Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Significant and continuing losses and significant operating expenses incurred in the past few years may cause us to be unable to pursue all of our operational objectives if sufficient financing and/or additional cash from revenues is not realized. This raises doubt as to our ability to continue as a going concern.
• The current economic climate, especially in Europe, may have an adverse effect in the markets in which we operate.
• Uncertainties and risks associated with international markets could adversely impact our international operations.
• We operate in a complex regulatory environment, and failure to comply with applicable laws and regulations could adversely affect our business.
• We may not be able to integrate new technologies and provide new services in a cost-efficient manner.
• We may not be able to develop and successfully market our Software DNA® 2.0 platform and security services as planned.
• We are exposed to business risks associated with turnkey projects and the scalability of our service and support organization.
• The current market perception about safeguarding privacy remains challenging.
• Implementation and development of our Software DNA® 2.0 platform and mobile security businesses both depend on our ability to obtain adequate funding.
• Disruptions in our networks and infrastructure may result in customer dissatisfaction, customer loss or both, which could materially and adversely affect our reputation and business.
• Integration of acquisitions ultimately may not provide the benefits originally anticipated by management and may distract the attention of our personnel from the operation of our business.
• Our revenue, earnings and profitability are affected by the length of our sales cycle, and a longer sales cycle could adversely affect our results of operations and financial condition.
• Because most of our business is conducted outside the US, fluctuations in foreign currency exchange rates versus the US Dollar could adversely affect our (reported) results of operations.
• We are substantially smaller than our major competitors, whose marketing and pricing decisions, and relative size advantage, could adversely affect our ability to attract and retain customers and are likely to continue to cause significant pricing pressures that could adversely affect our net revenues, results of operations and financial condition.
• We could suffer adverse tax and other financial consequences if US or foreign taxing authorities do not agree with our interpretation of applicable tax laws.
• We must attract and retain skilled personnel.
• Volatility in the stock market and other factors could diminish our use, and the value, of our equity awards as incentives to employees, putting us at a competitive disadvantage or forcing us to use more cash compensation.
• If we are not able to use and protect our intellectual property domestically and internationally, it could have a material adverse effect on our business.
• We are dependent on two significant customers for our businesses and the loss of one of these customers could have an adverse effect on our business, results of operations and financial condition.
• Product defects or software errors could adversely affect our business.
• Changes in the regulation of the telecommunications industry could adversely affect our business, revenue or cash flow.
• The market for communications information systems as well as security and fraud prevention services is highly competitive and fragmented, and we expect competition to continue to increase.
• The telecommunications industry is rapidly changing, and if we are not able to adjust our strategy and resources effectively in the future to meet changing market conditions, we may not be able to compete effectively.
• If we are not able to operate a cost-effective network, we may not be able to grow our business successfully.
• We could issue additional Common Stock, which might dilute the book value of our capital stock.
• Our board of directors has the power to designate a series of Preferred Stock without shareholder approval that could contain conversion or voting rights that adversely affect the holders of our Common Stock.
• If we issue additional shares of Common Stock in connection with subsequent financings, this could have a dilutive effect on your voting rights.
• As a “thinly-traded” stock, large sales can place downward pressure on our stock price.
• Shares eligible for future sale may adversely affect the market for our Common Stock.
• Because our executive officers, directors, their affiliates and certain principal stockholders own a large percentage of our voting stock, other stockholders’ voting power may be limited.

Mitigation Strategies

• The Company has identified material weaknesses in internal control over financial reporting and is working to remediate them.
• The Company has improved its cash generating activities in 2014 compared with the year before, but still showed a net cash used in operating activities of $2.1 million.
• The Company is in discussions with Atalaya Administrative LLC to discuss the AT&T/Iusacell settlement compensation, including payment of the receivables.
• The Company has also initiated a reorganization plan in order to ensure that sufficient funds will be available for the Company to continue to carry out its business plans.
• The Company is working to broaden its solutions offerings and increase the volume of voice and data that it carries over its existing global network.
• The Company may pursue additional acquisitions in the future to further strengthen its strategic objectives.
• The Company is working to remediate material weaknesses in internal control over financial reporting.

Supply Chain Management

Climate-Related Risks & Opportunities