Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ORBC | ||
Entity Registrant Name | ORBCOMM INC. | ||
Entity Central Index Key | 0001361983 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 79,084,394 | ||
Entity Public Float | $ 283,245,012 | ||
Title of 12(b) Security | Common stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-33118 | ||
Entity Address, Address Line One | 395 W. Passaic Street | ||
Entity Address, City or Town | Rochelle Park | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07662 | ||
City Area Code | 703 | ||
Local Phone Number | 433-6300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Tax Identification Number | 41-2118289 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2021 Annual Meeting of Stockholders to be held on April 21, 2021 are incorporated by reference in Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 40,384 | $ 54,258 |
Accounts receivable, net of allowances for doubtful accounts of $8,209 and $4,480, respectively | 51,199 | 60,595 |
Inventories | 29,987 | 39,881 |
Prepaid expenses and other current assets | 14,592 | 18,003 |
Total current assets | 136,162 | 172,737 |
Satellite network and other equipment, net | 127,537 | 145,553 |
Goodwill | 166,129 | 166,129 |
Intangible assets, net | 60,559 | 73,280 |
Other assets | 20,200 | 23,149 |
Deferred income taxes | 258 | 132 |
Total assets | 510,845 | 580,980 |
Current liabilities: | ||
Accounts payable | 14,323 | 16,722 |
Accrued liabilities | 31,907 | 36,951 |
Current portion of notes payable | 10,000 | |
Current portion of deferred revenue | 5,238 | 3,865 |
Total current liabilities | 61,468 | 57,538 |
Note payable — related party | 1,400 | 1,275 |
Notes payable, net of unamortized deferred issuance costs | 206,897 | 246,683 |
Deferred revenue, net of current portion | 4,158 | 6,771 |
Deferred tax liabilities | 13,413 | 14,894 |
Other liabilities | 14,094 | 16,303 |
Total liabilities | 301,430 | 343,464 |
Commitments and contingencies | ||
ORBCOMM Inc. stockholders’ equity | ||
Common stock, par value $0.001; 250,000,000 shares authorized; 78,183,806 and 78,062,451 shares issued at December 31, 2020 and December 31, 2019, respectively | 78 | 78 |
Additional paid-in capital | 451,327 | 447,681 |
Accumulated other comprehensive income (loss) | 1,021 | (1,013) |
Accumulated deficit | (244,882) | (210,942) |
Total ORBCOMM Inc. stockholders’ equity | 207,950 | 236,210 |
Noncontrolling interests | 1,465 | 1,306 |
Total equity | 209,415 | 237,516 |
Total liabilities and equity | 510,845 | 580,980 |
Series A Convertible Preferred Stock [Member] | ||
ORBCOMM Inc. stockholders’ equity | ||
Series A Convertible Preferred Stock, par value $0.001; 1,000,000 shares authorized; 40,624 shares issued and outstanding at December 31, 2020 and December 31, 2019 | $ 406 | $ 406 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Allowances for doubtful accounts | $ 8,209 | $ 4,480 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 78,183,806 | 78,062,451 |
Series A Convertible Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued | 40,624 | 40,624 |
Preferred Stock, shares outstanding | 40,624 | 40,624 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Revenues | $ 245,130 | $ 266,254 | $ 270,607 |
Total revenues | 248,466 | 272,013 | 276,140 |
Operating expenses: | |||
Selling, general and administrative | 70,176 | 69,590 | 66,988 |
Product development | 12,720 | 14,720 | 13,405 |
Depreciation and amortization | 50,736 | 50,702 | 49,684 |
Acquisition-related and integration costs | 448 | 788 | 1,624 |
(Loss) income from operations | (340) | 5,572 | (2,189) |
Other (expense) income: | |||
Interest income | 1,239 | 1,957 | 1,918 |
Other (expense) income | (1,369) | (129) | 45 |
Interest expense | (19,957) | (21,149) | (21,055) |
Loss on debt extinguishment | (2,942) | ||
Loss on debt call premium | (8,800) | ||
Total other expense | (31,829) | (19,321) | (19,092) |
Loss before income taxes | (32,169) | (13,749) | (21,281) |
Income taxes | 1,656 | 4,383 | 4,658 |
Net loss | (33,825) | (18,132) | (25,939) |
Less: Net income attributable to the noncontrolling interests | 115 | 291 | 305 |
Net loss attributable to ORBCOMM Inc. | (33,940) | (18,423) | (26,244) |
Net loss attributable to ORBCOMM Inc. common stockholders | $ (33,940) | $ (18,435) | $ (26,262) |
Per share information-basic: | |||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (0.43) | $ (0.23) | $ (0.34) |
Per share information-diluted: | |||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (0.43) | $ (0.23) | $ (0.34) |
Weighted average common shares outstanding: | |||
Basic | 78,101 | 79,259 | 77,603 |
Diluted | 78,101 | 79,259 | 77,603 |
Service [Member] | |||
Revenues: | |||
Revenues | $ 157,819 | $ 160,594 | $ 153,589 |
Cost of revenues, exclusive of depreciation and amortization shown below: | |||
Cost of goods and services sold | 51,273 | 52,264 | 53,184 |
Product [Member] | |||
Revenues: | |||
Revenues | 87,311 | 105,660 | 117,018 |
Total revenues | 90,647 | 111,419 | 122,551 |
Cost of revenues, exclusive of depreciation and amortization shown below: | |||
Cost of goods and services sold | $ 63,453 | $ 78,377 | $ 93,444 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (33,825) | $ (18,132) | $ (25,939) |
Other comprehensive income (loss) — Foreign currency translation adjustments | 2,078 | (643) | (649) |
Other comprehensive income (loss) | 2,078 | (643) | (649) |
Comprehensive loss | (31,747) | (18,775) | (26,588) |
Less: comprehensive income attributable to noncontrolling interests | (159) | (280) | (293) |
Comprehensive loss attributable to ORBCOMM Inc. | $ (31,906) | $ (19,055) | $ (26,881) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net loss | $ (33,825) | $ (18,132) | $ (25,939) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Change in allowance for doubtful accounts | 5,324 | 2,008 | 3,426 |
Depreciation and amortization | 50,736 | 50,702 | 49,684 |
Change in the fair values of acquisition-related contingent consideration | (2,063) | (8,035) | |
Amortization and write-off of deferred debt fees | 3,580 | 776 | 776 |
Loss on early extinguishment of debt | 8,800 | ||
Stock-based compensation | 5,331 | 6,180 | 7,910 |
Foreign exchange loss (gain) | 1,142 | (143) | 59 |
Deferred income taxes | (1,618) | (1,213) | (1,491) |
Other | 2,223 | 2,240 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 4,535 | (5,156) | (14,040) |
Inventories | 10,021 | (5,607) | 8,277 |
Prepaid expenses and other assets | 3,810 | 2,432 | 3,994 |
Accounts payable and accrued liabilities | (8,307) | 1,093 | (14,876) |
Deferred revenue | (1,250) | (783) | 2,708 |
Other liabilities | (2,085) | (2,250) | (999) |
Net cash provided by operating activities | 48,417 | 30,084 | 11,454 |
Cash flows from investing activities: | |||
Capital expenditures | (18,490) | (21,067) | (22,198) |
Capital expenditures associated with the subscription model | (1,049) | ||
Other | 650 | ||
Net cash used in investing activities | (19,539) | (21,067) | (21,548) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 27,967 | ||
Proceeds from issuance of long-term debt | 200,000 | ||
Payment under revolving credit facility | (15,000) | (14,000) | |
Proceeds from revolving credit facility | 35,000 | 14,000 | |
Cash paid for debt issuance costs | (3,155) | ||
Proceeds from paycheck protection program | 7,588 | ||
Principal payment under paycheck protection program | (7,588) | ||
Proceeds from employee stock purchase plan | 798 | 1,076 | 1,194 |
Purchases of common stock under share repurchase program | (2,527) | (9,444) | |
Principal payment of long-term debt | (250,000) | ||
Cash paid for debt call premium | (8,800) | ||
Net cash (used in) provided by financing activities | (43,684) | (8,368) | 29,161 |
Effect of exchange rate changes on cash and cash equivalents | 932 | (157) | (131) |
Net (decrease) increase in cash and cash equivalents | (13,874) | 492 | 18,936 |
Cash and cash equivalents: | |||
Beginning of year | 54,258 | 53,766 | 34,830 |
End of year | 40,384 | 54,258 | 53,766 |
Cash paid for: | |||
Interest | 23,937 | 20,000 | 20,036 |
Income taxes | $ 5,826 | $ 4,810 | $ 5,532 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Series A Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
Beginning balances at Dec. 31, 2017 | $ 246,396 | $ 376 | $ 74 | $ 411,298 | $ 256 | $ (166,245) | $ (96) | $ 733 |
Beginning balances, shares at Dec. 31, 2017 | 37,544 | 74,436,579 | 29,990 | |||||
Vesting of restricted stock units | 1 | $ 1 | ||||||
Vesting of restricted stock units, shares | 581,013 | |||||||
Stock-based compensation | 8,060 | 8,060 | ||||||
Issuance of common stock under employee stock purchase plan | 1,194 | 1,194 | ||||||
Issuance of common stock under employee stock purchase plan, shares | 152,965 | |||||||
Proceeds from offering of common stock | 27,967 | $ 3 | 27,964 | |||||
Proceeds from offering of common stock, shares | 3,450,000 | |||||||
Common stock issued as payment for MPUs | 827 | 827 | ||||||
Common stock issued as payment for MPUs, shares | 81,277 | |||||||
Exercise of SARs | 1 | $ 1 | ||||||
Exercise of SARs, shares | 306,409 | |||||||
Series A convertible preferred stock dividend | $ 18 | (18) | ||||||
Series A convertible preferred stock dividend, shares | 1,898 | |||||||
Net loss | (25,939) | (26,244) | 305 | |||||
Foreign currency translation adjustments | (649) | (637) | (12) | |||||
Ending balances at Dec. 31, 2018 | 257,858 | $ 394 | $ 79 | 449,343 | (381) | (192,507) | $ (96) | 1,026 |
Ending balances, shares at Dec. 31, 2018 | 39,442 | 79,008,243 | 29,990 | |||||
Vesting of restricted stock units | 1 | $ 1 | ||||||
Vesting of restricted stock units, shares | 673,296 | |||||||
Stock-based compensation | 6,822 | 6,822 | ||||||
Issuance of common stock under employee stock purchase plan | 1,076 | 1,076 | ||||||
Issuance of common stock under employee stock purchase plan, shares | 250,432 | |||||||
Stock repurchases | $ (9,444) | $ (2) | (9,442) | |||||
Stock repurchases, shares | (1,930,414) | (1,930,414) | ||||||
Cancellation of treasury stock | (96) | $ 96 | ||||||
Cancellation of treasury stock, shares | (29,990) | (29,990) | ||||||
Common stock cancellation for inthinc Technologies,Inc. working capital debt reduction | $ (525) | (525) | ||||||
Common stock issued as payment for MPUs | 503 | 503 | ||||||
Common stock issued as payment for MPUs, shares | 60,885 | |||||||
Exercise of SARs, shares | 29,999 | |||||||
Series A convertible preferred stock dividend | $ 12 | (12) | ||||||
Series A convertible preferred stock dividend, shares | 1,182 | |||||||
Net loss | (18,132) | (18,423) | 291 | |||||
Foreign currency translation adjustments | (643) | (632) | (11) | |||||
Ending balances at Dec. 31, 2019 | 237,516 | $ 406 | $ 78 | 447,681 | (1,013) | (210,942) | 1,306 | |
Ending balances, shares at Dec. 31, 2019 | 40,624 | 78,062,451 | ||||||
Vesting of restricted stock units | 1 | $ 1 | ||||||
Vesting of restricted stock units, shares | 598,835 | |||||||
Stock-based compensation | 5,374 | 5,374 | ||||||
Issuance of common stock under employee stock purchase plan | 798 | 798 | ||||||
Issuance of common stock under employee stock purchase plan, shares | 309,783 | |||||||
Stock repurchases | $ (2,527) | $ (1) | (2,526) | |||||
Stock repurchases, shares | (836,904) | (836,904) | ||||||
Exercise of SARs, shares | 49,641 | |||||||
Net loss | $ (33,825) | (33,940) | 115 | |||||
Foreign currency translation adjustments | 2,078 | 2,034 | 44 | |||||
Ending balances at Dec. 31, 2020 | $ 209,415 | $ 406 | $ 78 | $ 451,327 | $ 1,021 | $ (244,882) | $ 1,465 | |
Ending balances, shares at Dec. 31, 2020 | 40,624 | 78,183,806 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Underwriters' discounts and commissions and offering costs | $ 1,705 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business | Note 1. Organization and Business ORBCOMM Inc. (“ORBCOMM” or the “Company”), a Delaware corporation, is a global provider of industrial Internet of Things (“IoT”) solutions, including network connectivity, devices, device management and web reporting applications. The Company’s industrial IoT products and services are designed to track, monitor, control and enhance security for a variety of assets, such as trailers, trucks, rail cars, sea containers, power generators, fluid tanks, marine vessels, diesel or electric powered generators (“gensets”), oil and gas wells, pipeline monitoring equipment, irrigation control systems and utility meters, in the transportation and supply chain, heavy equipment, fixed asset monitoring and maritime industries, as well as for governments. Additionally, the Company provides satellite Automatic Identification Service (“AIS”) data services to assist in vessel navigation and to improve maritime safety for government and commercial customers worldwide. using multiple network platforms, including its own The Company’s satellite-based customer solution offerings use small, low-power, mobile satellite subscriber communicators for remote asset connectivity, and the Company’s terrestrial-based solutions utilize cellular data modems with subscriber identity modules (“SIMs”). The Company also resells service using the two-way Inmarsat plc satellite network to provide higher bandwidth, low-latency satellite products and services, leveraging the Company’s IsatDataPro technology. The Company’s customer solutions provide access to data gathered over these systems via connections to other public or private networks, including the Internet. The Company is dedicated to providing what it believes are the most versatile, leading-edge industrial IoT solutions in its markets to enable its customers to run their businesses more efficiently. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of presentation The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). In the opinion of management, the financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018 include all adjustments (including normal recurring accruals) necessary for a fair presentation of the consolidated financial position, results of operations, comprehensive income and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and investments in immaterial variable interest entities in which the Company is determined to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. The portions of majority-owned subsidiaries that the Company does not own are reflected as noncontrolling interests on the consolidated balance sheets. Investments Investments in entities over which the Company has the ability to exercise significant influence but does not have a controlling interest are accounted for under the equity method of accounting. The Company considers several factors in determining whether it has the ability to exercise significant influence with respect to investments, including, but not limited to, its direct and indirect ownership level in the voting securities, active participation on the board of directors, approval of operating and budgeting decisions and other participatory and protective rights. Under the equity method, the Company’s proportionate share of the net income or loss of such investees is reflected in the Company’s consolidated results of operations. When the Company does not exercise significant influence over the investee, the investment is accounted for under the cost method. Although the Company owns interests in companies that it accounts for pursuant to the equity method, the investments in those entities had no carrying value as of December 31, 2020 and 2019. The Company has no guarantees or other funding obligations to those entities, and the Company had no equity in the earnings or losses of those investees for the years ended December 31, 2020, 2019 and 2018. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses at the date of the consolidated financial statements and during the reporting periods, respectively, and to disclose contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The most significant estimates relate to recognition of revenue, allowances over accounts receivable, reserves over inventory balances, the recognition and measurement of assets acquired and liabilities assumed in business combinations at fair value, assessment of indicators of goodwill impairment, determination of useful lives of the Company’s satellite network and other equipment and intangible assets, the assessment of expected cash flows used in evaluating long-lived assets, including intangible assets, for impairment, the calculation of capitalized development costs, the assessment of the Company’s incremental borrowing rate used to determine its right - of - use asset s and lease liabilit ies , accounting for uncertainties in income tax positions, estimates associated with warranty costs and loss contingencies, estimates related to the recognition and subsequent valuation of contingent considerations and the value of securities underlying stock-based compensation. Business combinations The Company accounts for business combinations pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805 “Business Combinations,” which requires that assets acquired and liabilities assumed be recorded at their respective fair values on the date of acquisition. The fair value of the consideration paid is assigned to the underlying net assets of the acquired business based on their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is allocated to goodwill. The purchase price allocation process requires the Company to make significant assumptions and estimates in determining the purchase price and the fair value of assets acquired and liabilities assumed at the acquisition date. The Company’s assumptions and estimates are subject to refinement and, as a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon conclusion of the measurement period, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. The Company’s consolidated financial statements and results of operations reflect an acquired business after the completion of the acquisition. The Company has evaluated pre-acquisition contingencies that existed as of the acquisition dates of the businesses acquired. If any pre-acquisition contingencies acquired as part of an acquisition become probable and estimable, the Company will record such amounts at fair market value in the measurement period, or in the Company’s results of operations after the measurement period, as applicable. Contingent consideration The Company determines the acquisition date fair value of contingent consideration obligations based on a probability-weighted income approach derived from milestone estimates and a probability assessment with respect to the likelihood of achieving performance metrics. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in FASB ASC Topic 820 “Fair Value Measurement.” At each reporting date, the contingent consideration obligation is revalued to estimated fair value and any changes in fair value are reflected as income or expense on the Company’s consolidated statement of operations. Changes in the fair value of the contingent consideration obligations may result from changes in probability assumptions with respect to the likelihood of achieving the various contingent payment obligations. Adverse changes in assumptions utilized in the Company’s contingent consideration fair value estimates could result in an increase in the Company’s contingent consideration obligation and a corresponding charge to operating income. Acquisition-related and integration costs Acquisition-related and integration costs include professional services expenses and identifiable integration costs directly attributable to acquisitions. For the years ended December 31, 2020, 2019 and 2018, the Company incurred acquisition-related and integration costs of $448, $788 and $1,624, respectively. These costs were expensed as incurred and are reflected in acquisition-related and integration costs on the Company’s consolidated statements of operations. Revenue recognition The Company derives recurring service revenues primarily from monthly fees for industrial IoT connectivity services that consist of subscriber-based and recurring monthly usage fees for each subscriber communicator or SIM activated for use on its satellite network, other satellite networks and cellular wireless networks that the Company resells to its resellers, Market Channel Partners (“MCPs”) and Market Channel Affiliates (“MCAs”), and direct customers. In addition, the Company earns recurring service revenues from subscription-based services providing recurring AIS data services to government and commercial customers worldwide. The Company also earns recurring service revenues from activations of subscriber communicators and SIMs, optional separately-priced extended warranty service agreements extending beyond the initial warranty period of typically one year, which are billed to the customer upon shipment of a subscriber communicator, and royalty fees relating to the manufacture of subscriber communicators under a manufacturing agreement. Service revenues derived from usage fees are generally based upon the data transmitted by a customer, the overall number of subscriber communicators and/or SIMs activated by each customer, and whether the Company provides services through its value-added portal. Using the output method, these service revenues are recognized over time, as services are rendered, or at a point in time, based on the contract terms. AIS service revenues are generated over time from monthly subscription-based services supplying AIS data services to government and commercial customers worldwide, using the output method. Revenues from the activation of both subscriber communicators and SIMs are initially recorded as deferred revenues and are, thereafter, recognized on a ratable basis using a time-based output method, generally over three years , the estimated life of the subscriber communicator. Revenues from separately - priced extended warranty service agreements extending beyond the initial warranty period of typically one year , are initially recorded as deferred revenues and are, thereafter, recognized on a ratable basis using a time-based output method , generally over two to five years . The Company earns other service revenues from installation services and engineering, technical and management support services . Revenues generated from installation services are recognized at a point in time when the services are completed. Revenues generated from engineering, technical and management support services to customers are recognized over time as the service is provided. The Company also generates other service revenues through the sale of software licenses to its customers, which are recognized at a point in time when the license is provided to the customer. Product sales are derived from sales of complete industrial IoT subscriber communicators, including telematics devices, modems, or cellular wireless SIMs (for the Company’s terrestrial-communication services) to the Company’s resellers (i.e., MCPs and MCAs) and direct customers. Product sales are recognized at a point in time when title transfers, when the products are shipped, or when customers accept the products, depending on the specific contractual terms. Sales of subscriber communicators and SIMs are not subject to return and title and risk of loss pass to the customer generally at the time of shipment. Amounts received prior to the performance of services under customer contracts are recognized as deferred revenues and revenue recognition is deferred until such time that all revenue recognition criteria have been met. Deferred revenue as of December 31, 2020 and 2019 consisted of the following: December 31, 2020 2019 Service activation fees $ 2,094 $ 3,007 Prepaid services 6,123 6,423 Extended warranty revenues 1,179 1,206 9,396 10,636 Less current portion (5,238 ) (3,865 ) Long-term portion $ 4,158 $ 6,771 During the years ended December 31, 2020 and 2019, the Company recognized revenue of $6,156 and $5,896, respectively, which was included as deferred revenue as of December 31, 2019 and 2018. The Company’s program with Maersk Lines, through its contract with AT&T Services, Inc., expired on December 31, 2019. The remaining deferred revenue of approximately $1,900 associated with this contract was recognized as recurring service revenues during the year ended December 31, 2020 as an immaterial prior period adjustment. The contract was assumed as part of the WAM Technologies, LLC acquisition in 2015. Shipping costs billed to customers are included in product sales and the related costs are included as cost of product sales on the Company’s consolidated statements of operations. The Company generates revenue from leasing arrangements of subscriber communicators, under FASB ASC Topic 842 “Leases” (“ASC 842”), using the estimated selling prices for each of the deliverables recognized. Product and installation revenues associated with these arrangements are recognized upon shipment or installation of the subscriber communicator, depending on the specific contractual terms. Service and warranty revenues are recognized on an accrual basis, as services are rendered, or on a cash basis, if collection from the customer is not reasonably assured at contract initiation. The following table summarizes the components of revenue from contracts with customers, as well as revenue recognized under ASC 842: Year Ended December 31, 2020 2019 2018 Revenue from contracts with customers: Recurring service revenues $ 150,048 $ 155,284 $ 148,367 Other service revenues 7,771 5,310 5,222 Total service revenues 157,819 160,594 153,589 Product sales 87,311 105,660 117,018 Total revenue from contracts with customers 245,130 266,254 270,607 Product sales recognized under ASC 842 3,336 5,759 5,533 Total revenues $ 248,466 $ 272,013 $ 276,140 Revenue recognition for arrangements with multiple performance obligations The Company enters into contracts with its customers that include multiple performance obligations, which typically include subscriber communicators, monthly usage fees and optional extended warranty service agreements. The Company evaluates each item to determine whether it represents a promise to transfer a distinct good or service to the customer and therefore is a separate performance obligation. If a contract is separated into more than one performance obligation, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative stand-alone selling price of each performance obligation. The Company uses an observable price to determine the stand-alone selling price for each separate performance obligation when sold on its own or a cost-plus margin approach when an observable price is not available. If an arrangement provided to a customer has a significant and incremental discount on future revenue, such discount is considered a performance obligation and a proportionate amount of the discount would be allocated to each element based on the relative stand-alone selling price of each element, regardless of the discount. The Company has determined that arrangements provided to its customers do not include significant and incremental discounts. Cost of revenues The Company operates its own LEO satellite network and accompanying ground equipment, including fifteen gateway earth stations (“GESs”), three AIS data reception earth stations, and three regional gateway control centers. The Company’s proprietary satellite-based communications system is typically characterized by high initial capital expenditures and relatively low marginal costs for providing service. The Company resells network connectivity for two other satellite networks and seven terrestrial network partners. Reselling network connectivity typically involves a cost for each device connected to the network system and the amount paid to each provider will vary. Cost of services is comprised of expenses to operate the Company’s network, such as payroll and related costs, including stock-based compensation, installation costs, and usage fees to third-party networks. The Company primarily sells industrial IoT telematics devices and modems that the Company designs and builds with contract manufacturers. Cost of product sales includes the purchase price of subscriber communicators and SIMs sold, costs of warranty obligations, shipping charges, as well as operational costs of the Company’s employees and inventory management to fulfill customer orders. Foreign currency translation The Company has foreign operations where the functional currency is the local currency. For these operations, assets and liabilities are translated using the end-of-period exchange rates and revenues, expenses and cash flows are translated using average rates of exchange for the period. Equity is translated at the rate of exchange at the date of the equity transaction. Translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses related to assets and liabilities that are denominated in a currency other than the functional currency are included in other income (expense) on the consolidated statements of operations. Foreign currency translation gains and losses related to operational expenses denominated in a currency other than the functional currency are included in selling, general and administrative (“SG&A”) expenses on the consolidated statements of operations. For the years ended December 31, 2020, 2019 and 2018, the Company recorded a loss on foreign currency of $1,741, $84, and $76, respectively. Fair value of financial instruments The Company has no financial assets or liabilities that are measured at fair value on a recurring basis. However, if certain triggering events occur, the Company is required to evaluate the non-financial assets for impairment and any resulting asset impairment would require that a non-financial asset be recorded at fair value. FASB ASC Topic 820 “Fair Value Measurement Disclosure” prioritizes inputs used in measuring fair value into a hierarchy of three levels: Level 1- unadjusted quoted prices for identical assets or liabilities traded in active markets; Level 2- inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3- unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. The carrying amounts of the Company’s financial instruments, including cash, accounts receivable and accounts payable approximated their fair values due to the short-term nature of these items. The carrying value of the Company’s Term Facility, as defined below, approximated its fair value as the debt is at variable interest rates. The fair value of the Senior Secured Notes, as defined below, was based on observable relevant market information. Fluctuation between the carrying amount and the fair value of the Senior Secured Notes for the period presented was associated with changes in market interest rates. On December 2, 2020, the Company redeemed all $220,000 outstanding principal amount of its Senior Secured Notes. Refer to “Note 10 – Notes Payable” for more information. The carrying amounts and fair values of the Company’s Senior Secured Notes are shown in the following table: December 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Senior Secured Notes $ — $ — $ 250,000 $ 241,875 The fair value of the note payable-related party, $1,400 book value at December 31, 2020, has a de minimis value. Cash and cash equivalents The Company considers all liquid investments with original maturities of three months or less, at the time of purchase, to be cash equivalents. At December 31, 2020 and 2019, the Company had a cash and cash equivalents balance of $40,384 and $54,258, respectively. Concentration of risk The Company’s customers are primarily commercial organizations. Accounts receivable are generally unsecured. Accounts receivable are due in accordance with payment terms set forth in contracts negotiated with customers. Amounts due from customers are stated net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts are past due, the customer’s current ability to pay its obligations to the Company and the condition of the general economy and the industry as a whole. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The Company writes off accounts receivable when they are deemed uncollectible. For the year ended December 31, 2020, Carrier Corporation comprised 10.2% of the Company’s consolidated total revenues. There were no customers who generated revenues greater than 10% of the Company’s consolidated total revenues for the years ended December 31, 2019 and 2018. One There were no customers who generated accounts receivable greater than 10% of the Company’s consolidated accounts receivable as of December 31, 2019. The Company is dependent on one vendor, Sanmina Corporation (“Sanmina”), a contract manufacturer with significant operations in Mexico, for the manufacture of subscriber communicators that the Company designs and sells. For the years ended December 31, 2020 and 2019, approximately $76,505, or 84.4%, and $75,068, or 67.4%, respectively, of the Company’s product sales was generated from the sale of the Company’s core products produced by Sanmina. As of December 31, 2020, the Company did not maintain in-orbit insurance coverage for its ORBCOMM Generation 1 or ORBCOMM Generation 2 satellites to address the risk of potential systemic anomalies, failures or catastrophic events affecting its satellite constellation. Inventories Inventories are stated at the lower of cost or net realizable value, determined on a weighted average cost basis. At December 31, 2020 and 2019, inventory, net of inventory obsolescence, consisted primarily of finished goods and purchased parts to be utilized by its contract manufacturer totaling $23,529 and $33,379, respectively, and raw materials totaling $6,458 and $6,502, respectively. The Company reviews inventory quantities on hand, evaluates the realizability of inventories and adjusts the carrying value, as necessary, based on forecasted product demand. A provision, recorded in cost of product sales on the Company’s consolidated statements of operations, is made for potential losses on slow-moving and obsolete inventories when identified. Satellite network and other equipment, net Satellite network and other equipment, net are stated at cost less accumulated depreciation and amortization. Major renewals and improvements are capitalized, while maintenance and repairs are charged to operations as incurred. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of their useful life or their respective lease term. The following table provides the range of estimated useful lives used for each asset type: Useful Life (years) Satellite network 10 Capitalized software 3-7 Computer hardware 3 Other 2-7 Satellite network includes costs of the constellation of satellites, and the ground and control facilities, consisting of GESs, gateway control centers and the network control center. As of December 31, 2020 and 2019, assets under construction primarily consist of costs associated with acquiring, developing, enhancing and testing software and hardware for internal and external use that have not yet been placed into service. Valuation of long-lived assets Property and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The Company measures recoverability by comparing the carrying amounts of the assets to the projected undiscounted cash flows the assets are expected to generate. An impairment loss is recognized to the extent the carrying values exceed the fair values. The Company’s satellite constellation and related assets are evaluated as a single asset group whenever facts or circumstances indicate that the carrying values may not be recoverable. If indicators of impairment are identified, recoverability of long-lived assets is measured by comparing their carrying amounts to the projected cash flows the assets are expected to generate. Determining whether an impairment has occurred typically requires the use of significant estimates and assumptions, including in the forecasting of future cash flows, determination of the asset group, determination of the remaining useful life of the primary asset, the allocation of cash flows to assets or asset groups, and, if required, estimates of fair values for those assets or asset groups. If a satellite were to fail while in orbit, the resulting loss would be charged to expense in the period it is determined that the satellite is not recoverable. The amount of any such loss would be reduced to the extent of insurance proceeds, if any, estimated to be received. There was no impairment loss recorded for the years ended December 31, 2020, 2019 and 2018. See “Note 6 – Satellite Network and Other Equipment, Net” for additional details relating to the impairment of these satellites. Capitalized development costs for internal and external use The Company capitalizes the costs of acquiring, developing and testing software and hardware to meet the Company’s internal needs and for products and services that have not yet been placed into service. Capitalization of costs associated with software obtained or developed for internal use commences when both the preliminary project stage is completed and management has authorized further funding for the project, based on a determination that it is probable that the project will be completed and used to perform the function intended. Capitalized costs include only (1) the external direct cost of materials and services consumed in developing or obtaining internal-use software, (2) payroll and payroll-related costs for employees who are directly associated with, and devote time to, a qualifying project, and (3) certain external software development costs upon the establishment of technological feasibility. Technological feasibility is considered to have occurred upon completion of either a detailed program design or a working model. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. Internal-use software costs are amortized once the software is placed in service using the straight-line method over periods ranging from three to seven years. Product and service development costs are amortized over the estimated life of the product once it has been released for commercial sale. Goodwill Goodwill represents the excess of the purchase price over the underlying net tangible and intangible assets of the Company’s acquisitions. Goodwill is not amortized, but is tested for impairment on an annual basis and between annual tests whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill is tested at the reporting unit level, which is defined as an operating segment or one level below the operating segment. The Company operates in one reportable segment which is its only reporting unit. The Company tests for an indication of goodwill impairment annually on November 30 or when an indicator of impairment exists, by comparing the fair value of the reporting unit to its carrying value. If there is an indication of impairment, the Company performs a “step two” test to measure the impairment. There was no impairment of goodwill for the years ended December 31, 2020, 2019 and 2018. Intangible assets Intangible assets that are not considered to have an indefinite life are amortized over their useful lives. Intangible assets include patents and technology, customer lists and trademarks. Intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. Impairment of long-lived assets The Company reviews its long-lived assets and amortizable intangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In connection with this review, the Company also re-evaluates the periods of depreciation and amortization for these assets. The Company recognizes an impairment loss when the sum of the future undiscounted net cash flows expected to be realized from the asset is less than its carrying amount. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value, which is determined using the projected discounted future net cash flows, using the appropriate discount rate. Warranty costs The Company accrues for warranty coverage on product sales estimated at the time of sale based on historical costs to repair or replace products for customers compared to historical product sales. The warranty accrual is included in accrued liabilities on the Company’s consolidated balance sheets. Separately-priced extended warranty coverage is recorded as warranty revenue over the term of the extended warranty coverage and the related warranty costs are recorded as incurred during the coverage period. Warranty coverage that includes additional services, such as repairs and maintenance of the product, is treated as a separate performance obligation and the related warranty and repairs/maintenance costs are recorded as incurred. Income taxes The Company estimates its income taxes separately for each tax jurisdiction in which it conducts operations. This process involves estimating actual current tax expense and assessing temporary differences resulting from the different treatment of items between book and tax which results in deferred tax assets and liabilities. The Company recognizes in income a change in tax rates on deferred tax assets and liabilities in the period that includes the enactment date. Valuation allowances are established when realization of deferred tax assets is not considered more likely than not. The Company recognizes the effect of tax law changes in the period of enactment. Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of the Company’s deferred tax liabilities or the valuations of the Company’s deferred tax assets over time. The Company’s accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. In determining whether the realization of deferred tax assets is considered to be more likely than not, the Company assesses the realizability of the deferred tax assets on a jurisdiction-by-jurisdiction basis. This assessment is dependent upon past operating results and projected profitability. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence is objectively verified. The Company accounts for uncertainty in income tax positions using a two-step approach. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is to measure the tax position at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Loss contingencies The Company accrues for costs relating to litigation, claims and other contingent matters when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Actual amounts paid may differ from amounts estimated, and such differences will be charged to operations in the period in which the final determination of the liability is made. Stock-based compensation The Company measures and recognizes stock-based compensation expense for equity-based payment awards made to employees and directors based on estimated fair values on the date of grant. For equity-based payment awards, the Company recognizes compensation expense over the service period, net of estimated forfeitures using the straight-line method. For awards with non-market performance conditions, an evaluation is made at the grant date and future periods as to the likelihood of the performance criteria being met. Compensation expense is adjusted for changes in the likelihood of achieving the performance condition until the vesting date. For liability-based awards with market perf |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3. Acquisitions 2017 Business Development Blue Tree Systems Limited On October 2, 2017, pursuant to a Share Purchase Agreement entered into by ORBCOMM Technology Ireland Limited, a wholly-owned subsidiary of the Company, and Blue Tree Systems Investment Limited, Investec Ventures Ireland Limited and certain individual sellers (collectively, the “Sellers”), the Company completed the acquisition of 100% of the outstanding shares of Blue Tree Systems Limited, for an aggregate consideration of (i) $34,331 in cash; (ii) issuance of 191,022 shares of the Company’s common stock, valued at $10.47 per share, which reflected the Company’s common stock closing price one business day prior to the closing date; and (iii) additional consideration up to $5,750 based on Blue Tree Systems Limited achieving certain operational objections. Contingent Consideration Additional consideration was conditionally due to the Sellers upon achievement of certain financial milestones through December 2018. The fair value measurement of the contingent consideration obligation is determined using Level 3 unobservable inputs supported by little or no market activity based on the Company’s own assumptions. The estimated fair value of the contingent consideration was determined based on the Company’s preliminary estimates using the probability-weighted discounted cash flow approach. The financial milestone for this contingent consideration has not been met, and therefore, the Company recorded a reduction of the contingent liability of $776 in SG&A expenses on the consolidated statement of operations for the year ended December 31, 2018. inthinc Technology Solutions, Inc. On June 9, 2017, pursuant to the asset purchase agreement (the “Asset Purchase Agreement”) entered into by the Company and inthinc, Inc., inthinc Technology Solutions, Inc., tiwi, Inc., inthinc Telematics, Inc., DriveAware, Inc., inthinc Chile, SP and inthinc Investors, L.P. (collectively, “Inthinc”), the Company completed the acquisition of Inthinc for an aggregate consideration of (i) $34,236 in cash on a debt-free, cash-free basis; (ii) issuance of 76,796 shares of the Company’s common stock, valued at $9.95 per share, which reflected a 20-trading day average price of the Company’s stock ending June 8, 2017; and (iii) additional contingent consideration of up to $25,000, subject to certain operational milestones, payable in stock or a combination of cash and stock at the Company’s election. Contingent Consideration Additional consideration was conditionally due to the Inthinc sellers upon achievement of certain financial milestones through June 2019. The fair value measurement of the contingent consideration obligation was determined using Level 3 unobservable inputs supported by little or no market activity and based on the Company’s own assumptions. The estimated fair value of the contingent consideration was determined based on the Company’s estimates using the probability-weighted discounted cash flow approach. All four financial milestones for this additional consideration were not met. Therefore, the Company recorded a reduction of the contingent liability of $2,063 and $7,250 in SG&A expenses on the consolidated statements of operations for the years ended December 31, 2019 and 2018, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 4. Stock-Based Compensation On April 20, 2016, the stockholders of the Company approved the ORBCOMM Inc. 2016 Long-Term Incentives Plan (the “2016 LTIP”). The 2016 LTIP replaces the Company’s 2006 Long-Term Incentive Plan (the “2006 LTIP”). The number of shares authorized for delivery under the 2016 LTIP is 6,949,400 shares, including 1,949,400 shares that remained available under the 2006 LTIP as of February 17, 2016, plus any shares previously subject to awards under the 2006 LTIP that are cancelled, forfeited or lapse unexercised after that date. As of December 31, 2020, there were 216,658 shares available for grant under the 2016 LTIP. For the years ended December 31, 2020, 2019 and 2018, the Company recognized stock-based compensation expense of $5,331, $6,180, and $7,910, respectively. For the years ended December 31, 2020, 2019 and 2018, the Company capitalized stock-based compensation of $476, $650, and $503, respectively. The Company has not recognized, and currently does not expect to recognize in the foreseeable future, any tax benefit related to stock-based compensation as a result of the full valuation allowance on its net deferred tax assets and its net operating loss carryforwards generated in the U.S. The following table summarizes the components of stock-based compensation expense on the consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Cost of services $ 457 $ 471 $ 666 Cost of product sales 106 126 162 Selling, general and administrative 3,913 4,637 6,065 Product development 855 946 1,017 Total $ 5,331 $ 6,180 $ 7,910 As of December 31, 2020, the Company had unrecognized compensation costs for all share-based payment arrangements totaling $6,841. Time-Based Stock Appreciation Rights A summary of the Company’s time-based stock appreciation rights (“SARs”) for the year ended December 31, 2020 is as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2020 2,125,294 $ 5.35 Granted — — Exercised (318,000 ) 2.46 Forfeited or expired (4,450 ) 2.46 Outstanding at December 31, 2020 1,802,844 $ 5.79 2.53 $ 4,160 Exercisable at December 31, 2020 1,802,844 $ 5.79 2.53 $ 4,441 Vested and expected to vest at December 31, 2020 1,802,844 $ 5.79 2.53 $ 4,160 For the years ended December 31, 2020, 2019 and 2018, the Company recorded stock-based compensation expense of $0, $146 and $187 related to these time-based SARs, respectively. As of December 31, 2020, there was no unrecognized compensation cost related to these SARs expected to be recognized. There were no time-based SARs granted during the years ended December 31, 2020, 2019 and 2018. The intrinsic value of the time-based SARs exercised during the year ended December 31, 2020 was $287. Performance-Based Stock Appreciation Rights A summary of the Company’s performance-based SARs for the year ended December 31, 2020 is as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2020 233,496 $ 6.01 Granted — — Exercised (154,575 ) 3.00 Forfeited or expired — — Outstanding at December 31, 2020 78,921 $ 3.16 1.95 $ 855 Exercisable at December 31, 2020 78,921 $ 3.16 1.95 $ 855 Vested and expected to vest at December 31, 2020 78,921 $ 3.16 1.95 $ 855 For the years ended December 31, 2020, 2019 and 2018, the Company did not record stock-based compensation expense related to these performance-based SARs. As of December 31, 2020, there was no unrecognized compensation cost related to these SARs expected to be recognized. There were no performance-based SARs granted during the years ended December 31, 2020, 2019 and 2018. The intrinsic value of the performance-based SARs exercised during the year ended December 31, 2020 was $268. The fair value of each time-based and performance-based SAR award is estimated on the date of grant using the Black-Scholes option pricing model with the assumptions described below. For the period indicated, the expected volatility was based on the Company’s historical volatility over the expected terms of the SAR awards. Estimated forfeitures were based on voluntary and involuntary termination behavior, as well as an analysis of actual forfeitures. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the SAR grants. The Company did not grant time-based or performance-based SARs during the years ended December 31, 2020, 2019 and 2018. Time-Based Restricted Stock Units A summary of the Company’s time-based restricted stock units (“RSUs”) for the year ended December 31, 2020 is as follows: Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2020 1,265,434 $ 6.16 Granted 586,208 5.71 Vested (476,387 ) 9.07 Forfeited or expired (77,982 ) 5.95 Balance at December 31, 2020 1,297,273 $ 4.90 For the years ended December 31, 2020, 2019 and 2018, the Company recorded stock-based compensation expense related to these time-based RSUs of $3,331, $3,972 and $4,627, respectively. As of December 31, 2020, $3,854 of total unrecognized compensation cost related to these RSUs is expected to be recognized through September 2023. Performance-Based Restricted Stock Units A summary of the Company’s performance-based RSUs for the year ended December 31, 2020 is as follows: Shares Weighted-Average Grant Date Fair Value Balance at January 1, 2020 1,067,809 $ 6.28 Granted 463,890 6.14 Vested (157,819 ) 9.01 Forfeited or expired (222,968 ) 7.90 Balance at December 31, 2020 1,150,912 $ 4.70 For the years ended December 31, 2020, 2019 and 2018, the Company recorded stock-based compensation expense of $1,342, The fair values of the time-based and performance-based RSU awards are based upon the closing stock price of the Company’s common stock on the date of grant. Market Performance Units The Company grants Market Performance Units (“MPUs”) to its senior executives based on stock price performance over a three-year continue their employment through the dates the Compensation Committee has determined that the targets have been achieved. three-year As of December 31, 2020, the Compensation Committee determined that the fiscal year 2020 stock price performance targets were not achieved for the 2020, 2019 and 2018 MPUs with respect to the 2020 performance year. As the MPUs contain both performance and service conditions, they have been treated as a series of three separate awards, or tranches, for purposes of recognizing stock-based compensation expense. The Company recognizes stock-based compensation expense on a tranche-by-tranche basis over the requisite service period for that specific tranche. The Company estimated the fair values of the MPUs using a Monte Carlo simulation model that used the following assumptions: Year Ended December 31, 2020 2019 2018 Risk-free interest rate 0.10% to 0.17% 1.59% to 1.62% 2.46% to 2.63% Estimated volatility factor 65.0% .0 40.0% 29.0% Expected dividends None None None For the years ended December 31, 2020, 2019 and 2018, the Company recorded stock-based compensation expense related to these MPUs of $424, $9 and $346, respectively. As of December 31, 2020, the Company recorded $352 and $72 in accrued liabilities and other non-current liabilities related to the MPUs, respectively, on the consolidated balance sheet. As of December 31, 2019, the Company recorded $0 and $28 in accrued liabilities and other non-current liabilities related to these MPUs, respectively, on the consolidated balance sheet. In January 2019, the Company issued 60,885 shares of common stock as payment in connection with MPUs for achieving the fiscal year 2018, 2017 and 2016 MPU awards’ stock performance targets with respect to the 2018 performance year. Employee Stock Purchase Plan On February 16, 2016, the Company’s Board of Directors adopted the ORBCOMM Inc. Employee Stock Purchase Plan (“ESPP”), which was approved by the Company’s shareholders on April 20, 2016. Under the terms of the ESPP, 5,000,000 shares of the Company’s common stock are available for issuance and eligible employees may have up to 10% of their gross pay deducted from their payroll, up to a maximum of $25 per year, to purchase shares of ORBCOMM common stock at a discount of up to 15% of its fair market value, subject to certain conditions and limitations. Purchases of shares of ORBCOMM common stock under the ESPP are made twice a year at six-month intervals. For the years ended December 31, 2020, 2019 and 2018, the Company recorded stock-based compensation expense of $234, $284 and $272, respectively, related to the ESPP. For the year ended December 31, 2020, 166,580 shares and 143,203 shares of the Company’s common stock were purchased under the ESPP at a price of $2.58 per share, respectively. For the year ended December 31, 2019, 136,729 shares and 113,703 shares of the Company’s common stock were purchased under the ESPP at a price of $3.45 and $5.68 per share, respectively. |
Net Income (Loss) Attributable
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders | Note 5. Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders The Company accounts for earnings per share (“EPS”) in accordance with ASC Topic 260 “Earnings Per Share” (“ASC 260”) and related guidance, which requires two calculations of EPS to be disclosed: basic and diluted. The numerator in calculating basic and diluted EPS is an amount equal to the net income (loss) attributable to ORBCOMM Inc. common stockholders for the periods presented. The denominator in calculating basic EPS is the weighted average shares outstanding for the respective periods. The denominator in calculating diluted EPS is the weighted average shares outstanding, plus the dilutive effect of stock option grants, unvested SAR and RSU grants and shares of Series A convertible preferred stock for the respective periods. The following table sets forth the basic and diluted EPS calculations for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Net loss attributable to ORBCOMM Inc. common stockholders $ (33,940 ) $ (18,435 ) $ (26,262 ) Weighted average number of common shares outstanding: Basic number of common shares outstanding 78,101 79,259 77,603 Dilutive effect of grants of stock options, unvested SARs and RSUs and shares of Series A convertible preferred stock — — — Diluted number of common shares outstanding 78,101 79,259 77,603 Earnings per share: Basic $ (0.43 ) $ (0.23 ) $ (0.34 ) Diluted $ (0.43 ) $ (0.23 ) $ (0.34 ) The computation of net loss attributable to ORBCOMM Inc. common stockholders for the years ended December 31, 2020, 2019 and 2018 is as follows: Year Ended December 31, 2020 2019 2018 Net loss attributable to ORBCOMM Inc. $ (33,940 ) $ (18,423 ) $ (26,244 ) Preferred stock dividends on Series A convertible preferred stock — (12 ) (18 ) Net loss attributable to ORBCOMM Inc. common stockholders $ (33,940 ) $ (18,435 ) $ (26,262 ) |
Satellite Network and Other Equ
Satellite Network and Other Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Satellite Network and Other Equipment, Net | Note 6. Satellite Network and Other Equipment, Net Satellite network and other equipment, net consisted of the following: December 31, 2020 2019 Land $ 381 $ 381 Satellite network 200,279 198,746 Capitalized software 96,261 83,320 Computer hardware 7,351 6,528 Other 17,816 7,787 Assets under construction 12,745 13,832 334,833 310,594 Less: accumulated depreciation and amortization (207,296 ) (165,041 ) $ 127,537 $ 145,553 During the years ended December 31, 2020, 2019 and 2018, the Company capitalized internal costs attributable to the design, development and enhancement of the Company’s products and services that have not yet been placed into service and internal-use software in the amounts of $14,393, $13,945 and $12,817, respectively. Depreciation and amortization expense for the years ended December 31, 2020, 2019 and 2018 was $38,015, $37,717 and $36,609, respectively, including amortization of internal-use software of $3,307, $3,117 and $3,433 for the years ended December 31, 2020, 2019 and 2018, respectively. For the years ended December 31, 2020 As of December 31, 2020 and 2019, assets under construction primarily consisted of costs associated with acquiring, developing, enhancing and testing software and hardware for internal and external use that have not yet been placed into service. In October 2018, the Company experienced a communication issue with one ORBCOMM Generation 2 (“OG2”) satellite. The Company remained in operational control of this satellite up until November 2020. In February 2021, the Company briefly regained operational control of this OG2 satellite. The Company’s engineering and operations teams continue efforts to re-establish operational control of this OG2 satellite and are developing new software in an attempt to restore AIS and/or messaging services. If the Company is unable to regain operational control and restoration of AIS and/or messaging services on this OG2 satellite, the Company would write off its net book value of approximately $6,979 as of December 31, 2020. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the estimated fair values of the underlying net tangible and intangible assets. Goodwill is allocated to the Company’s one reportable segment which is its only reporting unit. During the years ended December 31, 2020 and 2019, there were no changes to goodwill. Intangible assets, net consisted of the following: December 31, 2020 December 31, 2019 Useful life (years) Cost Accumulated amortization Net Cost Accumulated amortization Net Customer lists 5 - 15 $ 113,357 $ (60,934 ) $ 52,423 $ 113,357 $ (50,457 ) $ 62,900 Patents and technology 3 - 10 23,424 (15,288 ) 8,136 23,424 (13,044 ) 10,380 Trade names and trademarks 1 - 2 3,003 (3,003 ) — 3,003 (3,003 ) — $ 139,784 $ (79,225 ) $ 60,559 $ 139,784 $ (66,504 ) $ 73,280 At December 31, 2020, the weighted-average amortization period for the intangible assets was 10.5 years. At December 31, 2020, the weighted-average amortization periods for customer lists, patents and technology and trade names and trademarks were 10.9, 9.3 and 1.2 years, respectively. Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $12,721, $12,985 and $13,075, respectively. Estimated future amortization expense for intangible assets is as follows: December 31, 2020 2021 $ 12,225 2022 11,686 2023 11,408 2024 11,122 2025 4,536 Thereafter 9,582 $ 60,559 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Note 8. Accrued Liabilities Accrued liabilities consisted of the following: December 31, December 31, 2020 2019 Accrued compensation and benefits $ 9,486 $ 7,751 Accrued warranty obligations 6,398 6,526 Corporate income tax payable 386 2,341 Accrued VAT payable 2,189 2,614 Accrued satellite network and other equipment 591 247 Accrued inventory purchases 298 448 Accrued interest expense — 5,000 Accrued professional fees 393 329 Accrued airtime charges 812 1,818 Short-term lease liability 2,736 2,608 Other accrued expenses 8,618 7,269 $ 31,907 $ 36,951 Changes in accrued warranty obligations consisted of the following: 2020 2019 Balance at January 1, $ 6,526 $ 5,624 Reduction of warranty liabilities assumed in connection with acquisitions — (476 ) Warranty expense 1,416 3,604 Warranty charges and other adjustments (1,544 ) (2,226 ) Balance at December 31, $ 6,398 $ 6,526 |
Note Payable-Related Party
Note Payable-Related Party | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Note Payable-Related Party | Note 9. Note Payable — Related Party In connection with the acquisition of a majority interest in Satcom International Group plc in 2005, the Company recorded an indebtedness to OHB Technology A.G. (formerly known as OHB Teledata A.G.), a stockholder of the Company. At December 31, 2020 and 2019, the principal balance of the note payable was €1,138, with a carrying value of $1,400 and $1,275, respectively. The carrying value was based on the note’s estimated fair value at the time of acquisition. The difference between the carrying value and principal balance was amortized to interest expense over the six-year |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 10. Notes Payable Credit Agreement On December 2, 2020, the Company and certain of its subsidiaries entered into a restated and amended credit agreement (the “Credit Agreement”) with JPMorgan Chase, N.A. (“JPMorgan Chase”), as administrative agent and collateral agent, and with the other lenders thereto (the “Lenders”), in connection with the refinancing of the Company’s Senior Secured Notes (as defined below). The Credit Agreement superseded and replaced the Company’s prior credit agreement providing for a $25,000 revolving credit facility described under “Prior Revolving Credit Facility” below. Pursuant to the Credit Agreement, the Lenders provided a senior revolving credit facility (the “Credit Facility”) in an aggregate amount of up to $50,000 and a senior term loan facility (the “Term Facility”) in the aggregate amount of $200,000 ( the “Term Facility” and together with the Revolving Facility, collectively the “Facilities”) and pay certain related fees, expenses and accrued interest. The Facilities mature on December 2, 2025 (the “Maturity Date”). At the Company’s election, loans under the Facilities will bear interest at an alternative base rate or an adjusted London Interbank Offered Rate (“LIBOR”), plus an applicable margin subject to a set pricing grid, with respect to the Revolving Facility and the Term Facility. The Facilities are secured by a first-priority security interest in substantially all the Company’s and its subsidiaries’ assets under an Amended and Restated Security Agreement among the Company, its subsidiaries and JPMorgan Chase (the “Security Agreement”). The Revolving Facility has no scheduled principal amortization until the Maturity Date. The Term Facility has q uarterly installments of principal amortization in an aggregate amount specified for each 12-month period following December 2, 2020, as set forth in the Credit Agreement. Subject to the terms set forth in the Credit Agreement, the Company may borrow, repay and reborrow the Revolving Facility at any time prior to the Maturity Date and may prepay the Term Facility at any time without penalty or premium, subject to limitations as to minimum amounts of prepayments and customary indemnification for breakage costs in the case of prepayment of Eurodollar Loans other than on the last day of a related interest period. The Credit Agreement contains customary representations and warranties, conditions to funding, covenants and events of default. The Credit Agreement contains covenants that, among other things, limit the Company and its subsidiaries’ ability to: (i) incur or guarantee additional indebtedness; (ii) pay dividends, make other distributions or repurchase or redeem capital stock; (iii) prepay, redeem or repurchase certain indebtedness; (iv) make loans and investments; (v) sell, transfer or otherwise dispose of assets; (vi) incur or permit to exist certain liens; (vii) enter into certain types of transactions with affiliates; (viii) enter into agreements restricting the Company’s subsidiaries’ ability to pay dividends; and (ix) consolidate, amalgamate, merge or sell all or substantially all of their assets; subject, in all cases, to certain specified exceptions. Such limitations have various baskets as set forth in the Credit Agreement. On December 2, 2020, the $200,000 proceeds of the Term Facility, the $20,000 borrowings under the Revolving Facility and cash on hand were used to redeem all $220,000 outstanding principal amount of the Senior Secured Notes due 2024, as defined below, at a price equal to (a) 104% of the principal amount of Securities being redeemed plus (b) accrued and unpaid interest In connection with entering into the Credit Agreement, the Company incurred debt issuance costs of approximately $3,155. For the year ended December 31, 2020, amortization of the debt issuance costs was $53. The Company recorded charges of $717 to interest expense on its consolidated statements of operations for the year ended December 31, 2020, related to interest expense and amortization of debt issuance costs associated with the Facilities. At December 31, 2020 , the Company had $ 200,000 outstanding under the Term Facility and $ 20,000 outstanding under the Revolving Facility. As of December 31, 2020 , the Company was in compliance with all financial covenants under the Credit Agreement. Paycheck Protection Program As previously reported, during the quarter ended June 30, 2020, the Company received proceeds from a loan in the amount of $7,588 (the “PPP Loan”) from JPMorgan Chase, as lender, pursuant to the Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company believes that it qualified to apply for and receive the PPP Loan pursuant to the PPP under the provisions of the CARES Act and the Small Business Administration (“SBA”) guidance in effect at that time. In light of the Company entering into the amendment to its Prior Revolving Credit Facility, defined below, to provide it with access to additional liquidity, its improved outlook on its ability to generate cash from operations in the quarter ended June 30, 2020, and the evolving requirements and new guidance issued by the SBA subsequent to its receipt of the PPP Loan, the Company repaid the full amount of the PPP Loan received and any accrued interest on June 25, 2020. The PPP Loan was prepayable at any time prior to the maturity date without any prepayment penalties Senior Secured Notes On April 10, 2017, the Company issued $250,000 aggregate principal amount of 8.0% senior secured notes due 2024 (the “Senior Secured Notes”). The Senior Secured Notes were issued pursuant to an indenture, dated as of April 10, 2017, among the Company, certain of its domestic subsidiaries party thereto (the “Guarantors”) and U.S. Bank National Association, as trustee and collateral agent (the “Indenture”). The Senior Secured Notes were unconditionally guaranteed on a senior secured basis by the Guarantors, and were secured on a first priority basis by (i) pledges of capital stock of certain of the Company’s directly and indirectly owned subsidiaries; and (ii) substantially all of the other property and assets of the Company and the Guarantors, to the extent a first priority security interest was able to be granted or perfected therein, and subject, in all cases, to certain specified exceptions, and an intercreditor agreement with the collateral agent for the Company’s revolving credit facility described below The Company had the option to redeem some or all of the Senior Secured Notes at any time on or after April 1, 2020, at redemption prices set forth in the Indenture plus accrued and unpaid interest, if any, to the date of redemption. The Company also had the option to redeem some or all of the Senior Secured Notes at any time before April 1, 2020 at a redemption price of 100% of the principal amount of the Senior Secured Notes to be redeemed, plus a “make-whole” premium and accrued and unpaid interest, if any, to the date of redemption. In addition, at any time before April 1, 2020, the Company had the right to redeem up to 35% of the aggregate principal amount of the Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to the date of redemption, with the proceeds from certain equity issuances. The Indenture contains covenants that, among other things, limited the Company’s and its restricted subsidiaries’ ability to: (i) incur or guarantee additional indebtedness; (ii) pay dividends, make other distributions or repurchase or redeem capital stock; (iii) prepay, redeem or repurchase certain indebtedness; (iv) make loans and investments; (v) sell, transfer or otherwise dispose of assets; (vi) incur or permit to exist certain liens; (vii) enter into certain types of transactions with affiliates; (viii) enter into agreements restricting the Company’s subsidiaries’ ability to pay dividends; and (ix) consolidate, amalgamate, merge or sell all or substantially all of their assets; subject, in all cases, to certain specified exceptions. Such limitations had various exceptions and baskets as set forth in the Indenture, including the incurrence by the Company and its restricted subsidiaries of indebtedness under potential new credit facilities in the aggregate principal amount at any one time outstanding not to exceed $50,000. In connection with the issuance of the Senior Secured Notes, the Company incurred debt issuance costs of approximately $5,431. For the years ended December 31, 2020 and 2019, amortization of the debt issuance costs was $711 and $776, respectively. The Company recorded charges of $18,959 and $20,776 to interest expense on its consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively, related to interest expense and amortization of debt issuance costs associated with the Senior Secured Notes. Prior Revolving Credit Facility On December 18, 2017, the Company and certain of its subsidiaries entered into a senior secured revolving credit agreement, as amended on June 25, 2020 (the “Prior Revolving Credit Agreement”) with JPMorgan Chase as administrative agent and collateral agent. The Prior Revolving Credit Agreement provided for a revolving credit facility (the “Prior Revolving Credit Facility”) in an aggregate principal amount of up to $25,000 for working capital and general corporate purposes and would mature on December 18, 2022. The Prior Revolving Credit Facility bore interest at an alternative base rate or an adjusted LIBOR, plus an applicable margin of 2.50% in the case of alternative base rate loans and 3.50% in the case of adjusted LIBOR loans. for the Senior Secured Notes. The Prior Revolving Credit Facility ha d no scheduled principal amortization until the maturity date. Subject to the terms set forth in the Prior Revolving Credit Agreement , the Company could borrow, repay and reborrow amounts under the Prior Revolving Credit Facility at any time prior to the maturity date. The Prior Revolving Credit Agreement contained customary representations and warranties, conditions to funding, covenants and events of default. As of December 31, 2020, scheduled mandatory principal repayments of long-term debt in each of the five years ending December 31, 2021 through 2025 were as follows: Years ending December 31, 2021 $ 10,000 2022 15,000 2023 15,000 2024 20,000 2025 160,000 $ 220,000 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11. Stockholders’ Equity Preferred Stock The Company currently has 50,000,000 shares of preferred stock authorized. Series A Convertible Preferred Stock The Company currently has 1,000,000 shares of Series A convertible preferred stock authorized. As part of the purchase price for the acquisition of StarTrak Systems LLC in 2011, the Company issued 183,550 shares of Series A convertible preferred stock, of which 40,624 shares remain outstanding as of December 31, 2020. Key terms of the Series A convertible preferred stock are as follows: Dividends Holders of the Series A convertible preferred stock are entitled to receive a cumulative 4% dividend annually (calculated on the basis of the redemption price of $10.00 per share) payable quarterly in additional shares of the Series A convertible preferred stock. During the years ended December 31, 2020 and 2019, the Company issued dividends in the amounts of 0 and 1,182 shares to the holders of the Series A convertible preferred stock, respectively. As of December 31, 2020, dividends in arrears were $24. Conversion Shares of the Series A convertible preferred stock are convertible into 1.66611 shares of common stock: (i) at the option of the holder at any time or (ii) at the option of the Company beginning six months from the issuance date and if the average closing market price for the Company’s common stock for the preceding twenty consecutive trading days equals or exceeds $11.20 per share. Voting Each share of the Series A convertible preferred stock is entitled to one vote for each share of common stock into which the preferred stock is convertible. Liquidation In the event of any liquidation, sale or merger of the Company, the holders of the Series A convertible preferred stock are entitled to receive prior to and in preference over the holders of the common stock an amount equal to $10.00 per share plus unpaid dividends. Redemption The Series A convertible preferred stock may be redeemed by the Company for an amount equal to the issuance price of $10.00 per share plus all unpaid dividends at any time after two years from the issuance date. Common Stock As of December 31, 2020, the Company has reserved 14,002,136 shares of common stock for future issuances related to employee stock compensation plans. On August 5, 2019, the Company’s Board of Directors authorized a stock repurchase program under which the Company could repurchase up to $25,000 of the Company’s outstanding shares of common stock through open market transactions and privately negotiated transactions, until August 5, 2020. In addition, open market repurchases of common stock could be made pursuant to applicable securities laws and regulations, including Rule 10b-18, as well as Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the years ended December 31, 2020 and 2019, the Company repurchased 836,904 shares and 1,930,414 shares at an average share price of $2.98 and $4.86, respectively. In mid-March 2020, the Company suspended further purchases given the economic uncertainty arising from the novel strain of coronavirus (“COVID-19”) pandemic. On April 10, 2018, the Company completed a public offering of 3,450,000 shares of its common stock, including 450,000 shares sold upon exercise in full of the underwriters’ option to purchase additional shares, at a price of $8.60 per share. The Company received net proceeds of approximately $28,000 after deducting underwriters’ discounts and commissions and offering costs. The Company has an effective shelf registration statement filed with the Securities and Exchange Commission, registering up to $100,000 of debt and/or equity securities that the Company may offer in one or more offerings on terms to be determined at the time of sale. The shelf registration statement is due to expire on March 23, 2023 and replaces the Company’s previous shelf registration statement for an unspecified amount of debt and/or equity securities filed in 2018. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12. Segment Information The Company operates in one reportable segment, industrial IoT services. Other than satellites in orbit, goodwill and intangible assets, long-lived assets outside of the United States are not significant. The Company’s foreign exchange exposure is limited as approximately 79% of the Company’s consolidated revenue is collected in U.S. dollars. The following table summarizes revenues on a percentage basis by geographic region, based on the region in which the customer is located. Year Ended December 31, 2020 2019 2018 United States 52 % 51 % 63 % South America 9 % 11 % 10 % Japan 6 % 7 % 5 % Europe 18 % 19 % 15 % Other 15 % 12 % 7 % 100 % 100 % 100 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes The following is a summary of the Company’s provision for income taxes for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Current Federal $ 73 $ 129 $ 95 State 68 109 4 International 3,413 5,389 6,137 Total 3,554 5,627 6,236 Deferred Federal (10,399 ) (1,796 ) (5,754 ) State (1,039 ) (517 ) 107 International (1,658 ) (1,430 ) (2,055 ) Valuation allowance 11,198 2,499 6,124 Total (1,898 ) (1,244 ) (1,578 ) Income taxes $ 1,656 $ 4,383 $ 4,658 United States and foreign income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 is as follows: Year Ended December 31, 2020 2019 2018 United States $ (43,226 ) $ (29,378 ) $ (33,786 ) Foreign 11,057 15,629 12,505 Total $ (32,169 ) $ (13,749 ) $ (21,281 ) The components of net deferred tax assets (liabilities) are as follows: December 31, 2020 2019 Deferred tax assets: Acquisition-related costs $ 349 $ 396 Deferred revenues 1,795 2,319 Allowance for doubtful accounts 1,949 1,193 Inventory 1,582 1,762 Deferred compensation 1,906 2,499 Bonus accrual 886 711 Vacation accrual 233 216 Lease liability 3,617 4,201 Warranty accrual 1,471 1,514 Accrued expenses 853 484 Satellite network and other property 2,402 5,353 Foreign tax credit 1,461 1,449 Alternative minimum tax credit — 325 Tax loss carryforwards and credits 49,445 34,945 Other 19 18 Total deferred tax assets 67,968 57,385 Deferred tax liabilities: Intangible assets (11,160 ) (13,512 ) Right of use asset (2,980 ) (3,487 ) Goodwill (6,815 ) (6,178 ) Total deferred tax liabilities (20,955 ) (23,177 ) Net deferred tax assets before valuation allowance 47,013 34,208 Less valuation allowance (60,168 ) (48,970 ) Net deferred tax assets (liabilities) (13,155 ) (14,762 ) Deferred tax assets, non-current 258 132 Deferred tax liabilities, non-current (13,413 ) (14,894 ) Net deferred tax liabilities $ (13,155 ) $ (14,762 ) Income taxes differ from the amount computed by applying the statutory U.S. federal income tax rate because of the effect of the following items: Year Ended December 31, 2020 2019 2018 Income tax expense at U.S. statutory rate $ (6,756 ) $ (2,887 ) $ (4,468 ) State income taxes, net of federal benefit (985 ) (423 ) 103 Effect of foreign subsidiaries 634 1,783 1,841 Tax credits (668 ) (672 ) (660 ) Global intangible low-taxed income inclusion (GILTI) — 2,744 2,141 True-up of GILTI due to high-tax exception (2,662 ) — — Other permanent items 1,465 783 (199 ) Change in uncertain tax positions — — 346 True-up from prior years (564 ) 512 (571 ) Other (6 ) 44 1 Change in valuation allowance 11,198 2,499 6,124 Income tax $ 1,656 $ 4,383 $ 4,658 As part of the Company’s accounting for its acquisitions, a portion of the purchase price was allocated to goodwill. The acquired goodwill is deductible for tax purposes and amortized over fifteen years for income tax purposes. Under GAAP, the acquired goodwill is not amortized in the Company’s financial statements. As such, a deferred income tax expense and a deferred tax liability arise as a result of the tax deductibility for this amount for tax purposes but not for financial statement purposes. The resulting deferred tax liability, which is expected to continue to increase over time, will remain on the Company’s balance sheet indefinitely unless there is an impairment of the asset. As a result of the U.S. Tax Cuts and Jobs Act of 2017 and the changes it made to net operating loss carryforward rules, the Company is now able to use the above deferred tax liability as a source of future taxable income in evaluating the need for a valuation allowance. As of December 31, 2020 and 2019, the Company maintained a valuation allowance against all of its net deferred tax assets, excluding goodwill, attributable to operations in the United States as the realization was not considered more likely than not. The net change in the total valuation allowance for the years ended December 31, 2020, 2019 and 2018 was $11,198, $2,499 and $6,124, respectively. As of December 31, 2020 and 2019, the Company had potentially utilizable federal net operating loss carryforwards of $181,169 and $125,870, respectively. As of December 31, 2020 and 2019, the Company had potentially utilizable state net operating loss carryforwards of $197,647 and $159,083, respectively. The federal net operating loss carryforwards expire at various times through 2037 for losses incurred prior to January 1, 2018. All federal net operating losses incurred after January 1, 2018 have an indefinite life. The state net operating loss carryforwards expire at various times through 2040 for states that do not follow the federal rule having an indefinite life for losses incurred after 2018. As of December 31, 2020 and 2019, the Company had potentially utilizable foreign net operating loss carryforwards of $12,928 The utilization of the Company’s net operating losses may be subject to a substantial limitation due to the “change of ownership provisions” under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating loss carryforwards before their utilization. As of December 31, 2020, the Company has not provided deferred income taxes on the undistributed earnings of its foreign subsidiaries. The amount of such earnings was $18,964. These earnings have been permanently reinvested and the Company does not plan to initiate action that would precipitate the payment of income taxes thereon. It is not practicable to estimate the amount of additional tax that might be payable on these undistributed earnings. The following table is a reconciliation of the beginning and ending amounts of unrecognized tax benefits: 2020 2019 2018 Balance at January 1, $ 823 $ 1,202 $ 856 Additions for tax positions related to prior years — 9 398 Reductions for tax positions of prior years (15 ) (355 ) (52 ) Settlements (5 ) (33 ) — Balance at December 31, $ 803 $ 823 $ 1,202 No interest and penalties related to unrecognized tax benefits were accrued during the years ended December 31, 2020, 2019, and 2018. Interest and penalties are not reflected in the table above and are included in income tax expense. As of December 31, 2020, $775 of the unrecognized tax benefits have been recorded as a reduction to the Company’s federal and state net operating loss carryforwards in deferred tax assets. Due to the existence of the Company’s valuation allowance, these unrecognized tax benefits, if recognized, would not impact the Company’s effective income tax rate. The Company is also subject to examinations in its material non-U.S. jurisdictions for 2016 and later years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies Legal Proceedings From time to time, the Company is involved in various litigation matters involving claims incidental to its business and acquisitions, including employment matters, acquisition-related claims, patent infringement and contractual matters, among other issues. While the outcome of any such litigation matters cannot be predicted with certainty, management currently believes that the outcome of these proceedings, including the matters described below, either individually or in the aggregate, will not have a material adverse effect on its business, results of operations or financial condition. The Company records reserves related to legal matters when losses related to such litigation or contingencies are both probable and reasonably estimable. Sanmina Commitment The Company is dependent on Sanmina, a contract manufacturer with significant operations in Mexico, for the manufacture of subscriber communicators that the Company designs and sells. If Sanmina has excess components on hand with no demand for a 90-day period following the end of each calendar quarter, the Company is obligated to purchase these components. The value of these components would be included in the Company’s inventory balances during the period purchased. COVID-19 COVID-19 surfaced in late 2019 and has spread around the world, including to the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic. The effects of the COVID-19 pandemic are expected to adversely affect the Company’s business, financial condition and results of operations. The magnitude of the impact of COVID-19 is unpredictable; consequently, the impact it will have on the Company’s future results is uncertain. Airtime credits In 2001, in connection with the organization of ORBCOMM Europe and the reorganization of the ORBCOMM business in Europe, the Company agreed to grant certain country representatives in Europe approximately $3,736 in airtime credits. The Company has not recorded the airtime credits as a liability for the following reasons: (i) the Company has no obligation to pay the unused airtime credits if they are not utilized; and (ii) the airtime credits are earned by the country representatives only when the Company generates revenue from the country representatives. The airtime credits have no expiration date. Accordingly, the Company is recording airtime credits as services are rendered and these airtime credits are recorded net of revenues from the country representatives. For each of the years ended December 31, 2020, 2019 and 2018, airtime credits used totaled approximately $30. As of December 31, 2020 and 2019, unused credits granted by the Company were approximately $1,888 and $1,918, respectively. Agreements with carrier data providers The Company has contractual minimum payments under the terms of its agreements with certain carrier data providers. Based on the number of subscribers as of December 31, 2020, future minimum payments for the years ending December 31, 2021, 2022, 2023, and 2024 are $8,602, $5,712, $5,855 and $6,001, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 15. Leases In February 2016, the FASB issued ASU 2016-02, which is effective for fiscal years beginning after December 15, 2018. The Company adopted ASU 2016-02 prospectively as of January 1, 2019, the date of initial application, and therefore prior comparative periods were not adjusted. Rent expense for the year ended December 31, 2018 was approximately $4,020 and was recognized on a straight-line basis over the lease term under ASC Topic 840 “Leases.” Lessee The Company determines whether an arrangement is a lease at inception. The Company has operating leases for land, office space, data centers and storage facilities, as well as office equipment and vehicles. The Company’s leases have remaining lease terms of less than one year to 12 years, some of which include options to extend the lease term for up to five years, and some of which include options to terminate the lease within one year. The Company considers these options in determining the lease term used to establish the Company’s right-of use assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU assets also include any lease payments made in advance of lease commencements and exclude lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has lease agreements with lease and non-lease components, which are generally not accounted for separately. Components of lease expense are as follows: Year Ended December 31, Year Ended December 31, 2020 2019 Operating lease cost $ 3,698 $ 3,925 The Company has lease arrangements which are classified as short-term in nature. These leases meet the criteria for operating lease classification. In addition, the Company has variable lease costs associated with certain leases. Lease costs associated with the short-term leases and variable lease components, included in SG&A expenses on the Company’s consolidated statements of operations for the years ended December 31, 2020 and 2019, are not material. Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: Year Ended December 31, Year Ended December 31, 2020 2019 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 3,975 $ 4,178 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 202 $ 18,659 Supplemental balance sheet information related to the Company’s operating leases is as follows: December 31, December 31, Balance Sheet Classification 2020 2019 Right-of-use assets Other assets $ 13,485 $ 15,894 Current lease liabilities Accrued liabilities 2,736 2,608 Non-current lease liabilities Other liabilities 13,400 16,266 Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows: December 31, December 31, 2020 2019 Weighted-average remaining lease term (in years) 6.40 7.11 Weighted-average discount rate 8.0 % 8.0 % Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows: December 31, 2020 2021 $ 3,852 2022 3,378 2023 3,210 2024 3,037 2025 2,500 Thereafter 4,795 Total lease payments 20,772 Less: Imputed interest (4,636 ) Present value of lease liabilities $ 16,136 Lessor Although most of the Company’s revenue from its product sales comes from the sale of subscriber communicators, the Company also leases some subscriber communicators to certain customers. The Company determines the existence of a lease when the customer controls the use of the identified product for a period of time defined in the lease agreement. The Company’s leases range in duration between three to five years, with payment generally collected in monthly installments. Refer to “Note 2 – Summary of Significant Accounting Policies” for more information. The Company classifies these leases as sales-type leases and recognizes revenue and cost of product sales upon delivery or installation, depending on the specific contractual terms. The Company’s leases include certain termination fees, as defined in the lease agreements, and do not typically include purchase rights at the end of the lease. |
Employee Incentive Plan
Employee Incentive Plan | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Incentive Plan | Note 16. Employee Incentive Plan The Company maintains a 401(k) plan. All employees who have been employed for three months or longer are eligible to participate in the plan. Employees may contribute up to 15% of eligible compensation to the plan, subject to certain limitations. The Company has the option of matching up to 50% of the amount contributed by each employee, up to 6% of the employee’s compensation. In addition, the plan contains a discretionary contribution component pursuant to which the Company may make an additional annual contribution. Contributions vest over a five-year |
Supplemental Disclosure of Nonc
Supplemental Disclosure of Noncash Investing and Financing Activities | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Supplemental Disclosure of Noncash Investing And Financing Activities | Note 17. Supplemental Disclosure of Noncash Investing and Financing Activities Year Ended December 31, 2020 2019 2018 Investing activities: Capital expenditures incurred not yet paid $ 1,061 $ 1,082 $ 344 Stock-based compensation included in capital expenditures 476 650 502 Financing activities: Common stock issued as form of payment for MPUs — 503 827 Series A convertible preferred stock dividend paid-in-kind — 12 18 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts Col. B Col. C Col. E Description Balance at Beginning of the Period Charged to Costs and Expenses Charged to Other Accounts Col. D Deductions Balance at End of the Period (Amounts in thousands) Year ended December 31, 2020 Allowance for doubtful receivables $ 4,480 5,324 1,595 (1) — $ 8,209 Deferred tax asset valuation allowance $ 48,970 11,198 — — (2) $ 60,168 Year ended December 31, 2019 Allowance for doubtful receivables $ 4,072 2,008 1,600 (1) — $ 4,480 Deferred tax asset valuation allowance $ 46,471 2,499 — — (2) $ 48,970 Year ended December 31, 2018 Allowance for doubtful receivables $ 400 3,426 (246 ) (1) — $ 4,072 Deferred tax asset valuation allowance $ 40,347 6,124 — — (2) $ 46,471 ( 1) Amounts relate to write-offs net of recoveries. (2) Amounts relate to deferred tax assets acquired in acquisitions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation |
Investments | Investments Investments in entities over which the Company has the ability to exercise significant influence but does not have a controlling interest are accounted for under the equity method of accounting. The Company considers several factors in determining whether it has the ability to exercise significant influence with respect to investments, including, but not limited to, its direct and indirect ownership level in the voting securities, active participation on the board of directors, approval of operating and budgeting decisions and other participatory and protective rights. Under the equity method, the Company’s proportionate share of the net income or loss of such investees is reflected in the Company’s consolidated results of operations. When the Company does not exercise significant influence over the investee, the investment is accounted for under the cost method. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses at the date of the consolidated financial statements and during the reporting periods, respectively, and to disclose contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The most significant estimates relate to recognition of revenue, allowances over accounts receivable, reserves over inventory balances, the recognition and measurement of assets acquired and liabilities assumed in business combinations at fair value, assessment of indicators of goodwill impairment, determination of useful lives of the Company’s satellite network and other equipment and intangible assets, the assessment of expected cash flows used in evaluating long-lived assets, including intangible assets, for impairment, the calculation of capitalized development costs, the assessment of the Company’s incremental borrowing rate used to determine its right - of - use asset s and lease liabilit ies , accounting for uncertainties in income tax positions, estimates associated with warranty costs and loss contingencies, estimates related to the recognition and subsequent valuation of contingent considerations and the value of securities underlying stock-based compensation. |
Business combinations | Business combinations The Company accounts for business combinations pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805 “Business Combinations,” which requires that assets acquired and liabilities assumed be recorded at their respective fair values on the date of acquisition. The fair value of the consideration paid is assigned to the underlying net assets of the acquired business based on their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is allocated to goodwill. The purchase price allocation process requires the Company to make significant assumptions and estimates in determining the purchase price and the fair value of assets acquired and liabilities assumed at the acquisition date. The Company’s assumptions and estimates are subject to refinement and, as a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon conclusion of the measurement period, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. The Company’s consolidated financial statements and results of operations reflect an acquired business after the completion of the acquisition. The Company has evaluated pre-acquisition contingencies that existed as of the acquisition dates of the businesses acquired. If any pre-acquisition contingencies acquired as part of an acquisition become probable and estimable, the Company will record such amounts at fair market value in the measurement period, or in the Company’s results of operations after the measurement period, as applicable. |
Contingent consideration | Contingent consideration The Company determines the acquisition date fair value of contingent consideration obligations based on a probability-weighted income approach derived from milestone estimates and a probability assessment with respect to the likelihood of achieving performance metrics. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in FASB ASC Topic 820 “Fair Value Measurement.” At each reporting date, the contingent consideration obligation is revalued to estimated fair value and any changes in fair value are reflected as income or expense on the Company’s consolidated statement of operations. Changes in the fair value of the contingent consideration obligations may result from changes in probability assumptions with respect to the likelihood of achieving the various contingent payment obligations. Adverse changes in assumptions utilized in the Company’s contingent consideration fair value estimates could result in an increase in the Company’s contingent consideration obligation and a corresponding charge to operating income. |
Acquisition-related and integration costs | Acquisition-related and integration costs Acquisition-related and integration costs include professional services expenses and identifiable integration costs directly attributable to acquisitions. For the years ended December 31, 2020, 2019 and 2018, the Company incurred acquisition-related and integration costs of $448, $788 and $1,624, respectively. These costs were expensed as incurred and are reflected in acquisition-related and integration costs on the Company’s consolidated statements of operations. |
Revenue recognition | Revenue recognition The Company derives recurring service revenues primarily from monthly fees for industrial IoT connectivity services that consist of subscriber-based and recurring monthly usage fees for each subscriber communicator or SIM activated for use on its satellite network, other satellite networks and cellular wireless networks that the Company resells to its resellers, Market Channel Partners (“MCPs”) and Market Channel Affiliates (“MCAs”), and direct customers. In addition, the Company earns recurring service revenues from subscription-based services providing recurring AIS data services to government and commercial customers worldwide. The Company also earns recurring service revenues from activations of subscriber communicators and SIMs, optional separately-priced extended warranty service agreements extending beyond the initial warranty period of typically one year, which are billed to the customer upon shipment of a subscriber communicator, and royalty fees relating to the manufacture of subscriber communicators under a manufacturing agreement. Service revenues derived from usage fees are generally based upon the data transmitted by a customer, the overall number of subscriber communicators and/or SIMs activated by each customer, and whether the Company provides services through its value-added portal. Using the output method, these service revenues are recognized over time, as services are rendered, or at a point in time, based on the contract terms. AIS service revenues are generated over time from monthly subscription-based services supplying AIS data services to government and commercial customers worldwide, using the output method. Revenues from the activation of both subscriber communicators and SIMs are initially recorded as deferred revenues and are, thereafter, recognized on a ratable basis using a time-based output method, generally over three years , the estimated life of the subscriber communicator. Revenues from separately - priced extended warranty service agreements extending beyond the initial warranty period of typically one year , are initially recorded as deferred revenues and are, thereafter, recognized on a ratable basis using a time-based output method , generally over two to five years . The Company earns other service revenues from installation services and engineering, technical and management support services . Revenues generated from installation services are recognized at a point in time when the services are completed. Revenues generated from engineering, technical and management support services to customers are recognized over time as the service is provided. The Company also generates other service revenues through the sale of software licenses to its customers, which are recognized at a point in time when the license is provided to the customer. Product sales are derived from sales of complete industrial IoT subscriber communicators, including telematics devices, modems, or cellular wireless SIMs (for the Company’s terrestrial-communication services) to the Company’s resellers (i.e., MCPs and MCAs) and direct customers. Product sales are recognized at a point in time when title transfers, when the products are shipped, or when customers accept the products, depending on the specific contractual terms. Sales of subscriber communicators and SIMs are not subject to return and title and risk of loss pass to the customer generally at the time of shipment. Amounts received prior to the performance of services under customer contracts are recognized as deferred revenues and revenue recognition is deferred until such time that all revenue recognition criteria have been met. Deferred revenue as of December 31, 2020 and 2019 consisted of the following: December 31, 2020 2019 Service activation fees $ 2,094 $ 3,007 Prepaid services 6,123 6,423 Extended warranty revenues 1,179 1,206 9,396 10,636 Less current portion (5,238 ) (3,865 ) Long-term portion $ 4,158 $ 6,771 During the years ended December 31, 2020 and 2019, the Company recognized revenue of $6,156 and $5,896, respectively, which was included as deferred revenue as of December 31, 2019 and 2018. The Company’s program with Maersk Lines, through its contract with AT&T Services, Inc., expired on December 31, 2019. The remaining deferred revenue of approximately $1,900 associated with this contract was recognized as recurring service revenues during the year ended December 31, 2020 as an immaterial prior period adjustment. The contract was assumed as part of the WAM Technologies, LLC acquisition in 2015. Shipping costs billed to customers are included in product sales and the related costs are included as cost of product sales on the Company’s consolidated statements of operations. The Company generates revenue from leasing arrangements of subscriber communicators, under FASB ASC Topic 842 “Leases” (“ASC 842”), using the estimated selling prices for each of the deliverables recognized. Product and installation revenues associated with these arrangements are recognized upon shipment or installation of the subscriber communicator, depending on the specific contractual terms. Service and warranty revenues are recognized on an accrual basis, as services are rendered, or on a cash basis, if collection from the customer is not reasonably assured at contract initiation. The following table summarizes the components of revenue from contracts with customers, as well as revenue recognized under ASC 842: Year Ended December 31, 2020 2019 2018 Revenue from contracts with customers: Recurring service revenues $ 150,048 $ 155,284 $ 148,367 Other service revenues 7,771 5,310 5,222 Total service revenues 157,819 160,594 153,589 Product sales 87,311 105,660 117,018 Total revenue from contracts with customers 245,130 266,254 270,607 Product sales recognized under ASC 842 3,336 5,759 5,533 Total revenues $ 248,466 $ 272,013 $ 276,140 Revenue recognition for arrangements with multiple performance obligations The Company enters into contracts with its customers that include multiple performance obligations, which typically include subscriber communicators, monthly usage fees and optional extended warranty service agreements. The Company evaluates each item to determine whether it represents a promise to transfer a distinct good or service to the customer and therefore is a separate performance obligation. If a contract is separated into more than one performance obligation, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative stand-alone selling price of each performance obligation. The Company uses an observable price to determine the stand-alone selling price for each separate performance obligation when sold on its own or a cost-plus margin approach when an observable price is not available. If an arrangement provided to a customer has a significant and incremental discount on future revenue, such discount is considered a performance obligation and a proportionate amount of the discount would be allocated to each element based on the relative stand-alone selling price of each element, regardless of the discount. The Company has determined that arrangements provided to its customers do not include significant and incremental discounts. |
Cost of revenues | Cost of revenues The Company operates its own LEO satellite network and accompanying ground equipment, including fifteen gateway earth stations (“GESs”), three AIS data reception earth stations, and three regional gateway control centers. The Company’s proprietary satellite-based communications system is typically characterized by high initial capital expenditures and relatively low marginal costs for providing service. The Company resells network connectivity for two other satellite networks and seven terrestrial network partners. Reselling network connectivity typically involves a cost for each device connected to the network system and the amount paid to each provider will vary. Cost of services is comprised of expenses to operate the Company’s network, such as payroll and related costs, including stock-based compensation, installation costs, and usage fees to third-party networks. The Company primarily sells industrial IoT telematics devices and modems that the Company designs and builds with contract manufacturers. Cost of product sales includes the purchase price of subscriber communicators and SIMs sold, costs of warranty obligations, shipping charges, as well as operational costs of the Company’s employees and inventory management to fulfill customer orders. |
Foreign currency translation | Foreign currency translation The Company has foreign operations where the functional currency is the local currency. For these operations, assets and liabilities are translated using the end-of-period exchange rates and revenues, expenses and cash flows are translated using average rates of exchange for the period. Equity is translated at the rate of exchange at the date of the equity transaction. Translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses related to assets and liabilities that are denominated in a currency other than the functional currency are included in other income (expense) on the consolidated statements of operations. Foreign currency translation gains and losses related to operational expenses denominated in a currency other than the functional currency are included in selling, general and administrative (“SG&A”) expenses on the consolidated statements of operations. For the years ended December 31, 2020, 2019 and 2018, the Company recorded a loss on foreign currency of $1,741, $84, and $76, respectively. |
Fair value of financial instruments | Fair value of financial instruments The Company has no financial assets or liabilities that are measured at fair value on a recurring basis. However, if certain triggering events occur, the Company is required to evaluate the non-financial assets for impairment and any resulting asset impairment would require that a non-financial asset be recorded at fair value. FASB ASC Topic 820 “Fair Value Measurement Disclosure” prioritizes inputs used in measuring fair value into a hierarchy of three levels: Level 1- unadjusted quoted prices for identical assets or liabilities traded in active markets; Level 2- inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3- unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. The carrying amounts of the Company’s financial instruments, including cash, accounts receivable and accounts payable approximated their fair values due to the short-term nature of these items. The carrying value of the Company’s Term Facility, as defined below, approximated its fair value as the debt is at variable interest rates. The fair value of the Senior Secured Notes, as defined below, was based on observable relevant market information. Fluctuation between the carrying amount and the fair value of the Senior Secured Notes for the period presented was associated with changes in market interest rates. On December 2, 2020, the Company redeemed all $220,000 outstanding principal amount of its Senior Secured Notes. Refer to “Note 10 – Notes Payable” for more information. The carrying amounts and fair values of the Company’s Senior Secured Notes are shown in the following table: December 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Senior Secured Notes $ — $ — $ 250,000 $ 241,875 The fair value of the note payable-related party, $1,400 book value at December 31, 2020, has a de minimis value. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all liquid investments with original maturities of three months or less, at the time of purchase, to be cash equivalents. At December 31, 2020 and 2019, the Company had a cash and cash equivalents balance of $40,384 and $54,258, respectively. |
Concentration of risk | Concentration of risk The Company’s customers are primarily commercial organizations. Accounts receivable are generally unsecured. Accounts receivable are due in accordance with payment terms set forth in contracts negotiated with customers. Amounts due from customers are stated net of an allowance for doubtful accounts. The Company determines its allowance for doubtful accounts by considering a number of factors, including the length of time accounts are past due, the customer’s current ability to pay its obligations to the Company and the condition of the general economy and the industry as a whole. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The Company writes off accounts receivable when they are deemed uncollectible. For the year ended December 31, 2020, Carrier Corporation comprised 10.2% of the Company’s consolidated total revenues. There were no customers who generated revenues greater than 10% of the Company’s consolidated total revenues for the years ended December 31, 2019 and 2018. One There were no customers who generated accounts receivable greater than 10% of the Company’s consolidated accounts receivable as of December 31, 2019. The Company is dependent on one vendor, Sanmina Corporation (“Sanmina”), a contract manufacturer with significant operations in Mexico, for the manufacture of subscriber communicators that the Company designs and sells. For the years ended December 31, 2020 and 2019, approximately $76,505, or 84.4%, and $75,068, or 67.4%, respectively, of the Company’s product sales was generated from the sale of the Company’s core products produced by Sanmina. As of December 31, 2020, the Company did not maintain in-orbit insurance coverage for its ORBCOMM Generation 1 or ORBCOMM Generation 2 satellites to address the risk of potential systemic anomalies, failures or catastrophic events affecting its satellite constellation. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, determined on a weighted average cost basis. At December 31, 2020 and 2019, inventory, net of inventory obsolescence, consisted primarily of finished goods and purchased parts to be utilized by its contract manufacturer totaling $23,529 and $33,379, respectively, and raw materials totaling $6,458 and $6,502, respectively. The Company reviews inventory quantities on hand, evaluates the realizability of inventories and adjusts the carrying value, as necessary, based on forecasted product demand. A provision, recorded in cost of product sales on the Company’s consolidated statements of operations, is made for potential losses on slow-moving and obsolete inventories when identified. |
Satellite network and other equipment, net | Satellite network and other equipment, net Satellite network and other equipment, net are stated at cost less accumulated depreciation and amortization. Major renewals and improvements are capitalized, while maintenance and repairs are charged to operations as incurred. Depreciation and amortization are recognized using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of their useful life or their respective lease term. The following table provides the range of estimated useful lives used for each asset type: Useful Life (years) Satellite network 10 Capitalized software 3-7 Computer hardware 3 Other 2-7 Satellite network includes costs of the constellation of satellites, and the ground and control facilities, consisting of GESs, gateway control centers and the network control center. As of December 31, 2020 and 2019, assets under construction primarily consist of costs associated with acquiring, developing, enhancing and testing software and hardware for internal and external use that have not yet been placed into service. |
Valuation / Impairment of long-lived assets | Valuation of long-lived assets Property and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The Company measures recoverability by comparing the carrying amounts of the assets to the projected undiscounted cash flows the assets are expected to generate. An impairment loss is recognized to the extent the carrying values exceed the fair values. The Company’s satellite constellation and related assets are evaluated as a single asset group whenever facts or circumstances indicate that the carrying values may not be recoverable. If indicators of impairment are identified, recoverability of long-lived assets is measured by comparing their carrying amounts to the projected cash flows the assets are expected to generate. Determining whether an impairment has occurred typically requires the use of significant estimates and assumptions, including in the forecasting of future cash flows, determination of the asset group, determination of the remaining useful life of the primary asset, the allocation of cash flows to assets or asset groups, and, if required, estimates of fair values for those assets or asset groups. If a satellite were to fail while in orbit, the resulting loss would be charged to expense in the period it is determined that the satellite is not recoverable. The amount of any such loss would be reduced to the extent of insurance proceeds, if any, estimated to be received. There was no impairment loss recorded for the years ended December 31, 2020, 2019 and 2018. See “Note 6 – Satellite Network and Other Equipment, Net” for additional details relating to the impairment of these satellites. Impairment of long-lived assets The Company reviews its long-lived assets and amortizable intangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In connection with this review, the Company also re-evaluates the periods of depreciation and amortization for these assets. The Company recognizes an impairment loss when the sum of the future undiscounted net cash flows expected to be realized from the asset is less than its carrying amount. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value, which is determined using the projected discounted future net cash flows, using the appropriate discount rate. |
Capitalized development costs for internal and external use | Capitalized development costs for internal and external use The Company capitalizes the costs of acquiring, developing and testing software and hardware to meet the Company’s internal needs and for products and services that have not yet been placed into service. Capitalization of costs associated with software obtained or developed for internal use commences when both the preliminary project stage is completed and management has authorized further funding for the project, based on a determination that it is probable that the project will be completed and used to perform the function intended. Capitalized costs include only (1) the external direct cost of materials and services consumed in developing or obtaining internal-use software, (2) payroll and payroll-related costs for employees who are directly associated with, and devote time to, a qualifying project, and (3) certain external software development costs upon the establishment of technological feasibility. Technological feasibility is considered to have occurred upon completion of either a detailed program design or a working model. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. Internal-use software costs are amortized once the software is placed in service using the straight-line method over periods ranging from three to seven years. Product and service development costs are amortized over the estimated life of the product once it has been released for commercial sale. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the underlying net tangible and intangible assets of the Company’s acquisitions. Goodwill is not amortized, but is tested for impairment on an annual basis and between annual tests whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill is tested at the reporting unit level, which is defined as an operating segment or one level below the operating segment. The Company operates in one reportable segment which is its only reporting unit. The Company tests for an indication of goodwill impairment annually on November 30 or when an indicator of impairment exists, by comparing the fair value of the reporting unit to its carrying value. If there is an indication of impairment, the Company performs a “step two” test to measure the impairment. There was no impairment of goodwill for the years ended December 31, 2020, 2019 and 2018. |
Intangible assets | Intangible assets Intangible assets that are not considered to have an indefinite life are amortized over their useful lives. Intangible assets include patents and technology, customer lists and trademarks. Intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. |
Warranty costs | Warranty costs The Company accrues for warranty coverage on product sales estimated at the time of sale based on historical costs to repair or replace products for customers compared to historical product sales. The warranty accrual is included in accrued liabilities on the Company’s consolidated balance sheets. Separately-priced extended warranty coverage is recorded as warranty revenue over the term of the extended warranty coverage and the related warranty costs are recorded as incurred during the coverage period. Warranty coverage that includes additional services, such as repairs and maintenance of the product, is treated as a separate performance obligation and the related warranty and repairs/maintenance costs are recorded as incurred. |
Income taxes | Income taxes The Company estimates its income taxes separately for each tax jurisdiction in which it conducts operations. This process involves estimating actual current tax expense and assessing temporary differences resulting from the different treatment of items between book and tax which results in deferred tax assets and liabilities. The Company recognizes in income a change in tax rates on deferred tax assets and liabilities in the period that includes the enactment date. Valuation allowances are established when realization of deferred tax assets is not considered more likely than not. The Company recognizes the effect of tax law changes in the period of enactment. Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of the Company’s deferred tax liabilities or the valuations of the Company’s deferred tax assets over time. The Company’s accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. In determining whether the realization of deferred tax assets is considered to be more likely than not, the Company assesses the realizability of the deferred tax assets on a jurisdiction-by-jurisdiction basis. This assessment is dependent upon past operating results and projected profitability. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence is objectively verified. The Company accounts for uncertainty in income tax positions using a two-step approach. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is to measure the tax position at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. |
Loss contingencies | Loss contingencies The Company accrues for costs relating to litigation, claims and other contingent matters when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Actual amounts paid may differ from amounts estimated, and such differences will be charged to operations in the period in which the final determination of the liability is made. |
Stock-based compensation | Stock-based compensation The Company measures and recognizes stock-based compensation expense for equity-based payment awards made to employees and directors based on estimated fair values on the date of grant. For equity-based payment awards, the Company recognizes compensation expense over the service period, net of estimated forfeitures using the straight-line method. For awards with non-market performance conditions, an evaluation is made at the grant date and future periods as to the likelihood of the performance criteria being met. Compensation expense is adjusted for changes in the likelihood of achieving the performance condition until the vesting date. For liability-based awards with market performance conditions, compensation expense is revalued at the end of each quarter based on the awards’ fair values using the graded vesting attribution method over the vesting periods. |
Recent accounting pronouncements | Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which is effective for fiscal years beginning after December 15, 2019. ASU 2016-13 introduces the current expected credit loss (CECL) model, which requires an entity to measure credit losses for certain financial instruments and financial assets. Upon initial recognition, an entity is required to estimate a credit loss expected over the life of an exposure. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Deferred Revenues | Deferred revenue as of December 31, 2020 and 2019 consisted of the following December 31, 2020 2019 Service activation fees $ 2,094 $ 3,007 Prepaid services 6,123 6,423 Extended warranty revenues 1,179 1,206 9,396 10,636 Less current portion (5,238 ) (3,865 ) Long-term portion $ 4,158 $ 6,771 |
Components of Revenue from Contracts with Customers | The following table summarizes the components of revenue from contracts with customers, as well as revenue recognized under ASC 842: Year Ended December 31, 2020 2019 2018 Revenue from contracts with customers: Recurring service revenues $ 150,048 $ 155,284 $ 148,367 Other service revenues 7,771 5,310 5,222 Total service revenues 157,819 160,594 153,589 Product sales 87,311 105,660 117,018 Total revenue from contracts with customers 245,130 266,254 270,607 Product sales recognized under ASC 842 3,336 5,759 5,533 Total revenues $ 248,466 $ 272,013 $ 276,140 |
Summary of carrying and fair values of senior secured notes | The carrying amounts and fair values of the Company’s Senior Secured Notes are shown in the following table: December 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Senior Secured Notes $ — $ — $ 250,000 $ 241,875 |
Summary of Estimated Useful Lives of Assets | The following table provides the range of estimated useful lives used for each asset type: Useful Life (years) Satellite network 10 Capitalized software 3-7 Computer hardware 3 Other 2-7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary Components of Stock-Based Compensation Expense | The following table summarizes the components of stock-based compensation expense on the consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Cost of services $ 457 $ 471 $ 666 Cost of product sales 106 126 162 Selling, general and administrative 3,913 4,637 6,065 Product development 855 946 1,017 Total $ 5,331 $ 6,180 $ 7,910 |
Time-Based Stock Appreciation Rights [Member] | |
Summary of Stock Appreciation Rights | A summary of the Company’s time-based stock appreciation rights (“SARs”) for the year ended December 31, 2020 is as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2020 2,125,294 $ 5.35 Granted — — Exercised (318,000 ) 2.46 Forfeited or expired (4,450 ) 2.46 Outstanding at December 31, 2020 1,802,844 $ 5.79 2.53 $ 4,160 Exercisable at December 31, 2020 1,802,844 $ 5.79 2.53 $ 4,441 Vested and expected to vest at December 31, 2020 1,802,844 $ 5.79 2.53 $ 4,160 |
Performance-Based Stock Appreciation Rights [Member] | |
Summary of Stock Appreciation Rights | A summary of the Company’s performance-based SARs for the year ended December 31, 2020 is as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2020 233,496 $ 6.01 Granted — — Exercised (154,575 ) 3.00 Forfeited or expired — — Outstanding at December 31, 2020 78,921 $ 3.16 1.95 $ 855 Exercisable at December 31, 2020 78,921 $ 3.16 1.95 $ 855 Vested and expected to vest at December 31, 2020 78,921 $ 3.16 1.95 $ 855 |
Time-Based Restricted Stock Units [Member] | |
Summary of Restricted Stock Units | A summary of the Company’s time-based restricted stock units (“RSUs”) for the year ended December 31, 2020 is as follows: Shares Weighted- Average Grant Date Fair Value Balance at January 1, 2020 1,265,434 $ 6.16 Granted 586,208 5.71 Vested (476,387 ) 9.07 Forfeited or expired (77,982 ) 5.95 Balance at December 31, 2020 1,297,273 $ 4.90 |
Performance-Based Restricted Stock Units [Member] | |
Summary of Restricted Stock Units | A summary of the Company’s performance-based RSUs for the year ended December 31, 2020 is as follows: Shares Weighted-Average Grant Date Fair Value Balance at January 1, 2020 1,067,809 $ 6.28 Granted 463,890 6.14 Vested (157,819 ) 9.01 Forfeited or expired (222,968 ) 7.90 Balance at December 31, 2020 1,150,912 $ 4.70 |
Market Performance Units [Member] | |
Fair Value of Stock Appreciation Rights Estimated | As the MPUs contain both performance and service conditions, they have been treated as a series of three separate awards, or tranches, for purposes of recognizing stock-based compensation expense. The Company recognizes stock-based compensation expense on a tranche-by-tranche basis over the requisite service period for that specific tranche. The Company estimated the fair values of the MPUs using a Monte Carlo simulation model that used the following assumptions: Year Ended December 31, 2020 2019 2018 Risk-free interest rate 0.10% to 0.17% 1.59% to 1.62% 2.46% to 2.63% Estimated volatility factor 65.0% .0 40.0% 29.0% Expected dividends None None None |
Net Income (Loss) Attributabl_2
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Calculations of EPS | The following table sets forth the basic and diluted EPS calculations for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Net loss attributable to ORBCOMM Inc. common stockholders $ (33,940 ) $ (18,435 ) $ (26,262 ) Weighted average number of common shares outstanding: Basic number of common shares outstanding 78,101 79,259 77,603 Dilutive effect of grants of stock options, unvested SARs and RSUs and shares of Series A convertible preferred stock — — — Diluted number of common shares outstanding 78,101 79,259 77,603 Earnings per share: Basic $ (0.43 ) $ (0.23 ) $ (0.34 ) Diluted $ (0.43 ) $ (0.23 ) $ (0.34 ) |
Summary of Net Loss Attributable to ORBCOMM Inc. Common Stockholders | The computation of net loss attributable to ORBCOMM Inc. common stockholders for the years ended December 31, 2020, 2019 and 2018 is as follows: Year Ended December 31, 2020 2019 2018 Net loss attributable to ORBCOMM Inc. $ (33,940 ) $ (18,423 ) $ (26,244 ) Preferred stock dividends on Series A convertible preferred stock — (12 ) (18 ) Net loss attributable to ORBCOMM Inc. common stockholders $ (33,940 ) $ (18,435 ) $ (26,262 ) |
Satellite Network and Other E_2
Satellite Network and Other Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Satellite Network and Other Equipment, Net | Satellite network and other equipment, net consisted of the following: December 31, 2020 2019 Land $ 381 $ 381 Satellite network 200,279 198,746 Capitalized software 96,261 83,320 Computer hardware 7,351 6,528 Other 17,816 7,787 Assets under construction 12,745 13,832 334,833 310,594 Less: accumulated depreciation and amortization (207,296 ) (165,041 ) $ 127,537 $ 145,553 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | Intangible assets, net consisted of the following: December 31, 2020 December 31, 2019 Useful life (years) Cost Accumulated amortization Net Cost Accumulated amortization Net Customer lists 5 - 15 $ 113,357 $ (60,934 ) $ 52,423 $ 113,357 $ (50,457 ) $ 62,900 Patents and technology 3 - 10 23,424 (15,288 ) 8,136 23,424 (13,044 ) 10,380 Trade names and trademarks 1 - 2 3,003 (3,003 ) — 3,003 (3,003 ) — $ 139,784 $ (79,225 ) $ 60,559 $ 139,784 $ (66,504 ) $ 73,280 |
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense for intangible assets is as follows: December 31, 2020 2021 $ 12,225 2022 11,686 2023 11,408 2024 11,122 2025 4,536 Thereafter 9,582 $ 60,559 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities consisted of the following: December 31, December 31, 2020 2019 Accrued compensation and benefits $ 9,486 $ 7,751 Accrued warranty obligations 6,398 6,526 Corporate income tax payable 386 2,341 Accrued VAT payable 2,189 2,614 Accrued satellite network and other equipment 591 247 Accrued inventory purchases 298 448 Accrued interest expense — 5,000 Accrued professional fees 393 329 Accrued airtime charges 812 1,818 Short-term lease liability 2,736 2,608 Other accrued expenses 8,618 7,269 $ 31,907 $ 36,951 |
Summary of Accrued Warranty Obligations | Changes in accrued warranty obligations consisted of the following: 2020 2019 Balance at January 1, $ 6,526 $ 5,624 Reduction of warranty liabilities assumed in connection with acquisitions — (476 ) Warranty expense 1,416 3,604 Warranty charges and other adjustments (1,544 ) (2,226 ) Balance at December 31, $ 6,398 $ 6,526 |
Note Payable (Tables)
Note Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Principal Repayments of Long Term Debt | As of December 31, 2020, scheduled mandatory principal repayments of long-term debt in each of the five years ending December 31, 2021 through 2025 were as follows: Years ending December 31, 2021 $ 10,000 2022 15,000 2023 15,000 2024 20,000 2025 160,000 $ 220,000 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Revenues on Percentage Basis by Geographic Region | The following table summarizes revenues on a percentage basis by geographic region, based on the region in which the customer is located. Year Ended December 31, 2020 2019 2018 United States 52 % 51 % 63 % South America 9 % 11 % 10 % Japan 6 % 7 % 5 % Europe 18 % 19 % 15 % Other 15 % 12 % 7 % 100 % 100 % 100 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Company's Provision for Income Taxes | The following is a summary of the Company’s provision for income taxes for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Current Federal $ 73 $ 129 $ 95 State 68 109 4 International 3,413 5,389 6,137 Total 3,554 5,627 6,236 Deferred Federal (10,399 ) (1,796 ) (5,754 ) State (1,039 ) (517 ) 107 International (1,658 ) (1,430 ) (2,055 ) Valuation allowance 11,198 2,499 6,124 Total (1,898 ) (1,244 ) (1,578 ) Income taxes $ 1,656 $ 4,383 $ 4,658 |
Summary of United States and Foreign Income (Loss) before Income Taxes | United States and foreign income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 is as follows: Year Ended December 31, 2020 2019 2018 United States $ (43,226 ) $ (29,378 ) $ (33,786 ) Foreign 11,057 15,629 12,505 Total $ (32,169 ) $ (13,749 ) $ (21,281 ) |
Components of Net Deferred Tax Assets (Liabilities) | The components of net deferred tax assets (liabilities) are as follows: December 31, 2020 2019 Deferred tax assets: Acquisition-related costs $ 349 $ 396 Deferred revenues 1,795 2,319 Allowance for doubtful accounts 1,949 1,193 Inventory 1,582 1,762 Deferred compensation 1,906 2,499 Bonus accrual 886 711 Vacation accrual 233 216 Lease liability 3,617 4,201 Warranty accrual 1,471 1,514 Accrued expenses 853 484 Satellite network and other property 2,402 5,353 Foreign tax credit 1,461 1,449 Alternative minimum tax credit — 325 Tax loss carryforwards and credits 49,445 34,945 Other 19 18 Total deferred tax assets 67,968 57,385 Deferred tax liabilities: Intangible assets (11,160 ) (13,512 ) Right of use asset (2,980 ) (3,487 ) Goodwill (6,815 ) (6,178 ) Total deferred tax liabilities (20,955 ) (23,177 ) Net deferred tax assets before valuation allowance 47,013 34,208 Less valuation allowance (60,168 ) (48,970 ) Net deferred tax assets (liabilities) (13,155 ) (14,762 ) Deferred tax assets, non-current 258 132 Deferred tax liabilities, non-current (13,413 ) (14,894 ) Net deferred tax liabilities $ (13,155 ) $ (14,762 ) |
Schedule of Income Taxes Differ from Amount Computed by Applying Statutory U.S. Federal Income Tax Rate | Income taxes differ from the amount computed by applying the statutory U.S. federal income tax rate because of the effect of the following items: Year Ended December 31, 2020 2019 2018 Income tax expense at U.S. statutory rate $ (6,756 ) $ (2,887 ) $ (4,468 ) State income taxes, net of federal benefit (985 ) (423 ) 103 Effect of foreign subsidiaries 634 1,783 1,841 Tax credits (668 ) (672 ) (660 ) Global intangible low-taxed income inclusion (GILTI) — 2,744 2,141 True-up of GILTI due to high-tax exception (2,662 ) — — Other permanent items 1,465 783 (199 ) Change in uncertain tax positions — — 346 True-up from prior years (564 ) 512 (571 ) Other (6 ) 44 1 Change in valuation allowance 11,198 2,499 6,124 Income tax $ 1,656 $ 4,383 $ 4,658 |
Summary of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table is a reconciliation of the beginning and ending amounts of unrecognized tax benefits: 2020 2019 2018 Balance at January 1, $ 823 $ 1,202 $ 856 Additions for tax positions related to prior years — 9 398 Reductions for tax positions of prior years (15 ) (355 ) (52 ) Settlements (5 ) (33 ) — Balance at December 31, $ 803 $ 823 $ 1,202 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | Components of lease expense are as follows: Year Ended December 31, Year Ended December 31, 2020 2019 Operating lease cost $ 3,698 $ 3,925 |
Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: Year Ended December 31, Year Ended December 31, 2020 2019 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 3,975 $ 4,178 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 202 $ 18,659 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to the Company’s operating leases is as follows: December 31, December 31, Balance Sheet Classification 2020 2019 Right-of-use assets Other assets $ 13,485 $ 15,894 Current lease liabilities Accrued liabilities 2,736 2,608 Non-current lease liabilities Other liabilities 13,400 16,266 |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating Leases | Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows: December 31, December 31, 2020 2019 Weighted-average remaining lease term (in years) 6.40 7.11 Weighted-average discount rate 8.0 % 8.0 % |
Schedule of Maturities of Lease Liabilities for Operating Leases | Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows: December 31, 2020 2021 $ 3,852 2022 3,378 2023 3,210 2024 3,037 2025 2,500 Thereafter 4,795 Total lease payments 20,772 Less: Imputed interest (4,636 ) Present value of lease liabilities $ 16,136 |
Supplemental Disclosure of No_2
Supplemental Disclosure of Noncash Investing and Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Supplemental Disclosure of Noncash Investing and Financing Activities | Year Ended December 31, 2020 2019 2018 Investing activities: Capital expenditures incurred not yet paid $ 1,061 $ 1,082 $ 344 Stock-based compensation included in capital expenditures 476 650 502 Financing activities: Common stock issued as form of payment for MPUs — 503 827 Series A convertible preferred stock dividend paid-in-kind — 12 18 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Dec. 02, 2020USD ($) | Dec. 31, 2020USD ($)SatelliteCustomerVendorSegment | Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer |
Summary Of Significant Accounting Policies [Line Items] | ||||
Equity method investments | $ 0 | $ 0 | ||
Guarantee or other funding obligations under equity method investment | 301,430,000 | 343,464,000 | ||
Earnings or losses from equity method investment | 0 | 0 | $ 0 | |
Acquisition-related and integration costs | 448,000 | 788,000 | 1,624,000 | |
Revenue recognized from customer contracts | 6,156,000 | 5,896,000 | ||
Remaining deferred revenues recognized | $ 1,900,000 | |||
Number of satellite networks buying network connectivity | Customer | 2 | |||
Number of terrestrial network partners buying network connectivity | Customer | 7 | |||
Foreign currency translation gain (loss) | $ (1,741,000) | (84,000) | $ (6,000) | |
Note payable - related party | 1,400,000 | 1,275,000 | ||
Cash and cash equivalents | 40,384,000 | $ 54,258,000 | ||
Number of customers with revenues greater than 10% | Customer | 0 | 0 | ||
Number of customers with accounts receivable greater than 10% | Customer | 0 | |||
Revenues | 245,130,000 | $ 266,254,000 | $ 270,607,000 | |
Inventories finished goods and purchased parts | 23,529,000 | 33,379,000 | ||
Inventories raw materials | $ 6,458,000 | 6,502,000 | ||
Number of reporting segments | Segment | 1 | |||
Goodwill impairment charges | $ 0 | $ 0 | 0 | |
Maximum percentage of benefit realized upon ultimate settlement | 50.00% | |||
Carrier Corporation [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers with accounts receivable greater than 10% | Customer | 1 | |||
Revenues [Member] | Customer Concentration Risk [Member] | Carrier Corporation [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.20% | |||
Revenues [Member] | Customer Concentration Risk [Member] | Sanmina Corporation [Member] | Mexico [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 84.40% | 67.40% | ||
Number of vendors | Vendor | 1 | |||
Revenues | $ 76,505,000 | $ 75,068,000 | ||
Accounts Receivable [Member] | Carrier Corporation [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.80% | |||
Senior Secured Notes | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Senior Secured Notes Principal Amount | $ 220,000 | |||
Gateway Earth Stations [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of assets operated communications and broadcasting equipment | Satellite | 15 | |||
AIS Data Reception Earth Stations [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of assets operated communications and broadcasting equipment | Satellite | 3 | |||
Regional Gateway Control Centers [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of assets operated communications and broadcasting equipment | Satellite | 3 | |||
Satellite Network [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment loss on asset | $ 0 | $ 0 | $ 0 | |
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization of internal use software costs, useful life | 3 years | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization of internal use software costs, useful life | 7 years | |||
Maximum [Member] | Revenues [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
Maximum [Member] | Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
ASU 2014-09 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Warranty period | 1 year | |||
Estimated life of communicator | 3 years | |||
ASU 2014-09 [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Additional term of the agreement | 2 years | |||
ASU 2014-09 [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Additional term of the agreement | 5 years | |||
Equity Method Investment, Guarantee or Other Funding [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Guarantee or other funding obligations under equity method investment | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Deferred Revenues (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenue Disclosure [Abstract] | ||
Service activation fees | $ 2,094 | $ 3,007 |
Prepaid services | 6,123 | 6,423 |
Extended warranty revenues | 1,179 | 1,206 |
Total deferred revenues | 9,396 | 10,636 |
Less: current portion | (5,238) | (3,865) |
Long-term portion | $ 4,158 | $ 6,771 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Components of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | $ 245,130 | $ 266,254 | $ 270,607 |
Product sales recognized under ASC 842 | 3,336 | 5,759 | 5,533 |
Total revenues | 248,466 | 272,013 | 276,140 |
Recurring Service Revenues [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 150,048 | 155,284 | 148,367 |
Other Service Revenues [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 7,771 | 5,310 | 5,222 |
Service [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 157,819 | 160,594 | 153,589 |
Product [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 87,311 | 105,660 | 117,018 |
Total revenues | $ 90,647 | $ 111,419 | $ 122,551 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Carrying Amounts and Fair Value of Senior Secured Notes (Detail) - 8.0% Senior Secured Notes due 2024 [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Carrying Amount | $ 250,000 |
Fair Value | $ 241,875 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Satellite Network [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Capitalized Software [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Capitalized Software [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 7 years |
Computer Hardware [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Other [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 2 years |
Other [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 7 years |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 02, 2017 | Jun. 09, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Inthinc [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition effective date | Jun. 9, 2017 | |||
Cash consideration paid | $ 34,236 | |||
Number of common stock shares issued for consideration | 76,796 | |||
Common stock issued, per share | $ 9.95 | |||
Number of trading days for average closing price | 20 days | |||
Inthinc [Member] | SG&A [Member] | ||||
Business Acquisition [Line Items] | ||||
Reduction in fair value of earn-outs amounts | $ 2,063 | $ 7,250 | ||
Inthinc [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payable | $ 25,000 | |||
ORBCOMM Technology Ireland Limited [Member] | Blue Tree Systems Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition effective date | Oct. 2, 2017 | |||
Outstanding equity percentage | 100.00% | |||
Cash consideration paid | $ 34,331 | |||
Number of common stock shares issued for consideration | 191,022 | |||
Common stock issued, per share | $ 10.47 | |||
Number of business day prior to closing date | 1 day | |||
ORBCOMM Technology Ireland Limited [Member] | Blue Tree Systems Limited [Member] | SG&A [Member] | ||||
Business Acquisition [Line Items] | ||||
Reduction in fair value of earn-outs amounts | $ 776 | |||
ORBCOMM Technology Ireland Limited [Member] | Blue Tree Systems Limited [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payable | $ 5,750 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Apr. 20, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2019 | Feb. 17, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 5,331,000 | $ 6,180,000 | $ 7,910,000 | |||
Stock-based compensation, capitalized | 476,000 | 650,000 | 503,000 | |||
Unrecognized compensation costs for all share-based payment arrangements | 6,841,000 | |||||
Accrued liabilities | 31,907,000 | 36,951,000 | ||||
Other non-current liabilities | $ 14,094,000 | $ 16,303,000 | ||||
Common stock, shares issued | 78,183,806 | 78,062,451 | ||||
Time-Based Stock Appreciation Rights [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 0 | $ 146,000 | $ 187,000 | |||
Unrecognized compensation costs for all share-based payment arrangements | $ 0 | |||||
Weighted-average grant date fair value, granted | $ 0 | $ 0 | $ 0 | |||
Intrinsic value of SARs | $ 287,000 | |||||
Number of shares, granted | 0 | 0 | 0 | |||
Performance-Based Stock Appreciation Rights [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | |||
Unrecognized compensation costs for all share-based payment arrangements | 0 | |||||
Intrinsic value of SARs | $ 268,000 | |||||
Number of shares, granted | 0 | 0 | 0 | |||
Time-Based Restricted Stock Units [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 3,331,000 | $ 3,972,000 | $ 4,627,000 | |||
Unrecognized compensation costs for all share-based payment arrangements | $ 3,854,000 | |||||
Weighted-average grant date fair value, granted | $ 5.71 | |||||
Number of shares, granted | 586,208 | |||||
Performance-Based Restricted Stock Units [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 1,342,000 | 1,769,000 | 2,478,000 | |||
Unrecognized compensation costs for all share-based payment arrangements | $ 2,987,000 | |||||
Weighted-average grant date fair value, granted | $ 6.14 | |||||
Number of shares, granted | 463,890 | |||||
Market Performance Units [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 424,000 | 9,000 | 346,000 | |||
Maximum percentage of MPUs for senior executives | 15.00% | |||||
Fair value period of MPUs | 3 years | |||||
Term of MPUs | 3 years | |||||
Accrued liabilities | $ 352,000 | 0 | ||||
Other non-current liabilities | $ 72,000 | 28,000 | ||||
Common stock, shares issued | 60,885 | |||||
2016 LTIP [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares authorized under the plan | 6,949,400 | |||||
Number of shares available for grant | 216,658 | |||||
2006 LTIP [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares authorized under the plan | 1,949,400 | |||||
ESPP [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares authorized under the plan | 5,000,000 | |||||
Stock-based compensation expense | $ 234,000 | $ 284,000 | $ 272,000 | |||
Maximum percentage deductible from employees' gross pay | 10.00% | |||||
Maximum amount deductible from employees gross pay | $ 25,000 | |||||
ESPP [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Maximum percentage of discount on common stock's fair market value | 15.00% | |||||
ESPP [Member] | Offering Period 1 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Purchases of common stock | 166,580 | 136,729 | ||||
Share price | $ 2.58 | $ 3.45 | ||||
Purchase of shares of common stock under ESPP, frequency | Purchases of shares of ORBCOMM common stock under the ESPP are made twice a year at six-month intervals. | |||||
ESPP [Member] | Offering Period 2 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Purchases of common stock | 143,203 | 113,703 | ||||
Share price | $ 5.68 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Components of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | $ 5,331 | $ 6,180 | $ 7,910 |
Cost of Services [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | 457 | 471 | 666 |
Cost of Product Sales [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | 106 | 126 | 162 |
Selling, General and Administrative [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | 3,913 | 4,637 | 6,065 |
Product Development [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | $ 855 | $ 946 | $ 1,017 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Appreciation Rights (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Time-Based Stock Appreciation Rights [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 2,125,294 | ||
Number of Shares, Granted | 0 | 0 | 0 |
Number of Shares, Exercised | (318,000) | ||
Number of Shares, Forfeited or expired | (4,450) | ||
Number of Shares, Outstanding, Ending Balance | 1,802,844 | 2,125,294 | |
Number of Shares, Exercisable | 1,802,844 | ||
Number of Shares, Vested and expected to vest | 1,802,844 | ||
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 5.35 | ||
Weighted-Average Exercise Price, Exercised | 2.46 | ||
Weighted-Average Exercise Price, Forfeited or expired | 2.46 | ||
Weighted-Average Exercise Price, Outstanding, Ending Balance | 5.79 | $ 5.35 | |
Weighted-Average Exercise Price, Exercisable | 5.79 | ||
Weighted-Average Exercise Price, Vested and expected to vest | $ 5.79 | ||
Weighted-Average Remaining Contractual Term, Outstanding | 2 years 6 months 10 days | ||
Weighted-Average Remaining Contractual Term, Exercisable | 2 years 6 months 10 days | ||
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 2 years 6 months 10 days | ||
Aggregate Intrinsic Value, Outstanding | $ 4,160 | ||
Aggregate Intrinsic Value, Exercisable | 4,441 | ||
Aggregate Intrinsic Value, Vested and expected to vest | $ 4,160 | ||
Performance-Based Stock Appreciation Rights [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 233,496 | ||
Number of Shares, Granted | 0 | 0 | 0 |
Number of Shares, Exercised | (154,575) | ||
Number of Shares, Outstanding, Ending Balance | 78,921 | 233,496 | |
Number of Shares, Exercisable | 78,921 | ||
Number of Shares, Vested and expected to vest | 78,921 | ||
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 6.01 | ||
Weighted-Average Exercise Price, Exercised | 3 | ||
Weighted-Average Exercise Price, Outstanding, Ending Balance | 3.16 | $ 6.01 | |
Weighted-Average Exercise Price, Exercisable | 3.16 | ||
Weighted-Average Exercise Price, Vested and expected to vest | $ 3.16 | ||
Weighted-Average Remaining Contractual Term, Outstanding | 1 year 11 months 12 days | ||
Weighted-Average Remaining Contractual Term, Exercisable | 1 year 11 months 12 days | ||
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 1 year 11 months 12 days | ||
Aggregate Intrinsic Value, Outstanding | $ 855 | ||
Aggregate Intrinsic Value, Exercisable | 855 | ||
Aggregate Intrinsic Value, Vested and expected to vest | $ 855 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Time-Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | shares | 1,265,434 |
Number of Shares, Granted | shares | 586,208 |
Number of Shares, Vested | shares | (476,387) |
Number of Shares, Forfeited or expired | shares | (77,982) |
Number of Shares, Outstanding, Ending Balance | shares | 1,297,273 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 6.16 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 5.71 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 9.07 |
Weighted-Average Grant Date Fair Value, Forfeited or expired | $ / shares | 5.95 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 4.90 |
Performance-Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | shares | 1,067,809 |
Number of Shares, Granted | shares | 463,890 |
Number of Shares, Vested | shares | (157,819) |
Number of Shares, Forfeited or expired | shares | (222,968) |
Number of Shares, Outstanding, Ending Balance | shares | 1,150,912 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 6.28 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 6.14 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 9.01 |
Weighted-Average Grant Date Fair Value, Forfeited or expired | $ / shares | 7.90 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 4.70 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Market Performance Units Estimated, Monte Carlo Simulation Model (Detail) - Market Performance Units [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 0.10% | 1.59% | 2.46% |
Risk-free interest rate, Maximum | 0.17% | 1.62% | 2.63% |
Estimated volatility factor, Minimum | 65.00% | 40.00% | 29.00% |
Estimated volatility factor, Maximum | 93.00% | 55.00% | 32.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Net Income (Loss) Attributabl_3
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders - Summary of Basic and Diluted Calculations of EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to ORBCOMM Inc. common stockholders | $ (33,940) | $ (18,435) | $ (26,262) |
Weighted average number of common shares outstanding: | |||
Basic number of common shares outstanding | 78,101 | 79,259 | 77,603 |
Diluted number of common shares outstanding | 78,101 | 79,259 | 77,603 |
Earnings per share: | |||
Basic | $ (0.43) | $ (0.23) | $ (0.34) |
Diluted | $ (0.43) | $ (0.23) | $ (0.34) |
Net Income (Loss) Attributabl_4
Net Income (Loss) Attributable to ORBCOMM Inc. Common Stockholders - Summary of Net Loss Attributable to ORBCOMM Inc. Common Stockholders (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to ORBCOMM Inc. | $ (33,940) | $ (18,423) | $ (26,244) |
Preferred stock dividends on Series A convertible preferred stock | (12) | (18) | |
Net loss attributable to ORBCOMM Inc. common stockholders | $ (33,940) | $ (18,435) | $ (26,262) |
Satellite Network and Other E_3
Satellite Network and Other Equipment, Net - Summary of Satellite Network and Other Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | $ 334,833 | $ 310,594 |
Less: accumulated depreciation and amortization | (207,296) | (165,041) |
Satellite network and other equipment, net | 127,537 | 145,553 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 381 | 381 |
Satellite Network [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 200,279 | 198,746 |
Capitalized Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 96,261 | 83,320 |
Computer Hardware [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 7,351 | 6,528 |
Other [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | 17,816 | 7,787 |
Assets under Construction [Member] | ||
Property Plant And Equipment [Line Items] | ||
Satellite network and other equipment, gross | $ 12,745 | $ 13,832 |
Satellite Network and Other E_4
Satellite Network and Other Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $ 50,736 | $ 50,702 | $ 49,684 |
Net book value | 6,979 | ||
Products and Services and Internal-use Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Company capitalized internal costs attributable to design, development and enhancements of Company's products and services and internal-use software | 14,393 | 13,945 | 12,817 |
Fixed Assets [Member] | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $ 38,015 | $ 37,717 | $ 36,609 |
Depreciation and amortization expense percentage related to cost of services | 44.00% | 45.00% | 47.00% |
Depreciation and amortization expense percentage related to cost of product sales | 6.00% | 7.00% | 9.00% |
Internal-use Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Amortization of internal-use software | $ 3,307 | $ 3,117 | $ 3,433 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | $ 139,784 | $ 139,784 |
Finite lived intangible assets, Accumulated amortization | (79,225) | (66,504) |
Finite lived intangible assets, Net | 60,559 | 73,280 |
Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | 113,357 | 113,357 |
Finite lived intangible assets, Accumulated amortization | (60,934) | (50,457) |
Finite lived intangible assets, Net | $ 52,423 | 62,900 |
Customer Lists [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 5 years | |
Customer Lists [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 15 years | |
Patents and Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | $ 23,424 | 23,424 |
Finite lived intangible assets, Accumulated amortization | (15,288) | (13,044) |
Finite lived intangible assets, Net | $ 8,136 | 10,380 |
Patents and Technology [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 3 years | |
Patents and Technology [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 10 years | |
Trade Names and Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Cost | $ 3,003 | 3,003 |
Finite lived intangible assets, Accumulated amortization | $ (3,003) | $ (3,003) |
Trade Names and Trademarks [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 1 year | |
Trade Names and Trademarks [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 2 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period for intangible assets | 10 years 6 months | ||
Amortization of intangible assets | $ 12,721 | $ 12,985 | $ 13,075 |
Customer Lists [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period for intangible assets | 10 years 10 months 24 days | ||
Patents and Technology [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period for intangible assets | 9 years 3 months 18 days | ||
Trade Names and Trademarks [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period for intangible assets | 1 year 2 months 12 days |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2021 | $ 12,225 | |
2022 | 11,686 | |
2023 | 11,408 | |
2024 | 11,122 | |
2025 | 4,536 | |
Thereafter | 9,582 | |
Finite lived intangible assets, Net | $ 60,559 | $ 73,280 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $ 9,486 | $ 7,751 |
Accrued warranty obligations | 6,398 | 6,526 |
Corporate income tax payable | 386 | 2,341 |
Accrued VAT payable | 2,189 | 2,614 |
Accrued satellite network and other equipment | 591 | 247 |
Accrued inventory purchases | 298 | 448 |
Accrued interest expense | 5,000 | |
Accrued professional fees | 393 | 329 |
Accrued airtime charges | 812 | 1,818 |
Short-term lease liability | 2,736 | 2,608 |
Other accrued expenses | 8,618 | 7,269 |
Total accrued liabilities | $ 31,907 | $ 36,951 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Warranty Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Payables And Accruals [Abstract] | ||
Beginning balance | $ 6,526 | $ 5,624 |
Reduction of warranty liabilities assumed in connection with acquisitions | (476) | |
Warranty expense | 1,416 | 3,604 |
Warranty charges and other adjustments | (1,544) | (2,226) |
Ending balance | $ 6,398 | $ 6,526 |
Note Payable-Related Party - Ad
Note Payable-Related Party - Additional Information (Detail) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Debt Disclosure [Abstract] | ||||
Principal balance of the note payable | € | € 1,138 | € 1,138 | ||
Note payable - related party | $ | $ 1,400 | $ 1,275 | ||
Note payable estimated life | 6 years |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | Dec. 02, 2020 | Dec. 18, 2017 | Apr. 10, 2017 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 104.00% | ||||||
Debt Instrument, Increase, Accrued Interest | $ 8,800 | ||||||
Unamortized Debt Issuance Expense | 2,942 | ||||||
Interest Expense | $ 19,957,000 | $ 21,149,000 | $ 21,055,000 | ||||
JPMorgan Chase Bank ("The Lender") [Member] | Paycheck Protection Program (the "PPP") [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Loans | $ 7,588,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Face Amount | 25,000 | ||||||
Borrowing Under Revolving Facility | 20,000 | ||||||
Debt Instrument Face Amount | 20,000 | ||||||
Issuance of debt | 25,000 | ||||||
Senior Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Face Amount | 50,000 | ||||||
Issuance of debt | 50,000 | ||||||
Senior Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Face Amount | 200,000 | ||||||
Debt Instrument Face Amount | 200,000 | ||||||
Issuance of debt | 200,000 | ||||||
Senior Secured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Senior Secured Notes Principal Amount | $ 220,000 | ||||||
Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Issuance Costs | 3,155,000 | ||||||
Amortization Of Debt Issuance Costs | 53,000 | ||||||
Interest Expense | 717,000 | ||||||
8.0% Senior Secured Notes due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Face Amount | $ 250,000,000 | ||||||
Amortization Of Debt Issuance Costs | 711,000 | 776,000 | |||||
Interest Expense | 18,959,000 | $ 20,776,000 | |||||
Issuance of debt | $ 250,000,000 | ||||||
Note bears interest rate | 8.00% | ||||||
Debt instrument, maturity year | 2024 | ||||||
Debt instrument, frequency of periodic payment | semi-annually | ||||||
Interest payment beginning date | Oct. 1, 2017 | ||||||
Maximum aggregate indebtedness outstanding | $ 50,000,000 | ||||||
Debt issuance costs | $ 5,431,000 | ||||||
8.0% Senior Secured Notes due 2024 [Member] | Any Time Before April 1, 2020 [Member] | Redemption Price Plus "Make-Whole" Premium and Accrued and Unpaid Interest [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price percentage of principal amount | 100.00% | ||||||
8.0% Senior Secured Notes due 2024 [Member] | Any Time Before April 1, 2020 [Member] | Redemption Price Plus Accrued and Unpaid Interest [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption price percentage of principal amount | 35.00% | ||||||
Revolving Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Dec. 18, 2022 | ||||||
Interest rate, Description | The Prior Revolving Credit Facility bore interest at an alternative base rate or an adjusted LIBOR, plus an applicable margin of 2.50% in the case of alternative base rate loans and 3.50% in the case of adjusted LIBOR loans. | ||||||
Revolving Credit Agreement [Member] | Revolving Credit Facility [Member] | Alternative Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, Percentage | 2.50% | ||||||
Revolving Credit Agreement [Member] | Revolving Credit Facility [Member] | Adjusted LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, Percentage | 3.50% | ||||||
Revolving Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Face Amount | $ 25,000,000 | ||||||
Issuance of debt | $ 25,000,000 |
Note Payable - Schedule of Prin
Note Payable - Schedule of Principal Repayments of Long Term Debt (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 10,000 |
2022 | 15,000 |
2023 | 15,000 |
2024 | 20,000 |
2025 | 160,000 |
Long-term Debt | $ 220,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2019 | Apr. 10, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class Of Stock [Line Items] | |||||
Common stock, capital shares reserved for future issuance | 14,002,136 | ||||
Stock repurchase program, authorized amount | $ 25,000 | ||||
Stock repurchase program expiration date | Aug. 5, 2020 | ||||
Stock repurchased during period, shares | 836,904 | 1,930,414 | |||
Shares repurchase price per share | $ 2.98 | $ 4.86 | |||
Shares of common stock issued | 3,450,000 | ||||
Net proceeds received after deducting underwriters' discounts and commissions and offering costs | $ 27,967 | ||||
Underwriters' Option [Member] | |||||
Class Of Stock [Line Items] | |||||
Shares of common stock issued | 450,000 | ||||
Purchase price per share | $ 8.60 | ||||
Net proceeds received after deducting underwriters' discounts and commissions and offering costs | $ 28,000 | ||||
Series A Convertible Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 | |||
Preferred Stock, shares issued | 40,624 | 40,624 | |||
Preferred Stock, shares outstanding | 40,624 | 40,624 | |||
Preferred stock dividend percentage received | 4.00% | ||||
Preferred stock redemption price paid | $ 10 | ||||
Preferred stock dividends issued | 0 | 1,182 | |||
Dividends in arrears | $ 24 | ||||
Preferred stock convertible into common stock | 1.66611 | ||||
Preferred Stock, par value | $ 0.001 | $ 0.001 | |||
Preferred stock voting rights | Each share of the Series A convertible preferred stock is entitled to one vote for each share of common stock into which the preferred stock is convertible. | ||||
Preference of preferred stock | $ 10 | ||||
Preferred stock redemption period | Two years | ||||
Series A Convertible Preferred Stock [Member] | Minimum [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred Stock, par value | $ 11.20 | ||||
Series A Convertible Preferred Stock [Member] | StarTrak Systems LLC [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred Stock, shares issued | 183,550 | ||||
Preferred Stock, shares outstanding | 40,624 | ||||
Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred Stock, shares authorized | 50,000,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting Information [Line Items] | |
Number of reporting segments | 1 |
Maximum [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of foreign revenue collected in U.S. dollars | 79.00% |
Segment Information - Summary o
Segment Information - Summary of Revenues on Percentage Basis by Geographic Region (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues on a percentage basis by geographic region, based on the country | 100.00% | 100.00% | 100.00% |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues on a percentage basis by geographic region, based on the country | 52.00% | 51.00% | 63.00% |
South America [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues on a percentage basis by geographic region, based on the country | 9.00% | 11.00% | 10.00% |
Japan [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues on a percentage basis by geographic region, based on the country | 6.00% | 7.00% | 5.00% |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues on a percentage basis by geographic region, based on the country | 18.00% | 19.00% | 15.00% |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues on a percentage basis by geographic region, based on the country | 15.00% | 12.00% | 7.00% |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
Federal | $ 73 | $ 129 | $ 95 |
State | 68 | 109 | 4 |
International | 3,413 | 5,389 | 6,137 |
Total | 3,554 | 5,627 | 6,236 |
Deferred | |||
Federal | (10,399) | (1,796) | (5,754) |
State | (1,039) | (517) | 107 |
International | (1,658) | (1,430) | (2,055) |
Valuation allowance | 11,198 | 2,499 | 6,124 |
Total | (1,898) | (1,244) | (1,578) |
Income taxes | $ 1,656 | $ 4,383 | $ 4,658 |
Income Taxes - Summary of Unite
Income Taxes - Summary of United States and Foreign Income (Loss) before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (43,226) | $ (29,378) | $ (33,786) |
Foreign | 11,057 | 15,629 | 12,505 |
Total | $ (32,169) | $ (13,749) | $ (21,281) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Acquisition-related costs | $ 349 | $ 396 |
Deferred revenues | 1,795 | 2,319 |
Allowance for doubtful accounts | 1,949 | 1,193 |
Inventory | 1,582 | 1,762 |
Deferred compensation | 1,906 | 2,499 |
Bonus accrual | 886 | 711 |
Vacation accrual | 233 | 216 |
Lease liability | 3,617 | 4,201 |
Warranty accrual | 1,471 | 1,514 |
Accrued expenses | 853 | 484 |
Satellite network and other property | 2,402 | 5,353 |
Foreign tax credit | 1,461 | 1,449 |
Alternative minimum tax credit | 325 | |
Tax loss carryforwards and credits | 49,445 | 34,945 |
Other | 19 | 18 |
Total deferred tax assets | 67,968 | 57,385 |
Deferred tax liabilities: | ||
Intangible assets | (11,160) | (13,512) |
Right of use asset | (2,980) | (3,487) |
Goodwill | (6,815) | (6,178) |
Total deferred tax liabilities | (20,955) | (23,177) |
Net deferred tax assets before valuation allowance | 47,013 | 34,208 |
Less valuation allowance | (60,168) | (48,970) |
Net deferred tax assets (liabilities) | (13,155) | (14,762) |
Deferred tax assets, non-current | 258 | 132 |
Deferred tax liabilities, non-current | (13,413) | (14,894) |
Net deferred tax assets (liabilities) | $ (13,155) | $ (14,762) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes Differ from Amount Computed by Applying Statutory U.S. Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at U.S. statutory rate | $ (6,756) | $ (2,887) | $ (4,468) |
State income taxes, net of federal benefit | (985) | (423) | 103 |
Effect of foreign subsidiaries | 634 | 1,783 | 1,841 |
Tax credits | (668) | (672) | (660) |
Global intangible low-taxed income inclusion (GILTI) | 2,744 | 2,141 | |
True-up of GILTI due to high-tax exception | (2,662) | ||
Other permanent items | 1,465 | 783 | (199) |
Change in uncertain tax positions | 346 | ||
True-up from prior years | (564) | 512 | (571) |
Other | (6) | 44 | 1 |
Change in valuation allowance | 11,198 | 2,499 | 6,124 |
Income taxes | $ 1,656 | $ 4,383 | $ 4,658 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Change in total valuation allowance | $ 11,198,000 | $ 2,499,000 | $ 6,124,000 |
Interest and penalties related to uncertain tax positions | 0 | 0 | $ 0 |
Unrecognized tax benefits recorded as reduction to operating loss tax carryforwards | 775,000 | ||
Foreign Subsidiaries [Member] | |||
Income Taxes [Line Items] | |||
Earnings related to deferred income tax | 18,964,000 | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 181,169,000 | 125,870,000 | |
Net operating loss carryforwards expiration date | 2037 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 197,647,000 | 159,083,000 | |
Net operating loss carryforwards expiration date | 2040 | ||
Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 12,928,000 | $ 14,035,000 | |
Net operating loss carryforwards expiration date | 2040 | ||
Foreign Tax Authority [Member] | Earliest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Income tax examinations, year | 2016 | ||
Acquired Goodwill [Member] | |||
Income Taxes [Line Items] | |||
Useful life (years) | 15 years |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, Beginning balance | $ 823 | $ 1,202 | $ 856 |
Additions for tax positions related to prior years | 9 | 398 | |
Reductions for tax positions of prior years | (15) | (355) | (52) |
Settlements | (5) | (33) | |
Unrecognized tax benefits, Ending balance | $ 803 | $ 823 | $ 1,202 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2001 | Dec. 31, 2020 | |
Carrier Data Providers [Member] | |||||
Long Term Purchase Commitment [Line Items] | |||||
Future minimum payments for the year, 2021 | $ 8,602 | ||||
Future minimum payments for the year, 2022 | 5,712 | ||||
Future minimum payments for the year, 2023 | 5,855 | ||||
Future minimum payments for the year, 2024 | $ 6,001 | ||||
Procurement Agreement [Member] | Europe [Member] | Airtime [Member] | |||||
Long Term Purchase Commitment [Line Items] | |||||
Credits provided | $ 3,736 | ||||
Credits used | $ 30 | $ 30 | $ 30 | ||
Unused credits granted | $ 1,888 | $ 1,918 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Leases [Line Items] | ||
Rental expense | $ 4,020 | |
Minimum [Member] | ||
Leases [Line Items] | ||
Remaining lease term, operating lease | 1 year | |
Lessor sales-type, lease term | 3 years | |
Maximum [Member] | ||
Leases [Line Items] | ||
Remaining lease term, operating lease | 12 years | |
Operating leases, options to extend lease term | 5 years | |
Operating leases, options to terminate lease term | 1 year | |
Lessor sales-type, lease term | 5 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 3,698 | $ 3,925 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating cash flow information: | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 3,975 | $ 4,178 |
Non-cash activity: | ||
Right-of-use assets obtained in exchange for lease obligations | $ 202 | $ 18,659 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Right-of-use assets | $ 13,485 | $ 15,894 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Current lease liabilities | $ 2,736 | $ 2,608 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Non-current lease liabilities | $ 13,400 | $ 16,266 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesNoncurrent | us-gaap:OtherAccruedLiabilitiesNoncurrent |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating Leases (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 6 years 4 months 24 days | 7 years 1 month 9 days |
Weighted-average discount rate | 8.00% | 8.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities for Operating Leases (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 3,852 |
2022 | 3,378 |
2023 | 3,210 |
2024 | 3,037 |
2025 | 2,500 |
Thereafter | 4,795 |
Total lease payments | 20,772 |
Less: Imputed interest | (4,636) |
Present value of lease liabilities | $ 16,136 |
Employee Incentive Plan - Addit
Employee Incentive Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum percentage of eligible compensation to be contributed by the employees | 15.00% | ||
Percentage of employee's compensation up to which the employee may contribute | 6.00% | ||
Contributions vest over period | 5 years | ||
Contributions by employer | $ 1,169 | $ 1,189 | $ 1,104 |
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum percentage of matching contribution by the company | 50.00% |
Supplemental Disclosure of No_3
Supplemental Disclosure of Noncash Investing and Financing Activities - Supplemental Disclosure of Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investing activities: | |||
Capital expenditures incurred not yet paid | $ 1,061 | $ 1,082 | $ 344 |
Stock-based compensation included in capital expenditures | $ 476 | 650 | 502 |
Financing activities: | |||
Common stock issued as form of payment for MPUs | 503 | 827 | |
Series A convertible preferred stock dividend paid-in-kind | $ 12 | $ 18 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Receivables [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Valuation and qualifying accounts, beginning balance | $ 4,480 | $ 4,072 | $ 400 |
Charged to costs and expenses | 5,324 | 2,008 | 3,426 |
Charged to other accounts | 1,595 | 1,600 | (246) |
Valuation and qualifying accounts, ending balance | 8,209 | 4,480 | 4,072 |
Deferred Tax Asset Valuation Allowance [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Valuation and qualifying accounts, beginning balance | 48,970 | 46,471 | 40,347 |
Charged to costs and expenses | 11,198 | 2,499 | 6,124 |
Valuation and qualifying accounts, ending balance | $ 60,168 | $ 48,970 | $ 46,471 |