Company: KVHI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001007587-25-000012
Chunk: 55

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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 assets related to the purchase of KVH Industries Norway AS for acquired intellectual property are fully amortized.In January 2017, the Company completed the acquisition of certain subscriber relationships from a third party. This acquisition did not meet the definition of a business under ASC 2017-01, Business Combinations (Topic 805)-Clarifying the Definition of a Business. The Company ascribed $100 of the initial purchase price to the acquired subscriber relationships definite-lived intangible assets with an initial estimated useful life of 10 years. Under the asset purchase agreement, the purchase price includes a component of contingent consideration under which the Company is required to pay a percentage of recurring revenues received from the acquired subscriber relationships through 2026 up to a maximum annual payment of $114. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships.

17

Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at June 30, 2025 and December 31, 2024, respectively:Gross Carrying AmountAccumulated AmortizationNet Carrying ValueJune 30, 2025Subscriber relationships$68 $24 $44 Distribution rights1,250 658 592 Intellectual property2,284 2,284 — $3,602 $2,966 $636 December 31, 2024Subscriber relationships$51 $13 $38 Distribution rights1,250 460 790 Intellectual property2,284 2,284 — $3,585 $2,757 $828 Amortization expense related to intangible assets was $106 and $101 for the three months ended June 30, 2025 and 2024, respectively, and $210 and $201 for the six months ended June 30, 2025 and 2024, respectively. Amortization expense was categorized as general and administrative expense.As of June 30, 2025, the total weighted average remaining useful lives of the definite-lived intangible assets was 1.5 years.Estimated future amortization expense for intangible assets recorded by the Company at June 30, 2025 is as follows:Years ending December 31,AmortizationExpense2025$212 2026424 Total amortization expense$636 

(14)     Revenue from Contracts with Customers

In accordance with