resulting changes in international trade relations, may have a material adverse effect on us
3. 23Changes in foreign currency exchange rates may negatively affect our financial condition and results of operations

Risks related to intellectual property and technological innovation

1. 24Our research and development efforts may be unsuccessful. If we are unable to improve our existing solutions and develop new, innovative solutions, our sales and market share will likely continue to decline
2. 25Our business may suffer if we cannot protect our proprietary technology
3. 26Claims by others that we infringe their intellectual property rights could harm our business and financial condition

Risks related to government regulation

1. 27Our international operations complicate our business and require us to comply with multiple regulatory environments
2. 28We could incur additional legal compliance costs associated with our international operations and could become subject to legal penalties if we do not comply with certain regulations
3. 29We are subject to FCC rules and regulations, and any non-compliance could subject us to FCC enforcement actions, fines, loss of licenses and possibly restrictions on our ability to operate or offer certain of our services
4. 30Privacy concerns and domestic or foreign laws and regulations may reduce demand for our services, increase our costs and harm our business

Risks related to owning our common stock

1. 31The market price of our common stock may be volatile