Item 8.01 Other Events.
Relying on SEC Order for Reporting Relief
On
The Company is relying on the Order due to a suspension of in-person operations at the Company's headquarters and all of its other offices as a result of COVID-19, similar suspension of in-person operations by the Company's financial service providers, the material adverse effect COVID-19 has had and may continue to have on the travel industry, and other financial and operational concerns associated with or caused by COVID-19. These disruptions have limited support from the Company's staff and professional advisors. This has, in turn, delayed the Company's ability to complete its Annual Report on Form 10-K.
The Company anticipates that it will be able to file its Annual Report on Form
10-K for the year ended
COVID-19 Risk Factors
In light of the current COVID-19 pandemic, the Company is supplementing the risk
factors previously disclosed in its most recent periodic reports filed with the
The rapid spread of contagious illnesses could have a material adverse effect on our business and results of operations.
The rapid spread of a contagious illness or pandemic (including COVID-19), or fear of such an event, has had and could in the future have a material adverse effect on the demand for worldwide travel and therefore have a material adverse effect on our business, our results of operations and the profitability of our joint venture interests. As a result of the COVID-19 outbreak, most of our airline and cruise line customers have temporarily ceased and/or severely reduced operations in certain markets. The spread of COVID-19 or associated strains has had, and could continue to have, a significant adverse impact on the demand for worldwide travel and, as a result, our financial results. Moreover, travel restrictions and operational issues resulting from the rapid spread of contagious illnesses in parts of the world where we have significant operations may continue to have a material adverse effect on our business and results of operations.
Our business is dependent on the travel industry and the competitive nature of that industry; it makes our business sensitive to domestic and international economic conditions.
Our business is directly affected by the number of passengers flying on
commercial airlines and traveling on cruise ships, the financial condition of
these airlines and cruise lines, and the general availability of travel and
related economic conditions around the world. If demand for air or maritime
travel declines, the number of aircraft and flights shrink or the travel
industry is severely disrupted, the number of passengers available to use our
Connectivity and Media & Content offerings will be reduced, which will have a
material adverse effect on our financial condition and prospects. High
unemployment rates, reduced consumer and business spending,
Many of our airline and maritime customers operate in intensely competitive environments. These competitive circumstances could cause one or more of our customers to reduce expenditures on passenger and guest services, including our Connectivity and Media & Content services, which could have a material adverse effect on our business prospects and financial condition.
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In addition, instability and changes in economic and political conditions across
the globe, including inflation, recession, interest rate fluctuations and actual
or anticipated military conflicts are among the global risks that may impact our
business and our plans for expansion. Our operations and performance are
sensitive to fluctuations in general economic conditions, both in the
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