Company: KVHI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001007587-25-000008
Chunk: 50

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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2025 and December 31, 2024 include the costs of material, labor, and factory overhead. Components of inventories consist of the following:March 31,2025December 31,2024Raw materials$14,954 $15,379 Work in process2,066 2,469 Finished goods4,962 5,105 $21,982 $22,953 

(8)     Prepaid Expenses and Other Current Assets

March 31,2025December 31,2024Prepaid Starlink pooled data$11,897 $14,137 Other prepaid expenses and other current assets4,493 1,879 $16,390 $16,016 During the second quarter of 2024, KVH expanded its relationship with Starlink through a bulk data distribution agreement. Under the agreement, KVH prepaid for access to a large block of Starlink Global Priority data at favorable rates. The new agreement offers KVH increased flexibility in the development and sales of custom, cost-effective airtime plans using Starlink’s Global Priority service. KVH began drawing from this prepaid pooled data in the third quarter of 2024.

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(9)     Property and Equipment

Property and equipment, net, as of March 31, 2025 and December 31, 2024 consist of the following:March 31,2025December 31,2024Leasehold improvements338 336 Machinery and equipment6,021 6,021 Revenue-generating assets60,370 61,380 Office and computer equipment10,950 10,561 Motor vehicles31 31 77,710 78,329 Less accumulated depreciation(52,892)(51,315)$24,818 $27,014 Depreciation expense was $2,784 and $3,147 for the three months ended March 31, 2025 and 2024, respectively.Certain revenue-generating hardware assets are utilized by the Company in the delivery of the Company's airtime services, media and other content.As of March 31, 2025 and December 31, 2024, the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets.In the third quarter of 2024, the Company commenced its plan to sell the warehouse building and surface parking lot located at 75 Enterprise Center