UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: December 31, ~~2023~~ 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _____________

Commission File No. 000-55925

AERKOMM INC.

(Exact name of registrant as specified in its charter)

Nevada		46-3424568
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

44043 Fremont Blvd., Fremont, CA 94538

(Address of principal executive offices)

(877) 742-3094

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		N/A		N/A

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.001 par value per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of June 30, ~~2023~~2025 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of the shares of the registrant’s common stock held by non-affiliates (based upon the closing price of such shares as reported on the OTC Pink Market tier) was approximately $2350,~~524~~668,~~331~~230.    Shares of the registrant’s common stock held by each executive officer and director and by each person who owns 10% or more of the outstanding common stock have been excluded from the calculation in that such persons may be deemed to be affiliates of the registrant. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

There were a total of 1719,~~962~~638,~~613~~849 shares of the registrant’s common stock outstanding as of ~~May~~August 615, ~~2024~~2025.

DOCUMENTS INCORPORATED BY REFERENCE

None.

Aerkomm Inc.

Annual Report on Form 10-K

Year Ended December 31, ~~2023~~2024

TABLE OF CONTENTS

PART I
Item 1.	Business.	1
Item 1A.	Risk Factors.	3539
Item 1B.	Unresolved Staff Comments.	8385
Item 2.	Properties.	8385
Item 3.	Legal Proceedings.	8385
Item 4.	Mine Safety Disclosures.	8385
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	8486
Item 6.	[Reserved]	8486
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	8586
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk.	~~101~~110
Item 8.	Financial Statements and Supplementary Data.	~~101~~110
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	~~101~~110
Item 9A.	Controls and Procedures.	~~101~~110
Item 9B.	Other Information.	~~102~~112
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.	~~102~~112
PART III
Item 10.	Directors, Executive Officers and Corporate Governance.	~~103~~113
Item 11.	Executive Compensation.	~~109~~120
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	~~112~~122
Item 13.	Certain Relationships and Related Transactions, and Director Independence.	~~117~~127
Item 14.	Principal Accounting Fees and Services.	~~118~~128
PART IV
Item 15.	Exhibits, Financial Statement Schedules.	~~119~~129
Item 16.	Form 10-K Summary.	~~124~~135

Special Note Regarding Forward Looking Statements

In addition to historical information, this ~~report~~Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the following:

●

our future financial and operating results;

●

our intentions, expectations and beliefs regarding anticipated growth, market penetration and trends in our business;

●

the impact and effects of potential pandemics or contagious diseases or fear of such outbreaks, on the global airline and tourist industries, especially in the Asia Pacific region;

●

our ability to attract and retain customers;

●

our dependence on growth in our customers’ businesses;

●

the effects of changing customer needs in our market;

● the impact and effects of the global coronavirus (COVID-19) pandemic, and other potential pandemics or contagious diseases or fear of such outbreaks, on global supply chains as well as the global airline and tourist industries, especially in the Asia Pacific region;

● the impact and effects of the conflict between Russia and Ukraine;

● the impact and effects of the conflict between Israel and Hamas;

●

the effects of market conditions on our stock price and operating results;

●

our ability to successfully complete the development, testing and initial implementation of our product offerings;

●

our ability to maintain our competitive advantages against competitors in our industry;

●

our ability to timely and effectively adapt our existing technology and have our technology solutions gain market acceptance;

●

delays in the launch schedules of satellite network operators from whom we will acquire satellite network access services and our ability to acquire network access services from them;

●

our ability to introduce new product offerings and bring them to market in a timely manner;

● ~~Our~~our ability to ~~maintain~~obtain required telecommunications, ~~protect~~aviation and ~~enhance~~other ~~our~~licenses ~~intellectual~~and ~~property,~~approvals ~~including~~necessary ~~trade~~for ~~secrets;~~our operations

●

our ability to maintain, protect and enhance our intellectual property;

●

the effects of increased competition in our market and our ability to compete effectively;

● our expectations concerning ~~relationship~~relationships with customers and other third parties;

●

the attraction and retention of qualified employees and key personnel;

● future acquisitions of our investments in complementary companies or technologies; ~~and~~

●

the results of negotiations among the U.S. and other countries about tariffs and related matters; and

●

our ability to comply with evolving legal standards and regulations.

~~These forward~~Forward-looking statements, ~~are~~which ~~subject~~involve toassumptions and adescribe ~~number~~our offuture ~~risks~~plans, ~~uncertainties~~strategies, and ~~assumptions~~expectations, ~~including~~are ~~those~~generally ~~described~~identifiable inby use of the words “~~Item~~may,” “should,” ~~1A.~~“expect,” ~~Risk~~“anticipate,” ~~Factors~~“estimate,” ~~and~~“believe,” ~~elsewhere~~“intend,” inor ~~this~~“project” or ~~annual~~the ~~report.~~negative ~~Moreover,~~of wethese ~~operate~~words inor aother ~~very~~variations ~~competitive~~on ~~and~~these ~~rapidly~~words ~~changing~~or ~~environment, and~~comparable ~~new~~terminology. ~~risks~~Actual ~~emerge~~results, ~~from~~performance, ~~time~~liquidity, tofinancial condition, ~~time.~~prospects Itand isopportunities ~~not~~could ~~possible~~differ ~~for~~materially usfrom tothose ~~predict~~expressed ~~all risks~~in, ~~nor~~or ~~can~~implied weby, ~~assess~~these ~~the~~forward-looking ~~impact~~statements as a result of ~~all~~various ~~factors~~risks, ~~on our~~uncertainties ~~business~~and orother factors, including the ~~extent~~ability to ~~which~~raise ~~any~~sufficient ~~factor,~~capital orto ~~combination~~continue ofour ~~factors,~~operations. Actual ~~may~~events ~~cause~~or ~~actual~~ results tomay differ materially from those ~~contained~~ discussed in ~~any~~ forward-looking statements weas ~~may~~a ~~make.~~result ~~In light~~ of ~~these~~various ~~risks~~factors, ~~uncertainties~~including, without ~~and assumptions~~limitation, the ~~forward-looking~~risks ~~events~~outlined ~~and circumstances~~under ~~discussed~~“Risk Factors” included in ~~this~~our ~~annual~~Annual ~~report~~Report ~~may~~on ~~not~~Form ~~occur~~10-K for the year ended December 31, 2024, and ~~actual~~matters ~~results~~described ~~could~~in ~~differ~~this ~~materially~~Annual Report generally. In light of these risks and ~~adversely~~uncertainties, ~~from~~there ~~those~~can ~~anticipated or~~be ~~implied~~no inassurance that ~~our~~the forward-looking statements contained in this Annual Report will in fact occur.

~~You~~ Potential investors should not ~~rely~~place ~~upon~~undue ~~forward-looking statements as predictions of future events. Although we believe that the expectations reflected~~reliance inon ~~our~~any forward-looking statements. ~~are~~Except ~~reasonable,~~as weexpressly ~~cannot~~required ~~guarantee~~by ~~that~~ the ~~future~~federal ~~results,~~securities ~~levels of activity~~laws, ~~performance~~there oris ~~events and~~no ~~circumstances~~undertaking ~~described~~to inpublicly ~~the forward-looking statements will be achieved~~ update or ~~occur.~~revise ~~Moreover, neither we nor~~ any ~~other person assumes responsibility for the accuracy and completeness of the~~ forward-looking statements., Wewhether ~~undertake~~as noa ~~obligation~~result ~~to update publicly any forward-looking statements for any reason after the date~~ of ~~this~~new ~~report~~information, tofuture ~~conform~~events, ~~these~~changed ~~statements~~circumstances ~~to actual results~~ or toany ~~changes~~other ~~in our expectations, except as required by law~~reason.

~~You~~The specific discussions herein about our company ~~should~~include ~~read~~financial ~~this~~projections ~~annual~~and ~~report~~future estimates and ~~the~~expectations ~~documents~~about ~~that~~our webusiness. ~~reference~~The projections, estimates and expectations are presented in this ~~report~~Annual Report only as a guide about future possibilities and ~~have~~do ~~filed~~not ~~with~~represent actual amounts or assured events. All the ~~Securities~~projections and ~~Exchange~~estimates ~~Commission~~are based exclusively on our management’s own assessment of our business, or the ~~SEC,~~industry ~~with~~in which we work and the ~~understanding~~economy ~~that~~at ~~our~~large ~~actual~~and ~~future~~other ~~results~~operational factors, ~~levels~~including ofcapital ~~activity~~resources and liquidity, ~~performance~~financial ~~and~~condition, ~~events~~fulfillment of contracts and ~~circumstances~~opportunities. The actual results may ~~be materially~~differ ~~different~~significantly from ~~what~~the ~~we expect~~projections.

~~This report~~Potential ~~includes~~investors ~~market~~should ~~and~~not ~~industry~~make ~~data~~an ~~that~~investment decision ~~has~~based ~~been~~solely ~~obtained~~on ~~from~~our ~~third-party~~company’s ~~sources~~projections, ~~including~~estimates ~~industry~~or ~~publications,~~expectations. asYou ~~well~~should ~~as industry~~not ~~data~~rely ~~prepared~~upon byforward-looking ~~our~~statements as ~~management~~predictions ~~on the basis~~ of ~~its~~future ~~knowledge~~events. ofAlthough ~~and~~we ~~experience~~believe inthat the ~~industries~~expectations reflected in ~~which we operate (including~~ our ~~management’s~~forward-looking ~~estimates~~statements ~~and~~are ~~assumptions~~reasonable, we ~~relating~~cannot toguarantee ~~such industries based on~~ that ~~knowledge).~~the ~~Management’s~~future ~~knowledge~~results, levels of ~~such~~ ~~industries~~activity, ~~has~~performance ~~been~~or ~~developed~~events ~~through its experience~~ and ~~participation~~circumstances described in ~~these industries. While our management believes~~ the ~~third~~forward-~~party~~looking ~~sources~~statements ~~referred~~will tobe inachieved ~~this~~or ~~annual~~occur. ~~report are reliable~~Moreover, neither we nor ~~our~~any ~~management~~other ~~have~~person ~~independently~~assumes ~~verified~~responsibility ~~any~~for of the ~~data~~accuracy ~~from~~and completeness ~~such~~of ~~sources referred to in this report or ascertained~~ the ~~underlying~~forward-looking ~~economic~~statements. ~~assumptions~~We ~~relied~~undertake ~~upon~~no byobligation ~~such~~to ~~sources.~~update ~~Internally~~publicly ~~prepared and~~any ~~third~~forward-~~party~~looking ~~market~~statements ~~forecasts,~~for inany ~~particular,~~reason ~~are~~after ~~estimates~~the date ~~only and may be inaccurate, especially over long periods~~ of ~~time. Furthermore, references in~~ this ~~report~~Annual Report to ~~any~~conform ~~publications,~~these ~~reports,~~statements ~~surveys~~to oractual ~~articles~~results ~~prepared by third parties should not be construed as depicting the complete findings of the entire publication, report, survey~~ or ~~article.~~to ~~The~~changes ~~information~~ in ~~any~~our ~~such publication~~expectations, ~~report,~~except ~~survey~~as ~~or article~~required ~~is not incorporated~~ by ~~reference in this report~~law.

You should read this annual report and the documents that we reference in this Annual Report and have filed with the Securities and Exchange Commission, or the SEC, with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

iii

Summary of Risk Factors

Our annual report should be considered in light of the risks, uncertainties, expenses and difficulties frequently encountered by similar companies. Our ability to realize our business objectives and execute our strategies is subject to risks and uncertainties, including, among others, the following:

Risks Relating to Our Business

Risks and uncertainties related to our current and future business include, but are not limited to, the following:

●

Excluding non-recurring revenues in 2019 and 2021 from affiliates, we have incurred operating losses in every quarter since we launched our business and may continue to incur quarterly operating losses, which could negatively affect the value of our company;

~~iii~~● We may not be successful in our efforts to develop and monetize new products and services that are currently in development, including value-added resale of satellite bandwidth in certain geographies where we are already licensed or intend to be licensed, our multi-orbit universal satellite communications terminals that incorporate flat panel antennas (FPAs) or electronically steered arrays (ESAs) with both hardware and software defined modems, communications systems for manned and unmanned aerospace and defense platforms, system integration for manned and unmanned aerospace and defense platforms, our proprietary glass semiconductor antenna (also referred to as “FGSA”), distributed content delivery network (“CDN”), distributed computing or mesh computing applications and inflight entertainment and connectivity services;

● We may not be successful in our efforts to develop and monetize new products and services that are currently in development, including value-added resale of satellite bandwidth in certain geographies where we are already licensed or intend to be licensed, our multi-orbit universal satellite communications terminals that incorporate flat panel antennas (FPAs) or electronically steered arrays (ESAs) with both hardware and software defined modems, communications systems for manned and unmanned aerospace and defense platforms, system integration for manned and unmanned aerospace and defense platforms, our proprietary glass semiconductor antenna (also referred to as “FGSA”), distributed content delivery network (“CDN”), distributed computing or mesh computing applications and inflight entertainment and connectivity services; ● We may not be able to grow our business with our current satellite and satellite constellation partners or to successfully negotiate agreements with satellite and satellite constellation partners whose bandwidth and services we do not currently resell or otherwise distribute; ● We may not be able to grow our business with our current aerospace and defense partners or to successfully negotiate agreements with aerospace and defense partners to which we do not currently provide our technologies or services; ● We may not be able to grow our business with our current civilian telecommunications partners or successfully negotiate agreements with civilian telecommunications partners to which we do not currently provide our service; ● We may not be able to grow our business with our current commercial aviation partners or successfully negotiate agreements with commercial aviation partners to which we do not currently provide our service; ● We may experience network capacity constraints in both our current and our future operation regions as we expect capacity demands to increase, and we may in the future experience capacity constraints internationally. If we are unable to successfully implement planned or future technology enhancements to increase our network capacity, or our aerospace and defense partners or civilian telecommunication partners do not agree to such enhancements, our ability to acquire and maintain sufficient network capacity and our business could be materially and adversely affected; ● The demand for satellite bandwidth may decrease or develop more slowly than we expect. We cannot predict with certainty the development of the international satellite bandwidth market in general or the general market acceptance for our products and services; ● The price of satellite bandwidth may decrease or develop more slowly than we expect. ● An extended delay in the transfer of title to Aerkomm Taiwan of the Taiwan land parcel that we purchased could delay the building of our first satellite ground station and have a negative impact on our business prospects; ● If the transactions contemplated by several memorandums of understanding (MOU) do not proceed, our results of operations and financial condition could be materially adversely affected; ● We will source components and products, both hardware and software as well as content, from other companies, which we then assemble or integrate into our products and service offerings from other companies, and any disruptions in their supply chains or businesses or reductions in the quality or availability of the components or products produced by such partners could hurt our business by providing us with less quality or quantity components and products and resulting in potentially less attractive offerings for customers;

●

We may not be able to grow our business with our current aerospace and defense partners or to successfully negotiate agreements with aerospace and defense partners to which we do not currently provide our technologies or services;

●

We may not be able to grow our business with our current civilian telecommunications partners or successfully negotiate agreements with civilian telecommunications partners to which we do not currently provide our service;

●

We may not be able to grow our business with our current commercial aviation partners or successfully negotiate agreements with commercial aviation partners to which we do not currently provide our service;

●

We may experience network capacity constraints in both our current and our future operation regions as we expect capacity demands to increase, and we may in the future experience capacity constraints internationally. If we are unable to successfully implement planned or future technology enhancements to increase our network capacity, or our aerospace and defense partners or civilian telecommunication partners do not agree to such enhancements, our ability to acquire and maintain sufficient network capacity and our business could be materially and adversely affected;

●

The demand for satellite bandwidth may decrease or develop more slowly than we expect. We cannot predict with certainty the development of the international satellite bandwidth market in general or the general market acceptance for our products and services;

●

The price of satellite bandwidth may decrease or develop more slowly than we expect.

●

An extended delay in the transfer of title to Aerkomm Taiwan of the Taiwan land parcel that we purchased could delay the building of our first satellite ground station and have a negative impact on our business prospects;

●

If the transactions contemplated by several memorandums of understanding (MOU) do not proceed, our results of operations and financial condition could be materially adversely affected; and

●

We will source components and products, both hardware and software as well as content, from other companies, which we then assemble or integrate into our products and service offerings from other companies, and any disruptions in their supply chains or businesses or reductions in the quality or availability of the components or products produced by such partners could hurt our business by providing us with less quality or quantity components and products and resulting in potentially less attractive offerings for customers,

Risks Relating to Our Industries

Risks and uncertainties related to our industries include, but are not limited to, the following:

●

In the satellite industry, satellite service operators may face delays in deploying their satellites or constellations due to technological challenges or regulatory hurdles, or may otherwise have insufficient bandwidth, which could hinder the services we offer to our customers and damage customer relations;

●

In the aerospace and defense industry, government budget uncertainties, geopolitical conflicts, public perception, or ITAR issues could adversely affect industry stability and growth; and

●

In the semiconductor industry, supply chain concentration, geopolitical conflicts, single-source dependency, or natural disasters could present challenges for semiconductor manufacturers’ operations and resilience.

Risks Relating to Our Technology and Intellectual Property

Risks and uncertainties related to our technology and intellectual property include, but are not limited to, the following:

●

We rely on service providers for certain critical components of and services relating to our satellite connectivity network;

●

Our use of open-source software could limit our ability to commercialize our technology;

● The satellites that we currently or may in the future rely on have minimum design lives, but could fail or suffer reduced capacity before then; ~~● Satellites that are not yet in service may not be manufactured and successfully launched at rates adequate to meet demand; and~~

●

Satellites that are not yet in service may not be manufactured and successfully launched at rates adequate to meet demand; and

●

The development of our proprietary glass semiconductor antenna may require licenses to intellectual property rights from third parties, including standards-based patent pools for Wi-Fi, audio-visual compression, or data transmission technologies.

Risks Relating to Ownership of our Common Stock

Risks and uncertainties related to our common stocks include, but are not limited to, the following:

●

Our common stock is currently quoted on the OTC Pink Market, which may have an unfavorable impact on our stock price and liquidity;

●

Our common stock is quoted on the Professional Segment of the regulated market of Euronext Paris, which may have an unfavorable impact on our stock price and liquidity;

● We may be subject to penny stock regulations and restrictions and you may have difficulty selling shares of our common stock; ● Investors may experience immediate and substantial dilution; and ● Our articles of incorporation, bylaws and Nevada law have anti-takeover provisions that could discourage, delay or prevent a change in control, which may cause our stock price to decline.

●

Investors may experience immediate and substantial dilution; and

●

Our articles of incorporation, bylaws and Nevada law have anti-takeover provisions that could discourage, delay or prevent a change in control, which may cause our stock price to decline.

In addition, we face other risks and uncertainties that may materially affect our business prospects, financial condition, and results of operations. You should consider the risks discussed in Item 1A. “Risk Factors” and elsewhere in this annual report before investing in our common stocks.

Use of Terms

For the purposes of this Annual Report only, references in this report to “we,” “us,” “our,” or “our company” are to the combined business of Aerkomm Inc., a Nevada corporation, and its consolidated subsidiaries, including Aircom Pacific, Inc., a California corporation and wholly-owned subsidiary, or Aircom; Aircom Pacific Ltd., a Republic of Seychelles company and wholly-owned subsidiary of Aircom; Aerkomm Pacific Limited, a Malta company and wholly owned subsidiary of Aircom Pacific Ltd.; Aircom Pacific Inc. Limited, a Hong Kong company and wholly-owned subsidiary of Aircom; Aircom Japan, Inc., a Japanese company and wholly-owned subsidiary of Aircom; and Aircom Telecom LLC, a Taiwanese company and wholly-owned subsidiary of Aircom, Aircom Taiwan, or Aircom Beijing; MEPA Labs Inc., a California corporation and wholly-owned subsidiary; and Mesh Technology Limited, a Taiwan company and wholly-owned subsidiary.

Except as otherwise indicated by the context and for the purposes of this report only, references in this report to:

● “Aerkomm”, “we,” “us,” “our,” or “our company,” or “the Company”, ~~or “Aerkomm”~~ are to the combined business of Aerkomm Inc., a Nevada corporation, and its consolidated subsidiaries;

●

“Aircom” are to Aircom Pacific, Inc., a California corporation and wholly owned subsidiary of our company;

●

“Aerkomm HK” are to Aerkomm Hong Kong Limited, previously Aircom Pacific Inc. Limited, a Hong Kong company and wholly owned subsidiary of Aircom;

●

“Aerkomm Japan” are to Aerkomm Japan Inc., previously Aircom Japan, Inc., a Japanese company and wholly owned subsidiary of Aircom;

●

“Aerkomm Malta” are to Aerkomm Pacific Limited, a Malta company and wholly owned subsidiary of Aircom Seychelles;

●

“Aerkomm Taiwan” are to Aerkomm Taiwan Inc., a Taiwanese company and subsidiary of our company;

●

“Aerkomm SY” are to Aerkomm SY Ltd., previously Aircom Pacific Ltd., a Republic of Seychelles company and wholly owned subsidiary of Aerkomm;

●

“Aircom Taiwan” are to Aircom Telecom LLC, a Taiwanese company and wholly owned subsidiary of Aircom;

●

“Beijing Yatai” are to Beijing Yatai Communication Co., Ltd., a company organized under the laws of China and a wholly owned subsidiary of Aerkomm Taiwan;

●

“Exchange Act” refers to the Securities Exchange Act of 1934, as amended;

●

“IXAQ” means IX Acquisition Corp., a Cayman Islands corporation;

●

“MEPA” are to MEPA Labs Inc., a US company and wholly owned subsidiary of our company;

●

“Merger” means the business combination contemplated by the Merger Agreement whereby IXAQ will redomicile from being a Cayman Islands company to becoming a Delaware corporation, Merger Sub will merge with and into Aerkomm, with Aerkomm being the surviving company following the merger, each issued and outstanding share of Aerkomm common stock will automatically be converted into common stock of IXAQ at the conversion ratio, as defined in the Merger Agreement, and the outstanding convertible securities of Aerkomm will be assumed by IXAQ;

●

“Merger Agreement” means the business combination agreement entered into on March 29, 2024 between Aerkomm, IXAQ and Merger Sub, as amended;

●

“Merger Sub” means AKOM Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of IXAQ;

●

“Mesh Tech” are to Mesh Technology Taiwan Limited, a Taiwanese company and wholly owned subsidiary of Mixnet Technology Limited Seychelles;

●

“Mixnet” are to Mixnet Technology Limited, name changed to Mesh Technology Limited as of September 7, 2023, a Republic of Seychelles company and wholly owned subsidiary of Aerkomm Inc.;

● “SEC” refers to the U.S. Securities and Exchange Commission; and

● “Securities Act” refers to the Securities Act of 1933, as amended~~; and~~.

● “Exchange Act” refers to the Securities Exchange Act of 1934, as amended.

PART I

ITEM 1. BUSINESS.

Overview

~~We are~~The aCompany ~~development~~is ~~stage~~an innovative, development-stage satellite ~~communication~~communications ~~technology~~provider ~~company~~delivering ~~providing~~mission-critical, multi-orbit broadband connectivity through carrier-neutral and software-defined ~~infrastructure~~ toinfrastructure. ~~deliver~~Our ~~mission-critical,~~platform ~~multi-orbit~~is ~~satellite~~designed ~~broadband~~to ~~connectivity~~support ~~for~~both ~~the~~ public and private sector applications across defense, aerospace, and civilian telecommunications sectors.

~~We offer~~By aleveraging ~~range of~~ next-generation technologies, ~~that~~we operate ~~bring~~as a full-systems integrator—delivering high-throughput performance, seamless interoperability, and ~~virtualization~~advanced tonetwork ~~provide~~virtualization ~~high~~to ~~performance~~ensure ~~and~~ resilient, end-to-end ~~broadband~~ connectivity. toThrough ~~our~~strategic ~~customers~~partnerships ~~in collaboration~~ with satellite or constellation ~~partners and~~providers, mobile network operators, and hardware and software partners, we extend secure, scalable broadband services to the edge of global operations.

Our ~~business~~ ~~model~~integrated iscommunication ~~asset-light~~solutions ~~and~~are ~~far~~specifically tailored ~~less~~to ~~capital~~meet ~~intensive~~the ~~than~~distinct ~~most~~requirements ~~companies~~of ~~operating~~defense, inaerospace, ~~the~~and ~~space~~civilian ~~industry~~telecommunications asmarkets. weEngineered dofor ~~not~~agility ~~operate,~~and orreliability, ~~intend~~our tosolutions ~~operate,~~deliver ~~our~~exceptional ~~own~~performance ~~satellites~~in oreven ~~constellations~~the most challenging environments—empowering customers with flexible, future-ready connectivity.

Our ~~key~~ ~~proprietary cutting~~asset-~~edge~~light ~~technology~~business ismodel asets ~~universal~~us ~~terminal~~apart ~~that~~in the ~~we develop. It provides carrier~~capital-~~neutral~~intensive ~~satellite~~space ~~broadband access~~industry. ~~These~~ ~~terminals~~By ~~are~~not ~~designed~~owning toor ~~meet~~operating ~~the~~our ~~diverse~~own ~~needs~~satellites ofor ~~users across various sectors~~constellations, ~~and~~we ~~connecting~~maintain ~~those users to the right satellite~~flexibility, accelerate ~~independent~~deployment, ofand ~~which~~focus ~~orbit~~on itintegrating isvalue-added ~~located~~services ~~in,~~that ~~ensuring~~meet ~~seamless~~the ~~connectivity~~evolving ~~and~~needs ~~unparalleled~~of ~~performance~~our customers.

~~Our~~In addition to serving as a systems integrator, our core proprietary technology is the universal terminal, developed to provide carrier-neutral satellite broadband access. These terminals are ~~consist~~engineered ofto ~~both~~cater ato ~~multi-orbit~~the ~~flat~~diverse ~~panel~~needs ~~antenna~~of ~~(FPA)~~customers across various sectors, orensuring ~~electronically~~seamless ~~steered~~connectivity ~~array~~by ~~(ESA)~~dynamically connecting to the most suitable satellite, asregardless ~~well~~of asits aorbital ~~carrier-neutral~~position, ~~software-defined~~ ~~modem~~and delivering unparalleled performance.

~~Our groundbreaking~~The ~~glass~~universal ~~semiconductor~~terminal ~~ESA~~integrates ~~antenna~~a ~~technology enhances performance by more than 50% in terms of throughput per square inch,~~multi-orbit ~~compared~~flat-panel ~~to other~~ antenna ~~designs~~(FPA) ~~and~~or ~~constructions.~~electronically ~~The~~steered ~~advantages~~array ~~of our~~ (ESA) ~~technology~~with ~~mean~~a ~~that~~carrier-neutral, ~~our~~software-defined ~~universal~~modem, ~~terminals~~ensuring ~~can~~flexibility ~~be smaller~~ and adaptability ~~lighter~~in ~~while~~all ~~also~~operational ~~consuming less power and generating less waste heat than other satellite broadband terminals, while also delivering high throughput~~environments.

Our innovative glass semiconductor ESA antenna ~~work~~technology onenhances ~~custom~~throughput ~~beamformer~~by ~~chips,~~over or50% ~~application~~per ~~specific~~square ~~integrated~~inch ~~circuits~~compared ~~(ASICs)~~to traditional antenna designs, resulting in a smaller, lighter, and more onpower-efficient ~~custom~~terminal. ~~radiofrequency~~These ~~(RF)~~advantages ~~chipsets~~enable ~~aims to~~high-performance ~~optimize~~broadband connectivity while reducing power consumption and ~~performance,~~heat generation. ~~enabling~~Designed for seamless connectivity across ~~multiple~~LEO, ~~orbits~~MEO, and GEO satellite constellations, the terminals ensure resilient and continuous operation across all orbital layers.

~~Our modem~~We isare ~~designed~~also ~~with~~advancing acustom ~~software~~beamforming application-~~defined~~specific integrated ~~radio~~circuits (~~SDR~~ASICs) ~~to provide secure~~ and ~~agile~~radiofrequency ~~signal transmission with military-grade security features. Our work on a custom high-speed analog-to-digital~~ (~~ADC~~RF) ~~chipset~~chipsets ~~aims~~ to ~~unlock~~optimize ~~hybrid-orbit~~power ~~links~~ and toperformance, ~~enable~~ensuring ~~advanced~~seamless ~~signal~~connectivity ~~intelligence~~across ~~capabilities~~multiple orbital regimes.

~~In addition~~Our tosoftware-defined ~~designing~~radio ~~and~~(SDR) ~~developing~~modem ~~proprietary~~is ~~technologies~~built to ~~for~~provide ~~end-to-end~~secure, ~~solutions~~agile ~~based~~signal ~~around~~transmission ~~our~~with ~~universal~~military-grade ~~terminal~~encryption, weenhancing ~~also~~the ~~strategically source~~flexibility and ~~integrate~~security ~~partner~~of ~~technologies~~communication. We toare ~~create~~also ~~robust~~developing ~~and~~a ~~reliable~~custom ~~satellite~~high-speed ~~networks~~analog-to-digital ~~that~~converter ~~can~~(ADC) bechipset ~~tailored~~ to ~~meet~~enable ~~the~~hybrid-orbit ~~demands~~links ~~of public~~ and ~~private~~enhance ~~sector~~signal ~~clients~~intelligence capabilities.

ToAlongside the development of proprietary technologies ~~enable~~for ~~resiliency~~end-to-end ~~and~~solutions ~~scalability,~~based weon ~~are~~our ~~also~~universal atterminal, ~~the~~we ~~forefront~~strategically ofintegrate ~~implementing~~partner ~~virtualization~~technologies ~~for~~to ~~satellite~~create ~~communications~~robust ~~through~~and ~~our~~reliable ~~software-defined~~satellite ~~approach~~networks, ~~which~~tailored ~~enhances~~to ~~flexibility,~~meet ~~scalability,~~the ~~and~~specific ~~efficiency~~needs ~~and~~of ~~allows~~both ~~for~~public ~~dynamically~~and ~~adapting~~private tosector ~~evolving communication needs~~clients.

~~By orchestrating~~To adrive ~~comprehensive~~resiliency ~~system~~and ~~of technologies~~scalability, we ~~endeavor~~are toleading the ~~revolutionize~~way in implementing virtualization for satellite ~~communication~~communications ~~alongside~~through our ~~industry~~software-defined ~~partners~~approach. This enables greater flexibility, ~~delivering~~scalability, ~~unparalleled~~and ~~capabilities~~efficiency, allowing our systems to ~~empower~~dynamically ~~industries~~adapt ~~and~~to ~~individuals~~evolving ~~worldwide~~communication demands.

Our technologies, combined with our current and prospective regional satellite operators licenses, enable us to be a distribution partner for our current and potential satellite operator partners’ bandwidth. We aim to identify, unlock and expand new use-cases for satellite communications, providing value both to our customers, and to enable new revenue streams for both ourselves and for our satellite operator partners whose bandwidth we resell.1

1By integrating a comprehensive suite of technologies, we aim to revolutionize satellite communications in collaboration with our industry partners, delivering exceptional capabilities that empower industries and individuals around the globe.

~~Merger~~Since the onset of Russia-Ukraine war in 2022, ~~Agreement~~the importance of network resilience and uninterrupted connectivity has moved to the forefront of strategic defense planning. The nature of modern warfare has evolved rapidly, with ~~IXAQ~~increasing reliance on secure, agile, and real-time communications across multi-domain operations. As new global hotspots emerge, governments have significantly increased defense budgets and are actively seeking cutting-edge technological solutions to address the growing demands of future conflict scenarios.

~~On March~~In ~~29,~~response ~~2024,~~to weglobal ~~entered~~trends ~~into a business combination agreement (the “Merger Agreement”) with IX Acquisition Corp., a Cayman Islands corporation (“IXAQ”)~~ and ~~AKOM~~evolving ~~Merger Sub Inc.~~market demands, awe ~~Delaware~~have ~~corporation~~swiftly and astrategically ~~wholly~~reallocated ~~owned~~resources ~~subsidiary~~within ofthe ~~IXAQ~~company ~~(“Merger Sub”). Pursuant~~ to ~~the~~focus ~~terms~~on of the ~~Merger~~defense ~~Agreement~~market, wewhile ~~and~~actively ~~IXAQ~~seeking strategic ~~have~~partnerships ~~agreed~~through tomergers ~~effect~~and aacquisitions ~~business combination (the “Merger”), subject~~ to ~~satisfaction~~enhance ofour ~~conditions~~presence ~~set forth~~ in the ~~Merger~~growing ~~Agreement~~defense ~~described briefly below~~sector. ~~Additional~~In ~~information~~this ~~relating~~sector, towe ~~the~~concentrate ~~Merger along with the Merger Agreement can be found in our Current Report~~ on ~~Form~~delivering 8carrier-Kneutral, ~~filed~~software-defined ~~with~~infrastructure ~~the~~that ~~SEC~~guarantees onmission-critical ~~April~~connectivity 4,across ~~2024.~~multi-domain ~~The Merger Agreements contemplates that:~~environments.

●Our ~~Before~~core ~~the~~platform ~~closing~~integrates proprietary technologies, including software-defined modems, multi-orbit satellite terminals, and over-the-horizon ~~Merger~~(OTH) communications systems, ~~IXAQ~~all ~~will~~engineered to ~~redomicile~~perform ~~from~~in ~~being~~contested, infrastructure-limited, and degraded environments. This modular ecosystem supports a ~~Cayman~~diverse ~~Islands~~array of platforms, such as unmanned systems, ISR aircraft, commercial aviation, and telecom applications, delivering secure, high-throughput connectivity optimized for edge deployment. The strength of our company lies in our ability to ~~becoming~~offer ainnovative ~~Delaware~~technological ~~corporation~~solutions and exceptional system integration capabilities to meet the needs of our customers.

●In ~~Merger~~2024, ~~Sub~~we ~~will~~made ~~merge~~significant strides in business development, establishing new engagements with key players across the ecosystem and ~~into~~strengthening our position within the ~~Company~~defense market. These efforts have led to tangible progress, ~~with~~including the ~~Company~~achievement ~~being~~of ~~the~~critical ~~surviving~~milestones ~~company~~in ~~following~~select ~~the~~national ~~merger~~markets, further cementing our role as a trusted partner in delivering next-generation defense communications infrastructure.

●As ~~Each~~we ~~issued~~enter ~~and~~the ~~outstanding~~early ~~share~~stages of ~~the~~revenue ~~Company~~generation, we ~~common~~are ~~stock~~accelerating ~~will~~our ~~automatically~~expansion bein ~~converted~~the ~~into~~defense ~~common~~market ~~stock~~while ofmaintaining ~~IXAQ~~a atstrong focus on the ~~Conversion~~aerospace ~~Ratio~~and ~~(as~~commercial ~~defined~~sectors. inOur asset-light, ~~the~~highly ~~Merger~~scalable ~~Agreement);~~business ~~and~~model positions us to grow efficiently across all target domains.

●On ~~Outstanding~~April ~~Company~~27, ~~convertible~~2023, ~~securities~~we ofwere granted a regional satellite service spectrum usage permit, authorizing the ~~Company~~provision ~~will~~of bebroadband ~~assumed~~satellite byservices ~~IXAQ~~across mobile backhaul, enterprise, maritime, and aviation sectors. This regulatory milestone strengthens our strategic position in critical communications infrastructure, particularly within the Indo-Pacific region.

● In ~~connection~~addition, we secured a Distribution Partner Agreement (DPA) with ~~the~~Eutelsat ~~Merger~~OneWeb Group, ~~IXAQ~~enabling ~~will~~us beto ~~renamed~~leverage ~~“AKOM~~OneWeb’s Low-Earth Orbit (LEO) satellite services. Concluded in September 2024, the agreement grants AERKOMM Inc.”’s subsidiary, AERKOMM Japan, distribution rights for LEO connectivity services in Japan’s commercial fixed and land mobile sectors, as well as in Taiwan’s land mobile market. This partnership underscores our commitment to expanding our global footprint and delivering advanced satellite communication solutions across Asia. The DPA opens new commercial opportunities in these strategic markets, positioning us for future revenue growth and enhancing our credibility in the region.

~~Pursuant to~~As the terms of the Merger Agreement, each share of common stock of the Company issued and outstanding immediately before the closing of the Merger (other than any such shares that were held by dissenters to the Merger exercising appraisal rights, the “Merger Shares”) will be converted into shares of Class A Common Stock of IXAQ based on a ~~Closing~~satellite ~~Purchase~~telecommunications ~~Price~~provider ~~(as defined~~ in ~~the Merger Agreement)~~ ~~for~~Japan ~~the~~and ~~Company of $200~~Taiwan,~~000,000~~ ~~(as~~we ~~may~~operate beboth ~~adjusted~~as ~~under~~a ~~the~~systems ~~Merger~~integrator ~~Agreement prior to the closing of the Merger)~~ and a ~~price~~value-added ofservices ~~$11~~provider.~~50 per~~ ~~share~~This ofdual ~~Class~~capability Aexpands ~~Common~~our ~~Stock~~market reach ofand ~~IXAQ~~enhances ~~(thereby~~our ~~resulting~~ability into ~~the~~support ~~holders~~strategic ofcommunications ~~Merger~~and ~~Shares~~infrastructure ~~receiving~~initiatives ~~17,391,304~~across ~~shares of Class A Common Stock of IXAQ assuming no adjustment from~~ the ~~$200,000,000 Closing Purchase Price)~~Asia-Pacific. ~~Further,~~The ifservice design ~~certain~~and ~~milestones~~delivery ~~are~~experience ~~achieved~~gained in ~~the five~~these ~~years~~regions ~~following~~provides ~~the~~a ~~Merger,~~scalable ~~those~~model ~~who~~that ~~held~~we ~~Merger~~plan ~~Shares immediately before consummation of the Merger will be entitled~~ to ~~receive their~~extend ~~pro rata share of up~~ to ~~an aggregate of an~~ additional ~~17,391,304~~markets ~~shares of Class D Common Stock of IXAQ (as may be adjusted under~~through ~~the~~both ~~Merger~~existing ~~Agreement~~satellite ~~prior~~operator torelationships ~~the~~and ~~closing~~future of the Merger), representing an additional Incentive Purchase Price (as defined in the Merger Agreement) of $200,000,000 that is additional to the $200,000,000 Closing Purchase Price for the Company under the Merger Agreementpartnerships.

In addition to closing conditions that are usual and customary for a transaction like the Merger, the Merger Agreement closing conditions include that at least $45,000,000 of investor PIPE (private investment in public entity) financing commitments (inclusive of SAFE (simple agreement for future equity) financing obtained by the Company before the closing of the Merger) are obtained for the combined company resulting from the Merger, unless waived by IXAQ. As of date of this filing, PIPE agreements for aggregate commitments of $35,000,000, at a price of $11.50 per share, have been signed with Investors.2

~~As of the date of this Annual Report on Form 10-K, the Insiders of the Company (as defined in the~~ Merger Agreement) ~~have~~with ~~all signed Company Support Agreements in favor of the transaction.~~IXAQ

~~Our~~On March 29, 2024, we entered into a business ~~Strategic~~combination ~~Position~~agreement (the “Merger Agreement”) with IX Acquisition Corp., a Cayman Islands corporation (“IXAQ”) and AKOM Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of IXAQ (“Merger Sub”). Pursuant to the terms of the Merger Agreement, we and IXAQ have agreed to effect a business combination (the “Merger”), subject to satisfaction of conditions set forth in the Merger Agreement described briefly below. Additional information relating to the Merger along with the Merger Agreement can be found in our Current Report on Form 8-K filed with the SEC on April 4, 2024. The Merger Agreements contemplates that:

~~The Company~~● isBefore anthe ~~innovative~~closing ~~satellite~~the ~~technology company providing multi-orbit broadband connectivity solutions~~Merger, ~~based~~IXAQ ~~around~~will ~~our~~redomicile ~~universal terminal.~~from ~~Our~~being ~~carrier-neutral~~a ~~and~~Cayman ~~software-defined~~Islands ~~infrastructure~~company ~~enables end-~~to~~-end~~ ~~satellite~~becoming ~~broadband~~a ~~connectivity~~Delaware ~~across multiple orbits, such as low-earth orbit (LEO), medium-earth orbit (MEO), geostationary-earth orbit (GEO), and highly elliptical orbit (HEO)~~corporation. ~~We serve both public and private sectors, including Aerospace & Defense and Civilian Telecommunications.~~

~~We have~~● aMerger ~~range~~Sub ofwill ~~next-generation~~merge ~~satellite technologies that offer broadband connectivity by collaborating~~ with ~~satellite partners~~ and ~~mobile~~ ~~network~~into ~~operators to link users and platforms on~~ the ~~edge to core infrastructure hubs. The~~ Company, ~~has established a strong engagement~~ with ~~leading~~the ~~satellite~~Company ~~constellation operators spanning multiple orbits, including LEO, MEO, GEO and HEO. Additionally, our technology is currently~~ being ~~implemented in~~ the ~~Aerospace~~surviving &company ~~Defense~~following ~~market,~~the ~~having been tested in full-scale operational scenarios~~merger.

~~We are~~● ~~developing~~Each ~~partnerships~~issued ~~with both public~~ and ~~private~~outstanding ~~sector~~share ~~clients~~of ~~that~~the ~~have~~Company ~~increasing~~common ~~demands~~stock ~~for~~will ~~multi-beam~~automatically ~~and~~be ~~multi-orbit~~converted ~~satellite communications~~into ~~solutions.~~the ~~Our~~common ~~solutions~~stock ~~deliver~~of ~~high-throughput~~IXAQ ~~multi-orbit~~at ~~connectivity~~the inConversion aRatio ~~very~~(as ~~compact~~defined ~~package. We can leverage these advantages~~ in ~~minimizing~~the ~~size,~~Merger ~~weight~~Agreement); and ~~power without compromising performance to open up new use cases and applications for satellite communications.~~

~~We have~~● ~~considerable~~Outstanding ~~multi-national~~Company ~~technical~~convertible ~~expertise~~securities ~~with~~of ~~executives and innovators drawn from semi-conductors, aerospace, defense, dual-use technology, telecommunications and satellite communications sectors. In~~ the ~~defense~~Company ~~sector,~~will webe ~~have~~assumed ~~been~~by pioneering a first-of-its-kind satellite communications architecture for unmanned aerial vehicles (UAVs) engaged in intelligence, surveillance, and reconnaissance (ISR) missions with our development partner and customerIXAQ.

~~By late~~● ~~2023,~~In ~~our~~connection ~~technology~~with ~~was~~the ~~tested~~Merger, ~~and~~IXAQ ~~achieved positive results in operational environments. We anticipate starting to deliver on our first major contract in 2024. We~~ will ~~continue to invest in our talent, our technology and our partnerships and expect to~~ be inrenamed ~~a position~~“AKOM ~~to introduce higher volume and higher margin solutions by 2026~~Inc.”

2Pursuant to the terms of the Merger Agreement, each share of common stock of the Company issued and outstanding immediately before the closing of the Merger (other than any such shares that were held by dissenters to the Merger exercising appraisal rights, the “Merger Shares”) will be converted into shares of Class A Common Stock of IXAQ based on a Closing Purchase Price (as defined in the Merger Agreement) for the Company of $200,000,000 (as may be adjusted under the Merger Agreement prior to the closing of the Merger) and a price of $11.50 per share of Class A Common Stock of IXAQ (thereby resulting in the holders of Merger Shares receiving 17,391,304 shares of Class A Common Stock of IXAQ assuming no adjustment from the $200,000,000 Closing Purchase Price). Further, if certain milestones are achieved in the five years following the Merger, those who held Merger Shares immediately before consummation of the Merger will be entitled to receive their pro rata share of up to an aggregate of an additional 17,391,304 shares of Class D Common Stock of IXAQ (as may be adjusted under the Merger Agreement prior to the closing of the Merger), representing an additional Incentive Purchase Price (as defined in the Merger Agreement) of $200,000,000 that is additional to the $200,000,000 Closing Purchase Price for the Company under the Merger Agreement.

~~Overview~~In addition to closing conditions that are usual and customary for a transaction like the Merger, the Merger Agreement closing conditions include that at least $45,000,000 of ~~our~~investor PIPE ~~capabilities~~(private investment in public entity) financing commitments (inclusive of SAFE (simple agreement for future equity) financing obtained by the Company before the closing of the Merger) are obtained for the combined company resulting from the Merger, ~~competitive~~unless ~~edge~~waived by IXAQ. As of date of this filing, ~~markets~~PIPE ~~and~~agreements ~~opportunities~~ for aggregate commitments of $35,000,000, at a price of $11.50 per share, have been signed with Investors.

~~Our~~As of the date of this Annual Report on Form 10-K, ~~key~~the ~~standout~~Insiders ~~capabilities~~of ~~deliver~~the ~~differentiated~~Company ~~solutions:~~(as defined in the Merger Agreement) have all signed Company Support Agreements in favor of the transaction.

●Our ~~High~~Strategic ~~throughput~~Position

~~Our~~The Company uniquely positioned to lead the evolution ~~glass~~of ~~semiconductor~~satellite ~~antenna~~communications ~~transmits~~through a combination of innovative technology, strategic partnerships, and ~~receives~~a ~~50%~~flexible ~~Mbps~~business ~~more~~model. ~~throughput~~By leveraging ~~per~~next-generation, ~~square~~multi-~~inch~~orbit, ~~compared~~software-defined toinfrastructure, ~~previous~~we ~~state~~provide mission-ofcritical connectivity for both public and private sector applications, with a focus on defense, aerospace, and civilian telecommunications markets. Our core capabilities as a full-~~the~~systems integrator, combined with proprietary technologies—including universal terminals, advanced antenna systems, and software-~~art~~defined modems—set us apart in the highly competitive satellite ~~broadband~~ ~~terminals~~communications sector.

●Our ~~Interoperability~~asset-light business model is a key competitive advantage. By not owning or operating satellites, we maintain flexibility in responding to market demands and accelerating service deployment while focusing on integrating cutting-edge technologies and value-added services. This model allows us to offer high-performance solutions that are both scalable and adaptable, meeting the evolving needs of our customers across various industries.

Our universal terminals, including our multi-orbit glass semiconductor antennas and software-defined radio (SDR) modems, aim to provide carrier-neutral broadband connectivity. These terminals are designed to meet the diverse needs of users across various sectors, delivering high-quality connectivity and performance regardless of which satellite or which orbit they are using.3

●We ~~Virtualization~~have placed increased focus on the defense sector in 2024, as the demand for secure, resilient, and high-throughput communications grows rapidly. The geopolitical climate, particularly since the onset of the Russia-Ukraine conflict, has highlighted the critical need for agile satellite communications systems capable of supporting multi-domain operations. In response, we have strategically reallocated resources and sought key partnerships to strengthen our presence in the defense sector.

Our ~~software-defined~~ ~~core~~strategic ~~network~~partnerships, ~~waveforms~~such ~~integrate~~as ~~satellites~~the ~~and~~Distribution Partner ~~constellations~~Agreement ~~across~~(DPA) ~~all~~with ~~major~~Eutelsat ~~orbits~~OneWeb Group, asexemplify ~~well~~our ascommitment 5Gto ~~advanced~~expanding ~~and~~our ~~emerging~~global reach, particularly in the Indo-Pacific 6Gregion. ~~non~~This agreement provides AERKOMM Japan with distribution rights for OneWeb’s Low-~~terrestrial~~Earth ~~networks~~Orbit (~~NTN~~LEO). ~~This~~satellite ~~approach~~services ~~enhances~~in Japan ~~flexibility,~~and ~~scalability~~Taiwan, enabling us to tap into growing commercial and ~~efficiency,~~land ~~allowing~~mobile ~~for~~markets. ~~dynamic~~These ~~adaptation~~partnerships tosupport our strategy of expanding ~~evolving~~into ~~communication~~strategic ~~needs~~markets, with the goal of driving future revenue growth.

Additionally, we continue to enhance our competitive edge by advancing technologies such as custom ASICs and SDR modems that optimize performance and security. Our comprehensive suite of ~~competitive~~solutions, ~~edges~~designed ~~are:~~for seamless connectivity across LEO, MEO, and GEO constellations, positions us as a leading provider of end-to-end satellite communications infrastructure.

●Looking ~~Our~~ahead, ~~universal~~we ~~terminals,~~aim ~~equipped~~to ~~with~~extend our ~~glass~~service ~~semiconductor~~offerings into ~~antennas,~~new ~~can~~markets ~~provide~~through ~~50%~~both ~~higher~~existing ~~throughput~~relationships ~~than~~and ~~comparably~~future ~~sized~~satellite ~~devices~~constellation partnerships, ~~which~~leveraging ~~gives us an advantage in~~ the ~~size,~~experience ~~weight~~ and ~~power~~scalability gained offrom our ~~terminals.~~operations ~~We are pioneering a breakthrough~~ in ~~the~~Japan ~~application~~and ofTaiwan. ~~satellite~~This ~~communication~~strategic ~~technology~~positioning, backed by ~~installing~~ our ~~universal~~strong ~~terminals~~technological onfoundation ~~unmanned~~and ~~aerial,~~adaptable business ~~maritime~~model, ~~and~~ensures ~~land~~that ~~vehicles~~we ~~for~~are ~~a range of our customers. Unlike traditional C~~well-~~band~~prepared ~~communications, our small form factor antenna and terminal aims~~ to ~~deliver~~capitalize ~~new~~on ~~capabilities~~emerging ~~and~~opportunities ~~performance~~in ~~for~~the ~~unmanned~~global ~~operations~~satellite ~~with~~communications ~~compelling size, weight and power~~landscape.

●Overview ~~Our multi-orbit capability can leverage hybrid-orbit connectivity to combine potentially underutilized capacity~~ of ~~Geosynchronous~~our ~~Orbit~~capabilities, ~~(GSO)~~competitive ~~or Geostationary Equatorial Orbit (GEO) satellites and the lower latency services of non-geosynchronous orbit (NGSO) satellite constellations~~edge, markets ~~such as Medium Earth Orbit (MEO)~~ and ~~Low Earth Orbit (LEO).~~opportunities

● Our carrier-neutral solution supports critical communications while providing flexibility, redundancy, and resiliency. It can also eliminate vendor lock-in and reduce capex investment for our customers and partners.Capabilities

●We ~~Our~~are ~~antenna~~strategically ~~control~~positioned ~~algorithms~~to leverage cutting-edge technology and ~~ability~~partnerships to ~~integrate~~become ~~our~~a leader in satellite communications. ~~solutions~~With ~~with~~a ~~diverse~~focus ~~sensors,~~on ~~payloads~~both mission-critical infrastructure and ~~guidance~~agile service delivery, ~~navigation~~we ~~and~~provide ~~control~~robust, ~~(GNC)~~high-performance ~~systems~~connectivity ~~position~~solutions us to ~~meet~~diverse ~~the~~sectors. ~~needs~~Our ofcapabilities, ~~both~~competitive ~~civil~~advantages, and market opportunities are aligned to drive growth, expand our presence, and ~~defense~~enhance ~~aerospace~~our ~~customers~~global footprint.

~~Markets~~We provide mission-critical satellite communications –services, Weleveraging ~~believe~~a ~~that~~combination weof ~~are~~cutting-edge attechnologies and strategic partnerships to offer secure, scalable, and high-performance broadband connectivity solutions. Our capabilities include the ~~point~~development of ~~monetization~~proprietary technologies, ~~poised~~such as universal terminals, multi-orbit antennas, and software-defined modems, designed for flexible, agile, and reliable operations across a variety of sectors. Additionally, our expertise as a full-systems integrator allows us to seamlessly deliver ~~differentiated~~comprehensive solutions inthat meet the ~~fast-growing~~specific ~~market for~~requirements ~~satellite~~of ~~communications~~both public and private sector customers.

●Our ~~Market~~core ~~Growth~~platform integrates several advanced components, including:

~~According to~~● aUniversal 2023 annual report by Boeing on the commercial aviation industry, reports by the Teal Group on the unmanned aerial vehicle (UAV) industry, and reports by NSR on the role of satellite communications for the telecommunications industry, we believe that our target segments of Aerospace & Defense and Civilian Telecommunications are projected to grow threefold, from approximately $20 billion to $60 billion by 2030. Geopolitical conflicts are driving the adoption of dual-use applications for satellite communications.Terminals:

3Providing carrier-neutral broadband access with dynamic connectivity to the most suitable satellite across multiple orbital layers.

~~We believe~~● ~~there~~Multi-Orbit ~~are a numerous opportunities to rapidly develop the Company.~~Antennas:

●Enabling ~~Product~~efficient, ~~Readiness~~high-throughput communications across LEO, MEO, and GEO constellations.

~~We have~~● ~~successfully~~Software-Defined delivered solutions to our development partner and customer and are experiencing interest from additional potential customers. The Company’s technology has demonstrated positive results in both operational and lab environments.Modems:

●Offering ~~Poised~~secure, ~~for~~flexible ~~Expansion~~transmission with military-grade encryption.

~~We expect~~● to execute our first major contract in 2024 and plan to invest in talent and strategic partnerships to fuel growth. Additionally, we aim to be in a position to introduce higher volume and higher margin solutions by 2026.Virtualization:

●Ensuring ~~Top-tier~~scalability ~~Talent~~and flexibility to meet evolving customer demands in diverse environments.

We bring together a constellation of expert talent, including semiconductor and satellite communication innovators, as well as veterans in aerospace and telecommunications commercializing dual-use technologies.4

~~As of~~Through ~~April~~these 27technologies, ~~2023, the Company has been awarded a regional satellite service spectrum usage permit. With this permit and our proprietary technology,~~ we ~~believe~~deliver ~~that we will be able~~ end-to ~~develop and expand our revenue stream from satellite services. This positions us as not~~-end ~~only~~communications asolutions ~~hardware~~that ~~and~~are ~~system~~resilient, ~~supplier~~scalable, ~~but also a distributor of multi-orbit satellite bandwidth \~~and ~~satellite connectivity services provider, which expands the markets in which we can participate~~future-ready.

~~As a~~Competitive satellite service provider in Taiwan, we will be authorized to provide satellite services in the Civilian Telecommunications market, such as for mobile backhaul, and Aerospace & Defense markets, for both aviation and maritime applications. We expect these capabilities also to enable us to secure network resiliency contracts.Edge

~~Outlook~~Our competitive edge stems from a combination of proprietary technology, a flexible business model, and our position within strategic markets. We differentiate ourselves in the satellite communications space through:

~~The Company~~● ~~intends~~Asset-Light toBusiness capitalize on our numerous initiatives in the Aerospace & Defense and Civilian Telecommunications markets to establish a leading position as innovators at the forefront of the booming satellite communications industry. We are primed to capitalize on the opportunities presented by the rapidly evolving satellite communication landscape, driving innovation and delivering value to customers and stakeholders.Model:

~~Our~~By not owning satellites or constellations, ~~Technology~~we maintain operational flexibility and ~~Product~~scalability, ~~Overview~~reducing capital expenditure and accelerating time-to-market.

4● Technological Innovation:

WeOur ~~aim~~proprietary totechnologies, ~~provide~~such ~~asset-light~~as the ~~end-to-end~~universal ~~broadband~~terminal ~~connectivity~~ with ~~satellite~~ ~~partners~~multi-orbit antennas and ~~mobile~~software-defined ~~network operators~~modems, byoffer ~~leveraging~~unparalleled ~~advanced~~performance ~~technology~~in ~~and~~diverse, ~~partnerships~~contested ~~to offer innovative connectivity solutions~~environments. WeOur ~~will~~advanced ~~remain~~ESA ~~less~~antenna ~~capital~~technology ~~intensive~~enhances ~~than~~throughput ~~many~~and ~~comparable~~efficiency ~~companies~~while inreducing ~~the space industry as we do not operate~~size, ~~nor intend in the future to operate~~weight, ~~our~~and ~~own~~power ~~satellites or constellations~~consumption.

~~We aim~~● toSystems ~~work~~Integration with a variety of satellite operators across different orbits, including LEO, MEO, GEO, and HEO. We also aim to engage with MNOs on both their 5G and 6G terrestrial technology roadmaps, as well as their plans to implement localized network resiliency to their connectivity services by deploying High Altitude Platform Stations (HAPS). This combination allows for extensive coverage and flexibility in providing broadband services to users and platforms on land, in the air, and at sea.Expertise:

~~As a~~Our ~~distribution~~ability ~~partner~~ to integrate complex satellite communication ~~service~~technologies ~~providers~~into comprehensive, wemission-critical ~~aim~~solutions enables us to provide ~~hybrid-orbit~~tailored services, ~~combining~~that meet the ~~strengths~~unique needs of various ~~satellite constellations~~sectors, toincluding ~~optimize~~defense, ~~connectivity~~aerospace, ~~solutions~~and ~~for~~commercial ~~customers~~telecommunications.

Our broadband connectivity solutions aim to cater to a diverse range of users and platforms, for both military and civilian applications, in order to ensure that customers across different domains can benefit from reliable and high-speed satellite connectivity.Markets

~~Our software-defined~~We ~~satellite~~believe ~~core~~that ~~network~~we ~~aims~~are toat ~~enable~~the ~~dynamic~~point ~~and programmatically efficient management~~ of ~~satellite networks. This~~monetization, ~~technology~~poised ~~aims~~ to ~~improve~~deliver ~~network~~differentiated ~~and~~solutions ~~constellation~~in ~~performance,~~the ~~resilience,~~fast-growing ~~and~~market ~~adaptability~~for tosatellite ~~changing conditions~~communications.

~~We aim~~● toMarket ~~orchestrate~~Growth -- According to a ~~comprehensive~~2023 ~~system~~annual ofreport ~~technologies~~by toBoeing ~~deliver~~on ~~differentiated~~the ~~capabilities~~commercial toaviation ~~revolutionize~~industry, ~~satellite~~reports ~~communication and~~by tothe ~~deliver~~Teal ~~unparalleled~~Group ~~capabilities~~on the unmanned aerial vehicle (UAV) industry, and ~~value~~reports ~~both~~by toNSR on the role of satellite communications for the telecommunications industry, we believe that our ~~customers~~target segments of Aerospace & Defense and Civilian Telecommunications are projected to ~~our~~grow ~~partners~~threefold, from approximately $20 billion to $60 billion by 2030. Geopolitical conflicts are driving the adoption of dual-use applications for satellite communications.

5We believe there are numerous opportunities to rapidly develop the Company.

~~We design~~● ~~comprehensive~~Product ~~solutions~~Readiness ~~for~~-- ~~our~~We ~~customers~~have ~~that~~successfully ~~take~~delivered ~~advantage~~solutions ofto ~~both~~our ~~the~~development ~~proprietary~~partner ~~technologies~~and ~~that~~customer weand ~~design~~are ~~and~~experiencing ~~develop as~~interest ~~well~~from asadditional ~~the~~potential ~~world-class~~customers. ~~technologies~~The ~~that~~Company’s wetechnology ~~can~~has ~~source~~demonstrated ~~and~~positive ~~integrate~~results ~~from~~in ~~partners,~~both asoperational ~~outlined~~and ~~below:~~lab environments.

● ~~Revolutionary~~Poised ~~Communication~~for ~~Device~~Expansion ~~Design~~-- We expect to execute our first major contract in 2024 and plan to invest in talent and strategic partnerships to fuel growth. Additionally, we aim to be in a position to introduce higher volume and higher margin solutions by 2026.

~~Our cutting~~● Top-~~edge~~tier ~~technology~~Talent ~~includes~~-- ~~the~~We ~~development~~bring oftogether ~~universal~~a ~~terminals,~~constellation ~~providing~~of ~~carrier-neutral~~expert ~~satellite~~talent, ~~broadband~~including ~~access.~~semiconductor ~~These terminals~~and ~~are~~satellite ~~designed~~communication toinnovators, ~~meet~~as ~~the~~well ~~diverse~~as ~~needs~~veterans ofin ~~users~~aerospace ~~across various sectors~~ and ~~domains,~~telecommunications ~~ensuring~~commercializing ~~seamless~~dual-use ~~connectivity and unparalleled performance~~technologies.

●With ~~Next-Generation~~the ~~Software~~award of a regional satellite service spectrum usage permit on April 27, 2023, the Company has solidified its position as a licensed satellite telecommunications provider in the Asia-~~Defined~~Pacific ~~Non~~region. Building on this regulatory milestone, we entered into a Distribution Partner Agreement (DPA) with Eutelsat OneWeb Group in September 2024. This agreement grants our subsidiary the rights to distribute OneWeb’s Low-~~Terrestrial~~Earth ~~Network~~Orbit (LEO) satellite connectivity services across targeted commercial fixed and land mobile sectors within key regional markets. Together, these developments support the expansion of our satellite service offerings and revenue streams throughout the Asia-Pacific.

We are at the forefront of implementing virtualization for satellite communications through our software-defined radios, software-defined modems and our progress towards a software-defined non-terrestrial network (NTN) that connects satellites to users and platforms across domains. This approach enhances flexibility, scalability, and efficiency, allowing for dynamic adaptation to evolving communication needs.5

●These ~~Innovative~~strategic ~~System~~advancements ~~Integrator~~have elevated our role from a hardware and systems supplier to a full-service satellite connectivity provider and distributor of multi-orbit satellite bandwidth. We are now positioned to deliver a broad range of services across the Civilian Telecommunications market—including mobile backhaul—and the Aerospace & Defense sectors, supporting both aviation and maritime applications. Our expanding footprint also strengthens our ability to compete for network resiliency contracts, contributing to long-term revenue growth.

~~Our expertise~~By ~~extends~~operating toas ~~system~~both ~~integration~~a ~~where~~systems weintegrator ~~blend~~and value-added ~~our~~services ~~expertise~~provider, inwe ~~satellite~~are ~~communications~~able ~~and~~to ~~satellite~~deliver ~~network~~end-to-end ~~architecture~~satellite-based ~~with our~~solutions ~~understanding~~tailored ofto the specific needs of ~~our~~diverse ~~customers~~regional markets. ~~and~~This ~~the~~dual ~~platforms~~capability ~~they~~broadens ~~are~~our ~~operating.~~addressable Wemarket ~~can~~and ~~strategically~~reinforces ~~source~~our ~~partner~~role ~~technologies~~in supporting critical communications infrastructure. ~~and~~The ~~integrate~~experience ~~them~~gained ~~together~~through ~~with~~deployments ~~our~~in ~~own~~these ~~systems~~markets toprovides ~~create~~a ~~robust~~scalable ~~and~~foundation ~~reliable~~that ~~satellite~~we ~~communications~~plan ~~solutions~~to ~~tailored~~extend to ~~meet~~additional ~~the~~geographies ~~mission-critical~~through ~~demands~~existing ofrelationships ~~our~~with ~~current~~satellite operators and ~~prospective~~future ~~customers~~strategic partnerships.

One of our key system-level advantages is built on our team’s fabless semiconductor chip and panel design and engineering expertise, which allows us to remain asset-light while also developing state-of-the-art technologies. With a focus on delivering superior connectivity, we believe our universal terminals for satellite communications are poised to set a new high bar for the industry.Opportunities

6We are uniquely positioned to capitalize on several emerging opportunities, driven by geopolitical trends, technological advancements, and strategic partnerships:

~~Our universal~~● ~~terminals~~Defense ~~for~~Sector ~~satellite communications incorporate~~Growth:

●With ~~Multi-orbit~~increased ~~flat~~defense ~~panel~~budgets ~~antenna~~and ~~(FPA)~~an evolving security landscape, particularly since the onset of the Ukraine conflict, demand for resilient communications infrastructure is accelerating. Our solutions are specifically designed to meet the needs of modern defense operations, providing high-throughput connectivity in multi-domain environments.

~~We implement~~● anStrategic electronically steered array (ESA) or FPA using glass semiconductor processes, which is the key enabler for our universal terminals capability to connect to satellites in multiple orbits from a single antenna aperture. By virtue of being able to link to different satellites in different orbits with the same hardware, we aim to enable more reliable, higher performance and more resilient satellite communications.Partnerships:

Our ~~semiconductor~~ ~~glass~~Distribution ~~antenna~~Partner ~~can~~Agreement ~~also~~with Eutelsat ~~transmit~~OneWeb ~~and~~Group, ~~receive~~combined ~~50%~~with ~~more~~existing ~~Mbps~~and ~~per~~future ~~square-inch than previous state-of-the-art~~ satellite ~~broadband terminals.~~operator ~~This~~relationships, ~~also~~ enables us to ~~optimize~~leverage ~~size,~~LEO ~~weight~~satellite ~~and~~services to ~~power,~~expand ~~while~~our ~~also~~presence ~~delivering~~in ~~competitive~~critical ~~performance~~markets ~~and~~such ~~resiliency~~as toJapan, ~~customers using~~Taiwan, ~~our~~and ~~universal~~other ~~terminals~~parts of Asia.

~~Our glass~~● ~~antenna~~Global can also deliver multi-beam connectivity that allows for seamless or “make-before-break” handovers between satellites, as well as multi-channel connectivity that uses difference frequency bands in both licensed and unlicensed spectrum.Expansion:

●The ~~Software~~success of our projects in Japan and Taiwan provides a scalable model that can be replicated in other high-~~defined~~growth ~~modem~~regions, positioning us for further market expansion. As we expand our service offerings across different sectors, our asset-light business model allows us to grow efficiently without the capital constraints of owning satellites.

~~We are~~● ~~developing~~Regulatory ~~a carrier-neutral software-defined modem in order to provide carrier-neutral broadband connectivity over our software-defined radio (SDR). Our implementation of SDR technology aims to provide secure~~ and ~~agile~~Distribution ~~signal~~Partner ~~transmission~~Authorization ~~with military-grade security features.~~Milestones

~~Our~~Recent regulatory approvals, such as ~~implementation~~the ofregional ~~software-defined~~satellite ~~modems~~service ~~aims~~spectrum topermit ~~enable~~in the ~~flexibility~~Indo-Pacific, ~~security,~~strengthen ~~adaptability~~our position in key markets and ~~efficiency~~enhance our ~~customers~~ability ~~need by~~to ~~providing~~deliver ~~programmable~~mission-critical ~~signal~~connectivity ~~processing~~services ~~functions~~in ~~that~~high-demand ~~can~~sectors. beIn ~~reconfigured~~addition, tothe ~~support~~Distribution ~~different~~Partner ~~modulation~~Agreement ~~and~~(DPA) ~~coding~~secured ~~schemes,~~with Eutelsat asOneWeb ~~well as~~Group ~~the~~expands ~~latest~~our ~~protocols~~commercial footprint and ~~standards~~creates new revenue opportunities in strategic markets.

Our software-defined modems aim to enable flexibility, adaptability, and efficiency by providing programmable signal processing functions that can be reconfigured to support different modulation and coding schemes, as well as the latest protocols and standards. By applying a single hardware platform for multiple standards, we aim to create a unique system to be more flexible and compatible with different satellite constellation waveforms, and more easily upgraded for new waveforms via software updates.Outlook

~~Both end~~The ~~users~~Company ~~and~~intends ~~our~~to ~~satellite~~capitalize ~~operator~~on ~~partners can benefit from deploying~~ our ~~universal~~numerous initiatives ~~terminals~~in ~~with~~the ~~our~~Aerospace ~~high~~& ~~efficiency~~Defense ~~antennas~~ and ~~software-defined~~ ~~modems.~~Civilian ~~Customers~~Telecommunications ~~benefit~~markets ~~because~~to ~~they~~establish ~~can use~~ a ~~single~~leading ~~terminal~~position toas ~~communicate~~innovators ~~across~~at ~~satellites, orbits and operators,~~the ~~which~~forefront ~~means~~of ~~they~~the dobooming ~~not need to invest in dedicated terminals for each~~ satellite, ~~orbit~~communications ~~or operator they wish to connect with~~industry. ~~Furthermore, our~~We ~~universal~~are ~~terminals~~primed ~~aim~~ to ~~deliver~~capitalize ~~high-performance~~on inthe aopportunities ~~package~~presented ~~that~~by ~~takes~~the uprapidly evolving ~~less~~satellite ~~size,~~communication ~~weight and power than other systems~~landscape, ~~end users~~driving ~~may~~innovation ~~experience~~and ~~additional~~delivering ~~benefits~~value into ~~terms~~customers ofand ~~total cost of ownership when choosing our universal terminals~~stakeholders.

For satellite operators, the high efficiency of our glass semiconductor antenna and the software-programmability of our modem, when used by their customers—on land, in the air, or at sea—can potentially reduce the maintenance and replacement schedule of satellites and constellations, which hare huge drivers of cost and capital expenditures across the satellite industry.6

7Our Technology and Product Overview

~~Regional~~We aim to provide asset-light end-to-end broadband ~~Satellite~~connectivity ~~Service~~with ~~Operation~~satellite ~~(TW)~~partners and mobile network operators, by leveraging advanced technology and partnerships to offer innovative connectivity solutions. We will remain less capital intensive than many comparable companies in the space industry as we do not operate, nor intend in the future to operate, our own satellites or constellations.

We ~~made~~ ~~strides~~aim into ~~licensing,~~work ~~securing~~with ~~our~~a ~~first~~variety of satellite ~~spectrum~~operators across ~~usage~~different ~~permit~~orbits, ~~from~~including ~~the~~LEO, ~~Government~~MEO, ofGEO, ~~Taiwan~~and HEO. ~~With~~We ~~the~~also ~~approval~~aim ~~from~~to ~~Taiwan’s Ministry~~engage ofwith ~~Digital~~MNOs ~~Affairs~~on inboth ~~2023~~their of5G ~~our~~and ~~satellite~~6G ~~operator~~terrestrial ~~license~~technology roadmaps, weas ~~will~~well ~~continue~~as totheir beplans ~~one~~to ofimplement ~~the~~localized ~~few~~network ~~satellite~~resiliency ~~service providers~~ to ~~offer~~their ~~satellite~~connectivity services toby ~~customers~~deploying inHigh ~~the~~Altitude ~~region~~Platform Stations (HAPS). AsThis acombination ~~result,~~allows wefor ~~are~~extensive incoverage ~~the~~and ~~unique~~flexibility ~~position~~in toproviding bebroadband ~~the~~services ~~only~~to ~~Non-Geostationary~~users ~~Satellite~~and platforms ~~Orbit,~~on ~~or NGSO~~land, ~~service operator~~ in the ~~Taiwan market. We have established ties with operators in the LEO~~air, ~~MEO, GEO,~~ and ~~HEO~~at ~~sectors~~sea.

~~The receipt~~As ofa ~~our~~distribution partner to satellite service providers, ~~spectrum~~we ~~usage~~aim ~~permit~~to inprovide ~~Taiwan~~hybrid-orbit services, ~~also~~combining ~~qualifies~~the usstrengths toof ~~apply~~various ~~for~~satellite anconstellations ~~ITU~~to ~~(International~~optimize ~~Telecommunication~~connectivity ~~Union)~~solutions ~~operator’s~~for ~~membership~~customers. AsOur abroadband ~~qualified~~connectivity ~~ITU~~solutions ~~member,~~aim weto ~~should~~cater beto ~~able~~a todiverse ~~expand~~range ~~our~~of ~~global~~users ~~operations~~and byplatforms, ~~gaining~~for ~~access~~both tomilitary ~~the~~and ~~global~~civilian ~~radio~~applications, ~~frequency~~in ~~spectrum,~~order ~~regulatory~~to ~~compliance,~~ensure ~~international~~that ~~coordination~~customers ~~and~~across ~~cooperation,~~different ~~and~~domains ~~representation~~can inbenefit ~~global~~from reliable and high-speed satellite ~~forums~~connectivity.

Our software-defined satellite core network aims ~~Markets~~to enable dynamic and programmatically efficient management of satellite networks. This technology aims to improve network and constellation performance, resilience, and adaptability to changing conditions.

In recent years, with the accelerated development of the satellite industry, particularly in significant investment in LEO and MEO development, the ecosystem has matured considerably. We aim to secure a substantial market share in both the “Ground Equipment” and “Satellite Services” sectors.7

~~According to~~We aaim ~~2021~~to ~~report~~orchestrate bya ~~the~~comprehensive ~~Satellite~~system ~~Industry~~of technologies ~~Association,~~to ~~these~~deliver ~~sectors~~differentiated ~~represent~~capabilities ~~nearly~~to ~~68%~~revolutionize ofsatellite ancommunication ~~industry~~and ~~valued~~to atdeliver ~~$386~~unparalleled ~~billion. This~~capabilities ~~growing~~and ~~market~~value isboth ~~expected~~ to ~~experience~~our ~~significant~~customers ~~growth over the next decade~~ and ato ~~half,~~our ~~reaching a total value of approximately $1,053 billion by 2040~~partners.

~~With~~We design comprehensive solutions for our customers ~~the~~that ~~competitive~~take ~~advantages~~advantage of ~~our~~both ~~products~~the ~~and~~proprietary ~~solutions,~~technologies that we ~~aim~~design toand ~~leverage~~develop ~~emerging~~as ~~trends~~well ~~and~~as ~~capitalize~~the onworld-class ~~business~~technologies ~~opportunities~~that we can ~~for~~source ~~growth.~~and integrate from partners, as outlined below:

~~We recognize~~● ~~rapid~~Revolutionary ~~growth~~Communication inDevice ~~the~~Design ~~satellite~~-- ~~technology~~Our ~~communications~~cutting-edge ~~market~~technology ~~serving~~includes ~~customers in both~~ the ~~public~~development ~~and~~of ~~private~~universal ~~sector across the civilian telecommunications~~terminals, ~~aerospace~~providing ~~and~~carrier-neutral ~~defense~~satellite ~~sectors~~broadband access. ~~Our~~These ~~target~~terminals ~~segments of the global market~~ are ~~growing~~designed ~~from approximately $20 billion in 2023~~ to ~~approximately~~meet ~~$60~~the ~~billion~~diverse byneeds ~~2030,~~of ~~representing~~users aacross ~~16%~~various ~~blended~~sectors ~~compound~~and ~~annual~~domains, ~~growth~~ensuring ~~rate~~seamless ~~(CAGR),~~connectivity asand ~~outlined below~~unparalleled performance.

8● Next-Generation Software-Defined Non-Terrestrial Network -- We are at the forefront of implementing virtualization for satellite communications through our software-defined radios, software-defined modems and our progress towards a software-defined non-terrestrial network (NTN) that connects satellites to users and platforms across domains. This approach enhances flexibility, scalability, and efficiency, allowing for dynamic adaptation to evolving communication needs.

~~Within civilian~~● ~~telecommunications,~~Innovative ~~the~~System ~~key~~Integrator ~~subset~~-- ofOur ~~the~~expertise ~~market~~extends weto ~~are~~system ~~targeting~~integration iswhere ~~anticipated~~we toblend ~~grow~~our ~~from~~expertise $3in ~~billion~~satellite incommunications ~~2023~~and tosatellite ~~$25~~network ~~billion by~~architecture ~~2030.~~with ~~Market~~our ~~reports~~understanding ~~published~~of bythe ~~NSR~~needs ~~indicate~~of ~~that~~our ~~“non-terrestrial~~customers ~~networks”~~and ~~(NTN)~~the ~~will~~platforms ~~become~~they aare ~~central~~operating. ~~feature~~We ~~of 5G~~can ~~Advanced~~strategically ~~and~~source 6Gpartner ~~networks,~~technologies and ~~that~~integrate ~~satellite~~them ~~connectivity~~together ~~needs~~with ofour ~~MNOs~~own ~~will~~systems ~~evolve~~to ~~from~~create arobust ~~nice-to-have~~and ~~“back-up”~~reliable insatellite ~~their 4G~~communications ~~LTE~~solutions ~~networks~~tailored ~~into~~to ameet ~~must~~the mission-~~have~~critical ~~“back~~demands ~~bone”~~ of ~~their~~our 5Gcurrent ~~Advanced~~ and 6Gprospective customers.

Within aerospace, one of the key subsets we are targeting is commercial aviation, which is anticipated to grow from $7 billion in 2023 to $21 billion by 2030. According to annual reports by Boeing and Airbus, commercial airlines plan to outfit approximately 70% of passenger aircraft for high-throughput inflight broadband by 2030 up from just approximately 25% in 2023, meaning that delivering a solution that is approved and qualified for both retrofit and “line-fit” installations will be necessary.8

~~Within defense,~~One ~~one~~ of ~~the~~our key ~~subsets~~system-level ofadvantages ~~the~~is ~~market~~built on weour ~~are~~team’s ~~targeting~~fabless issemiconductor ~~UAVs~~chip ~~for~~and ~~the~~panel ~~military~~design and engineering expertise, which isallows ~~anticipated~~us to ~~grow~~remain ~~from~~asset-light ~~$12 billion~~while inalso ~~2023~~developing ~~to $16 billion by 2030, according to~~ state-of-the-art ~~Teal Group~~technologies. ~~According~~With toa ~~the~~focus ~~same~~on ~~reports,~~delivering ansuperior ~~even~~connectivity, ~~steeper~~we ~~growth~~believe ~~trajectory~~our isuniversal ~~anticipated~~terminals for insatellite ~~the~~communications ~~civilian~~are ~~UAV~~poised ~~market, which is forecast~~ to ~~grow~~set ~~from~~a $7new ~~billion~~high inbar ~~2023~~for tothe ~~$20 billion by 2030~~industry.

~~We do~~Our ~~not~~universal ~~yet~~terminals include this projected civilian UAV market in our target segments, but we aim to be in a strong position to enter the civilian UAV market in the future after first focusing on the defense UAV market. Similarly, we see future opportunities to enter the market for ~~both~~ ~~manned~~satellite ~~and~~communications unmanned maritime and land-based vehicles and platforms for the defense industry, which are complementary to our focus on the defense UAV market, as they often include the same prime contractors and military customers.incorporate:

~~Dual~~● Multi-~~use technologies~~orbit ~~expand~~flat ~~how~~panel ~~satellite~~antenna ~~broadband~~(FPA) is-- ~~used~~We ~~and~~implement an electronically steered array (ESA) or FPA using glass semiconductor processes, which is the key enabler for our universal terminals capability to connect to satellites in multiple orbits from a single antenna aperture. By virtue of being ~~driven~~able byto ~~geopolitical~~link ~~conflict~~to different satellites in different orbits with the same hardware, aswe ~~has~~aim ~~been~~to ~~evident~~enable inmore ~~Ukraine~~reliable, ~~where~~ higher performance and more resilient satellite communications. Our semiconductor glass antenna can also transmit and receive 50% more Mbps per square-inch than previous state-of-the-art satellite broadband ~~has~~terminals. ~~been~~This ~~deployed~~also ~~with~~enables ~~great~~us ~~effectiveness~~to optimize size, ~~including~~weight and power, while also delivering competitive performance and resiliency to customers using our universal terminals. Our glass antenna can also deliver multi-beam connectivity that allows for seamless or “make-before-break” handovers between satellites, as well as multi-channel connectivity that uses difference frequency bands in ~~combination~~both ~~with~~licensed ~~UAVs~~and unlicensed spectrum.

~~In response~~● toSoftware-defined ~~growing~~modem ~~demand~~-- ~~from~~We ~~governments~~are ~~and~~developing ~~militaries,~~a ~~prime~~carrier-neutral ~~defense~~software-defined ~~contractors~~modem in ~~US,~~order ~~NATO~~to ~~and~~provide ~~Japan~~carrier-neutral ~~are~~broadband ~~reportedly~~connectivity ~~developing unmanned~~over ~~systems~~our ~~for~~software-defined ~~both~~radio ~~intelligence,~~(SDR). ~~surveillance~~Our implementation of SDR technology aims to provide secure and ~~reconnaissance~~agile ~~missions~~signal ~~(ISR)~~transmission aswith ~~well~~military-grade assecurity ~~for~~features. ~~collaborative~~Our ~~combat~~implementation ~~aircraft~~of ~~(CCA), or~~software-defined modems aims to enable the ~~teaming~~flexibility, ofsecurity, ~~manned~~adaptability and ~~unmanned~~efficiency ~~aircraft,~~our ~~the~~customers ~~latter~~need ~~sometimes~~by ~~referred~~providing programmable signal processing functions that can be reconfigured to assupport ~~“loyal~~different ~~wingman”,~~modulation and ~~next~~coding ~~generation air~~schemes, ~~dominance~~as ~~(NGAD)~~well as the latest protocols and standards.

Our ~~technologies~~ ~~are~~software-defined ~~relevant~~modems aim to enable flexibility, adaptability, and ~~differentiated~~efficiency ~~for~~by ~~all~~providing ofprogrammable ~~these~~signal ~~programs~~processing functions that can be reconfigured to support different modulation and coding schemes, as well as the latest protocols and standards. By applying a single hardware platform for ~~additional~~multiple ~~manned~~standards, we aim to create a unique system to be more flexible and ~~unmanned~~compatible ~~maritime~~with different satellite constellation waveforms, and ~~land~~more easily upgraded for new waveforms via software updates. Both end users and our satellite operator partners can benefit from deploying our universal terminals with our high efficiency antennas and software-~~based~~defined modems. Customers benefit because they can use a single terminal to communicate ~~platforms~~across satellites, orbits and ~~vehicles~~operators, which means they do not need to invest in dedicated terminals for each satellite, orbit or operator they wish to connect with. Furthermore, our universal terminals aim to deliver high-performance in a package that takes up less size, weight and power than other systems, end users may experience additional benefits in terms of total cost of ownership when choosing our universal terminals.

~~Aerospace~~For satellite operators, the high efficiency &of ~~Defense~~our ~~Market~~glass semiconductor antenna and the software-programmability of our modem, when used by their customers—on land, in the air, or at sea—can potentially reduce the maintenance and replacement schedule of satellites and constellations, which hare huge drivers of cost and capital expenditures across the satellite industry.

In ● Regional Satellite Service Operation (TW) -- We made strides in licensing, securing our first satellite spectrum usage permit from the ~~aerospace~~Government ~~and~~of ~~defense~~Taiwan. ~~sectors~~With the approval from Taiwan’s Ministry of Digital Affairs in 2023 of our satellite operator license, we will continue to be one of the few satellite ~~communication~~service ~~plays~~providers to offer satellite services to customers in the region. As a ~~critical~~result, ~~role~~we are in ~~enabling~~the ~~various~~unique ~~applications~~position to be the only Non-Geostationary Satellite Orbit, ~~including~~or ~~commercial aviation~~NGSO, service operator in~~-flight~~ ~~connectivity~~the Taiwan market. We have established ties with operators in the LEO, MEO, GEO, and HEO sectors. The receipt of our satellite service spectrum usage permit in Taiwan, also qualifies us to apply for an ITU (~~IFC~~International Telecommunication Union) operator’s membership. As a qualified ITU member, ~~and~~we ~~defense~~should ~~ISR-type~~be able to expand our global operations by gaining access to the global radio frequency spectrum, regulatory compliance, international coordination and ~~CCA-type~~cooperation, ~~programs~~and representation in global forums.

~~Commercial aviation~~Our relies on satellite communication for in-flight connectivity, enabling passengers to access high-speed internet and other services during flights. The adoption of satellite-based in-flight connectivity (IFC) solutions is expected to increase significantly in the coming years. Airlines are seeking to enhance passenger experience and differentiate their services in a competitive market.Markets

~~The Fortune~~In ~~Business~~recent ~~Insight~~years, ~~report~~the ~~projects~~satellite ~~that~~industry ~~approximately~~has ~~70%~~experienced rapid ofgrowth, ~~commercial~~driven ~~aircraft~~in ~~will~~large bepart ~~equipped with high-throughput inflight broadband~~ by ~~2030,~~significant upinvestments ~~from just around 25%~~ in ~~2023.~~Low ~~This~~Earth ~~significant~~Orbit ~~increase~~(LEO) inand ~~adoption~~Medium ~~rates~~Earth ~~will~~Orbit ~~necessitate~~(MEO) ~~both~~satellite ~~retrofitting and “line-fit” installations~~development. As athe ~~result,~~ecosystem ~~the~~continues ~~market~~to ~~for~~mature, ~~inflight~~we ~~broadband~~are ~~services~~strategically isfocused ~~anticipated~~on tocapturing ~~grow~~a ~~from~~substantial $7share ~~billion~~of ~~to $21~~the ~~billion,~~market ~~presenting~~in ~~lucrative~~both ~~opportunities~~the ~~for~~Ground Equipment ~~satellite~~and ~~communication~~Satellite ~~providers~~Services segments.

InThe Satellite Industry Association released the 28th Annual State of the ~~defense~~Satellite ~~sector,~~Industry ~~satellite~~Report ~~communication~~(the ~~supports~~“SIA ~~ISR~~Report”) ~~and~~in ~~unmanned~~May ~~platforms~~2025 ~~programs~~reporting bya ~~providing~~historic ~~secure~~number ~~and~~of ~~reliable~~launches ~~communication~~in 2024 to power commercial ~~links~~satellite ~~for~~industry ~~unmanned~~growth. ~~aerial~~During 2024, ~~maritime~~a historic number totaling 259 launches were deployed to a record of 2,172 tons and ~~land~~2,695 ~~vehicles~~satellites into ~~and~~Earth ~~the~~orbit ~~vast~~with ~~majority~~U.S. oflaunch ~~military~~market ~~platforms~~share increasing to 65%. ~~Satellite-based~~Also ~~communication~~in ~~enables~~2024, the global space economy expanded by 4 percent with the ~~real-time~~commercial ~~data~~satellite ~~transmission,~~industry ~~command~~accounting ~~and~~for ~~control,~~71 percent of the world’s space business and ~~situational~~satellite ~~awareness~~manufacturing revenue increased by 17 percent with U.S. market share increasing to 69 percent – a whopping increase of 50 percent over 2023. The commercial satellite sector sustained its momentum, ~~enhancing~~recording ~~operational~~its ~~efficiency~~seventh ~~and~~consecutive ~~effectiveness~~year of growth in ~~defense missions~~satellite deployments. (Source: Historic Number of Launches Powers Commercial Satellite Industry Growth – Satellite Industry Association Releases the 28th Annual State of the Satellite Industry Report – Satellite Industry Association)

~~Industry projections~~The ~~indicate~~satellite anindustry ~~increase~~highlights ~~in market size~~ from ~~$12 billion in 2023 to $16 billion by 2030. In~~ the ~~Defense~~2025 ~~sector,~~State ~~we have been pioneering a first-~~of~~-its-kind~~ ~~satellite~~the ~~communications architecture for unmanned aerial, maritime, and land vehicles engaged in intelligence,~~Satellite ~~surveillance,~~Industry ~~and~~Report ~~reconnaissance~~ (~~ISR~~SSIR) ~~missions~~are inas ~~collaboration with our development partner and the customer.~~follows:

10Industry Growth and Performance

~~Defense~~● Global Satellite Industry Revenue:

~~Unmanned platforms~~The ~~have~~global ~~revolutionized~~satellite ~~military~~industry ~~operations~~generated ~~with~~$350 ~~their~~billion ~~versatility~~in ~~and agility. However~~2024, ~~their reliance on connectivity handoffs~~reflecting ~~between~~an ~~ground-based~~estimated ~~line-~~increase of~~-sight~~ ~~antennas,~~nearly ~~typically~~17 ~~operating~~percent inover ~~C-band, and GEO, or GSO, satellites present several challenges that limit their effectiveness in certain scenarios~~2023.

~~Prime defense~~● ~~contractors~~Record inSatellite the US, NATO, Australia, and Japan are actively developing unmanned systems for ISR, and numerous other unmanned platforms to include CCA-type and NGAD applications. This strategic shift towards unmanned systems is expected to drive the demand for satellite communication technology, particularly for data transmission and remote-control capabilities, which can keep a “human-in-the-loop” (HITL).Launches:

~~Innovative programs~~For ~~such as~~ the USseventh ~~Air~~consecutive ~~Force’s Loyal Wingman Program~~year, ~~aim~~the atcommercial ~~enhancing~~satellite ~~collaborative combat capabilities. The program involves~~industry ~~the~~set ~~deployment~~a ofnew ~~1,000~~record ~~CCA~~ with ~~$6.~~2 ~~billion budget by 2028~~,695 ~~which~~commercial wesatellites ~~expect~~launched ~~will~~in ~~require~~2024, ~~advanced~~marking ~~satellite~~a ~~communication~~3% ~~systems~~increase ~~for real-time~~compared ~~data~~to ~~sharing, over-~~the~~-horizon~~ ~~coordination,~~previous ~~and mission execution~~year. ~~These~~This ~~CCA units serve as force multipliers, working in~~increase ~~tandem~~helped ~~with~~drive ~~manned~~the ~~platforms~~industry’s to achieve strategic objectives and maintain battlefield superiority, but are just one example of how governments and militaries are considering how best to deploy both manned and unmanned platforms to accomplish defense objectivesgrowth.

~~Collaborative Combat Aircraft, Concept Art (Source: Boeing Image)~~10

~~Source: The~~● ~~Washington~~Active ~~Post~~Satellites: ~~How drones are controlled, 2014~~

~~We aim~~By tothe ~~offer~~end ~~unparalleled~~of ~~flexibility~~2024, tothe ~~defense~~global ~~unmanned~~satellite ~~platforms~~fleet byreached ~~enabling~~11,539 ~~communication~~active satellites ~~across~~orbiting ~~six dimensions: domain~~Earth, ~~orbit,~~compared ~~beam, carrier,~~with ~~frequency~~9,691 ~~and~~active ~~satellite.~~satellites ~~This~~in ~~innovative~~2023 ~~approach~~and ~~aims~~just ~~to allow users to establish multiple communication paths simultaneously~~3, ~~enhancing~~371 ~~redundancy, resilience, and adaptability~~ in ~~dynamic operational environments~~2020, ~~while~~showcasing ~~also~~the ~~offering~~rapid ~~complementary~~expansion ~~functionality~~of the ~~such~~satellite ~~as jamming~~ecosystem.

~~We are~~Revenue well positioned to deliver high-value functionality that effectively balances performance with total cost of ownership. We are actively engaged in discussions with leading prime contractors to provide a differentiated satellite communications system tailored specifically for unmanned platforms across all domains to include CCA-type programs and are co-creating new concepts of employment and concepts of operation for satellite communications on these platforms.Breakdown

~~Two high~~● ~~profile~~Ground examples from the US Air Force include planning to spend more than $6 billion on CCA drone programs over the next five years, in addition to an estimate of $16 billion on the NGAD program over the same time period.Equipment:

11According to the SIA report, the Satellite Ground Segment generated more than $155.3 billion in revenue in 2024 with ground equipment, a sub-segment, was the highest earning industry segment, generating $150.4 billion, or approximately 53% of the industry’s overall revenue in 2023. While there are slight variations in the exact figures, the overall trend confirms the dominance of the ground segment in terms of revenue.

~~Commercial Aviation~~● ~~Connectivity~~Satellite Services:

~~The February~~In 2024, ~~IATA~~the ~~(International~~satellite ~~Air~~services ~~Transport~~segment ~~Association)~~generated ~~Air~~a ~~Passenger~~total ~~Market~~revenue ~~Analysis~~of $108.3 ~~report~~billion, ~~announced~~driven ~~that~~in ~~industry-~~part ~~industry-wide air~~by ~~passenger~~significant ~~traffic~~growth in satellite broadband services. Specifically, ~~measured~~the satellite broadband market saw substantial growth in 2024, with revenue ~~passenger-kilometers~~increasing ~~(RPK)~~by 29% compared to the previous year, ~~surpassed~~according ~~2019~~to ~~levels~~the S SIA report, which growth was also reflected in ~~February~~subscriber ~~2024~~numbers, ~~marking~~which rose by 46% during the ~~first~~same ~~occurrence~~period. While traditional satellite TV services ofexperienced ~~full~~a ~~global~~decline ~~recovery~~in revenue in ~~both~~2024, ~~domestic~~the ~~and~~growth ~~international~~in ~~travel~~satellite ~~segments~~broadband ~~(Chart~~significantly 1)offset this decline, contributing to an overall 3% increase in the commercial satellite industry’s revenue, which reached $293 billion in 2024.

~~Total RPK~~● ~~were~~Satellite 5.7% higher than February 2019 figures, while international and domestic traffic saw 0.9% and 13.7% growth over the same period, respectively. Passenger load factors in all segments were also close to pre-COVID levels, indicating the return of available seat supply and passenger demand on a global scale. Compared to the previous year, total traffic increased in 21.5%.Manufacturing:

~~Growth~~The global satellite manufacturing sector experienced significant growth in 2024, with revenues reaching $20 billion, a 17% increase over 2023. The U.S. dominated this market, accounting for 69% of ~~Aviation~~global manufacturing ~~Industry~~revenues. This growth was fueled by increased demand for both large government satellites and smaller, more numerous satellites, particularly for commercial applications like broadband internet and Earth observation.

~~Immediately prior~~● toLaunch the onset of the COVID-19 pandemic, there were, according to Airbus and Boeing, more than 23,000 commercial aircraft flying globally, a number that was expected to more than double in the next 20 years. Both Airbus and Boeing estimated in their respective 2023 reports that the global fleet of commercial aircraft would increase from 23,000 planes in 2019 to more than 46,000 in 2042. Services:

The global commercial launch services market generated $9.3 billion in ~~Airbus~~revenue ~~Global~~in ~~Market~~2024 ~~Forecast~~compared ~~report~~to $7.2 billion in revenue in 2023, –a ~~2042~~30% ~~predicted~~increase from the ~~following:~~previous year. This growth was driven by a record 259 orbital launches in 2024 compared to 221 orbital launches in 2023.

Source:~~https://www.airbus.com/en/products~~ Click Here To View -~~services/commercial-aircraft/market/global-market-forecast~~ State of the Satellite Industry Report

~~● Passenger traffic compound annual growth rate of 3.6% and freight traffic compound annual growth rate of 3.2%.~~11

●Emerging ~~Airbus~~Trends ~~forecasts a demand for 40,850 new passenger~~ and ~~freighter aircraft deliveries over the next 20 years, of which 32,630 will be single aisle and 8,220 widebody.~~Opportunities

12● Broadband Services:

●The ~~Asia-Pacific~~demand for satellite broadband services continued to grow in 2024. The market size increased from $5.33 billion in 2023 to $5.99 billion in 2024, ~~China~~demonstrating a 12.4% compound annual growth rate, ~~Europe~~according to The Business Research Company. This growth is fueled by the increasing need for reliable connectivity in rural and USremote ~~continue~~areas, as towell beas ~~major~~the ~~drivers~~demand for ~~growth~~global internet access and ~~replacement~~disaster recovery solutions.

~~Boeing, in~~● ~~their~~Space ~~Commercial Market Outlook 2023-2042 Report, presents an excellent Executive Summary of the 20-Year Market Demand.~~Sustainability:

~~Source:~~The growing market for space sustainability, including in-orbit servicing ~~https://www~~and space situational awareness (SSA), generated revenue of $1.~~boeing~~65 billion in 2024 as compared to $300+ million in revenue in 2023.~~com/commercial/market/commercial~~ SSA accounted for about three-~~market-outlook~~quarters of this figure.

13Market Outlook

● Growth of ~~Private Aircraft (Business Jets / VIP)~~Areas:

~~In 2022,~~The ~~Airbus~~satellite ~~Corporate~~broadband ~~Jets~~sector ~~(ACJ)~~and ~~conducted a survey among senior executives of U.S. businesses with an annual revenue of over $500 million.~~space ~~The~~sustainability ~~study~~are ~~showed that 89% of those surveyed~~ expected ~~their organizations~~ to ~~increase~~be ~~their~~key ~~use~~drivers of ~~business~~future ~~jet~~industry ~~aviation~~expansion. inContinued ~~2023,~~advancements ~~with 25%~~in ~~predicting~~satellite ittechnology ~~would~~and ~~increase~~increased demand byfor ~~more~~secure, ~~than~~agile, ~~half.~~and ~~Such~~high-throughput ~~customers~~communications ~~can~~will belikely ~~expected~~fuel togrowth ~~consider~~across ~~inflight~~various ~~connectivity to be essential~~sectors.

~~Rapidly~~The 2024 State of the Satellite Industry Report ~~Growing~~(SSIR) ~~In-Flight~~highlights ~~Internet~~ongoing ~~Markets~~growth and maturation in the satellite industry, with steady increases in satellite launches, revenue generation, and emerging opportunities in satellite services and space sustainability. While the SSIR does not provide specific revenue projections for future years, the highlighted trends—particularly in broadband services and space sustainability—suggest areas of potential growth.

~~The International~~Industry ~~Air~~analysts ~~Transport~~and ~~Association~~investment ~~(IATA)~~banks ~~expects overall traveler numbers to reach 4.0 billion in 2024 spread across 23,000 airplanes.~~project ~~Only~~that ~~about~~the ~~25%~~global ofspace ~~these~~economy ~~airplanes~~could ~~are~~reach ~~equipped~~$1 totrillion ~~offer some form of onboard connectivity, and that connectively is often marked~~ by ~~erratic quality~~2040, ~~slow~~signaling ~~speeds~~a ~~and~~positive ~~low~~long-term ~~broadband. Less~~outlook ~~than~~for ~~25% of~~ the ~~world’s~~satellite ~~airline~~industry, ~~companies are providing some form of in-flight~~which ~~WiFi~~is ~~services.~~poised Wefor ~~believe~~continued ~~that~~expansion ~~there~~and isincreased ~~a huge~~ market ~~potential~~share ~~among~~in the ~~many~~broader ~~unconnected~~space ~~airlines~~economy. (Source: SpaceNews)

According to the ~~Boeing~~November ~~Report~~2024 ~~titled~~report, “~~Commercial~~Satellite Manufacturing Market ~~Outlook~~Size ~~2019~~- –By ~~2038”~~Orbit, itSatellite ~~has~~Mass, ~~been~~Propulsion ~~projected~~Technology, ~~that~~Application, byEnd ~~the~~Use ~~end~~Analysis, ofShare, ~~2030~~Growth Forecast, 2025 – 2034,” ~~two-thirds~~The ofglobal ~~the~~satellite ~~world’s~~manufacturing ~~aircraft~~market ~~fleet~~size ~~will~~is ~~have~~estimated ~~some~~to ~~form~~grow at a CAGR of ~~connectivity,~~14.8% ~~whether~~from ~~through~~2025 ~~retrofit~~to or2034. ~~line~~The ~~fit~~market atis ~~production~~growing as demand ~~stage~~rises for advanced Earth observation and data analytics. ~~Currently~~This growth stems from the need for real-time, ~~most~~high-resolution ~~connectivity~~data ~~upgrades~~in ~~are~~areas like ~~being~~environmental ~~done~~monitoring, ~~through~~disaster ~~aircraft~~response, ~~modification~~agriculture, asand ~~in-service~~urban ~~aircraft~~planning. ~~are~~Technological ~~outfitted~~progress ~~with~~in ~~new~~satellite miniaturization and ~~high-speed~~operational ~~systems.~~efficiency Ithas isled ~~estimated~~to ~~that~~the ~~more~~deployment ~~than~~of ~~1,000~~small ~~commercial~~satellites ~~aircraft~~and ~~are~~CubeSats ~~being~~that ~~upgraded~~can ~~annually~~perform complex observation tasks, further driving market expansion.

~~Whether aircraft~~Source: ~~connectivity~~Satellite isManufacturing ~~being~~Market ~~carried out as a retrofit or built into the initial aircraft production line~~Size, Growth ~~demand~~Trends ~~for in~~2025-~~flight connectivity is increasing.~~2034

1412

~~Civilian~~Within civilian telecommunications, the key subset ~~Telecommunications~~of the market we are targeting is anticipated to grow from $3 billion in 2023 to $25 billion by 2030. Market reports published by NSR indicate that “non-terrestrial networks” (NTN) will become a central feature of 5G Advanced and 6G networks, and that satellite connectivity needs of MNOs will evolve from a nice-to-have “back-up” in their 4G LTE networks into a must-have “back bone” of their 5G Advanced and 6G.

In Within aerospace, one of the 5Gkey ~~Advanced~~subsets ~~era~~we ~~and~~are targeting ~~during~~is ~~the~~commercial ~~transition~~aviation, which is anticipated to 6Ggrow asfrom ~~defined~~$7 bybillion ~~the~~in ~~3GPP~~2023 ~~(3rd~~to ~~Generation~~$21 ~~Partnership~~billion ~~Project),~~by ~~the~~2030. ~~Non-Territorial Network~~According ~~(NTN)~~to ~~plays~~annual areports by ~~major~~Boeing ~~role~~and inAirbus, ~~communication~~commercial ~~standards.~~airlines ~~This~~plan ~~includes~~to ~~utilizing~~outfit ~~satellites~~approximately ~~across~~70% ~~all~~of ~~orbits~~passenger ~~(LEO,~~aircraft ~~MEO,~~for ~~GEO,~~high-throughput ~~HEO)~~inflight broadband ~~and~~by ~~HAPS~~2030 toup ~~extend~~from ~~coverage~~just toapproximately ~~areas~~25% ~~currently~~in ~~not~~2023, ~~served~~meaning bythat ~~mobile~~delivering ~~communication~~a ~~systems,~~solution ~~such~~that asis ~~the~~approved ~~sky,~~and ~~sea,~~qualified for both retrofit and “line-fit” ~~space~~installations will be necessary.

~~Since~~ Within defense, one of the ~~outbreak~~key subsets of the market ~~Russia-Ukraine~~we ~~war~~are intargeting ~~2022~~is UAVs for the military, which ~~has~~is ~~showcased~~anticipated ~~the~~to ~~importance~~grow offrom ~~communications~~$12 ~~networks~~billion asin ~~critical~~2023 ~~infrastructure~~to $16 billion by 2030, according ~~for~~to ~~modern~~the ~~nations~~Teal Group. According to the same reports, an even steeper growth trajectory is anticipated in the ~~global~~civilian ~~landscape~~UAV ~~has~~market, ~~been~~which ~~marked~~is forecast byto ~~geopolitical~~grow ~~pressures~~from $7 billion in 2023 to $20 billion by 2030.

~~The~~We do not yet include this projected civilian ~~resilience~~UAV ofmarket ~~communication~~in ~~networks~~our ~~has~~target ~~emerged~~segments, asbut we aim to be in a ~~focal~~strong ~~point~~position ofto ~~global~~enter ~~attention~~the ~~with~~civilian ~~satellite~~UAV ~~communication~~market ~~assuming~~in athe ~~critical~~future after first focusing on the defense UAV market. Similarly, we see future opportunities to enter the market for both manned and ~~pivotal~~unmanned ~~role~~maritime and land-based vehicles and platforms for the defense industry, which are complementary to our focus on the defense UAV market, as they often include the same prime contractors and military customers.

WeDual-use technologies expand how satellite broadband is used and is being driven by geopolitical conflict, as has been evident in Ukraine, where satellite broadband has been deployed with great effectiveness, including in combination with UAVs. In response to growing demand from governments and militaries, prime defense contractors in US, NATO and Japan are ~~prioritizing~~reportedly ~~civilian~~developing ~~telecommunications~~unmanned ~~within~~systems for both intelligence, surveillance and reconnaissance missions (ISR) as well as for collaborative combat aircraft (CCA), or the ~~satellite~~teaming ~~communication~~of ~~industry~~manned and unmanned aircraft, ~~alongside~~the ~~Aerospace~~latter &sometimes ~~Defense~~referred to as “loyal wingman”, and next generation air dominance (NGAD). ~~This~~Our ~~focus~~technologies are relevant and differentiated for all ~~encompasses~~of ~~two~~these ~~key~~programs, ~~sectors:~~as ~~mobile~~well ~~backhaul~~as ~~via~~for ~~satellite~~additional manned and ~~network~~unmanned ~~resilience~~maritime and land-based platforms and vehicles.

~~Mobile Backhaul~~Aerospace ~~via~~& ~~Satellite~~Defense Market

~~The mobile~~In ~~backhaul~~the ~~sector~~aerospace isand ~~projected~~defense tosectors, ~~see~~satellite communication ~~revenue~~plays ~~growth~~a ~~from~~critical $3role ~~billion~~ in ~~2023~~enabling tovarious ~~$25~~applications, ~~billion~~including bycommercial ~~2030~~aviation, ~~with~~in-flight aconnectivity ~~compound~~(IFC), ~~annual growth~~defense ~~rate~~ISR-type ~~(CAGR)~~and ofCCA-type 17programs.6% ~~(Source:~~Commercial ~~NSR~~aviation ~~“Wireless~~relies ~~Backhaul~~on ~~via~~satellite ~~Satellite,~~communication ~~15th~~for ~~Edition~~in-flight ~~Report).~~connectivity, ~~The~~enabling ~~number~~passengers to ofaccess 4Ghigh-speed ~~base~~internet ~~stations is~~and ~~approximately~~other 6services ~~million~~during toflights. 7The ~~million,~~adoption ~~while that~~ of 5Gsatellite-based isin-flight ~~3.8~~connectivity ~~million~~ (~~Sources: GSMA, Huawei~~IFC). ~~Similarly, the network resilience sector~~solutions is ~~forecasted~~expected to ~~experience~~increase ~~revenue~~significantly ~~growth~~in ~~from~~the ~~$16~~coming years.2 ~~billion~~Airlines inare ~~2023~~seeking to ~~$33~~enhance ~~billion~~passenger byexperience ~~2028~~and ~~(Source:~~differentiate ~~Mordor~~their services ~~Intelligence:~~in ~~Network~~a ~~Resilience Market~~competitive ~~Forecast)~~market.

~~These~~The Fortune Business ~~market~~Insight ~~statistics~~report ~~clearly~~projects ~~signal~~that ~~potential~~approximately ~~business~~70% ~~opportunities~~of ~~that~~commercial aircraft will be equipped with high-throughput inflight broadband by 2030, up from just around 25% in 2023. This significant increase in adoption rates will necessitate both retrofitting and “line-fit” installations. As a result, the ~~Company~~market ~~aims~~for inflight broadband services is anticipated to ~~actively~~grow ~~pursue~~from $7 billion to $21 billion, presenting lucrative opportunities for satellite communication providers.

In ~~telecommunications~~ ~~networks~~the defense sector, ~~the~~satellite ~~backhaul~~communication supports ~~network~~ISR ~~provides~~and ~~high-capacity~~unmanned ~~connections~~platforms ~~between~~programs ~~cell~~by ~~sites~~providing secure and ~~the~~reliable ~~core~~communication ~~network~~links for unmanned aerial, ~~utilizing~~maritime, and land ~~fiber~~vehicles ~~optic~~and ~~cables~~the vast majority of military platforms. Satellite-based communication enables real-time data transmission, ~~microwave~~command ~~links~~and control, and situational awareness, enhancing operational efficiency and ~~satellites~~effectiveness in defense missions. ~~Satellite~~Industry ~~transmission~~projections isindicate ~~predominantly~~an ~~employed~~increase in ~~for~~market ~~mobile~~size ~~backhaul~~from ~~not~~$12 ~~only~~billion in 2023 to $16 billion by 2030. In the Defense sector, we have been pioneering a first-of-its-kind satellite ~~remote~~communications ~~areas~~architecture ~~but~~for ~~also~~unmanned aerial, maritime, and land vehicles engaged in ~~major~~intelligence, ~~backbones~~surveillance, and ~~serves~~reconnaissance (ISR) asmissions ain ~~crucial~~collaboration ~~technology~~with our development partner and the customer.

1513

Satellite backhaul offers an alternative method for connecting cell sites and the core network. Despite being traditionally considered a last resort by mobile operators due to past experiences, recent advancements in satellite technologies, combined with professional services, have addressed these concerns. Today, cost-effective, and high-performing fully managed satellite backhaul solutions are readily available. These solutions empower mobile operators to swiftly deploy 4G, 5G, 5G advanced or Internet of Things (IoT) services in any location. Apart from rural deployments, mobile backhaul via satellite also serves as a backup and backbone solution in the event of outages on fiber or microwave backhauled networks.Defense

AtUnmanned platforms have revolutionized military ~~present,~~operations ~~MNOs~~with ~~are~~their ~~transitioning~~versatility and agility. However, their ~~perception~~reliance on connectivity handoffs between ground-based line-of-sight ~~satellite~~antennas, typically ~~connectivity~~operating ~~needs~~in C-band, ~~moving~~and ~~from~~GEO, ~~considering~~or itGSO asatellites ~~supplementary~~present ~~backup~~several tochallenges that limit their effectiveness in certain scenarios. anPrime ~~essential~~defense ~~backbone~~contractors in the US, ~~particularly~~NATO, asAustralia, ~~non-terrestrial~~and ~~networks~~Japan ~~(NTN)~~are ~~become~~actively ~~integrated~~developing ~~into~~unmanned 5Gsystems ~~Advanced~~for ISR, and 6Gnumerous ~~systems~~other unmanned platforms to include CCA-type and NGAD applications. ~~Amidst~~This ~~this~~ strategic shift, ~~our~~towards ~~products~~unmanned ~~and~~systems ~~solutions~~is ~~are~~expected ~~well-aligned~~to ~~with~~drive the demand for satellite communication technology, particularly for data transmission and ~~fulfill~~remote-control ~~the~~capabilities, ~~evolving~~which ~~market~~can ~~demands~~keep a “human-in-the-loop” (HITL).

~~Currently, MNOs~~Innovative ~~are~~programs ~~contending~~such ~~with~~as the ~~challenges~~US ~~posed~~Air byForce’s Loyal ~~oversized~~Wingman ~~and~~Program, ~~costly~~aim ~~antennas~~at enhancing collaborative combat capabilities. WeThe ~~address~~program ~~this~~involves ~~issue~~the ~~with~~deployment ~~our~~of ~~glass~~1,000 ~~semiconductor~~CCA ~~flat~~with $6.2 ~~panel~~billion ~~antennas~~budget by 2028, ~~featuring~~which ~~small~~we ~~form~~expect ~~factors~~will ~~and~~require ~~high~~advanced ~~throughput~~satellite ~~capabilities.~~communication ~~These~~systems ~~high~~for ~~throughput~~real-time ~~antennas~~data ~~are~~sharing, ~~well~~over-~~suited~~the-horizon coordination, ~~for~~and ~~managing large~~mission ~~volumes~~execution. ofThese ~~data~~CCA ~~transmission~~units serve as force multipliers, working in ~~mobile~~tandem ~~backhaul~~with manned platforms to achieve strategic objectives and ~~mobile~~maintain ~~backbone~~battlefield ~~applications~~superiority, ~~while~~but ~~also~~are ~~facilitating~~just ~~compact~~one ~~installation~~example onof how governments and militaries are considering how best to ~~cell~~deploy ~~sites,~~both ~~effectively~~manned ~~resolving~~and ~~this~~unmanned ~~prevalent~~platforms ~~telecommunications~~to ~~industry~~accomplish ~~challenge~~defense objectives.

16Collaborative Combat Aircraft, Concept Art (Source: Boeing Image)

~~NTT DoCoMo’s~~Source: ~~document~~The onWashington ~~“Research~~Post: ~~and~~How ~~Development~~drones ~~for 6G Wireless” emphasizes the pivotal role of satellites in the research~~are ~~and~~controlled, ~~development of 6G. This strategic emphasis on satellite technology as a solution has been integrated into their practical technical plan and investment strategy.~~2014

~~Source~~We aim to offer unparalleled flexibility to defend ~~Link:~~unmanned ~~https~~platforms by enabling communication across six dimensions:~~//www~~ domain, orbit, beam, carrier, frequency, and satellite.~~docomo~~ This innovative approach aims to allow users to establish multiple communication paths simultaneously, enhancing redundancy, resilience, and adaptability in dynamic operational environments, while also offering complementary functionality such as jamming.~~ne.jp/27nglish/binary/pdf/info/media_center/event/mwc24/Research_and_Development_for_6G_Wireless.pdf~~

~~We are engaged in close collaboration with strategic partners, including global telecommunications service operators, telecommunications equipment manufacturers, and solution providers.~~14

We are ~~poised~~well positioned to deliver high-value functionality that effectively balances performance with total cost of ownership. We are actively ~~pursue~~engaged ~~business~~in ~~opportunities~~discussions ~~within~~with ~~the~~leading 5Gprime ~~and~~contractors to 6Gprovide ~~ecosystem,~~a differentiated satellite communications system tailored specifically for unmanned platforms across all domains to include CCA-type programs and are co-creating anew ~~promising~~concepts ~~future~~of employment and ~~generating~~concepts ~~solid~~of operation for satellite communications on these platforms. ~~revenue~~Two ~~income~~high profile examples from the US Air Force include planning to spend more than $6 billion on CCA drone programs over the next five years, in addition to an estimate of $16 billion on the NGAD program over the same time period.

17Our company recognizes the critical role of UAVs and UAS (Unmanned Aircraft System) in contemporary defense strategies. As global military expenditures continue to rise and the demand for advanced unmanned systems grows, we are strategically positioned to capitalize on these trends. Our focus includes:

~~Network Resilience~~● Research and Development:

~~Network resilience~~Investing isin ~~becoming~~cutting-edge ~~increasingly crucial due~~ technologies to ~~several~~enhance ~~interconnected~~UAV ~~factors. The growing dependence on digital services and interconnected systems amplifies the impact of network outages and disruptions~~capabilities, ~~making~~including ~~them~~AI ~~more~~integration ~~costly~~ and ~~disruptive.~~advanced ~~Moreover,~~propulsion ~~the escalation of cyberattacks, natural disasters, geographical conflicts, and infrastructure failures underscores the significance of resilient networks capable of enduring a variety of challenges~~systems. As the world moves towards 5G, 6G, and beyond, with a focus on low latency and high reliability, network resilience emerges as an essential design principle to ensure uninterrupted connectivity in the face of evolving threats and increased network reliance.

~~Software-Defined Networking~~● ~~(SDN)~~Strategic and Network Function Virtualization (NFV) are crucial technologies that provide dynamic and flexible solutions for network management. SDN centralizes control of network traffic, enabling swift rerouting and resource allocation during disruptions. Similarly, NFV enables virtualized network functions, allowing for rapid deployment and scaling of resources to meet evolving demands or emergencies. The integration of these technologies strengthens network resilience and adaptability, ensuring smooth operations even in challenging scenarios.Partnerships:

~~The integration~~Collaborating ofwith ~~diverse~~defense ~~technologies plays a crucial role in enhancing network robustness and resilience. By combining various technologies~~agencies ~~such as fiber optics, satellites,~~ and ~~microwave~~industry ~~links~~leaders ~~for~~to ~~backhaul,~~deliver ainnovative ~~more~~solutions ~~resilient~~tailored ~~network infrastructure can be established. Moreover, leveraging edge computing~~ to ~~process~~evolving ~~data~~military ~~locally reduces reliance on centralized infrastructure, thereby further strengthening network resilience~~needs. ~~This strategic integration of diverse technologies ensures a more flexible and adaptable network architecture capable of withstanding various challenges and disruptions.~~

~~Major countries~~● ~~and~~Market governments worldwide are increasingly prioritizing network resilience. These entities are allocating significant budgets and making efforts to enhance national network infrastructure to address challenges and prevent disruptions in communication services. This emphasis extends to leveraging satellite technology and service providers, including LEO and MEO solutions.Expansion:

18Targeting growth opportunities in emerging markets, particularly in regions with increasing defense budgets and a focus on modernizing military infrastructure.

~~Our~~We remain committed to delivering high-performance, ~~Strategy~~reliable, and technologically advanced UAV solutions to meet the dynamic requirements of defense operations worldwide.

~~Spotlight: Utilizing~~Commercial ~~Our~~Aviation ~~Universal Terminal for Satellite Communications on Unmanned Platforms~~Connectivity

~~We are pioneering a breakthrough in the application of satellite communication technology by installing our universal terminals on unmanned aerial, maritime, and land vehicles. Unlike traditional C~~In-~~band~~Flight ~~communications,~~Entertainment ~~our small form factor antenna~~ and ~~terminal~~Connectivity ~~aims to deliver~~(IFEC) ~~new~~Market ~~capabilities and performance for unmanned operations with compelling size, weight and power.~~

~~Today:~~According to the In-Flight Internet Market report published ~~Challenges~~by MarketsandMarkets in March 2025, the global in-flight internet services market is estimated to be valued at USD 1.6 billion in 2024 and is estimated to grow at CAGR of ~~Current~~6.1% ~~UAV~~to ~~Connectivity~~reach ~~with~~USD ~~GEO~~2.87 ~~Satellites~~billion by 2034. Rising demand from passengers for in-flight internet connectivity and advancement in satellite technology are the major factors contributing to the growth of the market. This growth is driven by heightened passenger expectations for seamless connectivity and personalized entertainment options during flights.

~~While unmanned~~Within ~~platforms~~the ~~have~~broader ~~revolutionized~~IFEC ~~military~~(In-Flight ~~operations with their versatility~~ Entertainment and ~~agility,~~Connectivity) ~~their reliance on connectivity handoffs between ground-based line-of-sight antennas~~market, ~~typically~~the ~~operating~~ in C-~~band,~~flight ~~and~~internet ~~Geostationary~~segment ~~Equatorial~~alone ~~Orbit~~is ~~(GEO),~~valued orat ~~geosynchronous orbit~~USD ~~(GSO),~~1.6 ~~satellites~~billion ~~present~~in ~~several~~2024, ~~challenges~~underscoring ~~that~~the ~~limit~~rising ~~their~~demand ~~effectiveness~~for onboard inconnectivity ~~certain scenarios~~solutions.

-The ~~Line-of-Sight~~market’s ~~Limitations:~~momentum ~~One~~is offueled ~~the~~by ~~key~~modern passengers’ ~~reasons~~expectations ~~that~~to ~~satellite~~stay ~~communications~~connected ~~have~~at ~~been~~all atimes—even ~~critical~~while ~~addition~~airborne. toBusiness ~~connectivity~~travelers ~~over~~seek ~~the last two decades is~~ to ~~eliminate~~remain ~~the~~productive during ~~reliance on line-of-sight (LOS) communications~~flights, ~~not~~while ~~just~~leisure ~~for~~passengers ~~take-off~~increasingly ~~and~~demand ~~landing,~~uninterrupted ~~but~~access ~~also for the full mission autonomy. For unmanned platforms without satellite communications, operations are restricted~~ to ~~areas~~entertainment ~~where direct visibility to the base is maintained, limiting their flexibility~~ and ~~operational~~social ~~range as well as their operational altitude~~media. ~~For~~Key ~~example,~~technological advancements assupporting ~~the~~this ~~UAV~~expansion ~~flies~~include ~~further away from~~ the ~~base,~~deployment ~~even~~of ~~if it can maintain a line~~high-~~of-sight~~throughput ~~communication~~satellites ~~link with the base~~(HTS), ~~due to~~ the ~~curvature~~rise of ~~the~~Low Earth, ~~the~~Orbit ~~UAV will gradually fly at a higher and higher altitude, resulting in limited operational capability, especially for intelligence, surveillance and reconnaissance~~ (~~ISR~~LEO) ~~missions where the UAV may need to fly close to the ground for its cameras and sensors to provide intelligence with sufficient resolution to be informative~~satellite constellations, ~~usable or actionable. For land or maritime platforms, the issue is compounded because the platform is by nature on the surface of the land or sea,~~ and ~~has~~continuous toinnovations ~~overcome~~in ~~unanticipated~~onboard ~~movement~~Wi-Fi ~~due to the sea or restrictions from overhead canopies or LOS limitations caused by terrain features~~systems.

19The global in-flight internet market is projected to reach USD 2.1 billion by 2029. During the forecast period from 2023 to 2029, North America is expected to account for the highest share of regional revenue, driven by strong demand and market expansion. Within the region, Canada is identified as the fastest-growing market. In terms of technology, satellite-based systems continue to dominate the In-Flight Entertainment and Connectivity (IFEC) market. By end user, business aviation accounts for the largest share of revenue, followed by commercial aviation, reflecting the increasing adoption of connectivity solutions across both segments.

- High-Latency Limitations: One of the weaknesses of unmanned platform connectivity over GEO/GSO satellites is the significant latency, estimated at approximately 600 milliseconds, which is too long for example to remotely control a UAV during critical mission phases, such as take-off and landing, evasive maneuvers and, in some cases, very low altitude flight. Although certain unmanned platforms include software features for automatic take-off and automatic landing, most unmanned platforms still rely on line-of-sight antennas for takeoff and landing operations, which pose additional vulnerabilities related to dependency on the ground infrastructure, noted below. The high-latency of the link over GEO/GSO satellites delivers senor data and camera data with approximately a half second of delay, which similarly delays responsiveness to rapidly unfolding situations in the field. In critical moments, such a delay can lead to a loss of the mission or a failure of mission objectives.15

~~- Dependency on Ground Infrastructure and Ground Crew~~Source: ~~The persistent dependency on line~~In-~~of-sight~~Flight ~~antennas~~Internet ~~can~~Market ~~require significant numbers of forward-deployed personnel to handle the take-off and landing operations on site~~Report, ~~and~~March this can place more personnel in the literal line of fire. Similarly, if the line-of-sight antennas are damaged, destroyed or jammed, all unmanned platforms airborne at that time that require line-of-sight communications to land are likely to be lost. This introduces a single-point-of-failure on the ground infrastructure making the UAV base a high-value target, which puts the ground crew personnel at high risk.2025

~~- Vulnerability to Jamming~~Source: In ~~scenarios where the gateway station communicating to the GEO/GSO satellite is disrupted by on~~-~~orbit~~Flight ~~jammers~~Internet orMarket ~~the GEO/GSO satellite itself is disabled by terrestrial jammers~~Report, ~~the~~May unmanned platform may lose its communication link and be rendered unable to perform its mission effectively. Because a GEO/GSO satellite is geo-stationary by design, it becomes a relatively easy target for terrestrial jamming. This dependency on GEO/GSO satellites introduces multiple single points-of-failure and compromises the reliability and resilience of unmanned platform operations.2024

-Market Projections ~~Mission~~(2025 ~~Disruption: The loss of communication link between the unmanned platform~~ and the GEO/GSO satellite not only halts ongoing missions but also jeopardizes the safety and security of the platform and its payload. Without real-time communication capabilities, the platform may be unable to receive commands or transmit critical data leading to mission failure and potential loss of assets.Beyond)

~~While~~Looking ~~unmanned platforms have brough compelling capabilities to militaries and governments over the last two decades~~ahead, in the ~~last~~IFEC ~~two~~market ~~years with~~is ~~the~~projected ~~conflict involving Ukraine, the urgent need for the capabilities of unmanned platforms~~ to ~~continue~~experience torobust ~~evolve has become evident.~~growth:

~~Aerkomm’s Solution~~● Global IFEC Market: ~~“Multi-Path~~Expected ~~^6”~~to ~~(domain,~~reach ~~orbit,~~$19.36 ~~beam,~~billion ~~carrier,~~by ~~frequency~~2032, ~~satellite~~growing at a compound annual growth rate (CAGR) of 10.5% from 2024 to 2032.

2016

~~We aim~~● toIn-Flight ~~offer~~Internet ~~unparalleled~~Segment: ~~flexibility~~Anticipated to ~~defense~~grow ~~unmanned~~at ~~platforms~~a byCAGR ~~enabling~~of ~~communication across six dimensions: domain, orbit, beam, carrier, frequency, and satellite~~5.7% ~~This~~from ~~innovative~~2024 ~~approach aims~~ to ~~allow users to establish multiple communication paths simultaneously~~2029, ~~enhancing~~ ~~redundancy,~~reaching ~~resilience,~~$2.1 ~~and~~billion ~~adaptability~~by ~~in dynamic operational environments, while also offering complementary functionality such as jamming~~2029.

● In-Flight ~~Enhanced~~Wi-Fi ~~Connectivity~~Market: ~~Our~~Projected ~~universal terminal for defense aim~~ to ~~enable~~expand ~~unmanned~~from ~~platforms~~$10.5 tobillion ~~establish communication links with non-geosynchronous satellite constellations (NGSO), such as those operating~~ in ~~LEO~~2025 ~~or MEO, which are less susceptible~~ to ~~jamming due to their proliferation in the sky~~$22.92 Webillion aim to use this groundbreaking feature to allow for remote control of seamless takeoff and landing operations of UAVs over NGSO satellites, which have significantly lower latency than GEO/GSO satellites, thus eliminating the limitations imposed by ~~traditional line-of-sight communication methods~~2032, ~~overcoming~~with ~~the~~a ~~high~~CAGR ~~latency issues~~ of ~~GEO/GSO~~11.8% ~~satellites~~during ~~and reducing~~ the ~~need~~forecast ~~for~~period. ~~forward deployed staff~~Coherent.

~~- Resilient Communication~~(Sources: InCredence ~~the~~Research, ~~face~~Fortune Business ~~of adversary actions such as satellite jamming~~Insights, ~~our technology aims to ensure mission continuity and resilience through multi-beam and multi-orbit connectivity. By connecting to different friendly satellites simultaneously~~MarketsandMarkets, ~~our antennas aim to provide redundancy~~ and ~~alternate~~Coherent ~~communication~~Market ~~paths, enabling unmanned platforms to maintain operational effectiveness even in challenging environments~~Insights.)

-The ~~Mission~~anticipated ~~Continuity:~~growth ~~With~~in ~~our~~the ~~universal~~in-flight ~~terminal~~internet services ~~for~~market ~~defense~~presents ~~onboard,~~significant ~~unmanned~~opportunities ~~platforms~~for ~~could~~stakeholders ~~seamlessly~~in ~~transition~~the ~~between~~aerospace ~~different satellite orbits, such as GEO, MEO~~ and ~~LEO,~~telecommunications orindustries. ~~between~~Airlines ~~different~~are ~~satellites~~increasingly investing in ~~the~~advanced ~~same~~connectivity ~~orbit~~systems ~~or constellation, in the event of satellite jamming or disruption. This design aims~~ to ~~ensure~~enhance ~~uninterrupted~~passenger ~~mission~~experience, ~~execution~~differentiate ~~and~~their ~~real-time data transmission~~services, ~~enhancing situational awareness~~ and ~~operational~~generate ~~flexibility~~ancillary revenue streams.

-We ~~Secure~~are ~~Communication:~~strategically ~~Leveraging~~positioned ~~advanced~~to ~~features~~capitalize on ~~such~~these astrends ~~Low~~by ~~Probability~~offering ofinnovative ~~Intercept~~solutions ~~(LPI)~~that ~~and~~cater ~~Low~~to ~~Probability~~the ofevolving ~~Detection~~needs ~~(LPD),~~of ~~our~~both ~~multi-beam~~airlines ~~antennas aim to keep unmanned platforms~~ and ~~other~~passengers. ~~manned~~We ~~platforms~~are ~~such~~committed ~~as,~~to delivering ~~ships~~high-quality, ~~airplanes~~reliable, and ~~ground~~scalable ~~command~~in-flight ~~centers~~internet ~~securely~~services ~~connected. Our approach aims to ensure~~ that ~~critical~~align ~~communications~~with ~~remain~~the ~~confidential~~industry’s ~~and~~growth ~~protected from hostile interference, enhancing overall mission security and effectiveness~~trajectory.

-The ~~Jamming~~December ~~Capabilities:~~2024 As“IATA an(International ~~additional~~Air Transport ~~feature,~~Association) weGlobal ~~aim~~Outlook tofor ~~enable~~Air ~~one~~Transport”, orreport ~~more~~that ofover the ~~multiple~~past ~~beams~~year, ofthe ~~our~~global ~~universal~~economy ~~terminal~~has ~~for~~been ~~defense~~remarkably stable. toUnemployment berates ~~used~~ in aOECD ~~jamming~~countries ~~mode~~were tobelow ~~disrupt~~historical ~~adversary~~averages, ~~communications~~global orinflation ~~operations.~~rates ~~Due~~continued to ~~the high transmit power capability that we aim to deliver with our multi-orbit system design~~fall, ~~our antennas aim to provide sufficient signal strength to disrupt or impair adversary communications~~ and ~~operations~~ticket ~~across domains: satellites in all orbits and airborne~~prices moderated, ~~maritime~~fueling ~~and land-based manned and unmanned platforms~~demand. ~~For~~Of ~~example~~course, ~~our~~uncertainties ~~approach~~persist ~~aims~~because toof ~~make~~wars, ~~our~~and ~~antennas~~the ~~capable~~policy toshifts ~~disrupt~~that the ~~guidance~~new ~~navigation~~US ~~and~~administration ~~control~~likely imply. ~~systems~~As offor ~~adversary~~the ~~manned~~approaching ~~and~~end ~~unmanned~~of ~~platforms~~2024, ~~potentially~~demand ~~providing~~for aair ~~nimble~~travel ~~and~~is ~~cost-effective~~not ~~approach~~only tostrong, ~~handling~~but ~~inbound~~has ~~ballistic~~set ~~and~~a ~~drone~~new all-~~based~~time ~~projectiles to complement traditional missile defense systems in the future~~high.

~~Our universal~~This ~~terminal~~buoyant ~~for~~aviation ~~defense~~activity ~~aims~~has pushed industry-wide passenger traffic to ~~drive~~new arecord ~~paradigm~~highs ~~shift~~in spite of capacity constraints in ~~unmanned~~2024. ~~platform~~The ~~satellite~~growth ~~communication,~~in ~~offering~~revenue ~~unparalleled~~passenger-kilometer ~~connectivity~~(RPK) and available seat-kilometer (ASK) have aligned with the trend observed in the decade leading up to the pandemic (see chart above). RPK, also known ~~resilience~~as Revenue Passenger Miles (RPM) in some regions, ~~and~~is ~~security~~a ~~for~~key ~~mission-critical~~metric ~~operations~~in the airline industry that measures the total number of kilometers (or miles) traveled by paying passengers. It ~~With~~is ~~our~~calculated ~~innovative~~by ~~solution,~~multiplying ~~unmanned~~the ~~platform~~number ~~operators~~of ~~can~~revenue ~~confidently~~passengers ~~navigate~~by the distance they travel ~~complex~~on ~~operational~~a ~~environments,~~flight. RPKs ~~ensuring~~are ~~continuous~~a ~~communication~~primary indicator of an airline’s traffic and ~~mission~~passenger ~~success~~demand. ASK is an airline capacity metric that represents the total number of seats available for passenger travel, multiplied by the distance flown in kilometers. It essentially quantifies an airline’s ability to transport passengers over a given distance.

~~With our~~In ~~extensive~~the ~~experience~~near future, the rise in ~~satellite~~passenger ~~communication~~traffic is ~~technology~~expected to follow this trajectory, wesupported ~~are~~by ~~uniquely~~persistent ~~positioned~~demand toand ~~serve~~the asexpansion aof ~~systems~~airline ~~integrator~~operations ~~for~~in ~~defense payloads~~key emerging economies. Supply Bychain ~~leveraging~~issues, ~~our~~however, ~~hardware~~could ~~and~~cap ~~software~~the ~~platforms~~potential growth in traffic, weas ~~have~~passenger ~~the~~load ~~capability~~factors toreached ~~seamlessly~~all-time ~~integrate~~highs ~~onboard~~across ~~sensor~~the ~~payloads~~different regions and ~~other~~ ~~mission-specific~~at ~~equipment,~~the ~~ensuring~~industry ~~interoperability~~level, ~~compatibility,~~while ~~and~~in ~~performance~~2024, ~~optimization~~the rise in ~~complex~~RPK ~~operational~~matched ~~environments~~that in ASK.

2117

~~Our Solutions~~Growth ~~and~~of ~~Business~~Aviation ~~Models~~Industry

~~Defense~~Immediately prior to the onset of the COVID-19 &pandemic, ~~Aerospace~~there were, according to Airbus and Boeing, more than 23,000 commercial aircraft flying globally, a number that was expected to more than double in the next 20 years.

~~Our~~Airbus, in their 2024 Global Market Report, highlights ~~Defense~~the ~~Connectivity~~following ~~Solutions~~forecast for the next 20 years 2024 – 2043:

Our universal terminal for defense aims to drive a paradigm shift in unmanned platform satellite communication, offering unparalleled connectivity, resilience, and security for mission-critical operationshttps://www. ~~With our innovative solution, unmanned platform operators can confidently navigate complex operational environments, ensuring continuous communication and mission success~~airbus.com/en/products-services/commercial-aircraft/global-market-forecast

~~With our extensive experience in satellite communication technology, we are uniquely positioned to serve as a systems integrator for defense payloads~~i. ByAs ~~leveraging~~COVID ~~our~~is ~~hardware~~behind ~~and software platforms~~us, wetraffic ~~have~~is ~~the~~reconnecting ~~capability~~with toprevious ~~seamlessly integrate onboard sensor payloads and other mission-specific equipment, ensuring interoperability, compatibility, and performance optimization in complex operational environments~~trends.

~~We are~~ii. ~~currently~~Expanding ~~developing~~economies ~~three~~and ~~solutions~~global ~~which~~population, ~~can~~growing bemiddle ~~offered~~class, toimproved ~~the~~infrastructure ~~defense~~and ~~market~~traffic stimulation from airlines offering new affordable flights all contribute to traffic growth.

	1.	Universal Terminal for Defense: Our universal terminals for defense aim to deliver a full satellite connectivity solution to both ISR and CCA UAVs. The universal terminal for defense UAVs, may contain antennas for transmission and receiving in one or more of the key frequency bands for high-throughput satellite connectivity for defense, principally Ka and Ku, which are used by satellites in GEO, MEO and in LEO orbits. The building blocks of our multi-orbit universal terminals are modular tiles. We can implement terminals of different sizes and capacity without material additional engineering, by combining more or fewer tiles based on the requirements of the mission or the program. While we aim to deliver a universal terminal for defense UAVs using only our proprietary technologies in the medium term, in order to meet customer timelines, we may also source and integrated partner technologies in the short term. The requirements for defense programs and missions may differ from the requirements for commercial products. Our universal terminals for defense UAVs may not be required to comply with ARINC 791 and 781 standards of Aeronautical Radio, Incorporated (ARINC), but will meet the necessary design approvals of our customers and their programs. We aim to also be able to deliver universal terminals for unmanned systems across domains of air, land, and sea, but our initial focus is on airborne platforms.
	2.	Satellite Communications for Terrestrial and Maritime Installations: Our customers in the defense sector may require comprehensive communications solutions across domains of land, air and sea. We aim to provide end-to-end solutions for our customers, which means that we may be required to deliver satellite communications solutions for both stationary and mobile ground-based installations, such as control cars and command posts, as well as maritime based installations. The satellite communications for terrestrial and maritime installations may contain antennas for transmission and receiving in one or more of the key frequency bands for high-throughput satellite connectivity for defense, principally Ka and Ku, which are used by satellites in GEO, MEO and in LEO orbits. We aim to deliver universal terminals using only our proprietary technologies in the medium term across all domains of land, air and sea, in order to meet customer timelines. Given that ground-based and sea-based installations typically have lesser requirements for size, weight and power, we may also source and integrated partner technologies in the short term. Requirements for defense programs and missions may be materially similar to requirements for commercial products, therefore our satellite communications for terrestrial and maritime installations may leverage dual-use technologies that are already certified for commercial use.

iii.

People want and need to fly. Aviation connects people, is a catalyst for trade, enables commerce, and supports communities.

3iv. ~~Systems~~Initial ~~Integration~~average ~~for~~traffic ~~Defense~~growth ~~Platforms:~~rate ~~Our multi-orbit universal terminals provide communications solution that we expect to be critical to the operations~~ of ~~both ISR and CCA-type missions~~8.4% ~~Our~~CAGR ~~satellite~~until ~~communications~~2027 ~~systems will therefore typically need to be integrated with onboard sensor payloads, and other payloads required by certain customer missions,~~ as ~~well~~it asrecovers ~~guidance,~~growth ~~navigation~~lost ~~and~~during ~~controls (GNC) systems. We expect that we may have~~ the opportunity to expand our services beyond providing the communications solution to serving as an end-to-end systems integrator for the payloads that we are already connecting to through our hardware and our softwarepandemic. At this time, we do not expect to have the opportunity to serve as a system integrator for platforms that do not already include or require our communication systems and our value-added resale of satellite bandwidth, but we will remain open to requests from our present and future customers and partners to fill such role.

22v. Long term trend: average annual pax traffic growth of 3.6% per year from 2027 to 2043, and 3.1% for freight.

~~Defense Connectivity~~vi. ~~Solutions~~China ~~market~~and India, and more generally Asia-Pacific as a whole, will power growth, further shifting aviation’s center of gravity’ towards Asia.

1vii. ~~Communications~~The ~~for~~projected ~~Manned~~2043 ~~and~~world ~~Unmanned~~Fleet-In-Service ~~Systems~~will be 48,230 in 2043 vs. 24,240 beginning of 2024

~~Within the~~viii. ~~defense~~Demand ~~segment,~~for ~~our main source of revenue is expected to be derived from contracts with militaries~~42,430 ~~governments~~new passenger and ~~defense~~freighter ~~contractors for~~deliveries ~~both~~in the ~~sale of our systems—the universal terminal for defense—as well as subscription~~2024-~~based~~2043 ~~plans~~period. ~~for~~Of ~~the~~these: ~~bandwidth connectivity~~33,510 ~~from~~single ~~our~~aisle ~~selected~~and ~~satellite~~8,920 ~~operator partners~~widebodies.

~~We aim~~ix. toGrowth ~~achieve~~primarily ~~this~~driven ~~with~~by ~~both~~GDP ~~retrofit~~increase ~~solutions~~(+2.6% on2023-2043), ~~manned~~middle ~~and~~class ~~unmanned~~expansion, ~~defense~~first ~~platforms~~time ~~already~~fliers, ~~in operation being maintained by militaries~~ and ~~governments,~~growing astrade ~~well~~(+3.1% ~~as line~~2023-~~fit~~2043 ~~solutions~~CAGR ~~for~~vs. ~~new~~+2.9 ~~manned~~% ~~and unmanned systems being assembled at the different defense contractors’ facilities prior to delivery to the respective militaries~~GMF23).

We already have an agreement in place with our first classified defense development partner and customer to develop a first-of-its-kind satellite communications architecture for unmanned aerial vehicles (UAVs) engaged in classified ISR missions.18

~~We are~~Boeing, in ~~advanced~~their ~~discussion~~Commercial ~~with~~Market ~~this~~Outlook, ~~development partner and customer to expand the engagement based on successful technology demonstrations~~issued in ~~2023~~July ~~and~~ 2024., ~~We are~~ also ~~directly~~predict engaged with several additional potential partners developing unmanned platforms for ISR and CCA-type missions regarding implementing our connectivity solutions as part of their programs. We cannot give any assurances at this time, however, that weairlines will beneed ~~able~~over to43,000 ~~successfully~~new ~~complete~~airplanes ~~any~~over ofthe ~~these~~next ~~additional~~20 ~~discussions~~years.

2https://www. ~~Terrestrial and Maritime Installations~~boeing.com/content/dam/boeing/boeingdotcom/market/assets/downloads/2024-cmo-executive-presentation.pdf

~~To capitalize~~Growth on the increasing demand for satellite communications for terrestrial and maritime installations for militaries and governments, we will aim to sell or to integrate end-to-end satellite communications systems to militaries, governments and defense contractors. In addition to selling integrated end-to-end satellite communications systems, we will also aim to sell to these military and government customers the bandwidth required for the operation of ~~our~~Private ~~services,~~Aircraft ~~priced~~(Business onJets a/ ~~subscription plan basis.~~VIP)

In ~~some~~ ~~cases~~2022, weAirbus ~~expect~~Corporate ~~that~~Jets ~~the~~(ACJ) ~~terrestrial~~conducted a ~~and~~survey ~~maritime~~among ~~installations~~senior ~~may~~executives beof ~~components~~U.S. ofbusinesses awith ~~wholistic~~an ~~end-to-end~~annual ~~satellite~~revenue ~~communications solution,~~of ~~but~~over in$500 ~~other~~million. ~~cases~~The westudy ~~expect~~showed that ~~militaries~~89% ~~and~~of ~~government~~those ~~customers~~surveyed expected ~~may~~their ~~contract~~organizations ~~for~~to ~~standalone~~increase ~~terrestrial~~their oruse ~~maritime~~of ~~solutions~~business jet aviation in 2023, with 25% predicting it would increase by more than ~~such~~half. asSuch tocustomers ~~provide~~can ~~connectivity~~be expected to ~~individual~~consider ~~ships~~inflight orconnectivity ~~command~~to ~~posts~~be essential.

~~We already~~Rapidly ~~have~~Growing ~~an agreement in place with our first classified defense development partner and customer for maritime and terrestrial installations as part of our end~~In-~~to-end~~Flight ~~solution~~Internet to support the classified ISR missions mentioned above. We also already are in discussions for standalone terrestrial customers. We cannot give any assurances at this time, however, that we will be able to successfully complete any of these additional discussions. Markets

3The International Air Transport Association (IATA) expects overall traveler numbers to reach 4.0 ~~Systems~~billion ~~Integrator~~in ~~for~~2024 ~~Manned~~spread across 23,000 airplanes. Only about 25% of these airplanes are equipped to offer some form of onboard connectivity, and ~~Unmanned~~that ~~Platforms~~connectively is often marked by erratic quality, slow speeds and low broadband. Less than 25% of the world’s airline companies are providing some form of in-flight Wi-Fi services. We believe that there is a huge market potential among the many unconnected airlines.

~~Within~~ According to the ~~defense~~Boeing ~~segment~~Report titled “Commercial Market Outlook 2019 – 2038”, asit anhas ~~additional~~been ~~service~~projected tothat by the ~~customers~~end ~~interested~~of in2030, ~~installing~~two-thirds ~~our~~of ~~satellite~~the ~~communications~~world’s ~~solutions~~aircraft ~~on their~~fleet ~~manned~~will ~~and~~have ~~unmanned~~some ~~platforms,~~form weof ~~are~~connectivity, ~~also~~whether ~~able~~through toretrofit ~~support~~or ~~integration~~line ~~with~~fit ~~onboard~~at ~~sensor~~production ~~payloads~~stage. Currently, ~~and~~most ~~other~~connectivity ~~payloads~~upgrades ~~required~~are being bydone ~~certain customer~~through ~~missions,~~aircraft modification as ~~well~~in-service asaircraft ~~guidance,~~are ~~navigation~~outfitted ~~and~~with ~~controls~~new ~~(GNC)~~and high-speed systems,. ~~which~~It weis ~~are~~estimated ~~already~~that ~~connecting~~more than to1,000 ~~through~~commercial ~~our~~aircraft ~~hardware and~~are ~~our~~being ~~software~~upgraded annually.

~~We already~~Whether ~~have~~aircraft anconnectivity ~~agreement~~is inbeing ~~place~~carried out ~~with~~as ~~our~~a ~~first~~retrofit ~~classified~~or ~~defense~~built ~~development~~into ~~partner~~the ~~and~~initial ~~customer~~aircraft ~~for~~production aline, ~~certain~~demand ~~level of systems integrator support~~ for ~~the UAV engaged~~ in-flight ~~the~~connectivity ~~classified~~is ~~ISR missions mentioned above~~increasing.

We also already are in discussions for an agreement with another systems integration partner expressing interest in our universal terminal for defense as well as our wrap-around services for system integration with other payloads. We cannot give any assurances at this time, however, that we will be able to successfully complete any of these additional discussions. 19

23Civilian Telecommunications

~~Our~~As the telecommunications industry advances toward ~~Defense~~5G ~~Business~~Advanced ~~Solutions~~ and prepares for the eventual adoption of 6G standards defined by the 3rd Generation Partnership Project (3GPP), the importance of Non-Terrestrial Networks (NTN) continues to grow. These networks—leveraging satellite systems across Low Earth Orbit (LEO), Medium Earth Orbit (MEO), Geostationary Orbit (GEO), Highly Elliptical Orbit (HEO), and High-Altitude Platform Stations (HAPS)—are increasingly seen as essential to extending coverage to underserved and remote environments, including maritime, aviation, and rural regions.

WeThe ~~can~~evolving ~~provide~~geopolitical landscape, including ~~different~~ongoing ~~business~~instability ~~solutions~~in toEastern ~~defense~~Europe ~~contractors~~and heightened global tensions, ~~militaries~~has further highlighted the strategic importance of resilient and secure ~~governments:~~communications infrastructure. Satellite communication, in particular, has become a vital element in ensuring continuity of service and national preparedness during times of disruption.

1.In ~~Retrofit~~response ~~solution~~to ~~for~~these industry ~~Militaries~~and geopolitical developments, ~~Governments~~we continue to prioritize the civilian telecommunications sector as a core pillar of our satellite communications strategy, alongside our focus on Aerospace and Defense. ~~Contractors~~Our efforts in this sector center around three key areas: satellite-enabled mobile backhaul to support the expansion of 5G and future 6G networks; satellite-based Business Continuity Planning (BCP) to ensure service continuity during disruptions; and comprehensive network resilience solutions to safeguard connectivity across critical infrastructure. These capabilities position us to meet rising connectivity demands while enhancing the reliability and adaptability of telecommunications systems in both public and private sectors.

~~Militaries, governments~~Mobile ~~and~~Backhaul ~~defense~~via contractors having an existing fleet manned and unmanned platforms already operating in service will require a retrofit solution. For those defense customers who already have manned and unmanned systems in operation with no multi-orbit satellite communications system installed, we aim to offer a retrofit solution, which could be used in addition to or in place of an existing satellite communications system, if any. In most situations, we expect that the fleet owner would be responsible for installing our systems under our supervision, as well as uninstalling any systems they may want to remove. The fleet owner would also be required to purchase the necessary satellite bandwidth from us to provide connectivity to its fleet.Satellite

2The mobile backhaul sector is projected to grow significantly, with revenues expected to increase from $3 billion in 2023 to $25 billion by 2030, representing a compound annual growth rate (CAGR) of 17.6% ~~Line~~(Source: ~~Fit~~NSR ~~solution~~“Wireless ~~for~~Backhaul ~~Defense~~via ~~Contractors~~Satellite, 15th Edition Report”). This growth is driven by the ongoing expansion of 4G and 5G networks, with an estimated 6 to 7 million 4G base stations and 3.8 million 5G base stations already deployed worldwide (Sources: GSMA, Huawei). Similarly, the network resilience sector is forecasted to experience revenue growth from $16.2 billion in 2023 to $33 billion by 2028 (Source: Mordor Intelligence: Network Resilience Market Forecast).

~~Defense contractors~~In ~~manufacturing~~the ~~manned~~rapidly ~~and~~evolving ~~unmanned~~civilian ~~platforms~~telecommunications landscape, tomobile ~~which~~backhaul ~~they~~via ~~want~~satellite tohas ~~add~~become ~~our~~an ~~multi-orbit~~increasingly ~~universal~~critical ~~terminals will require a line-fit solution~~component. InThis ~~most~~technology ~~situations,~~facilitates wethe ~~expect~~reliable ~~the~~transmission of ~~installation~~data ~~would~~between beremote ~~done~~base bystations and the ~~manufacturer~~core ofnetwork, ~~the~~enabling ~~manned~~uninterrupted ormobile ~~unmanned~~connectivity ~~platforms~~ even in ~~production~~areas ~~and~~where ~~certified~~terrestrial infrastructure ~~with~~is ~~the~~limited ~~platform,~~or sounavailable. ~~our~~As ~~systems~~mobile ~~would~~operators bestrive ~~delivered~~ to ~~the~~extend ~~manufacturer~~network ~~upon~~coverage ~~request~~and ofcapacity—particularly ~~the~~in ~~defense contractors~~underserved or ofgeographically challenging regions—the ~~militaries~~demand for flexible, scalable, and ~~governments~~high-performance ~~that~~satellite-based ~~are~~backhaul ~~purchasing~~solutions continues ~~the~~to ~~platforms~~rise.

3We recognize the vital role that mobile backhaul via satellite plays in supporting next-generation mobile networks. ~~Systems~~With ~~Integrator~~the ~~for~~global ~~Militaries~~push toward 5G and the future transition to 6G, ~~Governments~~backhaul capacity and ~~Defense~~resilience ~~Contractors~~are more important than ever. Our satellite communication solutions are designed to complement and enhance terrestrial infrastructure, offering mobile network operators a reliable alternative for expanding their coverage and ensuring service continuity across a wide range of environments.

~~Our customers,~~In ~~militaries~~modern ~~and~~telecommunications ~~governments~~infrastructure, ~~may require custom, proprietary or classified system level integrations on~~ the ~~manned and unmanned~~ ~~platforms~~backhaul ~~onto~~network ~~which~~is ~~they~~essential ~~want~~for ~~our~~delivering ~~communications~~high-capacity ~~solutions~~connectivity tobetween becell ~~installed,~~sites and ~~may~~the ~~request~~core ~~that~~network. weWhile ~~provide~~fiber ~~wrap-around~~optics ~~system integrator~~and ~~services~~microwave tolinks ~~perform~~remain ~~such~~widely ~~installations and integrations. Similarly~~used, ~~some~~satellite oftransmission ~~our~~has ~~defense~~become ~~contractors~~an ~~partners~~increasingly ~~may,~~critical ~~from~~component—not ~~time~~only tofor ~~time, require~~remote ~~additional system integrator support from our team due to the complex design of contemporary manned~~ and ~~unmanned systems. In~~ ~~some~~underserved ~~situations,~~regions webut ~~expect~~also ~~the~~as ~~installation~~part of ~~third-party~~strategic ~~payloads~~backbone ~~onto~~deployments ~~the manned and unmanned systems may still be done by the manufacturer of the manned or unmanned platforms~~ in ~~production,~~broader ~~but~~network ~~with close supervision by and certification by our team~~architectures.

~~Commercial~~Mobile backhaul via satellite has evolved significantly. ~~Aviation~~Although ~~Connectivity~~historically viewed as a last resort by mobile network operators, advancements in satellite technologies—such as high-throughput satellites (HTS), low Earth orbit (LEO) constellations, and ~~Entertainment~~improved ~~Solutions~~network orchestration—have transformed satellite connectivity into a viable, high-performance alternative. Coupled with professional managed services, today’s satellite backhaul solutions are cost-effective, scalable, and capable of supporting the rapid deployment of 4G, 5G, 5G Advanced, and IoT services across diverse geographies.

~~We have been developing two systems which can be offered to the aviation market.~~20

1.In ~~Universal~~addition ~~Terminal for Aviation: Our universal terminals aim~~ to ~~deliver~~enabling acoverage ~~full~~in ~~internet connectivity solution~~ hard-to ~~both commercial airlines and private business jet operators. The universal terminal for aviation~~-reach areas, ~~which we also refer to as the Aerkomm K++ System, will contain antennas for transmission and receiving in the key frequency bands for high-throughput commercial~~ satellite ~~connectivity,~~backhaul ~~called~~plays Kaa ~~and~~vital ~~Ku,~~role ~~which are used by satellites~~ in ~~GEO,~~strengthening ~~MEO~~network ~~and in LEO orbits~~resilience. ~~While~~It weserves ~~aim~~as ~~to deliver~~ a ~~universal~~reliable ~~terminal~~backup ~~for~~or ~~aviation~~supplementary ~~using~~backbone solution ~~only our proprietary technologies~~ in ~~the~~cases ~~medium~~of ~~term,~~fiber inor ~~order~~microwave tonetwork ~~meet customer timelines~~failures, weensuring ~~may~~business ~~also~~continuity ~~source an integrated partner technologies in the short term. All of our universal terminals for aviation will comply with ARINC 791~~ and ~~781~~uninterrupted ~~standards~~service ~~of Aeronautical Radio, Incorporated (ARINC) meeting the necessary design approvals~~delivery.

2.Looking ~~Distributed Content System for Airlines: We have developed an intranet-based wireless connectivity solution~~ahead, ~~which we can also offer to both commercial airlines and to private business jet operators. Our distributed content system for airlines, which we also refer to as~~ the ~~Aerkomm~~mobile ~~AirCinema~~backhaul ~~Cube,~~market ~~will~~via satellite ~~provide~~is ~~passengers~~bolstered ~~access~~by tofactors ~~media~~such content, including movies, videos, music, news feeds, video games, advertising and promotions. It will stream content from an onboard server to existing screens in stalled in the cabin or seats, and/or to passenger mobile devices.as:

24● The increasing number of mobile devices and users

~~Commercial Aviation~~● ~~Connectivity~~The ~~and~~growing ~~Entertainment~~volume ~~market~~of ~~business~~mobile ~~models.~~data traffic

1.● ~~Commercial~~The ~~Airlines~~adoption of 5G and IoT technologies, which require enhanced connectivity solutions

~~Within the~~● ~~commercial~~The ~~aviation~~growing ~~segment,~~demand ~~our main source of revenue is expected to be derived from contracts with commercial airlines~~ for ~~both the~~small ~~sale~~cell ofdeployments our systems—both the universal terminal as well as the distributed content system—as well as subscription-based plans for the bandwidth connectivity from our selected satellite operator partners. We aim to ~~achieve~~improve ~~this~~network ~~with~~coverage both retrofit solutions on commercial aircraft already in operation by airline customers, as well as line-fit solutions for new aircraft being assembled at the different aircraft manufacturers’ facilities prior to delivery to the respective aircraft lessors and ~~airline customers.~~ capacity

~~We already~~● ~~have~~The acontinued ~~definitive~~advancements ~~agreement~~ in ~~place~~satellite ~~with~~technologies ~~our~~and ~~first~~growing ~~commercial~~market airline customer, Hong Kong Airlines (discussed below). We are in advanced discussion with several additional potential customers directly through our corporate network. We cannot give any assurances at this time, however, that we will be able to successfully complete any of these additional discussions.demand

~~We aim~~In toaddition, ~~complete~~the ongoing ~~our~~expansion ~~universal~~of ~~terminal~~5G ~~for~~infrastructure—coupled ~~aviation~~with ~~system~~the ~~approval~~growing bydemand ~~Airbus~~for ~~and~~higher-capacity ~~receiving~~mobile ~~the~~data ~~applicable~~transmission—is ~~airworthiness certifications,~~expected ~~namely~~to further accelerate the ~~European~~need ~~Union~~for ~~Aviation~~satellite-enabled ~~Safety~~connectivity ~~Agency~~solutions. ~~(EASA)~~This ~~and~~is ~~the~~particularly UStrue ~~Federal~~in ~~Aviation~~regions ~~Administration~~where ~~(FAA),~~terrestrial bynetworks are ~~the~~limited ~~last~~or ~~quarter~~economically ofunfeasible, ~~2025. We~~and ~~will~~where ~~then~~advanced besatellite ~~able~~technologies tosuch ~~begin~~as ~~providing~~LEO, ~~our~~MEO, ~~universal~~and ~~terminal~~GEO ~~for~~constellations, ~~aviation~~along ~~systems~~with High-Throughput ~~for~~Satellites ~~installation~~(HTS), oncan ~~commercial~~provide ~~airline~~critical ~~aircraft~~coverage and capacity.

2This momentum reflects a broader trend within the telecommunications industry, where the demand for high-throughput, resilient, and scalable satellite connectivity solutions—driven by technological advancements and the increasing number of satellites launched over the past two years—is continuing to rise. ~~Corporate~~This growth ~~Jet~~is ~~Customers~~expected to accelerate over the next two to three years. In response, we are committed to delivering integrated, end-to-end satellite-based mobile backhaul solutions that complement terrestrial infrastructure and meet the evolving needs of telecom operators and end users.

~~To capitalize~~Mobile onNetwork ~~the~~Operators ~~private~~(MNOs) ~~business~~are ~~aviation~~increasingly shifting ~~market,~~their weview ~~will~~of ~~aim~~satellite toconnectivity—from ~~sell~~a ~~our~~secondary ~~systems~~backup option to ~~corporate~~a ~~jet~~core ~~owners~~element ~~through~~of ~~the~~their ~~Airbus~~network ~~Corporate~~backbone—particularly ~~Jets~~as ~~(ACJ)~~non-terrestrial ~~and~~networks ~~Boeing Business Jets~~ (~~BBJ~~NTNs) ~~programs.~~become Inintegral ~~addition~~ to ~~selling~~5G ~~our~~Advanced ~~systems,~~and wethe ~~will~~future ~~also~~6G ~~aim~~ecosystem. toOur ~~sell~~products toand ~~these~~solutions ~~corporate~~are ~~jet~~designed ~~aircraft~~to ~~owners~~align ~~the~~with ~~bandwidth~~this ~~required~~industry ~~for~~evolution, ~~the~~effectively ~~operation~~addressing ofthe ~~our~~emerging ~~services,~~demands ~~priced~~of onthe ~~a subscription plan basis~~market.

~~We already~~Source: ~~have~~GSMA anIPLOOK ~~agreement~~Satellite inSolution ~~place with our first corporate jet and launch customer, MJet GMBH (discussed below), and we have had advanced~~– ~~discussion~~Satellite with several additional potential customers both directly through our corporate network and through Airbus. We cannot give any assurances at this time, however, that we will be able to successfully complete any of these additional discussions. Backhaul

Sales of our universal terminal for aviation system to the corporate jet market will also require the EASA and FAA certification, which we expect to complete by the last quarter of 2025, as mentioned above.21

3One of the key challenges MNOs currently face is the reliance on bulky and expensive antenna systems. ~~Electric~~Our ~~vertical~~advanced ~~take~~glass semiconductor flat panel antennas offer a compact form factor combined with high throughput performance. These antennas are engineered to support high-~~off~~volume data transmission, making them ideal for both mobile backhaul and ~~landing~~backbone ~~(eVTOL)~~applications. ~~aircraft~~Their streamlined design also enables easier installation on cell sites, providing a practical and efficient solution to a widespread issue in the telecommunications sector.

To In conclusion, the mobile ~~extent~~backhaul ~~that~~via ~~eVTOL~~satellite ~~aircraft~~market ~~become~~presents a ~~real~~significant ~~product~~growth opportunity, weunderpinned ~~aim~~by tothe becontinued inglobal expansion of mobile networks, increased mobile data consumption, and the deployment of next-generation technologies like 5G. As a ~~position~~company, we are strategically positioned to ~~sell~~leverage our ~~solutions~~satellite communications infrastructure to ~~those~~meet ~~companies~~the ~~and~~growing ~~platforms as~~demand ~~well~~for high-performance, scalable backhaul solutions.

~~Commercial~~NTT DoCoMo’s publication, “Research ~~Aviation~~and ~~Business~~Development ~~Solutions~~ for 6G Wireless,” highlights the critical importance of satellite technology in shaping the future of 6G. This strategic focus has been incorporated into both their technical roadmap and investment planning.

~~We can~~ Source ~~provide~~Link: ~~different business solutions to airline customers and business jet operators, all of which generate revenue~~https://www.docomo.ne.jp/27nglish/binary/pdf/info/media_center/event/mwc24/Research_ and_Development_for_6G_Wireless.pdf

~~Retrofit~~We maintain strong collaborative relationships ~~solution~~with ~~for~~strategic ~~Airlines~~partners such as global telecom service providers, equipment manufacturers, and solution integrators.

We aim to offer a retrofit solution to potential commercial airline customers having an existing fleet with aircraft in operation having no satellite communications installed. In most situations, we expect that the fleet owner would be responsible for installing our systems, under our supervision, as well as uninstalling any systems they may want to remove. The fleet owner would also be required to purchase the necessary satellite bandwidth from us to provide connectivity to its fleet.22

~~Line~~Positioned at the ~~Fit~~forefront ~~solution~~of the evolving 5G and 6G ecosystem, we are well-prepared to capitalize on emerging business opportunities, paving the way for a ~~Airlines~~promising future and sustainable revenue growth.

~~We also~~Network ~~aim~~Resilience to offer our multi-orbit universal terminals as a line-fit solution. Under this situation, the installation would be done by the manufacturer of the commercial aircraft and certified with the aircraft, so our systems would be delivered to the manufacturer upon request of the aircraft manufacturer or its customers, either commercial airlines or aircraft lessors, that are purchasing the platforms. The fleet owner would also be required to purchase the necessary satellite bandwidth from us to provide connectivity on its fleet.

25In today’s hyper-connected environment, network resilience has become a top priority across both public and private sectors. The increasing reliance on digital infrastructure for critical services—from defense and transportation to healthcare and finance—means that even short-lived network outages can lead to significant operational, financial, and reputational damage. Recent global events, such as the ongoing Russia–Ukraine conflict, heightened geopolitical tensions, and rising occurrences of cyber threats, have further emphasized the need for robust, fail-safe connectivity solutions that can withstand both intentional attacks and unforeseen disruptions.

~~Our~~As global networks evolve toward 5G, 6G, and beyond, ~~Contracts~~low ~~with~~latency, ~~Commercial~~high ~~Aviation~~reliability, ~~Partners~~and uninterrupted service are no longer optional—they are foundational. Network resilience has therefore become a core design principle in next-generation connectivity architecture. This includes a shift toward decentralized models, integration of intelligent routing, and greater redundancy across communication layers.

~~Airbus~~Technologies like Software-Defined Networking ~~SAS~~(SDN) and Network Function Virtualization (NFV) remain central to enabling dynamic network management. SDN allows centralized, programmable control of network traffic for quick rerouting and mitigation during failures, while NFV facilitates rapid deployment and scaling of virtual network functions in response to real-time conditions. Together, these technologies enable networks to adapt rapidly and continue functioning under stress.

~~On November~~In 30addition, ~~2018,~~the wefusion ~~entered~~of ~~into~~multiple antransport technologies—including ~~agreement~~fiber, ~~with~~high-capacity ~~Airbus SAS (“Airbus”)~~microwave, ~~pursuant~~and tomulti-orbit ~~which~~satellite ~~Airbus~~networks ~~aims~~(LEO, toMEO, ~~develop~~ and ~~certify~~ aGEO)—enhances ~~complete~~network redundancy ~~retrofit~~and ~~solution~~geographic ~~allowing~~reach. ~~the~~The ~~installation~~strategic adoption of ~~our~~edge ~~“AERKOMM~~computing ~~K++”~~also ~~system~~plays ona ~~Airbus’~~pivotal ~~single~~role ~~aisle aircraft~~by ~~family~~minimizing ~~including~~dependency ~~the~~on ~~Airbus A319/320/321~~centralized infrastructure, ~~for~~allowing ~~both~~critical ~~Current~~services ~~Engine~~to ~~Option~~continue ~~(CEO)~~locally ~~and~~even ~~New~~during ~~Engine~~core ~~Option~~network ~~(NEO) models~~outages.

~~We expect~~Governments toand ~~expand~~national ~~our~~security ~~agreement~~agencies ~~with~~around the ~~Airbus~~world toare ~~include~~recognizing ~~other Airbus models including~~ the ~~Airbus~~strategic ~~A330,~~importance ~~A340,~~of ~~A350~~resilient ~~and A380 series~~networks. ~~Airbus would~~Increased ~~then~~investments ~~apply~~are ~~for~~being ~~and~~channeled ~~obtain~~into onmodernizing ~~our~~network infrastructure, ~~behalf~~particularly ain ~~Supplemental~~mission-critical ~~Type~~sectors. ~~Certificate~~This ~~(STC)~~includes ~~from~~collaborative ~~the~~efforts ~~European~~with ~~Aviation~~satellite ~~Safety~~operators ~~Agency,~~to orstrengthen ~~EASA,~~sovereign ascommunication ~~well~~capabilities, assecure ~~from the U.S. Federal Aviation Administration or FAA~~backhaul, ~~for~~and ~~our~~ensure ~~retrofit~~continuity ~~universal~~of ~~terminal~~operations ~~for~~during ~~aviation,~~emergencies or ~~AERKOMM~~natural ~~K++ system~~disasters.

~~Airbus agreed~~As tothe ~~provide~~global usthreat ~~with~~landscape ~~the retrofit solution~~evolves, ~~including~~network resilience ~~the~~is ~~Service~~no ~~Bulletin~~longer ~~and~~simply ~~the~~a ~~material kits including the update of~~ technical ~~and~~ ~~operating~~consideration—it ~~manuals~~is ~~pertaining~~a tocritical ~~the~~enabler ~~aircraft and provision~~ of ~~aircraft~~national ~~configuration control. The timeframe for the completion and testing of this retrofit solution~~security, ~~including~~economic ~~the certification~~stability, ~~is expected to be in the fourth quarter of 2025,~~and ~~although~~societal ~~there is no guarantee that the project will be successfully completed in the projected timeframe~~continuity.

~~Multiple airlines, and in particular aircraft lessors, will accept only Service Bulletins issued by the aircraft manufacturers for the retrofit installation of any system on board their aircraft.~~ Our agreement with Airbus aims to ensure that our system will meet this requirement for aircraft lessors who intend to purchase Airbus aircraft, although it does not guarantee that airlines or aircraft lessors will purchase our AERKOMM K++ system.  Strategy

~~Airbus~~Spotlight: Utilizing Our Universal Terminal for Satellite Communications ~~Interior~~on ~~Services~~ Unmanned Platforms

~~On July~~We ~~24,~~are ~~2020,~~pioneering ~~our wholly owned subsidiary, Aerkomm Malta, entered into an agreement with Airbus Interior Services,~~ a ~~wholly~~breakthrough ~~owned~~in ~~subsidiary~~the application of ~~Airbus~~satellite ascommunication atechnology ~~follow-on~~by toinstalling ~~the~~our ~~agreement~~universal ~~that~~terminals ~~Aerkomm signed with Airbus~~ on ~~November~~unmanned 30aerial, ~~2018. Airbus agreed to develop~~maritime, ~~install~~ and ~~certify~~ ~~the~~land ~~Aerkomm~~vehicles. ~~K++~~Unlike ~~System~~traditional C-band oncommunications, aour ~~prototype~~small ~~A320~~form ~~aircraft~~factor toantenna ~~EASA~~ and ~~FAA~~terminal ~~certification~~aims ~~standards, and Airbus Interior Services agreed~~ to ~~provide~~deliver ~~current~~new ~~cabin~~capabilities ~~upgrade~~and ~~solutions~~performance for ~~Airbus~~unmanned ~~aircraft~~operations with ~~operators~~compelling ~~while~~size, ~~bringing~~weight ~~additional flexibility~~ and ~~reduced lead times to the cabin upgrade process~~power.

under this agreement, Airbus Interior Services will provide and certify, via the Airbus Design Organization Approval process, a complete retrofit solution to develop EASA/FAA certified Service Bulletins, to supply related Aircraft Modification Kits and to install the Aerkomm K++ Connectivity solution on the A320 family of commercial aircraft. This agreement also includes Airbus support for the integration of the Aerkomm K++ System components on the aircraft including ARINC 791 structural reinforcements and related engineering work.23

~~Airbus Interior~~Today: ~~Services will provide support for European National Airworthiness Authorities (NAA) certification as required in addition to~~Challenges ~~EASA~~of ~~certification.~~Current ~~Airbus~~UAV ~~Interior~~Connectivity ~~Services~~with ~~will~~GEO ~~also provide on-site technical support at the Maintenance Repair Organization (MRO) base for the first aircraft retrofit of each new customer.~~Satellites

~~We plan~~While tounmanned ~~install~~platforms ~~the~~have ~~Airbus~~revolutionized ~~Interior~~military operations ~~Services-created~~with ~~Service~~their ~~Bulletin~~versatility and ~~Airbus~~agility, ~~kits~~their ~~for~~reliance ~~the~~on ~~AERKOMM~~connectivity ~~K++~~handoffs ~~retrofit~~between ~~solution~~ground-based ~~first~~line-of-sight onantennas, typically ~~the~~operating ~~Hong~~in ~~Kong~~C-band, ~~Airlines~~and ~~fleet~~Geostationary ofEquatorial 12Orbit ~~Airbus A320 aircraft~~(GEO), ~~following~~or ~~our~~geosynchronous ~~certification~~orbit ~~approval.~~(GSO), ~~With~~satellites ~~this~~present ~~installation,~~several ~~Hong~~challenges ~~Kong Airlines~~that ~~should~~limit ~~become~~their ~~Aerkomm’s~~effectiveness ~~first~~in ~~commercial~~certain ~~airline customer~~scenarios. 

26● Line-of-Sight Limitations: One of the key reasons that satellite communications have been a critical addition to connectivity over the last two decades is to eliminate the reliance on line-of-sight (LOS) communications, not just for take-off and landing, but also for the full mission autonomy. For unmanned platforms without satellite communications, operations are restricted to areas where direct visibility to the base is maintained, limiting their flexibility and operational range as well as their operational altitude. For example, as the UAV flies further away from the base, even if it can maintain a line-of-sight communication link with the base, due to the curvature of the Earth, the UAV will gradually fly at a higher and higher altitude, resulting in limited operational capability, especially for intelligence, surveillance and reconnaissance (ISR) missions where the UAV may need to fly close to the ground for its cameras and sensors to provide intelligence with sufficient resolution to be informative, usable or actionable. For land or maritime platforms, the issue is compounded because the platform is by nature on the surface of the land or sea, and has to overcome unanticipated movement due to the sea or restrictions from overhead canopies or LOS limitations caused by terrain features.

~~Hong Kong~~● ~~Airlines~~ High-Latency Limitations: One of the weaknesses of unmanned platform connectivity over GEO/GSO satellites is the significant latency, estimated at approximately 600 milliseconds, which is too long for example to remotely control a UAV during critical mission phases, such as take-off and landing, evasive maneuvers and, in some cases, very low altitude flight. Although certain unmanned platforms include software features for automatic take-off and automatic landing, most unmanned platforms still rely on line-of-sight antennas for takeoff and landing operations, which pose additional vulnerabilities related to dependency on the ground infrastructure, noted below. The high-latency of the link over GEO/GSO satellites delivers senor data and camera data with approximately a half second of delay, which similarly delays responsiveness to rapidly unfolding situations in the field. In critical moments, such a delay can lead to a loss of the mission or a failure of mission objectives.

~~In June~~● ~~2015~~Dependency on Ground Infrastructure and Ground Crew: The persistent dependency on line-of-sight antennas can require significant numbers of forward-deployed personnel to handle the take-off and landing operations on site, weand ~~entered~~this ~~into~~can aplace ~~master~~more ~~agreement~~personnel ~~with~~in ~~Hong~~the ~~Kong~~literal ~~Airlines~~line ~~Limited~~of fire. Similarly, orif ~~Hong~~the ~~Kong~~line-of-sight ~~Airlines~~antennas are damaged, destroyed or jammed, all unmanned platforms airborne at that time that require line-of-sight communications to ~~install~~land ~~IFEC~~are ~~systems~~likely to be lost. This introduces a single-point-of-failure on the ground infrastructure making the UAV base a high-~~board their~~value ~~aircraft~~target, which puts the ground crew personnel at high risk.

On January 30, 2020, further to the master agreement with Hong Kong Airlines, we signed an agreement with Hong Kong Airlines to provide to Hong Kong Airlines both of its Aerkomm AirCinema and AERKOMM K++ solutions. 24

~~We aim~~● Vulnerability to ~~provide~~Jamming: ~~our~~In ~~universal~~scenarios ~~terminal~~where ~~for~~the ~~aviation,~~gateway orstation ~~AERKOMM~~communicating ~~K++~~to ~~system,~~the ~~for~~GEO/GSO ~~installation~~satellite is disrupted by on-orbit ~~Hong~~jammers ~~Kong~~or ~~Airlines’~~the ~~fleet~~GEO/GSO ofsatellite ~~12 Airbus~~itself ~~A320~~is disabled by terrestrial jammers, the unmanned platform may lose its communication link and 5be ~~Airbus~~rendered ~~A330~~unable to perform its mission effectively. Because a GEO/GSO satellite is geo-~~300~~stationary ~~aircraft~~by asdesign, ~~well~~it asbecomes ~~our~~a ~~AERKOMM~~relatively ~~AirCinema~~easy ~~system~~target for ~~the~~terrestrial ~~Hong~~jamming. ~~Kong~~This ~~Airlines~~dependency ~~Airbus~~on ~~A320~~GEO/GSO ~~aircraft.~~satellites ~~Hong Kong~~introduces ~~Airlines~~multiple ~~aims~~single topoints-of-failure ~~become~~and ~~our~~compromises ~~first~~the ~~commercial~~reliability ~~airliner~~and ~~launch~~resilience ~~customer~~of unmanned platform operations.

~~On November~~● ~~17,~~Mission ~~2021,~~Disruption: weThe ~~signed~~loss aof ~~new~~communication ~~agreement~~link ~~with~~between ~~Hong~~the ~~Kong~~unmanned ~~Airlines~~platform ~~Ltd~~ and ~~Ejectt~~the ~~Inc.~~GEO/GSO ~~(formerly~~satellite ~~known~~not asonly ~~Yuanjiu~~halts ~~Inc.).~~ongoing ~~Based~~missions onbut also jeopardizes the ~~long-term~~ ~~relationship~~safety and ~~anticipated~~security ~~further~~of ~~co-operation~~the ~~between~~platform ~~Aerkomm~~ and ~~Hong~~its ~~Kong~~payload. ~~Airlines,~~Without wereal-time ~~agreed~~communication tocapabilities, ~~aim~~the toplatform ~~provide~~may tobe ~~Hong Kong~~unable ~~Airlines~~to areceive ~~LEO-compatible~~commands ~~universal~~or ~~for~~transmit ~~aviation~~critical ~~with~~data ~~LEO~~leading ~~constellation service when available. We will aim~~ to ~~deliver~~mission ~~our~~failure ~~universal terminal~~and ~~for~~potential ~~aviation~~loss ~~with~~of ~~a full certified Service Bulletin by Airbus~~assets.

~~Our universal~~While ~~terminal~~unmanned ~~for~~platforms ~~aviation~~have ~~aims~~brough compelling capabilities to ~~introduce~~militaries ~~high-speed~~and ~~internet~~governments ~~access~~over to the ~~seatback~~last ~~screens~~two ofdecades, ~~Hong~~in ~~Kong~~the ~~Airlines’~~last ~~Airbus A320~~two ~~aircraft,~~years ~~connected~~with ~~via~~ the ~~distributed~~conflict ~~content~~involving ~~system~~Ukraine, ~~for~~the urgent ~~airlines.~~need ~~Instead~~for of the ~~traditionally~~capabilities ~~preloaded and fixed selection~~ of ~~in-flight~~unmanned ~~entertainment,~~platforms ~~passengers~~to ~~would~~continue ~~have access~~ to ~~high-speed~~evolve ~~internet~~has ~~steaming~~become ~~services for videos, music and social media~~evident.

~~In order~~ Aerkomm’s toSolution: ~~install the AERKOMM K++ system on the Hong Kong Airlines aircraft, we will have to obtain local approval for the AERKOMM K++~~“Multi-Path ~~system~~^6” ~~from the Hong Kong Civil Aviation~~ (~~HKCAD).~~domain, ~~This~~orbit, ~~HKCAD local approval will be based on our obtaining the Airbus Service Bulletin~~beam, ~~which~~ ~~we expect to receive from Airbus~~carrier, ~~together with EASA certification~~frequency, ~~by sometime in 2025 or 2026.~~satellite)

~~Once we~~We ~~receive~~aim ~~the~~to ~~Airbus~~offer ~~Service~~unparalleled ~~Bulletin~~flexibility ~~and~~to ~~the~~defend unmanned ~~EASA~~platforms ~~certification,~~by ~~jointly~~enabling ~~with~~communication ~~the~~across ~~support~~six ofdimensions: ~~Airbus~~domain, weorbit, ~~will~~beam, becarrier, ~~able~~frequency, and satellite. This innovative approach aims to ~~apply~~allow users to ~~the~~establish multiple communication paths simultaneously, enhancing redundancy, resilience, and adaptability ~~HKCAD~~in ~~for~~dynamic ~~the~~operational ~~required~~environments, ~~local~~while ~~approval~~also offering complementary functionality such as jamming.

~~Other Airline~~● ~~Partners~~Enhanced Connectivity: Our universal terminal for defense aim to enable unmanned platforms to establish communication links with non-geosynchronous satellite constellations (NGSO), such as those operating in LEO or MEO, which are less susceptible to jamming due to their proliferation in the sky. We aim to use this groundbreaking feature to allow for remote control of seamless takeoff and ~~Business~~landing ~~Jet~~operations ~~Prospective~~of ~~Customers~~UAVs over NGSO satellites, which have significantly lower latency than GEO/GSO satellites, thus eliminating the limitations imposed by traditional line-of-sight communication methods, overcoming the high latency issues of GEO/GSO satellites and reducing the need for forward deployed staff.

~~We are actively working with prospective airline customers to provide them with the universal terminal for aviation, or our AERKOMM K++ system.~~ 25

~~In connection~~● ~~with~~Resilient ~~the~~Communication: ~~Airbus~~In ~~project,~~the weface ~~have also identified owners~~ of ~~Airbus~~adversary ~~Corporate~~actions ~~Jet,~~such ~~or ACJ,~~ as ~~potential~~satellite ~~customers~~jamming, of our ~~AERKOMM K++~~technology ~~system.~~aims ~~To capitalize on this additional market, we plan~~ to ~~sell~~ensure ~~our~~mission ~~AERKOMM~~continuity ~~K++~~and ~~system~~resilience ~~hardware~~through ~~for~~multi-beam ~~installation on ACJ corporate jets~~ and ~~provide~~multi-orbit connectivity. ~~through~~By ~~subscription-based~~connecting ~~plans.~~to ~~This~~different ~~new~~friendly ~~corporate~~satellites ~~jet~~simultaneously, ~~market~~our ~~could~~antennas ~~generate~~aim ~~additional~~to ~~revenue~~provide redundancy and ~~income for~~alternate ~~our~~communication ~~company. As discussed below~~paths, weenabling ~~have~~unmanned ~~entered~~platforms ~~into~~to anmaintain ~~agreement~~operational ~~with~~effectiveness ~~Mjet~~even ~~GMBH,~~in anchallenging ~~Airbus ACJ customer~~environments.

27● Mission Continuity: With our universal terminal for defense onboard, unmanned platforms could seamlessly transition between different satellite orbits, such as GEO, MEO and LEO, or between different satellites in the same orbit or constellation, in the event of satellite jamming or disruption. This design aims to ensure uninterrupted mission execution and real-time data transmission, enhancing situational awareness and operational flexibility.

~~While, to~~● ~~date,~~Secure weCommunication: ~~have~~Leveraging ~~been~~advanced ~~concentrating~~features onsuch ~~Airbus~~as ~~customers~~Low inProbability ~~view~~ of ~~our~~Intercept ~~existing~~(LPI) ~~agreement~~and ~~with~~Low ~~Airbus,~~Probability ~~our~~of ~~current~~Detection ~~plan~~(LPD), isour tomulti-beam ~~also~~antennas ~~begin marketing~~aim to ~~Boeing~~keep ~~aircraft~~unmanned ~~customers~~platforms and ~~Boeing~~other ~~Business~~manned ~~Jets~~platforms ~~(BBJ)~~such ~~customers~~as, ~~and~~ships, weairplanes, ~~intend~~and toground ~~acquire~~command ~~the~~centers ~~necessary~~securely ~~certification of~~connected. ~~our~~Our ~~AERKOMM~~approach ~~K++~~aims ~~system~~to ~~equipment~~ensure ~~for~~that ~~the~~critical ~~different~~communication ~~Boeing~~remains ~~aircraft~~confidential ~~models,~~and ~~with~~protected afrom ~~particular~~hostile ~~focus~~interference, onenhancing ~~the~~overall ~~Boeing~~mission ~~B737~~security ~~aircraft~~and ~~family~~effectiveness.

~~We aim~~● toJamming ~~enter~~Capabilities: ~~into~~As ~~business~~an ~~agreements~~additional ~~with~~feature, ~~additional~~we ~~airline~~aim ~~partners~~to ~~and~~enable ~~corporate~~one ~~jet~~or ~~owners,~~more ~~which~~of ~~would~~the ~~allow~~multiple beams of our universal ~~terminals~~ terminal for ~~aviation~~defense to be ~~installed~~used ~~together~~in ~~with~~a ~~our~~jamming ~~bandwidth~~mode ~~services~~to ~~provided,~~disrupt onadversary ~~additional~~communications ~~fleet~~or ~~aircraft~~operations. ~~Under~~Due ~~any~~to ~~such~~the ~~agreements, we~~high ~~expect~~transmit ~~that~~power ~~the~~capability ~~airlines~~that ~~will~~we ~~commit~~aim to ~~have~~deliver with our ~~equipment~~multi-orbit ~~installed~~system ondesign, ~~some~~our antennas aim to provide sufficient signal strength to disrupt or impair adversary communications and operations across domains: satellites in all ~~the~~orbits ~~aircraft~~and ~~they~~airborne, ~~operate~~maritime and land-based manned and unmanned platforms. WeFor ~~cannot~~example, ~~guarantee that~~our weapproach ~~will~~aims beto ~~able~~make our antennas capable to ~~enter~~disrupt ~~into~~the ~~any~~guidance ~~such~~navigation ~~additional~~and ~~agreements~~control systems of adversary manned and unmanned platforms, potentially providing a nimble and cost-effective approach to handling inbound ballistic and drone-based projectiles to complement traditional missile defense systems in the future.

~~Other~~Our universal terminal ~~Agreements~~for defense aims to drive a paradigm shift in unmanned platform satellite communication, offering unparalleled connectivity, resilience, and ~~Understandings~~security ~~with~~for mission-critical operations. With our ~~Business~~innovative ~~Partners~~solution, unmanned platform operators can confidently navigate complex operational environments, ensuring continuous communication and mission success.

~~Mjet Definitive~~With ~~Agreement:~~our Onextensive ~~March~~experience 6,in ~~2019,~~satellite ~~we signed a General Terms Agreement (GTA) with Mjet GMBH, or Mjet, a corporate jet owner~~communication ~~operating an Airbus ACJ A319 based in Vienna~~technology, ~~Austria. On June 11, 2019,~~ we ~~converted~~are ~~this~~uniquely ~~GTA~~positioned ~~into~~to aserve ~~definitive~~as ~~agreement with Mjet, and on June 12, 2019, Mjet placed~~ a ~~first~~systems ~~purchase~~integrator ~~order~~for ~~with~~defense ~~Aerkomm~~payloads. ~~The~~By ~~purchase~~leveraging ~~order, which remains valid, provides for the provision, installation, testing and certification of~~ our ~~AERKOMM~~hardware ~~K++ system equipment, including the Airbus Service Bulletin~~ and ~~associated material~~software ~~kit and related connectivity services~~platforms, onwe anhave ~~Mjet Airbus ACJ A319 aircraft under~~ the ~~supervision~~capability ofto ~~Airbus.~~seamlessly ~~Assuming~~integrate ~~the~~onboard ~~installation, testing~~sensor payloads and ~~certification~~other ~~of our AERKOMM K++ system on the Mjet A319 (which is expected by sometime in 2025 or 2026) is successful, something we cannot guarantee at this time, Mjet will pay us a one~~mission-~~time~~specific ~~fee for our~~ equipment ~~and a monthly fee for our connectivity services~~, ~~and~~ weensuring ~~will also aim to begin charging Mjet for the bandwidth required to use the AERKOMM K++ system services. Assuming the success of this installation~~interoperability, ~~Mjet will likely become the first recurring payment customer of our AERKOMM K++ system as well as being the launch~~ ~~customer of our Aerkomm K++ solution.  We cannot assure you~~compatibility, ~~however,~~and weperformance ~~will~~optimization bein ~~able~~complex tooperational ~~deliver on the agreement with Mjet, or that the Mjet GTA will lead to any Aerkomm product sales~~environments.

~~Vietjet Air:~~Our OnSolutions ~~October 25, 2021, we signed an agreement with Vietjet Air (“Vietjet”) to provide them with our Aerkomm AirCinema In-Flight Entertainment~~ and ~~Connectivity~~Business (“IFEC”) solutions. Under the terms of the agreement, which remains valid, we aim to provide to Vietjet our Aerkomm AirCinema Cube IFEC system for installation on Vietjet’s fleet of Airbus A320, A321 and Airbus A330-300 aircraft. We cannot assure you, however, we will be able to deliver on the agreement with Vietjet, or that the Vietjet agreement will lead to any Aerkomm product sales.Models

~~Thai Smile~~Defense ~~MOU:~~& On October 19, 2021, which remains valid until October 2024, we entered into a nonbinding memorandum of understanding, which we refer to as the Thai Smile MOU, with Thai Smile Airways Company Limited, a company organized under the laws of Thailand, pursuant to which the parties intend to collaboratively market and provide their products and services to passengers to the Thai-based airline fleet.Aerospace

~~Under the~~Our ~~terms~~Defense ofConnectivity the Thai Smile MOU, which remains valid, the parties intend to develop, install and operate in-flight connectivity systems onboard the Thai-based airline fleet and provide related services to its passengers. We cannot assure you, however, we will be able to enter into a definitive agreement with Thai Smile, or that the Thai Smile MOU will lead to any Aerkomm product sales.Solutions

~~Contracts~~Our universal terminal for defense aims to drive ~~with~~a ~~Satellite~~paradigm ~~Partners~~shift in unmanned platform satellite communication, offering unparalleled connectivity, resilience, and security for mission-critical operations. With our innovative solution, unmanned platform operators can confidently navigate complex operational environments, ensuring continuous communication and mission success.

~~SES~~With our extensive experience in satellite communication ~~Agreement:~~technology, we are uniquely positioned to serve as a systems integrator for defense payloads. By leveraging our hardware and software platforms, we have the capability to seamlessly integrate onboard sensor payloads and other mission-specific equipment, ensuring interoperability, compatibility, and performance optimization in complex operational environments.

~~Aerkomm and~~We ~~New~~are ~~Skies~~currently ~~Satellites~~developing ~~B.V.~~three ~~(“SES”),~~solutions ~~a Dutch company that operates a constellation of satellites in medium-earth orbit~~which ~~(MEO)~~can ~~and~~be ~~geostationary-earth~~offered ~~orbit (GEO), entered into a master services agreement dated January 19, 2022 and under such agreement has entered into multiple service orders pursuant~~ to ~~which SES has provided~~ the ~~Company~~defense ~~terminal equipment and satellite connectivity and other related services~~market.

Aerkomm and SES also entered into a non-binding cooperation agreement dated January 10, 2022 (see Exhibit No. 10.77) in which the parties confirmed their intent to explore opportunities to collaborate with respect to technical and commercial matters making use of their combined service offerings.26

We1. Universal Terminal for Defense: Our universal terminals for defense aim to ~~expand~~deliver ~~its~~a ~~technical~~full ~~and~~satellite ~~commercial~~connectivity ~~collaboration~~solution ~~with~~to ~~SES~~both inISR ~~the~~and ~~future~~CCA UAVs. WeThe ~~cannot~~universal ~~assure~~terminal for ~~you,~~defense ~~however~~UAVs, wemay ~~will~~contain beantennas ~~able~~for totransmission ~~enter into~~and ~~additional~~receiving ~~material~~in ~~definitive~~one ~~agreements~~or ~~with~~more ~~SES~~of the key frequency bands for high-throughput satellite connectivity for defense, orprincipally ~~that~~Ka ~~our~~and ~~relationship~~Ku, ~~with~~which ~~SES~~are ~~will~~used ~~lead~~by tosatellites ~~any~~in ~~Aerkomm~~GEO, ~~product~~MEO ~~sales~~and in LEO orbits.

28The building blocks of our multi-orbit universal terminals are modular tiles. We can implement terminals of different sizes and capacity without material additional engineering, by combining more or fewer tiles based on the requirements of the mission or the program. While we aim to deliver a universal terminal for defense UAVs using only our proprietary technologies in the medium term, in order to meet customer timelines, we may also source and integrated partner technologies in the short term. The requirements for defense programs and missions may differ from the requirements for commercial products. Our universal terminals for defense UAVs may not be required to comply with ARINC 791 and 781 standards of Aeronautical Radio, Incorporated (ARINC), but will meet the necessary design approvals of our customers and their programs. We aim to also be able to deliver universal terminals for unmanned systems across domains of air, land, and sea, but our initial focus is on airborne platforms.

~~Civilian~~ 2. Satellite Communications for Terrestrial ~~Telecommunications~~and ~~Solutions~~Maritime Installations: Our customers in the defense sector may require comprehensive communications solutions across domains of land, air and sea. We aim to provide end-to-end solutions for our customers, which means that we may be required to deliver satellite communications solutions for both stationary and mobile ground-based installations, such as control cars and command posts, as well as maritime based installations.

WeThe satellite communications ~~are~~for ~~developing~~terrestrial ~~two~~and ~~solutions~~maritime installations may contain antennas for transmission and receiving in one or more of the key frequency bands for high-throughput satellite connectivity for defense, principally Ka and Ku, which ~~can~~are beused ~~offered~~by satellites in GEO, MEO and in LEO orbits. We aim to deliver universal terminals using only our proprietary technologies in the ~~civilian~~medium ~~telecommunications~~term ~~market~~across all domains of land, air and sea, in order to meet customer timelines. Given that ground-based and sea-based installations typically have lesser requirements for size, weight and power, we may also source and integrated partner technologies in the short term.

1.Requirements ~~Universal Terminal~~ for ~~Network~~defense ~~Resiliency:~~programs ~~Our universal terminals for network resiliency aim to deliver a mobile backhaul satellite connectivity solution to both 4G LTE~~ and missions ~~5G mobile networks, which~~ may be ~~treated~~materially assimilar ato ~~“backup”~~requirements ~~system or a “primary” system. The universal terminal~~ for ~~network~~commercial ~~resiliency~~products, ~~may~~therefore ~~contain~~our ~~antennas for transmission and receiving in one or more of the key frequency bands for high-throughput~~ satellite ~~connectivity~~communications for ~~defense,~~terrestrial ~~principally Ka~~ and maritime ~~Ku,~~installations which are used by satellites in GEO, MEO and in LEO orbits. We aim to deliver a universal terminal for network resiliency using only our proprietary technologies in the medium term, in order to meet customer timelines, we may ~~also~~leverage ~~source~~dual-use ~~and integrated partner~~ technologies inthat ~~the~~are ~~short~~already ~~term.~~certified ~~The requirements~~ for ~~network~~commercial resiliency typically require earth station licenses, such as those granted by the US Federal Communications Commission (FCC), the International Telecommunications Union (ITU) or the regional or national ministries of communications in each countryuse. Our universal terminals for network resiliency may be required to comply with FCC, ITU or national regulations, and will be required to meet the necessary type approvals and certifications incumbent on both electronic devices and radiofrequency devices. In some cases, we may pursue such licenses in partnership with our customer, and in other cases we may pursue such licenses directly on a standalone basis.

23. ~~Universal~~Systems ~~Terminal~~Integration for ~~Non-Terrestrial~~Defense ~~Networks (NTN)~~Platforms: Our multi-orbit universal terminals ~~for~~provide ~~non-terrestrial~~communications ~~networks (NTN) aim to deliver a high-throughput mobile backhaul satellite connectivity~~ solution tothat ~~both 5G Advanced and 6G mobile networks, which~~ we expect ~~will~~to ~~typically~~ be acritical ~~“primary” system providing a satellite communications backbone~~ to the ~~next~~operations ~~generation~~ of ~~mobile~~both ~~networks.~~ISR ~~The~~and ~~universal terminal for non~~CCA-~~terrestrial~~type missions. ~~networks,~~Our ~~may~~satellite ~~contain~~communications ~~antennas~~systems ~~for~~will ~~transmission~~therefore ~~and~~typically ~~receiving~~need into ~~one~~be orintegrated ~~more~~with ofonboard ~~the~~sensor ~~key frequency bands for high-throughput satellite connectivity for defense~~payloads, ~~principally Ka~~ and ~~Ku,~~other payloads ~~which~~required ~~are used~~ by ~~satellites~~certain incustomer ~~GEO~~missions, MEO and in LEO orbits. The key difference between our universal terminals for network resiliency and our universal terminals for NTN will be the throughput, which will be a function of both the performance of our glass semiconductor antennas as well as ~~the performance of our software-defined modems. We aim to deliver universal terminals using only our proprietary technologies in the medium term~~guidance, innavigation ~~order to meet customer timelines. However, as mobile networks typically have lesser requirements for size, weight~~ and ~~power,~~controls we(GNC) ~~may also source and integrated partner technologies in the short term~~systems. We expect regulatory requirements for NTN applications to be materially similar to requirements for network resiliency applications, our universal terminals for NTN will likely require similar levels of licensing and type certifications, often on a country-by-country basis, as noted above.

29We expect that we may have the opportunity to expand our services beyond providing the communications solution to serving as an end-to-end systems integrator for the payloads that we are already connecting to through our hardware and our software. At this time, we do not expect to have the opportunity to serve as a system integrator for platforms that do not already include or require our communication systems and our value-added resale of satellite bandwidth, but we will remain open to requests from our present and future customers and partners to fill such role.

~~Civilian Telecommunications~~Defense Connectivity Solutions market ~~business models~~.

1. ~~Hardware~~Communications ~~Leasing~~for ~~plus~~Manned ~~Value-added~~and Unmanned ~~Reseller of Bandwidth model~~Systems

Within the ~~civilian~~defense ~~telecommunications~~ segment, our main source of revenue is expected to be derived from contracts with ~~mobile~~militaries, ~~network~~governments ~~operators or~~and ~~with~~defense ~~mobile~~contractors ~~network equipment providers~~ for both the ~~leasing~~sale of our systems—the ~~universal terminal for network resilience and~~ ~~the~~ universal terminal for ~~NTN~~defense—as well as subscription-based plans for the bandwidth connectivity from our selected satellite operator partners~~, where we are the distribution partner~~.

We aim to achieve this with ~~hardware~~both ~~leasing~~retrofit solutions~~, which will provide more consistent recurring revenue, while we also aim to ensure~~ ~~that~~on ~~our~~manned ~~customers~~and ~~receive~~unmanned ~~the~~defense ~~latest~~platforms ~~updates~~already toin ~~our~~operation ~~technology~~being tomaintained ~~ensure~~by ~~they~~militaries ~~are~~and ~~receiving~~governments, ~~the~~as ~~best~~well ~~service~~as toline-fit ~~meet their requirements.~~solutions Tofor ~~the~~new ~~extent~~manned ~~that~~and ~~this~~unmanned ~~model~~systems ~~would~~being ~~require~~assembled aat ~~significant~~the ~~amount~~different ofdefense ~~working~~contractors’ ~~capital,~~facilities weprior ~~would~~to ~~aim~~delivery to ~~secure~~the ~~through a partnership with~~respective ~~a leasing company or an asset-based financing partner~~militaries.

We successfully secured the first stage bid for the verification project titled “Emerging Technology Application for Enhancing Communication Network Resilience in Emergencies or War” from the Taiwan Telecom Technology Center (TTC) on August 9, 2023. This extensive network setup is designed to validate the effectiveness of the heterogeneous resilient network architecture we proposed.27

We ~~are~~ ~~also~~already inhave ~~discussion~~an ~~with~~agreement ~~mobile~~in ~~network~~place ~~operators~~with ~~and selected key vendors to the mobile network operator ecosystem to secure~~ our first ~~commercial~~classified ~~contracts~~defense indevelopment ~~this~~partner ~~segment. In parallel, we have kicked off discussions with leasing companies~~ and ~~financing~~customer ~~partners~~ to ~~secure~~develop ~~the~~a ~~necessary~~first-of-its-kind ~~working~~satellite ~~capital~~communications architecture for ~~this business model. We cannot give any assurances at this time, however, that we will be~~unmanned ~~able~~aerial tovehicles ~~successfully~~(UAVs) ~~complete~~engaged ~~any~~in ofclassified ~~these~~ISR ~~additional discussions~~missions.

2We are in advanced discussion with this development partner and customer to expand the engagement based on successful technology demonstrations in 2023 and 2024. ~~Hardware~~We ~~Sale~~are ~~plus~~also ~~Value~~directly engaged with several additional potential partners developing unmanned platforms for ISR and CCA-~~added~~type ~~Reseller~~missions regarding implementing our connectivity solutions as part of ~~Bandwidth~~their ~~model~~programs. We cannot give any assurance at this time, however, that we will be able to successfully complete any of these additional discussions.

~~To manage our working capital balance, we may not be able to provide a hardware leasing model to our customers at this time~~2. InTerrestrial the short term, our main source of revenue may be derived from contracts with mobile network operators or with mobile network equipment providers for both the sale of our systems—the universal terminal for network resilience and ~~the~~Maritime ~~universal terminal for NTN—as well as subscription-based plans for the bandwidth connectivity from our selected satellite operator partners, where we are the value-added reseller.~~Installations

~~While~~To capitalize on the increasing demand for satellite ~~under~~communications ~~this~~for ~~model~~terrestrial and maritime installations for militaries and governments, we will ~~not~~aim ~~receive~~to assell ~~much~~or ~~recurring~~to ~~revenue~~integrate end-to-end satellite communications systems to militaries, ~~until~~governments weand ~~can~~defense ~~secure~~contractors. ~~the~~In ~~appropriate~~addition ~~leasing~~to orselling ~~financing~~integrated ~~partner~~end-to-end ~~this~~satellite communications systems, we will bealso aim to sell to these military and government customers the ~~most~~bandwidth ~~likely~~required ~~model~~for tothe beoperation ~~implemented~~of our services, priced on a subscription plan basis.

~~As noted~~In ~~above~~some cases, ~~while~~ we ~~are~~expect inthat ~~discussions~~the toterrestrial and ~~secure~~maritime ~~our~~installations ~~first~~may ~~commercial~~be ~~contract~~components inof ~~this~~a ~~segment~~wholistic end-to-end satellite communications solution, but in other cases we ~~cannot~~expect that ~~give~~militaries ~~any~~and ~~assurances~~government atcustomers ~~this time,~~may ~~however,~~contract ~~that~~for westandalone ~~will~~terrestrial beor ~~able~~maritime solutions, such as to ~~successfully~~provide ~~complete~~connectivity to ~~any~~individual ofships ~~these~~or ~~additional~~command ~~discussions~~posts.

3.We ~~Revenue~~already ~~Share~~have an agreement in place with ~~Satellite~~our ~~Operators~~first onclassified ~~Bundled~~defense ~~Solution~~development partner and customer for maritime and terrestrial installations as part of our end-to-end solution to support the classified ISR missions mentioned above. We also already are in discussions for standalone terrestrial customers. We cannot give any assurance at this time, however, that we will be able to successfully complete any of these additional discussions.

Our customers, principally mobile network operators, may require a bundled solution with a single charge either to Aerkomm, if we are providing a multi-orbit and multi-carrier connectivity solution, or to the selected satellite operator partner, in which case the customer would be charged a monthly fee to cover the bundle of both the universal terminals installed and the satellite bandwidth required or used3. In ~~these~~Systems ~~situations,~~Integrator we will agree a revenue sharing formula between ourselves and the selected satellite operators who are providing bandwidth to the customer through our system. Due to the small size, weight and power of our universal terminals, we aim to make it economical for ~~our customers to procure satellite communications solutions at more sites across and within their networks than would be reasonable,~~Manned or even practical, using a larger, less performant terminal. Therefore, by enabling net new site-acquisition for satellite communications, we aim to receive a commensurate share of the revenue generated from our customers at those sites that are enabled by the size, weight, power and ~~performance~~Unmanned ~~of our universal terminals.~~Platforms

~~As noted~~Within ~~above,~~the ~~while~~defense wesegment, ~~are~~as inan ~~discussions~~additional service to ~~secure~~the customers interested in installing our ~~first~~satellite ~~commercial~~communications ~~contract~~solutions inon ~~this~~their ~~segment~~manned and unmanned platforms, we ~~cannot~~are ~~give~~also ~~any~~able to ~~assurances~~support atintegration ~~this time~~with onboard sensor payloads, ~~however~~and other payloads required by certain customer missions, ~~that~~as well as guidance, navigation and controls (GNC) systems, which we ~~will~~are bealready ~~able~~connecting to ~~successfully~~through ~~complete~~our ~~any~~hardware ofand ~~these~~our ~~additional discussions~~software.

~~Our Contracts~~We already have an agreement in place with ~~Civilian~~our first ~~Telecommunications~~classified ~~Partners~~defense development partner and customer for a certain level of systems integrator support for the UAV engaged in the classified ISR missions mentioned above.

~~In Taiwan,~~We ~~the~~also ~~Company’s~~already ~~subsidiary,~~are ~~Aerkomm~~in ~~Taiwan~~discussions ~~Inc.,~~for inan ~~collaboration~~ agreement with ~~its~~another ~~exclusive~~systems ~~agent,~~integration ~~EJECTT~~partner ~~Inc.,~~expressing ~~successfully~~interest ~~secured the~~in ~~first~~our ~~stage~~universal ~~bid~~terminal for ~~the~~defense ~~verification~~as ~~project~~well ~~titled~~as ~~“Emerging~~our ~~Technology~~wrap-around ~~Application~~ services for ~~Enhancing~~system ~~Communication~~integration ~~Network~~with ~~Resilience in~~other ~~Emergencies~~payloads. orWe ~~War”~~cannot ~~from~~give ~~the~~any ~~Taiwan~~assurance ~~Telecom~~at ~~Technology~~this ~~Center~~time, ~~(TTC) on August 9~~however, ~~2023.~~that ~~The extensive network setup~~ we ~~proposed, “Asynchronous~~will ~~Satellite~~be ~~Network~~able ~~Leasing and Transmission Service Procurement Project,” is designed~~ to ~~validate~~successfully ~~the effectiveness~~complete any of ~~the~~these ~~heterogeneous~~additional ~~resilient network architecture~~discussions.

30Our Defense Business Solutions

~~Acquisitions~~We can provide different business solutions to defense contractors, militaries and ~~Dispositions~~governments:

~~In our fiscal year 2023, we announced the acquisition of Mesh Tech, a developer of distributed computing solutions~~1. ~~This~~Retrofit ~~acquisition~~solution ~~enhanced our software capabilities and distributed computing portfolio~~ for ~~both the Aerospace & Defense and Civilian Telecommunications segments~~Militaries, ~~which~~Governments ~~we expect to drive both customer acquisition~~ and ~~retention~~Defense ~~in the future.~~Contractors

WeMilitaries, governments and defense contractors having an existing fleet manned and unmanned platforms already operating in service will require a retrofit solution. For those defense customers who already have manned and unmanned systems in operation with no multi-orbit satellite communications system installed, we aim to ~~continue~~offer toa ~~evaluate~~retrofit ~~opportunities~~solution, towhich ~~advance~~could ~~our~~be ~~strategy~~used ~~and~~in addition to ~~better~~or ~~serve~~in place of an existing satellite communications system, if any. In most situations, we expect that the fleet owner would be responsible for installing our ~~customers~~systems ~~and~~under our ~~partners~~supervision, ~~through~~as ~~both~~well ~~acquisitions~~as uninstalling ~~and~~any ~~dispositions~~systems inthey may want to remove. The fleet owner would also be required to purchase the ~~future~~necessary satellite bandwidth from us to provide connectivity to its fleet.

~~Research & Development (R&D)~~ 28

The industries in which we compete are subject to rapid technological developments, evolving standards, changes in customer requirements and continuing developments in the communications and networking environment2. ~~Our~~Line ~~continuing~~Fit ~~ability~~solution to adapt to these changes, and to develop innovative satellite and communications technologies, and new and enhanced products and services, is a significant factor in maintaining or improving our competitive position and our prospects for ~~growth.~~Defense Contractors

WeDefense contractors manufacturing manned and unmanned ~~continue~~platforms to ~~make~~which ~~significant~~they ~~investments~~want into ~~next~~add our multi-~~generation~~orbit ~~technologies~~universal ~~and~~terminals ~~communications~~will ~~product~~require ~~and~~a ~~services~~line-fit ~~development~~solution. WeIn ~~conduct~~most situations, we expect the ~~majority~~installation would be done by the manufacturer of ~~our~~the ~~R&D~~manned ~~activities~~or unmanned platforms in~~-house~~ production and ~~have~~certified ~~R&D~~with the platform, so our systems would be delivered to the manufacturer upon request of the defense contractors or of the militaries and ~~engineering~~governments ~~staff~~that are purchasing the platforms.

~~Focused, efficient investments in research and development are important to our future growth and competitive position in the marketplace~~3. ~~Our product~~Systems ~~development~~Integrator ~~activities~~for ~~focus on products that we consider viable revenue opportunities to support all of our segments. Our research~~Militaries, ~~and~~Governments ~~development efforts are directly related to timely development of new~~ and ~~enhanced~~Defense ~~services and related products that are central to our core business strategy and our ability to drive profitable and sustainable growth.~~Contractors

~~The~~Our customers, militaries and governments, may ~~industries~~require incustom, ~~which~~proprietary weor ~~compete~~classified ~~are~~system ~~subject~~level tointegrations ~~rapid~~on ~~technological~~the ~~developments,~~manned ~~evolving~~and ~~industry~~unmanned ~~standards,~~platforms ~~changes~~onto inwhich ~~customer~~they ~~requirements,~~want our communications ~~and~~solutions ~~new~~to ~~service~~be installed, and ~~product~~may ~~introductions~~request ~~and~~that ~~enhancements.~~we Asprovide awrap-around ~~result,~~system ~~our~~integrator ~~success~~services ~~depends~~to inperform ~~part~~such ~~upon~~installations ~~our~~and ~~ability~~integrations. Similarly, onsome aof ~~cost-effective and~~our ~~timely~~defense ~~basis~~contractors partners may, tofrom ~~continue~~time to ~~enhance~~time, ~~our~~require ~~existing~~additional ~~services~~system ~~and~~integrator support from our team due to ~~develop~~the ~~and~~complex ~~introduce~~design ~~new~~of ~~products~~contemporary manned and ~~services~~unmanned ~~that~~systems. ~~improve~~In ~~performance~~some situations, we expect the installation of third-party payloads onto the manned and ~~meet~~unmanned ~~customers’~~systems ~~operational~~may still be done by the manufacturer of the manned or unmanned platforms in production, but with close supervision by and ~~cost~~certification ~~requirements~~by our team.

~~Our current~~Commercial ~~research~~Aviation ~~and~~Connectivity ~~development activities relate to antennas, modems, distributed computing,~~ and ~~multi-orbit~~Entertainment service development, enhancing our universal terminal product lines with new features desired by our customers, and integrating available geostationary orbit (GSO) and emerging non-geostationary satellite orbit (NGSO) products and services into our overall satellite communications offering.Solutions

~~Intellectual Property~~We ~~Rights~~have been developing two systems which can be offered to the aviation market.

We1. ~~currently~~Universal ~~hold~~Terminal ~~intellectual~~for ~~property~~Aviation: ~~rights~~Our ~~relating~~universal terminals aim to ~~various~~deliver ~~aspects~~a offull ~~our~~internet ~~hardware~~connectivity ~~products,~~solution ~~software~~to both commercial airlines and ~~services~~private business jet operators. WeThe ~~believe~~universal ~~that our~~terminal ~~ability~~for toaviation, ~~compete~~which ~~effectively~~we ~~depends~~also inrefer ~~part~~to onas ~~our~~the ~~ability~~Aerkomm toK++ ~~protect~~System, ~~these~~will contain ~~intellectual~~antennas ~~property~~for ~~rights~~transmission and ~~our~~receiving ~~proprietary~~in ~~information. We~~the ~~rely~~key ~~primarily~~frequency onbands ~~copyright~~for ~~and~~high-throughput ~~trade~~commercial ~~secret~~satellite ~~laws~~connectivity, ascalled Ka ~~well~~and ~~as trademarks~~Ku, ~~service~~which ~~marks~~are ~~and~~used ~~trade~~by ~~dress,~~satellites toin ~~protect~~GEO, ~~our~~MEO ~~valuable products~~ and ~~services~~in LEO orbits. WeWhile ~~use~~we ~~confidentiality~~aim ~~undertakings~~to ~~and~~deliver ~~licensing~~a ~~arrangements~~universal toterminal ~~protect~~for ~~our~~aviation ~~intellectual~~using only ~~property~~our ~~rights~~proprietary ~~worldwide.~~technologies In in the ~~future~~medium term, ~~when~~in ~~appropriate~~order to meet customer timelines, we may ~~seek~~also tosource ~~file~~an ~~patent~~integrated ~~applications~~partner totechnologies in ~~protect~~the ~~innovations~~short ~~arising~~term. ~~from~~All of our ~~research,~~universal ~~development~~terminals for aviation will comply with ARINC 791 and 781 standards of Aeronautical Radio, Incorporated (ARINC), meeting the necessary design ~~activities~~approvals.

312. Distributed Content System for Airlines: We have developed an intranet-based wireless connectivity solution, which we can also offer to both commercial airlines and to private business jet operators. Our distributed content system for airlines, which we also refer to as the Aerkomm AirCinema Cube, will provide passengers access to media content, including movies, videos, music, news feeds, video games, advertising and promotions. It will stream content from an onboard server to existing screens in stalled in the cabin or seats, and/or to passenger mobile devices.

~~Manufacturing~~Commercial Aviation Connectivity and Entertainment market business ~~Operations~~models.

~~We outsource our manufacturing operations to well-known contract manufacturers located primarily in Taiwan and Japan, and we aim to engage manufacturing partners in North America, in the future~~1. WeCommercial rely on third party foundries or companies that use third party foundries for manufacture of our semiconductor devices that are Application Specific Integrated Circuits (“ASICs”). These foundries are located primarily in Taiwan. We also outsource printed circuit board production and amorphous silicon or glass substrate semiconductor thin-film-transistor (TFT) manufacturing.Airlines

~~Outsourcing~~ Within the commercial aviation segment, our ~~operations~~main source of revenue is expected to ~~manufacturers~~be ~~and~~derived ~~foundries~~from ~~allows~~contracts uswith tocommercial ~~reduce~~airlines ~~our~~for ~~fixed~~both ~~costs,~~the ~~maintain~~sale ~~production~~of ~~flexibility.~~our ~~Our~~systems—both ~~proprietary~~the ~~products~~universal ~~are~~terminal ~~manufactured~~as towell ~~our~~as ~~designs~~the ~~with~~distributed ~~standard~~content ~~and~~system—as ~~custom~~well ~~components.~~as ~~Most~~subscription-based ofplans for the ~~components~~bandwidth ~~are~~connectivity ~~available~~ from ~~multiple~~our ~~sources~~selected satellite operator partners. We ~~have several~~aim ~~single-sourced~~to ~~supplier~~achieve ~~relationships~~this with both retrofit solutions on commercial aircraft already in operation by airline customers, ~~either~~as ~~because~~well ~~alternative~~as ~~sources~~line-fit ~~are~~solutions ~~not~~for ~~yet~~new ~~available~~aircraft orbeing ~~because~~assembled at the ~~relationship~~different isaircraft manufacturers’ facilities prior ~~advantageous~~to delivery to usthe respective aircraft lessors and airline customers.

~~Our manufacturing~~We ~~operations~~already ~~are~~have ~~dependent~~a ondefinitive ~~relationships~~agreement ~~with~~in ~~these suppliers who are subject to occasional supply chain disruptions.~~place Aswith isour ~~the~~first ~~case~~commercial ~~across~~airline ~~the industry~~customer, ifHong ~~key~~Kong ~~suppliers~~Airlines ~~fail~~(discussed tobelow). ~~provide~~We ~~timely~~are ~~and~~in ~~reliable~~advanced ~~supply~~discussion ofwith ~~components,~~several ~~we could experience manufacturing~~additional ~~delays~~potential ~~that~~customers ~~could~~directly ~~adversely~~through ~~affect~~ our ~~consolidated~~corporate ~~results of operations in a material way~~network. InWe ancannot ~~effort~~give toany ~~mitigate~~assurance ~~supply~~at ~~chain~~this ~~exposure~~time, we ~~have~~however, ~~increased~~that ~~our~~we ~~inventory over historical levels and~~ will ~~monitor~~be ~~whether~~able ~~adjustments~~ to successfully ~~inventory~~complete ~~levels~~any ~~are~~of ~~necessary~~these toadditional ~~mitigate any future exposures~~discussions.

~~Further, a~~We ~~range~~aim ofto ~~conditions~~complete ~~and~~our ~~circumstances~~universal ~~beyond~~terminal ~~our~~for aviation ~~control~~system ~~such~~approval asby ~~global~~Airbus ~~conflicts,~~and ~~recessionary~~receiving ~~economic~~the ~~conditions~~applicable inairworthiness ~~various~~certifications, ~~regions of~~namely the ~~world~~European orUnion aAviation ~~recurrence~~Safety Agency of(EASA) and the ~~Covid-19~~US ~~pandemic~~Federal ~~could~~Aviation ~~disrupt~~Administration (FAA), by the ~~availability~~last quarter of ~~raw~~2025. ~~materials~~We ~~and~~will ~~components~~then asbe ~~well~~able asto ~~our~~begin ~~capacity~~providing our touniversal ~~make~~terminal ~~and~~for ~~distribute~~aviation ~~our~~systems ~~products~~for installation on commercial airline aircraft.

~~Raw Materials, Components and Services~~29

We purchase raw materials and most of the components used in our manufacturing processes, such as printed circuit boards, injection-molded plastic parts, machined metal components, connectors and housings2. InCorporate ~~addition,~~Jet we purchase third party services, predominantly networking and mobile broadband services, to support the delivery of our solutions. The materials, molds and dies, subassemblies and components purchased from other manufacturers, and other materials and supplies used in our manufacturing processes are generally available from multiple sources.Customers

~~We believe~~To ~~there~~capitalize ison athe ~~sufficient~~private ~~number~~business ofaviation market, ~~acceptable~~we ~~vendors~~will ~~for~~aim ~~the~~to ~~components~~sell weour ~~purchase.~~systems Weto ~~regularly~~corporate ~~evaluate~~jet ~~both~~owners ~~domestic~~through ~~and~~the ~~foreign suppliers~~Airbus ~~for~~Corporate ~~quality,~~Jets ~~dependability~~(ACJ) and ~~cost~~Boeing ~~effectiveness~~Business Jets (BBJ) programs. ~~From~~In ~~time~~addition to ~~time~~selling our systems, ~~the~~we ~~cost~~will ~~and~~also ~~availability~~aim ofto ~~materials~~sell ~~and~~to ~~services~~these ~~is affected~~corporate byjet aircraft owners the ~~demands~~bandwidth required for the operation of ~~other~~our ~~industries~~services, aspriced ~~well~~on asa ~~other~~subscription ~~factors~~plan basis.

~~Whenever~~We already have an agreement in place with our ~~practical~~first corporate jet and launch customer, MJet GMBH (discussed below), and we ~~seek~~have tohad ~~establish~~advanced ~~multiple~~discussions ~~sources~~with ~~for~~several ~~the~~additional ~~purchase~~potential customers ofboth ~~raw~~directly ~~materials,~~through ~~components~~our corporate network and ~~services~~through toAirbus. ~~achieve~~We ~~competitive~~cannot ~~pricing~~give any assurance at this time, ~~maintain~~ ~~flexibility~~however, ~~reduce~~that ~~tariff~~we will ~~exposure,~~be ~~and~~able ~~protect~~to ~~against~~successfully ~~supply~~complete ~~disruption~~any of these additional discussions. Sales ~~When~~of ~~possible,~~our weuniversal ~~employ~~terminal afor ~~company-wide~~aviation ~~procurement~~system to ~~strategy~~the ~~designed~~corporate tojet ~~reduce~~market will also require the ~~purchase~~EASA ~~price~~and ofFAA ~~materials~~certification, ~~purchased~~which ~~components~~we ~~and~~expect ~~services~~to complete by the last quarter of 2025, as mentioned above.

For reasons of quality assurance, scarcity or cost effectiveness, certain components and raw materials used in the manufacturing of our products, as well as certain services utilized in the delivery of our solutions, are available only from a limited number of suppliers or from a sole source supplier3. WeElectric ~~work~~vertical ~~with~~take-off ~~our suppliers to develop contingency plans~~ and ~~redundancy intended to assure continuity of supply~~ ~~while~~landing ~~maintaining~~(eVTOL) ~~high quality and reliability. In some cases, we established long-term supply contracts with our suppliers.~~aircraft

~~Due to~~To the ~~scarcity~~extent orthat ~~market~~eVTOL ~~volatility~~aircraft ofbecome ~~certain~~a ~~raw materials, purchased components and services, we may not be able to quickly re-establish~~real ~~additional or replacement sources for certain components~~product, ~~materials or services. In the event that~~ we ~~are~~aim ~~unable~~ to ~~obtain~~be ~~sufficient quantities~~in ofa ~~raw~~position ~~materials or components, or unable~~ to ~~obtain~~sell ~~sufficient access to the services needed to deliver~~ our solutions ~~on commercially reasonable terms or in a timely manner, our ability~~ to ~~manufacture~~those ~~and~~companies ~~deliver our products~~ and ~~services~~platforms onas ~~a timely and cost-competitive basis may be compromised, which may have a material adverse effect on our business, financial condition and results of operations~~well.

~~We also~~Commercial ~~experienced~~Aviation ~~increased~~Business raw material costs. We are continuing to monitor global developments, including the impact of inflation, and are prepared to implement actions that we determine to be necessary to sustain our business.Solutions

32We can provide different business solutions to airline customers and business jet operators, all of which generate revenue.

~~Competition~~ Retrofit solution for Airlines

We ~~compete~~ ~~primarily~~aim into ~~the~~offer ~~communications~~a ~~technology~~retrofit ~~industry.~~solution ~~This~~to ~~industry~~potential commercial isairline ~~characterized~~customers byhaving ~~rapid~~an ~~technological~~existing ~~advances~~fleet ~~and~~with ~~evolving industry~~aircraft ~~standards.~~in ~~This~~operation ~~market~~having ~~can~~no besatellite ~~affected~~communications ~~significantly~~installed. byIn ~~new~~most situations, ~~product~~we ~~introductions~~expect ~~and~~that ~~marketing~~the ~~activities~~fleet ofowner ~~industry~~would ~~participants. It~~be isresponsible ~~possible~~for ~~new~~installing ~~market~~our ~~entrants~~systems, ~~may~~under ~~market~~our ~~and~~supervision, ~~sell~~as ~~disruptive~~well ~~technologies~~as ~~that~~uninstalling any ~~impact~~systems ~~one~~they ormay ~~more~~want ofto ~~our product or service offerings~~remove. In ~~addition,~~The wefleet ~~may~~owner ~~compete~~would ~~with~~also ~~companies~~be required to ~~acquire~~purchase ~~new~~the ~~businesses~~necessary orsatellite ~~technologies~~bandwidth ~~and~~from ~~the~~us ~~competition~~ to ~~secure~~provide connectivity ~~such~~to ~~assets~~its ~~may be intense~~fleet.

~~We will~~Line ~~compete~~Fit solution for customers on the basis of existing and planned product features, service and software application capabilities, company reputation, brand recognition, technical support, alliance relationships, the quality and reliability of our offerings, product development capabilities, price and availability. While we believe that no competitor currently offers a comparable range of products and services, multiple companies do compete with us with respect to one or more of our product and service offerings.Airlines

~~With respect~~We toalso ~~many~~aim ofto offer our ~~product~~multi-orbit ~~and~~universal terminals ~~service~~as ~~offerings,~~a weline-fit ~~face~~solution. ~~competition~~Under ~~from~~this ~~companies~~situation, ~~who~~the ~~dedicate~~installation ~~more~~would ~~resources~~be ~~and~~done ~~attention~~by ~~to a narrower product and service offering compared to~~ the ~~breadth~~manufacturer of ~~our business. As~~ the ~~marketplace~~commercial ~~for~~aircraft and ~~multi-orbit~~certified ~~satellite~~with ~~connectivity products~~the ~~and~~aircraft, ~~solutions~~so ~~continues~~our tosystems ~~grow,~~would webe ~~expect~~delivered to ~~encounter~~the ~~increased~~manufacturer ~~competition.~~upon ~~Some~~request of ~~these~~the ~~competitors~~aircraft ~~may~~manufacturer ~~have~~or ~~access to~~its ~~significantly~~customers, ~~more~~either ~~financial~~commercial ~~and~~airlines ~~technical~~or ~~resources~~aircraft ~~than~~lessors, wethat ~~possess~~are ~~which~~purchasing ~~could~~the ~~give~~platforms. The ~~them~~fleet ~~advantages~~owner inwould ~~their~~also ~~ability~~be ~~to develop new~~required ~~and better offerings,~~ to ~~meet~~purchase ~~customer~~the ~~demands,~~necessary tosatellite ~~comply~~bandwidth ~~more~~from ~~quickly~~us ~~with new regulatory regimes and~~ to ~~promote~~provide ~~and~~connectivity ~~sell~~on ~~their~~its ~~products~~fleet.

~~We encounter~~Our ~~intense~~Contracts competition in the markets we serve, and we expect the intensity of competition to increase in the future. Many of our primary competitors are large, well-established companies, many have substantially greater financial, managerial, technical, marketing, operational, and other resources than we do, and others have entered the markets with ~~standardized~~Commercial ~~and~~Aviation widely accepted technology and services. At the same time, many of our competitors are also our potential partners, especially satellite operators that have traditionally vertically integrated in providing customer terminals specific to their satellites or constellations.Partners

~~Recently, SpaceX’s~~Airbus ~~Starlink~~SAS ~~has~~-- ~~emerged~~On asNovember a30, ~~significant~~2018, we ~~competitor~~entered ~~with~~into ~~flat~~an ~~panel,~~agreement ~~electronically~~with ~~steered~~Airbus ~~array~~SAS (~~ESA~~“Airbus”), ~~terminals~~pursuant ~~and~~to ~~its~~which ~~new~~Airbus ~~LEO network.~~aims ~~Other~~to ~~LEO~~develop ~~services, such as Eutelsat OneWeb~~ and ~~Amazon’s~~certify ~~Project~~a ~~Kuiper~~complete ~~are~~retrofit solution ~~also~~allowing ~~entering~~ the ~~market.~~installation ~~SpaceX’s~~of ~~Starlink, Amazon’s~~our ~~Project~~“AERKOMM ~~Kuiper~~K++” ~~and~~system ~~Eutelsat~~on ~~OneWeb~~Airbus’ ~~are~~single ~~all~~aisle ~~potential~~aircraft ~~partners,~~family ~~but~~including ~~it is not guaranteed that we can secure commercial~~the ~~agreements~~Airbus ~~that define mutually beneficial partnerships between our companies. In addition~~A319/320/321, wefor ~~face~~both ~~some~~Current ~~competition~~Engine ~~from~~Option ~~providers~~(CEO) ~~of parabolic antennas, which include KVH, Intellian~~ and ~~Cobham~~New ~~SATCOM,~~Engine ~~among~~Option ~~others~~(NEO) models.

~~The emergence~~We ofexpect ~~ESA~~to ~~terminals~~expand ~~from~~our ~~companies~~agreement ~~like~~with ~~Starlink~~Airbus to ~~has~~include ~~significantly~~other ~~increased~~Airbus ~~competitive~~models ~~pressure~~including onthe ~~traditional~~Airbus ~~parabolic~~A330, ~~antennas~~A340, ~~but~~ ~~these~~A350 ~~incumbents~~and ~~appear~~A380 toseries. beAirbus ~~well-established~~would ~~with~~then ~~loyal~~apply ~~customers,~~for asand ~~well.~~obtain Inon our behalf a Supplemental Type Certificate (STC) from the ~~market~~European ~~for~~Aviation ~~commercial~~Safety ~~aviation~~Agency, ~~connectivity~~or EASA, we ~~face~~as ~~competition~~well as from ~~Ball~~the ~~Aerospace~~U.S. Federal Aviation Administration or FAA, ~~recently~~for ~~acquired~~our byretrofit ~~BAE~~universal ~~Systems~~terminal for aviation, asor ~~well~~AERKOMM asK++ ~~ThinKom~~system.

~~Government Procurement~~30

~~Substantial portions~~Airbus ofagreed ~~our~~to ~~current~~provide ~~and~~us ~~future~~with ~~revenues~~the ~~are~~retrofit solution, ~~and~~including ~~will~~the beService ~~generated~~Bulletin ~~from contracts~~ and ~~subcontracts~~the ~~with~~material ~~government~~kits ~~agencies.~~including ~~Such contracts~~the ~~are~~update ~~subject~~of totechnical ~~a competitive bid process~~ and ~~are~~operating ~~awarded~~manuals onpertaining to the aircraft ~~basis~~and provision of ~~technical~~aircraft ~~merit,~~configuration ~~personnel qualifications, experience and price~~control. WeThe ~~also~~timeframe ~~receive~~for ~~some~~the ~~contract~~completion ~~awards~~and ~~involving~~testing ~~special~~of ~~technical~~this ~~capabilities~~retrofit onsolution, aincluding the ~~negotiated~~certification, ~~noncompetitive~~is ~~basis~~expected ~~due~~ to ~~our~~ ~~unique~~be ~~mix~~in the fourth quarter of ~~communication products~~2025, ~~satellite~~although ~~services,~~there ~~engineering~~is ~~capabilities~~no ~~and~~guarantee ~~technical~~that ~~expertise~~the project will be successfully completed in ~~specialized~~the ~~areas~~projected timeframe.

~~Our future~~Multiple ~~revenues~~airlines, and ~~income~~in ~~could~~particular beaircraft lessors, ~~materially~~will ~~affected~~accept only Service Bulletins issued by ~~changes~~the inaircraft ~~government~~manufacturers ~~procurement~~for ~~policies~~the ~~and~~retrofit ~~related~~installation ~~oversight,~~of aany ~~reduction~~system on board intheir ~~expenditures~~aircraft. Our agreement with Airbus aims to ensure that our system will meet this requirement for ~~the~~aircraft ~~products~~lessors ~~and~~who ~~services~~intend weto purchase ~~provide~~Airbus aircraft, ~~and~~although ~~other~~it ~~risks~~does ~~generally~~not ~~associated~~guarantee ~~with~~that ~~federal~~airlines ~~government~~or ~~contracts~~aircraft lessors will purchase our AERKOMM K++ system. 

WeAirbus Interior Services -- ~~provide~~On ~~products~~July ~~and~~24, ~~services~~2020, ~~under~~our ~~government~~wholly ~~contracts~~owned ~~that~~subsidiary, ~~usually~~Aerkomm ~~require~~Malta, ~~performance~~entered ~~over~~into an agreement with Airbus Interior Services, a ~~period~~wholly owned subsidiary of ~~several~~Airbus ~~months~~as a follow-on to ~~multiple years.~~the ~~Long-term~~agreement ~~contracts~~that ~~may~~Aerkomm besigned ~~impacted~~with ~~based~~Airbus on ~~when~~November ~~the~~30, ~~government~~2018. ~~appropriated~~Airbus ~~funds~~agreed ~~are~~to ~~available~~develop, install and certify the Aerkomm K++ System on a prototype A320 aircraft to ~~what~~EASA ~~level~~and FAA certification standards, ~~which~~and ~~may~~Airbus Interior Services ~~result~~agreed into aprovide ~~delay,~~current ~~reduction~~cabin orupgrade ~~termination~~solutions offor ~~these~~Airbus ~~contracts~~aircraft operators while bringing additional flexibility and reduced lead times to the cabin upgrade process.

~~Government~~under this agreement, Airbus Interior Services ~~contracts~~will ~~may~~provide beand ~~performed~~certify, ~~under~~via ~~cost-reimbursement~~the ~~contracts~~Airbus Design Organization Approval process, ~~time-and-materials~~a ~~contracts~~complete ~~and~~retrofit ~~fixed-price~~solution ~~contracts.~~to ~~Cost-reimbursement~~develop EASA/FAA certified ~~contracts~~Service ~~provide~~Bulletins, ~~for~~to ~~reimbursement~~supply ofrelated ~~costs~~Aircraft Modification Kits and ~~payment~~to install the Aerkomm K++ Connectivity solution on the A320 family of acommercial ~~fee~~aircraft. ~~The~~This ~~fee~~agreement ~~may~~also beincludes ~~either~~Airbus ~~fixed~~support byfor the ~~contract~~integration orof ~~variable,~~the ~~based~~Aerkomm ~~upon cost~~K++ ~~control,~~System ~~quality,~~components ~~delivery~~on ~~and~~ the ~~customer’s~~aircraft including ~~subjective~~ARINC ~~evaluation~~791 ofstructural ~~the~~reinforcements and related engineering work.

33Airbus Interior Services will provide support for the European National Airworthiness Authorities (NAA) certification as required in addition to EASA certification. Airbus Interior Services will also provide on-site technical support at the Maintenance Repair Organization (MRO) base for the first aircraft retrofit of each new customer.

~~Government contracts~~We ~~may~~plan beto ~~terminated,~~install ~~in whole or in part, at~~ the ~~convenience~~Airbus ofInterior ~~the~~Services-created Service ~~relevant~~Bulletin ~~government~~and ~~office.~~Airbus Ifkits ~~a termination~~ for ~~convenience occurs,~~ the ~~government~~AERKOMM ~~office~~K++ ~~generally~~retrofit issolution ~~obligated~~first toon ~~pay for work completed or services rendered and/or~~ the ~~cost~~Hong ~~incurred~~Kong byAirlines usfleet ~~under the~~of ~~contract,~~12 ~~which~~Airbus ~~may~~A320 ~~include a fee or allowance for profit. Contracts with prime contractors may have negotiated termination schedules~~aircraft, ~~that~~following ~~apply.~~our ~~When~~certification ~~we participate as a subcontractor, we are at risk if the prime contractor does not perform its contract~~approval. ~~Similarly, when~~With wethis ~~act as a prime contractor employing subcontractors~~installation, weHong ~~are~~Kong atAirlines ~~risk~~should ifbecome aAerkomm’s ~~subcontractor~~first ~~does~~commercial ~~not perform its subcontract~~airline customer. 

~~Government~~Hong Kong Airlines -- In June ~~Regulation~~2015, we entered into a master agreement with Hong Kong Airlines Limited, or Hong Kong Airlines, to install IFEC systems on-board their aircraft. On January 30, 2020, further to the master agreement with Hong Kong Airlines, we signed an agreement with Hong Kong Airlines to provide to Hong Kong Airlines both of its Aerkomm AirCinema and AERKOMM K++ solutions.

We ~~are~~ ~~subject~~aim to ~~the laws and regulations of the U.S. and foreign jurisdictions in which we~~ provide ~~and~~our ~~sell~~universal ~~our~~terminal ~~satellite~~for ~~communication~~aviation, ~~products~~or ~~and~~AERKOMM ~~services~~K++ system, ~~including~~for ~~those~~installation ofon ~~the~~Hong ~~Taiwan~~Kong ~~and~~Airlines’ ~~Japan.~~fleet ~~Many~~ of ~~the~~12 ~~countries~~Airbus ~~where~~A320 ~~our~~and ~~customers~~5 ~~use~~Airbus ~~our~~A330-300 ~~products~~aircraft ~~and~~as ~~services~~well as ~~have~~our ~~licensing~~AERKOMM ~~and~~AirCinema ~~regulatory~~system ~~requirements~~ for the ~~importation~~Hong ~~and~~Kong ~~use~~Airlines ofAirbus ~~satellite~~A320 ~~communications~~aircraft. ~~and~~Hong ~~reception~~Kong ~~equipment,~~Airlines ~~including the~~aims ~~use~~to ofbecome ~~such~~our ~~equipment~~first incommercial ~~territorial waters, the transmission of satellite signals on certain radio frequencies, the transmission~~airliner oflaunch ~~VoIP services using such equipment, and, in some cases, the reception of certain video programming services~~customer.

~~In the~~On ~~U.S.~~November 17, ~~many~~2021, ofwe ~~these~~signed ~~matters~~a ~~are~~new ~~regulated~~agreement with byHong ~~the~~Kong ~~Federal~~Airlines ~~Communications~~Ltd ~~Commission.~~and InEjectt ~~other~~Inc. ~~countries~~(formerly orknown ~~foreign~~as ~~jurisdictions~~Yuanjiu ~~where we~~Inc.). ~~may~~Based ~~aim~~on tothe ~~provide~~long-term relationship and ~~sell~~anticipated ~~our~~further co-operation ~~satellite~~between ~~communication~~Aerkomm ~~products~~ and ~~services~~Hong inKong ~~the future~~Airlines, ~~many~~we ofagreed ~~these~~to ~~matters~~aim ~~are~~to ~~regulated~~provide ~~by the~~to ~~telecom~~Hong ~~regulatory~~Kong ~~authority~~Airlines ofa ~~each~~LEO-compatible ~~national~~universal ~~government.~~for aviation ~~While~~with ~~there~~LEO ~~are~~constellation ~~attempts~~service towhen ~~harmonize~~available. ~~and~~We ~~standardize~~will ~~requirements~~aim ~~among international~~to ~~regulators,~~deliver ~~there~~our isuniversal ~~still~~terminal afor ~~significant~~aviation ~~amount~~with ofa ~~heterogeneity~~full incertified Service ~~licensing~~Bulletin ~~conditions and enforcement on a country-~~by~~-country basis~~ Airbus.

~~Furthermore, due~~Our touniversal ~~the~~terminal ~~rapid~~for ~~pace~~aviation ofaims ~~advancement~~to ofintroduce high-speed ~~satellite~~internet ~~communications~~access ~~technology,~~to the ~~regulatory~~seatback ~~landscape~~screens isof ~~similarly~~Hong ~~evolving,~~Kong soAirlines’ weAirbus ~~are at~~A320 ~~risk~~aircraft, ofconnected ~~our~~via ~~technology~~the ~~not~~distributed ~~fitting~~content system ~~neatly~~for ~~into~~airlines. anInstead ~~existing~~of ~~licensing~~the ~~category~~traditionally preloaded and ~~thereby~~fixed ~~slowing~~selection ~~our~~of ~~access~~in-flight toentertainment, apassengers ~~given~~would ~~market~~have asaccess ~~we seek a path~~ to ~~service~~high-speed ~~which~~internet ~~remains~~steaming inservices ~~compliance~~for ~~with~~videos, ~~all~~music ~~local~~and ~~regulation~~social media.

~~Radio-frequency~~In order to install the AERKOMM K++ system on ~~and~~the ~~Communications~~Hong ~~Regulation~~Kong -Airlines ~~International~~aircraft, ~~Telecommunication~~we ~~Union~~will have to obtain local approval for the AERKOMM K++ system from the Hong Kong Civil Aviation (~~ITU~~HKCAD). This HKCAD local approval will be based on our obtaining the Airbus Service Bulletin, which we expect to receive from Airbus, together with EASA certification, by some time in 2026. Once we receive the Airbus Service Bulletin and the EASA certification, jointly with the support of Airbus, we will be able to apply to the HKCAD for the required local approval.

The orbital location and frequencies for our partner satellites are subject to the ITU’s regulations, including its frequency registration and coordination procedures, and its various provisions on spectrum usage. Those procedures are specified in the ITU Radio Regulations and seek to facilitate shared international use of limited spectrum and orbital resources in a manner that avoids harmful interference. Among other things, the ITU regulations set forth procedures for establishing international priority with respect to the use of such resources, deadlines for bringing satellite networks into use in order to maintain such priority, and coordination rights and obligations with respect to other networks, which vary depending on whether such networks have higher or lower ITU priority.31

~~The~~Other Airline Partners and Business Jet ~~ITU~~Prospective ~~regulations~~Customers -- We are actively working with prospective airline customers to provide ~~allocations~~them orwith ~~designations~~the universal terminal for ~~how~~aviation, ~~spectrum~~or ~~can~~our beAERKOMM ~~used~~K++ ~~for~~system.  In ~~various~~connection ~~purposes~~with the Airbus project, ~~and~~we ~~whether~~have ~~such~~also ~~uses~~identified ~~operate on~~the aowners ~~primary~~of Airbus Corporate Jet, or ~~secondary~~ACJ, ~~basis~~as ~~with~~potential ~~respect~~customers toof ~~one~~our ~~another~~AERKOMM K++ system. ~~Secondary~~To ~~uses~~capitalize ~~may~~on ~~not~~this ~~cause~~additional ~~harmful~~market, ~~interference~~we plan to ~~primary~~sell ~~uses~~our ~~and~~AERKOMM ~~may~~K++ ~~not~~system ~~claim~~hardware ~~interference~~for ~~protection~~installation ~~from~~on ~~primary~~ACJ ~~uses.~~corporate ~~The~~jets ~~orbital~~and ~~arc~~provide isconnectivity ~~becoming~~through ~~increasingly~~subscription-based ~~congested~~plans. ~~with~~This ~~respect~~new tocorporate ~~such~~jet market ~~ITU~~could ~~filings~~ generate additional revenue and ~~the~~income ~~satellite~~for ~~networks~~our ~~operated~~company. As ~~under~~discussed ~~those~~below, ~~filings~~we have entered into an agreement with Mjet GMBH, an Airbus ACJ customer.

~~The~~While, to date, we have been concentrating on ~~ITU’s~~Airbus ~~Radio~~customers ~~Regulations~~in ~~are~~view ~~also~~of ~~subject~~our existing agreement with Airbus, our current plan is to ~~change~~also atbegin ~~periodic~~marketing ~~ITU~~to ~~World~~Boeing ~~Radiocommunication~~aircraft ~~Conferences~~customers and Boeing Business Jets (~~WRCs~~BBJ) customers, and ~~their~~we ~~application is~~intend ~~determined~~to byacquire ~~various~~the ~~governing~~necessary ~~bodies~~certification ~~within~~of ~~the~~our ~~ITU.~~AERKOMM ~~WRCs~~K++ ~~typically~~system ~~are~~equipment ~~convened~~for the ~~approximately~~different ~~every~~Boeing ~~four~~aircraft ~~years~~models, with ~~the~~a ~~last~~particular ~~one occurring~~focus aton the ~~end~~Boeing ofB737 ~~calendar~~aircraft ~~year 2023~~family.

~~Other~~We aim to enter ~~Legal~~into ~~Requirements~~business agreements with additional airline partners and corporate jet owners, which would allow our universal terminals for aviation to be installed together with our bandwidth services provided, on additional fleet aircraft. Under any such agreements, we expect that the airlines will commit to have our equipment installed on some or all the aircraft they operate. We cannot guarantee that we will be able to enter into any such additional agreements.

~~As a~~Other ~~result~~Agreements ~~of our international operations, we are subject to a number of additional legal requirements, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act~~ and ~~the~~Understandings ~~customs,~~with ~~export,~~our ~~trade~~Business sanctions and anti-boycott laws of the United States, including those administered by the U.S. Customs and Border Protection, the Bureau of Industry and Security, the Department of Commerce, the Department of State, and the Office of Foreign Assets Control of the Treasury Department, as well as those of other nations in which we do business.Partners

~~Our~~Mjet Definitive Agreement: On ~~operations~~March ~~are~~6, ~~also~~2019, ~~subject~~we tosigned ~~various~~a ~~domestic~~General ~~and~~Terms ~~international~~Agreement ~~privacy~~(GTA) ~~laws~~with Mjet GMBH, ~~including~~or ~~the~~Mjet, ~~European~~a ~~Union’s~~corporate ~~General~~jet ~~Data~~owner ~~Protection~~operating an Airbus ACJ A319 based ~~Regulation~~in Vienna, Austria. ~~These~~On ~~laws~~June 11, 2019, we converted this GTA into a definitive agreement with Mjet, and ~~regulations~~on June 12, as2019, ~~well~~Mjet asplaced a first purchase order with Aerkomm. The purchase order, which remains valid, provides for the ~~interpretation~~provision, installation, testing and ~~application~~certification of our AERKOMM K++ system equipment, including the Airbus Service Bulletin and associated material kit and related connectivity services, on an Mjet Airbus ACJ A319 aircraft under the supervision of ~~these~~Airbus. ~~laws~~Assuming the installation, testing and ~~regulations~~certification of our AERKOMM K++ system on the Mjet A319 (which is expected by sometime in 2026) is successful, ~~are~~something ~~subject~~we tocannot ~~change~~guarantee at this time, Mjet will ~~and~~pay ~~any~~us ~~such~~a ~~change~~one-time ~~may~~fee ~~affect~~for our ~~ability~~equipment toand ~~offer~~a ~~and~~monthly ~~sell~~fee ~~existing~~for our connectivity services, and ~~planned~~we ~~satellite~~will ~~communications~~also ~~products~~aim ~~and~~to begin charging Mjet for the bandwidth required to use the AERKOMM K++ system services. ~~For~~Assuming the success of this installation, Mjet will likely become the ~~more~~first ~~information~~recurring payment customer of our AERKOMM K++ system as well as being the launch customer of our Aerkomm K++ solution.  We cannot assure you, ~~see~~however, ~~“Further~~we ~~Risks~~will ~~Related~~be able to ~~Government~~deliver ~~Regulation~~on the agreement with Mjet, or that the Mjet GTA will lead to any Aerkomm product sales.”

34Contracts with Satellite Partners

~~ITEM~~SES Agreement -- Aerkomm and New 1ASkies Satellites B.V. ~~RISK~~(“SES”), ~~FACTORS~~a Dutch company that operates a constellation of satellites in medium-earth orbit (MEO) and geostationary-earth orbit (GEO), entered into a master services agreement dated January 19, 2022 and under such agreement has entered into multiple service orders pursuant to which SES has provided the Company terminal equipment and satellite connectivity and other related services.

~~Investment in~~Aerkomm ~~our~~and ~~common~~SES ~~stock~~also ~~involves~~entered into a ~~high~~non-binding cooperation ~~degree~~agreement ofdated ~~risk.~~January ~~You~~10, ~~should~~2022 ~~carefully~~(at ~~consider~~Exhibit ~~each~~10.77) ofin which the ~~following~~parties ~~risks,~~confirmed ~~together~~their ~~with~~intent ~~all~~to ~~other information~~explore ~~set~~opportunities ~~forth~~to collaborate inwith ~~this~~respect ~~annual~~to ~~report,~~technical ~~including~~and ~~the~~commercial ~~financial~~matters ~~statements~~making ~~and~~use ~~the~~of ~~related~~their ~~notes,~~combined ~~before~~service ~~making~~offerings. aWe ~~decision~~aim to ~~buy~~expand its technical ~~our~~and ~~common~~commercial ~~stock.~~collaboration Ifwith ~~any~~SES ofin the ~~following~~future. ~~risks~~We ~~actually~~cannot ~~occurs~~assure you, ~~our~~however, ~~business~~we ~~could~~will be ~~harmed.~~able Into ~~that~~enter ~~case,~~into ~~the~~additional ~~trading~~material definitive ~~price~~agreements ofwith ~~our common~~SES, ~~stock~~or ~~could~~that ~~decline,~~our ~~and~~relationship ~~you~~with ~~may~~SES ~~lose~~will ~~all~~lead orto ~~part~~any ofAerkomm ~~your~~product ~~investment.~~sales

~~Risks Related to the Merger with IXAQ~~32

~~The Merger~~Civilian isTelecommunications ~~subject to conditions, including certain conditions that may not be satisfied on a timely basis, if at all.~~Solutions

~~Unless waived~~We byare ~~the~~actively ~~parties~~developing ~~to the Merger Agreement,~~ and ~~subject~~offering totwo ~~applicable~~core solutions ~~law, the consummation of the Merger is subject~~ to ~~several~~serve ~~conditions set forth in~~ the ~~Merger~~civilian ~~Agreement.~~telecommunications market:

~~The Merger~~1. ~~Agreement~~Universal ~~provides~~Terminal ~~that~~for ~~IXAQ’s~~Network obligation to consummate the Merger is conditioned on, among other things, that as of the closing of the Merger, the combined company resulting from the Merger (the “Combined Company”) has obtained at least $45,000,000 (“PIPE Minimum Investment Amount”) in financing from investors in the form of (i) the proceeds of private placements in IXAQ in connection with consummation of the Merger (the “PIPE Investments”) and (ii) the proceeds of the SAFE investments in Company prior to consummation of the Merger (the “SAFE Investments”).Resiliency

~~As of~~Our ~~the~~universal ~~date~~terminal offor ~~this~~network resiliency ~~filing,~~is ~~agreements~~designed ~~have~~to ~~been~~provide ~~signed~~mobile ~~with~~backhaul ~~investors~~satellite ~~for~~connectivity ~~$35~~to ~~million~~support inboth ~~PIPE~~4G ~~Investment~~LTE ~~commitments to PIPE Investments~~ and no5G ~~SAFE Investment have yet been made~~networks. ~~There~~This isterminal nocan ~~assurance that subscriptions for the remaining $10 million PIPE Minimum Investment~~be ~~Amount.~~deployed ~~The~~either ~~actual~~as ~~additional~~a ~~amounts~~backup ~~committed~~system ~~to PIPE Investments~~ or ~~funded~~as toa ~~the~~primary ~~Company~~solution, ~~under~~depending ~~SAFE~~on ~~Investments~~the ~~will~~customer’s ~~depend~~network onarchitecture ~~market conditions~~ and ~~other~~reliability ~~factors~~requirements.

~~If the~~These ~~PIPE~~terminals ~~Minimum~~may ~~Investment~~incorporate ~~Amount~~antennas capable orof ~~other~~transmitting ~~conditions~~and toreceiving ~~IXAQ’s~~in ~~obligation~~one toor ~~consummate~~more of the ~~Merger~~key ~~are~~frequency ~~not~~bands—primarily ~~met,~~Ka and ~~such~~Ku—commonly ~~conditions are~~used ~~not~~for ~~waived~~high-throughput satellite bycommunications. ~~IXAQ~~These ~~under~~bands ~~the~~are ~~terms~~supported ofacross ~~the~~multiple ~~Merger~~orbital ~~Agreement~~regimes, ~~then~~including ~~the~~geostationary ~~Merger~~(GEO), ~~Agreement~~medium ~~could~~Earth ~~terminate~~orbit (MEO), and ~~the~~low ~~proposed~~Earth ~~Merger~~orbit ~~may not~~(LEO) ~~be consummated~~satellites.

~~If such~~While ~~condition~~our islong-term ~~waived~~objective ~~and the Merger~~ is ~~consummated~~to deliver ~~with~~fully ~~less~~proprietary ~~than~~universal ~~the PIPE Minimum Investment Amount~~terminals, ~~the~~in ~~cash held by~~ the ~~Combined Company~~short ~~upon~~term ~~consummation~~we ~~of the closing~~ may ~~not~~integrate bethird-party ~~sufficient~~technologies to ~~allow~~accelerate ~~the~~deployment ~~Combined Company to operate~~ and ~~pay its bills as they become~~ ~~due.~~meet ~~Any~~urgent ~~such~~customer ~~event in the future may negatively impact the analysis regarding the Combined Company’s ability to continue as a going concern at such time~~requirements.

~~There~~Given ~~can be no assurance that~~ the ~~shares~~nature of ~~the~~satellite ~~Combined~~communication ~~Company’s~~systems, ~~Common~~our ~~Stock~~universal ~~that~~terminals ~~will~~for benetwork ~~issued~~resiliency inare ~~connection~~typically ~~with~~subject ~~the~~to ~~Merger~~earth ~~will~~station licensing berequirements. ~~approved~~These ~~for~~may ~~listing~~include onregulatory ~~Nasdaq,~~approvals orfrom ~~another~~the U.S. ~~national~~Federal ~~exchange,~~Communications ~~following~~Commission (FCC), the ~~closing~~International Telecommunication Union (ITU), and other national or ~~that~~regional ~~the~~telecommunications ~~Combined~~authorities. ~~Company~~Compliance with type approvals and certifications for both electronic and radiofrequency components will also be ~~able to~~required. ~~comply~~Depending ~~with~~on the ~~continued~~market ~~listing~~and ~~rules~~customer ~~of Nasdaq~~arrangement, we may pursue such licensing directly or ~~another~~in ~~U.S.~~partnership ~~national~~with ~~exchange~~local stakeholders.

In connection with the Merger and as a condition to the Company’s obligations to complete the Merger, the Combined Company will be required to demonstrate compliance with Nasdaq’s initial listing requirements2. ~~The~~Universal ~~Company~~Terminal and IXAQ cannot assure that the Combined Company will be able to meet those initial listing requirements or qualify to list on another national securities exchange. Even if the Combined Company’s Common Stock is approved for ~~listing~~Non-Terrestrial onNetworks ~~Nasdaq, the Combined Company may not meet the Nasdaq continued listing requirements following the Merger.~~(NTN)

35Our universal terminal for non-terrestrial networks (NTN) is intended to serve as a high-throughput mobile backhaul solution for next-generation 5G Advanced and future 6G networks. These NTN terminals are generally deployed as a primary solution, forming the satellite-based communications backbone of emerging mobile infrastructures.

~~The announcement~~Like ofour resiliency terminals, the NTN ~~proposed~~terminal ~~Merger~~will ~~could~~support ~~disrupt~~Ka ~~the~~and ~~Company’s~~Ku ~~relationships~~bands and will be compatible with ~~its~~GEO, ~~customers~~MEO, ~~suppliers~~and LEO satellite constellations. However, ~~business~~the ~~partners~~distinguishing ~~and~~feature ~~others,~~of asour ~~well~~NTN asoffering lies in its ~~operating~~higher ~~results~~throughput capability—driven by the performance of our proprietary glass semiconductor antennas and ~~business~~our ~~generally~~software-defined modem technologies.

~~Whether or~~We ~~not~~intend ~~the~~to ~~Merger~~fully ~~and~~utilize ~~related~~proprietary technology ~~transactions~~in ~~are~~the ~~ultimately~~medium ~~consummated~~term. However, asdue ato ~~result~~less ofstringent ~~uncertainty~~requirements ~~related~~for tosize, ~~the~~weight, ~~proposed~~and ~~transactions, risks~~power ~~relating~~in toNTN ~~the~~applications ~~impact~~compared ofto defense ~~the~~use ~~announcement~~cases, ofwe ~~the~~may ~~Merger~~integrate onthird-party components in the ~~Company’s~~near ~~business~~term ~~include~~to ~~the~~accelerate ~~following:~~market entry.

●We ~~its~~anticipate ~~employees~~that ~~may~~the ~~experience~~regulatory ~~uncertainty~~framework for ~~about~~NTN ~~their~~deployments ~~future~~will ~~roles,~~mirror ~~which~~that ~~might~~of ~~adversely~~our ~~affect~~network ~~the~~resiliency ~~Combined~~terminals, ~~Company’s~~requiring ~~ability~~similar tolicensing ~~retain~~ and ~~hire~~certification ~~key~~procedures ~~personnel~~across different ~~and other employees;~~jurisdictions.

●Civilian ~~customers,~~Telecommunications ~~suppliers,~~Solutions market business partners and other parties with which we maintain business relationships may experience uncertainty about the Company’s future and seek alternative relationships with third parties, seek to alter their business relationships with us or fail to extend an existing relationship with the Company; andmodels

●Our ~~The~~civilian ~~Company~~telecommunications ~~has~~strategy ~~expended~~is ~~and~~structured around ~~will~~multiple ~~continue~~revenue models to ~~expend~~meet ~~significant~~diverse ~~fees~~market demands and ~~expenses~~optimize ~~for~~scalability. ~~professional~~These ~~services~~include: ~~and~~(1) ~~other~~hardware ~~transaction~~leasing ~~costs~~combined inwith value-added ~~connection~~reseller services, (2) hardware sales with ~~the~~bundled ~~proposed~~bandwidth ~~Merger~~offerings, and (3) revenue-sharing arrangements with satellite operators.

~~If any~~1. ofHardware ~~the~~Leasing ~~aforementioned risks were to materialize, they could lead to significant costs which may impact the Company and, in the future, the~~ Combined ~~Company’s~~with ~~results~~Value-Added ofReseller ~~operations and cash available to fund its business.~~Services

WeIn the civilian telecommunications ~~will~~market, beour ~~subject~~primary long-term revenue objective is to ~~contractual~~engage ~~restrictions~~with ~~while~~mobile network operators and equipment vendors through a hybrid model involving the ~~Merger~~leasing isof ~~pending~~our proprietary systems—namely, the Universal Terminal for Network Resilience and the Universal Terminal for Non-Terrestrial Networks (NTN)—in combination with subscription-based satellite bandwidth plans. Under this model, we serve as a distribution partner for select satellite operators, allowing us to offer a complete and integrated connectivity solution.

~~The~~This approach supports consistent recurring ~~Merger~~revenue ~~Agreement~~streams ~~restricts~~and ~~the~~positions ~~Company~~us ~~from~~to ~~making~~deliver ~~certain~~the ~~expenditures~~most ~~and~~up-to-date ~~taking~~technology ~~other~~enhancements ~~specified~~to ~~actions~~our ~~without~~customers. To support the ~~consent~~capital requirements associated with hardware leasing, we are actively pursuing partnerships with leasing firms or asset-based financing providers. As of ~~IXAQ~~August ~~until~~9, ~~the~~2023, ~~Merger~~we ~~occurs.~~secured ~~These~~a ~~restrictions~~key ~~may~~milestone ~~prevent~~in this direction by winning the ~~Company~~first ~~from~~phase ~~pursuing~~of ~~attractive~~the ~~business~~Taiwan ~~opportunities~~Telecom ~~that~~Technology ~~may~~Center’s ~~arise~~(TTC) verification ~~prior~~project, titled “Emerging Technology Application for Enhancing Communication Network Resilience in Emergencies or War.” This project is designed to validate the ~~completion~~effectiveness of ~~the~~our ~~Merger~~proposed heterogeneous resilient network architecture.

~~The Company and IXAQ will incur significant transaction and transition costs in connection with the Merger.~~33

~~The Company~~We ~~and~~are ~~IXAQ~~continuing ~~have~~commercial ~~both incurred and expect to incur significant, non-recurring costs in connection~~ discussions with ~~consummating~~mobile ~~the~~network ~~Merger~~operators and ~~following~~ ~~the~~ecosystem ~~consummation~~vendors ofto ~~the~~secure ~~Merger.~~our ~~The~~first ~~Company~~revenue-generating ~~and~~contracts ~~IXAQ~~under ~~may~~this ~~also incur additional costs to retain key employees~~model. ~~Costs~~Concurrently, ~~incurred~~we inare ~~connection~~progressing ~~with~~in ~~the~~our ~~Merger~~negotiations ~~Agreement~~with ~~and~~financial ~~Merger~~partners ~~include~~to ~~legal,~~structure ~~tax,~~appropriate ~~accounting,~~working ~~consulting,~~capital ~~investment~~support. ~~banking~~While ~~and~~we ~~other~~remain ~~fees~~optimistic, ~~expenses,~~ ~~and~~there ~~costs,~~is ~~all~~no ofassurance ~~which~~at ~~have~~this ~~not~~time ~~been~~that ~~paid~~these bydiscussions ~~the Company or IXAQ before the closing of the Merger~~ will beresult ~~paid~~in byfinalized ~~the Combined Company following the closing~~agreements.

362. Hardware Sales with Value-Added Reseller of Bandwidth Services

If In the ~~Merger~~near ~~does~~term, ~~not~~to ~~meet~~manage ~~the~~working capital ~~expectations~~more ofefficiently, ~~investors~~we ormay ~~securities~~prioritize ~~analysts,~~direct ~~the~~hardware ~~market~~sales ~~price~~in place of ~~IXAQ’s~~leasing. ~~securities~~Under ~~(prior~~this tostructure, our revenue would be derived from the ~~closing),~~sale orof ~~the~~our ~~market~~Universal ~~price~~Terminals—both offor ~~the~~network ~~Combined~~resilience ~~Company’s~~and ~~Class~~NTN—along Awith ~~Common~~subscription-based ~~Stock~~bandwidth ~~after~~services from ~~the~~our ~~closing~~satellite operator partners, ~~may~~where ~~decline~~we act as a value-added reseller.

IfAlthough ~~the~~this ~~Merger~~model does not ~~meet~~provide the ~~expectations~~same level of ~~investors,~~recurring ~~the~~revenue ~~market~~as ~~price~~leasing, ofit ~~IXAQ’s~~offers ~~securities~~a ~~prior~~more toimmediate ~~the~~path ~~Closing~~to ~~may decline. The~~ market ~~values~~entry ofwithout ~~IXAQ’s securities at the time of the Merger may vary significantly from their prices on the date the Merger~~requiring ~~Agreement~~significant ~~was~~upfront ~~executed, or the date the Company’s Stockholders vote on the Merger~~capital. ~~Because~~Until ~~the~~suitable ~~number~~financing ofarrangements ~~shares~~are tosecured, bewe ~~issued~~anticipate ~~pursuant to~~that ~~the~~this ~~Merger~~model ~~Agreement~~ will ~~not~~ be ~~adjusted~~our toprimary ~~reflect~~operating structure. ~~any~~As ~~changes~~with in the ~~market~~leasing ~~price of IXAQ’s Class A Common Stock~~model, ~~the~~we ~~market value~~continue ofto ~~Class~~engage ~~A Common Stock issued~~ in ~~connection~~active discussions with ~~the~~potential ~~Merger~~customers ~~may~~but becannot ~~higher~~guarantee ~~or lower than~~ the ~~values~~successful completion of these ~~shares on earlier dates~~negotiations.

~~In addition, following the Merger, fluctuations in the price of securities of the Combined Company could contribute to the loss of all or part of your investment~~3. ~~The~~Revenue ~~valuation~~Sharing ascribed to the Company in the Merger may not be indicative of the price that will prevail in the trading market following the Merger. If an active market for IXAQ’s securities develops and continues, the trading price of the securities of the Combined Company following the Merger could be volatile and subject to wide fluctuations in response to various factors, some of which are beyond the Combined Company’s control. Any of the factors listed below could have a material adverse effect on ~~the~~Bundled ~~Combined~~Connectivity Company’s securities and the Combined Company’s securities may trade at prices significantly below the price paid for them by investors in the Company or IXAQ. In such circumstances, the trading price of the Combined Company’s securities may not recover and may experience a further decline.Solutions

~~Broad market~~To ~~and~~further ~~industry~~enhance ~~factors~~flexibility ~~may~~and competitiveness, ~~materially~~we ~~harm~~also ~~the~~plan ~~market~~to ~~price~~engage ofin ~~securities,~~revenue-sharing ~~irrespective~~agreements ofwith aselected ~~company’s~~satellite ~~operating performance~~operators. ~~The~~ ~~stock~~In ~~market~~this ~~in general~~model, ~~and~~mobile ~~Nasdaq~~network operators inmay ~~particular,~~procure ~~have~~bundled ~~experienced~~solutions ~~price and volume fluctuations~~ that ~~have~~include ~~often~~both ~~been~~hardware ~~unrelated or~~and ~~disproportionate~~connectivity tounder ~~the~~a ~~operating~~single ~~performance~~service ~~of the particular companies affected~~plan. ~~The~~In ~~trading~~some ~~prices and valuations of these stocks~~scenarios, ~~and~~ of the billing ~~Combined~~entity ~~Company’s securities,~~ may ~~not~~ be ~~predictable.~~Aerkomm—particularly Awhen ~~loss~~delivering ofmulti-orbit, ~~investor~~multi-carrier ~~confidence~~solutions—while in ~~the market for the stock of other companies that investors perceive to be similar to the Combined Company could depress the Combined Company’s stock price regardless of its business~~others, ~~prospects, financial conditions, or results of operations. A decline in~~ the ~~market price of the Combined~~satellite ~~Company’s~~operator ~~securities~~may ~~also~~serve ~~could~~as ~~adversely affect~~ the ~~Combined~~primary ~~Company’s~~service ~~ability to issue additional securities and to obtain additional financing in the future~~provider.

37In either case, revenue generated from these bundled services will be shared between Aerkomm and the respective satellite operator. The compact size, low power consumption, and high performance of our Universal Terminals make satellite communications viable in locations that were previously impractical or uneconomical. By enabling net-new deployments, especially in remote or underserved areas, we expect to earn a proportional share of the revenue generated at these newly accessible sites.

~~Risks~~While early-stage discussions are underway ~~Related~~with toboth ~~Our~~customers ~~Business~~and satellite partners under this model, we cannot provide assurance at this time that these will result in signed contracts or revenue realization.

~~Operational Risks~~Our Contracts with Civilian Telecommunications Partners

We ~~depend~~ onoperate ~~manufacturing~~as ~~relationships~~a ~~and~~satellite atelecommunications ~~broad~~provider in ~~set~~Japan ofand ~~suppliers~~Taiwan, ~~some~~offering ofboth ~~whom~~systems ~~provide~~integration usand ~~with limited~~value-~~source~~added ~~components~~services. ~~and~~This ~~parts, and~~dual-role ~~disruptions~~model inallows ~~these~~us ~~relationships may cause damage~~ to ~~our~~deliver ~~customer~~tailored ~~relationships or otherwise negatively impact our business. Although~~satellite ~~most~~connectivity ofsolutions ~~the~~and ~~components~~extend of our ~~products~~presence ~~are~~in ~~available~~strategically ~~from~~important ~~multiple~~civilian ~~vendors,~~telecommunications wemarkets. ~~have~~Our ~~several~~experience ~~single-source~~in ~~supplier relationships, either~~service ~~because~~design ~~alternative~~and ~~sources~~deployment ~~are~~within ~~not~~these ~~available~~regions orhas ~~because~~created ~~the~~a ~~relationship~~replicable isframework ~~advantageous~~that tosupports ~~us.~~future ~~Further~~geographic expansion, inenabled ~~recent~~by ~~years supply chains~~existing ~~globally~~relationships ~~have~~with ~~experienced~~satellite ~~stress~~operators ~~due~~and tothe adevelopment ~~range~~ of ~~factors~~new strategic partnerships.

~~There can~~In beTaiwan, noour ~~assurance~~subsidiary, ~~that~~Aerkomm ~~our~~Taiwan ~~suppliers~~Inc., in ~~will~~cooperation bewith ~~able~~its toexclusive ~~meet~~local ~~our~~agent ~~future~~EJECTT ~~requirements~~Inc. ~~for~~(Ejectt), ~~products~~was ~~and~~awarded ~~components~~the ininitial phase of a ~~timely~~government-backed ~~fashion.~~verification Inproject ~~addition,~~titled ~~the~~“Emerging ~~availability~~Technology ofApplication ~~many~~for ofEnhancing ~~the~~Communication ~~components~~Network weResilience ~~need~~in isEmergencies ~~dependent~~or inWar” ~~part~~by the Taiwan Telecom Technology Center (TTC) on ~~our~~August ~~ability~~9, to2023. ~~provide~~Our ~~our~~proposed ~~suppliers~~solution, ~~with~~submitted ~~accurate forecasts~~under ofthe ~~our~~project ~~future~~name ~~requirements.~~“Asynchronous Satellite ~~Delays~~Network orLeasing ~~lost~~and ~~revenue~~Transmission ~~could~~Service beProcurement ~~caused~~Project,” byis ~~other~~focused ~~factors~~on ~~beyond~~demonstrating ~~our~~the ~~control,~~effectiveness ~~including~~of ~~late~~a ~~deliveries~~heterogeneous byresilient ~~vendors~~network ofarchitecture ~~components,~~aimed orat ~~force~~improving ~~majeure~~communication ~~events~~robustness during crises.

The sale of our products and services may require a significant technical evaluation and commitment of capital and other resources by potential customers and end users, as well as delays frequently associated with end users’ internal procedures to deploy new technologies and to test and accept new technologies. For these and other reasons, the sales cycle associated with certain of our products is typically lengthy and is subject to a number of significant risks, such as end users’ internal purchasing reviews, as well as availability of capital for purchases, that are beyond our control.34

~~While we~~Further ~~believe~~strengthening our market presence in Asia, we ~~have~~entered into a ~~strong~~Distribution ~~foundation~~Partner toAgreement ~~compete,~~(DPA) itwith isEutelsat ~~uncertain~~OneWeb ~~whether~~Group in September 2024. This agreement authorizes our ~~strategies~~subsidiary, AERKOMM ~~will~~Japan, ~~attract~~to ~~the~~distribute ~~customers~~OneWeb’s orLow ~~generate~~Earth ~~the~~Orbit (LEO) satellite connectivity services in Japan’s commercial fixed and ~~revenue~~land ~~required~~mobile tomarkets, beas ~~successful.~~well ~~Certain~~as ~~potential~~in ~~customers~~Taiwan’s ~~were~~land ~~adversely~~mobile ~~impacted~~sector. byThe ~~the~~DPA ~~Covid~~enhances our service offerings with next-19generation ~~pandemic~~LEO capabilities and ~~the~~represents ~~resulting~~a ~~global economic~~significant ~~downturn~~commercial milestone. ~~Any~~It ~~future~~positions ~~economic~~us ~~slowdown~~for ~~could~~long-term ~~impede~~revenue growth and further validates our credibility ~~ability~~as toa ~~win~~key ~~and~~regional ~~retain~~player ~~customers~~in satellite communications.

~~Risks Related~~Acquisitions toand ~~Competition~~Dispositions

~~We have~~In ~~and~~our ~~expect~~fiscal toyear ~~encounter~~2023, ~~competition~~we ~~from~~announced ~~other~~the ~~solutions~~acquisition of ~~providers~~Mesh Tech, ~~some~~a developer of ~~whom~~distributed ~~may~~computing ~~have~~solutions. ~~more~~This ~~significant~~acquisition ~~resources~~enhanced ~~than~~our ~~us.~~software ~~Whether~~capabilities and distributed computing portfolio for both the Aerospace & Defense and Civilian Telecommunications segments, which we ~~are~~expect ~~successful~~to drive both customer acquisition and retention in ~~this~~the ~~business~~future. ~~model~~We ~~depends~~aim onto acontinue ~~number~~to ofevaluate ~~factors,~~opportunities ~~including:~~to advance our strategy and to better serve our customers and our partners through both acquisitions and dispositions in the future.

●Research ~~our~~& ~~ability~~Development ~~to establish the infrastructure to deploy and evolve our solutions effectively and continuously;~~(R&D)

●The industries in which we compete are subject to rapid technological developments, evolving standards, changes in customer requirements and continuing developments in the ~~features~~communications and networking environment. Our continuing ability to adapt to these changes, and ~~functionality~~to develop innovative satellite and communications technologies, and new and enhanced products and services, is a significant factor in maintaining or improving our competitive position and our prospects for growth. We continue to make significant investments in next-generation technologies and communications product and services development. We conduct the majority of our ~~offerings~~R&D ~~relative~~activities in-house and have R&D and engineering staff. Focused, efficient investments in research and development are important to ~~competing~~our ~~offerings~~future asgrowth ~~well~~and ascompetitive position in the marketplace. Our product development activities focus on products that we consider viable revenue opportunities to support all of our segments. Our research and development efforts are directly related to timely development of new and enhanced services and related products that are central to our core business strategy and our ability to ~~market~~drive ~~effectively;~~profitable and sustainable growth.

●The industries in which we compete are subject to rapid technological developments, evolving industry standards, changes in customer requirements, and new service and product introductions and enhancements. As a result, our success depends in part upon our ability, on a cost-effective and timely basis, to ~~engage~~continue into ~~successful~~enhance our ~~strategic~~existing ~~relationships~~services ~~with~~and ~~third~~to ~~parties~~develop ~~such~~and asintroduce ~~satellite~~new ~~operators~~products and services that improve performance and meet customers’ operational and cost requirements. Our current research and development activities relate to antennas, ~~defense~~modems, ~~contractors~~distributed computing, ~~telecommunications~~and ~~carriers~~multi-orbit service development, ~~component~~enhancing ~~makers~~our universal terminal product lines with new features desired by our customers, and ~~contract~~integrating ~~manufacturers;~~available geostationary orbit (GSO) and emerging non-geostationary satellite orbit (NGSO) products and services into our overall satellite communications offering.

38Intellectual Property Rights

●We currently hold intellectual property rights relating to various aspects of our hardware products, software and services. We believe that our ability to ~~meet~~compete effectively depends in part on our ability to protect these intellectual property rights and our proprietary information. We rely primarily on copyright and trade secret laws, as well as trademarks, service ~~assurance~~marks ~~commitments~~and ~~required~~trade bydress, ~~certain~~to ~~contracts;~~protect our valuable products and services. We use confidentiality undertakings and licensing arrangements to protect our intellectual property rights worldwide. In the future, when appropriate, we may seek to file patent applications to protect innovations arising from our research, development and design activities.

●Manufacturing ~~competing effectively for market share; and~~Operations

●We ~~deploying~~outsource ~~complete~~our ~~end-~~manufacturing operations to well-~~end~~known contract ~~solutions~~manufacturers ~~that~~located ~~meet~~primarily ~~the~~in ~~needs~~Taiwan ofand ~~the~~Japan, ~~marketplace~~and ~~generally~~we asaim ~~well~~to asengage manufacturing partners in North America, in the ~~particular~~future. We ~~requirements~~rely on third party foundries or companies that use third party foundries for manufacture of our ~~customers~~semiconductor ~~more~~devices ~~effectively~~that are Application Specific Integrated Circuits (“ASICs”). These foundries are located primarily in Taiwan. We also outsource printed circuit board production and ~~efficiently~~amorphous ~~than~~silicon ~~competitive~~or ~~solutions~~glass substrate semiconductor thin-film-transistor (TFT) manufacturing.

~~Risks Related to Acquisitions~~35

~~Acquisitions could~~Outsourcing ~~disrupt~~ our ~~business~~operations to manufacturers and foundries ~~seriously~~allows ~~harm~~us to reduce our ~~financial~~fixed ~~condition~~costs, maintain production flexibility. WeOur ~~will~~proprietary ~~continue~~products are manufactured to ~~consider~~our ~~acquisitions~~designs with ofstandard ~~businesses,~~and ~~products or~~custom ~~technologies~~components. InMost of the ~~event~~components ofare ~~any~~available ~~future~~from ~~acquisitions,~~multiple wesources. ~~could~~We ~~issue~~have ~~stock~~several ~~that~~single-sourced ~~would~~supplier relationships, ~~dilute~~either ~~our~~because ~~current~~alternative ~~stockholders’~~sources ~~percentage ownership,~~are ~~incur~~not ~~additional~~yet ~~debt,~~available ~~assume~~or ~~liabilities~~because orthe ~~incur~~relationship ~~large~~is ~~and~~advantageous ~~immediate~~to ~~write-offs~~us.

Our manufacturing operations are dependent on ~~operation~~relationships with these suppliers who are subject to occasional supply chain disruptions. As is the case across the industry, if key suppliers fail to provide timely and reliable supply of components, we could experience manufacturing delays that could adversely affect our consolidated results of operations in a material way. In an effort to mitigate supply chain exposure, we have increased our inventory over historical levels and will monitor whether adjustments to inventory levels are necessary to mitigate any ~~acquired~~future ~~business~~exposures. ~~also~~Further, a ~~involves~~range ~~numerous~~of ~~risks~~conditions and circumstances beyond our control such as global conflicts, ~~including~~recessionary ~~but~~economic ~~not~~conditions ~~limited~~in various regions of the world or a recurrence of the Covid-19 pandemic could disrupt the availability of raw materials and components as well as our capacity to: make and distribute our products.

●Raw ~~problems combining the acquired operations~~Materials, ~~technologies,~~Components orand ~~products;~~Services

●We ~~unanticipated~~purchase ~~costs;~~raw materials and most of the components used in our manufacturing processes, such as printed circuit boards, injection-molded plastic parts, machined metal components, connectors and housings. In addition, we purchase third party services, predominantly networking and mobile broadband services, to support the delivery of our solutions. The materials, molds and dies, subassemblies and components purchased from other manufacturers, and other materials and supplies used in our manufacturing processes are generally available from multiple sources. We believe there is a sufficient number of acceptable vendors for the components we purchase. We regularly evaluate both domestic and foreign suppliers for quality, dependability and cost effectiveness. From time to time, the cost and availability of materials and services is affected by the demands of other industries, as well as other factors.

●Whenever ~~diversion~~practical, we seek to establish multiple sources for the purchase of ~~management’s~~raw ~~attention~~materials, components and services to achieve competitive pricing, maintain flexibility, reduce tariff exposure, and protect against supply disruption. When possible, we employ a company-wide procurement strategy designed to reduce the purchase price of materials, purchased components and services. For reasons of quality assurance, scarcity or cost effectiveness, certain components and raw materials used in the manufacturing of our products, as well as certain services utilized in the delivery of our solutions, are available only from a limited number of suppliers or from a sole source supplier. We work with our ~~core~~suppliers ~~business;~~to develop contingency plans and redundancy intended to ensure continuity of supply while maintaining high quality and reliability. In some cases, we established long-term supply contracts with our suppliers.

●Due ~~difficulties~~to ~~integrating~~the ~~businesses~~scarcity or market volatility of certain raw materials, purchased components and services, we may not be able to quickly re-establish additional or replacement sources for certain components, materials or services. In the event that we are unable to obtain sufficient quantities of raw materials or components, or unable to obtain sufficient access to the services needed to deliver our solutions on commercially reasonable terms or in ~~different~~a ~~countries~~timely manner, our ability to manufacture and ~~cultures;~~deliver our products and services on a timely and cost-competitive basis may be compromised, which may have a material adverse effect on our business, financial condition and results of operations. We also experienced increased raw material costs. We are continuing to monitor global developments, including the impact of inflation, and are prepared to implement actions that we determine to be necessary to sustain our business.

~~● effectively implementing internal control over financial reporting;~~Competition

●We ~~adverse~~operate ~~effects~~in onthe ~~existing~~rapidly ~~business~~evolving ~~relationships~~communications technology ~~with~~industry, ~~suppliers~~where innovation, regulatory developments, and ~~customers;~~emerging customer needs continually shape the competitive landscape. As of 2024, the market for multi-orbit satellite connectivity—encompassing Low Earth Orbit (LEO), Medium Earth Orbit (MEO), and Geostationary Orbit (GEO)—continues to grow, driven by increasing demand for secure, resilient, and high-throughput connectivity across the defense, aerospace, and civilian telecommunications sectors.

●We ~~risks~~operate ~~associated~~in collaboration with ~~entering~~companies ~~markets~~that develop satellite terminals, connectivity platforms, and integrated ground segment solutions. Many of these companies specialize in ~~which~~specific market weverticals ~~have~~such noas maritime, mobility, tactical communications, or ~~limited~~public ~~prior~~safety, ~~experience;~~often offering proprietary architectures or tailored form factors. Aerkomm differentiates itself by developing lightweight, modular, and power-efficient universal terminals optimized for both Network Resiliency and Non-Terrestrial Network (NTN) applications, supported by software-defined modems and open-architecture design. As a full-systems integrator, Our capabilities have positioned the company to navigate competitive pressures effectively while maintaining strong partnerships.

~~● potential loss of key employees, particularly those of the acquired business~~36

We continue to differentiate ourselves ~~cannot~~through ~~assure~~our ~~that~~partnership-first approach. In 2024, we ~~will~~have bestrengthened ~~able~~relationships towith ~~integrate~~major ~~successfully~~global ~~any~~satellite ~~businesses~~operators, ~~products~~including Eutelsat OneWeb, ~~technologies~~Viasat, orTelesat ~~personnel~~(Lightspeed) ~~that~~and weAmazon’s ~~have~~Project ~~acquired or~~Kuiper, ~~that~~enabling weus ~~might~~to ~~acquire~~deliver inbundled ~~the~~and ~~future~~value-added services using their networks. ~~Any~~These ~~such~~partnerships ~~integration~~allow ~~failure~~us ~~could~~to ~~disrupt~~access ~~our~~flexible ~~business~~bandwidth across LEO, MEO, and ~~have~~GEO aconstellations without ~~material~~vertically ~~adverse~~integrating, ~~effect~~allowing onAerkomm to remain carrier-neutral while optimizing performance for end users. As these ~~our~~satellite ~~consolidated~~partners ~~financial~~expand ~~condition~~coverage and ~~results~~capacity, ofwe ~~operations~~are positioned to scale alongside them to support new markets and use cases.

~~Moreover~~A key competitor in the LEO space is Starlink, ~~from~~whose ~~time~~extensive tosatellite ~~time~~network, wedeveloped ~~may~~by ~~enter~~SpaceX, ~~into~~plays ~~negotiations~~a ~~for~~significant arole ~~proposed~~in ~~acquisition~~the growing LEO market. Starlink’s LEO constellation is focused on providing low-latency, ~~but~~high-throughput beservices ~~unable~~and orhas ~~unwilling~~positioned toitself ~~consummate~~as a major player in both the ~~acquisition under~~commercial ~~consideration~~and government sectors. ~~This~~While ~~could~~Starlink’s ~~cause~~LEO ~~significant~~network ~~diversion~~is a competitive force, our emphasis on multi-orbit solutions and interoperability across LEO, MEO, and GEO constellations provides a broader and more adaptable approach to meeting the diverse needs of ~~management~~our customers. SpaceX’s Starlink, ~~attention~~alongside Eutelsat OneWeb, Viasat, Telesat (Lightspeed), and ~~out-of-pocket~~Amazon’s ~~expenses~~Project ~~for~~Kuiper, ~~us.~~are Weall ~~could~~potential partners, but ~~also~~securing becommercial ~~exposed~~agreements towith ~~litigation~~these ascompanies athat ~~result~~define ofmutually ~~any~~beneficial ~~consummated~~partnerships oris ~~unconsummated~~not ~~acquisition~~guaranteed.

~~Risks~~The emergence of ESA (electronically steered array) ~~Related~~terminals from companies like Starlink has significantly increased competitive pressure on traditional parabolic antennas. However, these incumbents, including companies like KVH, Intellian, and Cobham SATCOM, remain well-established with loyal customers and extensive global networks. Despite the competitive pressure from ESA terminals, We continue to ~~Economic~~focus on universal terminal solutions that integrate with multiple constellations, offering flexibility, adaptability, and ~~Market~~efficiency ~~Conditions~~across various market verticals.

~~Our business~~We ~~and~~also ~~operating~~face ~~results~~competition ~~are~~from ~~affected~~providers byof ~~the~~high-performance antennas ~~global~~and ~~business~~connectivity ~~environment~~solutions ~~and~~for ~~economic~~specialized ~~conditions,~~sectors ~~including~~like ~~changes~~commercial inaviation. ~~interest rates,~~Notable ~~consumer~~competitors ~~credit~~in ~~conditions,~~this ~~consumer~~segment ~~debt~~include ~~levels,~~Ball Aerospace ~~consumer~~(recently ~~confidence,~~acquired ~~rates~~by ofBAE ~~inflation,~~Systems) ~~unemployment~~and ~~rates~~ThinKom, ~~energy~~both ~~costs,~~of ~~geopolitical issues~~which ~~and~~specialize ~~other~~in ~~macro~~low-~~economic factors. For example~~profile, high-performance ~~unemployment~~antenna ~~levels~~systems for harsh or ~~energy~~regulated ~~costs~~environments. ~~may~~These ~~impact~~companies ~~our~~provide ~~customer~~robust ~~base~~solutions infor ~~our~~commercial ~~civilian telecommunications~~aviation ~~segment~~connectivity, bybut ~~reducing~~Aerkomm’s ~~the~~modular, multi-orbit ~~mobile~~terminal ~~network~~strategy ~~operators’~~differentiates ~~end-users’~~us ~~discretionary~~with ~~income~~open-architecture flexibility and ~~affecting~~enhanced ~~their ability~~performance toacross ~~subscribe~~a ~~for~~range ~~cell~~of ~~phone services~~networks.

39Additionally, we may face indirect competition from vertically integrated satellite service providers that develop proprietary terminal hardware and bundle them with satellite services. However, as the satellite communications market shifts toward open ecosystems and carrier-neutral approaches, we believe Aerkomm’s role as a neutral integrator and hardware innovator will become increasingly valuable.

~~Our consolidated~~In ~~operating~~summary, ~~results~~while ~~and~~the ~~financial~~competitive ~~condition~~landscape ~~may~~remains intense beand ~~adversely~~continues ~~impacted~~to byevolve, ~~worldwide economic~~Aerkomm ~~conditions~~is ~~and~~well-positioned ~~credit~~through ~~tightening.~~its Iffocus ~~worldwide~~on ~~economic~~interoperability, ~~conditions~~innovation, ~~experience~~and apartnership-driven ~~significant~~service ~~downturn,~~delivery. ~~these~~We ~~conditions~~will ~~may~~continue ~~make~~investing itin ~~difficult~~next-generation orterminals ~~impossible~~and ~~for~~working ~~our~~with ~~customer and~~global ~~suppliers~~satellite partners to ~~accurately~~expand ~~forecast~~our footprint and ~~plan~~deliver ~~future business activities~~reliable, ~~which~~high-performance ~~may~~solutions ~~cause them~~ to ~~slow~~meet orgrowing ~~suspend~~customer ~~spending on products and services~~needs.

~~Our customer~~Government or suppliers may find it difficult to gain sufficient credit or service existing credit in a timely manner, which could result in an impairment of their ability to process or place orders with us, deliver inventory or services to us in the case of suppliers or to make timely payments to us for previous purchases in the case of customers. If this occurs, our revenue may be reduced, thereby having a negative impact on our results of operations. In addition, we may be forced to increase our allowance for credit losses and our days sales outstanding may increase, which would have a negative impact on our cash position, liquidity and financial condition.Procurement

~~To the~~Substantial ~~extent~~portions weof ~~incur~~our ~~debt,~~current weand ~~may~~future revenues beare ~~unable~~and towill ~~adhere~~be togenerated ~~financial~~from ~~covenants~~contracts orand tosubcontracts ~~service~~with ~~the~~government ~~debt~~agencies. ~~These~~Such ~~risks~~contracts ~~associated~~are ~~with~~subject ~~credit~~to a competitive ~~and~~bid ~~debt~~process and are ~~more~~awarded ~~pronounced~~on ~~for~~ the ~~parties~~basis ~~with~~of ~~whom~~technical wemerit, dopersonnel ~~business~~qualifications, experience and ~~ourselves~~price. inWe ~~the~~also ~~current~~receive ~~environment~~some ~~which~~contract awards ~~has~~involving ~~seen~~special ~~interest rates~~technical ~~rise~~capabilities ~~rapidly,~~on ~~especially~~a ifnegotiated, ~~they~~noncompetitive ~~remain~~basis ~~elevated~~due ~~for~~to anour ~~extended~~unique ~~period~~mix of ~~time.~~communication Weproducts, satellite ~~cannot~~services, ~~predict~~engineering ~~either~~capabilities ~~the~~and ~~timing~~technical orexpertise ~~duration of~~in anspecialized ~~economic~~areas. ~~downturn~~Our infuture ~~the~~revenues ~~economy,~~and ~~should~~income ~~one~~could ~~occur.~~be ~~Any~~materially affected ~~downturn~~by ~~could~~changes ~~have~~in government procurement policies and related oversight, a ~~material~~reduction ~~adverse~~in ~~impact~~expenditure onfor ~~our~~the ~~business,~~products ~~results~~and services ofwe ~~operations~~provide, ~~financial~~and ~~condition~~other ~~and~~risks ~~prospects~~generally associated with federal government contracts.

Our commercial aerospace segment similarly depends on the economic health and willingness of our customers and potential customers, principally commercial airlines, to make and adhere to capital and financial commitments to purchase our products and services. During periods of slowing global economic growth or recession, our customers or key suppliers may experience deterioration of their businesses, cash flow shortages and difficulty obtaining financing or insolvency. Existing or potential customers may reduce or postpone spending in response to tighter credit, reduced consumer demand, negative financial news or declines in income or asset values, which could have a material negative effect on the demand for our products and services.37

~~For~~We provide products ~~example,~~and ~~the~~services ~~business~~under ~~and~~government ~~financial~~contracts ~~condition~~that ofusually ~~our~~require ~~commercial~~performance ~~airline~~over ~~customers~~a ~~were~~period ~~materially~~of ~~impacted~~several ~~during~~months ~~the~~to ~~COVID-19~~multiple ~~pandemic~~years. Long-term bycontracts ~~the~~may ~~severe~~be ~~decline~~impacted inbased ~~global~~on ~~air~~when ~~travel.~~the Ingovernment ~~addition,~~appropriated ~~current~~funds ~~supply~~are ~~chain~~available and ~~labor~~to ~~market~~what ~~challenges~~level, ~~and~~which ~~inflationary~~may ~~pressures~~result in a delay, ~~have~~reduction ~~negatively~~or ~~affected~~termination ~~and~~of these contracts. Government contracts may ~~continue~~be toperformed ~~negatively~~under ~~affect~~cost-reimbursement ~~our~~contracts, ~~performance~~time-and-materials contracts asand ~~well~~fixed-price ascontracts. ~~the~~Cost-reimbursement ~~performance~~contracts ofprovide ~~our~~for ~~suppliers~~reimbursement of costs and ~~customers~~payment of a fee. ~~Moreover,~~ ~~natural~~The ~~disasters~~fee ~~(including~~may be ~~those~~either ~~resulting~~fixed ~~from~~by ~~climate~~the ~~change),~~contract ~~political~~or ~~instability~~variable, ~~civil~~based ~~unrest,~~upon ~~terrorist~~cost ~~activity~~control, ~~acts~~ ~~of war~~quality, delivery and ~~public~~the ~~health~~customer’s ~~issues~~subjective ~~such~~evaluation of as the ~~COVID-19~~work. ~~pandemic~~Government orcontracts ~~epidemics~~may ~~could~~be ~~disrupt~~terminated, ~~supplies~~in ~~and~~whole ~~raise~~or ~~prices globally which,~~ in ~~turn~~part, ~~may~~at ~~have~~the ~~adverse~~convenience ~~effects~~of on the ~~world~~relevant ~~and~~government Uoffice.S. ~~economies.~~If ~~Any~~a oftermination for ~~these~~convenience ~~factors~~occurs, ~~could~~the ~~result~~government inoffice ~~reduced~~generally ~~demand~~is obligated to pay for, ~~and~~work ~~pricing pressure~~completed ~~on,~~or ~~our~~services ~~products~~rendered and/or ~~services~~the cost incurred by us under the contract, which ~~could~~may ~~reduce~~include ~~our~~a ~~revenues~~fee ~~and~~or ~~adversely~~allowance ~~affect~~for ~~our~~profit. ~~business,~~Contracts ~~financial~~with ~~condition~~prime ~~and~~contractors ~~results~~may have negotiated termination ofschedules ~~operations~~that apply. InWhen ~~addition~~we participate as a subcontractor, ~~U.S.~~we ~~credit~~are ~~and~~at ~~capital~~risk ~~markets~~if ~~have~~the ~~experienced~~prime ~~significant~~contractor ~~dislocations~~does ~~and~~not ~~liquidity~~perform ~~disruptions~~its ~~from~~contract. Similarly, ~~time~~when towe ~~time~~act as a prime contractor employing subcontractors, we are at risk if a subcontractor does not perform its subcontract.

~~Uncertainty or~~Government volatility in credit or capital markets may negatively impact our ability to access additional debt or equity financing or to refinance existing indebtedness in the future on favorable terms or at all. Any of these risks could impair our ability to fund our operations or limit our ability to expand our business, which could have a material adverse effect on our business, financial condition and results of operations.Regulation

~~Excluding non-recurring~~We ~~revenues~~are insubject to the ~~second~~laws ~~quarter~~and regulations of the ~~2019~~U.S. and ~~2021~~foreign ~~from~~jurisdictions ~~affiliates,~~in which we ~~have~~provide ~~incurred~~and ~~operating~~sell ~~losses~~our insatellite ~~every~~communication ~~quarter~~products ~~since~~and services, including those of wethe ~~launched~~Taiwan and Japan. Many of the countries where our ~~business~~customers use our products and ~~may~~services ~~continue~~have tolicensing ~~incur~~and ~~quarterly~~regulatory ~~operating~~requirements for ~~losses~~the importation and use of satellite communications and reception equipment, ~~which~~including ~~could~~the ~~negatively~~use ~~affect~~of such equipment in territorial waters, the ~~value~~transmission of ~~our~~satellite ~~company~~signals on certain radio frequencies, the transmission of VoIP services using such equipment, and, in some cases, the reception of certain video programming services.

~~Excluding~~In the U.S., many of these matters are regulated ~~non-recurring~~by ~~revenues~~the ~~that~~Federal Communications Commission. In other countries or foreign jurisdictions where we ~~earned~~may ~~from~~aim ~~affiliates~~to provide and ~~one~~sell ~~non-affiliate~~our insatellite communication ~~2021~~products and services in the ~~second~~future, ~~quarter~~many of ~~fiscal~~these ~~2019,~~matters weare ~~have incurred~~regulated ~~operating~~by ~~losses~~the ~~since~~telecom ~~our~~regulatory ~~inception~~authority inof ~~2014,~~each ~~and~~national government. weWhile ~~may~~there ~~not~~are beattempts ~~able~~ to ~~generate~~harmonize ~~sufficient~~and ~~revenue~~standardize inrequirements ~~the~~among ~~future~~international toregulators, ~~generate~~there is still a significant ~~operating~~amount ~~income.~~of Weheterogeneity ~~also~~in ~~expect~~licensing ~~our~~conditions ~~costs~~and toenforcement ~~increase~~on ~~materially~~a incountry-by-country ~~future~~basis. ~~periods~~Furthermore, ~~which~~due ~~could~~to ~~negatively~~the ~~affect~~rapid ~~our~~pace ~~future~~of ~~operating~~advancement ~~results.~~of Wesatellite ~~expect~~communications totechnology, ~~continue~~the toregulatory ~~expend~~landscape ~~substantial~~is ~~financial~~similarly ~~and~~evolving, ~~other~~so ~~resources~~we onare ~~the~~at ~~continued~~risk ~~development~~of ~~and~~our ~~future~~technology ~~expansion~~not fitting ofneatly ~~our~~into ~~business.~~an ~~The~~existing ~~amount~~licensing category and ~~timing~~thereby ofslowing ~~these~~our ~~costs~~access ~~are~~to ~~subject~~a togiven ~~numerous~~market ~~variables~~as ~~and~~we ~~such~~seek ~~initiatives~~a ~~may~~path ~~require~~to ~~additional~~service ~~funding~~which remains in compliance with all local regulations.

~~In addition,~~Radio-frequency we may incur significant costs in connection with our pursuit of next generation satellite communications technology or other new technologies such as our glass antenna. With respect to our growth, significant variables may include costs related to sales and ~~marketing~~ ~~activities~~Communications ~~and~~Regulation ~~administrative~~- ~~support functions, government defense spending, equipment subsidies to airlines and additional~~International ~~legal~~Telecommunication ~~and~~Union regulatory expenses associated with operating in the international commercial aviation market. In addition, we expect to incur additional general and administrative expenses, including legal and accounting expenses, related to being a public company.(ITU)

~~Our~~The orbital location and frequencies for our partner ~~investments~~satellites ~~may~~are ~~not~~subject ~~result~~to the ITU’s regulations, including its frequency registration and coordination procedures, and its various provisions on spectrum usage. Those procedures are specified in ~~revenue~~the orITU ~~growth~~Radio Regulations and seek to facilitate shared international use of limited spectrum and orbital resources in ~~our~~a ~~business~~manner that avoids harmful interference. IfAmong weother ~~fail~~things, the ITU regulations set forth procedures for establishing international priority with respect to ~~grow~~the ~~our~~use ~~overall~~of ~~business~~such resources, deadlines for bringing satellite networks into use in order to maintain such priority, and ~~generate~~coordination ~~revenue~~rights and obligations with respect to other networks, ~~our~~which ~~financial~~vary depending ~~condition~~on ~~and~~whether ~~results~~such ofnetworks ~~operations~~have ~~would~~higher beor ~~adversely~~lower ~~affected~~ITU priority.

40The ITU regulations provide allocations or designations for how spectrum can be used for various purposes, and whether such uses operate on a primary or secondary basis with respect to one another. Secondary uses may not cause harmful interference to primary uses and may not claim interference protection from primary uses. The orbital arc is becoming increasingly congested with respect to such ITU filings and the satellite networks operated under those filings.

~~Our~~The ITU’s Radio Regulations are also subject ~~company~~to ischange inat ~~the~~periodic ~~development~~ITU ~~stage~~World Radiocommunication Conferences (WRCs), and ~~has~~their aapplication ~~limited~~is ~~operating~~determined ~~history,~~by ~~which~~various ~~may~~governing ~~make~~bodies within itthe ~~difficult~~ITU. toWRCs ~~evaluate~~typically ~~our~~are ~~current~~convened ~~business and~~approximately ~~predict~~every ~~our~~four ~~future~~years, ~~performance~~with the last one occurring at the end of calendar year 2023.

~~Our company~~Other ~~and~~Legal our core business are in the development stage and we continue to face all of the risks and uncertainties associated with a new and unproven business. The limited operating history of our business may make it difficult to accurately evaluate the business and predict its future performance. Any assessments of our current business and predictions that we or you make about our future success or viability may not be as accurate as they could be if we had a longer operating history.Requirements

~~We have~~As ~~encountered~~a ~~and~~result ~~will~~of ~~continue~~our international operations, we are subject to ~~encounter~~a ~~risks~~number ~~and~~of ~~difficulties~~additional ~~frequently~~legal ~~experienced~~requirements, byincluding ~~growing~~the ~~companies~~U.S. inForeign ~~rapidly~~Corrupt ~~changing industries~~Practices Act, the U.K. Bribery Act and the customs, ~~size~~export, trade sanctions and ~~nature~~anti-boycott laws of ~~our~~the ~~market~~United ~~opportunity~~States, ~~will~~including ~~change~~those asadministered weby ~~scale~~the ~~our~~U.S. ~~business~~Customs and ~~increase~~Border Protection, ~~deployment~~the Bureau of ~~our~~Industry ~~service. If~~and weSecurity, dothe ~~not~~Department ~~address~~of ~~any~~Commerce, the Department of State, and the ~~foregoing~~Office ~~risks~~of ~~successfully~~Foreign Assets Control of the Treasury Department, ~~our~~as ~~business~~well ~~will~~as bethose ~~harmed~~of other nations in which we do business.

~~We expect to rely on a few key customers for all of our initial revenue.~~38

Our ~~near~~ ~~term,~~operations ~~future~~are ~~business~~also ~~will~~subject beto ~~substantially~~various ~~dependent~~domestic and oninternational ~~our~~privacy ~~relationship~~laws, ~~with~~including athe ~~few~~European ~~key~~Union’s ~~customers.~~General ~~There~~Data ~~can~~Protection beRegulation. noThese ~~assurance~~laws ~~that we~~and ~~will~~regulations, beas well ~~able~~as tothe ~~maintain~~interpretation ~~our~~and ~~relationship~~application ~~with~~of these ~~customers.~~laws Ifand weregulations, are ~~unable~~subject to ~~maintain~~change, and ~~renew~~any ~~our~~such ~~relationship~~change ~~with~~may ~~these customers,~~affect orour ifability to ~~our~~offer ~~arrangement~~and issell ~~modified~~existing soand ~~that~~planned ~~the~~satellite ~~economic~~communications ~~terms~~products ~~become~~and ~~less~~services. ~~favorable~~For tomore usinformation, ~~then~~see ~~our~~“Further ~~business~~Risks Related ~~would~~to beGovernment ~~materially adversely affected~~Regulation.”

~~The Markets~~ITEM in1A. ~~Which~~RISK ~~We Compete Are Highly Competitive and Our Competitors May Have Greater Resources than Us~~ FACTORS.

~~The markets~~Investment in ~~which~~our wecommon ~~compete~~stock ~~are~~involves ~~highly~~a ~~competitive~~high degree ~~and~~of ~~competition~~risk. isYou ~~increasing.~~should Incarefully ~~addition,~~consider ~~because~~each of the ~~markets~~following inrisks, ~~which~~together wewith ~~operate~~all other information set forth in this annual ~~are~~report, ~~constantly~~including ~~evolving~~the ~~and~~financial ~~characterized~~statements byand ~~rapid~~the ~~technological~~related ~~change~~notes, itbefore ismaking ~~difficult~~a ~~for~~decision us to ~~predict~~buy ~~whether,~~our ~~when~~common ~~and~~stock. byIf ~~whom~~any of the following ~~new~~risks ~~competing~~actually ~~technologies~~occurs, ~~products~~our orbusiness ~~services~~could ~~may~~ be ~~introduced~~harmed. ~~into~~In that case, the trading price of our ~~markets.~~common ~~Currently,~~stock wecould ~~face~~decline, ~~substantial~~and ~~competition~~you inmay ~~each~~lose all or part of ~~our~~your ~~segments~~investment.

~~Many of~~Risks ~~our~~Related ~~competitors have significant competitive advantages, including strong customer relationships, more experience with regulatory compliance, greater financial and management resources and access~~ to technologies not available to us. Many of our competitors are also substantially larger than we are and may have more extensive engineering, manufacturing and marketing capabilities than we do. As a result, these competitors may be able to adapt more quickly to changing technology or market conditions or may be able to devote greater resources to the ~~development,~~Merger ~~promotion~~with ~~and sale of their products.~~IXAQ

~~Our ability~~The toMerger ~~compete~~is insubject ~~each~~to ofconditions, ~~our~~including certain ~~segments~~conditions that may ~~also~~not be ~~adversely~~satisfied ~~affected by limits~~ on ~~our~~a ~~capital~~timely ~~resources~~basis, ~~and~~if ~~our~~at ~~ability to invest in maintaining and expanding our market share~~all.

~~Our Anticipated~~Unless ~~Reliance~~waived onby ~~U.S.~~the ~~Government~~parties to the Merger Agreement, and ~~Foreign~~subject ~~Governments~~to ~~Contracts~~applicable ~~and~~law, ~~Approvals~~the ~~Exposes~~consummation Usof the Merger is subject to ~~Significant~~several ~~Risks~~conditions set forth in the Merger Agreement.

WeThe Merger Agreement provides that IXAQ’s ~~expect~~obligation ~~our~~to ~~defense~~consummate ~~segment~~the Merger is toconditioned ~~represent~~on, aamong ~~significant~~other ~~percentage~~things, that as of ~~our~~the ~~total~~closing ~~revenues~~of inthe Merger, the ~~future~~combined ~~and~~company resulting isfrom ~~likely~~the toMerger ~~consist~~(the of“Combined ~~both U.S.~~Company”) ~~Government~~has ~~and~~obtained ~~Foreign~~at ~~Government~~least $45,000,000 in(“PIPE ~~particular,~~Minimum ~~Taiwanese~~Investment ~~government~~Amount”) in ~~applications.~~financing ~~Therefore,~~from ~~any~~investors ~~significant~~in ~~disruption~~the orform ~~deterioration~~ of ~~our~~(i) ~~relationship~~the ~~with~~proceeds ~~the~~of ~~U.S.~~private ~~Government~~placements orin ~~with~~IXAQ ~~relevant~~in ~~Foreign~~connection ~~Governments~~with ~~would~~consummation ~~significantly~~of ~~reduce~~the ~~our~~Merger (the ~~revenues.~~“PIPE ~~U.S.~~Investments”) ~~Government~~ and ~~Foreign~~(ii) ~~Government~~the ~~business~~proceeds ~~exposes~~of usthe SAFE investments in Company prior to ~~various~~consummation ~~risks,~~of ~~including:~~the Merger (the “SAFE Investments”).

-As ~~changes~~of the date of this filing, agreements have been signed with investors for $35 million in ~~governmental~~PIPE ~~procurement~~Investment ~~legislation~~commitments ~~and~~to ~~regulations~~PIPE Investments and ~~other~~no ~~policies,~~SAFE ~~which~~Investment ~~may~~have ~~reflect~~yet ~~military~~been made. There is no assurance that subscriptions for the remaining $10 million PIPE Minimum Investment Amount. The actual additional amounts committed to PIPE Investments or funded to the Company under SAFE Investments will depend on market conditions and ~~political~~other ~~developments;~~factors.

-If ~~unexpected~~the ~~contract~~PIPE orMinimum ~~project~~Investment ~~terminations~~Amount or ~~suspensions;~~other conditions to IXAQ’s obligation to consummate the Merger are not met, and such conditions are not waived by IXAQ under the terms of the Merger Agreement, then the Merger Agreement could terminate, and the proposed Merger may not be consummated.

-If ~~unpredictable~~such ~~order~~condition ~~placements~~is waived and the Merger is consummated with less than the PIPE Minimum Investment Amount, ~~reductions~~the orcash ~~cancellations;~~held by the Combined Company upon consummation of the closing may not be sufficient to allow the Combined Company to operate and pay its bills as they become due. Any such event in the future may negatively impact the analysis regarding the Combined Company’s ability to continue as a going concern at such time.

-There ~~reductions~~can orbe ~~delays~~no assurance that the shares of the Combined Company’s Common Stock that will be issued in ~~government~~connection ~~funds~~with ~~available~~the Merger will be approved for ~~our~~listing ~~projects~~on ~~due~~Nasdaq, or toanother ~~government~~U.S ~~policy~~national ~~changes~~exchange, ~~budget~~following ~~cuts~~the closing, or ~~delays,~~that ~~changes~~the inCombined ~~available~~Company ~~funding,~~will ~~reductions~~be inable ~~defense~~to ~~expenditures~~comply ~~and~~with ~~contract~~the ~~adjustments;~~continued listing rules of Nasdaq, or another U.S. national exchange.

-In ~~delays~~connection inwith the ~~obtaining~~Merger ~~government~~and ~~approvals~~as ora ~~clearances~~condition to ~~receive~~the ~~information~~Company’s ~~subject~~obligations to ~~export~~complete ~~control;~~the Merger, the Combined Company will be required to demonstrate compliance with Nasdaq’s initial listing requirements. The Company and IXAQ cannot be sure that the Combined Company will be able to meet those initial listing requirements or qualify to list on another national securities exchange. Even if the Combined Company’s Common Stock is approved for listing on Nasdaq, the Combined Company may not meet the Nasdaq continued listing requirements following the Merger.

- adverse changes in U.S. Government and Foreign Government export control laws that restrict our ability to conduct joint research activities with, or receive technical information from, US based defense contractor companies;39

-The announcement of the ~~ability~~proposed ofMerger could ~~competitors~~disrupt tothe ~~protest~~Company’s ~~contractual~~relationships ~~awards;~~with its customers, suppliers, business partners and others, as well as its operating results and business generally.

-Whether ~~additional~~or ~~costs~~not orthe ~~penalties~~Merger ~~arising~~and ~~from~~related ~~post-award~~transactions are ~~contract~~ultimately ~~audits;~~consummated, as a result of uncertainty related to the proposed transactions, risks relating to the impact of the announcement of the Merger on the Company’s business include the following:

-● ~~the~~its ~~reduction~~employees inmay ~~the~~experience ~~value~~uncertainty ofabout ~~our~~their ~~contracts~~future asroles, awhich ~~result~~might ofadversely affect the ~~routine~~Combined ~~audit~~Company’s ~~and~~ability ~~investigation~~to ofretain ~~our~~and ~~costs~~hire bykey ~~U.S.~~personnel ~~Government~~and ~~agencies~~other ~~or, similarly, by Foreign Government agencies~~employees;

-● ~~higher-than-expected~~customers, ~~final costs~~suppliers, ~~particularly~~business ~~relating~~partners toand ~~software~~other parties with which we maintain business relationships may experience uncertainty about the Company’s future and ~~hardware~~seek ~~development~~alternative relationships with third parties, ~~for~~seek ~~work~~to ~~performed~~alter ~~under~~their ~~contracts~~business ~~where~~relationships wewith ~~commit~~us or fail to ~~specified~~extend ~~deliveries~~an ~~for~~existing arelationship ~~fixed~~with ~~price~~the Company; and

-● ~~limited~~The ~~profitability~~Company ~~from~~has ~~cost-reimbursement~~expended ~~contracts~~and ~~under~~will ~~which~~continue ~~the~~to ~~profit~~expend issignificant ~~limited~~fees toand aexpenses ~~specified~~for ~~amount;~~professional services and other transaction costs in connection with the proposed Merger.

-If ~~unpredictable~~any ~~cash~~of ~~collections~~the ofaforementioned ~~unbilled~~risks ~~receivables~~were ~~that~~to ~~may~~materialize, they becould ~~subject~~lead to ~~acceptance~~significant ofcosts ~~deliverables~~which bymay impact the ~~customer~~Company and, ~~contract~~in ~~close-out~~the ~~procedures~~future, ~~including~~the ~~government~~Combined ~~approval~~Company’s results of ~~final~~operations and ~~indirect~~cash ~~rates;~~available to fund its business.

-We ~~competition~~will ~~with~~be ~~programs~~subject ~~managed~~to bycontractual ~~other~~restrictions while ~~government~~the ~~contractors~~Merger ~~for~~is ~~limited resources and for uncertain levels of funding;~~pending.

-The ~~significant~~Merger ~~changes~~Agreement inrestricts ~~contract~~the ~~scheduling~~Company orfrom making ~~program~~certain ~~structure,~~expenditures ~~which~~and ~~generally~~taking ~~result~~other inspecified ~~delays~~actions orwithout ~~reductions~~the inconsent ~~deliveries;~~of ~~and~~IXAQ until the Merger occurs. These restrictions may prevent the Company from pursuing attractive business opportunities that may arise prior to the completion of the Merger.

-The ~~intense~~Company ~~competition~~and ~~for~~IXAQ ~~available~~will ~~U.S.~~incur ~~Government,~~significant transaction orand ~~Foreign~~transition ~~Government,~~costs ~~business necessitating increases~~ in ~~time~~connection ~~and~~with ~~investment~~the ~~for design and development~~Merger.

41The Company and IXAQ have both incurred and expect to incur significant, non-recurring costs in connection with consummating the Merger and following the consummation of the Merger. The Company and IXAQ may also incur additional costs to retain key employees. Costs incurred in connection with the Merger Agreement and Merger include legal, tax, accounting, consulting, investment banking and other fees, expenses, and costs, all of which have not been paid by the Company or IXAQ before the closing of the Merger will be paid by the Combined Company following the closing.

~~We must~~If ~~comply with and are affected by laws and regulations relating to~~ the ~~award,~~Merger ~~administration~~does ~~and~~not ~~performance~~meet of U.S. Government, and Foreign Government, contracts. Government contract laws and regulations affect how we do business with our customers and, in some instances, impose added costs on our business, including the ~~establishment of compliance procedures. A violation of specific laws and regulations~~expectations ~~could result in the imposition~~ of ~~fines~~investors ~~and~~or ~~penalties~~securities analysts, the ~~termination~~market ofprice ~~our contracts or debarment from bidding on contracts. Substantially all~~ of ~~our~~IXAQ’s ~~potential~~securities ~~U.S.~~(prior ~~Government~~to ~~or Foreign Government backlog scheduled for delivery could be terminated at~~ the ~~convenience of the U.S. Government~~closing), or ~~a Foreign Government, because our potential contracts with~~ the ~~U.S.~~market ~~Government,~~price ~~or a Foreign Government, typically would be anticipated to provide that orders may be terminated with limited or no penalties. If we are unable to address any~~ of the ~~risks~~Combined ~~described~~Company’s ~~above,~~Class orA ifCommon weStock ~~were~~after ~~to lose all or a substantial portion of our sales to~~ the ~~U.S. Government~~closing, ormay ~~to a Foreign Government, it could materially harm our business and impair the value of our common stock~~decline.

~~The funding~~If ofthe ~~U.S.~~Merger ~~Government,~~does ornot ~~Foreign~~meet ~~Government~~the expectations of investors, ~~programs~~the ismarket ~~subject~~price of IXAQ’s securities prior to ~~congressional~~the ~~appropriations,~~Closing ormay ~~such~~decline. ~~similar~~The ~~mechanism~~market invalues of IXAQ’s securities ~~each~~at ~~country.~~the Intime of the ~~U.S.,~~Merger ~~Congress~~may ~~generally~~vary ~~appropriates~~significantly ~~funds~~from their prices on athe ~~fiscal~~date ~~year~~the ~~basis~~Merger ~~even~~Agreement ~~though~~was aexecuted, ~~program~~or ~~may~~the ~~extend~~date ~~over~~the ~~several~~Company’s ~~fiscal~~Stockholders ~~years~~vote on the Merger. ~~Foreign~~Because ~~Governments~~the ~~may~~number ~~appropriate~~of ~~funds~~shares ~~with~~to abe ~~materially~~issued ~~similar~~pursuant orto ~~materially~~the ~~different~~Merger ~~approach.~~Agreement ~~Consequently,~~will ~~programs are~~not ~~often~~be ~~only~~adjusted ~~partially~~to ~~funded~~reflect any ~~initially~~changes ~~and~~in ~~additional~~the ~~funds~~market ~~are~~price ~~committed~~of ~~only~~IXAQ’s asClass ~~Congress~~A Common Stock, the market value of Class A Common Stock issued in connection with the Merger may be higher or lower than the ~~relevant~~values ~~Foreign~~of ~~Government~~these ~~body, makes~~shares ~~further~~on ~~appropriations~~earlier dates.

~~We may~~In ~~not~~addition, befollowing ~~successful~~the Merger, fluctuations in ~~our~~the ~~efforts~~price of securities of the Combined Company could contribute to ~~develop~~the ~~and~~loss ~~monetize~~of ~~new~~all ~~products~~or ~~and~~part ~~services~~of ~~that~~your ~~are~~investment. ~~currently~~The valuation ascribed to the Company in ~~development,~~the ~~including value-added~~Merger ~~resale~~may not be indicative of ~~satellite~~the ~~bandwidth~~price that will prevail in ~~certain~~the ~~geographies~~trading ~~where~~market wefollowing ~~are~~the ~~already~~Merger. ~~licensed~~If oran ~~intend~~active market tofor beIXAQ’s ~~licensed,~~securities ~~our~~develops ~~multi-orbit universal~~and ~~satellite~~continues, ~~communications~~the ~~terminals~~trading ~~that~~price ~~incorporate~~of ~~flat~~the ~~panel~~securities ~~antennas~~of ~~(FPAs)~~the orCombined ~~electronically~~Company ~~steered~~following ~~arrays~~the ~~(ESAs)~~Merger ~~with~~could ~~both~~be ~~hardware~~volatile and ~~software~~subject ~~defined~~to ~~modems,~~wide ~~communications~~fluctuations ~~systems~~in ~~for~~response ~~manned~~to ~~and~~various ~~unmanned~~factors, ~~aerospace~~some ~~and~~of ~~defense~~which ~~platforms,~~are ~~system~~beyond the Combined Company’s ~~integration~~control. ~~for~~Any ~~manned~~of ~~and~~the ~~unmanned~~factors ~~aerospace~~listed ~~and~~below ~~defense~~could ~~platforms,~~have ~~our~~a ~~proprietary,~~material ~~full-dominance~~adverse ~~glass~~effect ~~semiconductor~~on ~~antenna~~the Combined Company’s securities and the Combined ~~(also~~Company’s ~~referred~~securities tomay astrade ~~“FGSA”),~~at ~~distributed~~prices ~~content~~significantly ~~delivery~~below ~~network~~the ~~(“CDN”),~~price ~~distributed~~paid ~~computing~~for them by investors in the Company or ~~mesh~~IXAQ. In such ~~computing~~circumstances, ~~applications~~the ~~and~~trading ~~inflight~~price ~~entertainment~~of the Combined Company’s securities may not recover and ~~connectivity~~may ~~services;~~experience a further decline.

In order to meet the evolving needs of our future customers and partners, we must continue to develop new products and services that are responsive to those needs. Our ability to realize the benefits of enabling our products, and to use these applications, including monetizing our services at a profitable price point, depends, in part, on the adoption and utilization of such applications by different potential customers including militaries, governments, defense contractors, airlines, other aircraft operators and other companies in the aviation industry such as aircraft equipment suppliers, mobile network operators, other telecommunications service operators and other companies in the telecommunications industry such as communications equipment suppliers, and we cannot be certain that our potential customers, outlined above will adopt such offerings in the near term or at all.40

WeBroad market and ~~also~~industry ~~expect~~factors tomay ~~continue~~materially toharm ~~rely~~the onmarket ~~third~~price ~~parties~~of tosecurities, ~~operate~~irrespective ~~and~~of ~~maintain~~a ~~the~~company’s ~~satellites~~operating ~~and~~performance. ~~satellite~~The ~~constellations~~stock market toin begeneral, ~~used~~and toNasdaq ~~provide bandwidth~~in toparticular, ~~our~~have ~~potential~~experienced ~~customers,~~price and wevolume ~~cannot~~fluctuations bethat ~~certain~~have ~~that~~often ~~such~~been ~~satellites~~unrelated or ~~satellite~~disproportionate to ~~constellations~~the ~~will~~operating beperformance ~~capable~~of ~~to meet~~ the ~~service~~particular ~~level~~companies ~~requirements~~affected. The trading prices and valuations of these stocks, ~~quality~~and of ~~service~~the ~~expectations~~Combined Company’s orsecurities, ~~service~~may ~~reliability~~not ~~metrics~~be ~~necessary~~predictable. toA ~~meet~~loss of investor confidence in the ~~needs~~market ~~our~~for ~~potential customers.~~the Ifstock weof ~~are~~other ~~not~~companies ~~successful~~that investors inperceive ~~our~~to ~~efforts~~be similar to ~~develop~~the ~~and~~Combined ~~monetize~~Company ~~new~~could ~~products~~depress ~~and~~the ~~services,~~Combined ~~including~~Company’s ~~our~~stock ~~operations-oriented communications~~price ~~services,~~regardless ~~our~~of ~~future~~its business , prospects, financial ~~condition~~conditions, ~~and~~or results of operations. ~~would~~A bedecline ~~materially~~in the market price of the Combined Company’s securities also could adversely ~~affected~~affect the Combined Company’s ability to issue additional securities and to obtain additional financing in the future.

~~Our development~~Risks ~~and~~Related ~~implementation of our semiconductor glass antenna, while poised~~ to ~~offer significant~~Our advantages in terms of performance and cost-effectiveness, introduces additional layers of risk. This technology involves highly specialized and novel manufacturing processes that may encounter operational hurdles, higher than anticipated production costs, or delays in scaling production to meet market demands. Additionally, our semiconductor glass antenna’s reliance on proprietary technology and materials might limit rapid adaptation in the face of changing industry standards or emerging competitive technologies. Given the rapid evolution of technology in the aerospace and telecommunications sectors, there is a risk that our newly developed technology may become obsolete more quickly than expected, or fail to gain sufficient market acceptance, thereby negatively impacting our competitive position and financial performance.Business

~~Our semiconductor~~Operational ~~glass antenna technology is not yet commercialized and has not been widely applied or developed for the markets being targeted by our company.~~ Risks

~~As an~~We ~~emerging~~depend ~~technology,~~on ~~our~~manufacturing ~~semiconductor~~relationships ~~glass~~and ~~antenna~~a broad ~~has~~set ~~not~~of ~~undergone~~suppliers, ~~extensive~~some ~~field testing~~of ~~across~~whom ~~different~~provide ~~market~~us ~~applications~~with limited-source components and parts, ~~which~~and isdisruptions ~~crucial~~in ~~for~~these ~~establishing~~relationships ~~its~~may ~~viability~~cause ~~and~~damage ~~reliability~~to inour ~~real-world~~customer ~~scenarios~~relationships or otherwise negatively impact our business. ~~The~~Although ~~unproven~~most ~~nature~~of the components of our ~~semiconductor~~products ~~glass antenna~~are inavailable ~~operational~~from ~~environments~~multiple vendors, ~~particularly~~we inhave ~~space~~several ~~and~~single-source ~~satellite~~supplier ~~communications—a~~relationships, ~~sector~~either because alternative sources are not available ~~marked~~or bybecause ~~exceptionally~~the ~~high~~relationship ~~requirements~~is ~~for~~advantageous ~~accuracy~~to ~~and~~us. ~~durability—presents~~Further, in recent years supply chains globally have experienced stress due to a ~~substantial~~range ~~risk~~of factors.

~~Without established~~There ~~performance~~can ~~data~~be ~~and~~no ~~market~~assurance ~~acceptance,~~that ~~the~~our ~~potential~~suppliers ~~for~~will be able to meet our ~~semiconductor~~future ~~glass~~requirements ~~antenna~~for toproducts ~~meet~~and components in a timely fashion. In addition, the ~~specific~~availability ~~needs~~of many of ~~satellite~~the ~~operators~~components ~~and~~we ~~other~~need ~~telecommunications~~is ~~stakeholders~~dependent ~~remains~~in ~~uncertain.~~part ~~This~~on ~~untested~~our ~~status~~ability ~~could~~to ~~delay~~provide ~~adoption~~our ~~and~~suppliers ~~affect~~with accurate forecasts of our ~~ability~~future requirements. Delays toor ~~attract~~lost ~~partnerships~~revenue ~~and~~could ~~customers~~be ~~necessary~~caused ~~for~~by ~~successful~~other ~~market~~factors ~~entry~~beyond ~~and~~our ~~scaling~~control, including late deliveries by vendors of components, or force majeure events.

42The sales of our products and services may require a significant technical evaluation and commitment of capital and other resources by potential customers and end users, as well as delays frequently associated with end users’ internal procedures to deploy new technologies and to test and accept new technologies. For these and other reasons, the sales cycle associated with certain of our products is typically lengthy and is subject to a number of significant risks, such as end users’ internal purchasing reviews, as well as the availability of capital for purchases, that are beyond our control.

WeWhile we believe we have a strong foundation to ~~cannot~~compete, ~~accurately~~it ~~predict~~is ~~future~~uncertain ~~revenues~~whether our strategies will attract the customers or ~~profitability~~generate inthe revenue required to be successful. Certain potential customers were adversely impacted by the ~~emerging~~Covid-19 ~~market~~pandemic ~~for~~and ~~our~~the ~~semiconductor~~resulting ~~glass~~global ~~antenna~~economic ~~technology~~downturn. Any future economic slowdown could impede our ability to win and retain customers.

~~The~~Risks ~~market~~Related for advanced satellite communication technologies is rapidly evolving. As is typical of a rapidly evolving industry, demand and market acceptance for newly developing technologies like our semiconductor glass antenna are subject to ~~a high level of uncertainty. Moreover, since the market for satellite antenna technology is evolving, it is difficult to predict the future growth rate, if any, and size of this market.~~Competition

~~Because of~~We ~~our~~have ~~limited development history with our semiconductor glass antenna~~ and ~~the~~expect ~~emerging~~to ~~nature~~encounter ofcompetition ~~the~~from other ~~markets~~solutions ~~in which we expect to compete~~providers, wesome ~~are~~of ~~unable~~whom tomay ~~accurately~~have ~~forecast~~more ~~any~~significant ~~revenues~~resources orthan ~~our~~us. ~~profitability~~Whether ~~that~~ we ~~might~~are ~~generate~~successful ~~through~~in ~~the~~this ~~marketing~~business ~~of our semiconductor~~model ~~glass~~depends ~~antenna~~on ~~technology.~~a ~~The~~number ~~market for our semiconductor glass antenna products and the long-term acceptance~~ of ~~our technology are uncertain~~factors, ~~and our ability to attract and retain qualified personnel with industry expertise, particularly in engineering, sales, and marketing, is uncertain.~~including:

~~To the~~● ~~extent~~our weability ~~are unsuccessful in generating revenues from FGSA, we may be required~~ to ~~appropriately~~establish ~~adjust~~the ~~spending~~infrastructure to ~~compensate~~deploy ~~for any~~and ~~unexpected~~evolve ~~revenue shortfall, or to reduce~~ our ~~operating~~solutions ~~expenses,~~effectively ~~causing~~and ~~us to forego potential revenue-generating activities.~~continuously;

~~We may~~● ~~face challenges in~~ the ~~development~~features and ~~monetization~~functionality of ~~new~~our ~~products~~offerings ~~and~~relative ~~services,~~to ~~specifically~~competing ~~related~~offerings toas well as our ~~universal~~ability ~~terminals.~~to market effectively;

~~In order~~● ~~to meet the ever-changing needs of~~ our ~~target~~ability ~~customers,~~to weengage ~~must~~in ~~continuously~~successful ~~innovate~~strategic ~~and~~relationships ~~introduce~~with ~~new~~third ~~offerings~~parties ~~that~~such ~~cater to~~as ~~their~~satellite ~~requirements. However~~operators, ~~the~~defense ~~successful~~contractors, ~~adoption~~telecommunications ~~and~~carriers, ~~utilization~~component ofmakers ~~these products depend on the interest~~ and ~~acceptance~~contract ~~of our target customers. There is no guarantee that they will embrace our offerings in the near future or at all.~~manufacturers;

Additionally, as we strive to provide comprehensive and efficient multi-orbit broadband connectivity, we may need to collaborate with third-party developers or technology providers to enhance our product and service offerings and ensure compatibility with our potential partners’ satellites and ground infrastructure. However, uncertainties exist regarding the seamless integration and effectiveness of these technical collaborations in meeting the unique needs of our potential customers.41

~~Should we~~● ~~encounter~~our ~~obstacles~~ability ~~in effectively developing and monetizing new products and services, specifically pertaining~~ to ~~our~~meet ~~universal terminals,~~service itassurance ~~could~~commitments ~~significantly~~required ~~impact~~by ~~our~~certain ~~business prospects, financial performance, and overall success in the market.~~contracts;

~~We may~~● ~~not~~competing beeffectively ~~able~~for tomarket ~~grow~~share; ~~our business with our current~~ and potential satellite and satellite constellation partners or to successfully negotiate agreements with satellite and satellite constellation partners whose bandwidth and services we do not currently resell or otherwise distribute;

~~Currently, our~~● ~~primary~~deploying ~~existing~~complete orend-to-end ~~potential~~solutions ~~satellite~~that ~~partners~~meet include SES (including SES Space & Defense), Viasat Inc., Intelsat SA, Eutelsat Group (including Eutelsat Communications, Eutelsat SA and Eutelsat OneWeb), Rivada Space Networks, Astranis Space Technologies Corp. and Telesat Corp., but we aim to have the ~~technical~~needs capability to provide links to any and all satellites and constellations, subject to future potential commercial agreements. We are currently in, or planning, discussions or negotiations with certain of ~~our~~the ~~existing~~marketplace orgenerally ~~potential~~as ~~satellite partners~~well ~~to serve~~ as athe ~~value-added~~particular ~~reseller~~requirements of ~~their~~our ~~services~~customers inmore ~~certain~~effectively ~~countries~~ and ~~regions, but~~efficiently dothan ~~not~~competitive ~~yet have in place any such value-added reseller agreements~~solutions.

~~We have~~Risks ~~acquired~~Related ~~terminal~~to equipment and satellite connectively and related services from SES and also have participated in demonstration and testing with SES under a confidential agreement with our development customer since 2022Acquisitions

~~Negotiations with~~Acquisitions ~~prospective~~could ~~satellite~~disrupt ~~partners~~our ~~require~~business ~~substantial time, effort~~ and ~~resources. The time required to reach a final agreement with~~seriously aharm ~~satellite operator is unpredictable and may lead to variances in~~ our ~~operating~~financial ~~results from quarter to quarter~~condition. We ~~may~~will ~~ultimately~~continue ~~fail in our negotiations and any such failure could harm our results of operations due~~ to, ~~among~~consider ~~other~~acquisitions ~~things, a diversion~~ of ~~our focus and resources~~businesses, ~~actual~~products ~~costs~~or ~~and opportunity costs of pursuing these opportunities~~technologies. ToIn the ~~extent~~event ~~that~~of any ~~negotiations with current or~~ future ~~potential satellite partners are unsuccessful~~acquisitions, orwe ~~any~~could ~~new~~issue ~~agreements~~stock ~~contain~~that ~~terms~~would ~~that~~dilute ~~are~~our ~~less~~current ~~favorable~~stockholders’ topercentage usownership, ~~our~~incur ~~growth~~additional ~~prospects~~debt, assume ~~could~~liabilities beor ~~materially~~incur large and ~~adversely~~immediate ~~affected~~write-offs.

~~We may~~Our ~~not~~operation beof ~~able~~any toacquired ~~grow our~~ business ~~with~~also ~~our current and potential aerospace and defense partners or to successfully negotiate agreements~~involves ~~with~~numerous ~~aerospace~~risks, ~~and~~including ~~defense~~but ~~partners to which we do~~ not ~~currently~~limited ~~provide our technologies or services;~~to:

~~Our primary~~● ~~potential~~problems ~~aerospace~~combining &the ~~defense~~acquired ~~partners include prime contractors like Kratos Defense~~operations, ~~Lockheed Martin~~technologies, Anduril, Shield.AI, Boeing Defense, Airbus Defense, Northrop Grumman, General Atomics and RTX, although we do not yet have in place binding agreements to serve as a joint venture partner, mentor-protégé partner, subcontractor, vendor, or system integrator with these prime contractors. We are currently in discussions with certain of our potential aerospace & defense partners to enter into binding contracts together. Currently, we also have a number of potential aerospace & defense customers, including militaries and governments, regarding providing our products ~~and services to meet their classified programs and missions.~~;

~~.Negotiations with~~● ~~prospective~~unanticipated aerospace & defense partners and potential customers require substantial time, effort and resources. The time required to reach a final agreement with an aerospace & defense prime contractor or a military customer is unpredictable and may lead to variances in our operating results from quarter to quarter. We may ultimately fail in our negotiations and any such failure could harm our results of operations due to, among other things, a diversion of our focus and resources, actual costs and opportunity costs of pursuing these opportunities. To the extent that any negotiations with current or future potential aerospace & defense partners or customers are unsuccessful, or any new agreements contain terms that are less favorable to us, our growth prospects could be materially and adversely affected.;

43● diversion of management’s attention from our core business;

~~We may~~● ~~not~~difficulties beintegrating ~~able~~businesses toin ~~grow~~different ~~our~~countries ~~business with our current airline partners or successfully negotiate agreements with airlines~~ and ~~other partners or grow our additional businesses.~~cultures;

~~Currently, our~~● ~~only~~effectively ~~airline~~implementing ~~partners~~internal ~~are~~control ~~MJet~~over ~~GmbH,~~financial an Austrian-based private jet operator, MJet, Hong Kong Airlines Limited, a Hong Kong-based airline, or Hong Kong Airlines, and Vietjet Aviation Joint Stock Company, a Vietnam-based airline, or Vietjet, although we have not yet begun to provide our universal terminals for aviation with associated bandwidth services or our distributed content system for airlines to these companies under our agreement with them. We are currently in advanced negotiations or discussions with certain other airline partners to provide our products and services on additional aircraft in their fleets. We have no assurance that these efforts will be successful.reporting;

~~Negotiations with~~● ~~prospective~~adverse ~~airline~~effects ~~partners~~on require substantial time, effort and resources. The time required to reach a final agreement with an airline is unpredictable and may lead to variances in our operating results from quarter to quarter. We may ultimately fail in our negotiations and any such failure could harm our results of operations due to, among other things, a diversion of our focus and resources, actual costs and opportunity costs of pursuing these opportunities. In addition, the terms of any future agreements could be materially different than the terms included in our existing ~~agreement~~business ~~with~~relationships ~~Hong Kong Airlines. To the extent that any negotiations~~ with ~~current~~suppliers ~~or future potential airline partners are unsuccessful, or any new agreements contain terms that are less favorable to us, our growth prospects could be materially~~ and ~~adversely affected.~~customers;

~~We may~~● ~~not~~risks beassociated ~~able to successfully negotiate agreements~~ with ~~potential~~entering ~~civilian~~markets ~~telecommunications~~in ~~partners~~which ~~for~~we ~~our~~have ~~backhaul~~no ~~solutions~~ or ~~grow~~ ~~this~~limited ~~additional~~prior ~~business.~~experience; and

~~The varying~~● ~~awareness~~potential ~~and~~loss ~~sense~~ of ~~urgency~~key ~~regarding~~employees, ~~network~~particularly ~~resilience~~those inof ~~different countries will directly impact~~ the ~~growth~~acquired ~~of our mobile backhaul~~ business. Network resilience is the ability of a network to withstand and recover from unexpected disruptions, ensuring uninterrupted service and minimizing downtime. However, the importance placed on network resilience can differ across countries due to varying factors such as geographical location, infrastructure stability, and previous experiences with network failures.

InWe cannot be sure that we will be able to integrate ~~countries~~successfully ~~where~~any ~~there~~businesses, isproducts, atechnologies, ~~high~~or ~~level~~personnel ofthat ~~awareness~~we have acquired or that we might acquire in the future. Any such integration failure could disrupt our business and have a ~~sense~~material adverse effect on our consolidated financial condition and results of ~~urgency~~operations. ~~regarding~~Moreover, ~~network~~from ~~resilience~~time to time, ~~there~~we ismay aenter ~~greater~~into ~~demand~~negotiations for ~~robust~~ ~~mobile~~a ~~backhaul~~proposed ~~solutions.~~acquisition, ~~Customers~~but inbe ~~these~~unable ~~regions~~or ~~prioritize~~unwilling to consummate the ~~reliability~~acquisition ~~and~~under ~~resilience~~consideration. This could cause significant diversion of ~~their~~management’s ~~networks,~~attention ~~driving~~and ~~the~~out-of-pocket expenses ~~adoption~~for ofus. ~~mobile~~We ~~backhaul~~could ~~technologies~~also ~~that~~be ~~offer~~exposed ~~built-in~~to ~~redundancy,~~litigation ~~failover~~as ~~mechanisms,~~a ~~and~~result ~~efficient~~of ~~disaster~~any ~~recovery~~consummated ~~capabilities~~or unconsummated acquisition.

~~Conversely, in~~Risks ~~regions~~Related ~~where~~to ~~network~~Economic ~~resilience~~and isMarket ~~not a primary concern or where there is limited awareness, the demand for advanced satellite mobile backhaul solutions may be relatively lower.~~Conditions

~~We are~~Our ~~dependent~~business onand ~~airline~~operating ~~partners~~results toare beaffected by ~~able~~the toglobal ~~access~~business ~~our~~environment ~~customers.~~and Weeconomic ~~expect~~conditions, ~~that~~including ~~future~~changes ~~payments~~in byinterest ~~these~~rates, ~~customers~~consumer ~~for~~credit ~~our~~conditions, ~~services~~consumer todebt belevels, ~~provided~~consumer toconfidence, ~~them~~rates ~~will~~of ~~account~~inflation, ~~for~~unemployment ~~most~~rates, ifenergy ~~not~~costs, ~~all~~geopolitical issues and other macro-economic factors. For example, ofhigh unemployment levels or energy costs may impact our ~~initial~~customer ~~revenues.~~base in our civilian telecommunications segment by reducing the mobile network operators’ end-users’ discretionary income and affecting their ability to subscribe for cell phone services.

~~Under our~~Our ~~existing~~consolidated ~~contract~~operating ~~with~~results ~~MJet,~~and ~~Hong~~financial condition ~~Kong~~may ~~Airlines~~be ~~and~~adversely ~~Vietjet,~~impacted weby ~~will~~worldwide ~~provide~~economic ~~our~~conditions ~~equipment~~and ~~for~~credit ~~installation~~tightening. ~~on,~~If ~~and~~worldwide ~~provide~~economic ~~our~~conditions ~~services~~experience toa ~~passengers~~significant ondownturn, athese ~~portion~~conditions ofmay ~~the~~make ~~aircraft~~it ~~operated~~difficult byor ~~these~~impossible ~~airlines.~~for Weour ~~expect~~customers toand ~~enter~~suppliers ~~into~~to ~~similar~~accurately ~~contracts~~forecast ~~with other airlines~~and inplan ~~the~~ future ~~but~~business ~~there~~activities, iswhich nomay ~~assurance~~cause ~~that~~them weto ~~will~~slow beor ~~successful~~suspend inspending ~~signing~~on upproducts ~~additional~~and ~~airline partners~~services.

We expect that revenue from the successful installation of our Aerkomm AirCinema cube on Hong Kong Airlines and Vietjet sometime in 2025 as well as the successful installation of our Aerkomm K++ System on MJet and Hong Kong Airlines in the fourth quarter of 2025 and first quarter of 2026 respectively, together with the monthly bandwidth charge, will account for a material portion of our projected initial revenue from commercial aviation once we begin our services.42

~~As of~~Our ~~the~~customers ~~date~~or ofsuppliers ~~this~~may ~~report,~~find weit dodifficult to ~~not~~gain ~~yet~~sufficient ~~have~~credit ~~any~~or ~~revenue~~service ~~from~~existing ~~equipment~~credit ~~sales~~in ~~and~~a ~~installation.~~timely ~~Our~~manner, ~~growth~~which ~~will~~could beresult ~~dependent~~in onan ~~our~~ impairment of their ability to ~~have~~process or ~~our~~place ~~equipment~~orders ~~installed~~with onus, deliver inventory or services to us in the ~~aircraft~~case of ~~airline~~suppliers, ~~partners~~or ~~and~~to ~~increased~~make ~~use~~timely payments to us for previous purchases in the case of customers. If this occurs, our ~~service~~revenue may be reduced, thereby having a negative impact on ~~installed~~our ~~aircraft~~results of operations. ~~Any~~In ~~delays~~addition, inwe ~~installations~~may ~~under~~be ~~these~~forced ~~contracts~~to ~~may~~increase ~~negatively~~our ~~affect~~allowance for credit losses and our ~~ability~~days tosales ~~grow~~outstanding may increase, which would have a negative impact on our ~~user~~cash ~~base~~position, liquidity and ~~revenue~~financial condition.

44To the extent we incur debt, we may be unable to adhere to financial covenants or to service the debt. These risks associated with credit and debt are more pronounced for the parties with whom we do business and ourselves in the current environment, which has seen interest rates rise rapidly, especially if they remain elevated for an extended period of time. We cannot predict either the timing or duration of an economic downturn in the economy, should one occur. Any downturn could have a material adverse impact on our business, results of operations, financial condition and prospects.

~~We will~~Our becommercial ~~dependent~~aerospace segment similarly depends on ~~backhaul~~the ~~partners~~economic health and willingness of our customers and potential customers, principally commercial airlines, to bemake ~~able~~and adhere to capital ~~access~~and financial commitments to purchase our ~~future~~products ~~customers~~and services. WeDuring ~~expect~~periods ~~that~~of ~~future~~slowing ~~payments~~global byeconomic ~~these~~growth ~~customers~~or ~~for~~recession, our ~~services~~customers toor bekey ~~provided~~suppliers may experience deterioration of their businesses, cash flow shortages and difficulty obtaining financing or insolvency. Existing or potential customers may reduce or postpone spending in response to ~~them~~tighter ~~will~~credit, ~~account~~reduced ~~for~~consumer demand, negative financial news or declines in income or asset values, which could have a ~~percentage~~material ofnegative effect on the demand for our ~~revenues~~products and services.

AsFor example, the business and financial condition of our commercial airline customers were materially impacted during the ~~date~~COVID-19 ofpandemic ~~this~~by ~~report~~the severe decline in global air travel. In addition, wecurrent dosupply ~~not~~chain ~~yet~~and ~~have~~labor ~~any~~market ~~revenue~~challenges ~~from~~and ~~equipment~~inflationary ~~sales~~pressures have negatively affected and ~~installation~~may continue to negatively affect our performance as well as the performance of our ~~mobile~~suppliers ~~backhaul~~and ~~business~~customers. ~~Our~~Moreover, natural disasters (including those ~~growth~~resulting ~~will~~from beclimate ~~dependent~~change), onpolitical ~~our~~instability, ~~ability~~civil tounrest, ~~have~~terrorist ~~our~~activity, ~~equipment~~acts ~~installed~~of war, and public health issues such as the COVID-19 pandemic or epidemics could disrupt supplies and raise prices globally which, in turn, may have adverse effects on ~~4G/5G~~the ~~mobile~~world and ~~base~~U.S. ~~stations~~economies. Any ~~delays~~of these factors could result in ~~installations~~reduced ~~negatively~~demand for, and pricing pressure on, our products and services, which ~~may~~could ~~affect~~reduce our ~~ability~~revenues toand ~~grow~~adversely affect our ~~user~~business, ~~base~~financial condition and ~~revenue~~results of operations. In addition, U.S. credit and capital markets have experienced significant dislocations and liquidity disruptions from time to time.

~~A failure~~In toaddition, ~~maintain~~recent ~~customers’~~policy ~~satisfaction~~shifts ~~with~~under ~~our~~the ~~equipment~~current U.S. oradministration ~~our~~led ~~service~~by ~~could~~President Donald Trump have aintroduced ~~material~~new ~~adverse~~dynamics ~~effect~~into the global economic and regulatory landscape. The administration’s positions on ~~our~~trade, ~~revenue~~tariffs, defense spending, taxation, and international alliances are creating both opportunities and ~~results~~uncertainties across global markets. These evolving policies may impact global supply chains, capital flows, regulatory approvals, and procurement cycles—particularly in sectors such as telecommunications, aerospace, and defense. As a result, we may face increased volatility in customer demand, delays in contract execution, or shifts in regulatory compliance requirements, all of which could adversely affect our operations., financial condition, and long-term growth prospects.

~~Our relationships~~Uncertainty ~~with~~or ~~our~~volatility ~~current~~in ~~and~~credit ~~future~~or ~~development~~capital markets ~~and~~may ~~commercialization~~negatively ~~partners~~impact ~~are~~our ~~critical~~ability to ~~the~~access ~~growth~~additional ~~and~~debt ~~ongoing~~or ~~success~~equity ~~of our~~financing ~~business.~~or Ifto ~~partners~~refinance ~~are~~existing ~~not~~indebtedness ~~satisfied~~in ~~with~~the ~~our~~future on ~~equipment~~favorable terms or ~~our~~at ~~service~~all. ~~for~~Any ~~any~~of ~~reason,~~these ~~they~~risks ~~may~~could ~~reduce~~impair ~~efforts~~our ability to ~~co-market~~fund our ~~service~~ tooperations ~~their~~or ~~customers,~~limit ~~which~~our ~~could~~ability ~~result~~to inexpand ~~lower~~our ~~usage and reduced revenue~~business, which could inhave ~~turn~~a ~~give~~material ~~our~~adverse ~~partners~~effect ~~the~~on ~~right~~our ~~to terminate~~business, ~~their~~financial ~~contracts~~condition ~~with~~and usresults of operations.

~~In addition,~~Excluding ~~airline~~non-recurring ~~dissatisfaction~~revenues ~~with~~in usthe second ~~for~~quarter ~~any~~of ~~reason,~~2019 ~~including~~and ~~delays~~2021 infrom ~~obtaining~~affiliates, ~~certification~~we ~~for~~have orincurred ~~installing~~operating ~~our~~losses ~~equipment, could~~in ~~negatively~~every ~~affect~~quarter ~~our~~since ~~ability~~we tolaunched ~~expand~~ our ~~service~~business toand may ~~additional~~continue ~~commercialization partners or lead~~ to ~~claims~~incur ~~for~~quarterly ~~damages~~operating losses, which ~~may~~ becould ~~material,~~negatively oraffect ~~termination~~the ~~rights~~value ~~under~~of our ~~existing or potential contracts with airline partners~~company.

AExcluding non-recurring revenues that we earned ~~failure~~from toaffiliates ~~maintain~~and ~~backhaul~~one ~~customers~~non-affiliate ~~satisfaction~~in ~~with~~2021 and in the second quarter of fiscal 2019, we have incurred operating losses since our ~~equipment~~inception in or2014, and we may not be able to generate sufficient revenue in the future to generate operating income. We also expect our ~~service~~costs to increase materially in future periods, which could ~~have~~negatively aaffect ~~material~~our ~~adverse~~future ~~effect~~operating results. We expect to continue to expend substantial financial and other resources on the continued development and future expansion of our ~~revenue~~ business. The amount and ~~results~~timing of ~~operations~~these costs are subject to numerous variables and such initiatives may require additional funding.

~~If our mobile backhaul solution fails to effectively ensure network resilience, customers may turn to competitors’ offerings. This would have a direct impact on our revenue and operations.~~43

~~Network~~In addition, we may incur significant costs in ~~resilience~~connection iswith aour ~~critical~~pursuit ~~requirement~~of ~~for~~next ~~customers~~generation ~~seeking~~satellite ~~mobile~~communications ~~backhaul~~technology ~~solutions.~~or ~~Backhaul~~other ~~customers~~new ~~will~~technologies ~~rely~~such onas our ~~services~~glass toantenna. ~~maintain~~With arespect ~~robust~~to our growth, significant variables may include costs related to sales and ~~reliable~~marketing ~~network~~activities ~~infrastructure~~and ~~that~~administrative ~~will~~support functions, begovernment ~~able~~defense spending, equipment subsidies to ~~withstand~~airlines ~~disruptions~~and additional legal and ~~ensure~~regulatory ~~uninterrupted~~expenses ~~connectivity.~~associated with operating Ifin ~~our~~the ~~solution~~international ~~does~~commercial ~~not~~aviation ~~meet~~market. ~~their~~In ~~expectations~~addition, inwe ~~terms~~expect ofto ~~network~~incur ~~resilience~~additional general and administrative expenses, ~~customers~~including legal ~~may~~and ~~perceive~~accounting itexpenses, asrelated to being a ~~risk~~public tocompany. ~~their~~Our ~~operations~~investments may not result in revenue or growth in our business. If we fail to grow our overall business and ~~seek~~generate ~~alternative~~revenue, ~~options~~our financial condition and results of operations would be adversely affected.

~~We may~~Our ~~experience~~company ~~network~~is ~~capacity constraints~~ in ~~our~~the ~~future~~development ~~operations regions~~ stage and wehas ~~expect~~a ~~capacity~~limited ~~demands~~operating ~~to increase~~history, ~~and~~which we may ~~in the~~make ~~future~~it ~~experience~~difficult ~~capacity constraints internationally. If we are unable~~ to ~~successfully~~evaluate ~~implement planned or future technology enhancements to increase~~ our ~~network~~current ~~capacity,~~business ~~or our airline partners do not agree to such enhancements, our ability to acquire~~ and ~~maintain~~predict ~~sufficient network capacity and~~ our ~~business~~future ~~could be materially and adversely affected~~performance.

~~All~~Our company and our core business are in the development ~~providers~~stage ofand ~~wireless~~we ~~connectivity~~continue ~~services,~~to ~~including~~face all ~~providers~~ of ~~in-flight~~the ~~connectivity~~risks ~~services,~~and ~~face~~uncertainties ~~certain~~associated ~~limits~~with ona ~~their~~new and unproven business. The limited operating history ~~ability~~of our business may make it difficult to ~~provide~~accurately ~~connectivity~~evaluate ~~service,~~the ~~including~~business ~~escalating~~and ~~capacity~~predict ~~constraints~~its ~~due~~future toperformance. ~~expanding~~Any ~~consumption~~assessments of ~~wireless~~our ~~services~~current business and ~~the~~predictions ~~increasing~~that ~~prevalence~~we ofor ~~higher~~you ~~bandwidth~~make ~~uses~~about ~~such~~our future success or viability may not be as ~~file~~accurate ~~downloads~~as ~~and~~they ~~streaming~~could ~~media~~be ~~content~~if we had a longer operating history. ~~The~~We ~~success~~have ofencountered ~~our~~and ~~business~~will continue to encounter risks and difficulties frequently experienced by growing ~~depends~~companies onin rapidly changing industries, and the size and nature of our ~~ability~~market toopportunity ~~provide~~will ~~adequate~~change ~~bandwidth~~as towe ~~meet~~scale ~~customer~~our ~~demands~~business ~~while~~and ~~in-flight~~increase deployment of our service. WeIf ~~may~~we ~~find~~do itnot ~~difficult~~address toany ~~provide~~of ~~this adequate~~the ~~bandwidth~~foregoing risks successfully, our business will be harmed.

~~As the~~We ~~number~~expect ofto ~~base~~rely ~~stations~~on ~~increases with the implementation of 4G/5G mobile backhaul, it indicates~~ a ~~growing~~few ~~user~~key ~~base. However, when~~customers ~~the~~for ~~network~~all ~~capacity~~of ~~reaches~~our ~~its~~ initial ~~design threshold, if we fail to timely develop new technologies to increase capacity and meet customer demands, such a failure will negatively impact our business~~revenue.

IfOur near term, future webusiness ~~are~~will ~~unable~~be tosubstantially ~~develop~~dependent ~~and~~on ~~introduce~~our ~~new~~relationship ~~technologies~~with ~~that~~a few key customers. There can ~~expand~~be ~~our~~no ~~network’s~~assurance ~~capacity,~~that ~~customers~~we ~~may~~will ~~experience~~be ~~congestion,~~able ~~slow~~to ~~data~~maintain ~~speeds,~~our ~~and~~relationship ~~poor~~with ~~service~~these ~~quality~~customers. ~~This~~If ~~can~~we ~~lead~~are unable to ~~customer~~maintain ~~dissatisfaction,~~and ~~churn~~renew our relationship with these customers, ~~and~~or aif our ~~negative~~arrangement ~~impact~~is onmodified so that the economic terms become less favorable to us, then our business would be materially adversely affected.

~~We face~~The ~~the~~Markets ~~risk of network capacity constraints~~ in ~~our~~Which ~~future~~We ~~CDN~~Compete ~~business~~Are ~~as the demand for high-speed content delivery continues to grow.~~Highly IfCompetitive ~~we are unable to effectively scale our network infrastructure to meet increasing capacity demands, this failure may result in degraded performance, slower content delivery,~~ and ~~potential~~Our ~~customer~~Competitors ~~dissatisfaction.~~May ToHave ~~mitigate~~Greater ~~this~~Resources ~~risk,~~than we need to continuously invest in expanding our network capacity and implementing advanced technologies to ensure optimal performance and scalability. Failure to do so may adversely impact our competitiveness and market position.Us

The markets in which we compete are highly competitive ~~demand~~and ~~for~~competition ~~satellite~~is ~~bandwidth~~increasing. ~~may~~In ~~decrease~~addition, orbecause ~~develop~~the ~~more~~markets ~~slowly~~in ~~than~~which we ~~expect.~~operate Weare ~~cannot~~constantly evolving and characterized by rapid technological change, it is difficult for us to predict ~~with~~whether, ~~certainty~~when ~~the~~and ~~development~~by ofwhom ~~the~~new ~~international~~competing ~~satellite~~technologies, ~~bandwidth~~products ~~market~~or inservices may ~~general~~be orintroduced ~~the~~into ~~general~~our ~~market~~markets. ~~acceptance~~Currently, ~~for~~we ~~our~~face ~~products~~substantial ~~and~~competition ~~services~~in each of our segments.

~~We have~~Many ~~invested~~of ~~significant~~our ~~resources~~competitors ~~towards~~have ~~the~~significant ~~roll-out~~competitive advantages, ofincluding ~~value-added~~strong ~~resale~~customer ofrelationships, ~~satellite~~more ~~bandwidth~~experience ~~services~~with regulatory compliance, ~~which~~greater ~~represent~~financial ~~part~~and management resources ofand ~~our~~access ~~growth~~to ~~strategy.~~technologies Wenot ~~face~~available ~~the~~to ~~risk~~us. ~~that~~Many ~~the~~of ~~U.S.~~our ~~and~~competitors ~~international~~are ~~markets~~also ~~for~~substantially ~~satellite~~larger ~~bandwidth~~than ~~services~~we are and may ~~decrease~~have ormore ~~develop~~extensive ~~more~~engineering, ~~slowly~~manufacturing orand ~~differently~~marketing capabilities than we ~~currently~~do. ~~expect,~~As ora ~~that~~result, ~~our~~these ~~services~~competitors may ~~not~~be ~~achieve~~able ~~widespread~~to ~~market~~adapt ~~acceptance.~~more Wequickly ~~may~~to changing betechnology ~~unable to~~or market ~~and~~conditions ~~sell~~or ~~our~~may ~~services~~be ~~successfully~~able ~~and~~to ~~cost-effectively~~devote greater resources to athe ~~sufficiently~~development, ~~large~~promotion ~~number~~and sale of ~~customers~~their products.

45Our ability to compete in each of our segments may also be adversely affected by limits on our capital resources and our ability to invest in maintaining and expanding our market share.

Our ~~business~~ ~~depends~~Anticipated Reliance on ~~the continued proliferation of satellite-based broadband connectivity as a critical business or program need for our potential customers~~U.S. ~~The growth in demand for satellite broadband internet access services also depends in part on the continued~~Government and ~~increased~~Foreign ~~use~~Governments ofContracts ~~manned~~ and ~~unmanned~~Approvals ~~airborne,~~Exposes ~~maritime~~Us ~~and~~to ~~land-based~~Significant ~~vehicles and platforms and the rate of evolution of data-intensive applications on such platforms and vehicles.~~Risks

~~If satellite~~We ~~bandwidth~~expect ~~ceases~~our todefense besegment ais ~~critical~~to ~~feature~~represent a insignificant ~~manned~~percentage ~~and~~of ~~unmanned~~our ~~platforms,~~total ifrevenues in the ~~rate~~future ofand ~~integration~~is likely to consist of ~~satellite~~both ~~bandwidth on~~U.S. ~~manned~~Government and ~~unmanned~~Foreign ~~platforms~~Government, in ~~decreases~~particular, orTaiwanese isgovernment ~~slower~~applications. ~~than expected~~Therefore, orany ifsignificant ~~the~~disruption ~~use~~or deterioration of ~~satellite~~our ~~bandwidth~~relationship ~~enabled~~with ~~devices~~the U.S. Government or ~~development of~~with ~~related~~relevant ~~applications~~Foreign ~~decreases~~Governments orwould ~~grows~~significantly ~~more~~reduce ~~slowly~~our ~~than~~revenues. ~~anticipated,~~U.S. ~~the~~Government ~~market~~and ~~for~~Foreign ~~our~~Government ~~services~~business exposes ~~may~~us beto ~~substantially~~various ~~diminished.~~risks, including:

~~Competition from~~● achanges ~~number~~in ofgovernmental ~~companies,~~procurement aslegislation ~~well~~and asregulations and other ~~market forces~~policies, ~~could~~which ~~result~~may inreflect ~~price~~military ~~reduction, reduced revenue~~ and ~~loss~~political ~~of market share and could harm our results of operations.~~developments;

~~We face~~● ~~strong~~unexpected ~~competition~~contract ~~from~~or ~~satellite-based~~project ~~providers~~terminations of broadband services that include in-flight internet and live television services. Competition from such providers has in the past and could have in the future, an adverse effect on our ability to maintain or ~~gain market share.~~suspensions;

Most of our competitors are larger, more diversified corporations that have greater financial, marketing, production, and research and development resources. As a result, they may be better able to withstand the effects of periodic economic downturns or may offer a broader product line to customers. In addition, to the extent that competing in-flight connectivity services offered by commercial airlines that are not our airline partners are available on more aircraft or offer improved quality or reliability as compared to our service, our business and results of operations could be adversely affected.44

~~Competition could~~● ~~increase~~unpredictable ~~our~~order ~~sales and marketing expenses and related customer acquisition costs. We may not have the financial resources~~placements, ~~technical expertise~~reductions or marketing and support capabilities to continue to compete successfully. A failure to effectively respond to established and new competitors could have a material adverse impact on our business and results of operations.cancellations;

~~Competition from~~● ~~various~~reductions ~~companies~~or delays in ~~the~~government ~~content~~funds ~~delivery~~available ~~and~~for ~~edge~~our ~~computing~~projects ~~industry,~~due asto ~~well~~government aspolicy ~~market dynamics~~changes, ~~may~~budget ~~lead~~cuts toor ~~price pressures~~delays, ~~reduced~~ ~~revenue,~~changes ~~and~~in ~~potential~~available ~~loss of market share~~funding, ~~which~~reductions ~~could~~in ~~adversely~~defense ~~affect~~expenditures ~~our~~and ~~business~~contract ~~operations.~~adjustments;

~~We operate~~● indelays a highly competitive landscape where other providers of content delivery solutions and edge computing services offer products and services similar to those we intend to introduce. These competitors may have greater financial resources, established customer bases, and extensive marketing and research and development capabilities. Increased competition could result in ~~price~~obtaining ~~reductions,~~government ~~which~~approvals ~~may impact our profitability and revenue generation. Additionally, if competing solutions offer enhanced features, performance,~~ or ~~reliability compared~~clearances to ~~our~~receive ~~planned~~information ~~CDN~~subject ~~service,~~to ~~this~~export ~~could negatively impact our market position and customer adoption.~~control;

~~To maintain~~● aadverse ~~competitive~~changes ~~edge, we must continuously invest~~ in ~~innovation,~~U.S. ~~technology~~Government ~~advancements,~~ and ~~marketing~~Foreign ~~efforts~~Government toexport ~~differentiate ourselves~~control ~~from~~laws ~~competitors.~~that ~~Failure~~restrict toour ~~effectively~~ability ~~address~~to ~~competitive~~conduct ~~pressures,~~joint ~~anticipate~~research ~~market~~activities ~~trends~~with, ~~and~~or ~~adapt~~receive totechnical ~~evolving~~information ~~customer needs~~from, ~~may~~US ~~limit~~based ~~our~~defense ~~growth~~contractor ~~potential and financial performance.~~companies;

~~The price~~● ofthe ~~satellite~~ability ~~bandwidth~~of ~~may~~competitors ~~decrease~~to orprotest ~~develop~~contractual ~~more slowly than we expect.~~awards;

~~Due to~~● ~~the~~additional ~~recent~~costs and anticipated proliferation of satellites and constellations into LEO, MEO, GEO and HEO orbits by our potential partners and potential competitors, as noted above, there is an increased supply of satellite bandwidth. As a result, in the event that a large quantity of satellite bandwidth is sold on the market without commensurate demand, we face the inherent risk that the price of satellite bandwidth may decrease or ~~develop~~penalties ~~more~~arising ~~slowly~~from ~~than~~post-award wecontract ~~expect, or than our potential partners expect.~~audits;

~~As we~~● ~~aim~~the toreduction bein athe ~~distribution partner, or~~ value~~-added~~ ~~reseller,~~ of ~~satellite~~our ~~bandwidth,~~contracts inas ~~the~~a ~~event~~result ~~that the price~~ of ~~satellite bandwidth decreases or develops more slowly than we expect,~~ the ~~potential~~routine ~~revenue~~audit weand ~~may~~investigation beof ~~able~~our tocosts ~~generate~~by inU.S. ~~the~~Government ~~future~~agencies ~~may~~or, ~~decrease~~similarly, ~~which could~~by ~~have~~Foreign aGovernment ~~material adverse effect on our growth prospects.~~agencies;

~~We may~~● behigher-than-expected ~~unsuccessful~~final incosts, ~~generating~~particularly ~~revenue~~relating ~~from~~to ~~entertainment~~software ~~services.~~and hardware development, for work performed under contracts where we commit to specified deliveries for a fixed price;

~~We are~~● ~~currently~~limited ~~developing~~profitability afrom ~~host of in~~cost-~~flight~~reimbursement ~~entertainment~~contracts ~~and~~under ~~connectivity~~which ~~service~~the ~~offerings~~profit tois ~~deliver~~limited to ~~our future customers. We plan to offer~~ a ~~number~~specified of services to our customers and no assurance can be given that we will ultimately be able to launch any service. Additionally, we plan to generate a revenue stream from our video on demand and other in-flight entertainment services. If we are unable to generate revenue from our services or if other entertainment services do not ultimately develop, our growth and financial prospects would be materially adversely impacted. amount;

~~The future~~● ~~growth~~unpredictable ~~prospects~~cash ~~for~~collections ~~our~~of ~~business~~unbilled ~~depend,~~receivables inthat ~~part,~~may onbe ~~revenue~~subject ~~from~~to ~~sale~~acceptance of ~~equipment~~deliverables ~~and~~by ~~bandwidth,~~the ~~advertising~~customer ~~fees~~ and econtract close-~~commerce revenue~~out ~~share arrangements on passenger purchases of goods and services~~procedures, including ~~video~~government ~~and~~approval ~~media~~of ~~services.~~final ~~Our~~indirect ~~ability to generate revenue from these service offerings depends on:~~rates;

● ~~growth~~competition ofwith ~~commercial~~programs ~~airline~~managed ~~customer~~by ~~base~~other government contractors for limited resources and for uncertain levels of funding;

● ~~the~~significant ~~attractiveness~~changes ofin ~~our~~contract ~~customer~~scheduling ~~base~~or toprogram ~~media~~structure, ~~partners~~which generally result in delays or reductions in deliveries; and

46● intense competition for available U.S. Government, or Foreign Government, business necessitating increases in time and investment for design and development.

●We ~~rolling~~must ~~out~~comply ~~media~~with onand ~~demand~~are onaffected ~~more~~by ~~aircraft~~laws and regulations ~~with~~relating ~~additional~~to ~~airline~~the award, administration and performance of U.S. Government, and Foreign Government, contracts. Government contract laws and regulations affect how we do business with our customers and, ~~increasing~~in ~~passenger~~some ~~adoption~~instances, ~~both~~impose added costs on our business, including the establishment of compliance procedures. A violation of specific laws and regulations could result in the imposition of fines and penalties, the termination of our contracts or debarment from bidding on contracts. Substantially all of our potential U.S. Government or Foreign Government backlog scheduled for delivery could be terminated at the convenience of the U.S. Government, or a Foreign Government, because our potential contracts with the U.S. Government, or a Foreign Government, typically would be anticipated to provide that orders may be terminated with limited or no penalties. If we are unable to address any of the risks described above, or if we were to lose all or a substantial portion of our sales to the U.S. Government, or to a Foreign Government, it could materially harm our business and ~~abroad;~~impair the value of our common stock.

●The ~~establishing~~funding ~~and~~of ~~maintaining~~U.S. ~~beneficial~~Government, ~~contractual~~or ~~relationships~~Foreign Government, programs is subject to congressional appropriations, or such similar mechanism in each country. In the U.S., Congress generally appropriates funds on a fiscal year basis even though a program may extend over several fiscal years. Foreign Governments may appropriate funds with a ~~media~~materially ~~partners~~similar ~~whose~~or ~~content~~materially different approach. Consequently, ~~products~~programs are often only partially funded initially and ~~services~~additional funds are ~~attractive~~committed toonly ~~airline~~as ~~passengers;~~Congress, ~~and~~or the relevant Foreign Government body, makes further appropriations.

~~● our ability to customize and improve our service offerings in response to trends and customer interests.~~45

IfWe may not be successful in our efforts weto develop and monetize new products and services that are ~~unsuccessful~~currently in ~~generating~~development, ~~revenue~~including ~~from~~value-added ~~our~~resale ~~service~~of ~~offerings~~satellite bandwidth in certain geographies where we are already licensed or intend to be licensed, our multi-orbit universal satellite communications terminals that ~~failure~~incorporate ~~could~~flat ~~have~~panel aantennas ~~material~~(FPAs) ~~adverse~~or ~~effect~~electronically onsteered arrays (ESAs) with both hardware and software defined modems, communications systems for manned and unmanned aerospace and defense platforms, system integration for manned and unmanned aerospace and defense platforms, our ~~growth~~proprietary, full-dominance glass semiconductor antenna (also referred to as “FGSA”), distributed content delivery network ~~prospects~~(“CDN”), distributed computing or mesh computing applications and inflight entertainment and connectivity services.

WeIn order to meet the evolving needs of our future ~~may~~customers beand ~~unsuccessful~~partners, we must continue to develop new products and services that are responsive to those needs. Our ability to realize the benefits of enabling our products, and to use these applications, including monetizing our services at a profitable price point, depends, in ~~expanding~~part, on the adoption and utilization of such applications by different potential customers including militaries, governments, defense contractors, airlines, other aircraft operators and other companies in the aviation industry such as aircraft equipment suppliers, mobile network operators, other telecommunications service operators and other companies in the telecommunications industry such as communications equipment suppliers, and we cannot be certain that our ~~operations~~potential ~~internationally~~customers, outlined above will adopt such offerings in the near term or at all.

~~Our ability~~We also expect to ~~grow~~continue ~~our~~to ~~international~~rely ~~business~~on ~~involves~~third ~~various~~parties to ~~risks,~~operate ~~including~~and maintain the ~~need~~satellites and satellite constellations to ~~invest~~be ~~significant~~used ~~resources~~to inprovide ~~unfamiliar~~bandwidth ~~markets~~ to our potential customers, and ~~the~~we cannot ~~possibility~~be certain that wesuch ~~may~~satellites ~~not~~or ~~realize~~satellite aconstellations ~~return~~will onbe ~~our~~capable ~~investments~~to inmeet the ~~near~~service ~~future~~level requirements, quality of service expectations or atservice ~~all.~~reliability Inmetrics ~~addition,~~necessary to meet the needs our potential customers. If we ~~have~~are ~~incurred~~not ~~and~~successful in our ~~expect~~efforts to ~~continue~~develop toand ~~incur~~monetize ~~significant~~new ~~expenses~~products ~~before~~and weservices, ~~generate~~including ~~any~~our ~~material~~operations-oriented ~~revenue~~communications inservices, ~~these~~our ~~new~~future ~~markets~~business prospects, financial condition and results of operations would be materially adversely affected.

~~Under~~ Our development and implementation of our ~~agreements~~semiconductor glass ~~with~~antenna, ~~providers~~while poised to offer significant advantages in terms of ~~satellite~~performance ~~capacity~~and cost-effectiveness, weintroduces ~~are~~additional ~~obligated~~layers of torisk. ~~purchase~~This ~~bandwidth~~technology ~~for~~involves ~~specified~~highly ~~periods~~specialized and novel manufacturing processes that may encounter operational hurdles, higher than anticipated production costs, or delays in ~~advance~~scaling production to meet market demands. IfAdditionally, weour ~~are~~semiconductor glass antenna’s ~~unable~~reliance toon ~~generate~~proprietary ~~sufficient~~technology ~~passenger~~and ~~demand~~materials ormight ~~airline~~limit ~~partners~~rapid toadaptation ~~which~~in wethe ~~provide~~face ~~satellite~~of ~~service~~changing toindustry ~~their~~standards ~~aircraft~~or ~~terminate~~emerging competitive ~~their~~technologies. ~~agreements~~Given ~~with~~the usrapid ~~for~~evolution ~~any~~of ~~reason~~technology ~~during~~in ~~these~~the ~~periods~~aerospace and telecommunications sectors, wethere is a risk that our newly developed technology may bebecome ~~forced~~obsolete tomore ~~incur~~quickly ~~satellite~~than ~~costs~~expected, inor ~~excess~~fail ofto ~~connectivity~~gain ~~revenue~~sufficient market acceptance, thereby negatively ~~generated~~impacting ~~through~~our ~~such~~competitive ~~satellites~~position and financial performance.

~~Any~~Our semiconductor glass antenna technology ~~future~~is ~~international~~not ~~operations~~yet ~~may~~commercialized ~~fail~~and tohas ~~succeed~~not ~~due~~been towidely ~~risks~~applied ~~inherent~~or indeveloped ~~foreign~~for ~~operations,~~the ~~including:~~markets being targeted by our company.

●As ~~legal~~an ~~and~~emerging ~~regulatory restrictions~~technology, our ~~including~~semiconductor glass antenna has not undergone extensive field testing across different ~~communications,~~market ~~privacy~~applications, ~~censorship,~~which ~~aerospace~~is crucial for establishing its viability and ~~liability~~reliability ~~standards~~in real-world scenarios. The unproven nature of our semiconductor glass antenna in operational environments, particularly ~~intellectual~~in ~~property~~space ~~laws~~and satellite communications—a sector marked by exceptionally high requirements for accuracy and ~~enforcement~~durability—presents a ~~practices;~~substantial risk.

●Without ~~changes~~established inperformance ~~international~~data ~~regulatory~~and ~~requirements~~market acceptance, the potential for our semiconductor glass antenna to meet the specific needs of satellite operators and ~~tariffs;~~other telecommunications stakeholders remains uncertain. This untested status could delay adoption and affect our ability to attract partnerships and customers necessary for successful market entry and scaling.

● restrictions on the ability of U.S. companies to do business in foreign countries, including restrictions on foreign ownership of telecommunications providers imposed by the U.S. Office of Foreign Assets Control, which we refer to as OFAC;46

~~changes~~We incannot ~~U.S.~~accurately ~~export~~predict ~~and~~future ~~control~~revenues or ~~laws~~profitability ~~and regulations applicable to us include the Arms Export Control Act, the International Traffic~~ in ~~Arms Regulations (ITAR),~~ the ~~Export~~emerging ~~Control~~market ~~Reform~~for ~~Act~~our ofsemiconductor ~~2018~~glass ~~(ECRA)~~antenna ~~and the Export Administration Regulations (EAR)~~technology. ~~● inability to find content or service providers to partner with on commercially reasonable terms, or at all;~~

●The ~~compliance~~market ~~with~~for ~~the~~advanced ~~Foreign~~satellite ~~Corrupt~~communication technologies ~~Practices~~is ~~Act~~rapidly evolving. As is typical of a rapidly evolving industry, ~~the~~demand (Uand market acceptance for newly developing technologies like our semiconductor glass antenna are subject to a high level of uncertainty.~~K.)~~ ~~Bribery~~Moreover, ~~Act~~since ~~2010~~the ~~and~~market ~~other~~for ~~similar~~satellite ~~corruption~~antenna ~~laws~~technology is ~~and~~evolving, ~~regulations~~it inis difficult to predict the ~~jurisdictions~~future ingrowth ~~which~~rate, weif ~~operate~~any, and ~~related~~size ~~risks;~~of this market.

●Because ~~difficulties~~of our limited development history with our semiconductor glass antenna and the emerging nature of the markets in ~~staffing~~which we expect to compete, we are unable to accurately forecast any revenues or our profitability that we might generate through the marketing of our semiconductor glass antenna technology. The market for our semiconductor glass antenna products and ~~managing~~the ~~foreign~~long-term ~~operations;~~acceptance of our technology are uncertain, and our ability to attract and retain qualified personnel with industry expertise, particularly in engineering, sales, and marketing, is uncertain. To the extent we are unsuccessful in generating revenues from FGSA, we may be required to appropriately adjust spending to compensate for any unexpected revenue shortfall, or to reduce our operating expenses, causing us to forego potential revenue-generating activities.

●We ~~currency~~may ~~fluctuations;~~face challenges in the development and monetization of new products and services, specifically related to our universal terminals.

●In ~~potential~~order ~~adverse~~to ~~tax~~meet ~~consequences~~the ever-changing needs of our target customers, we must continuously innovate and introduce new offerings that cater to their requirements. However, the successful adoption and utilization of these products depend on the interest and acceptance of our target customers. There is no guarantee that they will embrace our offerings in the near future or at all.

AsAdditionally, as we strive to provide comprehensive aand ~~result~~efficient ofmulti-orbit ~~these~~broadband ~~obstacles~~connectivity, we may ~~find~~need itto ~~difficult~~collaborate with third-party developers or ~~prohibitively~~technology ~~expensive~~providers to ~~grow~~enhance our product and service offerings and ensure compatibility with our ~~business~~potential ~~internationally~~partners’ orsatellites weand ~~may~~ground beinfrastructure. ~~unsuccessful~~However, uncertainties exist regarding the seamless integration and effectiveness of these technical collaborations in meeting the unique needs of our ~~attempt~~potential customers. Should we encounter obstacles in effectively developing and monetizing new products and services, specifically pertaining to doour souniversal terminals, ~~which~~it could ~~harm~~significantly impact our ~~future~~business ~~operating~~prospects, ~~results~~financial performance, and ~~financial~~overall ~~condition~~success in the market.

47We may not be able to grow our business with our current and potential satellite and satellite constellation partners or to successfully negotiate agreements with satellite and satellite constellation partners whose bandwidth and services we do not currently resell or otherwise distribute;

~~Acquisitions~~Currently, our primary existing or potential satellite ~~such~~partners asinclude ~~the~~SES ~~Mesh~~(including ~~Tech~~SES ~~Transaction~~Space & Defense), ~~Joint~~Viasat ~~Ventures~~Inc., Intelsat SA, Eutelsat Group (including Eutelsat Communications, Eutelsat SA and ~~Other~~Eutelsat ~~Strategic~~OneWeb), ~~Alliances~~Rivada ~~May~~Space ~~Have~~Networks, anAstranis ~~Adverse~~Space ~~Effect~~Technologies onCorp. ~~Our~~and ~~Business;~~Telesat Corp., but we aim to have the technical capability to provide links to any and all satellites and constellations, subject to future potential commercial agreements. We ~~May~~are ~~Fail~~currently in, or planning, discussions or negotiations with certain of our existing or potential satellite partners to ~~Realize~~serve ~~the~~as ~~Anticipated~~a ~~Benefits~~value-added reseller of their services in certain countries and regions, but do not yet have in place any such ~~Transactions.~~value-added reseller agreements.

~~In order~~We tohave ~~position~~acquired ~~ourselves~~terminal toequipment ~~take advantage of growth opportunities, from time to time we make strategic acquisitions~~ and ~~enter into~~satellite ~~joint~~connectively ~~ventures~~ and ~~other~~related ~~strategic~~services ~~alliances~~from ~~that~~SES ~~involve significant risks~~ and ~~uncertainties.~~also ~~For~~have ~~example,~~participated ~~during~~in ~~2023~~demonstration ~~we announced~~ and ~~closed~~testing onwith ~~the~~SES ~~Mesh~~under ~~Tech Transaction and announced an intent for~~ a ~~merger~~confidential agreement with ~~EJECTT.~~our ~~Risks~~development ~~and~~customer ~~uncertainties~~since ~~relating to these transactions and any other acquisitions, joint ventures and other strategic alliances we may undertake include:~~2022.

-Negotiations ~~the~~with ~~difficulty~~prospective insatellite ~~combining~~partners require substantial time, ~~integrating~~effort and ~~managing~~resources. ~~newly~~The ~~acquired~~time ~~businesses~~required orto reach a final agreement with a satellite operator is unpredictable and may lead to variances in our operating results from quarter to quarter. We may ultimately fail in our negotiations and any ~~businesses~~such failure could harm our results of operations due to, among other things, a ~~joint~~diversion ~~venture~~of our focus and resources, actual costs and opportunity costs of pursuing these opportunities. To the extent that any negotiations with current or ~~strategic~~future ~~alliance~~potential insatellite anpartners ~~efficient~~are unsuccessful, or any new agreements contain terms that are less favorable to us, our growth prospects could be materially and ~~effective~~adversely ~~manner;~~affected.

~~- the challenges in achieving the objectives, cost savings, synergies and other benefits expected from such transactions;~~47

-We ~~the~~may ~~risk~~not ofbe ~~diverting~~able ~~resources~~to grow our business with our current and ~~the~~potential ~~attention~~aerospace ofand ~~senior~~defense ~~management~~partners ~~from~~or ~~the~~to ~~operations~~successfully ofnegotiate agreements with aerospace and defense partners to which we do not currently provide our ~~business~~technologies or services;

-Our ~~additional~~primary ~~demands~~potential onaerospace ~~management~~& ~~related~~defense partners toinclude ~~integration~~prime ~~efforts~~contractors orlike ~~the~~Kratos ~~increase~~Defense, inLockheed ~~the~~Martin, ~~size~~Anduril, Shield.AI, Boeing Defense, Airbus Defense, Northrop Grumman, General Atomics and ~~scope~~RTX, ofalthough ~~our~~we ~~company~~do ~~following~~not anyet ~~acquisition~~have orin toplace ~~the~~binding ~~complexities~~agreements ofto serve as a joint venture partner, mentor-protégé partner, subcontractor, vendor, or ~~strategic~~system ~~alliance~~integrator with these prime contractors. We are currently in discussions with certain of our potential aerospace & defense partners to enter into binding contracts together. Currently, ~~including~~we ~~challenges~~also have a number of ~~coordinating~~potential ~~geographically~~aerospace & ~~dispersed~~defense ~~organizations~~customers, including militaries and ~~addressing~~governments, ~~differences~~regarding inproviding ~~corporate~~our ~~cultures~~products orand ~~management~~services ~~philosophies;~~to meet their classified programs and missions.

-Negotiations ~~difficulties~~with prospective aerospace & defense partners and potential customers require substantial time, effort and resources. The time required to reach a final agreement with an aerospace & defense prime contractor or a military customer is unpredictable and may lead to variances in ~~the~~our ~~assimilation~~operating results from quarter to quarter. We may ultimately fail in our negotiations and ~~retention~~any such failure could harm our results of ~~key~~operations ~~employees~~due to, among other things, a diversion of our focus and inresources, ~~maintaining~~actual ~~relationships~~costs and opportunity costs of pursuing these opportunities. To the extent that any negotiations with ~~present~~current ~~and~~or future potential aerospace & defense partners or customers are unsuccessful, ~~distributors~~or any new agreements contain terms that are less favorable to us, our growth prospects could be materially and ~~suppliers;~~adversely affected.

-We ~~the~~may ~~lack~~not ofbe ~~unilateral~~able ~~control~~to ~~over~~grow aour ~~joint~~business with ~~venture~~our orcurrent ~~strategic~~airline ~~alliance~~partners ~~and the risk that joint venture~~ or ~~strategic~~successfully ~~partners~~negotiate ~~have~~agreements ~~business~~with ~~goals~~airlines and ~~interests~~other ~~that~~partners ~~are not aligned with ours,~~ or ~~the~~grow ~~failure~~our ofadditional ~~a joint venture partner to satisfy its obligations or its bankruptcy or malfeasance;~~businesses.

Currently, our only airline partners are MJet GmbH, an Austrian-based ~~costs~~private jet operator, MJet, Hong Kong Airlines Limited, a Hong Kong-based airline, or Hong Kong Airlines, and Vietjet ~~expenses~~Aviation Joint Stock Company, a Vietnam-based airline, or Vietjet, although we have not yet begun to provide our universal terminals for aviation with associated bandwidth services or our distributed content system for airlines to these companies under our agreement with ~~any~~them. ~~undisclosed~~We are currently in advanced negotiations or ~~potential~~discussions ~~liabilities~~with ofcertain another ~~acquired~~airline ~~business;~~partners to provide our products and services on additional aircraft in their fleets. We have no assurance that these efforts will be successful.

-Negotiations ~~delays~~with prospective airline partners require substantial time, ~~difficulties~~effort orand ~~unexpected~~resources. ~~costs~~The time required to reach a final agreement with an airline is unpredictable and may lead to variances in ~~the~~our ~~integration,~~operating ~~assimilation,~~results ~~implementation~~from orquarter ~~modification~~to quarter. We may ultimately fail in our negotiations and any such failure could harm our results of ~~platforms,~~operations ~~systems~~due to, ~~functions~~among ~~(including~~other ~~corporate~~things, ~~administrative,~~a ~~information~~diversion ~~technology,~~of ~~marketing~~our focus and ~~distribution functions)~~resources, ~~technologies,~~actual ~~infrastructure,~~costs and ~~product~~opportunity ~~and~~costs of ~~service~~pursuing ~~offerings~~these opportunities. In addition, the terms of any future agreements could be materially different than the ~~acquired~~terms ~~business,~~included in ~~joint~~our ~~venture~~existing agreement with Hong Kong Airlines. To the extent that any negotiations with current or ~~strategic~~future ~~alliance~~potential airline partners are unsuccessful, or inany ~~the~~new ~~harmonization~~agreements ofcontain ~~standards,~~terms ~~controls~~that ~~(including~~are ~~internal~~less ~~accounting~~favorable ~~controls)~~to us, ~~procedures~~our growth prospects could be materially and ~~policies;~~adversely affected.

-We ~~the~~may ~~risk~~not ~~that~~be ~~funding~~able ~~requirements~~to ofsuccessfully ~~the~~negotiate agreements ~~acquired~~with ~~business,~~potential ~~joint~~civilian ~~venture~~telecommunications orpartners ~~combined~~for ~~company~~our ~~may~~backhaul besolutions ~~significantly~~or ~~greater~~grow ~~than~~this ~~anticipated;~~additional business.

-The varying awareness and sense of urgency regarding network resilience in different countries will directly impact the ~~risks~~growth of ~~entering~~our ~~markets~~mobile backhaul business. Network resilience is the ability of a network to withstand and recover from unexpected disruptions, ensuring uninterrupted service and minimizing downtime. However, the importance placed on network resilience can differ across countries due to varying factors such as geographical location, infrastructure stability, and previous experiences with network failures. In countries where there is a high level of awareness and a sense of urgency regarding network resilience, there is a greater demand for robust mobile backhaul solutions. Customers in ~~which~~these weregions ~~have~~prioritize ~~less~~the reliability ~~experience;~~and resilience of their networks, driving the adoption of mobile backhaul technologies that offer built-in redundancy, failover mechanisms, and efficient disaster recovery capabilities. Conversely, in regions where network resilience is not a primary concern or where there is limited awareness, the demand for advanced satellite mobile backhaul solutions may be relatively lower.

~~- the risks of disputes concerning indemnities and other obligations that could result in substantial costs.~~48

We ~~may~~ ~~not~~are ~~achieve~~dependent ~~the~~on ~~anticipated~~airline ~~growth,~~partners ~~cost savings or other benefits from the Mesh Tech Transaction or any other transaction we may~~to ~~undertake~~be ~~without~~able ~~adversely~~to ~~affecting~~access ~~current~~our ~~revenues~~customers. ~~and~~We ~~investments~~expect inthat future ~~growth.~~payments ~~Moreover,~~by ~~the~~these ~~anticipated~~customers ~~growth,~~for ~~cost~~our ~~savings, synergies~~services ~~and~~to ~~other~~be ~~benefits~~provided ofto ~~the~~them ~~Mesh~~will ~~Tech~~account for ~~Transaction~~most, orif ~~any other transaction we may undertake may~~ not ~~be realized fully, or at~~ all, orof ~~may~~our ~~take~~initial ~~longer to realize than expected~~revenues.

~~Additionally, we~~Under ~~may~~our ~~inherit~~existing ~~legal,~~contract ~~regulatory~~with MJet, ~~operational~~Hong Kong Airlines and ~~other~~Vietjet, ~~risks~~we ofwill ~~the~~provide ~~acquired~~our ~~business~~equipment for installation on, ~~whether~~and ~~known~~provide orour ~~unknown~~services to uspassengers on, ~~which~~a ~~may~~portion beof the aircraft ~~material~~operated by these airlines. We expect to ~~the~~enter ~~combined~~into ~~company.~~similar ~~Moreover,~~contracts ~~uncertainty~~with ~~about~~other airlines in the ~~effect~~future ofbut ~~the~~there ~~recently~~is ~~closed~~no ~~transaction~~assurance ~~such~~that we aswill ~~the~~be ~~Mesh~~successful ~~Tech~~in ~~Transaction on~~signing ~~employees,~~up ~~suppliers~~additional ~~and~~airline ~~customers~~partners. ~~may~~We ~~have~~expect anthat ~~adverse~~revenue ~~effect~~from the successful installation of our Aerkomm AirCinema cube on usHong Kong Airlines and~~/or~~ ~~the~~Vietjet ~~acquired~~sometime ~~business,~~in ~~which~~2025 ~~uncertainties~~as ~~may~~well ~~impair~~as the successful installation of our Aerkomm K++ System on orMJet ~~its~~and ~~ability~~Hong toKong ~~attract,~~Airlines ~~retain~~in ~~and~~the ~~motivate~~fourth ~~key~~quarter ~~personnel,~~of 2025 and ~~could~~first ~~cause~~quarter ~~our~~of or2026 ~~its customers~~respectively, ~~suppliers~~together ~~and~~with ~~distributors~~the tomonthly ~~seek~~bandwidth tocharge, ~~change~~will ~~existing~~account ~~business~~for ~~relationships~~a ~~with~~material ~~either~~portion of usour projected initial revenue from commercial aviation once we begin our services.

~~In addition,~~As inof ~~connection~~the ~~with~~date ~~acquisitions,~~of ~~joint~~this ~~ventures~~Annual ~~or strategic alliances~~Report, we ~~may~~do ~~incur debt, issue equity securities, assume~~not ~~contingent~~yet ~~liabilities~~have orany ~~have~~revenue ~~amortization~~from ~~expenses~~equipment sales and ~~write-downs~~installation. ofOur ~~acquired~~growth ~~assets,~~will ~~which~~be ~~could~~dependent ~~cause~~on our ~~earnings~~ability ~~per share~~ to ~~decline.~~ Inhave ~~addition,~~our ~~companies~~equipment ~~such~~installed on ~~as Mesh Tech that are private companies at~~ the ~~time~~aircraft of ~~acquisition~~airline ~~are~~partners ~~not subject to reporting requirements~~ and ~~may~~increased ~~not~~use ~~have accounting personnel specifically employed to review internal controls over financial reporting and other procedures or to ensure compliance with the requirements~~ of ~~the~~our ~~Sarbanes-Oxley~~service ~~Act~~on ofinstalled ~~2002~~aircraft. ~~Bringing~~Any ~~the~~delays ~~legacy~~in ~~systems~~installations ~~for~~under these ~~businesses~~contracts ~~into~~may ~~compliance~~negatively ~~with~~affect ~~those requirements and integrating them into~~ our ~~compliance~~ability ~~and accounting systems may cause us~~ to ~~incur~~grow ~~substantial additional~~our ~~expense,~~user ~~make~~base ~~some activities more difficult, time-consuming or costly~~ and ~~increase demand on our systems and resources~~revenue.

~~Mergers, acquisitions,~~We joint ventures and strategic alliances are inherently risky and subject to many factors outside of our control, and we cannot be certain that our previous or future acquisitions, joint ventures and strategic alliances will be ~~successful~~dependent ~~and~~on ~~will~~backhaul ~~not materially~~partners ~~adversely~~to ~~affect our business, operating results or financial condition. We may not~~ be able to ~~successfully~~access ~~integrate~~our ~~the~~future ~~businesses, products,~~customers. ~~technologies~~We orexpect ~~personnel~~ that ~~we might acquire in the~~ future, ~~and~~payments ~~any~~by ~~strategic~~these ~~investments~~customers wefor ~~make may not meet~~ our ~~financial or~~services ~~other~~to ~~investment~~be ~~objectives.~~provided ~~Any failure~~ to dothem sowill account ~~could~~for ~~seriously~~a ~~harm~~percentage ~~our business, financial condition and results~~ of ~~operations~~our revenues.

48As of the date of this Annual Report, we do not yet have any revenue from equipment sales and the installation of our mobile backhaul business. Our growth will be dependent on our ability to have our equipment installed on 4G/5G mobile base stations. Any delays in installations negatively may affect our ability to increase our user base and revenue.

~~An extended~~A ~~delay~~failure ~~in the transfer of title~~ to ~~Aerkomm~~maintain ~~Taiwan~~customers’ ~~of the Taiwan land parcel that we recently purchased could delay the building~~satisfaction ofwith our ~~first~~equipment ~~satellite~~or ~~ground~~our ~~station~~service ~~and~~could have a ~~negative~~material ~~impact~~adverse effect on our ~~business~~revenue ~~prospects.~~and results of operations.

InOur relationships with our current and future ~~July~~development ~~2019,~~and wecommercialization ~~completed~~partners ~~payment~~are ofcritical to the ~~NT$1,098,549,407,~~growth and ongoing success of our business. If partners are not satisfied with our equipment or ~~US$35~~our service for any reason,~~861~~ they may reduce efforts to co-market our service to their customers,~~589~~ which could result in lower usage and reduced revenue, ~~purchase~~which ~~price~~could ~~for~~in turn give our ~~acquisition~~partners ofthe ~~approximately~~right 6to terminate their contracts with us.3 ~~acres~~In addition, ofairline ~~undeveloped~~dissatisfaction ~~land~~with ~~(which~~us wefor ~~refer~~any reason, including delays in obtaining certification for or installing our equipment, could negatively affect our ability to asexpand ~~the~~our ~~Taiwan~~service ~~land~~to ~~parcel)~~additional ~~located~~commercialization atpartners ~~the~~or ~~Taishui~~lead ~~Grottoes~~to inclaims ~~the~~for ~~Xinyi~~damages, ~~District~~which ofmay ~~Keelung~~be ~~City~~material, ~~Taiwan~~or termination rights under our existing or potential contracts with airline partners.

~~Our agent~~A ~~has~~failure ~~received all of the necessary title transfer documentation from the seller however, according~~ to ~~the~~maintain ~~land~~backhaul ~~use~~customers satisfaction ~~law~~with ~~of Taiwan,~~ our ~~Taiwan~~equipment ~~based~~or ~~subsidiary,~~our ~~Aerkomm~~service ~~Taiwan,~~could ~~needed~~have ~~to first, obtain~~ a ~~telecommunications~~material ~~license~~adverse ineffect ~~Taiwan,~~on ~~which~~our itrevenue ~~has obtained, then second, submit a usage plan to the local land office~~ and toresults ~~obtain the necessary operational/development license or authorization for the intended usage before Aerkomm Taiwan can obtain an official certificate~~ of ~~title~~operations. ~~Aerkomm Taiwan is currently preparing the plan of usage and has worked with various regulatory authorities to obtain the necessary license and approval to meet the local land use law requirements.~~

~~We do~~If ~~not~~our ~~know~~mobile atbackhaul ~~this~~solution ~~time~~fails ~~how long it will take~~ to ~~complete~~effectively ensure ~~this~~network ~~process~~resilience, ~~and~~customers ~~receive~~may ~~the~~turn ~~certificate of title~~ to ~~the~~competitors’ ~~parcel~~offerings. ~~Although we~~This ~~expected~~would tohave ~~complete~~a ~~the~~direct ~~entire~~impact ~~process~~on ~~and~~our ~~receive~~revenue orand ~~certificate of title by sometime in 2024, the transaction was not completed~~operations. ~~Once~~Network ~~title~~resilience ~~to the Taiwan land parcel~~ is ~~transferred~~a tocritical ~~Aerkomm~~requirement ~~Taiwan,~~for wecustomers ~~expect~~seeking wemobile ~~may~~backhaul ~~lease~~solutions. aBackhaul ~~portion~~customers ofwill ~~the~~rely ~~land~~on ~~parcel,~~our ~~pursuant~~services to ~~the~~maintain ~~terms~~a ofrobust anand ~~existing~~reliable ~~binding~~network ~~memorandum~~infrastructure ofthat ~~understanding,~~will tobe aable ~~Samoa~~to ~~based~~withstand ~~telecom~~disruptions ~~company~~and ~~who~~ensure ~~intends~~uninterrupted toconnectivity. If ~~use~~our ~~the~~solution ~~land~~does ~~for~~not meet their ~~own~~ ~~satellite~~expectations ~~ground~~in ~~station~~terms ~~and~~of tonetwork ~~mortgage~~resilience, ~~the~~customers ~~land~~may toperceive beit ~~able~~as toa ~~raise~~risk ~~funds~~ to ~~build~~their ~~our~~operations and ~~first~~seek ~~satellite~~alternative ~~ground station and data center~~options.

~~If there~~We ismay anexperience ~~extended~~network ~~delay~~capacity constraints in ~~the~~our ~~transfer~~future ofoperations ~~the~~regions ~~Taiwan~~and ~~land~~we ~~parcel~~expect ~~title~~capacity demands to ~~Aerkomm Taiwan~~increase, ~~our~~and ~~agreement~~we ~~with~~may in the ~~Samoa~~future ~~telecom~~experience ~~company~~capacity constraints ~~may~~internationally. beIf ~~terminated and~~ we ~~may~~are ~~not~~unable beto ~~able~~successfully toimplement ~~raise~~planned ~~the~~or ~~funds~~future ~~needed~~technology enhancements to ~~build~~increase our ~~ground~~network ~~station~~capacity, or inour aairline ~~timely~~partners ~~fashion.~~do ~~Either~~not oragree ~~both~~to ~~of these~~such ~~eventualities~~enhancements, ~~could~~our ~~have~~ability ato ~~negative~~acquire ~~impact~~and onmaintain sufficient network capacity and our business could ~~plans,~~be ~~prospects~~materially and ~~future~~adversely ~~results of operations~~affected.

~~From~~All providers of ~~time~~wireless connectivity services, including all providers of in-flight connectivity services, face certain limits on their ability to ~~time~~provide connectivity service, weincluding ~~enter~~escalating ~~into~~capacity ~~memorandums~~constraints due to expanding consumption of ~~understanding~~wireless ~~(MOUs)~~services ~~with~~and ~~various~~the ~~third~~increasing ~~parties~~prevalence of higher bandwidth uses such as file downloads and streaming media content. IfThe ~~the~~success ~~transactions~~of ~~contemplated~~our bybusiness ~~these~~depends on our ability to provide ~~MOUs~~adequate dobandwidth ~~not~~to ~~proceed,~~meet ~~our~~customer ~~results~~demands ofwhile ~~operations~~in-flight. ~~and~~We ~~financial~~may ~~condition~~find ~~could~~it bedifficult ~~materially~~to ~~adversely~~provide ~~affected~~this adequate bandwidth.

~~From time~~As tothe ~~time,~~number weof ~~enter~~base ~~into~~stations ~~MOUs~~increases with the ~~potential~~implementation ~~prospective~~of ~~collaborative~~4G/5G ~~partners~~mobile orbackhaul, ~~potential~~it ~~customers~~indicates a growing user base. ~~These~~However, ~~MOUs~~when ~~typically~~the ~~are~~network ~~nonbinding~~capacity reaches its initial design threshold, if we fail to timely develop new technologies to increase capacity and asmeet acustomer ~~result~~demands, ~~they~~such ~~only~~a ~~express~~failure ~~the~~will ~~desires~~negatively impact ~~and~~our ~~understandings~~business. ~~between~~If ~~the~~we ~~parties~~are unable to develop and dointroduce ~~not~~new ~~create~~technologies ~~any~~that ~~legally~~can ~~binding~~expand ~~rights~~our network’s capacity, ~~obligations~~customers ormay ~~contracts~~experience ~~except~~congestion, ~~for~~slow ~~certain~~data ~~customary~~speeds, ~~provisions~~and ~~such~~poor asservice ~~exclusivity,~~quality. ~~costs~~This ~~and~~can ~~expenses~~lead to customer dissatisfaction, ~~confidentiality~~churn, and ~~governing~~a ~~law~~negative impact on our business.

Any binding obligation to proceed with the transactions contemplated by the MOUs would need to be included in a definitive agreement that is subject to negotiations of the parties, approvals by the board of directors of respective parties and in certain instances, approvals from regulatory authorities. There can be no assurance that we will be able to reach definitive agreements with any parties who may sign MOUs with us. If for whatever reason the transactions contemplated by signed MOUs do not proceed, our results of operations and financial condition could be materially adversely affected.49

49We face the risk of network capacity constraints in our future CDN business as the demand for high-speed content delivery continues to grow. If we are unable to effectively scale our network infrastructure to meet increasing capacity demands, this failure may result in degraded performance, slower content delivery, and potential customer dissatisfaction. To mitigate this risk, we need to continuously invest in expanding our network capacity and implementing advanced technologies to ensure optimal performance and scalability. Failure to do so may adversely impact our competitiveness and market position.

~~A future~~The ~~act~~demand orfor ~~threat~~satellite ofbandwidth ~~terrorism~~may decrease or ~~other~~develop ~~events~~more ~~could~~slowly ~~result~~than inwe aexpect. ~~prohibition~~We oncannot predict with certainty the ~~use~~development of ~~Wi-Fi~~the ~~enabled~~international ~~connectivity~~satellite ~~devices.~~bandwidth market in general or the general market acceptance for our products and services

~~A future~~We ~~act~~have ofinvested ~~terrorism,~~significant resources towards the ~~threat~~

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