Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-28082 | |
Entity Registrant Name | KVH Industries, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 05-0420589 | |
Entity Address, Address Line One | 50 Enterprise Center | |
Entity Address, City or Town | Middletown | |
Entity Address, State or Province | RI | |
Entity Address, Postal Zip Code | 02842 | |
City Area Code | 401 | |
Local Phone Number | 847-3327 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | KVHI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,894,247 | |
Entity Central Index Key | 0001007587 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 8,036 | $ 11,376 |
Marketable securities | 8,649 | 13,147 |
Accounts receivable, net of allowance for doubtful accounts of $1,374 and $1,636 as of March 31, 2022 and December 31, 2021, respectively | 34,286 | 33,648 |
Inventories, net | 25,665 | 24,640 |
Prepaid expenses and other current assets | 4,251 | 3,789 |
Current contract assets | 1,264 | 1,230 |
Total current assets | 82,151 | 87,830 |
Property and equipment, net | 60,601 | 60,114 |
Intangible assets, net | 1,083 | 1,287 |
Goodwill | 6,509 | 6,570 |
Right of use assets | 2,441 | 3,055 |
Other non-current assets | 6,120 | 6,778 |
Non-current contract assets | 3,126 | 3,104 |
Deferred income tax asset | 56 | 56 |
Total assets | 162,087 | 168,794 |
Current liabilities: | ||
Accounts payable | 10,910 | 11,265 |
Accrued compensation and employee-related expenses | 5,935 | 7,053 |
Accrued other | 6,552 | 7,892 |
Accrued product warranty costs | 1,286 | 1,179 |
Contract liabilities | 4,596 | 3,989 |
Current operating lease liability | 1,571 | 1,912 |
Liability for uncertain tax positions | 608 | 592 |
Total current liabilities | 31,458 | 33,882 |
Other long-term liabilities | 8 | 30 |
Long-term operating lease liability | 941 | 1,224 |
Long-term contract liabilities | 4,435 | 4,466 |
Deferred income tax liability | 210 | 215 |
Total liabilities | 37,052 | 39,817 |
Commitments and contingencies (Notes 2, 10, 12, and 17) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; none issued | 0 | 0 |
Common stock, $0.01 par value. Authorized 30,000,000 shares; 20,327,966 and 20,342,695 shares issued at March 31, 2022 and December 31, 2021, respectively; and 18,895,272 and 18,910,001 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 203 | 203 |
Additional paid-in capital | 157,142 | 156,199 |
Accumulated deficit | (16,857) | (12,165) |
Accumulated other comprehensive loss | (3,602) | (3,409) |
Stockholders equity before treasury stock adjustment | 136,886 | 140,828 |
Less: treasury stock at cost, common stock, 1,432,694 shares as of March 31, 2022 and December 31, 2021 | (11,851) | (11,851) |
Total stockholders’ equity | 125,035 | 128,977 |
Total liabilities and stockholders’ equity | $ 162,087 | $ 168,794 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,374 | $ 1,636 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 20,327,966 | 20,342,695 |
Common stock, shares outstanding (in shares) | 18,895,272 | 18,910,001 |
Treasury stock, shares outstanding (in shares) | 1,432,694 | 1,432,694 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Sales: | ||
Net sales | $ 41,094 | $ 42,292 |
Costs and expenses: | ||
Research and development | 4,649 | 4,567 |
Sales, marketing and support | 8,357 | 7,546 |
General and administrative | 7,075 | 7,143 |
Total costs and expenses | 45,802 | 45,899 |
Loss from operations | (4,708) | (3,607) |
Interest income | 208 | 233 |
Interest expense | 1 | 18 |
Other income (expense), net | 138 | (789) |
Loss before income tax expense (benefit) | (4,363) | (4,181) |
Income tax expense (benefit) | 329 | (153) |
Net loss | $ (4,692) | $ (4,028) |
Net loss per common share | ||
Basic (in USD per share) | $ (0.25) | $ (0.22) |
Diluted (in USD per share) | $ (0.25) | $ (0.22) |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 18,449,000 | 17,938,000 |
Diluted (in shares) | 18,449,000 | 17,938,000 |
Product | ||
Sales: | ||
Net sales | $ 14,370 | $ 18,432 |
Costs and expenses: | ||
Costs of sales | 10,729 | 11,220 |
Service | ||
Sales: | ||
Net sales | 26,724 | 23,860 |
Costs and expenses: | ||
Costs of sales | $ 14,992 | $ 15,423 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (4,692) | $ (4,028) | |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustment | (193) | 223 | |
Other comprehensive (loss) income, net of tax | [1] | (193) | 223 |
Total comprehensive loss | $ (4,885) | $ (3,805) | |
[1] | Tax impact was nominal for all periods. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | |
Beginning balance (in shares) at Dec. 31, 2020 | 19,863,000 | ||||||
Beginning balance at Dec. 31, 2020 | $ 131,884 | $ 199 | $ 149,170 | $ (2,402) | $ (3,232) | $ (11,851) | |
Beginning balance, treasury stock (in shares) at Dec. 31, 2020 | (1,433,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (4,028) | (4,028) | |||||
Other comprehensive income (loss) | 223 | [1] | 223 | ||||
Stock-based compensation | 932 | 932 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 302,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | 1,558 | $ 3 | 1,555 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 20,165,000 | ||||||
Ending balance at Mar. 31, 2021 | $ 130,569 | $ 202 | 151,657 | (6,430) | (3,009) | $ (11,851) | |
Ending balance, treasury stock (in shares) at Mar. 31, 2021 | (1,433,000) | ||||||
Beginning balance (in shares) at Dec. 31, 2021 | 18,910,001 | 20,343,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 128,977 | $ 203 | 156,199 | (12,165) | (3,409) | $ (11,851) | |
Beginning balance, treasury stock (in shares) at Dec. 31, 2021 | (1,432,694) | (1,433,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | $ (4,692) | (4,692) | |||||
Other comprehensive income (loss) | (193) | [1] | (193) | ||||
Stock-based compensation | 881 | 881 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 22,000 | ||||||
Issuance of common stock under employee stock purchase plan | 193 | 193 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | (37,000) | ||||||
Taxes accrued for net share settlement of options | $ (131) | (131) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 18,895,272 | 20,328,000 | |||||
Ending balance at Mar. 31, 2022 | $ 125,035 | $ 203 | $ 157,142 | $ (16,857) | $ (3,602) | $ (11,851) | |
Ending balance, treasury stock (in shares) at Mar. 31, 2022 | (1,432,694) | (1,433,000) | |||||
[1] | Tax impact was nominal for all periods. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (4,692) | $ (4,028) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Provision for doubtful accounts | 120 | 130 |
Depreciation and amortization | 3,567 | 3,350 |
Deferred income taxes | (5) | 0 |
Loss on disposals of fixed assets | 151 | 452 |
Compensation expense related to stock-based awards and employee stock purchase plan | 881 | 932 |
Unrealized currency translation (gain) loss | (50) | 195 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (792) | 3,537 |
Inventories | (1,026) | 1,901 |
Prepaid expenses, other current assets, and current contract assets | (520) | (739) |
Other non-current assets and non-current contract assets | 626 | 930 |
Accounts payable | (7) | (3,219) |
Contract liabilities and long-term contract liabilities | 604 | (613) |
Accrued compensation, product warranty and other | (2,370) | 2,169 |
Other long-term liabilities | 0 | 1 |
Net cash (used in) provided by operating activities | (3,513) | 4,998 |
Cash flows from investing activities: | ||
Capital expenditures | (4,372) | (5,164) |
Cash paid for acquisition of intangible asset | (14) | (16) |
Proceeds from sale of fixed assets | 0 | 100 |
Purchases of marketable securities | (1) | (2) |
Maturities and sales of marketable securities | 4,500 | 0 |
Net cash provided by (used in) investing activities | 113 | (5,082) |
Cash flows from financing activities: | ||
Proceeds from stock options exercised and employee stock purchase plan | 183 | 1,566 |
Payment of finance lease | (66) | (96) |
Net cash provided by financing activities | 117 | 1,470 |
Effect of exchange rate changes on cash and cash equivalents | (57) | 5 |
Net (decrease) increase in cash and cash equivalents | (3,340) | 1,391 |
Cash and cash equivalents at beginning of period | 11,376 | 12,578 |
Cash and cash equivalents at end of period | 8,036 | 13,969 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Changes in accrued other and accounts payable related to property and equipment additions | 46 | 175 |
Taxes accrued for net share settlement of options | $ 131 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business KVH Industries, Inc. (together with its subsidiaries, the Company or KVH) designs, develops, manufactures and markets mobile connectivity products and services for the marine and land markets, and inertial navigation products for both the commercial and defense markets. KVH's reporting segments are as follows: • the mobile connectivity segment and • the inertial navigation segment. KVH’s mobile connectivity products enable customers to receive voice and Internet services, and live digital television via satellite services in marine vessels, recreational vehicles, buses and automobiles. KVH sells its mobile connectivity products through an extensive international network of dealers and distributors. KVH also sells and leases products to service providers and directly to end users. KVH’s mobile connectivity service sales represent primarily sales earned from satellite voice and Internet airtime services. KVH provides, for monthly fixed and usage fees, satellite connectivity services, including broadband Internet, data and Voice over Internet Protocol (VoIP) services, to its TracPhone V-series customers. AgilePlans, a mini-VSAT Broadband service offering, is a monthly subscription model providing global connectivity to commercial maritime customers, including hardware, installation, broadband Internet, VoIP, entertainment and training content and global support for a monthly fee with no minimum commitment. KVH offers AgilePlans customers a variety of airtime data plans with varying data speeds and fixed data usage levels with overage charges per megabyte, which is similar to the plans that the Company offers to its other customers. The Company recognizes the monthly subscription fee as service revenue over the service delivery period. The Company retains ownership of the hardware that it provides to AgilePlans customers, who must return the hardware to KVH if they decide to terminate the service. Because KVH does not sell the hardware under AgilePlans, the Company does not recognize any product revenue when the hardware is deployed to an AgilePlans customer. KVH records the cost of the hardware used by AgilePlans customers as revenue-generating assets and depreciates the cost over an estimated useful life of five years. Since the Company is retaining ownership of the hardware, it does not accrue any warranty costs for AgilePlans hardware; however, any maintenance costs on the hardware are expensed in the period these costs are incurred. Mobile connectivity service sales also include the distribution of commercially licensed entertainment, including news, sports, music, and movies to commercial and leisure customers in the maritime, hotel, and retail markets through the KVH Media Group. KVH also earns monthly usage fees from third-party satellite connectivity services, including voice, data and Internet services, provided to its Inmarsat and Iridium customers who choose to activate their subscriptions with KVH. Mobile connectivity service sales also include engineering services provided under development contracts, sales from product repairs, and extended warranty sales. KVH's inertial navigation products offer precision fiber optic gyro (FOG)-based systems that enable platform and optical stabilization, navigation, pointing and guidance. KVH’s inertial navigation products also include tactical navigation systems that provide uninterrupted access to navigation and pointing information in a variety of military vehicles, including tactical trucks and light armored vehicles. KVH’s inertial navigation products are sold directly to U.S. and foreign governments and government contractors, as well as through an international network of authorized independent sales representatives. In addition, KVH's inertial navigation technology is used in numerous commercial products, such as navigation and positioning systems for various applications including autonomous platforms, precision mapping, dynamic surveying, train location control and track geometry measurement systems, industrial robotics and optical stabilization. KVH’s inertial navigation service sales include product repairs, engineering services provided under development contracts and extended warranty sales. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated interim financial statements of KVH Industries, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company has evaluated all subsequent events through the date of this filing. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated interim financial statements have not been audited by the Company’s independent registered public accounting firm and include all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition, results of operations, and cash flows for the periods presented. These consolidated interim financial statements do not include all disclosures associated with annual financial statements and accordingly should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2021 filed on March 11, 2022 with the Securities and Exchange Commission. The results for the three months ended March 31, 2022 are not necessarily indicative of operating results for the remainder of the year. Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions The preparation of interim financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim financial statements and the reported amounts of sales and expenses during the reporting periods. As described in the Company’s annual report on Form 10-K, the estimates and assumptions used by management affect the Company’s revenue recognition, valuation of accounts receivable, valuation of inventory, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of long-lived assets, including goodwill, amortization methods and periods, certain accrued expenses and other related charges, stock-based compensation, contingent liabilities, forfeitures and key valuation assumptions for its share-based awards, estimated fulfillment costs for warranty obligations, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance, and the valuation of right-of-use assets and lease liabilities. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. On March 7, 2022, the Company announced that its President and Chief Executive Officer, Martin Kits van Heyningen, was retiring from his executive and Board roles after more than 40 years of service and assuming a consulting position with the Company. Brent C. Bruun, its Chief Operating Officer, has been appointed as our interim President and Chief Executive Officer. For the three months ended March 31, 2022, the Company accrued approximately $539 in consulting fess associated with a maximum of 50 hours of transition services through March 2023, which will be paid to Mr. Kits van Heyningen over the next 12 months. The associated expense is included in general and administrative expenses in the accompanying consolidated statements of operations. In addition, the Company agreed to a separation payment of $201, which was inclusive of any amount which he may have otherwise earned under the executive bonus plan for 2021. This amount is still accrued as of March 31, 2022. There were also modifications to Mr. Kits van Heyningen's stock option and restricted stock awards. Please see Note 5 for further discussion. In March 2022, the Company also restructured its operations to reduce costs and better pursue a more focused strategy. The Company reduced its workforce by approximately 10% and expects reduced expenses from these actions beginning in the second quarter of 2022. For the three months ended March 31, 2022, the Company incurred $1,392 in severance and health insurance costs and $327 in legal and advisory fees, of which $913 was paid as of March 31, 2022. The combined expense of $1,719 was included in the financial statement line items of the accompanying consolidated statements of operations as follows: costs of product sales of $16, costs of service sales of $55, research and development of $387, sales, marketing and support of $797, and general and administrative expenses of $464. We expect to incur an additional $467 in severance payments for employees which have a severance date of June 30, 2022. There were also modifications to impacted employee's stock option and restricted stock awards. Please see Note 5 for further discussion. |
Accounting Standards Issued and
Accounting Standards Issued and Not Yet Adopted | 3 Months Ended |
Mar. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Accounting Standards Issued and Not Yet Adopted | Accounting Standards Issued and Not Yet Adopted ASC Update No. 2016-13, ASC Update No. 2018-19, ASC Update No. 2019-04, ASC Update No. 2019-05, ASC Update No. 2019-10, ASC Update No. 2019-11, ASC Update No. 2020-02, and ASC Update No. 2022-02 In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Codification (ASC) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The purpose of Update No. 2016-13 is to replace the incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. In November 2018, the FASB issued ASC Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses . This update introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost. The amendment also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In May 2019, the FASB issued ASC Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . This update introduced clarifications of the Board’s intent with respect to accrued interest, the transfer between classifications or categories for loans and debt securities, recoveries, reinsurance recoverables, projects of interest rate environments for variable-rate financial instruments, costs to sell when foreclosure is probable, consideration of expected prepayments when determining the effective interest rate, vintage disclosures, and extension and renewal options. In May 2019, the FASB issued ASC Update No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief . The amendments in the update ease the transition for entities adopting ASC Update 2016-13 and increase the comparability of financial statement information. With the exception of held-to-maturity debt securities, the amendments allow entities to irrevocably elect to apply the fair value option to financial instruments that were previously recorded at amortized cost basis within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . In November 2019, the FASB issued ASC Update No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. The amendments in this update change some effective dates for certain new accounting standards including those pertaining to Topic 326 discussed above, for certain types of entities. In November 2019, the FASB issued ASC Update No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (Topic 326). The update is effective for entities that have adopted ASU 2016-13. The purpose of Update No. 2019-11 is to clarify the scope of the recovery guidance to purchased financial assets with credit deterioration. In February 2020, the FASB issued ASC Update No. 2020-02, Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842). The purpose of Update No. 2020-02 is to clarify the scope and interpretation of the standard. In March 2022, the FASB issued ASC update 2022-02, Financial Instruments – Credit Losses (Topic 326) – Troubled Debt Restructurings and Vintage Disclosures . The vintage disclosure portion of this guidance is applicable to the Company, which requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must included the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. As a smaller reporting company the effective date for Topic 326 will be the fiscal year beginning after December 15, 2022. The adoption of Update Nos. 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-20 and 2022-02 is not expected to have a material impact on the Company's financial position or results of operations. There are no other recent accounting pronouncements issued by the FASB that the Company expects would have a material impact on the Company's financial statements. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2022 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 Amortized Gross Gross Fair Money market mutual funds $ 8,649 $ — $ — $ 8,649 Total marketable securities designated as available-for-sale $ 8,649 $ — $ — $ 8,649 December 31, 2021 Amortized Gross Gross Fair Money market mutual funds $ 13,147 $ — $ — $ 13,147 Total marketable securities designated as available-for-sale $ 13,147 $ — $ — $ 13,147 Interest income from marketable securities was $1 and $2 during the three months ended March 31, 2022 and 2021, respectively. |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stockholder's Equity | Stockholder's Equity (a) Stock Equity and Incentive Plan The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation . Stock-based compensation expense was $859 and $924, excluding $22 and $8 of compensation charges related to our Amended and Restated 1996 Employee Stock Purchase Plan, or the ESPP, for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there was $2,713 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.12 years. As of March 31, 2022, there was $2,756 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 1.99 years. Stock Options During the three months ended March 31, 2022, upon the net exercise of 230 stock options, the Company issued 23 shares of common stock, 14 shares were surrendered to the Company to satisfy minimum tax withholding obligations, and 193 shares were cancelled. Additionally, during the three months ended March 31, 2022, no stock options were granted and 170 stock options expired, were canceled or were forfeited. During the three months ended March 31, 2021, 496 stock options were granted. The Company has estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions utilized to determine the fair value of options granted during the three months ended March 31, 2021 are as follows: Three Months Ended March 31, 2021 Risk-free interest rate 0.92 % Expected volatility 44.98 % Expected life (in years) 4.28 Dividend yield 0 % During the three months ended March 31, 2022, there were accelerated vesting and extended exercised term modifications of stock options as it related to the retirement of Mr. Kits van Heyningen, which resulted in a reduction of approximately $85 in compensation cost. During the three months ended March 31, 2022, there were accelerated vesting term modifications of stock options for employees terminated as part of the Company's restructuring, which resulted in a reduction of approximately $81 in compensation cost. As of March 31, 2022, there were 1,727 options outstanding with a weighted average exercise price of $10.23 per share and 771 options exercisable with a weighted average exercise price of $10.36 per share. Restricted Stock During the three months ended March 31, 2022, no shares of restricted stock were granted and 60 shares of restricted stock were forfeited. Additionally, during the three months ended March 31, 2022, 68 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. As of March 31, 2022, there were 362 shares of restricted stock outstanding that were still subject to service-based vesting conditions. During the three months ended March 31, 2022, there were accelerated vesting term modifications of restricted stock as it related to the retirement of Mr. Kits van Heyningen, which resulted in an acceleration in compensation expense of approximately $186. During the three months ended March 31, 2022, there were accelerated vesting term modifications of restricted stock for employees terminated as part of the Company's restructuring, which resulted in an acceleration in compensation expense of approximately $57. As of March 31, 2022, the Company had no unvested outstanding options and no outstanding shares of restricted stock that were subject to performance-based or market-based vesting conditions. (b) Employee Stock Purchase Plan The Company's ESPP affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the three months ended March 31, 2022 and 2021, 22 and 0 shares were issued under the ESPP plan, respectively. The Company recorded compensation charges related to the ESPP of $22 and $8 for the three months ended March 31, 2022 and 2021, respectively. (c) Stock-Based Compensation Expense The following table presents stock-based compensation expense, including under the ESPP, in the Company's consolidated statements of operations for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Cost of product sales $ 74 $ 46 Cost of service sales 2 2 Research and development 141 156 Sales, marketing and support 186 190 General and administrative 478 538 $ 881 $ 932 (d) Accumulated Other Comprehensive Loss (AOCI) Comprehensive loss includes net loss and unrealized gains and losses from foreign currency translation. The components of the Company’s comprehensive loss and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive loss. The balances for the three months ended March 31, 2022 and 2021 are as follows: Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, December 31, 2021 $ (3,409) $ (3,409) Other comprehensive loss (193) (193) Net other comprehensive loss (193) (193) Balance, March 31, 2022 $ (3,602) $ (3,602) Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, December 31, 2020 $ (3,232) $ (3,232) Other comprehensive income 223 223 Net other comprehensive income 223 223 Balance, March 31, 2021 $ (3,009) $ (3,009) |
Net Loss per Common Share
Net Loss per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per share incorporates the dilutive effect of common stock equivalent options, warrants and other convertible securities, if any, as determined with the treasury stock accounting method. For the three months ended March 31, 2022 and 2021, since there was a net loss, the Company excluded all 1,861 and 520, respectively, in outstanding stock options and non-vested restricted shares from its diluted loss per share calculation, as inclusion of these securities would have reduced the net loss per share. A reconciliation of the basic and diluted weighted average common shares outstanding is as follows: Three Months Ended March 31, 2022 2021 Weighted average common shares outstanding—basic 18,449 17,938 Dilutive common shares issuable in connection with stock plans — — Weighted average common shares outstanding—diluted 18,449 17,938 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net are stated at the lower of cost and net realizable value using the first-in first-out costing method. Inventories as of March 31, 2022 and December 31, 2021 include the costs of material, labor, and factory overhead. Components of inventories consist of the following: March 31, December 31, Raw materials $ 15,831 $ 15,772 Work in process 4,481 4,035 Finished goods 5,353 4,833 $ 25,665 $ 24,640 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, as of March 31, 2022 and December 31, 2021 consist of the following: March 31, December 31, Land $ 3,828 $ 3,828 Building and improvements 24,271 24,271 Leasehold improvements 471 472 Machinery and equipment 16,947 16,790 Revenue-generating assets 66,109 63,587 Office and computer equipment 15,976 15,395 Motor vehicles 31 31 127,633 124,374 Less accumulated depreciation (67,032) (64,260) $ 60,601 $ 60,114 Depreciation expense was $3,373 and $3,074 for the three months ended March 31, 2022 and 2021, respectively. Certain revenue-generating hardware assets are utilized by the Company in the delivery of the Company's airtime services, media and other content. |
Product Warranty
Product Warranty | 3 Months Ended |
Mar. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty The Company’s products carry standard limited warranties that range from one The following table summarizes product warranty activity during 2022 and 2021: Three Months Ended March 31, 2022 2021 Beginning balance $ 1,179 $ 1,812 Charges to expense 279 61 Costs incurred (172) (239) Ending balance $ 1,286 $ 1,634 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Paycheck Protection Program Loan In May 2020, the Company received a $6,927 loan (the PPP Loan) from Bank of America, N.A., (the Lender) under the Paycheck Protection Program (PPP), which was established under the Coronavirus Aid, Relief, and Economic Security Act (as modified by the Paycheck Protection Flexibility Act of 2020, the CARES Act) and is administered by the U.S. Small Business Administration (the SBA). The term of the PPP Loan was two years from the funding date, and the interest rate was 1.00%. Interest on the loan accrued from the funding date, but was deferred. In August 2021, the Company applied for forgiveness of the full amount of the PPP Loan. On September 24, 2021, the Company received notification from the Lender that, on September 19, 2021, the SBA had determined that the PPP Loan forgiveness application was approved, and the PPP Loan, including all accrued interest thereon, was paid in full by the SBA. Line of Credit Effective October 30, 2018, the Company entered into an amended and restated three-year senior secured credit facility agreement (the 2018 Credit Agreement) with Bank of America, N.A., as Administrative Agent, and the lenders named from time to time as parties thereto (the 2018 Lenders), which included a reducing revolving credit facility (the 2018 Revolver) of up to $20,000 initially and reducing to $15,000 on December 31, 2019, to be used for general corporate purposes. The Company's obligations under the 2018 Credit Agreement are secured by substantially all of its assets and the pledge of equity interests in certain of its subsidiaries. As of March 31, 2022, no amounts were outstanding under the 2018 Revolver. Borrowings under the 2018 Revolver are subject to the satisfaction of various conditions precedent at the time of each borrowing, including the continued accuracy of the Company’s representations and warranties and the absence of any default under the 2018 Credit Agreement. As of March 31, 2022, the Company was only able to drawn on $12,400 of the $15,000 facility due to covenant restrictions. The 2018 Credit Agreement contained two financial covenants, a maximum Consolidated Leverage Ratio and a minimum Consolidated Fixed Charge Coverage Ratio, each as defined in the 2018 Credit Agreement. The Consolidated Leverage Ratio could not exceed 2.50:1.00 through December 31, 2020 and may not exceed 2.00:1.00 after December 31, 2020. The Consolidated Fixed Charge Coverage Ratio may not be less than 1.25:1.00. On July 30, 2020, the Company amended the 2018 Credit Agreement to reflect the incurrence of the PPP Loan. Under the amended facility, the principal and interest on the PPP Loan were not included in the maximum Consolidated Leverage Ratio or the minimum Consolidated Fixed Charge Coverage Ratio calculations except as to any portion of the PPP Loan that is not ultimately forgiven. In September 2021, the PPP Loan was forgiven in full. On October 29, 2021, the Company amended the 2018 Credit Agreement to maintain the $15,000 2018 Revolver, extend the maturity date of the 2018 Revolver to October 28, 2022, eliminate the Consolidated Fixed Charge Coverage Ratio financial covenant, add a minimum trailing four-quarter Consolidated Adjusted EBITDA financial covenant of $3,000, modify the definition of Consolidated Adjusted EBITDA, modify the interest rate margins and certain lender fees, and transition the interest rate provisions based on LIBOR to the Bloomberg Short Term Bank Yield Index. In addition, Bank of America became the sole lender under the 2018 Credit Agreement. The Company was in compliance with these financial covenants as of March 31, 2022. The 2018 Credit Agreement imposes certain other affirmative and negative covenants, including without limitation covenants with respect to the payment of taxes and other obligations, compliance with laws, performance of material contracts, creation of liens, incurrence of indebtedness, investments, dispositions, fundamental changes, restricted payments, changes in the nature of the Company’s business, transactions with affiliates, corporate and accounting changes, and sale and leaseback arrangements. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company's reportable segments are mobile connectivity and inertial navigation. The financial results of each segment are based on revenues from external customers, costs of revenue and operating expenses that are directly attributable to the segment and an allocation of costs from shared functions. These shared functions include, but are not limited to, facilities, human resources, information technology, and engineering. Allocations are made based on management’s judgment of the most relevant factors, such as head count, number of customer sites, or other operational data that contribute to the shared costs. Certain corporate-level costs have not been allocated as they are not directly attributable to either segment. These costs primarily consist of broad corporate functions, including executive, legal, finance, and costs associated with corporate actions. Segment-level asset information has not been provided as such information is not reviewed by the chief operating decision-maker for purposes of assessing segment performance and allocating resources. There are no significant inter-segment sales or transactions. The Company's performance is impacted by the levels of activity in the marine and land mobile markets and defense sectors, among others. Performance in any particular period could be impacted by the timing of sales to certain large customers. The mobile connectivity segment primarily manufactures and distributes a comprehensive family of mobile satellite antenna products and services that provide access to television, the Internet and voice services while on the move. Product sales within the mobile connectivity segment accounted for 16% of the Company's consolidated net sales for both the three months ended March 31, 2022 and 2021. Service sales of mini-VSAT Broadband airtime service accounted for 58% and 51% of the Company's consolidated net sales for the three months ended March 31, 2022 and 2021, respectively. The inertial navigation segment manufactures and distributes a portfolio of digital compass and fiber optic gyro (FOG)-based systems that address the rigorous requirements of military and commercial customers and provide reliable, easy-to-use and continuously available navigation and pointing data. The principal product categories in this segment include the FOG-based inertial measurement units (IMUs) for precision guidance, FOGs for tactical navigation as well as pointing and stabilization systems, and digital compasses that provide accurate heading information for demanding applications, security, automation and access control equipment and systems. Sales of FOG-based guidance and navigation systems within the inertial navigation segment accounted for 17% and 14% of the Company's consolidated net sales for the three months ended March 31, 2022 and 2021, respectively. TACNAV product sales accounted for 2% and 12% of the Company's consolidated net sales for the three months ended March 31, 2022 and 2021, respectively No other single product class accounts for 10% or more of the Company's consolidated net sales. The Company operates in a number of major geographic areas, including internationally. Revenues from international locations primarily include Canada, European Union countries, and other European countries, as well as countries in Africa, Asia/Pacific, the Middle East, and India. Revenues are based upon customer location and internationally represented 64% and 62% of consolidated net sales for the three months ended March 31, 2022 and 2021, respectively. Sales to Singapore customers represented 12% and 10% of the Company's consolidated net sales for the three months ended March 31, 2022 and 2021, respectively. No other individual foreign country represented 10% or more of the Company's consolidated net sales for the three months ended March 31, 2022 and 2021. As of March 31, 2022 and December 31, 2021, the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets. Net sales and operating income (loss) for the Company's reporting segments and the Company's loss before income tax expense (benefit) for the three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 Net sales: Mobile connectivity $ 33,151 $ 30,507 Inertial navigation 7,943 11,785 Consolidated net sales $ 41,094 $ 42,292 Operating income (loss): Mobile connectivity $ 1,305 $ (397) Inertial navigation (460) 2,090 Subtotal 845 1,693 Unallocated, net (5,553) (5,300) Loss from operations (4,708) (3,607) Net interest and other income (expense), net 345 (574) Loss before income tax expense (benefit) $ (4,363) $ (4,181) Depreciation expense and amortization expense for the Company's reporting segments for the three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 Depreciation expense: Mobile connectivity $ 2,892 $ 2,521 Inertial navigation 308 384 Unallocated 173 169 Total consolidated depreciation expense $ 3,373 $ 3,074 Amortization expense: Mobile connectivity $ 194 $ 276 Inertial navigation — — Unallocated — — Total consolidated amortization expense $ 194 $ 276 |
Legal Matters
Legal Matters | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters In the ordinary course of business, the Company is a party to inquiries, legal proceedings and claims including, from time to time, disagreements with vendors and customers. The Company is not a party to any lawsuit or proceeding that, in management's opinion, is likely to materially harm the Company's business, results of operations, financial condition, or cash flows. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company has no Level 2 assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 assets. Assets and liabilities measured at fair value are based on the valuation techniques identified in the table below. The following tables present financial assets and liabilities at March 31, 2022 and December 31, 2021 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy: March 31, 2022 Total Level 1 Level 2 Level 3 Valuation Assets Money market mutual funds $ 8,649 $ 8,649 $ — $ — (a) December 31, 2021 Total Level 1 Level 2 Level 3 Valuation Assets Money market mutual funds $ 13,147 $ 13,147 $ — $ — (a) (a) Market approach—prices and other relevant information generated by market transactions involving identical or comparable assets. The carrying amount of certain financial instruments approximates fair value due to their short-term, highly liquid nature. These instruments include cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of the Company's operating and financing lease liabilities approximates fair value based on currently available quoted rates of similarly structured borrowings. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company's non-financial assets, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and subsequently re-measured if indications of impairment exist. There was no impairment of the Company's non-financial assets noted as of March 31, 2022. The Company does not have any liabilities that are recorded at fair value on a non-recurring basis. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth the changes in the carrying amount of goodwill for the three months ended March 31, 2022: Amounts Balance at December 31, 2021 $ 6,570 Foreign currency translation adjustment (61) Balance at March 31, 2022 $ 6,509 Intangible Assets The changes in the carrying amount of intangible assets during the three months ended March 31, 2022 are as follows: Amounts Balance at December 31, 2021 $ 1,287 Amortization expense (194) Intangible assets acquired in asset acquisition 14 Foreign currency translation adjustment (24) Balance at March 31, 2022 $ 1,083 Intangible assets arose from the acquisition of KVH Media Group (acquired as Headland Media Limited) in May 2013. These intangible assets are being amortized on a straight-line basis over the estimated useful life of 10 years for acquired subscriber relationships. The intangible assets were recorded in pounds sterling and fluctuations in exchange rates cause these amounts to increase or decrease from time to time. 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 , which the Company adopted on October 1, 2016. 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. As of March 31, 2022, the carrying value of the intangible assets acquired in the asset acquisition was $422. As the acquisition did not represent a business combination, the contingent consideration arrangement is recognized only when the contingency is resolved and the consideration is paid or becomes payable. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships. An additional $14 and $16 of consideration was earned under the contingent consideration arrangement during the three months ended March 31, 2022 and 2021, respectively. Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at March 31, 2022 and December 31, 2021, respectively: Gross Carrying Amount Accumulated Amortization Net Carrying Value March 31, 2022 Subscriber relationships $ 8,023 $ 6,940 $ 1,083 Distribution rights 315 315 — Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 11,221 $ 10,138 $ 1,083 December 31, 2021 Subscriber relationships $ 8,033 $ 6,746 $ 1,287 Distribution rights 315 315 — Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 11,231 $ 9,944 $ 1,287 Amortization expense related to intangible assets was $194 and $276 for the three months ended March 31, 2022 and 2021, respectively. Amortization expense was categorized as general and administrative expense. As of March 31, 2022, the total weighted average remaining useful lives of the definite-lived intangible assets was 1.3 years. Estimated future amortization expense remaining at March 31, 2022 for intangible assets acquired was as follows: Years ending December 31, Remainder of 2022 $ 573 2023 311 2024 63 2025 63 2026 63 Thereafter 10 Total future amortization expense $ 1,083 For definite-lived intangible assets, the Company assesses the carrying value of these assets whenever events or circumstances indicate that the carrying value may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset, or asset group, to the future undiscounted cash flows expected to be generated by the asset, or asset group. There were no events or changes in circumstances during the first quarter of 2022 which indicated that an assessment of the impairment of goodwill and intangible assets was required. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (ASC 606) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers (ASC 606) | Revenue from Contracts with Customers (ASC 606) 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 Revenue The following table summarizes net sales from contracts with customers for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Mobile connectivity product, transferred at point in time $ 6,107 $ 6,088 Mobile connectivity product, transferred over time 456 803 Mobile connectivity service 26,588 23,616 Inertial navigation product 7,807 11,541 Inertial navigation service 136 244 Total net sales $ 41,094 $ 42,292 Revenue recognized during the three months ended March 31, 2022 and 2021 from amounts included in contract liabilities at the beginning of the period was $452 and $773, respectively. For mobile connectivity product sales, the delivery of the Company’s performance obligations are generally transferred to the customer, and associated revenue is recognized, at a point in time, with the exception of certain mini-VSAT contracts which are transferred to customers over time. For mobile connectivity service sales, the delivery of the Company’s performance obligations are transferred to the customer, and associated revenue is recognized, over time. For inertial navigation product sales, the delivery of the Company’s performance obligations are generally transferred to the customer, and associated revenue is recognized, at a point in time. For inertial navigation service sales, the Company's performance obligations are generally transferred to customers, and associated revenue is recognized, over time. Business and Credit Concentrations Concentrations of risk with respect to trade accounts receivable are generally limited due to the large number of customers and their dispersion across several geographic areas. Although the Company does not foresee that credit risk associated with these receivables will deviate from historical experience, repayment is dependent upon the financial stability of those individual customers. The Company establishes allowances for potential bad debts and evaluates, on a monthly basis, the adequacy of those reserves based upon historical experience and its expectations for future collectability concerns. The Company performs ongoing credit evaluations of the financial condition of its customers and generally does not require collateral. No single customer accounted for 10% or more of consolidated net sales for the three months ended March 31, 2022 or 2021 or accounts receivable at March 31, 2022 or December 31, 2021. Certain components from third parties used in the Company’s products are procured from single sources of supply. The failure of a supplier, including a subcontractor, to deliver on schedule could delay or interrupt the Company’s delivery of products and thereby materially adversely affect the Company’s revenues and operating results. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three months ended March 31, 2022 was (7.5)% compared with 3.7% for the corresponding period in the prior year. The effective income tax rate is based on estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable periods, including retroactive changes in tax legislation, settlements of tax audits or assessments, and the resolution or identification of tax position uncertainties. For the three months ended March 31, 2022 and 2021, the effective tax rates were lower than the statutory tax rate primarily due to the Company maintaining a valuation allowance reserve on its US deferred tax assets and to the composition of income from foreign jurisdictions taxed at lower rates. As of March 31, 2022 and December 31, 2021, the Company had reserves for uncertain tax positions of $608 and $592, respectively. There were no material changes during the three months ended March 31, 2022 to the Company’s reserve for uncertain tax positions. The Company estimates that it is reasonably possible that the balance of unrecognized tax benefits as of March 31, 2022 may decrease $19 in the next twelve months as a result of a lapse of statutes of limitations and settlements with taxing authorities. The Company’s tax jurisdictions include the United States, the United Kingdom, Denmark, Cyprus, Norway, Brazil, Singapore, Japan and India. In general, the statute of limitations with respect to the Company's United States federal income taxes has expired for years prior to 2018, and the relevant state and foreign statutes vary. However, preceding years remain open to examination by United States federal and state and foreign taxing authorities to the extent of future utilization of net operating losses and research and development tax credits generated in each preceding year. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $544 and $977 for the three months ended March 31, 2022 and 2021, respectively. Short-term operating lease costs were $55 and $57 for the three months ended March 31, 2022 and 2021, respectively. Sublease income was $35 and $34 for the three months ended March 31, 2022 and 2021, respectively. Maturities of lease liabilities as of March 31, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows: Remainder of 2022 $ 1,456 2023 780 2024 392 2025 14 Total minimum lease payments $ 2,642 Less amount representing interest $ (130) Present value of net minimum operating lease payments $ 2,512 Less current installments of obligation under current-operating lease liabilities $ 1,571 Obligations under long-term operating lease liabilities, excluding current installments $ 941 Weighted-average remaining lease term - operating leases (years) 1.74 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. During the first quarter of 2021, the terms of this lease were adjusted and the Company discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of March 31, 2022, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $755, respectively. The obligation under capital leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for the remaining capital assets was $45 for both the three months ended March 31, 2022 and 2021. The future minimum lease payments under this financing lease as of March 31, 2022 are: Remainder of 2022 $ 198 2023 22 Total minimum lease payments $ 220 Less amount representing interest $ (2) Present value of net minimum financing lease payments $ 218 Less current installments of obligation under accrued other $ 218 Obligations under other long-term liabilities, excluding current installments $ — Weighted-average remaining lease term - finance leases (years) 0.92 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as product revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three The current portion of the net investment in these leases was $3,813 as of March 31, 2022 and the non-current portion of the net investment in these leases was $6,119 as of March 31, 2022. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $207 and $231 during the three months ended March 31, 2022 and 2021, respectively. The future undiscounted cash flows from these leases as of March 31, 2022 are: Remainder of 2022 $ 3,487 2023 3,526 2024 2,598 2025 1,214 2026 393 2027 7 Total undiscounted cash flows $ 11,225 Present value of lease payments $ 9,932 Difference between undiscounted cash flows and discounted cash flows $ 1,293 In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases. As of March 31, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,735 and $236, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $82 for the three months ended March 31, 2022. Lease revenue recognized was $126 for the three months ended March 31, 2022. As of March 31, 2022, minimum future lease payments to be recognized on the operating leases are as follows: 2022 $ 396 2023 527 2024 321 2025 13 Total $ 1,257 |
Leases | Leases Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $544 and $977 for the three months ended March 31, 2022 and 2021, respectively. Short-term operating lease costs were $55 and $57 for the three months ended March 31, 2022 and 2021, respectively. Sublease income was $35 and $34 for the three months ended March 31, 2022 and 2021, respectively. Maturities of lease liabilities as of March 31, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows: Remainder of 2022 $ 1,456 2023 780 2024 392 2025 14 Total minimum lease payments $ 2,642 Less amount representing interest $ (130) Present value of net minimum operating lease payments $ 2,512 Less current installments of obligation under current-operating lease liabilities $ 1,571 Obligations under long-term operating lease liabilities, excluding current installments $ 941 Weighted-average remaining lease term - operating leases (years) 1.74 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. During the first quarter of 2021, the terms of this lease were adjusted and the Company discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of March 31, 2022, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $755, respectively. The obligation under capital leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for the remaining capital assets was $45 for both the three months ended March 31, 2022 and 2021. The future minimum lease payments under this financing lease as of March 31, 2022 are: Remainder of 2022 $ 198 2023 22 Total minimum lease payments $ 220 Less amount representing interest $ (2) Present value of net minimum financing lease payments $ 218 Less current installments of obligation under accrued other $ 218 Obligations under other long-term liabilities, excluding current installments $ — Weighted-average remaining lease term - finance leases (years) 0.92 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as product revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three The current portion of the net investment in these leases was $3,813 as of March 31, 2022 and the non-current portion of the net investment in these leases was $6,119 as of March 31, 2022. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $207 and $231 during the three months ended March 31, 2022 and 2021, respectively. The future undiscounted cash flows from these leases as of March 31, 2022 are: Remainder of 2022 $ 3,487 2023 3,526 2024 2,598 2025 1,214 2026 393 2027 7 Total undiscounted cash flows $ 11,225 Present value of lease payments $ 9,932 Difference between undiscounted cash flows and discounted cash flows $ 1,293 In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases. As of March 31, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,735 and $236, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $82 for the three months ended March 31, 2022. Lease revenue recognized was $126 for the three months ended March 31, 2022. As of March 31, 2022, minimum future lease payments to be recognized on the operating leases are as follows: 2022 $ 396 2023 527 2024 321 2025 13 Total $ 1,257 |
Leases | Leases Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $544 and $977 for the three months ended March 31, 2022 and 2021, respectively. Short-term operating lease costs were $55 and $57 for the three months ended March 31, 2022 and 2021, respectively. Sublease income was $35 and $34 for the three months ended March 31, 2022 and 2021, respectively. Maturities of lease liabilities as of March 31, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows: Remainder of 2022 $ 1,456 2023 780 2024 392 2025 14 Total minimum lease payments $ 2,642 Less amount representing interest $ (130) Present value of net minimum operating lease payments $ 2,512 Less current installments of obligation under current-operating lease liabilities $ 1,571 Obligations under long-term operating lease liabilities, excluding current installments $ 941 Weighted-average remaining lease term - operating leases (years) 1.74 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. During the first quarter of 2021, the terms of this lease were adjusted and the Company discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of March 31, 2022, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $755, respectively. The obligation under capital leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for the remaining capital assets was $45 for both the three months ended March 31, 2022 and 2021. The future minimum lease payments under this financing lease as of March 31, 2022 are: Remainder of 2022 $ 198 2023 22 Total minimum lease payments $ 220 Less amount representing interest $ (2) Present value of net minimum financing lease payments $ 218 Less current installments of obligation under accrued other $ 218 Obligations under other long-term liabilities, excluding current installments $ — Weighted-average remaining lease term - finance leases (years) 0.92 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as product revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three The current portion of the net investment in these leases was $3,813 as of March 31, 2022 and the non-current portion of the net investment in these leases was $6,119 as of March 31, 2022. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $207 and $231 during the three months ended March 31, 2022 and 2021, respectively. The future undiscounted cash flows from these leases as of March 31, 2022 are: Remainder of 2022 $ 3,487 2023 3,526 2024 2,598 2025 1,214 2026 393 2027 7 Total undiscounted cash flows $ 11,225 Present value of lease payments $ 9,932 Difference between undiscounted cash flows and discounted cash flows $ 1,293 In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases. As of March 31, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,735 and $236, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $82 for the three months ended March 31, 2022. Lease revenue recognized was $126 for the three months ended March 31, 2022. As of March 31, 2022, minimum future lease payments to be recognized on the operating leases are as follows: 2022 $ 396 2023 527 2024 321 2025 13 Total $ 1,257 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn April 29, 2022, KVH Media Group Limited, the Company's wholly owned subsidiary, closed on a stock sale of its subsidiary KVH Media Group Entertainment Limited, which is in the KVH Media Group reporting unit of its mobile connectivity segment for net proceeds of approximately $2,500. This transaction did not meet the criteria as an asset held for sale or a discontinued operation under ASC 205-20. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated interim financial statements of KVH Industries, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company has evaluated all subsequent events through the date of this filing. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions | Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions The preparation of interim financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim financial statements and the reported amounts of sales and expenses during the reporting periods. As described in the Company’s annual report on Form 10-K, the estimates and assumptions used by management affect the Company’s revenue recognition, valuation of accounts receivable, valuation of inventory, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of long-lived assets, including goodwill, amortization methods and periods, certain accrued expenses and other related charges, stock-based compensation, contingent liabilities, forfeitures and key valuation assumptions for its share-based awards, estimated fulfillment costs for warranty obligations, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance, and the valuation of right-of-use assets and lease liabilities. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. On March 7, 2022, the Company announced that its President and Chief Executive Officer, Martin Kits van Heyningen, was retiring from his executive and Board roles after more than 40 years of service and assuming a consulting position with the Company. Brent C. Bruun, its Chief Operating Officer, has been appointed as our interim President and Chief Executive Officer. For the three months ended March 31, 2022, the Company accrued approximately $539 in consulting fess associated with a maximum of 50 hours of transition services through March 2023, which will be paid to Mr. Kits van Heyningen over the next 12 months. The associated expense is included in general and administrative expenses in the accompanying consolidated statements of operations. In addition, the Company agreed to a separation payment of $201, which was inclusive of any amount which he may have otherwise earned under the executive bonus plan for 2021. This amount is still accrued as of March 31, 2022. There were also modifications to Mr. Kits van Heyningen's stock option and restricted stock awards. Please see Note 5 for further discussion. In March 2022, the Company also restructured its operations to reduce costs and better pursue a more focused strategy. The Company reduced its workforce by approximately 10% and expects reduced expenses from these actions beginning in the second quarter of 2022. For the three months ended March 31, 2022, the Company incurred $1,392 in severance and health insurance costs and $327 in legal and advisory fees, of which $913 was paid as of March 31, 2022. The combined expense of $1,719 was included in the financial statement line items of the accompanying consolidated statements of operations as follows: costs of product sales of $16, costs of service sales of $55, research and development of $387, sales, marketing and support of $797, and general and administrative expenses of $464. We expect to incur an additional $467 in severance payments for employees which have a severance date of June 30, 2022. There were also modifications to impacted employee's stock option and restricted stock awards. Please see Note 5 for further discussion. |
Accounting Standards Issued and Not Yet Adopted | Accounting Standards Issued and Not Yet Adopted ASC Update No. 2016-13, ASC Update No. 2018-19, ASC Update No. 2019-04, ASC Update No. 2019-05, ASC Update No. 2019-10, ASC Update No. 2019-11, ASC Update No. 2020-02, and ASC Update No. 2022-02 In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Codification (ASC) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The purpose of Update No. 2016-13 is to replace the incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. In November 2018, the FASB issued ASC Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses . This update introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost. The amendment also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In May 2019, the FASB issued ASC Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . This update introduced clarifications of the Board’s intent with respect to accrued interest, the transfer between classifications or categories for loans and debt securities, recoveries, reinsurance recoverables, projects of interest rate environments for variable-rate financial instruments, costs to sell when foreclosure is probable, consideration of expected prepayments when determining the effective interest rate, vintage disclosures, and extension and renewal options. In May 2019, the FASB issued ASC Update No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief . The amendments in the update ease the transition for entities adopting ASC Update 2016-13 and increase the comparability of financial statement information. With the exception of held-to-maturity debt securities, the amendments allow entities to irrevocably elect to apply the fair value option to financial instruments that were previously recorded at amortized cost basis within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . In November 2019, the FASB issued ASC Update No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. The amendments in this update change some effective dates for certain new accounting standards including those pertaining to Topic 326 discussed above, for certain types of entities. In November 2019, the FASB issued ASC Update No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (Topic 326). The update is effective for entities that have adopted ASU 2016-13. The purpose of Update No. 2019-11 is to clarify the scope of the recovery guidance to purchased financial assets with credit deterioration. In February 2020, the FASB issued ASC Update No. 2020-02, Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842). The purpose of Update No. 2020-02 is to clarify the scope and interpretation of the standard. In March 2022, the FASB issued ASC update 2022-02, Financial Instruments – Credit Losses (Topic 326) – Troubled Debt Restructurings and Vintage Disclosures . The vintage disclosure portion of this guidance is applicable to the Company, which requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must included the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. As a smaller reporting company the effective date for Topic 326 will be the fiscal year beginning after December 15, 2022. The adoption of Update Nos. 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-20 and 2022-02 is not expected to have a material impact on the Company's financial position or results of operations. There are no other recent accounting pronouncements issued by the FASB that the Company expects would have a material impact on the Company's financial statements. |
Stock Equity and Incentive Plan | The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation |
Fair Value Measurement | ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company has no Level 2 assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 assets. Assets and liabilities measured at fair value are based on the valuation techniques identified in the table below. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable securities as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 Amortized Gross Gross Fair Money market mutual funds $ 8,649 $ — $ — $ 8,649 Total marketable securities designated as available-for-sale $ 8,649 $ — $ — $ 8,649 December 31, 2021 Amortized Gross Gross Fair Money market mutual funds $ 13,147 $ — $ — $ 13,147 Total marketable securities designated as available-for-sale $ 13,147 $ — $ — $ 13,147 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of share-based payment award, stock options, valuation assumptions | The weighted average assumptions utilized to determine the fair value of options granted during the three months ended March 31, 2021 are as follows: Three Months Ended March 31, 2021 Risk-free interest rate 0.92 % Expected volatility 44.98 % Expected life (in years) 4.28 Dividend yield 0 % |
Schedule of share-based compensation, employee stock purchase plan | The following table presents stock-based compensation expense, including under the ESPP, in the Company's consolidated statements of operations for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Cost of product sales $ 74 $ 46 Cost of service sales 2 2 Research and development 141 156 Sales, marketing and support 186 190 General and administrative 478 538 $ 881 $ 932 |
Schedule of accumulated other comprehensive income (loss) | The balances for the three months ended March 31, 2022 and 2021 are as follows: Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, December 31, 2021 $ (3,409) $ (3,409) Other comprehensive loss (193) (193) Net other comprehensive loss (193) (193) Balance, March 31, 2022 $ (3,602) $ (3,602) Foreign Currency Translation Total Accumulated Other Comprehensive Loss Balance, December 31, 2020 $ (3,232) $ (3,232) Other comprehensive income 223 223 Net other comprehensive income 223 223 Balance, March 31, 2021 $ (3,009) $ (3,009) |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted weighted average common shares outstanding | A reconciliation of the basic and diluted weighted average common shares outstanding is as follows: Three Months Ended March 31, 2022 2021 Weighted average common shares outstanding—basic 18,449 17,938 Dilutive common shares issuable in connection with stock plans — — Weighted average common shares outstanding—diluted 18,449 17,938 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Components of inventories consist of the following: March 31, December 31, Raw materials $ 15,831 $ 15,772 Work in process 4,481 4,035 Finished goods 5,353 4,833 $ 25,665 $ 24,640 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net, as of March 31, 2022 and December 31, 2021 consist of the following: March 31, December 31, Land $ 3,828 $ 3,828 Building and improvements 24,271 24,271 Leasehold improvements 471 472 Machinery and equipment 16,947 16,790 Revenue-generating assets 66,109 63,587 Office and computer equipment 15,976 15,395 Motor vehicles 31 31 127,633 124,374 Less accumulated depreciation (67,032) (64,260) $ 60,601 $ 60,114 |
Product Warranty (Tables)
Product Warranty (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Summary of product warranty activity | The following table summarizes product warranty activity during 2022 and 2021: Three Months Ended March 31, 2022 2021 Beginning balance $ 1,179 $ 1,812 Charges to expense 279 61 Costs incurred (172) (239) Ending balance $ 1,286 $ 1,634 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of operations by geographic segment | Net sales and operating income (loss) for the Company's reporting segments and the Company's loss before income tax expense (benefit) for the three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 Net sales: Mobile connectivity $ 33,151 $ 30,507 Inertial navigation 7,943 11,785 Consolidated net sales $ 41,094 $ 42,292 Operating income (loss): Mobile connectivity $ 1,305 $ (397) Inertial navigation (460) 2,090 Subtotal 845 1,693 Unallocated, net (5,553) (5,300) Loss from operations (4,708) (3,607) Net interest and other income (expense), net 345 (574) Loss before income tax expense (benefit) $ (4,363) $ (4,181) Depreciation expense and amortization expense for the Company's reporting segments for the three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 Depreciation expense: Mobile connectivity $ 2,892 $ 2,521 Inertial navigation 308 384 Unallocated 173 169 Total consolidated depreciation expense $ 3,373 $ 3,074 Amortization expense: Mobile connectivity $ 194 $ 276 Inertial navigation — — Unallocated — — Total consolidated amortization expense $ 194 $ 276 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on recurring basis | The following tables present financial assets and liabilities at March 31, 2022 and December 31, 2021 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy: March 31, 2022 Total Level 1 Level 2 Level 3 Valuation Assets Money market mutual funds $ 8,649 $ 8,649 $ — $ — (a) December 31, 2021 Total Level 1 Level 2 Level 3 Valuation Assets Money market mutual funds $ 13,147 $ 13,147 $ — $ — (a) (a) Market approach—prices and other relevant information generated by market transactions involving identical or comparable assets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table sets forth the changes in the carrying amount of goodwill for the three months ended March 31, 2022: Amounts Balance at December 31, 2021 $ 6,570 Foreign currency translation adjustment (61) Balance at March 31, 2022 $ 6,509 |
Schedule of finite-lived intangible assets | The changes in the carrying amount of intangible assets during the three months ended March 31, 2022 are as follows: Amounts Balance at December 31, 2021 $ 1,287 Amortization expense (194) Intangible assets acquired in asset acquisition 14 Foreign currency translation adjustment (24) Balance at March 31, 2022 $ 1,083 Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at March 31, 2022 and December 31, 2021, respectively: Gross Carrying Amount Accumulated Amortization Net Carrying Value March 31, 2022 Subscriber relationships $ 8,023 $ 6,940 $ 1,083 Distribution rights 315 315 — Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 11,221 $ 10,138 $ 1,083 December 31, 2021 Subscriber relationships $ 8,033 $ 6,746 $ 1,287 Distribution rights 315 315 — Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 11,231 $ 9,944 $ 1,287 |
Schedule of expected amortization expense | Estimated future amortization expense remaining at March 31, 2022 for intangible assets acquired was as follows: Years ending December 31, Remainder of 2022 $ 573 2023 311 2024 63 2025 63 2026 63 Thereafter 10 Total future amortization expense $ 1,083 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (ASC 606) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales from Contracts with Customers | The following table summarizes net sales from contracts with customers for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Mobile connectivity product, transferred at point in time $ 6,107 $ 6,088 Mobile connectivity product, transferred over time 456 803 Mobile connectivity service 26,588 23,616 Inertial navigation product 7,807 11,541 Inertial navigation service 136 244 Total net sales $ 41,094 $ 42,292 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Future minimum lease payments under operating leases | Maturities of lease liabilities as of March 31, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows: Remainder of 2022 $ 1,456 2023 780 2024 392 2025 14 Total minimum lease payments $ 2,642 Less amount representing interest $ (130) Present value of net minimum operating lease payments $ 2,512 Less current installments of obligation under current-operating lease liabilities $ 1,571 Obligations under long-term operating lease liabilities, excluding current installments $ 941 Weighted-average remaining lease term - operating leases (years) 1.74 Weighted-average discount rate - operating leases 5.50 % |
Future minimum lease payments under finance leases | The future minimum lease payments under this financing lease as of March 31, 2022 are: Remainder of 2022 $ 198 2023 22 Total minimum lease payments $ 220 Less amount representing interest $ (2) Present value of net minimum financing lease payments $ 218 Less current installments of obligation under accrued other $ 218 Obligations under other long-term liabilities, excluding current installments $ — Weighted-average remaining lease term - finance leases (years) 0.92 Weighted-average discount rate - finance leases 1.53 % |
Sales-type lease, future undiscounted cash flows | The future undiscounted cash flows from these leases as of March 31, 2022 are: Remainder of 2022 $ 3,487 2023 3,526 2024 2,598 2025 1,214 2026 393 2027 7 Total undiscounted cash flows $ 11,225 Present value of lease payments $ 9,932 Difference between undiscounted cash flows and discounted cash flows $ 1,293 |
Future minimum lease payments to be received under operating leases | As of March 31, 2022, minimum future lease payments to be recognized on the operating leases are as follows: 2022 $ 396 2023 527 2024 321 2025 13 Total $ 1,257 |
Description of Business (Detail
Description of Business (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Leased assets, useful life | 5 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | Mar. 07, 2022USD ($)h | Mar. 31, 2022USD ($) |
Accounting Policies [Line Items] | ||
Management transition expense | $ 539 | |
Separation payment | $ 201 | |
Percentage of workforce reduction | 10.00% | |
Restructuring charges | $ 1,719 | |
Payments for restructuring | 913 | |
Restructuring and related cost, expected cost remaining | 467 | |
Cost of Sales | Product | ||
Accounting Policies [Line Items] | ||
Restructuring charges | 16 | |
Cost of Sales | Service | ||
Accounting Policies [Line Items] | ||
Restructuring charges | 55 | |
Research and development | ||
Accounting Policies [Line Items] | ||
Restructuring charges | 387 | |
Sales, marketing and support | ||
Accounting Policies [Line Items] | ||
Restructuring charges | 797 | |
General and administrative | ||
Accounting Policies [Line Items] | ||
Restructuring charges | 464 | |
Employee Severance | ||
Accounting Policies [Line Items] | ||
Restructuring charges | 1,392 | |
Other Restructuring | ||
Accounting Policies [Line Items] | ||
Restructuring charges | $ 327 | |
President And Chief Executive Officer | ||
Accounting Policies [Line Items] | ||
Years of service | 40 years | |
Management transition hours | h | 50 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 8,649 | $ 13,147 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 8,649 | 13,147 |
Money market mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,649 | 13,147 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 8,649 | $ 13,147 |
Marketable Securities - Narrati
Marketable Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Marketable Securities [Abstract] | ||
Interest income, money market deposits | $ 1 | $ 2 |
Stockholder's Equity - Narrativ
Stockholder's Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | $ 881 | $ 932 |
Stock options exercised (in shares) | 230 | |
Stock options cancelled (in shares) | 193 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | $ 859 | $ 924 |
Unrecognized compensation expense | $ 2,713 | |
Weighted-average period of recognition | 2 years 1 month 13 days | |
Shares issued (in shares) | 23,000 | |
Restricted stock surrendered (in shares) | 14,000 | |
Stock options granted (in shares) | 0 | 496,000 |
Stock options expired (in shares) | 170,000 | |
Stock options outstanding (in shares) | 1,727,000 | |
Stock options outstanding, weighted average exercise price (in USD per share) | $ 10.23 | |
Stock options exercisable (in shares) | 771,000 | |
Exercisable stock options, weighted average exercise price (in USD per share) | $ 10.36 | |
Stock Options | President And Chief Executive Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost (reduction of cost) | $ (85) | |
Stock Options | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost (reduction of cost) | (81) | |
Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | 22 | $ 8 |
Employee Stock | ESPP Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | $ 22 | $ 8 |
Percentage of Company's common stock share price | 85.00% | |
Stock options issued ESPP (in shares) | 22,000 | 0 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 2,756 | |
Weighted-average period of recognition | 1 year 11 months 26 days | |
Restricted stock surrendered (in shares) | 0 | |
Restricted stock (in shares) | 0 | |
Restricted stock award, forfeitures, less than (in shares) | 60,000 | |
Restricted stock vested (in shares) | 68,000 | |
Restricted stock outstanding (in shares) | 362,000 | |
Unvested outstanding options (in shares) | 0 | |
Restricted Stock | President And Chief Executive Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost (reduction of cost) | $ 186 | |
Restricted Stock | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost (reduction of cost) | $ 57 | |
Performance-Based or Market-Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested outstanding options (in shares) | 0 |
Stockholder's Equity - Valuatio
Stockholder's Equity - Valuation Assumptions (Details) - Stock Options | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.92% |
Expected volatility | 44.98% |
Expected life (in years) | 4 years 3 months 10 days |
Dividend yield | 0.00% |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | $ 881 | $ 932 |
Cost of sales | Product | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | 74 | 46 |
Cost of sales | Service | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | 2 | 2 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | 141 | 156 |
Sales, marketing and support | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | 186 | 190 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment | $ 478 | $ 538 |
Stockholder's Equity - Schedu_2
Stockholder's Equity - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | $ 128,977 | $ 131,884 | |
Net other comprehensive income (loss) | [1] | (193) | 223 |
Ending balance | 125,035 | 130,569 | |
Foreign Currency Translation | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (3,409) | (3,232) | |
Other comprehensive income (loss) | (193) | 223 | |
Net other comprehensive income (loss) | (193) | 223 | |
Ending balance | (3,602) | (3,009) | |
Total Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning balance | (3,409) | (3,232) | |
Other comprehensive income (loss) | (193) | 223 | |
Net other comprehensive income (loss) | (193) | 223 | |
Ending balance | $ (3,602) | $ (3,009) | |
[1] | Tax impact was nominal for all periods. |
Net Loss per Common Share - Nar
Net Loss per Common Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,861 | 520 |
Net Loss per Common Share - Rec
Net Loss per Common Share - Reconciliation of Basic and Diluted Weighted Average Common Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of reconciliation of basic and diluted weighted average common shares outstanding | ||
Weighted average common shares outstanding - basic (in shares) | 18,449,000 | 17,938,000 |
Dilutive common shares issuable in connection with stock plans (in shares) | 0 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 18,449,000 | 17,938,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Components of inventories | ||
Raw materials | $ 15,831 | $ 15,772 |
Work in process | 4,481 | 4,035 |
Finished goods | 5,353 | 4,833 |
Inventories, net | $ 25,665 | $ 24,640 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 127,633 | $ 124,374 |
Less accumulated depreciation | (67,032) | (64,260) |
Property and equipment, less accumulated depreciation | 60,601 | 60,114 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,828 | 3,828 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,271 | 24,271 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 471 | 472 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,947 | 16,790 |
Revenue-generating assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 66,109 | 63,587 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,976 | 15,395 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31 | $ 31 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 3,373 | $ 3,074 |
Product Warranty - Narrative (D
Product Warranty - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Product Warranty (Textual) [Abstract] | ||
Accrued product warranty costs | $ 1,286 | $ 1,179 |
Minimum | ||
Product Warranty (Textual) [Abstract] | ||
Limited warranty period on product | 1 year | |
Maximum | ||
Product Warranty (Textual) [Abstract] | ||
Limited warranty period on product | 2 years |
Product Warranty - Schedule of
Product Warranty - Schedule of Product Warranty Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Summary of product warranty activity | ||
Beginning balance | $ 1,179 | $ 1,812 |
Charges to expense | 279 | 61 |
Costs incurred | (172) | (239) |
Ending balance | $ 1,286 | $ 1,634 |
Debt (Details)
Debt (Details) | Oct. 29, 2021USD ($) | Oct. 30, 2018USD ($)covenant | Mar. 31, 2022USD ($) | May 31, 2020USD ($) | Dec. 31, 2019USD ($) |
PPP Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 6,927,000 | ||||
Line of Credit | Senior Credit Facility | 2018 Term Notes | |||||
Debt Instrument [Line Items] | |||||
Credit facility term | 3 years | ||||
Line of Credit | Senior Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | ||||
Maximum available for borrowing | $ 15,000,000 | $ 20,000,000 | 15,000,000 | $ 15,000,000 | |
Draw on facility | $ 12,400,000 | ||||
Covenant compliance, minimum trailing twelve month Consolidated Adjusted EBITDA | $ 3,000,000 | ||||
Line of Credit | Senior Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Number of financial covenants | covenant | 2 | ||||
Covenant compliance, maximum consolidated fixed charge coverage ratio | 1.25 | ||||
Line of Credit | Senior Credit Facility | Line of Credit | Debt Covenant Period, One | |||||
Debt Instrument [Line Items] | |||||
Covenant compliance, maximum consolidated leverage ratio | 2.50 | ||||
Line of Credit | Senior Credit Facility | Line of Credit | Debt Covenant Period, Two | |||||
Debt Instrument [Line Items] | |||||
Covenant compliance, maximum consolidated leverage ratio | 2 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Non-US | ||
Segment Reporting Information [Line Items] | ||
Percent of consolidated net sales | 64.00% | 62.00% |
Singapore | ||
Segment Reporting Information [Line Items] | ||
Percent of consolidated net sales | 12.00% | 10.00% |
Mobile connectivity | Mobile Comm Product Sales | ||
Segment Reporting Information [Line Items] | ||
Percent of consolidated net sales | 16.00% | |
Mobile connectivity | VSAT Airtime Service Sales | ||
Segment Reporting Information [Line Items] | ||
Percent of consolidated net sales | 58.00% | 51.00% |
Inertial navigation | FOG System Sales | ||
Segment Reporting Information [Line Items] | ||
Percent of consolidated net sales | 17.00% | 14.00% |
Inertial navigation | TACNAV Product Sales | ||
Segment Reporting Information [Line Items] | ||
Percent of consolidated net sales | 2.00% | 12.00% |
Segment Reporting - Net Sales a
Segment Reporting - Net Sales and Operating Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 41,094 | $ 42,292 |
Loss from operations | (4,708) | (3,607) |
Net interest and other income (expense), net | 345 | (574) |
Loss before income tax expense (benefit) | (4,363) | (4,181) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Loss from operations | 845 | 1,693 |
Operating Segments | Mobile connectivity | ||
Segment Reporting Information [Line Items] | ||
Net sales | 33,151 | 30,507 |
Loss from operations | 1,305 | (397) |
Operating Segments | Inertial navigation | ||
Segment Reporting Information [Line Items] | ||
Net sales | 7,943 | 11,785 |
Loss from operations | (460) | 2,090 |
Unallocated | ||
Segment Reporting Information [Line Items] | ||
Loss from operations | $ (5,553) | $ (5,300) |
Segment Reporting - Deprecation
Segment Reporting - Deprecation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Depreciation | $ 3,373 | $ 3,074 |
Amortization expense | 194 | 276 |
Operating Segments | Mobile connectivity | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 2,892 | 2,521 |
Amortization expense | 194 | 276 |
Operating Segments | Inertial navigation | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 308 | 384 |
Amortization expense | 0 | 0 |
Unallocated | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 173 | 169 |
Amortization expense | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Money market mutual funds - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 8,649 | $ 13,147 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 8,649 | 13,147 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value Disclosures [Abstract] | |
Goodwill and other intangible asset impairment | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Changes in Carrying Amount (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 6,570 |
Foreign currency translation adjustment | (61) |
Ending balance | $ 6,509 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets Changes in Carrying Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 1,287 | |
Amortization expense | (194) | |
Intangible assets acquired in asset acquisition | 14 | $ 16 |
Foreign currency translation adjustment | (24) | |
Ending balance | $ 1,083 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | Jan. 01, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 14 | $ 16 | ||
Amortization expense | $ 194 | $ 276 | ||
Weighted average remaining useful lives | 1 year 3 months 18 days | |||
Headland Media Limited | Subscriber relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, useful lives | 10 years | |||
Q1 2017 Acquisition | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 422 | |||
Contingent consideration, value, high | $ 114 | |||
Q1 2017 Acquisition | Subscriber relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, useful lives | 10 years | |||
Finite-lived intangible assets acquired | $ 100 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Goodwill and Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,221 | $ 11,231 |
Accumulated Amortization | 10,138 | 9,944 |
Net Carrying Value | 1,083 | 1,287 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,023 | 8,033 |
Accumulated Amortization | 6,940 | 6,746 |
Net Carrying Value | 1,083 | 1,287 |
Distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 315 | 315 |
Accumulated Amortization | 315 | 315 |
Net Carrying Value | 0 | 0 |
Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 446 | 446 |
Accumulated Amortization | 446 | 446 |
Net Carrying Value | 0 | 0 |
Proprietary content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 153 | 153 |
Accumulated Amortization | 153 | 153 |
Net Carrying Value | 0 | 0 |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,284 | 2,284 |
Accumulated Amortization | 2,284 | 2,284 |
Net Carrying Value | $ 0 | $ 0 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Future Amortization Expense Remaining (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2022 | $ 573 |
2023 | 311 |
2024 | 63 |
2025 | 63 |
2026 | 63 |
Thereafter | 10 |
Total future amortization expense | $ 1,083 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (ASC 606) - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 41,094 | $ 42,292 |
Mobile connectivity product sales | Mobile connectivity | Transferred at point in time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 6,107 | 6,088 |
Mobile connectivity product sales | Mobile connectivity | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 456 | 803 |
Mobile connectivity service | Mobile connectivity | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 26,588 | 23,616 |
Inertial navigation product | Inertial navigation | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 7,807 | 11,541 |
Inertial navigation service | Inertial navigation | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 136 | $ 244 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (ASC 606) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 452 | $ 773 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | (7.50%) | 3.70% | |
Liability for uncertain tax positions | $ 608 | $ 592 | |
Decrease in unrecognized tax benefits is reasonably possible | $ 19 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($)hub | Dec. 31, 2021USD ($) | Mar. 31, 2018hub | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 544 | $ 977 | ||
Short-term lease costs | 55 | 57 | ||
Sublease income | 35 | $ 34 | ||
Finance lease term | 5 years | |||
Number of satellite hubs leased | hub | 3 | |||
Number of satellite hubs disposed | hub | 2 | |||
Finance lease, gross cost | 127,633 | $ 124,374 | ||
Finance lease, accumulated depreciation | $ 67,032 | $ 64,260 | ||
Leased assets, useful life | 5 years | |||
Capital asset depreciation expense | $ 45 | $ 45 | ||
Net investment in lease, current | 3,813 | |||
Net investment in lease, noncurrent | 6,119 | |||
Sales-type lease, interest income | 207 | $ 231 | ||
Lessor, operating lease, term of contract | 3 years | |||
Lessor, operating lease, gross costs | 1,735 | |||
Lessor, operating lease, accumulated depreciation | $ 236 | |||
Lessor, operating lease, useful life | 5 years | |||
Depreciation expense | $ 82 | |||
Lease revenue | $ 126 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Sales-type leases, term of contracts | 3 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Sales-type leases, term of contracts | 5 years | |||
Assets Held Under Finance Leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance lease, gross cost | $ 1,268 | |||
Finance lease, accumulated depreciation | $ 755 | |||
Leased assets, useful life | 7 years |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Remainder of 2022 | $ 1,456 | |
2023 | 780 | |
2024 | 392 | |
2025 | 14 | |
Total minimum lease payments | 2,642 | |
Less amount representing interest | (130) | |
Present value of net minimum operating lease payments | 2,512 | |
Less current installments of obligation under current-operating lease liabilities | 1,571 | $ 1,912 |
Obligations under long-term operating lease liabilities, excluding current installments | $ 941 | $ 1,224 |
Weighted-average remaining lease term - operating leases (years) | 1 year 8 months 26 days | |
Weighted-average discount rate - operating leases | 5.50% |
Leases - Future Minimum Finance
Leases - Future Minimum Finance Lease Payments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 198 |
2023 | 22 |
Total minimum lease payments | 220 |
Less amount representing interest | (2) |
Present value of net minimum financing lease payments | 218 |
Less current installments of obligation under accrued other | 218 |
Obligations under other long-term liabilities, excluding current installments | $ 0 |
Weighted-average remaining lease term - finance leases | 11 months 1 day |
Weighted-average discount rate - finance leases | 1.53% |
Leases - Sales-type Lease Futur
Leases - Sales-type Lease Future Undiscounted Cash Flows (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 3,487 |
2023 | 3,526 |
2024 | 2,598 |
2025 | 1,214 |
2026 | 393 |
2027 | 7 |
Total undiscounted cash flows | 11,225 |
Present value of lease payments | 9,932 |
Difference between undiscounted cash flows and discounted cash flows | $ 1,293 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Receivable (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 396 |
2023 | 527 |
2024 | 321 |
2025 | 13 |
Total | $ 1,257 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Apr. 29, 2022USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Proceeds from sale of business | $ 2,500 |