Company: KVHI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001007587-25-000022
Chunk: 62

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 62
---
.On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company does not expect the OBBBA to have a material impact on its consolidated financial statements.

20

(16)     Leases

LesseeThe Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $232 and $376 for the three months ended September 30, 2025 and 2024, respectively, and $738 and $1,095 for the nine months ended September 30, 2025 and 2024, respectively. Short-term operating lease costs were $24 and $20 for the three months ended September 30, 2025 and 2024, respectively, and $70 and $59 for the nine months ended September 30, 2025 and 2024, respectively. Maturities of lease liabilities as of September 30, 2025 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:Remainder of 2025$233 2026741 2027840 2028 and thereafter3,695 Total minimum lease payments$5,509 Less amount representing interest$(901)Present value of net minimum operating lease payments$4,608 Less current installments of obligation under current-operating lease liabilities$591 Obligations under long-term operating lease liabilities, excluding current installments$4,017 Weighted-average remaining lease term - operating leases (years)6.14Weighted-average discount rate - operating leases5.50 %On July 23, 2025, the Company entered into a new lease agreement for approximately 32,000 square feet of office and warehouse space in Bristol, Rhode Island. The Company currently plans to migrate its Rhode Island operations to this leased facility in the spring of 2026, at which point its costs of sales and operational expenditures will include lease expense at the rate of approximately $0.6 million for the first year of the lease (excluding three months of free rent), with fixed annual increases thereafter. The lease agreement is