Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Dec. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-28082 | |
Entity Registrant Name | KVH Industries, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 05-0420589 | |
Entity Address, Address Line One | 50 Enterprise Center | |
Entity Address, City or Town | Middletown | |
Entity Address, State or Province | RI | |
Entity Address, Postal Zip Code | 02842 | |
City Area Code | 401 | |
Local Phone Number | 847-3327 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | KVHI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,181,956 | |
Entity Central Index Key | 0001007587 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 14,402 | $ 11,376 |
Marketable securities | 55,171 | 13,147 |
Accounts receivable, net of allowance for doubtful accounts of $1,523 and $1,597 as of September 30, 2022 and December 31, 2021, respectively | 27,775 | 27,766 |
Inventories, net | 23,878 | 15,833 |
Prepaid expenses and other current assets | 3,426 | 2,637 |
Current contract assets | 1,268 | 1,230 |
Current assets held for sale | 0 | 15,841 |
Total current assets | 125,920 | 87,830 |
Property and equipment, net | 52,930 | 52,945 |
Intangible assets, net | 467 | 1,287 |
Goodwill | 5,237 | 6,570 |
Right of use assets | 1,410 | 3,055 |
Other non-current assets | 5,067 | 6,778 |
Non-current contract assets | 3,185 | 3,104 |
Deferred income tax asset | 56 | 56 |
Non-current assets held for sale | 0 | 7,169 |
Total assets | 194,272 | 168,794 |
Current liabilities: | ||
Accounts payable | 9,629 | 9,501 |
Accrued compensation and employee-related expenses | 7,258 | 6,139 |
Accrued other | 11,119 | 6,937 |
Accrued product warranty costs | 1,284 | 1,084 |
Contract liabilities | 3,816 | 3,778 |
Current operating lease liability | 963 | 1,912 |
Liability for uncertain tax positions | 624 | 592 |
Current liabilities held for sale | 0 | 3,939 |
Total current liabilities | 34,693 | 33,882 |
Other long-term liabilities | 0 | 22 |
Long-term operating lease liability | 472 | 1,224 |
Long-term contract liabilities | 4,335 | 4,466 |
Deferred income tax liability | 184 | 215 |
Non-current liabilities held for sale | 0 | 8 |
Total liabilities | 39,684 | 39,817 |
Commitments and contingencies (Notes 2, 10, 12, and 17) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; none issued | 0 | 0 |
Common stock, $0.01 par value. Authorized 30,000,000 shares; 20,606,201 and 20,342,695 shares issued at September 30, 2022 and December 31, 2021, respectively; and 19,173,507 and 18,910,001 shares outstanding at September 30, 2022 and December 31, 2021, respectively | 206 | 203 |
Additional paid-in capital | 159,555 | 156,199 |
Retained earnings (accumulated deficit) | 11,345 | (12,165) |
Accumulated other comprehensive loss | (4,667) | (3,409) |
Stockholders equity before treasury stock adjustment | 166,439 | 140,828 |
Less: treasury stock at cost, common stock, 1,432,694 shares as of September 30, 2022 and December 31, 2021 | (11,851) | (11,851) |
Total stockholders’ equity | 154,588 | 128,977 |
Total liabilities and stockholders’ equity | $ 194,272 | $ 168,794 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,523 | $ 1,597 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 20,606,201 | 20,342,695 |
Common stock, shares outstanding (in shares) | 19,173,507 | 18,910,001 |
Treasury stock, shares outstanding (in shares) | 1,432,694 | 1,432,694 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Sales: | ||||
Net sales | $ 35,169 | $ 34,388 | $ 102,873 | $ 98,650 |
Costs and expenses: | ||||
Research and development | 2,745 | 2,828 | 8,380 | 8,270 |
Sales, marketing and support | 5,710 | 6,168 | 18,355 | 19,027 |
General and administrative | 5,559 | 6,666 | 19,532 | 22,514 |
Total costs and expenses | 36,140 | 37,931 | 109,135 | 114,337 |
Loss from operations | (971) | (3,543) | (6,262) | (15,687) |
Interest income | 389 | 218 | 798 | 673 |
Interest expense | 1 | 20 | 3 | 52 |
Other income, net | 569 | 7,031 | 1,561 | 6,174 |
(Loss) income from continuing operations before income tax expense (benefit) | (14) | 3,686 | (3,906) | (8,892) |
Income tax expense (benefit) from continuing operations | 81 | 16 | 645 | (59) |
Net (loss) income from continuing operations | (95) | 3,670 | (4,551) | (8,833) |
Net income from discontinued operations, net of tax | 29,741 | 348 | 28,061 | 3,150 |
Net income (loss) | $ 29,646 | $ 4,018 | $ 23,510 | $ (5,683) |
Net (loss) income from continuing operations per common share | ||||
Basic (in shares) | $ (0.01) | $ 0.20 | $ (0.25) | $ (0.49) |
Diluted (in shares) | (0.01) | 0.20 | (0.25) | (0.49) |
Net income from discontinued operations per common share | ||||
Basic (in shares) | 1.59 | 0.02 | 1.51 | 0.17 |
Diluted (in shares) | 1.59 | 0.02 | 1.51 | 0.17 |
Net income (loss) per common share | ||||
Basic (in USD per share) | 1.58 | 0.22 | 1.27 | (0.31) |
Diluted (in USD per share) | $ 1.58 | $ 0.22 | $ 1.27 | $ (0.31) |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 18,706,000 | 18,341,000 | 18,574,000 | 18,152,000 |
Diluted (in shares) | 18,706,000 | 18,566,000 | 18,574,000 | 18,152,000 |
Product | ||||
Sales: | ||||
Net sales | $ 6,625 | $ 6,851 | $ 19,808 | $ 21,788 |
Costs and expenses: | ||||
Costs of sales | 6,747 | 5,604 | 17,363 | 16,891 |
Service | ||||
Sales: | ||||
Net sales | 28,544 | 27,537 | 83,065 | 76,862 |
Costs and expenses: | ||||
Costs of sales | $ 15,379 | $ 16,665 | $ 45,505 | $ 47,635 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 29,646 | $ 4,018 | $ 23,510 | $ (5,683) | |
Other comprehensive loss, net of tax: | |||||
Foreign currency translation adjustment | (646) | (370) | (1,258) | (106) | |
Other comprehensive (loss) income, net of tax | [1] | (646) | (370) | (1,258) | (106) |
Total comprehensive income (loss) | $ 29,000 | $ 3,648 | $ 22,252 | $ (5,789) | |
[1]Tax impact was nominal for all periods. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | (Accumulated deficit) Retained earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |
Beginning balance (in shares) at Dec. 31, 2020 | 19,863,000 | ||||||
Beginning balance at Dec. 31, 2020 | $ 131,884 | $ 199 | $ 149,170 | $ (2,402) | $ (3,232) | $ (11,851) | |
Beginning balance, treasury stock (in shares) at Dec. 31, 2020 | (1,433,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (5,683) | (5,683) | |||||
Other comprehensive loss | (106) | [1] | (106) | ||||
Stock-based compensation | 3,029 | 3,029 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 26,000 | ||||||
Issuance of common stock under employee stock purchase plan | 231 | 231 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 443,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | 2,615 | $ 4 | 2,611 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 20,332,000 | ||||||
Ending balance at Sep. 30, 2021 | 131,970 | $ 203 | 155,041 | (8,085) | (3,338) | $ (11,851) | |
Ending balance, treasury stock (in shares) at Sep. 30, 2021 | (1,433,000) | ||||||
Beginning balance (in shares) at Jun. 30, 2021 | 20,245,000 | ||||||
Beginning balance at Jun. 30, 2021 | 126,876 | $ 202 | 153,596 | (12,103) | (2,968) | $ (11,851) | |
Beginning balance, treasury stock (in shares) at Jun. 30, 2021 | (1,433,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 4,018 | 4,018 | |||||
Other comprehensive loss | (370) | [1] | (370) | ||||
Stock-based compensation | 1,042 | 1,042 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 26,000 | ||||||
Issuance of common stock under employee stock purchase plan | 231 | 231 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 61,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | 173 | $ 1 | 172 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 20,332,000 | ||||||
Ending balance at Sep. 30, 2021 | $ 131,970 | $ 203 | 155,041 | (8,085) | (3,338) | $ (11,851) | |
Ending balance, treasury stock (in shares) at Sep. 30, 2021 | (1,433,000) | ||||||
Beginning balance (in shares) at Dec. 31, 2021 | 18,910,001 | 20,343,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 128,977 | $ 203 | 156,199 | (12,165) | (3,409) | $ (11,851) | |
Beginning balance, treasury stock (in shares) at Dec. 31, 2021 | (1,432,694) | (1,433,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ 23,510 | 23,510 | |||||
Other comprehensive loss | (1,258) | [1] | (1,258) | ||||
Stock-based compensation | 2,695 | 2,695 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 22,000 | ||||||
Issuance of common stock under employee stock purchase plan | 193 | 193 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 241,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | 602 | $ 3 | 599 | ||||
Taxes accrued for net share settlement of options | $ (131) | (131) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 19,173,507 | 20,606,000 | |||||
Ending balance at Sep. 30, 2022 | $ 154,588 | $ 206 | 159,555 | 11,345 | (4,667) | $ (11,851) | |
Ending balance, treasury stock (in shares) at Sep. 30, 2022 | (1,432,694) | (1,433,000) | |||||
Beginning balance (in shares) at Jun. 30, 2022 | 20,503,000 | ||||||
Beginning balance at Jun. 30, 2022 | $ 124,028 | $ 205 | 157,996 | (18,301) | (4,021) | $ (11,851) | |
Beginning balance, treasury stock (in shares) at Jun. 30, 2022 | (1,433,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 29,646 | 29,646 | |||||
Other comprehensive loss | (646) | [1] | (646) | ||||
Stock-based compensation | 1,109 | 1,109 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 103,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | $ 451 | $ 1 | 450 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 19,173,507 | 20,606,000 | |||||
Ending balance at Sep. 30, 2022 | $ 154,588 | $ 206 | $ 159,555 | $ 11,345 | $ (4,667) | $ (11,851) | |
Ending balance, treasury stock (in shares) at Sep. 30, 2022 | (1,432,694) | (1,433,000) | |||||
[1]Tax impact was nominal for all periods. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 23,510 | $ (5,683) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Provision for doubtful accounts | 459 | 524 |
Depreciation and amortization | 10,756 | 10,772 |
Deferred income taxes | (31) | 0 |
Loss on disposals of fixed assets | 362 | 766 |
Compensation expense related to stock-based awards and employee stock purchase plan | 2,695 | 3,029 |
Unrealized currency translation gain | (808) | (35) |
PPP loan forgiveness | 0 | (6,979) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (117) | 1,194 |
Inventories | (9,643) | 34 |
Prepaid expenses, other current assets, and current contract assets | (1,543) | (955) |
Other non-current assets and non-current contract assets | 1,574 | 1,185 |
Accounts payable | 612 | (2,407) |
Contract liabilities and long-term contract liabilities | 203 | (739) |
Accrued compensation, product warranty and other | 1,993 | 1,206 |
Other long-term liabilities | 0 | 2 |
Net cash (used in) provided by operating activities | (1,467) | 1,914 |
Cash flows from investing activities: | ||
Capital expenditures | (11,000) | (15,239) |
Cash paid for acquisition of intangible asset | (42) | (47) |
Proceeds from sale of fixed assets | 0 | 100 |
Purchases of marketable securities | (55,203) | (5) |
Maturities and sales of marketable securities | 13,164 | 8,000 |
Net cash provided by (used in) investing activities | 4,297 | (7,191) |
Cash flows from financing activities: | ||
Proceeds from stock options exercised and employee stock purchase plan | 796 | 2,846 |
Payment of finance lease | (198) | (228) |
Net cash provided by financing activities | 598 | 2,618 |
Effect of exchange rate changes on cash and cash equivalents | (402) | (39) |
Net increase (decrease) in cash and cash equivalents | 3,026 | (2,698) |
Cash and cash equivalents at beginning of period | 11,376 | 12,578 |
Cash and cash equivalents at end of period | 14,402 | 9,880 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Changes in accrued other and accounts payable related to property and equipment additions | 6 | 154 |
Taxes accrued for net share settlement of options | 131 | 0 |
KVH Media Group | ||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Gain on sale of KVH Media Group Entertainment Limited | (631) | 0 |
Cash flows from investing activities: | ||
Proceeds from the sale of KVH Media Group Entertainment Limited, net of cash sold | 2,378 | 0 |
Intertial Navigation | ||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Gain on sale of KVH Media Group Entertainment Limited | (30,858) | 0 |
Cash flows from investing activities: | ||
Proceeds from the sale of KVH Media Group Entertainment Limited, net of cash sold | $ 55,000 | $ 0 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business KVH Industries, Inc. (together with its subsidiaries, the Company or KVH) designs, develops, manufactures and markets mobile connectivity products and services for the marine and land markets. KVH’s satellite-only and hybrid products enable marine customers to receive data, voice, and value-added services via satellite, cellular, and shore-based Wi-Fi networks onboard commercial, leisure, and military/government vessels. In addition, the Company’s in-motion television terminals permit customers to receive live digital television via regional satellite services in marine vessels, recreational vehicles, buses and automobiles. KVH sells its products through an extensive international network of dealers and distributors. KVH also sells and leases products to service providers and end users. KVH’s service sales represent primarily revenue earned from satellite Internet airtime services. KVH provides, for monthly fixed and per-usage fees, satellite connectivity encompassing broadband Internet and Voice over Internet Protocol (VoIP) services, to its TracNet-H series and TracPhone V-series customers via KVH’s global high-throughput satellite (HTS) network. Cellular airtime service increasingly supplements KVH’s satellite-only airtime revenue following the July 2022 launch of the KVH ONE hybrid network and TracNet H-series terminals. This product and service combination integrates global satellite service with KVH-provided cellular service in more than 150 countries, along with shore-based Wi-Fi access. AgilePlans, KVH’s connectivity as a service offering, is a monthly subscription model that provides global connectivity to commercial maritime customers. The subscription includes the choice of satellite-only and hybrid terminals, airtime data service, VoIP, daily news, subsidized shipping and installation, and global support for a monthly fee with no minimum contract commitment. KVH offers AgilePlans subscribers a variety of airtime data plans with varying data speeds and fixed data usage levels with per megabyte overage charges. These airtime plans are similar to those the Company offers to customers who elect to purchase or lease a TracNet H-series or TracPhone V-series terminal. The Company recognizes the monthly AgilePlans subscription fee as service revenue over the service delivery period. The Company retains ownership of the hardware it provides to AgilePlans customers, who must return the hardware to KVH if they decide to terminate the service. Because KVH does not sell the hardware under AgilePlans, the Company does not recognize any product revenue when the hardware is deployed to an AgilePlans customer. KVH records the cost of the hardware used by AgilePlans customers as revenue-generating assets and depreciates the cost over an estimated useful life of five years. Since the Company is retaining ownership of the hardware, it does not accrue any warranty costs for AgilePlans hardware; however, the Company expenses any maintenance costs on the hardware in the period these costs are incurred. Service sales also include the distribution of commercially licensed entertainment, including news, sports, music, and movies to commercial customers in the maritime, hotel, and retail markets through the KVH Media Group, along with supplemental value-added services. In addition, KVH earns monthly usage fees from third-party satellite connectivity services, including voice, data and Internet services, provided to its Inmarsat and Iridium customers who choose to activate their subscriptions with KVH. Service sales also include sales from product repairs and extended warranty sales. On August 9, 2022, the Company sold its inertial navigation business to EMCORE Corporation for gross proceeds of $55,000, less specified deductions and a holdback of $1,000 and subject to a working capital adjustment. The holdback was released to the Company on August 17, 2022. On August 9, 2022, the Company also entered into a Transition Services Agreement with EMCORE, pursuant to which the Company agreed to provide certain transition services to support the continued operation of the inertial navigation business for six months following the sale with two extension options of three months each. The fee is comprised of both fixed monthly fees of approximately $100 as well as variable amounts for certain additional services with escalation increases on the fixed and variable rates for each extension option. The working capital adjustment is expected to be finalized in the fourth quarter of 2022. The Company does not have any continuing involvement in these operations other than short-term transition services, which are being recorded in other income in continuing operations. The Company determined that the sale met the requirements for reporting as discontinued operations in accordance with Accounting Standards Codification (ASC) 205-20. Please see Note 18 for the discontinued operations disclosures. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated interim financial statements of KVH Industries, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company has evaluated all subsequent events through the date of this filing. All significant intercompany accounts and transactions have been eliminated in consolidation. The 2021 consolidated interim financial statements reflect the sale of the inertial navigation business as discontinued operations. See Notes 1 and 18 for further information on the sale of the inertial navigation business. The consolidated interim financial statements have not been audited by the Company’s independent registered public accounting firm and include all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition, results of operations, and cash flows for the periods presented. These consolidated interim financial statements do not include all disclosures associated with annual financial statements and accordingly should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2021 filed on March 11, 2022 with the Securities and Exchange Commission. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of operating results for the remainder of the year. Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions The preparation of interim financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim financial statements and the reported amounts of sales and expenses during the reporting periods. As described in the Company’s annual report on Form 10-K, the estimates and assumptions used by management affect the Company’s revenue recognition, valuation of accounts receivable, valuation of inventory, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of long-lived assets, including goodwill, amortization methods and periods, certain accrued expenses and other related charges, stock-based compensation, contingent liabilities, forfeitures and key valuation assumptions for its share-based awards, estimated fulfillment costs for warranty obligations, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance, and the valuation of right-of-use assets and lease liabilities. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Management Transition and Restructuring On March 7, 2022, the Company announced that its President and Chief Executive Officer, Martin Kits van Heyningen, was retiring from his executive and Board roles after more than 40 years of service and assuming a consulting position with the Company. Brent C. Bruun, its then Chief Operating Officer, was appointed as its interim President and Chief Executive Officer. Subsequently, on June 15, 2022, he was appointed as its President and Chief Executive Officer and as a Class II member of the Board of Directors. As of March 31, 2022, the Company accrued approximately $539 in consulting fees associated with a maximum of 50 hours of transition services through March 2023, which is being paid to Mr. Kits van Heyningen over the 12 months following his retirement. Approximately $269 is accrued as of September 30, 2022. In addition, the Company agreed to a separation payment of $201, which was inclusive of any amount which he may have otherwise earned under the executive bonus plan for 2021, which was paid in April 2022. The associated expenses were included in general and administrative expenses in the accompanying consolidated statements of operations. There were also modifications to Mr. Kits van Heyningen's stock option and restricted stock awards. Please see Note 5 for further discussion. In March 2022, the Company also restructured its operations to reduce costs and better pursue a more focused strategy. The Company reduced its workforce by approximately 10% and began incurring reduced expenses from these actions beginning in the second quarter of 2022. For the three months ended September 30, 2022, the Company incurred $83 in severance payments and other employee benefit costs for employees who had a severance date of December 31, 2022, none of which was paid as of September 30, 2022. For the nine months ended September 30, 2022, the Company incurred $1,901 in severance and health insurance costs and $327 in legal and advisory fees. The combined expense of $2,228 was included in the financial statement line items of the accompanying consolidated statements of operations as follows: costs of product sales of $17, costs of service sales of $55, research and development of $392, sales, marketing and support of $977, and general and administrative expenses of $787. The Company expects to incur an additional $83 in severance payments and other employee benefit costs through December 31, 2022 arising from this restructuring. The Company also modified impacted employee's stock option and restricted stock awards. Please see Note 5 for further discussion. For the three months ended September 30, 2022, we restructured our foreign operations by closing our India and Cyprus offices and our Denmark warehouse to reduce costs. Approximately $370 of severance payments, other employee benefits, and legal and advisory fees were incurred for the three and nine months ended September 30, 2022. We expect to incur an additional $100 in severance payments and other employee benefit costs through December 31, 2022 arising from this restructuring. Dispositions; Termination of Credit Facility On April 29, 2022, KVH Media Group Limited, the Company's wholly owned subsidiary, sold its subsidiary KVH Media Group Entertainment Limited for net cash proceeds of $2,378. This transaction did not meet the criteria for reporting as discontinued operations under ASC 205-20. The Company recorded a gain on the sale of approximately $630, which is recorded in other income, net in the accompanying consolidated statements of operations. See Note 14 for the reduction of goodwill and intangibles associated with the KVH Media Group reporting unit as it relates to the sale of this subsidiary. On August 9, 2022, the Company sold its inertial navigation business to EMCORE Corporation. Please see Notes 1 and 18 for further discussion. On August 9, 2022, the Company also terminated its senior secured credit facility agreement (the 2018 Credit Agreement) and the related security and pledge agreements with Bank of America, N.A., as Administrative Agent. At the time of termination, no borrowings were outstanding under the 2018 Credit Agreement. With the termination of this agreement, all associated liens were released. Executive Employment Agreements In May 2022, the Company entered into executive employment agreements with each of Brent C. Bruun, Roger A. Kuebel, Felise Feingold and Robert Balog in order to retain their services and provide them with certain benefits in the event that the Company terminates the executive’s employment without cause (as defined in the agreement) or the executive terminates his or her employment for good reason (as defined in the agreement) (either such termination, a “Qualifying Termination”), including following a change of control. The terms of the agreements are substantially identical except as to title, salary, target bonus and reporting responsibilities. The agreements provide that, if the executive continues to serve as an employee through December 31, 2022 (the “Retention Date”), the Company will pay the executive a retention bonus equal to 75% of the executive’s base salary on the agreement date, and the Company will accelerate the vesting of the executive’s equity awards that would otherwise have vested in the twelve months after the Retention Date. Please see Note 5 for further discussion regarding the equity compensation modifications. If a Qualifying Termination occurs before December 31, 2022, the executive will receive a pro rata portion of the retention bonus. If in connection with such a termination the executive becomes entitled to receive the change in control severance payments and benefits, the executive will also become entitled to receive the full retention bonus, and the Retention Date will be the later of the date of such change in control or such termination of employment. On October 11, 2022, the Company entered into an amendment to the employment agreement with Mr. Bruun that, among other things, increased his annual base salary to $448 per year, retroactive to July 1, 2022, increased his target annual incentive compensation for the second half of 2022 to 80% of his base salary (without changing his target annual incentive compensation for the first half of 2022), extended his Retention Date from December 31, 2022 to December 31, 2023, which effectively extended the period during which Mr. Bruun must remain employed by the Company in order to earn his retention bonus, and modified the amount of the retention bonus from 75% of his base salary in effect on May 2, 2022 to 75% of the highest base salary in effect for Mr. Bruun on or before the date he becomes entitled to receive the retention bonus or the “Partial Retention Bonus” (as defined in the employment agreement). The amendment did not modify the terms of the employment agreement relating to acceleration of vesting of certain equity awards if Mr. Bruun remains employed by the Company through December 31, 2022. As of September 30, 2022, the Company accrued approximately $649 for the executive employment agreements. In addition to the amendment to Mr. Bruun’s employment agreement, the Compensation Committee also granted Mr. Bruun a restricted stock award and a non-statutory stock option, which together had an aggregate grant date fair value of |
Accounting Standards Issued and
Accounting Standards Issued and Not Yet Adopted | 9 Months Ended |
Sep. 30, 2022 | |
Significant Accounting Policies [Abstract] | |
Accounting Standards Issued and Not Yet Adopted | Accounting Standards Issued and Not Yet Adopted ASC Update No. 2016-13, ASC Update No. 2018-19, ASC Update No. 2019-04, ASC Update No. 2019-05, ASC Update No. 2019-10, ASC Update No. 2019-11, ASC Update No. 2020-02, and ASC Update No. 2022-02 In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Codification (ASC) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The purpose of Update No. 2016-13 is to replace the incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. In November 2018, the FASB issued ASC Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses . This update introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost. The amendment also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In May 2019, the FASB issued ASC Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . This update introduced clarifications of the Board’s intent with respect to accrued interest, the transfer between classifications or categories for loans and debt securities, recoveries, reinsurance recoverables, projects of interest rate environments for variable-rate financial instruments, costs to sell when foreclosure is probable, consideration of expected prepayments when determining the effective interest rate, vintage disclosures, and extension and renewal options. In May 2019, the FASB issued ASC Update No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief . The amendments in the update ease the transition for entities adopting ASC Update 2016-13 and increase the comparability of financial statement information. With the exception of held-to-maturity debt securities, the amendments allow entities to irrevocably elect to apply the fair value option to financial instruments that were previously recorded at amortized cost basis within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . In November 2019, the FASB issued ASC Update No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. The amendments in this update change some effective dates for certain new accounting standards including those pertaining to Topic 326 discussed above, for certain types of entities. In November 2019, the FASB issued ASC Update No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (Topic 326). The update is effective for entities that have adopted ASU 2016-13. The purpose of Update No. 2019-11 is to clarify the scope of the recovery guidance to purchased financial assets with credit deterioration. In February 2020, the FASB issued ASC Update No. 2020-02, Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842). The purpose of Update No. 2020-02 is to clarify the scope and interpretation of the standard. In March 2022, the FASB issued ASC update 2022-02, Financial Instruments – Credit Losses (Topic 326) – Troubled Debt Restructurings and Vintage Disclosures . The vintage disclosure portion of this guidance is applicable to the Company, which requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must included the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. As a smaller reporting company the effective date for Topic 326 will be the fiscal year beginning after December 15, 2022. The adoption of Update Nos. 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-20 and 2022-02 is not expected to have a material impact on the Company's financial position or results of operations. There are no other recent accounting pronouncements issued by the FASB that the Company expects would have a material impact on the Company's financial statements. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2022 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities as of September 30, 2022 and December 31, 2021 consisted of the following: September 30, 2022 Amortized Gross Gross Fair Money market mutual funds $ 50,265 $ — $ — $ 50,265 United States treasuries 4,906 — 4,906 Total marketable securities designated as available-for-sale $ 55,171 $ — $ — $ 55,171 December 31, 2021 Amortized Gross Gross Fair Money market mutual funds $ 13,147 $ — $ — $ 13,147 Total marketable securities designated as available-for-sale $ 13,147 $ — $ — $ 13,147 Interest income from marketable securities was $193 and $1 during the three months ended September 30, 2022 and 2021, respectively, and $203 and $5 during the nine months ended September 30, 2022 and 2021, respectively. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stockholder's Equity | Stockholder's Equity (a) Stock Equity and Incentive Plan The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation . On June 8, 2022, at the Company's 2022 Annual Meeting of Stockholders, the stockholders of the Company approved an amendment and restatement of the Company’s current equity compensation plan to increase the number of shares of common stock reserved for issuance under the plan by 1,280 shares, from 4,800 shares to 6,080 shares (excluding rollover shares). Stock-based compensation expense was $1,103 and $1,031, excluding $6 and $11 of compensation charges related to our Amended and Restated 1996 Employee Stock Purchase Plan, or the ESPP, for the three months ended September 30, 2022 and 2021, respectively, and $2,663 and $2,988, excluding $32 and $41 of compensation charges related to ESPP, for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was $2,887 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.61 years. As of September 30, 2022, there was $3,129 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.44 years. Stock Options During the three months ended September 30, 2022, the Company issued 53 shares of common stock upon the exercise of stock options and received $464 as payment for the exercise price. No shares were surrendered to the Company to satisfy minimum tax withholding obligations. Additionally, during the three months ended September 30, 2022, no stock options were granted and 87 stock options expired, were canceled or were forfeited. During the nine months ended September 30, 2022, upon the net exercise of 301 stock options, the Company issued 94 shares of common stock and received $613 as payment for the exercise price, 14 shares were surrendered to the Company to satisfy minimum tax withholding obligations, and 193 shares were cancelled. Additionally, during the nine months ended September 30, 2022, 398 stock options were granted and 416 stock options expired, were canceled or were forfeited. During the nine months ended September 30, 2021, 496 stock options were granted. The Company has estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions utilized to determine the fair value of options granted during the nine months ended September 30, 2022 are as follows: Nine Months Ended September 30, 2022 2021 Risk-free interest rate 2.97 % 0.92 % Expected volatility 43.16 % 44.98 % Expected life (in years) 4.24 4.28 Dividend yield 0 % 0 % During the nine months ended September 30, 2022, there were accelerated vesting and extended exercise term modifications of stock options as it related to the retirement of Mr. Kits van Heyningen, which resulted in a reduction of approximately $85 in compensation cost. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of stock options for employees terminated as part of the Company's restructuring, which resulted in a reduction of approximately $28 for the three months ended September 30, 2022 and approximately $109 for the nine months ended September 30, 2022 in compensation cost. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of stock options for executive employment agreements, which resulted in an acceleration of compensation expense of approximately $72 for the three months ended September 30, 2022 and approximately $120 for the nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of stock options for employees transitioned as part of the sale of the Company's inertial navigation business, which resulted in an acceleration of compensation expense of approximately $81, included in discontinued operations. As of September 30, 2022, there were 1,808 options outstanding with a weighted average exercise price of $9.82 per share and 844 options exercisable with a weighted average exercise price of $10.13 per share. Restricted Stock During the three months ended September 30, 2022, 60 shares of restricted stock were granted with a weighted average grant date fair value of $9.14 per share and 10 shares of restricted stock were forfeited. Additionally, during the three months ended September 30, 2022, 102 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. During the nine months ended September 30, 2022, 243 shares of restricted stock were granted with a weighted average grant date fair value of $8.50 per share and 96 shares of restricted stock were forfeited. Additionally, during the nine months ended September 30, 2022, 249 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. As of September 30, 2022, there were 388 shares of restricted stock outstanding that were still subject to service-based vesting conditions. During the nine months ended September 30, 2022, there were accelerated vesting term modifications of restricted stock as it related to the retirement of Mr. Kits van Heyningen, which resulted in an acceleration in compensation expense of approximately $186. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of restricted stock for employees terminated as part of the Company's restructuring, which resulted in an acceleration in compensation expense of approximately $31 for the three months ended September 30, 2022 and approximately $156 for the nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of restricted stock for executive employment agreements, which resulted in an acceleration in compensation expense of approximately $99 for the three months ended September 30, 2022 and approximately $167 for the nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, there were accelerated vesting term modifications of restricted stock for employees transitioned as part of the sale of the Company's inertial navigation business, which resulted in an acceleration in compensation expense of approximately $374, included in discontinued operations. As of September 30, 2022, the Company had no unvested outstanding options and no outstanding shares of restricted stock that were subject to performance-based or market-based vesting conditions. (b) Employee Stock Purchase Plan The Company's ESPP affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the three and nine months ended September 30, 2022, 0 and 22 shares were issued under the ESPP plan, respectively. During the three and nine months ended September 30, 2021, 26 shares were issued under the ESPP plan. The Company recorded compensation charges related to the ESPP of $6 and $11 for the three months ended September 30, 2022 and 2021, respectively, and $32 and $41 for the nine months ended September 30, 2022 and 2021, respectively. (c) Stock-Based Compensation Expense The following table presents stock-based compensation expense, including under the ESPP, in the Company's consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of product sales $ 333 $ 78 $ 468 $ 194 Cost of service sales 3 3 8 8 Research and development 371 150 702 491 Sales, marketing and support 14 239 225 664 General and administrative 388 572 1,292 1,672 $ 1,109 $ 1,042 $ 2,695 $ 3,029 (d) Accumulated Other Comprehensive Loss (AOCL) Comprehensive loss includes net loss and unrealized gains and losses from foreign currency translation. The components of the Company’s comprehensive loss and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive loss. The balances for the three months ended September 30, 2022 and 2021 are as follows: Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, June 30, 2022 $ (4,021) $ (4,021) Other comprehensive loss (646) (646) Net other comprehensive loss (646) (646) Balance, September 30, 2022 $ (4,667) $ (4,667) Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, June 30, 2021 $ (2,968) $ (2,968) Other comprehensive loss (370) (370) Net other comprehensive loss (370) (370) Balance, September 30, 2021 $ (3,338) $ (3,338) The balances for the nine months ended September 30, 2022 and 2021 are as follows: Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, December 31, 2021 $ (3,409) $ (3,409) Other comprehensive loss (1,258) (1,258) Net other comprehensive loss (1,258) (1,258) Balance, September 30, 2022 $ (4,667) $ (4,667) Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, December 31, 2020 $ (3,232) $ (3,232) Other comprehensive loss (106) (106) Net other comprehensive loss (106) (106) Balance, September 30, 2021 $ (3,338) $ (3,338) |
Net (Loss) Income from Continui
Net (Loss) Income from Continuing Operations per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income from Continuing Operations per Common Share | Net (Loss) Income from Continuing Operations per Common Share Basic net (loss) income per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per share incorporates the dilutive effect of common stock equivalent options, warrants and other convertible securities, if any, as determined with the treasury stock accounting method. For the three and nine months ended September 30, 2022, since there was a net loss from continuing operations, the Company excluded all 1,572 and 1,763, respectively, in outstanding stock options and non-vested restricted shares from its diluted loss per share calculation, as inclusion of these securities would have reduced the net loss per share. For the nine months ended September 30, 2021, since there was a net loss from continuing operations, the Company excluded all 756 in outstanding stock options and non-vested restricted shares from its diluted loss per share calculation, as inclusion of these securities would have reduced the net loss per share. A reconciliation of the basic and diluted weighted average common shares outstanding is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Weighted average common shares outstanding—basic 18,706 18,341 18,574 18,152 Dilutive common shares issuable in connection with stock plans — 225 — — Weighted average common shares outstanding—diluted 18,706 18,566 18,574 18,152 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net are stated at the lower of cost and net realizable value using the first-in first-out costing method. Inventories as of September 30, 2022 and December 31, 2021 include the costs of material, labor, and factory overhead. Components of inventories consist of the following: September 30, December 31, Raw materials $ 14,974 $ 9,412 Work in process 4,473 2,861 Finished goods 4,431 3,560 $ 23,878 $ 15,833 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, as of September 30, 2022 and December 31, 2021 consist of the following: September 30, December 31, Land $ 2,833 $ 2,833 Building and improvements 18,839 18,822 Leasehold improvements 455 472 Machinery and equipment 5,683 5,233 Revenue-generating assets 70,292 63,587 Office and computer equipment 14,377 14,633 Motor vehicles 31 31 112,510 105,611 Less accumulated depreciation (59,580) (52,666) $ 52,930 $ 52,945 Depreciation expense was $3,239 and $3,179 for the three months ended September 30, 2022 and 2021, respectively, and $9,542 and $8,918 for the nine months ended September 30, 2022 and 2021, respectively. Certain revenue-generating hardware assets are utilized by the Company in the delivery of the Company's airtime services, media and other content. |
Product Warranty
Product Warranty | 9 Months Ended |
Sep. 30, 2022 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty The Company’s products carry standard limited warranties that range from one The following table summarizes product warranty activity during 2022 and 2021: Nine Months Ended September 30, 2022 2021 Beginning balance $ 1,084 $ 1,725 Charges to expense 964 280 Costs incurred (764) (786) Ending balance $ 1,284 $ 1,219 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Paycheck Protection Program Loan In May 2020, the Company received a $6,927 loan (the PPP Loan) from Bank of America, N.A., (the Lender) under the Paycheck Protection Program (PPP), which was established under the Coronavirus Aid, Relief, and Economic Security Act (as modified by the Paycheck Protection Flexibility Act of 2020, the CARES Act) and is administered by the U.S. Small Business Administration (the SBA). The term of the PPP Loan was two years from the funding date, and the interest rate was 1.00%. Interest on the loan accrued from the funding date, but was deferred. In August 2021, the Company applied for forgiveness of the full amount of the PPP Loan. On September 24, 2021, the Company received notification from the Lender that, on September 19, 2021, the SBA had determined that the PPP Loan forgiveness application was approved, and the PPP Loan, including all accrued interest thereon, was paid in full by the SBA. The forgiveness of the PPP Loan is recognized in other income, net in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2021. Line of Credit On August 9, 2022, the Company terminated the 2018 Credit Agreement and the related security and pledge agreements with Bank of America, N.A., as Administrative Agent. At the time of termination, no borrowings were outstanding under the 2018 Credit Agreement. With the termination of this agreement, all associated liens were released. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company operates as one reportable segment as a result of the sale of its inertial navigation business on August 9, 2022. The Company's performance is impacted by the levels of activity in the marine and land mobile markets, among others. Performance in any particular period could be impacted by the timing of sales to certain large customers. The Company primarily manufactures and distributes a comprehensive family of mobile satellite antenna products and services that provide access to television, the Internet and voice services while on the move. Product sales accounted for 19% and 20% of the Company's consolidated net sales for the three months ended September 30, 2022 and 2021, respectively, and 19% and 22% of the Company's consolidated net sales for the nine months ended September 30, 2022 and 2021, respectively. Service sales of mini-VSAT Broadband airtime service accounted for 76% and 72% of the Company's consolidated net sales for the three months ended September 30, 2022 and 2021, respectively, and 74% and 70% of the Company's consolidated net sales for the nine months ended September 30, 2022 and 2021, respectively. The balance of service sales are comprised of distribution of commercially licensed entertainment, product repairs, and extended warranty sales. No other single product class accounts for 10% or more of the Company's consolidated net sales. The Company operates in a number of major geographic areas, including internationally. Revenues from international locations primarily include Singapore, Canada, European Union countries, and other European countries, as well as countries in Africa, Asia/Pacific, the Middle East, and India. Revenues are based upon customer location and internationally represented 62% and 58% of consolidated net sales for the three months ended September 30, 2022 and 2021, respectively, and 61% and 58% of consolidated net sales for the nine months ended September 30, 2022 and 2021, respectively. Sales to Singapore customers represented 17% and 14% of the Company's consolidated net sales for the three months ended September 30, 2022 and 2021, respectively. No other individual foreign country represented 10% or more of the Company's consolidated net sales for the three months ended September 30, 2022 and 2021. Sales to Singapore customers represented 16% and 13% of the Company's consolidated net sales for the nine months ended September 30, 2022 and 2021, respectively. No other individual foreign country represented 10% or more of the Company's consolidated net sales for the nine months ended September 30, 2022 and 2021. As of September 30, 2022 and December 31, 2021, the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets. |
Legal Matters
Legal Matters | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters In the ordinary course of business, the Company is a party to inquiries, legal proceedings and claims including, from time to time, disagreements with vendors and customers. The Company is not a party to any lawsuit or proceeding that, in management's opinion, is likely to materially harm the Company's business, results of operations, financial condition, or cash flows. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds and United States treasuries. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company has no Level 2 assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 assets. Assets and liabilities measured at fair value are based on the valuation techniques identified in the table below. The following tables present financial assets and liabilities at September 30, 2022 and December 31, 2021 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy: September 30, 2022 Total Level 1 Level 2 Level 3 Valuation Assets Money market mutual funds $ 50,265 $ 50,265 $ — $ — (a) United States treasuries 4,906 4,906 — — (a) December 31, 2021 Total Level 1 Level 2 Level 3 Valuation Assets Money market mutual funds $ 13,147 $ 13,147 $ — $ — (a) (a) Market approach—prices and other relevant information generated by market transactions involving identical or comparable assets. The carrying amount of certain financial instruments approximates fair value due to their short-term, highly liquid nature. These instruments include cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of the Company's operating and financing lease liabilities approximates fair value based on currently available quoted rates of similarly structured borrowings. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company's non-financial assets, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and subsequently re-measured if indications of impairment exist. There was no impairment of the Company's non-financial assets noted as of September 30, 2022. The Company does not have any liabilities that are recorded at fair value on a non-recurring basis. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2022: Amounts Balance at December 31, 2021 $ 6,570 Sale of KVH Media Group Entertainment Limited (1,038) Foreign currency translation adjustment (295) Balance at September 30, 2022 $ 5,237 Intangible Assets The changes in the carrying amount of intangible assets during the nine months ended September 30, 2022 are as follows: Amounts Balance at December 31, 2021 $ 1,287 Amortization expense (409) Intangible assets acquired in asset acquisition 42 Sale of KVH Media Group Entertainment Limited (352) Foreign currency translation adjustment (101) Balance at September 30, 2022 $ 467 Intangible assets arose from the acquisition of KVH Media Group (acquired as Headland Media Limited) in May 2013. These intangible assets are being amortized on a straight-line basis over the estimated useful life of 10 years for acquired subscriber relationships. The intangible assets were recorded in pounds sterling and fluctuations in exchange rates cause these amounts to increase or decrease from time to time. As a result of the sale of KVH Media Group Entertainment Limited in April 2022, the Company determined the goodwill and intangible assets associated with this business based on an income approach which estimated the fair value of the reporting unit before and after the sale, and included such amounts in the determination of the gain on sale of the subsidiary. In January 2017, the Company completed the acquisition of certain subscriber relationships from a third party. This acquisition did not meet the definition of a business under ASC 2017-01, Business Combinations (Topic 805)-Clarifying the Definition of a Business , which the Company adopted on October 1, 2016. The Company ascribed $100 of the initial purchase price to the acquired subscriber relationships definite-lived intangible assets with an initial estimated useful life of 10 years. Under the asset purchase agreement, the purchase price includes a component of contingent consideration under which the Company is required to pay a percentage of recurring revenues received from the acquired subscriber relationships through 2026 up to a maximum annual payment of $114. As of September 30, 2022, the carrying value of the intangible assets acquired in the asset acquisition was $450. As the acquisition did not represent a business combination, the contingent consideration arrangement is recognized only when the contingency is resolved and the consideration is paid or becomes payable. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships. An additional $42 and $47 of consideration was earned under the contingent consideration arrangement during the nine months ended September 30, 2022 and 2021, respectively. Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at September 30, 2022 and December 31, 2021, respectively: Gross Carrying Amount Accumulated Amortization Net Carrying Value September 30, 2022 Subscriber relationships $ 7,624 $ 7,157 $ 467 Distribution rights 315 315 — Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 10,822 $ 10,355 $ 467 December 31, 2021 Subscriber relationships $ 8,033 $ 6,746 $ 1,287 Distribution rights 315 315 — Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 11,231 $ 9,944 $ 1,287 Amortization expense related to intangible assets was $90 and $277 for the three months ended September 30, 2022, respectively, and $409 and $833 for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense was categorized as general and administrative expense. As of September 30, 2022, the total weighted average remaining useful lives of the definite-lived intangible assets was 3.2 years. Estimated future amortization expense remaining at September 30, 2022 for intangible assets acquired was as follows: Years ending December 31, Remainder of 2022 $ 87 2023 168 2024 68 2025 68 2026 68 Thereafter 8 Total future amortization expense $ 467 For definite-lived intangible assets, the Company assesses the carrying value of these assets whenever events or circumstances indicate that the carrying value may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset, or asset group, to the future undiscounted cash flows expected to be generated by the asset, or asset group. There were no events or changes in circumstances during the nine months ended September 30, 2022 which indicated that an assessment of the impairment of goodwill and intangible assets was required. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (ASC 606) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers (ASC 606) | Revenue from Contracts with Customers (ASC 606)In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products and services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these products and services. Disaggregation of Revenue for Continuing Operations The following table summarizes net sales from contracts with customers for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Product, transferred at point in time $ 5,974 $ 6,361 $ 18,057 $ 19,741 Product, transferred over time 651 490 1,751 2,047 Service 28,544 27,537 83,065 76,862 Total net sales $ 35,169 $ 34,388 $ 102,873 $ 98,650 Revenue recognized during the three months ended September 30, 2022 and 2021 from amounts included in contract liabilities at the beginning of the period was $572 and $430, respectively. Revenue recognized during the nine months ended September 30, 2022 and 2021 from amounts included in contract liabilities at the beginning of the period was $1,645 and $1,899, respectively. For product sales, the delivery of the Company’s performance obligations are generally transferred to the customer, and associated revenue is recognized, at a point in time, with the exception of certain mini-VSAT contracts which are transferred to customers over time. For service sales, the delivery of the Company’s performance obligations are transferred to the customer, and associated revenue is recognized, over time. Business and Credit Concentrations Concentrations of risk with respect to trade accounts receivable are generally limited due to the large number of customers and their dispersion across several geographic areas. Although the Company does not foresee that credit risk associated with these receivables will deviate from historical experience, repayment is dependent upon the financial stability of those individual customers. The Company establishes allowances for potential bad debts and evaluates, on a monthly basis, the adequacy of those reserves based upon historical experience and its expectations for future collectability concerns. The Company performs ongoing credit evaluations of the financial condition of its customers and generally does not require collateral. No single customer accounted for 10% or more of consolidated net sales for the nine months ended September 30, 2022 or 2021. One customer accounted for 17% of accounts receivable at September 30, 2022. Two customers accounted for approximately 16% and 14% of accounts receivable at December 31, 2021. One customer accounted for 63% and 54% of long-term accounts receivable included in other non-current assets on the consolidated balance sheets related to sales-type leases at September 30, 2022 and December 31, 2021, respectively. Certain components from third parties used in the Company’s products are procured from single sources of supply. The failure of a supplier, including a subcontractor, to deliver on schedule could delay or interrupt the Company’s delivery of products and thereby materially adversely affect the Company’s revenues and operating results. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate from continuing operations for the three and nine months ended September 30, 2022 was (578.6)% and (16.5)%, respectively, compared with 0.4% and 0.7% for the corresponding period in the prior year. The effective income tax rate is based on estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable periods, including retroactive changes in tax legislation, settlements of tax audits or assessments, and the resolution or identification of tax position uncertainties. For the three and nine months ended September 30, 2022 and 2021, the effective tax rates from continuing operations were lower than the statutory tax rate primarily due to the Company maintaining a valuation allowance reserve on its U.S. deferred tax assets, the composition of income from foreign jurisdictions taxed at lower rates and foreign withholding taxes on payments to the U.S. As of September 30, 2022 and December 31, 2021, the Company had reserves for uncertain tax positions of $624 and $592, respectively. There were no material changes during the nine months ended September 30, 2022 to the Company’s reserve for uncertain tax positions. The Company estimates that it is reasonably possible that the balance of unrecognized tax benefits as of September 30, 2022 may decrease $20 in the next twelve months as a result of a lapse of statutes of limitations and settlements with taxing authorities. The Company’s tax jurisdictions include the United States, the United Kingdom, Denmark, Cyprus, Norway, Brazil, Singapore, Japan and India. In general, the statute of limitations with respect to the Company's United States federal income taxes has expired for years prior to 2019, and the relevant state and foreign statutes vary. However, preceding years remain open to examination by United States federal and state and foreign taxing authorities to the extent of future utilization of net operating losses and research and development tax credits generated in each preceding year. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense from continuing operations was $507 and $920 for the three months ended September 30, 2022 and 2021, respectively, and was $1,588 and $2,824 for the nine months ended September 30, 2022 and 2021, respectively. Short-term operating lease costs were $41 and $66 for the three months ended September 30, 2022 and 2021, respectively, and were $139 and $181 for the nine months ended September 30, 2022 and 2021, respectively. Maturities of lease liabilities as of September 30, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows: Remainder of 2022 $ 436 2023 744 2024 308 2025 8 Total minimum lease payments $ 1,496 Less amount representing interest $ (61) Present value of net minimum operating lease payments $ 1,435 Less current installments of obligation under current-operating lease liabilities $ 963 Obligations under long-term operating lease liabilities, excluding current installments $ 472 Weighted-average remaining lease term - operating leases (years) 1.44 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. During the first quarter of 2021, the terms of this lease were adjusted and the Company discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of September 30, 2022, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $846, respectively. The obligation under capital leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for the remaining capital assets was $45 for both the three months ended September 30, 2022 and 2021 and was $136 for both the nine months ended September 30, 2022 and 2021. The future minimum lease payments under this financing lease as of September 30, 2022 are: Remainder of 2022 $ 66 2023 22 Total minimum lease payments $ 88 Less amount representing interest $ — Present value of net minimum financing lease payments $ 88 Less current installments of obligation under accrued other $ 88 Obligations under other long-term liabilities, excluding current installments $ — Weighted-average remaining lease term - finance leases (years) 0.42 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as product revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three The current portion of the net investment in these leases was $3,911 as of September 30, 2022 and the non-current portion of the net investment in these leases was $5,059 as of September 30, 2022. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $191 and $218 during the three months ended September 30, 2022 and 2021, respectively, and was $591 and $670 during the nine months ended September 30, 2022 and 2021, respectively. The future undiscounted cash flows from these leases as of September 30, 2022 are: Remainder of 2022 $ 1,640 2023 3,651 2024 2,729 2025 1,360 2026 542 2027 87 Total undiscounted cash flows $ 10,009 Present value of lease payments $ 8,970 Difference between undiscounted cash flows and discounted cash flows $ 1,039 In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases. As of September 30, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,856 and $423, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $96 and $267 for the three and nine months ended September 30, 2022, respectively. Lease revenue recognized was $141 and $400 for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, minimum future lease payments to be recognized on the operating leases are as follows: Remainder of 2022 $ 274 2023 548 2024 338 2025 20 Total $ 1,180 |
Leases | Leases Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense from continuing operations was $507 and $920 for the three months ended September 30, 2022 and 2021, respectively, and was $1,588 and $2,824 for the nine months ended September 30, 2022 and 2021, respectively. Short-term operating lease costs were $41 and $66 for the three months ended September 30, 2022 and 2021, respectively, and were $139 and $181 for the nine months ended September 30, 2022 and 2021, respectively. Maturities of lease liabilities as of September 30, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows: Remainder of 2022 $ 436 2023 744 2024 308 2025 8 Total minimum lease payments $ 1,496 Less amount representing interest $ (61) Present value of net minimum operating lease payments $ 1,435 Less current installments of obligation under current-operating lease liabilities $ 963 Obligations under long-term operating lease liabilities, excluding current installments $ 472 Weighted-average remaining lease term - operating leases (years) 1.44 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. During the first quarter of 2021, the terms of this lease were adjusted and the Company discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of September 30, 2022, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $846, respectively. The obligation under capital leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for the remaining capital assets was $45 for both the three months ended September 30, 2022 and 2021 and was $136 for both the nine months ended September 30, 2022 and 2021. The future minimum lease payments under this financing lease as of September 30, 2022 are: Remainder of 2022 $ 66 2023 22 Total minimum lease payments $ 88 Less amount representing interest $ — Present value of net minimum financing lease payments $ 88 Less current installments of obligation under accrued other $ 88 Obligations under other long-term liabilities, excluding current installments $ — Weighted-average remaining lease term - finance leases (years) 0.42 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as product revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three The current portion of the net investment in these leases was $3,911 as of September 30, 2022 and the non-current portion of the net investment in these leases was $5,059 as of September 30, 2022. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $191 and $218 during the three months ended September 30, 2022 and 2021, respectively, and was $591 and $670 during the nine months ended September 30, 2022 and 2021, respectively. The future undiscounted cash flows from these leases as of September 30, 2022 are: Remainder of 2022 $ 1,640 2023 3,651 2024 2,729 2025 1,360 2026 542 2027 87 Total undiscounted cash flows $ 10,009 Present value of lease payments $ 8,970 Difference between undiscounted cash flows and discounted cash flows $ 1,039 In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases. As of September 30, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,856 and $423, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $96 and $267 for the three and nine months ended September 30, 2022, respectively. Lease revenue recognized was $141 and $400 for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, minimum future lease payments to be recognized on the operating leases are as follows: Remainder of 2022 $ 274 2023 548 2024 338 2025 20 Total $ 1,180 |
Leases | Leases Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense from continuing operations was $507 and $920 for the three months ended September 30, 2022 and 2021, respectively, and was $1,588 and $2,824 for the nine months ended September 30, 2022 and 2021, respectively. Short-term operating lease costs were $41 and $66 for the three months ended September 30, 2022 and 2021, respectively, and were $139 and $181 for the nine months ended September 30, 2022 and 2021, respectively. Maturities of lease liabilities as of September 30, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows: Remainder of 2022 $ 436 2023 744 2024 308 2025 8 Total minimum lease payments $ 1,496 Less amount representing interest $ (61) Present value of net minimum operating lease payments $ 1,435 Less current installments of obligation under current-operating lease liabilities $ 963 Obligations under long-term operating lease liabilities, excluding current installments $ 472 Weighted-average remaining lease term - operating leases (years) 1.44 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. During the first quarter of 2021, the terms of this lease were adjusted and the Company discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of September 30, 2022, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $846, respectively. The obligation under capital leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for the remaining capital assets was $45 for both the three months ended September 30, 2022 and 2021 and was $136 for both the nine months ended September 30, 2022 and 2021. The future minimum lease payments under this financing lease as of September 30, 2022 are: Remainder of 2022 $ 66 2023 22 Total minimum lease payments $ 88 Less amount representing interest $ — Present value of net minimum financing lease payments $ 88 Less current installments of obligation under accrued other $ 88 Obligations under other long-term liabilities, excluding current installments $ — Weighted-average remaining lease term - finance leases (years) 0.42 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as product revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three The current portion of the net investment in these leases was $3,911 as of September 30, 2022 and the non-current portion of the net investment in these leases was $5,059 as of September 30, 2022. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $191 and $218 during the three months ended September 30, 2022 and 2021, respectively, and was $591 and $670 during the nine months ended September 30, 2022 and 2021, respectively. The future undiscounted cash flows from these leases as of September 30, 2022 are: Remainder of 2022 $ 1,640 2023 3,651 2024 2,729 2025 1,360 2026 542 2027 87 Total undiscounted cash flows $ 10,009 Present value of lease payments $ 8,970 Difference between undiscounted cash flows and discounted cash flows $ 1,039 In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases. As of September 30, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,856 and $423, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $96 and $267 for the three and nine months ended September 30, 2022, respectively. Lease revenue recognized was $141 and $400 for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, minimum future lease payments to be recognized on the operating leases are as follows: Remainder of 2022 $ 274 2023 548 2024 338 2025 20 Total $ 1,180 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During the third quarter of 2022, the Company sold its inertial navigation business. The Company determined that the sale met the requirements for reporting as discontinued operations in accordance with Accounting Standards Codification (ASC) 205-20. Please see Note 1 for further discussion. The following table presents a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued operations to the amounts presented separately in the Company's consolidated balance sheet: December 31, 2021 Accounts receivable, net $ 5,882 Inventories, net 8,807 Prepaid expenses and other current assets 1,152 Current assets held for sale $ 15,841 Property and equipment, net 7,169 Non-current assets held for sale $ 7,169 Accounts payable 1,764 Accrued compensation and employee-related expenses 914 Accrued other 955 Accrued product warranty costs 95 Contract liabilities 211 Current liabilities held for sale $ 3,939 Other long-term liabilities 8 Non-current liabilities held for sale $ 8 Net assets held for sale 19,063 The following table presents a reconciliation of the major financial line items constituting the results for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Company's consolidated statements of operations (through August 9, 2022, the date the inertial navigation business was sold): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Sales: Product $ 1,276 $ 8,388 $ 16,042 $ 29,152 Service 218 208 679 837 Net sales 1,494 8,596 16,721 29,989 Costs and expenses: Costs of product sales 1,504 5,341 12,732 17,168 Costs of service sales 169 173 457 750 Research and development 374 1,507 3,147 5,137 Sales, marketing and support 348 1,261 3,035 3,885 Other income, net 12 34 81 101 (Loss) income from discontinued operations before income tax expense (889) 348 (2,569) 3,150 Gain on sale of discontinued operations before tax expense 30,858 — 30,858 — Total income from discontinued operations before tax expense $ 29,969 $ 348 $ 28,289 $ 3,150 Income tax expense on discontinued operations 228 — 228 — Net income from discontinued operations, net of tax $ 29,741 $ 348 $ 28,061 $ 3,150 Net income from discontinued operations per common share Basic $ 1.59 $ 0.02 $ 1.51 $ 0.17 Diluted $ 1.59 $ 0.02 $ 1.51 $ 0.17 Weighted average number of common shares outstanding: Basic 18,706 18,341 18,574 18,152 Diluted 18,706 18,566 18,574 18,152 The following table presents supplemental cash flow information of the discontinued operations: Nine Months Ended September 30, 2022 2021 Cash (used in) provided by operating activities-discontinued operations $ (3,853) $ 3,364 Cash used in investing activities-discontinued operations $ (307) $ (846) The following table presents non-cash expenses from discontinued operations: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Depreciation $ 269 $ 353 $ 805 $ 1,021 Compensation expense related to stock-based awards and employee stock purchase plan $ 380 $ 207 $ 580 $ 407 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated interim financial statements of KVH Industries, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company has evaluated all subsequent events through the date of this filing. All significant intercompany accounts and transactions have been eliminated in consolidation. The 2021 consolidated interim financial statements reflect the sale of the inertial navigation business as discontinued operations. See Notes 1 and 18 for further information on the sale of the inertial navigation business. |
Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions | Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions The preparation of interim financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim financial statements and the reported amounts of sales and expenses during the reporting periods. As described in the Company’s annual report on Form 10-K, the estimates and assumptions used by management affect the Company’s revenue recognition, valuation of accounts receivable, valuation of inventory, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of long-lived assets, including goodwill, amortization methods and periods, certain accrued expenses and other related charges, stock-based compensation, contingent liabilities, forfeitures and key valuation assumptions for its share-based awards, estimated fulfillment costs for warranty obligations, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance, and the valuation of right-of-use assets and lease liabilities. |
Accounting Standards Issued and Not Yet Adopted | Accounting Standards Issued and Not Yet Adopted ASC Update No. 2016-13, ASC Update No. 2018-19, ASC Update No. 2019-04, ASC Update No. 2019-05, ASC Update No. 2019-10, ASC Update No. 2019-11, ASC Update No. 2020-02, and ASC Update No. 2022-02 In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Codification (ASC) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The purpose of Update No. 2016-13 is to replace the incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. In November 2018, the FASB issued ASC Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses . This update introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost. The amendment also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In May 2019, the FASB issued ASC Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . This update introduced clarifications of the Board’s intent with respect to accrued interest, the transfer between classifications or categories for loans and debt securities, recoveries, reinsurance recoverables, projects of interest rate environments for variable-rate financial instruments, costs to sell when foreclosure is probable, consideration of expected prepayments when determining the effective interest rate, vintage disclosures, and extension and renewal options. In May 2019, the FASB issued ASC Update No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief . The amendments in the update ease the transition for entities adopting ASC Update 2016-13 and increase the comparability of financial statement information. With the exception of held-to-maturity debt securities, the amendments allow entities to irrevocably elect to apply the fair value option to financial instruments that were previously recorded at amortized cost basis within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . In November 2019, the FASB issued ASC Update No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. The amendments in this update change some effective dates for certain new accounting standards including those pertaining to Topic 326 discussed above, for certain types of entities. In November 2019, the FASB issued ASC Update No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (Topic 326). The update is effective for entities that have adopted ASU 2016-13. The purpose of Update No. 2019-11 is to clarify the scope of the recovery guidance to purchased financial assets with credit deterioration. In February 2020, the FASB issued ASC Update No. 2020-02, Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842). The purpose of Update No. 2020-02 is to clarify the scope and interpretation of the standard. In March 2022, the FASB issued ASC update 2022-02, Financial Instruments – Credit Losses (Topic 326) – Troubled Debt Restructurings and Vintage Disclosures . The vintage disclosure portion of this guidance is applicable to the Company, which requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must included the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. As a smaller reporting company the effective date for Topic 326 will be the fiscal year beginning after December 15, 2022. The adoption of Update Nos. 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-20 and 2022-02 is not expected to have a material impact on the Company's financial position or results of operations. There are no other recent accounting pronouncements issued by the FASB that the Company expects would have a material impact on the Company's financial statements. |
Stock Equity and Incentive Plan | The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation |
Fair Value Measurement | ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds and United States treasuries. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company has no Level 2 assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 assets. Assets and liabilities measured at fair value are based on the valuation techniques identified in the table below. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable securities as of September 30, 2022 and December 31, 2021 consisted of the following: September 30, 2022 Amortized Gross Gross Fair Money market mutual funds $ 50,265 $ — $ — $ 50,265 United States treasuries 4,906 — 4,906 Total marketable securities designated as available-for-sale $ 55,171 $ — $ — $ 55,171 December 31, 2021 Amortized Gross Gross Fair Money market mutual funds $ 13,147 $ — $ — $ 13,147 Total marketable securities designated as available-for-sale $ 13,147 $ — $ — $ 13,147 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of share-based payment award, stock options, valuation assumptions | The weighted average assumptions utilized to determine the fair value of options granted during the nine months ended September 30, 2022 are as follows: Nine Months Ended September 30, 2022 2021 Risk-free interest rate 2.97 % 0.92 % Expected volatility 43.16 % 44.98 % Expected life (in years) 4.24 4.28 Dividend yield 0 % 0 % |
Schedule of share-based compensation, employee stock purchase plan | The following table presents stock-based compensation expense, including under the ESPP, in the Company's consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of product sales $ 333 $ 78 $ 468 $ 194 Cost of service sales 3 3 8 8 Research and development 371 150 702 491 Sales, marketing and support 14 239 225 664 General and administrative 388 572 1,292 1,672 $ 1,109 $ 1,042 $ 2,695 $ 3,029 |
Schedule of accumulated other comprehensive income (loss) | The balances for the three months ended September 30, 2022 and 2021 are as follows: Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, June 30, 2022 $ (4,021) $ (4,021) Other comprehensive loss (646) (646) Net other comprehensive loss (646) (646) Balance, September 30, 2022 $ (4,667) $ (4,667) Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, June 30, 2021 $ (2,968) $ (2,968) Other comprehensive loss (370) (370) Net other comprehensive loss (370) (370) Balance, September 30, 2021 $ (3,338) $ (3,338) The balances for the nine months ended September 30, 2022 and 2021 are as follows: Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, December 31, 2021 $ (3,409) $ (3,409) Other comprehensive loss (1,258) (1,258) Net other comprehensive loss (1,258) (1,258) Balance, September 30, 2022 $ (4,667) $ (4,667) Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, December 31, 2020 $ (3,232) $ (3,232) Other comprehensive loss (106) (106) Net other comprehensive loss (106) (106) Balance, September 30, 2021 $ (3,338) $ (3,338) |
Net (Loss) Income from Contin_2
Net (Loss) Income from Continuing Operations per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted weighted average common shares outstanding | A reconciliation of the basic and diluted weighted average common shares outstanding is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Weighted average common shares outstanding—basic 18,706 18,341 18,574 18,152 Dilutive common shares issuable in connection with stock plans — 225 — — Weighted average common shares outstanding—diluted 18,706 18,566 18,574 18,152 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Components of inventories consist of the following: September 30, December 31, Raw materials $ 14,974 $ 9,412 Work in process 4,473 2,861 Finished goods 4,431 3,560 $ 23,878 $ 15,833 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net, as of September 30, 2022 and December 31, 2021 consist of the following: September 30, December 31, Land $ 2,833 $ 2,833 Building and improvements 18,839 18,822 Leasehold improvements 455 472 Machinery and equipment 5,683 5,233 Revenue-generating assets 70,292 63,587 Office and computer equipment 14,377 14,633 Motor vehicles 31 31 112,510 105,611 Less accumulated depreciation (59,580) (52,666) $ 52,930 $ 52,945 |
Product Warranty (Tables)
Product Warranty (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Product Warranties Disclosures [Abstract] | |
Summary of product warranty activity | The following table summarizes product warranty activity during 2022 and 2021: Nine Months Ended September 30, 2022 2021 Beginning balance $ 1,084 $ 1,725 Charges to expense 964 280 Costs incurred (764) (786) Ending balance $ 1,284 $ 1,219 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on recurring basis | The following tables present financial assets and liabilities at September 30, 2022 and December 31, 2021 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy: September 30, 2022 Total Level 1 Level 2 Level 3 Valuation Assets Money market mutual funds $ 50,265 $ 50,265 $ — $ — (a) United States treasuries 4,906 4,906 — — (a) December 31, 2021 Total Level 1 Level 2 Level 3 Valuation Assets Money market mutual funds $ 13,147 $ 13,147 $ — $ — (a) (a) Market approach—prices and other relevant information generated by market transactions involving identical or comparable assets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2022: Amounts Balance at December 31, 2021 $ 6,570 Sale of KVH Media Group Entertainment Limited (1,038) Foreign currency translation adjustment (295) Balance at September 30, 2022 $ 5,237 |
Schedule of finite-lived intangible assets | The changes in the carrying amount of intangible assets during the nine months ended September 30, 2022 are as follows: Amounts Balance at December 31, 2021 $ 1,287 Amortization expense (409) Intangible assets acquired in asset acquisition 42 Sale of KVH Media Group Entertainment Limited (352) Foreign currency translation adjustment (101) Balance at September 30, 2022 $ 467 Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at September 30, 2022 and December 31, 2021, respectively: Gross Carrying Amount Accumulated Amortization Net Carrying Value September 30, 2022 Subscriber relationships $ 7,624 $ 7,157 $ 467 Distribution rights 315 315 — Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 10,822 $ 10,355 $ 467 December 31, 2021 Subscriber relationships $ 8,033 $ 6,746 $ 1,287 Distribution rights 315 315 — Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 11,231 $ 9,944 $ 1,287 |
Schedule of expected amortization expense | Estimated future amortization expense remaining at September 30, 2022 for intangible assets acquired was as follows: Years ending December 31, Remainder of 2022 $ 87 2023 168 2024 68 2025 68 2026 68 Thereafter 8 Total future amortization expense $ 467 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (ASC 606) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales from Contracts with Customers | The following table summarizes net sales from contracts with customers for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Product, transferred at point in time $ 5,974 $ 6,361 $ 18,057 $ 19,741 Product, transferred over time 651 490 1,751 2,047 Service 28,544 27,537 83,065 76,862 Total net sales $ 35,169 $ 34,388 $ 102,873 $ 98,650 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Future minimum lease payments under operating leases | Maturities of lease liabilities as of September 30, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows: Remainder of 2022 $ 436 2023 744 2024 308 2025 8 Total minimum lease payments $ 1,496 Less amount representing interest $ (61) Present value of net minimum operating lease payments $ 1,435 Less current installments of obligation under current-operating lease liabilities $ 963 Obligations under long-term operating lease liabilities, excluding current installments $ 472 Weighted-average remaining lease term - operating leases (years) 1.44 Weighted-average discount rate - operating leases 5.50 % |
Future minimum lease payments under finance leases | The future minimum lease payments under this financing lease as of September 30, 2022 are: Remainder of 2022 $ 66 2023 22 Total minimum lease payments $ 88 Less amount representing interest $ — Present value of net minimum financing lease payments $ 88 Less current installments of obligation under accrued other $ 88 Obligations under other long-term liabilities, excluding current installments $ — Weighted-average remaining lease term - finance leases (years) 0.42 Weighted-average discount rate - finance leases 1.53 % |
Sales-type lease, future undiscounted cash flows | The future undiscounted cash flows from these leases as of September 30, 2022 are: Remainder of 2022 $ 1,640 2023 3,651 2024 2,729 2025 1,360 2026 542 2027 87 Total undiscounted cash flows $ 10,009 Present value of lease payments $ 8,970 Difference between undiscounted cash flows and discounted cash flows $ 1,039 |
Future minimum lease payments to be received under operating leases | As of September 30, 2022, minimum future lease payments to be recognized on the operating leases are as follows: Remainder of 2022 $ 274 2023 548 2024 338 2025 20 Total $ 1,180 |
Discontinued Operations - (Tabl
Discontinued Operations - (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued operations to the amounts presented separately in the Company's consolidated balance sheet: December 31, 2021 Accounts receivable, net $ 5,882 Inventories, net 8,807 Prepaid expenses and other current assets 1,152 Current assets held for sale $ 15,841 Property and equipment, net 7,169 Non-current assets held for sale $ 7,169 Accounts payable 1,764 Accrued compensation and employee-related expenses 914 Accrued other 955 Accrued product warranty costs 95 Contract liabilities 211 Current liabilities held for sale $ 3,939 Other long-term liabilities 8 Non-current liabilities held for sale $ 8 Net assets held for sale 19,063 The following table presents a reconciliation of the major financial line items constituting the results for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Company's consolidated statements of operations (through August 9, 2022, the date the inertial navigation business was sold): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Sales: Product $ 1,276 $ 8,388 $ 16,042 $ 29,152 Service 218 208 679 837 Net sales 1,494 8,596 16,721 29,989 Costs and expenses: Costs of product sales 1,504 5,341 12,732 17,168 Costs of service sales 169 173 457 750 Research and development 374 1,507 3,147 5,137 Sales, marketing and support 348 1,261 3,035 3,885 Other income, net 12 34 81 101 (Loss) income from discontinued operations before income tax expense (889) 348 (2,569) 3,150 Gain on sale of discontinued operations before tax expense 30,858 — 30,858 — Total income from discontinued operations before tax expense $ 29,969 $ 348 $ 28,289 $ 3,150 Income tax expense on discontinued operations 228 — 228 — Net income from discontinued operations, net of tax $ 29,741 $ 348 $ 28,061 $ 3,150 Net income from discontinued operations per common share Basic $ 1.59 $ 0.02 $ 1.51 $ 0.17 Diluted $ 1.59 $ 0.02 $ 1.51 $ 0.17 Weighted average number of common shares outstanding: Basic 18,706 18,341 18,574 18,152 Diluted 18,706 18,566 18,574 18,152 The following table presents supplemental cash flow information of the discontinued operations: Nine Months Ended September 30, 2022 2021 Cash (used in) provided by operating activities-discontinued operations $ (3,853) $ 3,364 Cash used in investing activities-discontinued operations $ (307) $ (846) The following table presents non-cash expenses from discontinued operations: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Depreciation $ 269 $ 353 $ 805 $ 1,021 Compensation expense related to stock-based awards and employee stock purchase plan $ 380 $ 207 $ 580 $ 407 |
Description of Business (Detail
Description of Business (Details) $ in Thousands | 9 Months Ended | ||
Aug. 09, 2022 USD ($) extensionOption | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Leased assets, useful life | 5 years | ||
Intertial Navigation | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from the sale of KVH Media Group Entertainment Limited, net of cash sold | $ 55,000 | $ 0 | |
Intertial Navigation | Intertial Navigation | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from the sale of KVH Media Group Entertainment Limited, net of cash sold | $ 55 | ||
Deliverable at sale | $ 1 | ||
Transition support service period | 6 months | ||
Transition support service, number of extensions | extensionOption | 2 | ||
Transition support service, extension period | 3 months | ||
Monthly transaction fees | $ 100 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Oct. 11, 2022 USD ($) | Apr. 29, 2022 USD ($) | Mar. 07, 2022 hour | Apr. 30, 2022 USD ($) | Mar. 31, 2022 | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Accounting Policies [Line Items] | |||||||||
Management transition expense | $ 539 | ||||||||
Management transition expense accrual | $ 269 | $ 269 | |||||||
Separation payment | $ 201 | ||||||||
Percentage of workforce reduction | 10% | ||||||||
Restructuring charges | $ 2,228 | ||||||||
Gain on sale of properties | $ 630 | ||||||||
Executive retention bonus, percent of executive's base salary | 75% | ||||||||
Accrued employee benefits | 649 | $ 649 | |||||||
KVH Media Group | |||||||||
Accounting Policies [Line Items] | |||||||||
Proceeds from the sale of KVH Media Group Entertainment Limited, net of cash sold | $ 2,378 | ||||||||
Cost of Sales | Product | |||||||||
Accounting Policies [Line Items] | |||||||||
Restructuring charges | 17 | ||||||||
Cost of Sales | Service | |||||||||
Accounting Policies [Line Items] | |||||||||
Restructuring charges | 55 | ||||||||
Research and development | |||||||||
Accounting Policies [Line Items] | |||||||||
Restructuring charges | 392 | ||||||||
Sales, marketing and support | |||||||||
Accounting Policies [Line Items] | |||||||||
Restructuring charges | 977 | ||||||||
General and administrative | |||||||||
Accounting Policies [Line Items] | |||||||||
Restructuring charges | 787 | ||||||||
Employee Severance | |||||||||
Accounting Policies [Line Items] | |||||||||
Restructuring charges | 83 | 1,901 | |||||||
Restructuring and related cost, expected cost remaining | 83 | 83 | |||||||
Employee Severance | Foreign Operation Restructuring | |||||||||
Accounting Policies [Line Items] | |||||||||
Restructuring charges | 370 | 370 | |||||||
Restructuring and related cost, expected cost remaining | $ 100 | 100 | |||||||
Employee Severance And Legal And Advisory Fees | |||||||||
Accounting Policies [Line Items] | |||||||||
Restructuring charges | $ 327 | ||||||||
President And Chief Executive Officer | |||||||||
Accounting Policies [Line Items] | |||||||||
Years of service | 40 years | ||||||||
Management transition hours | hour | 50 | ||||||||
Chief Operating Officer | Subsequent Event | |||||||||
Accounting Policies [Line Items] | |||||||||
Annual base salary | $ 448 | ||||||||
Percent of base salary, second half of year | 80% | ||||||||
Retention bonus, percent of base salary | 75% | ||||||||
Retention bonus, percent of highest base salary | 75% | ||||||||
Chief Operating Officer | Subsequent Event | Restricted Stock And Non-Statutory Stock Options | |||||||||
Accounting Policies [Line Items] | |||||||||
Aggregate grant date fair value | $ 100 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 55,171 | $ 13,147 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 55,171 | 13,147 |
Money market mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50,265 | 13,147 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 50,265 | $ 13,147 |
United States treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,906 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 0 | |
Fair Value | $ 4,906 |
Marketable Securities - Narrati
Marketable Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Marketable Securities [Abstract] | ||||
Interest income, money market deposits | $ 193 | $ 1 | $ 203 | $ 5 |
Stockholder's Equity - Narrativ
Stockholder's Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 07, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment | $ 1,109 | $ 1,042 | $ 2,695 | $ 3,029 | ||
Proceeds from stock options exercised and employee stock purchase plan | $ 796 | 2,846 | ||||
Stock options exercised (in shares) | 301,000 | |||||
Stock options cancelled (in shares) | 193,000 | |||||
Weighted average grant date fair value (in USD per share) | $ 9.14 | $ 8.50 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in shares authorized (in shares) | 1,280 | |||||
Shares authorized (in shares) | 6,080 | 4,800 | ||||
Share-based payment | $ 1,103 | 1,031 | $ 2,663 | $ 2,988 | ||
Unrecognized compensation expense | $ 2,887 | $ 2,887 | ||||
Weighted-average period of recognition | 2 years 7 months 9 days | |||||
Shares issued (in shares) | 53,000 | 94,000 | ||||
Proceeds from stock options exercised and employee stock purchase plan | $ 464 | $ 613 | ||||
Restricted stock surrendered (in shares) | 0 | 14,000 | ||||
Stock options granted (in shares) | 0 | 398,000 | 496,000 | |||
Stock options expired (in shares) | 87,000 | 416,000 | ||||
Stock options outstanding (in shares) | 1,808,000 | 1,808,000 | ||||
Stock options outstanding, weighted average exercise price (in USD per share) | $ 9.82 | $ 9.82 | ||||
Stock options exercisable (in shares) | 844,000 | 844,000 | ||||
Exercisable stock options, weighted average exercise price (in USD per share) | $ 10.13 | $ 10.13 | ||||
Stock Options | President And Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of compensation acceleration (reduction) | $ (85) | |||||
Stock Options | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of compensation acceleration (reduction) | $ (28) | (109) | ||||
Stock Options | Executive Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of compensation acceleration (reduction) | 72 | 120 | ||||
Stock Options | Transitioned Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of compensation acceleration (reduction) | 81 | 81 | ||||
Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment | $ 6 | $ 11 | ||||
Employee Stock | ESPP Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment | $ 32 | $ 41 | ||||
Percentage of Company's common stock share price | 85% | 85% | ||||
Stock options issued ESPP (in shares) | 0 | 26,000 | 22,000 | 26,000 | ||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 3,129 | $ 3,129 | ||||
Weighted-average period of recognition | 2 years 5 months 8 days | |||||
Restricted stock surrendered (in shares) | 0 | 0 | ||||
Restricted stock (in shares) | 60,000 | 243,000 | ||||
Restricted stock award, forfeitures, less than (in shares) | 10,000 | 96,000 | ||||
Restricted stock vested (in shares) | 102,000 | 249,000 | ||||
Restricted stock outstanding (in shares) | 388,000 | 388,000 | ||||
Unvested outstanding options (in shares) | 0 | 0 | ||||
Restricted Stock | President And Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of compensation acceleration (reduction) | $ 186 | |||||
Restricted Stock | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of compensation acceleration (reduction) | $ 31 | 156 | ||||
Restricted Stock | Executive Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of compensation acceleration (reduction) | 99 | 167 | ||||
Restricted Stock | Transitioned Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of compensation acceleration (reduction) | $ 374 | $ 374 | ||||
Performance-Based or Market-Based Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unvested outstanding options (in shares) | 0 | 0 |
Stockholder's Equity - Valuatio
Stockholder's Equity - Valuation Assumptions (Details) - Stock Options | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.97% | 0.92% |
Expected volatility | 43.16% | 44.98% |
Expected life (in years) | 4 years 2 months 26 days | 4 years 3 months 10 days |
Dividend yield | 0% | 0% |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | $ 1,109 | $ 1,042 | $ 2,695 | $ 3,029 |
Cost of sales | Product | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | 333 | 78 | 468 | 194 |
Cost of sales | Service | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | 3 | 3 | 8 | 8 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | 371 | 150 | 702 | 491 |
Sales, marketing and support | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | 14 | 239 | 225 | 664 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | $ 388 | $ 572 | $ 1,292 | $ 1,672 |
Stockholder's Equity - Schedu_2
Stockholder's Equity - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
AOCI Attributable to Parent [Roll Forward] | |||||
Beginning balance | $ 124,028 | $ 126,876 | $ 128,977 | $ 131,884 | |
Net other comprehensive income (loss) | [1] | (646) | (370) | (1,258) | (106) |
Ending balance | 154,588 | 131,970 | 154,588 | 131,970 | |
Foreign Currency Translation | |||||
AOCI Attributable to Parent [Roll Forward] | |||||
Beginning balance | (4,021) | (2,968) | (3,409) | (3,232) | |
Other comprehensive income (loss) | (646) | (370) | (1,258) | (106) | |
Net other comprehensive income (loss) | (646) | (370) | (1,258) | (106) | |
Ending balance | (4,667) | (3,338) | (4,667) | (3,338) | |
Total Accumulated Other Comprehensive Loss | |||||
AOCI Attributable to Parent [Roll Forward] | |||||
Beginning balance | (4,021) | (2,968) | (3,409) | (3,232) | |
Other comprehensive income (loss) | (646) | (370) | (1,258) | (106) | |
Net other comprehensive income (loss) | (646) | (370) | (1,258) | (106) | |
Ending balance | $ (4,667) | $ (3,338) | $ (4,667) | $ (3,338) | |
[1]Tax impact was nominal for all periods. |
Net (Loss) Income from Contin_3
Net (Loss) Income from Continuing Operations per Common Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,572 | 1,763 | 756 |
Net (Loss) Income from Contin_4
Net (Loss) Income from Continuing Operations per Common Share - Reconciliation of Basic and Diluted Weighted Average Common Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of reconciliation of basic and diluted weighted average common shares outstanding | ||||
Weighted average common shares outstanding - basic (in shares) | 18,706,000 | 18,341,000 | 18,574,000 | 18,152,000 |
Dilutive common shares issuable in connection with stock plans (in shares) | 0 | 225,000 | 0 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 18,706,000 | 18,566,000 | 18,574,000 | 18,152,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Components of inventories | ||
Raw materials | $ 14,974 | $ 9,412 |
Work in process | 4,473 | 2,861 |
Finished goods | 4,431 | 3,560 |
Inventories, net | $ 23,878 | $ 15,833 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 112,510 | $ 105,611 |
Less accumulated depreciation | (59,580) | (52,666) |
Property and equipment, less accumulated depreciation | 52,930 | 52,945 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,833 | 2,833 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,839 | 18,822 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 455 | 472 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,683 | 5,233 |
Revenue-generating assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 70,292 | 63,587 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,377 | 14,633 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31 | $ 31 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 3,239 | $ 3,179 | $ 9,542 | $ 8,918 |
Product Warranty - Narrative (D
Product Warranty - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Product Warranty (Textual) [Abstract] | ||
Accrued product warranty costs | $ 1,284 | $ 1,084 |
Minimum | ||
Product Warranty (Textual) [Abstract] | ||
Limited warranty period on product | 1 year | |
Maximum | ||
Product Warranty (Textual) [Abstract] | ||
Limited warranty period on product | 2 years |
Product Warranty - Schedule of
Product Warranty - Schedule of Product Warranty Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Summary of product warranty activity | ||
Beginning balance | $ 1,084 | $ 1,725 |
Charges to expense | 964 | 280 |
Costs incurred | (764) | (786) |
Ending balance | $ 1,284 | $ 1,219 |
Debt (Details)
Debt (Details) $ in Thousands | May 31, 2020 USD ($) |
PPP Loan | |
Debt Instrument [Line Items] | |
Long-term debt | $ 6,927 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) - reportableSegment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 1 | |||
Revenue Benchmark | Product Concentration Risk | Mobile Comm Product Sales | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk | 19% | 20% | 19% | 22% |
Revenue Benchmark | Product Concentration Risk | VSAT Airtime Service Sales | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk | 76% | 72% | 74% | 70% |
Non-US | Revenue Benchmark | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk | 62% | 58% | 61% | 58% |
Singapore | Revenue Benchmark | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk | 17% | 14% | 16% | 13% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 50,265 | $ 13,147 |
United States treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 4,906 | |
Fair Value, Inputs, Level 1 | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 50,265 | 13,147 |
Fair Value, Inputs, Level 1 | United States treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 4,906 | |
Fair Value, Inputs, Level 2 | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Inputs, Level 2 | United States treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Fair Value, Inputs, Level 3 | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | $ 0 |
Fair Value, Inputs, Level 3 | United States treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Fair Value Disclosures [Abstract] | |
Goodwill and other intangible asset impairment | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Changes in Carrying Amount (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 6,570 |
Sale of KVH Media Group Entertainment Limited | (1,038) |
Foreign currency translation adjustment | (295) |
Ending balance | $ 5,237 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets Changes in Carrying Amount (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 1,287 | |
Amortization expense | (409) | |
Intangible assets acquired in asset acquisition | 42 | $ 47 |
Sale of KVH Media Group Entertainment Limited | (352) | |
Foreign currency translation adjustment | (101) | |
Ending balance | $ 467 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2017 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jan. 01, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 42 | $ 47 | ||||
Amortization expense | $ 90 | $ 277 | $ 409 | $ 833 | ||
Weighted average remaining useful lives | 3 years 2 months 12 days | |||||
Headland Media Limited | Subscriber relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, useful lives | 10 years | |||||
Q1 2017 Acquisition | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 450 | |||||
Contingent consideration, value, high | $ 114 | |||||
Q1 2017 Acquisition | Subscriber relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, useful lives | 10 years | |||||
Finite-lived intangible assets acquired | $ 100 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Goodwill and Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,822 | $ 11,231 |
Accumulated Amortization | 10,355 | 9,944 |
Net Carrying Value | 467 | 1,287 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,624 | 8,033 |
Accumulated Amortization | 7,157 | 6,746 |
Net Carrying Value | 467 | 1,287 |
Distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 315 | 315 |
Accumulated Amortization | 315 | 315 |
Net Carrying Value | 0 | 0 |
Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 446 | 446 |
Accumulated Amortization | 446 | 446 |
Net Carrying Value | 0 | 0 |
Proprietary content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 153 | 153 |
Accumulated Amortization | 153 | 153 |
Net Carrying Value | 0 | 0 |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,284 | 2,284 |
Accumulated Amortization | 2,284 | 2,284 |
Net Carrying Value | $ 0 | $ 0 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Future Amortization Expense Remaining (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2022 | $ 87 |
2023 | 168 |
2024 | 68 |
2025 | 68 |
2026 | 68 |
Thereafter | 8 |
Total future amortization expense | $ 467 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (ASC 606) - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 35,169 | $ 34,388 | $ 102,873 | $ 98,650 |
Mobile connectivity product sales | Mobile Connectivity | Transferred at point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5,974 | 6,361 | 18,057 | 19,741 |
Mobile connectivity product sales | Mobile Connectivity | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 651 | 490 | 1,751 | 2,047 |
Service | Mobile Connectivity | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 28,544 | $ 27,537 | $ 83,065 | $ 76,862 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (ASC 606) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue recognized | $ 572 | $ 430 | $ 1,645 | $ 1,899 | |
Accounts Receivable | Customer Concentration Risk | Customer One | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 17% | 16% | |||
Accounts Receivable | Customer Concentration Risk | Customer Two | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 14% | ||||
Accounts Receivable, Sales-Type Leases | Customer Concentration Risk | Customer One | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 63% | ||||
Accounts Receivable, Sales-Type Leases | Customer Concentration Risk | Customer Two | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 54% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | (578.60%) | 0.40% | (16.50%) | 0.70% | |
Liability for uncertain tax positions | $ 624 | $ 624 | $ 592 | ||
Decrease in unrecognized tax benefits is reasonably possible | $ 20 | $ 20 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2021 hub | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2018 hub | |
Lessee, Lease, Description [Line Items] | |||||||
Operating lease expense | $ 507 | $ 920 | $ 1,588 | $ 2,824 | |||
Short-term lease costs | 41 | 66 | 139 | 181 | |||
Finance lease term | 5 years | ||||||
Number of satellite hubs leased | hub | 3 | ||||||
Number of satellite hubs disposed | hub | 2 | ||||||
Finance lease, gross cost | 112,510 | 112,510 | $ 105,611 | ||||
Finance lease, accumulated depreciation | 59,580 | $ 59,580 | $ 52,666 | ||||
Leased assets, useful life | 5 years | ||||||
Capital asset depreciation expense | 45 | 45 | $ 136 | 136 | |||
Net investment in lease, current | 3,911 | 3,911 | |||||
Net investment in lease, noncurrent | 5,059 | 5,059 | |||||
Sales-type lease, interest income | 191 | $ 218 | 591 | $ 670 | |||
Lessor, operating lease, term of contract | 3 years | ||||||
Lessor, operating lease, gross costs | 1,856 | 1,856 | |||||
Lessor, operating lease, accumulated depreciation | 423 | $ 423 | |||||
Lessor, operating lease, useful life | 5 years | ||||||
Depreciation expense | 96 | $ 267 | |||||
Lease revenue | $ 141 | $ 400 | |||||
Minimum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Sales-type leases, term of contracts | 3 years | 3 years | |||||
Maximum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Sales-type leases, term of contracts | 5 years | 5 years | |||||
Assets Held Under Finance Leases | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Finance lease, gross cost | $ 1,268 | $ 1,268 | |||||
Finance lease, accumulated depreciation | $ 846 | $ 846 | |||||
Leased assets, useful life | 7 years |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Remainder of 2022 | $ 436 | |
2023 | 744 | |
2024 | 308 | |
2025 | 8 | |
Total minimum lease payments | 1,496 | |
Less amount representing interest | (61) | |
Present value of net minimum operating lease payments | 1,435 | |
Less current installments of obligation under current-operating lease liabilities | 963 | $ 1,912 |
Obligations under long-term operating lease liabilities, excluding current installments | $ 472 | $ 1,224 |
Weighted-average remaining lease term - operating leases (years) | 1 year 5 months 8 days | |
Weighted-average discount rate - operating leases | 5.50% |
Leases - Future Minimum Finance
Leases - Future Minimum Finance Lease Payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 66 |
2023 | 22 |
Total minimum lease payments | 88 |
Less amount representing interest | 0 |
Present value of net minimum financing lease payments | 88 |
Less current installments of obligation under accrued other | 88 |
Obligations under other long-term liabilities, excluding current installments | $ 0 |
Weighted-average remaining lease term - finance leases (years) | 5 months 1 day |
Weighted-average discount rate - finance leases | 1.53% |
Leases - Sales-type Lease Futur
Leases - Sales-type Lease Future Undiscounted Cash Flows (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 1,640 |
2023 | 3,651 |
2024 | 2,729 |
2025 | 1,360 |
2026 | 542 |
2027 | 87 |
Total undiscounted cash flows | 10,009 |
Present value of lease payments | 8,970 |
Difference between undiscounted cash flows and discounted cash flows | $ 1,039 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Receivable (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 274 |
2023 | 548 |
2024 | 338 |
2025 | 20 |
Total | $ 1,180 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Carrying Amounts of Major Classes of Assets and Liabilities from Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale $ in Thousands | Dec. 31, 2021 USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Accounts receivable, net | $ 5,882 |
Inventories, net | 8,807 |
Prepaid expenses and other current assets | 1,152 |
Current assets held for sale | 15,841 |
Property and equipment, net | 7,169 |
Non-current assets held for sale | 7,169 |
Accounts payable | 1,764 |
Accrued compensation and employee-related expenses | 914 |
Accrued other | 955 |
Accrued product warranty costs | 95 |
Contract liabilities | 211 |
Current liabilities held for sale | 3,939 |
Other long-term liabilities | 8 |
Non-current liabilities held for sale | 8 |
Net assets held for sale | $ 19,063 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Net Income From Discontinued Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Costs and expenses: | ||||
Net income from discontinued operations, net of tax | $ 29,741 | $ 348 | $ 28,061 | $ 3,150 |
Net income from discontinued operations per common share | ||||
Basic (in shares) | $ 1.59 | $ 0.02 | $ 1.51 | $ 0.17 |
Diluted (in shares) | $ 1.59 | $ 0.02 | $ 1.51 | $ 0.17 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 18,706,000 | 18,341,000 | 18,574,000 | 18,152,000 |
Diluted (in shares) | 18,706,000 | 18,566,000 | 18,574,000 | 18,152,000 |
Discontinued Operations, Disposed of by Sale | ||||
Sales: | ||||
Sales | $ 1,494 | $ 8,596 | $ 16,721 | $ 29,989 |
Costs and expenses: | ||||
Research and development | 374 | 1,507 | 3,147 | 5,137 |
Sales, marketing and support | 348 | 1,261 | 3,035 | 3,885 |
Other income, net | 12 | 34 | 81 | 101 |
(Loss) income from discontinued operations before income tax expense | (889) | 348 | (2,569) | 3,150 |
Gain on sale of discontinued operations before tax expense | 30,858 | 0 | 30,858 | 0 |
Total income from discontinued operations before tax expense | 29,969 | 348 | 28,289 | 3,150 |
Income tax expense on discontinued operations | 228 | 0 | 228 | 0 |
Net income from discontinued operations, net of tax | $ 29,741 | $ 348 | $ 28,061 | $ 3,150 |
Net income from discontinued operations per common share | ||||
Basic (in shares) | $ 1.59 | $ 0.02 | $ 1.51 | $ 0.17 |
Diluted (in shares) | $ 1.59 | $ 0.02 | $ 1.51 | $ 0.17 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 18,706,000 | 18,341,000 | 18,574,000 | 18,152,000 |
Diluted (in shares) | 18,706,000 | 18,566,000 | 18,574,000 | 18,152,000 |
Discontinued Operations, Disposed of by Sale | Product | ||||
Sales: | ||||
Sales | $ 1,276 | $ 8,388 | $ 16,042 | $ 29,152 |
Costs and expenses: | ||||
Cost of sales | 1,504 | 5,341 | 12,732 | 17,168 |
Discontinued Operations, Disposed of by Sale | Service | ||||
Sales: | ||||
Sales | 218 | 208 | 679 | 837 |
Costs and expenses: | ||||
Cost of sales | $ 169 | $ 173 | $ 457 | $ 750 |
Discontinued Operations - Sch_3
Discontinued Operations - Schedule of Cash Flows from Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash (used in) provided by operating activities-discontinued operations | $ (3,853) | $ 3,364 |
Cash used in investing activities-discontinued operations | $ (307) | $ (846) |
Discontinued Operations - Sch_4
Discontinued Operations - Schedule of Non-Cash Expenses from Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation | $ 269 | $ 353 | $ 805 | $ 1,021 |
Compensation expense related to stock-based awards and employee stock purchase plan | $ 380 | $ 207 | $ 580 | $ 407 |