Company: KVHI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001007587-25-000012
Chunk: 68

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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, we entered into an agreement with another buyer to sell 50 Enterprise Center for $5.3 million. The sale was completed in June 2025, resulting in a gain of $1.3 million, which is included in other income (expense), net in our consolidated statement of operations for the three and six months ended June 30, 2025. The sale generated $4.9 million of net cash.

Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based upon our consolidated interim financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these interim financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure at the date of our interim financial statements. Our significant accounting policies are summarized in Note 1 to the consolidated financial statements in our annual report on Form 10-K for the year ended December 31, 2024.

Critical accounting estimates are those estimates made that involve a significant level of estimation uncertainty and have had or are reasonably likely to have an impact on our statement of operations. We believe that our accounting estimates for intangible assets and other long-lived assets are the only estimates critical to an understanding and evaluation of our financial results for the six months ended June 30, 2025, as discussed below.

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Results of Operations

The following table provides, for the periods indicated, certain financial data relating to our operations expressed as a percentage of net sales:

Three Months EndedSix Months Ended June 30,June 30, 2025202420252024Sales:Service86.6 %86.1 %85.9 %85.8 %Product13.4 13.9 14.1 14.2 Net sales100.0 100.0 100.0 100.0 Cost and expenses:Costs of service sales53.4 53.9 54.7 50.9 Costs of product sales12.3 15.0 13.5 16.6 Research and development3.4 8.1 4.0 9.3 Sales, marketing and support18.8 18.6 19.2 18.5 General and administrative13.4 14.4 13.7 16.3 Total costs and expenses101.3 110.0