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Government Assistance | 6 Months Ended
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Jun. 30, 2026
Government Assistance [Abstract] |
Government Assistance | 4. Government Assistance Federal Communications Commission (“FCC”) Reimbursement Program On July 15, 2022, the Company was notified that it was approved for participation in the FCC Reimbursement Program, designed to reimburse providers of advanced communications services for reasonable costs incurred in the required removal, replacement, and disposal of covered communications equipment or services, that have been deemed to pose a national security risk, from their networks. Pursuant to the FCC Reimbursement Program, the FCC approved up to approximately $334 million in reimbursements to the Company to cover documented and approved costs to (i) remove and securely destroy all ZTE communications equipment and services in the Company’s terrestrial U.S. networks and replace such equipment and (ii) remove and replace certain equipment installed on aircraft operated by the Company’s ATG customers that is not compatible with the terrestrial equipment that will replace ZTE equipment. Due to an initial shortfall in the amount appropriated by Congress to fund the FCC Reimbursement Program, approximately $132 million of the approved amount was allocated to the Company under the program. Following passage of the Fiscal Year 2025 National Defense Authorization Act, the Company was allocated its full approved amount of approximately $334 million and the program completion deadline was extended to November 8, 2026. As of June 30, 2026 and December 31, 2025, we have recorded a $39.3 million and $27.8 million receivable from the FCC, respectively, which is included in Prepaid expenses and other current assets in our Unaudited Condensed Consolidated Balance Sheets. The following are the FCC Reimbursement Program-related deductions to the carrying value of asset balances in our Unaudited Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 (in thousands):
|  | June 30, |  |  | December 31, |
|  | 2026 |  |  | 2025 |
Assets: |  |  |  |  |  |
Inventories |  | $ | (810 | ) |  | $ | (1,380 | )
Prepaid expenses and other current assets |  |  | (9,607 | ) |  |  | (7,349 | )
Property and equipment, net |  |  | (63,510 | ) |  |  | (48,001 | )
Intangible assets, net |  |  | (10,242 | ) |  |  | (2,200 | )
Other non-current assets |  |  | (27,544 | ) |  |  | (21,376 | )
Operating lease right-of-use assets |  |  | (1,925 | ) |  |  | (2,712 | )
The following are the increases to Net income in our Unaudited Condensed Consolidated Statements of Operations for the three- and six-month periods ended June 30, 2026 and 2025 (in thousands):
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Service revenue |  | $ | 4,880 |  |  | $ | 1,865 |  |  | $ | 8,513 |  |  | $ | 3,594 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Cost of service revenue |  |  | 998 |  |  |  | 35 |  |  |  | 2,162 |  |  |  | 40 |
Cost of equipment revenue |  |  | 202 |  |  |  | 1,749 |  |  |  | 2,287 |  |  |  | 4,242 |
General and administrative |  |  | 404 |  |  |  | 87 |  |  |  | 787 |  |  |  | 187 |
Engineering, design and development |  |  | 198 |  |  |  | — |  |  |  | 6,237 |  |  |  | — |
Depreciation and amortization |  |  | 33 |  |  |  | — |  |  |  | 47 |  |  |  | — |

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