Company: KVHI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001007587-25-000012
Chunk: 61

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 Company's anticipated relocation by early next year.As part of this restructuring, the Company reduced its headcount by approximately 75 employees, or approximately 20% of its total workforce as of the time the Company announced the restructuring. In 2024, the Company incurred aggregate severance charges of approximately $3.9 million, consisting of approximately $3.6 million of cash charges and approximately $0.3 million of non-cash charges arising from pre-existing contractual obligations to accelerate vesting of certain outstanding equity compensation awards. For the aggregate severance charges of approximately $3.9 million, the Company recorded in its consolidated statement of operations $0.9 million in cost of product sales, $1.4 million in research and development, $0.7 million in sales, marketing and support, and $0.8 million in general and administrative.

(18)     Segment Information

The Company manages its operations as a single operating segment for the purpose of assessing performance and making operating decisions, resulting in a single reportable segment. The Company has determined that its Chief Operating Decision Maker (CODM) is its Chief Executive Officer. The CODM reviews the Company’s financial information on a consolidated basis for the purpose of allocating resources and assessing financial performance.The key measure of segment profit or loss that the CODM uses to allocate resources and assess performance is the Company’s consolidated net income (loss). This is reviewed against budgeted expectations to assess segment performance and allocate resources. The Company’s segment net income for the six months ended June 30, 2025 and 2024 consisted of the following:

21

Three Months EndedSix Months EndedJune 30,June 30,2025202420252024Sales:Service$23,049 $24,674 $44,691 $49,712 Product3,574 3,999 7,346 8,228 Net Sales26,623 28,673 52,037 57,940 Cost of service salesVSAT airtime9,548 13,418 20,744 26,624 LEO airtime4,003 1,307 6,548 1,814 Other (1)659 744 1,153 1,075 14,210 15,469 28,445 29,513 Cost of product salesVSAT590 362 1,184 982 LEO1,133 1