Company: KVHI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001007587-25-000012
Chunk: 59

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 satellite service capacity and related equipment. Lease expense was $235 and $366 for the three months ended June 30, 2025 and 2024, respectively, and $506 and $719 for the six months ended June 30, 2025 and 2024, respectively. Short-term operating lease costs were $24 and $20 for the three months ended June 30, 2025 and 2024, respectively, and $46 and $39 for the six months ended June 30, 2025 and 2024, respectively. Maturities of lease liabilities as of June 30, 2025 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:Remainder of 2025$468 2026406 2027251 2028 and thereafter164 Total minimum lease payments$1,289 Less amount representing interest$(76)Present value of net minimum operating lease payments$1,213 Less current installments of obligation under current-operating lease liabilities$651 Obligations under long-term operating lease liabilities, excluding current installments$562 Weighted-average remaining lease term - operating leases (years)2.16Weighted-average discount rate - operating leases5.50 %LessorThe Company enters into leases with certain customers primarily for the TracPhone and TracNet VSAT systems. These leases are classified as sales-type leases 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