Comtech

Location · Property Type · Square Footage · Lease Expiration

Seattle, Washington · A · Network Operations, R&D, Engineering and Sales · 30,000 · October 2033

Stoughton, Massachusetts · B · Network Operations · 19,000 · March 2030

Gatineau, Canada · C · Network Operations, R&D, Engineering, Sales and General Office · 17,000 · November 2035

Annapolis, Maryland · D · Support, Engineering and Sales, General Office and Common Areas · 11,000 · Sept 2032

Broomfield, Colorado · E · General Office · 11,000 · March 2031

Melville, New York · E · General Office · 9,600 · August 2027

Buford, Georgia · F · Support, Engineering and Sales · 8,000 · October 2029

Pensacola, Florida · F · Support, Engineering and Sales · 4,000 · October 2026

109,600

Discontinued Operations

Chandler, Arizona · G · Manufacturing and Engineering and Corporate Headquarters · 146,000 · July 2036

Hampshire, UK · H · Manufacturing and Engineering · 56,000 · August 2026

Orlando, Florida · I · Manufacturing and Engineering · 48,000 · December 2026

Santa Clara, California · J · Manufacturing and Engineering · 47,000 · April 2028

Cypress, California · K · Support, Engineering and Sales · 28,000 · July 2030

Tempe, Arizona · G · Manufacturing and Engineering · 20,000 · January 2027

Plano, Texas · K · R&D and Engineering · 12,000 · September 2030

Saint-Laurent, Canada · L · Manufacturing, Engineering, Sales and General Office · 12,000 · June 2029

Various facilities · M · Support, Engineering and Sales · 4,000 · Various

373,000

Total Square Footage · 482,600

A.Allerium maintains office space in Seattle, Washington used primarily for servicing and hosting Next Generation 9-1-1 ("NG9-1-1") and call delivery solutions.

B.Allerium maintains office space in Stoughton, Massachusetts used primarily for servicing certain of our state and local municipality NG9-1-1 customers.

C.Allerium maintains office space in Gatineau, Canada used primarily for servicing and hosting call handling solutions.

D.Allerium maintains office space in Annapolis, Maryland used primarily for the design and development of trusted location and messaging solutions.

E.Allerium maintains office space in Broomfield, Colorado and Melville, New York used primarily for certain company-wide functions. In connection with our transformation plan to align our operations, strategy and brand with a public safety focus, upon consummation of the Strategic Transaction, we anticipate Broomfield, Colorado becoming our new corporate headquarters.

F.Allerium maintains office space in Pensacola, Florida and Buford, Georgia used primarily for support services relating to our cybersecurity training business.

G.Our high-volume technology manufacturing facility in Chandler, Arizona utilizes state-of-the-art design and production techniques, including analog, digital and RF microwave production, hardware assembly and full-service engineering. Such facility currently serves as our corporate headquarters. See note E. for further information.

H.We leased a manufacturing facility in Hampshire, Basingstoke, U.K., where we previously manufactured high precision full motion fixed and mobile X/Y satellite tracking antennas. In fiscal 2025, we wound down such operations. In fiscal 2026, we terminated the lease early and, in August 2026, surrendered the premises back to the landlord.

I.We engineer and manufacture over-the-horizon microwave troposcatter systems and mission-critical satellite equipment in a leased facility in Orlando, Florida.

J.We manufacture certain amplifiers in a leased manufacturing facility located in Santa Clara, California.

K.We maintain office space in Cypress, California and Plano, Texas, respectively, used primarily for R&D, engineering, sales and customer support.

L.We maintain office space in Saint-Laurent, Canada used primarily for sales, engineering, manufacturing and general office use.

M.We lease an additional two facilities, one of which is 1,000 square feet and is located in the U.S. with the remaining facility aggregating 3,000 square feet located in India. Both are primarily utilized for engineering, sales, software development, customer support and general office use.

The terms for all of our leased facilities are generally for multi-year periods and we believe that we will be able to renew these leases or find comparable facilities elsewhere.

• Our efforts to invoice and collect unbilled accounts receivable may be unsuccessful.
• Contract cost growth on our firm fixed-price contracts, including most of our government contracts, cost reimbursable type contracts and other contracts that cannot be justified as an increase in contract value due from customers exposes us to reduced profitability and the potential loss of future business and other risks.
• A change in our relationship with our large wireless carrier customers could have a material adverse effect on our business, results of operations and financial condition.
• If our wireless carrier partners change the pricing and other terms by which they offer our products to their end-customers or do not continue to provide our services at all or renegotiate lower fees with us, our business, results of operations and financial condition could be suddenly and materially adversely affected.
• Disputes with our subcontractors or key suppliers or their inability to deliver on a timely basis, could cause delays in our performance.
• Our estimates regarding future warranty obligations may change based on a variety of factors, impacting future cost of
• Risks Related to Satellite and Space Communications Segment and Strategic Transaction
• The U.S. Government's budget deficit, as well as a breach of the debt ceiling, could have an adverse impact on our operations.
• Our business, in particular our legacy Satellite & Space Communications segment, is highly dependent on the budgetary decisions of our government customers, including the U.S. government (including prime contractors to the U.S. government), and changes in the U.S. government’s fiscal policies or budgetary priorities may have a material adverse effect on our business, operating results and financial condition.
• Our contracts with the U.S. government are subject to unique business, commercial and government audit risks.
• Our dependence on sales to international customers exposes us to unique business, commercial and export compliance risks.
• The announcement and pendency of the proposed Strategic Transaction with an affiliate of Gilat Satellite Networks Ltd could adversely affect our business, financial results and operations.
• Failure to complete the proposed Strategic Transaction with an affiliate of Gilat Satellite Networks Ltd could adversely affect our business and the market price of shares of our common stock.
• If the pending sale of most of our Satellite and Space Communications business is completed, we may not achieve the
• anticipated benefits of the Strategic Transaction, and the Strategic Transaction may expose us to new risks.
• Strategic Growth Risks
• We face a number of risks relating to the expected long-term growth of our business. Our business and operating results may be negatively impacted if we are unable to manage this growth.
• Loss of our executive officers or other key personnel or other changes to our management team could disrupt our operations and growth plans or harm our business.
• We have indebtedness outstanding under a Credit Facility and Subordinated Credit Facility, and may incur substantial additional indebtedness in the future. We may not be able to service our debt obligations in the future and we must maintain compliance with various covenants that impose restrictions on our business.
• Divestitures of portions of our business in the course of carrying out our transformation plan, such as the Strategic Transaction, and reshaping our product portfolio could prove difficult to carve out, disrupt our business, dilute stockholder value or adversely affect operating results or the market price of our common stock.
• Our investments in recorded goodwill and other intangible assets could be impaired as a result of future business conditions, a deterioration of the global economy or if we change our reporting unit structure for any reason.
• Net Intangibles with Finite Lives
• Cybersecurity Risks
• We could be negatively impacted by a system failure, lack of or failure of redundant system components, security breach through cyber-attack, cyber intrusion or otherwise, by other significant disruption of our IT networks or those we operate for certain customers, or third-party data center facilities, servers and related systems. If any such events occur, we may have to reimburse our customers for damages that they may have incurred, pay contract penalties, or provide refunds.
• The measures we have implemented to secure information we collect and store or enable access to may be breached, which could cause us to breach agreements with our partners and expose us to potential investigation and penalties by authorities and potential claims for contract breach, product liability damages, credits, penalties or termination by persons whose information was disclosed.
• Legal, Regulatory and Litigation Risks
• Changes in U.S. federal, state and local and foreign tax law could adversely affect our business and financial condition.
• Our U.S. federal, state and local and foreign tax returns are subject to audit and a resulting tax assessment or settlement could have a material adverse effect on our business, results of operations and financial condition. Significant judgment is required in determining the provision for income taxes.
• We may be subject to environmental liabilities.
• The success of our business is dependent on compliance with FCC rules and regulations and similar foreign, state and local laws and regulations.
• Regulation of the mobile communications industry and VoIP is evolving, and unfavorable changes or our failure to comply with existing and potential new legislation or regulations could harm our business and operating results.
• Ongoing compliance with the provisions of securities laws, related regulations and financial reporting standards could unexpectedly materially increase our costs and compliance related expenses.
• Our management has concluded that our disclosure controls and procedures were not effective as of July 31, 2026 due to material weaknesses in internal control over financial reporting. If we are unable to maintain an effective system of disclosure controls and procedures and internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in us and materially and adversely affect our business and financial results.
• Indemnification provisions in our contracts could have a material adverse effect on our consolidated results of operations, financial position or cash flows.
• We are, from time to time, and could become a party to additional litigation or subject to claims, including product liability claims, current and former employee claims, government investigations and other proceedings that could cause us to incur unanticipated expenses and otherwise have a material adverse effect on our business, results of operations and financial condition.
• Protection of our intellectual property is limited and pursuing infringers of our patents and other intellectual property rights can be costly.
• Third parties may claim we are infringing their intellectual property rights and we could be prevented from selling our products, or suffer significant litigation expense, even if these claims have no merit.
• Competitive Risks
• All of our business activities are subject to rapid technological change, new entrants, the introduction of other distribution models and long development and testing periods each of which may harm our competitive position, render our product or service offerings obsolete and require us to continuously develop technology and/or obtain licensed technology in order to compete successfully.
• Our business is highly competitive, we are reliant upon the success of our partners, and some of our competitors have significantly greater resources than we do, which could result in a loss of customers, market share and/or market acceptance.
• We rely upon various third-party companies and their technology to provide services to our customers and if we are unable to obtain such services at reasonable prices, or at all, our gross margins and our ability to provide the services of our wireless applications business could be materially adversely affected.
• Because our software may contain defects or errors, and our hardware products may incorporate defective components, our sales could decrease if these defects or errors adversely affect our reputation or delay shipments of our products.
• Risks Related to our Common Stock
• Our stock price is volatile.
• Future issuances of our shares of common stock could dilute a stockholder's ownership interest in Comtech and reduce the market price of our shares of common stock.
• Actions of activist stockholders could impact the pursuit of our business strategies and adversely affect our results of operations, financial condition and/or share price.
• Provisions in our corporate documents and Delaware law could delay or prevent a change in control of Comtech.