IDT Corporation

We lease space in New York, New York for corporate purposes as well as a number of other locations in metropolitan areas. These leased spaces are utilized primarily to house telecommunications equipment and retail operations.

We also maintain other international office locations and telecommunications facilities in regions of Europe, Latin America, the Middle East, Asia, and Africa where we conduct operations.

• We could be harmed by network disruptions, security breaches, or other significant disruptions or failures of our IT infrastructure and related systems or of those we operate for certain of our customers.
• If technology that drives one or more of our products fails, or is perceived to fail, or if there are technical defects, our reputation could be harmed, our market share may decline, and we could be subject to various liability claims.
• Failure in our data centers or services could lead to significant costs and disruptions.
• Our revenues and profits will suffer if our distributors and sales representatives fail to effectively market and distribute our products and services.
• Our global operations subjects us to geopolitical and other risks that may harm our results of operations and financial condition.
• Our global operations subject us to additional risks which could have an adverse effect on our business, operating results, and financial condition.
• Our technology and development (“T&D”) may be adversely affected by ongoing developments in Belarus and Ukraine.
• Global and regional economic conditions could materially adversely affect our business, results of operations, financial condition, and growth.
• Our financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to other currencies.
• We depend upon industry standard protocols and third-party software, including but not limited to open-source software.
• Certain functions related to our business depend on a single supplier or small group of suppliers to carry out our business, and the inability to do business with some or all of these suppliers could have a materially adverse effect on our business and financial results.
• Our success depends in part upon our ability to provide customer service that effectively supports the needs of our customers.
• Changes to rates by our suppliers and increasing regulatory charges, tariffs or excise taxes may require us to raise prices, which could adversely affect our financial results and business.
• Our customers, particularly our IDT Global customers, could experience financial difficulties, which could adversely affect our revenues and profitability if we experience difficulties in collecting our receivables.
• We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel, hire qualified personnel, or maintain our corporate culture, we may not be able to grow effectively.
• New and existing technologies could affect our ability to track the results of ads and/or could block ads online, which would harm our business.
• Substantial and increasingly intense competition in the POS industry may harm NRS’ business.
• If NRS fails to increase advertising on its platform, our business could be adversely affected.
• The long-term success of NRS depends on its ability to develop products and services to address the rapidly evolving market for POS products and services, and, if it cannot implement successful enhancements and new features for its products and services, our business could be materially and adversely affected.
• Retailer churn could offset new terminal sales and slow or reverse the growth of the NRS network.
• NRS depends on its payment facilitator, its sponsor bank and the payment card networks, and changes in their rules, pricing or willingness to support NRS’ merchants could materially harm NRS’ business.
• NRS relies on third-party sales channels to acquire a substantial portion of its new customers.
• NRS’ expansion into new retail verticals and new geographic markets may require significant investment and may not succeed.
• We may not realize the anticipated benefits of acquisitions, including our acquisition of a controlling interest in OnCore Digital.
• BOSS Money and its retailers face a complex and dynamic regulatory landscape; changes in laws and regulations can impact business operations, and non-compliance or failure to comply with laws can result in hefty fines, penalties, operational restrictions and reputational damage.
• BOSS Money depends on a licensed network of agents for its retail money remittance business.
• BOSS Money has financial and business exposure to fluctuations in the foreign exchange markets.
• BOSS Money can be vulnerable to illegal activities and fraud schemes.
• BOSS Money’s rapid growth can strain resources and internal controls which could potentially lead to, among other things, operational inefficiencies, increased costs and reduced profitability.
• The rapid evolution of payment technologies and shifts in consumer preferences along with adoption of new technologies could disrupt the money transfer industry.
• Disruptions in mobile networks or changes in consumer preferences for mobile devices could impact our business.
• BOSS Money has less brand recognition than many of its competitors in the money remittance space which could make it harder to attract and retain customers.
• BOSS Money relies on partnerships with global banks and payout agents to process transactions in its receiving markets.
• Changes in U.S. immigration policy and enforcement could reduce the size of our target market and adversely affect Boss Money.
• net2phone’s VoIP or cloud-based communications service competes against established well financed alternative voice communication providers who may provide comparable services at comparable or lower pricing or deploy new services that net2phone is unable to offer.
• net2phone depends in part upon the capacity, reliability, and performance of several third-party providers and their network infrastructure, the failure of which could cause delays or interruptions of net2phone’s service and impact our revenue and profitability.
• Tier 1 and non-Tier 1 Telecom suppliers for Telecom Origination and Termination Services.
• Local number portability providers.
• net2phone faces risks from the outsourcing of the manufacturing of its desktop telephones (“desktop devices”).
• net2phone targets sales to small, mid-market and enterprise customers. Not properly managing these customers could negatively affect our business, cash flow and operations.
• If net2phone’s existing customers terminate their subscriptions or reduce their subscriptions and related usage, its revenues and earnings will be harmed, and we will be required to spend more money to grow net2phone’s customer base.
• net2phone must acquire new customers on an ongoing basis to maintain and increase its customers and revenues, and the significant costs to acquire new customers may hinder profitability.
• net2phone’s customer churn rate may increase in future periods, which may adversely impact its revenue or require it to spend more money to grow its customer base.
• net2phone may not be able to scale its business efficiently or quickly enough to meet its customers’ growing needs, in which case our operating results could be harmed.
• Each of our BOSS Revolution and IDT Global businesses is highly sensitive to declining prices, which may adversely affect our revenues and profitability.
• We may not be able to obtain sufficient or cost-effective termination capacity to particular destinations, which could adversely affect our revenues and profits.
• The termination of our carrier agreements with partners or our inability to enter into carrier agreements in the future could materially and adversely affect our ability to compete, which could reduce our revenues and profits.
• We hold cash, cash equivalents, debt securities and equity investments that are subject to various market risks.
• If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results, and current and potential stockholders may lose confidence in our financial reporting which could have a negative effect on the trading price of our stock.
• We may be required to record impairment charges against goodwill and other intangible assets.
• We may reduce, suspend, or discontinue our dividend or our share repurchase program.
• Changes in national policy, governmental actions related to tariffs or international trade agreements, as well as shifts in social, political, regulatory, and economic conditions or laws and policies governing foreign trade, manufacturing, development, and investment in the regions where we operate, can significantly impact our business. Such changes could lead to negative sentiments towards us, potentially depressing economic activity or restricting access to suppliers or customers and thereby have a material adverse effect on our business, results of operations and outlook.
• We provide communications and payment services to consumers and are therefore subject to various federal and state laws and regulations.
• We may be adversely affected if we fail to protect our proprietary technology.
• We may incur costs in complying with, or face exposure from the failure to comply with, laws, regulations or initiatives regarding greenhouse gas emissions or reporting of our direct and indirect emissions.
• We may be subject to claims of infringement of intellectual property rights of others, which could have a material adverse effect on our results of operations, financial condition, revenues, and profits.
• We are subject to tax and regulatory audits which could result in the imposition of liabilities that may or may not have been reserved.
• The Dodd-Frank Act, as well as the regulations required by the Dodd-Frank Act and the Consumer Financial Protection Bureau could harm us and the scope of our activities, and could harm our operations, results of operations, and financial condition.
• We are subject to licensing and other requirements imposed by U.S. state regulators, and the U.S. federal government. If we were found to be subject to or in violation of any laws or regulations governing money transmitters, we could lose our licenses, be subject to liability or be forced to change our business practices, which could harm our business, results of operations, and financial condition.
• Our disbursement partners generally are regulated institutions in their home jurisdiction, and money transfers are regulated by governments in both the United States and in the jurisdiction of the recipient. If our disbursement partners fail to comply with applicable laws, it could harm our business, results of operations, and financial condition.
• We receive, store, process, and use personal information and other data, which subjects us to governmental regulation and other legal obligations related to privacy. Our actual or perceived failure to comply with such obligations could harm our business, financial condition, and results of operations.
• We may be harmed by certain imminent FCC Orders and rules that effect the telecommunications marketplace.
• Federal and state regulations may be passed that could harm our business, financial condition, and results of operations.
• Our ability to offer services outside of the United States is subject to the local regulatory environment, which may be unfavorable, complicated, and often uncertain.
• net2phone’s VoIP services are subject to regulation in the United States and Canada. Future legislative, regulatory, or judicial actions could adversely affect net2phone’s business and expose it to liability and limit its growth potential.
• We are subject to legal proceedings in the ordinary course of business that may have a material adverse effect on our business, results of operations, cash flows, or financial condition.
• Our telecommunications services are required to comply with industry standards, FCC regulations, privacy laws as well as certain state and local jurisdiction specific regulations. Failure to comply with existing laws and any new laws that may become applicable to us may subject us to penalties, increase our operating costs, and may also require us to modify existing products and/or service.
• Our collection, processing, storage, use, and transmission of personal data could give rise to liabilities because of governmental regulation, conflicting legal requirements, differing views on data privacy, or security breaches.