Proposed Penalty for Failure to Respond to FCC Directives
On July 10, 2026, the Federal Communications Commission's Enforcement Bureau released a Notice of Apparent Liability for Forfeiture and Order (DA 26-698) against Spatial Hover Inc. The Bureau proposed a $25,000 fine for apparently willfully failing to respond to an official Letter of Inquiry (LOI) and a subsequent deficiency notice.
The enforcement action stems from an investigation into whether the Texas corporation has directly or indirectly marketed uncrewed aircraft systems (UAS) within the United States that appear on the FCC's Covered List. Recipient entities are legally required under the Communications Act of 1934 to treat Bureau inquiries as binding agency orders.
Background of the Investigation and Covered List Rules
Under the Secure and Trusted Communications Networks Act of 2019, the FCC maintains a Covered List of equipment and services found to pose an unacceptable risk to U.S. national security or person safety. On December 22, 2025, the Public Safety and Homeland Security Bureau updated the Covered List to include certain foreign-produced UAS, critical components, and related surveillance equipment.
The Bureau initiated an inquiry after external research identified that Spatial Hover equipment utilized a proprietary communications protocol identical to hardware subject to the Covered List restrictions. Spatial Hover's website markets two UAS lines: the Spatial Hover E Series and T Series.
- File Number: EB-SED-26-00040749
- NAL/Acct No.: 202632100008
- FRN: 0037167046
Equipment Authorizations and Inquiries Timeline
Spatial Hover applied for and received two FCC equipment authorizations on September 30, 2025. In its filings, the company designated itself and employee Ricky Yu as the U.S. agent for service of process at an address in Houston, Texas.
The Enforcement Bureau sent an initial LOI on May 8, 2026, ordering a full response within 14 calendar days (by May 22, 2026) alongside an equipment voucher. Although postal records confirmed certified mail delivery on May 12, 2026, and email delivery receipts confirmed receipt, Spatial Hover provided no response.
The Bureau issued a follow-up Deficiency Letter on May 29, 2026, demanding a reply by June 5, 2026. Certified mail was signed for on June 1, 2026, but the company again failed to submit responsive records.
- Grantee Address of Record: 10415A Westpark Dr., Houston, TX 77042
- Agent of Record: Ricky Yu (ricky@spatialhover.com)
- Authorized Device (Model S3): FCC ID 2BQAI-S3T
- Authorized Device (Model NRC01): FCC ID 2BQAI-NRC01
Forfeiture Calculation and Compliance Order
The base forfeiture amount for failing to respond to Commission communications is $4,000 under 47 CFR ยง 1.80(b). However, the Enforcement Bureau applied an upward adjustment to $25,000, citing the intentional, egregious, and continuous nature of the non-responsiveness and the serious national security implications of investigating potential Covered List violations.
In addition to the proposed fine, the FCC ordered Spatial Hover to fully answer the May 8, 2026 LOI within 10 calendar days of the order. The company was given 30 calendar days to either pay the proposed $25,000 forfeiture or file a formal written request seeking reduction or cancellation.