Company: KVHI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001007587-25-000012
Chunk: 142

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 142
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 units (Mobile Broadband (MBB) and KVH Media Group (Media)) are highly interrelated and interdependent on each other to generate revenues, and thus independent cash flows are not identifiable at a level lower than that of these reporting units. Accordingly, the Company's asset groups were determined to be its reporting units (MBB and Media).The changes in the carrying amount of intangible assets during the six months ended June 30, 2025 are as follows: AmountsBalance at December 31, 2024$828 Amortization expense(210)Intangible assets acquired in asset acquisition17 Foreign currency translation adjustment1 Balance at June 30, 2025$636 Intangible assets arose from the purchase of distribution rights from Kognitive Networks Inc. in October 2023 and the purchase of KVH Industries Norway AS in September 2010. The assets that are related to the distribution rights from Kognitive Networks are being amortized on a straight-line basis over the estimated useful life of 3 years. The assets related to the purchase of KVH Industries Norway AS for acquired intellectual property are fully amortized.In January 2017, the Company completed the acquisition of certain subscriber relationships from a third party. This acquisition did not meet the definition of a business under ASC 2017-01, Business Combinations (Topic 805)-Clarifying the Definition of a Business. The Company ascribed $100 of the initial purchase price to the acquired subscriber relationships definite-lived intangible assets with an initial estimated useful life of 10 years. Under the asset purchase agreement, the purchase price includes a component of contingent consideration under which the Company is required to pay a percentage of recurring revenues received from the acquired subscriber relationships through 2026 up to a maximum annual payment of $114. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships.

17

Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at June 30, 2025 and December 31, 2024, respectively:Gross Carrying AmountAccumulated AmortizationNet Carrying ValueJune 30, 2025Subscriber relationships$68 $24 $44 Distribution rights1,250 658 592 Intellectual property2,284 2,284 — $3,602 $2,966 $636 December 31, 2024Subscriber