Company: KVHI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001007587-25-000022
Chunk: 53

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 share.

13

A reconciliation of the basic and diluted weighted average common shares outstanding is as follows: Three Months EndedNine Months Ended September 30,September 30, 2025202420252024Weighted average common shares outstanding—basic19,361 19,433 19,418 19,367 Dilutive common shares issuable in connection with stock plans— — — — Weighted average common shares outstanding—diluted19,361 19,433 19,418 19,367 

(7)     Inventories

Inventories are stated at the lower of cost or net realizable value using the first-in first-out costing method. Inventories as of September 30, 2025 and December 31, 2024 include the costs of material, labor, and factory overhead. Components of inventories consist of the following:September 30,2025December 31,2024Raw materials$6,850 $15,379 Work in process2,220 2,469 Finished goods4,324 5,105 $13,394 $22,953 During the three and nine months ended September 30, 2025, the Company recorded a $5,510 inventory write-down related primarily to further reduced demand for certain of the Company’s hardware products as well as a reduction in the prices the Company charges for certain TracNet H-series terminals. The Company implemented this price reduction at the end of the third quarter of 2025 and, as a result, reduced the value of its remaining inventory of those products to net realizable value based on lower customer pricing. Please see Note 17 for additional details surrounding the wind-down of the Company’s manufacturing activities.

(8)     Prepaid Expenses and Other Current Assets

September 30,2025December 31,2024Prepaid Starlink pooled data$3,501 $14,137 Other prepaid expenses and other current assets5,699 1,879 $9,200 $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 agreement provides KVH flexibility in the development and sales of custom, cost-effective airtime plans using Starlink’s Global Priority service. KVH began drawing from