Company: KVHI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001007587-25-000012
Chunk: 147

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 147
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 because title to the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as product revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.Upon adoption of ASC 842, the Company elected to apply the practical expedient provided to lessors to combine the lease and non-lease component of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component.The current portion of the net investment in these leases was $3,110 as of June 30, 2025 and the non-current portion of the net investment in these leases was $2,918 as of June 30, 2025. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets, and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying 

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consolidated balance sheets. Interest income from sales-type leases was $101 and $117 during the three months ended June 30, 2025 and 2024, respectively, and $203 and $246 during the six months ended June 30, 2025 and 2024, respectively.The future undiscounted cash flows from these leases as of June 30, 2025 are:Remainder of 2025$2,165 20262,292 20271,440 2028504 2029103 20305Total undiscounted cash flows$6,509 Present value of lease payments$6,028 Difference between undiscounted cash flows and discounted cash flows $481 

(17)     Restructuring

On February 9, 2024, the Board of Directors of the Company voted to implement a staged wind-down of the Company’s manufacturing activities at its