Company: KVHI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001007587-25-000022
Chunk: 150

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 150
---
 September 2010. The assets that are related to the distribution rights from Kognitive Networks are being amortized on a straight-line basis over the estimated useful life of 3 years. The 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 September 30, 2025 and December 31, 2024, respectively:Gross Carrying AmountAccumulated AmortizationNet Carrying ValueSeptember 30, 2025Subscriber relationships$77 $33 $44 Distribution rights1,250 757 493 Intellectual property2,284 2,284 — $3,611 $3,074 $537 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 $107 and $102 for the three months ended September 30, 2025 and 2024, respectively, and $317 and $303 for the nine months ended September 30, 2025 and 2024, respectively. Amortization expense was categorized as general and administrative expense.As of September 30, 2025, the total weighted average remaining useful lives of the definite-lived intangible assets was 1.3 years.Estimated future amortization expense for intangible assets recorded by the Company at September 30, 2025 is as follows:Years ending December