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our inability to adapt our products and services to local business practices, customs and mobile user preferences;
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the costs of adapting our product and service offerings for foreign markets and compliance with applicable laws and
regulations;
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our inability to locate qualified local employees, partners and suppliers;
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reduced protection of intellectual property rights;
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changes in regulatory requirements which could restrict our ability to deliver services to our international customers,
including the addition of a country to the list of sanctioned countries under the International Emergency Economic Powers
Act or similar legislation;
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general geopolitical risks, such as political and economic instability and changes in diplomatic and trade relations; and
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unpredictable fluctuations in currency exchange rates.
Any of the foregoing risks could have a material adverse effect on our business, financial position, results of operations or cash
flows by diverting time and money toward addressing them or by reducing or eliminating sales in such foreign countries.
Because some of our competitors have significantly greater resources than we do, we could lose customers and market share.
Our business is highly competitive. Several of our potential competitors are substantially larger than we are and have greater
financial, technical and marketing resources than we do. In particular, larger competitors have certain advantages over us which could
cause us to lose customers and impede our ability to attract new customers, including: larger bases of financial, technical, marketing,
personnel and other resources; more established relationships with wireless carriers and government customers; more funds to deploy
products and services; and the ability to lower prices (or not charge any price) of competitive products and services because they are
selling larger volumes.
While we characterize some of our services revenue as being “recurring” there is no guarantee that we will actually achieve
this revenue
.
A significant portion of our revenue is generated from long-term customer contracts for month-to-month fees. While we
currently believe that these revenue streams will continue, renegotiation of the contract terms, early termination or non-renewal of
material contracts could cause our recurring revenues to be lower than expected, and growth depends on maintaining relationships
with these important customers and on developing other customers and distribution channels.
We are exposed to counterparty credit risk and there can be no assurance that we will manage or mitigate this risk
effectively.
We are exposed to many different industries, counterparties, and agreements, and regularly interact with counterparties in
various industries. The insolvency or other inability of a significant counterparty or partner, including a counterparty to a significant
counterparty, to perform its obligations under an agreement or transaction, including without limitation, as a result of the rejection of
an agreement or transaction by a counterparty in bankruptcy proceedings, could have a material adverse effect on our business
financial position, results of operations or cash flows. Examples of our counterparty risks include counterparties to our credit
agreement, large customers and suppliers, and partners on major procurements.
The loss of key personnel or inability to attract and retain personnel could harm our business.
Our future success will depend in large part on our ability to hire and retain a sufficient number of qualified personnel,
particularly in sales and marketing and research and development. If we are unable to do so, our business could be harmed. Our future
success also depends upon the continued service of our executive officers and other key sales, engineering and technical staff. The loss
of the services of our executive officers and other key personnel could harm our operations. We maintain key person life insurance on
certain of our executive officers. We would be harmed if one or more of our officers or key employees decided to join a competitor or
if we failed to attract qualified personnel. Our ability to attract qualified personnel may be adversely affected by a decline in the price
of our Class A common stock. In the event of a decline in the price of our Class A common stock, the retention value of stock options
will decline and our employees may choose not to remain with us, which could have a material adverse effect on our business,
financial position, results of operations or cash flows.
Our accounting policies and methods for reporting of our financial position and results of operations require management to
make estimates, judgments and assumptions about matters that are inherently uncertain.
Our accounting policies and methods are fundamental to how we record and report our financial position and results of
operations. We have identified several accounting policies as being critical to the presentation of our financial position and results of
