Company: KVHI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001007587-25-000022
Chunk: 151

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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31,AmortizationExpense2025$108 2026429 Total amortization expense$537 

18

(14)     Revenue from Contracts with Customers

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products and services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these products and services.Disaggregation of RevenueThe following table summarizes net sales from contracts with customers for the three and nine months ended September 30, 2025 and 2024:Three Months EndedNine Months EndedSeptember 30,September 30,2025202420252024Service - over time$25,388 $24,410 $70,079 $74,122 Product - point in time3,065 4,561 10,411 12,789  Total net sales$28,453 $28,971 $80,490 $86,911 For product sales, the delivery of the Company’s performance obligations is generally transferred to the customer, and associated revenue is recognized, at a point in time. For service sales, the delivery of the Company’s performance obligations is transferred to the customer, and associated revenue is recognized, over time. Revenues for these service agreements are recognized over time using an output method based upon the passage of time, as this provides a faithful depiction of the pattern of transfer of control. The Company's performance is impacted by the levels of activity in the marine and land mobile markets, among other factors. Performance in any particular period could be impacted by the timing of sales to certain large customers.The Company offers a comprehensive family of mobile satellite antenna services and products that provide access to the Internet, television, and VoIP services while on the move. Service sales of airtime service accounted for 83% and 79% of the Company's consolidated net sales for the three months ended September 30, 2025 and 2024, respectively, and 80% of the Company's consolidated net sales for both the nine months ended September 30, 2025 and 2024. The balance of service sales are comprised of distribution of commercially licensed entertainment and news, product repairs, and extended warranty sales. Product sales accounted for 11% and 16% of the Company's consolidated net sales for the three months ended September 30, 2025 and 2024, respectively, and 13% and 15% of the Company's