RigNet (RNET) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	RNET
Entity Registrant Name	RigNet, Inc.
Entity Central Index Key	0001162112
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Security Exchange Name	NASDAQ
Title of 12(b) Security	Common Stock, $0.001 par value per share
Entity Common Stock, Shares Outstanding		20,455,615
Entity File Number	001-35003
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0677208
Entity Address, Address Line One	15115 Park Row Blvd
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77084-4947
City Area Code	281
Local Phone Number	674-0100
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 13,614	$ 12,941
Restricted cash	40	42
Accounts receivable, net	63,529	67,059
Costs and estimated earnings in excess of billings on uncompleted contracts (CIEB)	15,848	13,275
Prepaid expenses and other current assets	6,046	6,500
Total current assets	99,077	99,817
Property, plant and equipment, net	57,297	60,118
Restricted cash	1,523	1,522
Goodwill	20,464	46,792
Intangibles, net	26,871	30,145
Right-of-use lease asset	6,660	6,829
Deferred tax and other assets	5,702	5,757
TOTAL ASSETS	217,594	250,980
Current liabilities:
Accounts payable	23,252	28,517
Accrued expenses	17,635	16,660
Current maturities of long-term debt	8,747	10,793
Income taxes payable	2,420	2,649
GX dispute accrual	750	750
Deferred revenue and other current liabilities	11,966	11,173
Total current liabilities	64,770	70,542
Long-term debt	105,087	96,934
Deferred revenue	853	855
Deferred tax liability	2,034	2,672
Right-of-use lease liability - long-term portion	6,166	6,329
Other liabilities	22,614	26,771
Total liabilities	201,524	204,103
Commitments and contingencies (Note 11)
Stockholders' equity
Preferred stock - $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding at March 31, 2020 and December 31, 2019
Common stock - $0.001 par value; 190,000,000 shares authorized; 20,454,705 and 19,979,284 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	20	20
Treasury stock - 432,432 and 203,756 shares at March 31, 2020 and December 31, 2019, respectively, at cost	(3,271)	(2,693)
Additional paid-in capital	188,425	184,571
Accumulated deficit	(142,514)	(115,673)
Accumulated other comprehensive loss	(26,659)	(19,502)
Total stockholders' equity	16,001	46,723
Non-redeemable, non-controlling interest	69	154
Total equity	16,070	46,877
TOTAL LIABILITIES AND EQUITY	$ 217,594	$ 250,980

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	190,000,000	190,000,000
Common stock, shares issued	20,454,705	19,979,284
Common stock, shares outstanding	20,454,705	19,979,284
Treasury stock, shares	432,432	203,756

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenue	$ 58,761	$ 57,510
Expenses:
Cost of revenue (excluding depreciation and amortization)	37,950	36,456
Depreciation and amortization	6,931	8,912
Impairment of goodwill	23,141
Selling and marketing	2,812	3,793
General and administrative	13,829	16,470
Total expenses	84,663	65,631
Operating loss	(25,902)	(8,121)
Other income (expense):
Interest expense	(1,528)	(1,238)
Other income (expense), net	(321)	72
Loss before income taxes	(27,751)	(9,287)
Income tax benefit (expense)	980	(2,666)
Net loss	(26,771)	(11,953)
Less: Net loss attributable to non-redeemable, non-controlling interest	70	30
Net loss attributable to RigNet, Inc. stockholders	(26,841)	(11,983)
COMPREHENSIVE LOSS
Net loss	(26,771)	(11,953)
Foreign currency translation	(7,157)	158
Comprehensive loss	(33,928)	(11,795)
Less: Comprehensive income attributable to non-controlling interest	70	30
Comprehensive loss attributable to RigNet, Inc. stockholders	(33,998)	(11,825)
LOSS PER SHARE - BASIC AND DILUTED
Net loss attributable to RigNet, Inc. common stockholders	$ (26,841)	$ (11,983)
Net loss per share attributable to RigNet, Inc. common stockholders, basic	$ (1.34)	$ (0.63)
Net loss per share attributable to RigNet, Inc. common stockholders, diluted	$ (1.34)	$ (0.63)
Weighted average shares outstanding, basic	20,081	18,949
Weighted average shares outstanding, diluted	20,081	18,949

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (26,771)	$ (11,953)
Adjustments to reconcile net loss to net cash provided by operations:
Depreciation and amortization	6,931	8,912
Impairment of goodwill	23,141
Stock-based compensation	3,854	4,458
Amortization of deferred financing costs	93	61
Deferred taxes	(626)	2,469
Accretion of discount of contingent consideration payable for acquisitions	134	94
(Gain) loss on sales of property, plant and equipment, net of retirements	30	(7)
Changes in operating assets and liabilities, net of effect of acquisition:
Accounts receivable, net	2,490	(6,777)
Costs and estimated earnings in excess of billings on uncompleted contracts (CIEB)	(3,000)	1,439
Prepaid expenses and other assets	213	85
Right-of-use lease asset	169
Accounts payable	(2,689)	4,058
Accrued expenses	1,147	(38)
Deferred revenue	861	3,074
Right-of-use lease liability	(231)
Other liabilities	(2,195)	(1,227)
Net cash provided by operating activities	3,551	4,648
Cash flows from investing activities:
Capital expenditures	(5,337)	(4,814)
Proceeds from sales of property, plant and equipment		66
Net cash used in investing activities	(5,337)	(4,748)
Cash flows from financing activities:
Issuance of common stock upon the exercise of stock options and the vesting of restricted stock		1
Stock withheld to cover employee taxes on stock-based compensation	(578)	(1,407)
Subsidiary distributions to non-controlling interest	(155)	(135)
Proceeds from borrowings	3,750
Repayments of long-term debt	(41)	(1,295)
Payment of financing fees	(485)	(250)
Net cash provided by (used in) financing activities	2,491	(3,086)
Net change in cash and cash equivalents	705	(3,186)
Cash and cash equivalents including restricted cash:
Cash and cash equivalents including restricted cash	14,505	23,296
Changes in foreign currency translation	(33)	91
Cash and cash equivalents including restricted cash	15,177	20,201
Supplemental disclosures:
Income taxes paid	1,081	737
Interest paid	1,245	1,019
Non-cash investing - capital expenditures accrued	868	4,398
Right-of-use operating lease entered into	121
Cash and cash equivalents	13,614	18,660
Restricted cash - current portion	40	42
Restricted cash - long-term portion	1,523	1,499
Cash and cash equivalents including restricted cash	$ 15,177	$ 20,201

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total Stockholders' Equity [Member]	Non-Redeemable, Non-Controlling Interest [Member]
Beginning Balance at Dec. 31, 2018	$ 55,984	$ 19	$ (1,270)	$ 172,946	$ (96,517)	$ (19,254)	$ 55,924	$ 60
Beginning Balance, shares at Dec. 31, 2018		19,465,000	92,000
Issuance of common stock upon the vesting of Restricted Stock Units, net of share cancellations	1	$ 1					1
Issuance of common stock upon the vesting of Restricted Stock Units, net of share cancellations, shares		246,000
Stock withheld to cover employee taxes on stock-based compensation	(1,407)		$ (1,407)				(1,407)
Stock withheld to cover employee taxes on stock-based compensation, shares			106,000
Stock-based compensation	4,458			4,458			4,458
Foreign currency translation	158					158	158
Non-controlling owner distributions	(135)							(135)
Net income (loss)	(11,953)				(11,983)		(11,983)	30
Ending Balance at Mar. 31, 2019	47,106	$ 20	$ (2,677)	177,404	(108,500)	(19,096)	47,151	(45)
Ending Balance, shares at Mar. 31, 2019		19,711,000	198,000
Beginning Balance at Dec. 31, 2019	$ 46,877	$ 20	$ (2,693)	184,571	(115,673)	(19,502)	46,723	154
Beginning Balance, shares at Dec. 31, 2019	19,979,284	19,979,000	204,000
Issuance of common stock upon the vesting of Restricted Stock Units, net of share cancellations, shares		475,000
Stock withheld to cover employee taxes on stock-based compensation	$ (578)		$ (578)				(578)
Stock withheld to cover employee taxes on stock-based compensation, shares			228,000
Stock-based compensation	3,854			3,854			3,854
Foreign currency translation	(7,157)					(7,157)	(7,157)
Non-controlling owner distributions	(155)							(155)
Net income (loss)	(26,771)				(26,841)		(26,841)	70
Ending Balance at Mar. 31, 2020	$ 16,070	$ 20	$ (3,271)	$ 188,425	$ (142,514)	$ (26,659)	$ 16,001	$ 69
Ending Balance, shares at Mar. 31, 2020	20,454,705	20,454,000	432,000

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	The interim unaudited condensed consolidated financial statements of RigNet, Inc. (the Company or RigNet) include all adjustments which, in the opinion of management, are necessary for a fair presentation of the Company’s financial position and results of operations. All such adjustments are of a normal recurring nature. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and Rule 10-01 of Regulation S-X. The preparation of these financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying footnotes. Estimates and assumptions about future events and their effects cannot be perceived with certainty. Estimates may change as new events occur, as more experience is acquired, as additional information becomes available and as the Company’s operating environment changes. Actual results could differ from estimates. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2020. Significant Accounting Policies In addition to the accounting policies described below, please refer to RigNet’s Annual Report on Form 10-K for the fiscal year 2019 for information regarding the Company’s accounting policies. Revenue Recognition – Revenue from Contracts with Customers Revenue is recognized to depict the transfer of promised goods or services in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue Recognition – Managed Communications Services (MCS) and Applications and Internet-of-Things (Apps & IoT) MCS and Apps & IoT customers are primarily served under fixed-price contracts, either on a monthly, usage or day rate basis or for equipment sales and consulting services. Contracts are generally in the form of Master Service Agreements, or MSAs, with specific services being provided under individual service orders. Offshore contracts generally have a term of up to five years with renewal options. Land-based contracts are generally shorter term or terminable on short notice without a penalty. Service orders are executed under the MSA for individual remote sites or groups of sites, and generally permit early termination on short notice without penalty in the event of force majeure, breach of the MSA or cold stacking of a drilling rig (when a rig is taken out of service and is expected to be idle for a protracted period of time). With certain customers, our contracts require that the contract backlog on stack rigs be transferred to other units, preserving the total contract value. Performance Obligations Satisfied Over Time — The delivery of service represents the single performance obligation under MCS and Apps & IoT contracts. Revenue for contracts is generally recognized over time as service is transferred to the customer and the Company expects to be entitled to the agreed monthly, usage or day rate in exchange for those services. Performance Obligations Satisfied at a Point in Time — The delivery of equipment represents the single performance obligation under equipment sale contracts. Revenue for equipment sales is generally recognized upon delivery of equipment to customers. Revenue Recognition – Systems Integration Revenues related to long-term, fixed-price Systems Integration contracts for customized network solutions are recognized based on the percentage of completion for the contract. At any point, RigNet has numerous contracts in progress, all of which are at various stages of completion. Accounting for revenues and profits on long-term contracts requires estimates of total estimated contract costs and estimates of progress toward completion to determine the extent of revenue and profit recognition. Performance Obligations Satisfied Over Time — The delivery of a Systems Integration solution represents the single performance obligation under Systems Integration contracts. Progress towards completion on fixed-price contracts is measured based on the ratio of costs incurred to total estimated contract costs (the cost-to-cost method). These estimates may be revised as additional information becomes available or as specific project circumstances change. The Company reviews all material contracts on a monthly basis and revises the estimates as appropriate for developments such as providing services, purchasing third-party materials and equipment at costs differing from those previously estimated, and incurring or expecting to incur schedule issues. Changes in estimated final contract revenues and costs can either increase or decrease the final estimated contract profit or loss. Profits are recorded in the period in which a change in estimate is recognized, based on the progress achieved through the period of change. Anticipated losses on contracts are recorded in full in the period in which they become evident. Revenue recognized in excess of amounts billed is classified as a current asset under Costs and estimated earnings in excess of billings on uncompleted contracts (CIEB). Systems Integration contracts are billed in accordance with the terms of the contract which are typically either based on milestones or specified time intervals. As of March 31, 2020, and December 31, 2019, the amount of CIEB related to Systems Integration projects was $15.8 million and $13.3 million, respectively. Under long-term contracts, amounts recorded in CIEB may not be realized or paid within a one-year period. As of March 31, 2020 and December 31, 2019, $1.3 million and $1.0 million, respectively, of amounts billed to customers in excess of revenue recognized to date were classified as a current liability, under deferred revenue and other current liabilities. Variable Consideration – Systems Integration - The Company records revenue on contracts relating to certain probable claims and unapproved change orders by including in revenue an amount less than or equal to the amount of costs incurred to date relating to these probable claims and unapproved change orders, thus recognizing no profit until such time as claims are finalized or change orders are approved. The amount of unapproved change orders and claim revenues is included in the Company’s Condensed Consolidated Balance Sheets as part of CIEB. No material unapproved change orders or claims revenue were included in CIEB as of March 31, 2020, and December 31, 2019 . As new facts become known, an adjustment to the estimated recovery is made and reflected in the current period. Backlog - As of March 31, 2020, we have a backlog for our percentage of completion projects of $22.4 million, which will be recognized over the remaining contract term for each contract. The percentage of completion contract terms are typically one to three years. As of December 31, 2019, we had a backlog for our percentage of completion projects of $26.2 million. Leases Effective with adoption of Accounting Standards Update No. 2016-02 (ASU 2016-02), Leases (the new lease standard) on January 1, 2019, we determine if an arrangement is a lease at inception. Operating leases right-of-use assets and liabilities are included in right-to-use lease asset, deferred revenue and other current liabilities, and right-to-use lease liability – long-term portion on our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment; current maturities of long-term debt; and long-term debt on our condensed consolidated balance sheets. Operating lease right-to-use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13), which measures credit losses on most financial assets and certain other instruments that are not measured at fair value through net income. The update amends the impairment model to utilize a current expected credit loss (CECL) methodology in place of the incurred loss methodology for financial instruments, including trade receivables. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. Companies will apply this standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The new standard is effective for interim and annual reporting periods beginning In August 2018, the FASB issued ASU No. 2018-13 (ASU 2018-13), which eliminates disclosures, modifies existing disclosures and adds new Fair Value disclosure requirements to Topic 820 for the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for annual and interim reporting periods beginning after December 15, 2019. In August 2018, the FASB issued ASU No. 2018-15 (ASU 2018-15), which provides guidance on implementation costs incurred in a cloud computing arrangement that is a service contract. The ASU is effective for annual and interim reporting periods beginning after December 15, 2019. The Company adopted the guidance effective January 1, 2020, and the guidance did not have a material impact on the Company’s condensed consolidated financial statements. In December 2019, the FASB issued Accounting Standards Update No. 2019-12 (ASU 2019-12), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes certain exceptions for investments, intraperiod allocations and interim tax calculations and adds guidance to reduce complexity in accounting for income taxes. We will be required to adopt the amended guidance in annual and interim periods beginning after December 15, 2020, with early adoption permitted. The various amendments in Update 2019-12 are applied on a retrospective basis, modified retrospective basis and prospective basis, depending on the amendment. We are in the process of evaluating the impact this amendment will have on our consolidated financial statements. In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (ASU 2020-04), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease potential burden in accounting or recognizing the effects of the LIBOR or another reference rate reform on financing rate. The amendments are effective as of March 12, 2020 through December 31, 2022. We are currently in the process of evaluating the impact the transition from LIBOR to alternative reference rates, but we do not expect a material impact on our consolidated financial statements.

Business and Credit Concentrati

Business and Credit Concentrations	3 Months Ended
	Mar. 31, 2020
Risks And Uncertainties [Abstract]
Business and Credit Concentrations	Note 2 – Business and Credit Concentrations The Company is exposed to various business and credit risks including interest rate, foreign currency, credit and liquidity risks. Interest Rate Risk The Company has significant interest-bearing liabilities at variable interest rates which generally price monthly. The Company’s variable borrowing rates are tied to LIBOR resulting in interest rate risk (see Note 5 – Long-Term Debt). The Company presently does not use financial instruments to hedge interest rate risk, but evaluates this on a regular basis and may utilize financial instruments in the future if deemed necessary. Foreign Currency Risk The Company has exposure to foreign currency risk, as a portion of the Company’s activities are conducted in currencies other than U.S. dollars. Currently, the Norwegian Kroner, the British Pound Sterling and the Brazilian Real are the currencies that could materially impact the Company’s financial position and results of operations. The Company presently does not hedge these risks, but evaluates financial risk on a regular basis and may utilize financial instruments in the future if deemed necessary. Foreign currency translations are reported as accumulated other comprehensive income (loss) in the Company’s condensed consolidated financial statements. Credit and Customer Concentration Risk Credit risk, with respect to accounts receivable, is due to customers being concentrated in the oil and gas, maritime, pipeline, engineering and construction industries Liquidity Risk The Company maintains cash and cash equivalent balances with major financial institutions which, at times, exceed federally insured limits. The Company monitors the financial condition of the financial institutions and has not experienced losses associated with these accounts during 2020 or 2019. Liquidity risk is managed by continuously monitoring forecasted and actual cash flows and by matching the maturity profiles of financial assets and liabilities (see Note 5 – Long-Term Debt).

Goodwill and Intangibles

Goodwill and Intangibles	3 Months Ended
	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangibles	Note 3 – Goodwill and Intangibles Goodwill Goodwill resulted from prior acquisitions as the consideration paid for the acquired businesses exceeded the fair value of acquired identifiable net tangible and intangible assets. Goodwill is reviewed for impairment at least annually with additional evaluations being performed when events or circumstances indicate that the carrying value of these assets may not be recoverable. The oil and gas industry experienced an unprecedented disruption during the first quarter of 2020 as a result of a combination of factors, including the coronavirus (“COVID-19”) pandemic and disagreements between the Organization of Petroleum Exporting Countries (OPEC) in March 2020 regarding reduction on production of oil. These market conditions have significantly impacted the Company’s internal forecast. As a result, the Company performed an interim goodwill impairment test. The Company used the income approach to estimate the fair value of its reporting units, but also considered the market approach to validate the results. The income approach estimates the fair value by discounting each reporting unit’s estimated future cash flows using the Company’s discount rate. Some of the significant assumptions inherent in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. The Company selected the assumptions used in the discounted cash flow projections using historical information with supplemental data by current and anticipated market conditions and estimated growth rates. The Company's estimates are based upon assumptions believed to be reasonable. The Company determined that the carrying amount in two of our reporting units was in excess of their fair value which results in a goodwill impairment charge of $23.1 million. The charge fully impairs goodwill previously reported in MCS of $21.8 million and Systems Integration of $1.4 million. The impairment test for Apps & IoT resulted in no impairment related to the goodwill balance of $20.5 million as of March 31, 2020. The Company's estimates are based upon assumptions believed to be reasonable. However, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, particularly in the current volatile market, actual results may differ from those used in the Company's valuations. Any future downturn in our business could adversely impact the key assumptions in our impairment test. As of March 31, 2020, and December 31, 2019, goodwill was $20.5 million and $46.8 million, respectively. Goodwill increases or decreases in value due to the effect of foreign currency translation, increases with acquisitions, and decreases in the event an impairment is recognized. Intangibles Intangibles consist of customer relationships, brand covenants-not-to-compete and licenses The Company’s intangibles have useful lives ranging from 5.0 to 20.0 years and are amortized on a straight-line basis. Impairment testing is performed when events or circumstances indicate that the carrying value of the assets may not be recoverable. Based on the indicators discussed above, the Company reviewed certain finite intangible and other long-lived assets for impairment as of March 31, 2020. The Company performed a recoverability analysis and determined that the recoverable value was in excess of its carrying value, therefore no impairment was recognized as of March 31, 2020. As of March 31, 2020, and December 31, 2019, intangibles were $26.9 million and $30.1 million, respectively. During the three months ended March 31, 2020 and 2019, the Company recognized amortization expense of $2.1 million and $2.5 million, respectively. The following table sets forth expected amortization expense of intangibles for the remainder of 2020 and the following years (in thousands): 2020 4,839 2021 6,190 2022 5,783 2023 5,152 2024 3,657 Thereafter 1,250 $ 26,871

Restricted Cash

Restricted Cash	3 Months Ended
	Mar. 31, 2020
Cash And Cash Equivalents [Abstract]
Restricted Cash	As of March 31, 2020, the Company had in the MCS segment .

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Long-Term Debt	Note 5 – Long-Term Debt As of March 31, 2020, and December 31, 2019, the following credit facilities and long-term debt arrangements with financial institutions were in place: March 31, December 31, 2020 2019 (in thousands) Term Loan $ 16,000 $ 5,000 Term-Out Loan - 25,500 Revolving credit facility (RCF) 95,400 77,150 Vendor Finance Arrangement 2,790 - Unamortized deferred financing costs (857 ) (466 ) Finance lease 501 543 113,834 107,727 Less: Current maturities of long-term debt (7,627 ) (10,627 ) Current maturities of Vendor Finance Arrangement (954 ) - Current maturities of finance lease (166 ) (166 ) $ 105,087 $ 96,934 Credit Agreement The Company and certain of its subsidiaries are party to the Third Amendment to the Third Amended and Restated Credit Agreement, dated as of February 21, 2020, with four participating financial institutions (as amended from time to time, the Credit Agreement), which provides for a $16.0 million term loan (Term Loan), a $100.0 million revolving credit facility (RCF) and a $30.0 million accordion feature. The Term Loan matures on March 31, 2022 with principal installments of $2.0 million due quarterly beginning June 30, 2020. The RCF and accordion, if exercised, mature on August 31, 2022. The Credit Agreement bears Term Loan As of March 31, 2020, the outstanding principal amount of the Term Loan was $16.0 million, excluding the impact of unamortized deferred financing costs. RCF As of March 31, 2020, outstanding draws on the RCF were $95.4 million . In April 2020, the Company drew an additional $3.0 million on the RCF for liquidity purposes. Covenants and Restrictions The Company’s Credit Agreement contains certain covenants and restrictions, including restricting the payment of cash dividends under default, and maintaining certain financial covenants such as a Consolidated Leverage Ratio, of less than or equal to 3.25 through the third quarter of 2020. The Consolidated Leverage Ratio requirement then steps down to 3.00 through the second quarter of 2021 and then steps down to 2.75 for all remaining quarters. The Consolidated Fixed Charge Coverage ratio requirement is greater than or equal to 1.25 through the maturity of the Credit Agreement. If any default occurs related to these covenants that is not cured or waived, the unpaid principal and any accrued interest can be declared immediately due and payable. The facilities under the Credit Agreement are secured by substantially all the assets of the Company. We believe we have accurately calculated and reported our required debt covenant calculations for the March 31, 2020 reporting period and are in compliance with the required covenant ratios. As of March 31, 2020, the Consolidated Leverage Ratio was 3.00 and Consolidated Fixed Charge Coverage Ratio was 2.14. Vendor Finance Agreement As of March 31, 2020, the Company had a vendor financing agreement in place, with an outstanding balance of $2.8 million. The outstanding balance bears interest at a rate of 6% and has quarterly payments of $0.3 million of principal and interest through January 2023. Performance Bonds, Surety Bonds and Other Similar Instruments As of March 31, 2020, there were $8.5 million of performance bonds, surety bonds and similar instruments outstanding of which $2.1 million is issued by the parties under the Credit Agreement. In June 2016, the Company secured a performance bond facility with a lender in the amount of $1.5 million for its MCS segment. This facility has a maturity date of June 2021. The Company maintains restricted cash on a dollar for dollar basis to secure this facility. Debt Maturities The following table sets forth the aggregate principal maturities of long-term debt, net of deferred financing cost amortization, for the remainder of 2020 and the following years (in thousands): 2020 6,531 2021 8,731 2022 98,263 2023 309 Total debt, including current maturities $ 113,834

Fair Value Disclosures

Fair Value Disclosures	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Disclosures	Note 6 – Fair Value Disclosures The Company uses the following methods and assumptions to estimate the fair value of financial instruments: • Cash and Cash Equivalents — Reported amounts approximate fair value based on quoted market prices (Level 1). • Restricted Cash — Reported amounts approximate fair value. • Accounts Receivable — Reported amounts, net of the allowance for doubtful accounts, approximate fair value due to the short-term nature of these assets. • Accounts Payable, Including Income Taxes Payable and Accrued Expenses — Reported amounts approximate fair value due to the short-term nature of these liabilities. • Long-Term Debt — The carrying amount of the Company’s floating-rate debt approximates fair value since the interest rates paid are based on short-term maturities and recent quoted rates from financial institutions. The estimated fair value of debt was calculated based upon observable (Level 2) inputs regarding interest rates available to the Company at the end of each respective period. The Company’s non-financial assets, such as goodwill, intangibles and property, plant and equipment, are measured at fair value, based on level 3 inputs, when there is an indicator of impairment and recorded at fair value only when an impairment charge is recognized. The earn-out for Intelie is measured at fair value in each reporting period, based on level 3 inputs, with any change to the fair value recorded in the Condensed Consolidated Statements of Comprehensive Loss. As of March 31, 2020, the fair value of the earn-out was $9.7 million, with $4.4 million in deferred revenue and other current liabilities and $5.3 million in other long-term liabilities. As of December 31, 2019, the fair value of the earn-out was $9.7 million with $4.4 million in deferred revenue and other current liabilities and $5.3 million in other long-term liabilities. During the three months ended March 31, 2020 and 2019, RigNet recognized accreted interest expense on the Intelie earn-out of $0.1 million, and $0.1 million, respectively, with corresponding increases to other liabilities. The earn-out is payable in RigNet stock in portions on the first, second and third anniversary of the March 23, 2018 closing of the acquisition based on certain post-closing performance targets under the acquisition agreement. The contingent consideration for Cyphre, a cybersecurity company acquired in May 2017, is measured at fair value in each reporting period, based on level 3 inputs, with any change to the fair value recorded in the Condensed Consolidated Statements of Comprehensive Loss. As of March 31, 2020, the fair value of the contingent consideration was $3.0 million of which $0.3 million is in other current liabilities and $2.7 million is in other long-term liabilities. As of December 31, 2019, the fair value of the contingent consideration was $3.1 million, of which $0.3 million is in other current liabilities and $2.7 million is in other long-term liabilities. During the three months ended March 31, 2020 and 2019, RigNet recognized accreted interest expense on the Cyphre contingent consideration of $0.1 million, and $0.1 million, respectively, with corresponding increases to other liabilities. During the three months ended March 31, 2020 and 2019, RigNet paid cash of $0.1 million and $0.1 million, respectively, in required royalty payments, with corresponding decreases to other liabilities.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 7 – Income Taxes The Company’s effective income tax rate was 3.5% for the three months ended March 31, 2020. The Company’s effective income tax rate was (28.7%) for the three months ended March 31, 2019. The Company’s effective tax rate is affected by factors including changes in valuation allowances, fluctuations in income across jurisdictions with varying tax rates, and changes in income tax reserves, including related penalties and interest. The Company has computed the provision for taxes for the current and comparative periods using the actual year-to-date effective tax rate. The Company’s financial projections for those periods did not provide the level of detail necessary to calculate a forecasted effective tax rate. The Company received a notice informing us of an audit of the Company’s 2016-2017 income tax returns in Singapore. It is unclear if the audit and the appeals process, if necessary, will be completed within the next twelve months. The Company is in the early stages of the audit and is unable to quantify any potential settlement or outcome of the audit at this time. The Company believes that it is reasonably possible that a decrease of up to $3.9 million in unrecognized tax benefits, including related interest and penalties, may be necessary within the coming year due to lapse in statute of limitations.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 8 – Stock-Based Compensation During the three months ended March 31, 2020, the Company granted a total of 599,990 stock-based awards to certain officers and employees of the Company under the 2019 Omnibus Incentive Plan (2019 Plan). This stock grant was associated with the payment of the Company’s 2019 short term incentive plan to certain officers and employees that vested immediately. During the three months ended March 31, 2020, 20,656 RSUs and 18,340 stock options were forfeited. Stock-based compensation expense related to the Company’s stock-based compensation plans for the three months ended March 31, 2020, was $3.9 million and reported as a general and administrative expense in the Corporate segment. Stock-based compensation expense related to the Company’s stock-based compensation plans for the three months ended March 31, 2019, was $4.5 million. As of March 31, 2020, there was $5.7 million of total unrecognized compensation cost related to unvested options, RSUs and restricted stock expected to vest. This cost is expected to be recognized over a remaining weighted-average period of 2.1 years.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Note 9 – Earnings (loss) per Share Basic earnings (loss) per share (EPS) are computed by dividing net loss attributable to RigNet common stockholders by the weighted average number of basic shares outstanding during the period. Basic shares equal the total of the common shares outstanding, but excludes the dilutive effect of common shares that could potentially be issued due to the exercise of stock options or vesting of restricted stock, RSUs or PSUs. Diluted EPS is computed by dividing loss attributable to RigNet common stockholders by the weighted average number of diluted shares outstanding during the period. Diluted shares equal the total of the basic shares outstanding and all potentially issuable shares, other than antidilutive shares, if any. The Company uses the treasury stock method to determine the dilutive effect. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect if included, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, basic and dilutive loss per share are the same. For the three months ended March 31, 2020, there were approximately 3,551,575 potentially issuable shares excluded from the Company’s calculation of diluted EPS that were excluded because to include them would have been anti-dilutive. For the three months ended March 31, 2019, there were approximately 1,478,435 potentially issuable shares excluded from the Company’s calculation of diluted EPS that were excluded because the Company incurred a loss in the period and to include them would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10 – Commitments and Contingencies Global Xpress (GX) Dispute Inmarsat plc (Inmarsat), a satellite telecommunications company , filed arbitration with the International Centre for Dispute Resolution tribunal (the panel) in October 2016 concerning a January 2014 take-or-pay agreement to purchase up to $65.0 million, under certain conditions, of GX capacity from Inmarsat over several years. In June 2019, the Company announced that it reached a settlement with Inmarsat that concludes the GX Dispute. Pursuant to the settlement the Company paid $45.0 million in June 2019 and paid $5.0 million in July 2019 and will pay $0.8 million in the third quarter of 2020. The Company had an accrued liability of $0.8 million as of March 31, 2020. The Company incurred GX Dispute Phase II costs of $2.1 million for the three months ended March 31, 2019. Other Litigation The Company, in the ordinary course of business, is a claimant or a defendant in various legal proceedings, including proceedings as to which the Company has insurance coverage and those that may involve the filing of liens against the Company or its assets. Sales Tax Audit The Company is undergoing a routine sales tax audit from a state where the Company has operations. The audit can cover up to a four-year period. The Company is in the early stages of the audit, and does not have any estimates of further exposure, if any, for the tax years under review. Operating Leases The Company’s leasing activities primarily consist of leases of real-estate including office space under lease agreements expiring on various dates through 2025. For the three months ended March 31, 2020, the Company recognized expense under operating leases, which approximates cash paid and includes short-term leases, of $0.5 million. For the three months ended March 31, 2019, the Company recognized expense under operating leases, which approximates cash paid and includes short-term leases, of $0.7 million. As of March 31, 2020, future undiscounted minimum lease obligation maturities for the remainder of 2020 and future years were as follows (in thousands): 2020 $ 1,671 2021 1,480 2022 1,211 2023 1,195 2024 1,200 Thereafter 3,020 Total lease payments $ 9,777 Less present value discount (1,595 ) Amounts recognized in Balance Sheet $ 8,182 Amounts recognized in Balance Sheet Deferred revenue and other current liabilities 2,016 Right-of-use lease liability - long-term portion 6,166 Total right-to-use lease liability $ 8,182 Operating lease right-of-use assets for leases were $6.7 million as of March 31, 2020. The right-of-use assets and liabilities for leases were discounted at a weighted-average discount rate of Commercial Commitments The Company enters into contracts for satellite bandwidth and other network services with certain providers. As of March 31, 2020, the Company had the following commercial commitments related to satellite and network services for the remainder of 2020 and the future years thereafter (in thousands): 2020 15,240 2021 10,790 2022 5,183 2023 108 $ 31,321

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Information	Note 11 – Segment Information Segment information is prepared consistent with the components of the enterprise for which separate financial information is available and regularly evaluated by the chief operating decision-maker for the purpose of allocating resources and assessing performance. RigNet considers its business to consist of the following segments: • Managed Communications Services (MCS) . The MCS segment provides remote communications, telephony and technology services for offshore and onshore drilling rigs and production facilities, support vessels, and other remote sites. • Applications and Internet- of-Things (Apps & IoT). The Apps & IoT segment provides applications over-the-top of the network layer including Software as a Service (SaaS) offerings such as a real-time machine learning and AI data platform (Intelie Pipes and Intelie LIVE), Cyphre Encryption, Enhanced Cybersecurity Services (ECS), edge computing solution services that assist customers with collecting and standardizing the complex data produced by edge devices (LIVE-IT), applications for safety and workforce productivity such as weather monitoring primarily in the North Sea (MetOcean) , and certain other value-added services such as Adaptive Video Intelligence (AVI). This segment also includes the private machine-to-machine IoT data networks including Supervisory Control and Data Acquisition (SCADA) provided primarily for pipelines. • Systems Integration . The Systems Integration segment provides design and implementation services for customer telecommunications systems. Solutions are delivered based on the customer’s specifications, adhering to international industry standards and best practices. Project services may include consulting, design, engineering, project management, procurement, testing, installation, commissioning and maintenance. Additionally, Systems Integration provides complete monitoring and maintenance for fire and gas detection systems and PLC/automation control systems. Corporate and Eliminations primarily represents unallocated executive and support activities, including back-office software development, interest expense, income taxes and eliminations , the GX Dispute and change in fair value of earn-out/contingent consideration The Company’s reportable segment information as of and for the three months ended March 31, 2020 and 2019, is presented below. Three Months Ended March 31, 2020 Managed Communications Services Applications and Internet-of- Things Systems Integration Corporate and Eliminations Consolidated Total (in thousands) Revenue $ 39,896 $ 8,743 $ 10,122 $ - $ 58,761 Cost of revenue (excluding depreciation and amortization) 25,502 4,561 7,887 - 37,950 Depreciation and amortization 4,659 1,182 164 926 6,931 Impairment of goodwill 21,755 - 1,386 - 23,141 Selling, general and administrative 2,807 1,620 404 11,810 16,641 Operating income (loss) $ (14,827 ) $ 1,380 $ 281 $ (12,736 ) $ (25,902 ) Total assets 131,569 37,692 25,187 23,146 217,594 Capital expenditures 2,839 514 - 344 3,697 Three Months Ended March 31, 2019 Managed Communications Services Applications and Internet-of- Things Systems Integration Corporate and Eliminations Consolidated Total (in thousands) Revenue $ 42,333 $ 8,015 $ 7,162 $ - $ 57,510 Cost of revenue (excluding depreciation and amortization) 26,985 4,497 4,974 - 36,456 Depreciation and amortization 6,264 1,231 662 755 8,912 Selling, general and administrative 3,797 565 1,124 14,777 20,263 Operating income (loss) $ 5,287 $ 1,722 $ 402 $ (15,532 ) $ (8,121 ) Total assets 170,553 46,086 26,546 18,034 261,219 Capital expenditures 6,636 433 - 20 7,089 The following table presents revenue earned from the Company’s domestic and international operations for the three months ended March 31, 2020 and 2019. Revenue is based on the location where services are provided or goods are sold. Due to the mobile nature of RigNet’s customer base and the services provided, the Company works closely with its customers to ensure rig or vessel moves are monitored to ensure the location of service information is properly reflected. Three Months Ended March 31, 2020 2019 (in thousands) Domestic $ 23,275 $ 24,627 International 35,486 32,883 Total $ 58,761 $ 57,510 The following table presents goodwill, right-of-use lease assets and long-lived assets, net of accumulated depreciation, for the Company’s domestic and international operations as of March 31, 2020 and December 31, 2019. March 31, December 31, 2020 2019 (in thousands) Domestic $ 69,794 $ 76,253 International 41,498 67,631 Total $ 111,292 $ 143,884

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Note 12 – Related Party Transactions The Company has a reseller arrangement with Darktrace, which is an artificial intelligence company in cybersecurity that is partially owned by KKR & CO. Inc. (KKR). KKR is a significant stockholder of the Company. Under the arrangement, the Company sells Darktrace’s cybersecurity audit services with the Company’s cybersecurity offerings. In the three months ended March 31, 2020, the Company purchased $0.1 million from Darktrace in the ordinary course of business. In the three months ended March 31, 2019, the Company purchased $0.1 million from Darktrace in the ordinary course of business. Vissim AS is now a vendor following a competitive request for a quote from RigNet in the ordinary course of business. A customer specified Vissim AS by name as a provider for an SI project. Vissim AS is 24% owned by AVANT Venture Capital AS. AVANT Venture Capital is owned by and has as the chairman of its board one of our board members. In the three months ended March 31, 2020 and 2019, the Company purchased $0.1 million and none, respectively, from Vissim AS in the ordinary course of business.

Restructuring Costs - Cost Redu

Restructuring Costs - Cost Reduction Plans	3 Months Ended
	Mar. 31, 2020
Restructuring And Related Activities [Abstract]
Restructuring Costs - Cost Reduction Plans	Note 13 – Restructuring Costs – Cost Reduction Plans During the three months ended March 31, 2019, the Company incurred a net pre-tax restructuring expense of $0.6 million reported as general and administrative expense in the Corporate segment associated with the reduction of 25 employees.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Event	Note 14 – Subsequent Event In May 2020, the Company entered into a loan agreement (PPP Loan) with Bank of America, N.A., as lender, pursuant to the Paycheck Protection Program (PPP) of the U.S. Small Business Administration (SBA) established under the Coronavirus Aid, Relief, and Economic Security Act. Under the PPP Loan, the Company borrowed $6.8 million which the Company expects to be eligible for forgiveness pursuant to the applicable regulations of the PPP. Currently, the regulations provide for loan forgiveness to the extent that (i) the proceeds are used in the eight week period after funding of the loan, (ii) at least 75% of the forgiven amount is used for eligible payroll costs and (iii) the remaining proceeds are used for interest on mortgages, rents, or utilities, and interest on other debt obligations incurred before February 15, 2020. The amount eligible for forgiveness may be reduced if, among other things, the Company reduces its full-time headcount or if the Company reduces salaries and wages beyond certain limits. While the Company expects all $6.8 million will be used in accordance with the regulations for forgiveness, not all costs are within the control of the Company and these regulations are subject to change as a result of administrative or judicial proceedings or legislative initiatives including additional regulations that are anticipated to be released by the SBA. Any amounts not forgiven must be repaid in two years and accrue interest at a rate of 1.0% per year. No interest or principal payments are due for six months, at which time interest and principal payments will be made on any unforgiven balance under terms established by Bank of America, N.A. at that time. The SBA has publicly stated that it intends to review all loans in excess of $2.0 million when loan forgiveness is requested. The SBA has not provided any further details of this review and the Company cannot assure the results of any such review.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Revenue Recognition	Revenue Recognition – Revenue from Contracts with Customers Revenue is recognized to depict the transfer of promised goods or services in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue Recognition – Managed Communications Services (MCS) and Applications and Internet-of-Things (Apps & IoT) MCS and Apps & IoT customers are primarily served under fixed-price contracts, either on a monthly, usage or day rate basis or for equipment sales and consulting services. Contracts are generally in the form of Master Service Agreements, or MSAs, with specific services being provided under individual service orders. Offshore contracts generally have a term of up to five years with renewal options. Land-based contracts are generally shorter term or terminable on short notice without a penalty. Service orders are executed under the MSA for individual remote sites or groups of sites, and generally permit early termination on short notice without penalty in the event of force majeure, breach of the MSA or cold stacking of a drilling rig (when a rig is taken out of service and is expected to be idle for a protracted period of time). With certain customers, our contracts require that the contract backlog on stack rigs be transferred to other units, preserving the total contract value. Performance Obligations Satisfied Over Time — The delivery of service represents the single performance obligation under MCS and Apps & IoT contracts. Revenue for contracts is generally recognized over time as service is transferred to the customer and the Company expects to be entitled to the agreed monthly, usage or day rate in exchange for those services. Performance Obligations Satisfied at a Point in Time — The delivery of equipment represents the single performance obligation under equipment sale contracts. Revenue for equipment sales is generally recognized upon delivery of equipment to customers. Revenue Recognition – Systems Integration Revenues related to long-term, fixed-price Systems Integration contracts for customized network solutions are recognized based on the percentage of completion for the contract. At any point, RigNet has numerous contracts in progress, all of which are at various stages of completion. Accounting for revenues and profits on long-term contracts requires estimates of total estimated contract costs and estimates of progress toward completion to determine the extent of revenue and profit recognition. Performance Obligations Satisfied Over Time — The delivery of a Systems Integration solution represents the single performance obligation under Systems Integration contracts. Progress towards completion on fixed-price contracts is measured based on the ratio of costs incurred to total estimated contract costs (the cost-to-cost method). These estimates may be revised as additional information becomes available or as specific project circumstances change. The Company reviews all material contracts on a monthly basis and revises the estimates as appropriate for developments such as providing services, purchasing third-party materials and equipment at costs differing from those previously estimated, and incurring or expecting to incur schedule issues. Changes in estimated final contract revenues and costs can either increase or decrease the final estimated contract profit or loss. Profits are recorded in the period in which a change in estimate is recognized, based on the progress achieved through the period of change. Anticipated losses on contracts are recorded in full in the period in which they become evident. Revenue recognized in excess of amounts billed is classified as a current asset under Costs and estimated earnings in excess of billings on uncompleted contracts (CIEB). Systems Integration contracts are billed in accordance with the terms of the contract which are typically either based on milestones or specified time intervals. As of March 31, 2020, and December 31, 2019, the amount of CIEB related to Systems Integration projects was $15.8 million and $13.3 million, respectively. Under long-term contracts, amounts recorded in CIEB may not be realized or paid within a one-year period. As of March 31, 2020 and December 31, 2019, $1.3 million and $1.0 million, respectively, of amounts billed to customers in excess of revenue recognized to date were classified as a current liability, under deferred revenue and other current liabilities. Variable Consideration – Systems Integration - The Company records revenue on contracts relating to certain probable claims and unapproved change orders by including in revenue an amount less than or equal to the amount of costs incurred to date relating to these probable claims and unapproved change orders, thus recognizing no profit until such time as claims are finalized or change orders are approved. The amount of unapproved change orders and claim revenues is included in the Company’s Condensed Consolidated Balance Sheets as part of CIEB. No material unapproved change orders or claims revenue were included in CIEB as of March 31, 2020, and December 31, 2019 . As new facts become known, an adjustment to the estimated recovery is made and reflected in the current period. Backlog - As of March 31, 2020, we have a backlog for our percentage of completion projects of $22.4 million, which will be recognized over the remaining contract term for each contract. The percentage of completion contract terms are typically one to three years. As of December 31, 2019, we had a backlog for our percentage of completion projects of $26.2 million.
Leases	Leases Effective with adoption of Accounting Standards Update No. 2016-02 (ASU 2016-02), Leases (the new lease standard) on January 1, 2019, we determine if an arrangement is a lease at inception. Operating leases right-of-use assets and liabilities are included in right-to-use lease asset, deferred revenue and other current liabilities, and right-to-use lease liability – long-term portion on our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment; current maturities of long-term debt; and long-term debt on our condensed consolidated balance sheets. Operating lease right-to-use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13), which measures credit losses on most financial assets and certain other instruments that are not measured at fair value through net income. The update amends the impairment model to utilize a current expected credit loss (CECL) methodology in place of the incurred loss methodology for financial instruments, including trade receivables. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. Companies will apply this standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The new standard is effective for interim and annual reporting periods beginning In August 2018, the FASB issued ASU No. 2018-13 (ASU 2018-13), which eliminates disclosures, modifies existing disclosures and adds new Fair Value disclosure requirements to Topic 820 for the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for annual and interim reporting periods beginning after December 15, 2019. In August 2018, the FASB issued ASU No. 2018-15 (ASU 2018-15), which provides guidance on implementation costs incurred in a cloud computing arrangement that is a service contract. The ASU is effective for annual and interim reporting periods beginning after December 15, 2019. The Company adopted the guidance effective January 1, 2020, and the guidance did not have a material impact on the Company’s condensed consolidated financial statements. In December 2019, the FASB issued Accounting Standards Update No. 2019-12 (ASU 2019-12), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes certain exceptions for investments, intraperiod allocations and interim tax calculations and adds guidance to reduce complexity in accounting for income taxes. We will be required to adopt the amended guidance in annual and interim periods beginning after December 15, 2020, with early adoption permitted. The various amendments in Update 2019-12 are applied on a retrospective basis, modified retrospective basis and prospective basis, depending on the amendment. We are in the process of evaluating the impact this amendment will have on our consolidated financial statements. In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (ASU 2020-04), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease potential burden in accounting or recognizing the effects of the LIBOR or another reference rate reform on financing rate. The amendments are effective as of March 12, 2020 through December 31, 2022. We are currently in the process of evaluating the impact the transition from LIBOR to alternative reference rates, but we do not expect a material impact on our consolidated financial statements.

Goodwill and Intangibles (Table

Goodwill and Intangibles (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization Expense for Intangibles	The following table sets forth expected amortization expense of intangibles for the remainder of 2020 and the following years (in thousands): 2020 4,839 2021 6,190 2022 5,783 2023 5,152 2024 3,657 Thereafter 1,250 $ 26,871

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Credit Facilities and Long-Term Debt Arrangements	As of March 31, 2020, and December 31, 2019, the following credit facilities and long-term debt arrangements with financial institutions were in place: March 31, December 31, 2020 2019 (in thousands) Term Loan $ 16,000 $ 5,000 Term-Out Loan - 25,500 Revolving credit facility (RCF) 95,400 77,150 Vendor Finance Arrangement 2,790 - Unamortized deferred financing costs (857 ) (466 ) Finance lease 501 543 113,834 107,727 Less: Current maturities of long-term debt (7,627 ) (10,627 ) Current maturities of Vendor Finance Arrangement (954 ) - Current maturities of finance lease (166 ) (166 ) $ 105,087 $ 96,934
Aggregate Principal Maturities of Long-Term Debt	The following table sets forth the aggregate principal maturities of long-term debt, net of deferred financing cost amortization, for the remainder of 2020 and the following years (in thousands): 2020 6,531 2021 8,731 2022 98,263 2023 309 Total debt, including current maturities $ 113,834

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Future Minimum Lease Obligations	As of March 31, 2020, future undiscounted minimum lease obligation maturities for the remainder of 2020 and future years were as follows (in thousands): 2020 $ 1,671 2021 1,480 2022 1,211 2023 1,195 2024 1,200 Thereafter 3,020 Total lease payments $ 9,777 Less present value discount (1,595 ) Amounts recognized in Balance Sheet $ 8,182 Amounts recognized in Balance Sheet Deferred revenue and other current liabilities 2,016 Right-of-use lease liability - long-term portion 6,166 Total right-to-use lease liability $ 8,182
Commercial Commitments Related to Satellite and Network Services	As of March 31, 2020, the Company had the following commercial commitments related to satellite and network services for the remainder of 2020 and the future years thereafter (in thousands): 2020 15,240 2021 10,790 2022 5,183 2023 108 $ 31,321

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Company's Business Segment Information	The Company’s reportable segment information as of and for the three months ended March 31, 2020 and 2019, is presented below. Three Months Ended March 31, 2020 Managed Communications Services Applications and Internet-of- Things Systems Integration Corporate and Eliminations Consolidated Total (in thousands) Revenue $ 39,896 $ 8,743 $ 10,122 $ - $ 58,761 Cost of revenue (excluding depreciation and amortization) 25,502 4,561 7,887 - 37,950 Depreciation and amortization 4,659 1,182 164 926 6,931 Impairment of goodwill 21,755 - 1,386 - 23,141 Selling, general and administrative 2,807 1,620 404 11,810 16,641 Operating income (loss) $ (14,827 ) $ 1,380 $ 281 $ (12,736 ) $ (25,902 ) Total assets 131,569 37,692 25,187 23,146 217,594 Capital expenditures 2,839 514 - 344 3,697 Three Months Ended March 31, 2019 Managed Communications Services Applications and Internet-of- Things Systems Integration Corporate and Eliminations Consolidated Total (in thousands) Revenue $ 42,333 $ 8,015 $ 7,162 $ - $ 57,510 Cost of revenue (excluding depreciation and amortization) 26,985 4,497 4,974 - 36,456 Depreciation and amortization 6,264 1,231 662 755 8,912 Selling, general and administrative 3,797 565 1,124 14,777 20,263 Operating income (loss) $ 5,287 $ 1,722 $ 402 $ (15,532 ) $ (8,121 ) Total assets 170,553 46,086 26,546 18,034 261,219 Capital expenditures 6,636 433 - 20 7,089
Revenue Earned from Domestic and International Operations	The following table presents revenue earned from the Company’s domestic and international operations for the three months ended March 31, 2020 and 2019. Revenue is based on the location where services are provided or goods are sold. Due to the mobile nature of RigNet’s customer base and the services provided, the Company works closely with its customers to ensure rig or vessel moves are monitored to ensure the location of service information is properly reflected. Three Months Ended March 31, 2020 2019 (in thousands) Domestic $ 23,275 $ 24,627 International 35,486 32,883 Total $ 58,761 $ 57,510
Long - Lived Assets, Net of Accumulated Depreciation for Both Domestic and International Operations	The following table presents goodwill, right-of-use lease assets and long-lived assets, net of accumulated depreciation, for the Company’s domestic and international operations as of March 31, 2020 and December 31, 2019. March 31, December 31, 2020 2019 (in thousands) Domestic $ 69,794 $ 76,253 International 41,498 67,631 Total $ 111,292 $ 143,884

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Revenue recognized from customers	$ 1.3	$ 1
Systems Integration Projects [Member]
Costs and estimated earnings	15.8	13.3
Backlog from revenue contract	$ 22.4	$ 26.2
Systems Integration Projects [Member] | Maximum [Member]
Remaining contract term	1 year
Systems Integration Projects [Member] | Minimum [Member]
Remaining contract term	3 years

Business and Credit Concentra_2

Business and Credit Concentrations - Additional Information (Detail) - Sales Revenue, Net [Member]	3 Months Ended
	Mar. 31, 2020Customer
Business Combination, Separately Recognized Transactions [Line Items]
Percentage of revenue generated from top five customers	26.70%
Number of significant customers	0
Royal Dutch [Member]
Business Combination, Separately Recognized Transactions [Line Items]
Maximum percentage of revenue generated from single customer	10.00%

Goodwill and Intangibles - Addi

Goodwill and Intangibles - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)ReportingUnit	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Goodwill And Intangible Assets Impairment [Line Items]
Reporting units | ReportingUnit	2
Impairment of goodwill	$ 23,141
Goodwill	20,464		$ 46,792
Impairment of intangibles	0
Intangibles, net	26,871		$ 30,145
Amortization expense	$ 2,100	$ 2,500
Minimum [Member]
Goodwill And Intangible Assets Impairment [Line Items]
Intangible assets useful life	5 years
Maximum [Member]
Goodwill And Intangible Assets Impairment [Line Items]
Intangible assets useful life	20 years
Managed Communication Services [Member]
Goodwill And Intangible Assets Impairment [Line Items]
Goodwill	$ 21,800
Applications and Internet-of-Things [Member]
Goodwill And Intangible Assets Impairment [Line Items]
Goodwill	20,500
Systems Integration [Member]
Goodwill And Intangible Assets Impairment [Line Items]
Goodwill	$ 1,400

Goodwill and Intangibles - Amor

Goodwill and Intangibles - Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
2020	$ 4,839
2021	6,190
2022	5,783
2023	5,152
2024	3,657
Thereafter	1,250
Total amortization expense of intangibles	$ 26,871	$ 30,145

Restricted Cash - Additional In

Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Restricted cash, current	$ 40	$ 42	$ 42
Restricted cash, non-current	1,523	1,522	$ 1,499
Current assets [Member]
Restricted cash, current	100	100
Long-term assets [Member]
Restricted cash, non-current	$ 1,500	$ 1,500

Long-Term Debt - Credit Facilit

Long-Term Debt - Credit Facilities and Long-Term Debt Arrangements (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Term Loan	$ 16,000	$ 5,000
Term-Out Loan		25,500
Revolving credit facility (RCF)	95,400	77,150
Vendor Finance Arrangement	2,790
Unamortized deferred financing costs	(857)	(466)
Finance lease	501	543
Total debt, including current maturities	113,834	107,727
Less: Current maturities of long-term debt	(7,627)	(10,627)
Current maturities of Vendor Finance Arrangement	(954)
Current maturities of finance lease	(166)	(166)
Long-term debt, non current portion	$ 105,087	$ 96,934

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) $ in Thousands	Feb. 21, 2020USD ($)Institution	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2019	Apr. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2016USD ($)
Debt Instrument [Line Items]
Number of participating financial institutions | Institution	4
Line of credit outstanding amount			$ 95,400			$ 77,150
Maturity of Term Loan / Maturity date			Jan. 31, 2023
Debt Instrument, Description of Variable Rate Basis			LIBOR
Supplementary leverage ratio			3.00%
Weighted average interest rate			6.00%
Fixed Charge Coverage Ratio			2.14%
Vendor finance agreement , outstanding amount			$ 2,800
Quartely payments			300
Performance bonds outstanding amount			8,500
Surety Bonds And Similar Instruments Outstanding			$ 2,100
Performance bond facility							$ 1,500
Maturity date of performance bond facility			Jun. 30, 2021
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount			$ 95,400
Revolving credit facility	$ 100,000
Revolving Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount					$ 3,000
Amendment Credit Agreement [Member] | Term Out Loan [Member]
Debt Instrument [Line Items]
Maturity of Term Loan / Maturity date	Aug. 31, 2022
Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Weighted average interest rate			4.40%	5.20%
Interest rate			4.00%
Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Supplementary leverage ratio	1.75%
Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Supplementary leverage ratio	3.25%
Third Quarter 2020 [Member]
Debt Instrument [Line Items]
Funded debt to Adjusted EBITDA ratio			3.25%
Second Quarter 2021 [Member]
Debt Instrument [Line Items]
Funded debt to Adjusted EBITDA ratio			3.00%
Remaining Quarter [Member]
Debt Instrument [Line Items]
Funded debt to Adjusted EBITDA ratio			2.75%
Term Loan [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount			$ 16,000
Term Loan [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Maturity of Term Loan / Maturity date		Mar. 31, 2022
Debt Instrument, Periodic Payment, Principal		$ 2,000
Term Loan [Member] | Amendment Credit Agreement [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount	$ 16,000
Accordion Feature [Member] | Amendment Credit Agreement [Member]
Debt Instrument [Line Items]
Line of credit outstanding amount	$ 30,000

Long-Term Debt - Aggregate Prin

Long-Term Debt - Aggregate Principal Maturities of Long-Term Debt (Detail) $ in Thousands	Mar. 31, 2020USD ($)
Debt Disclosure [Abstract]
2020	$ 6,531
2021	8,731
2022	98,263
2023	309
Total debt, including current maturities	$ 113,834

Fair Value Disclosure - Additio

Fair Value Disclosure - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Intelie Solucoes Em Informatica S A [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Contingent consideration earn-out, estimated payment	$ 9.7		$ 9.7
Business combination, contingent consideration, liability, current	4.4		4.4
Business combination, contingent consideration, liability, noncurrent	5.3		5.3
Intelie Solucoes Em Informatica S A [Member] | Interest Expense [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Accreted interest expense on earn-out liability	0.1	$ 0.1
Cyphre Security Solutions [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Contingent consideration earn-out, estimated payment	3		3.1
Business combination, contingent consideration, liability, current	0.3		0.3
Business combination, contingent consideration, liability, noncurrent	2.7		$ 2.7
Royalty payments	0.1	0.1
Cyphre Security Solutions [Member] | Interest Expense [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Accreted interest expense on earn-out liability	$ 0.1	$ 0.1

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate	3.50%	28.70%
Reductions related to lapses in statue of limitations	$ 3.9

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options, forfeited	18,340
Stock-based compensation	$ 3,854	$ 4,458
Total unrecognized compensation cost	$ 5,700
Restricted Stock Units RSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs, forfeited	20,656
2019 Omnibus Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted common stock granted, net of share repurchase from employees and share cancellations, shares	599,990
2006 Long Term Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average period	2 years 1 month 6 days

Earnings (Loss) Per Share - Add

Earnings (Loss) Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Potentially issuable shares excluded from calculation of diluted EPS	3,551,575	1,478,435

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended		3 Months Ended
	Jul. 31, 2019	Jun. 30, 2019	Sep. 30, 2020	Mar. 31, 2020	Mar. 31, 2019
Commitments And Contingencies [Line Items]
Recognized expense under operating leases				$ 0.5	$ 0.7
Operating lease right-of-use assets				$ 6.7
Operating lease,weighted-average discount rate				5.10%
Weighted-average remaining lease term				6 years 10 months 24 days
GX Dispute [Member]
Commitments And Contingencies [Line Items]
Long term purchase commitment amount, maximum				$ 65
Damages Paid		$ 45
Legal expenses	$ 5				$ 2.1
Accrued liability				$ 0.8
GX Dispute [Member] | Forecast [Member]
Commitments And Contingencies [Line Items]
Damages Paid			$ 0.8

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Lease Obligations (Detail) $ in Thousands	Mar. 31, 2020USD ($)
Operating Leases Future Minimum Payments Due [Abstract]
2020	$ 1,671
2021	1,480
2022	1,211
2023	1,195
2024	1,200
Thereafter	3,020
Total lease payments	9,777
Less present value discount	(1,595)
Amounts recognized in Balance Sheet	8,182
Deferred revenue and other current liabilities	2,016
Right-of-use lease liability - long-term portion	6,166
Total right-to-use lease liability	$ 8,182

Commitments and Contingencies_3

Commitments and Contingencies - Commercial Commitments Related to Satellite and Network Services (Detail) $ in Thousands	Mar. 31, 2020USD ($)
Commitments And Contingencies Disclosure [Abstract]
2020	$ 15,240
2021	10,790
2022	5,183
2023	108
Other Commitment total	$ 31,321

Segment Information - Company's

Segment Information - Company's Business Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 58,761	$ 57,510
Cost of revenue (excluding depreciation and amortization)	37,950	36,456
Depreciation and amortization	6,931	8,912
Impairment of goodwill	23,141
Selling, general and administrative	16,641	20,263
Operating loss	(25,902)	(8,121)
Total assets	217,594	261,219	$ 250,980
Capital expenditures	3,697	7,089
Reportable Segments [Member] | Managed Communication Services [Member]
Segment Reporting Information [Line Items]
Revenue	39,896	42,333
Cost of revenue (excluding depreciation and amortization)	25,502	26,985
Depreciation and amortization	4,659	6,264
Impairment of goodwill	21,755
Selling, general and administrative	2,807	3,797
Operating loss	(14,827)	5,287
Total assets	131,569	170,553
Capital expenditures	2,839	6,636
Reportable Segments [Member] | Applications and Internet-of-Things [Member]
Segment Reporting Information [Line Items]
Revenue	8,743	8,015
Cost of revenue (excluding depreciation and amortization)	4,561	4,497
Depreciation and amortization	1,182	1,231
Selling, general and administrative	1,620	565
Operating loss	1,380	1,722
Total assets	37,692	46,086
Capital expenditures	514	433
Reportable Segments [Member] | Systems Integration [Member]
Segment Reporting Information [Line Items]
Revenue	10,122	7,162
Cost of revenue (excluding depreciation and amortization)	7,887	4,974
Depreciation and amortization	164	662
Impairment of goodwill	1,386
Selling, general and administrative	404	1,124
Operating loss	281	402
Total assets	25,187	26,546
Corporate and Eliminations [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization	926	755
Selling, general and administrative	11,810	14,777
Operating loss	(12,736)	(15,532)
Total assets	23,146	18,034
Capital expenditures	$ 344	$ 20

Segment Information - Revenue E

Segment Information - Revenue Earned from Domestic and International Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	$ 58,761	$ 57,510
Domestic [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	23,275	24,627
International [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	$ 35,486	$ 32,883

Segment Information - Long - Li

Segment Information - Long - Lived Assets, Net of Accumulated Depreciation for Both Domestic and International Operations (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenues From External Customers And Long Lived Assets [Line Items]
Long lived assets	$ 111,292	$ 143,884
Domestic [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Long lived assets	69,794	76,253
International [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Long lived assets	$ 41,498	$ 67,631

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Related Party Transaction [Line Items]
Purchases from related party	$ 0.1	$ 0.1
Avant Venture Capital AS [Member]
Related Party Transaction [Line Items]
Purchases from related party	$ 0.1	$ 0
Equity method investment, Ownership percentage	24.00%

Restructuring Costs - Cost Re_2

Restructuring Costs - Cost Reduction Plans - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)Employee
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees lay off | Employee	25
General and Administrative Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges, pre-tax | $	$ 0.6

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	May 31, 2020	Mar. 31, 2020
Subsequent Event [Line Items]
Proceeds from borrowings		$ 3,750
Subsequent Event [Member] | Bank of America, N.A [Member] | PPP Loan [Member]
Subsequent Event [Line Items]
Proceeds from borrowings	$ 6,800
Borrowing capacity description	(i) the proceeds are used in the eight week period after funding of the loan, (ii) at least 75% of the forgiven amount is used for eligible payroll costs and (iii) the remaining proceeds are used for interest on mortgages, rents, or utilities, and interest on other debt obligations incurred before February 15, 2020.
Debt repayment term	2 years
Interest rate	1.00%
Forgiveness of loan	$ 2,000