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Segment Reporting
6 Months Ended
Jun. 30, 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% and 19% of the Company's consolidated net sales for the three months ended June 30, 2022 and 2021, respectively, and 16% and 17% of the Company's consolidated net sales for the six months ended June 30, 2022 and 2021, respectively. Service sales of mini-VSAT Broadband airtime service accounted for 62% and 53% of the Company's consolidated net sales for the three months ended June 30, 2022 and 2021, respectively, and 60% and 52% of the Company's consolidated net sales for the six months ended June 30, 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 15% and 17% of the Company's consolidated net sales for the three months ended June 30, 2022 and 2021, respectively, and 16% of the Company's consolidated net sales for both the six months ended June 30, 2022 and 2021.

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 63% and 60% of consolidated net sales for the three months ended June 30, 2022 and 2021, respectively, and 63% and 61% of consolidated net sales for the six months ended June 30, 2022 and 2021, respectively. Sales to Singapore customers represented 13% and 10% of the Company's consolidated net sales for the three months ended June 30, 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 June 30, 2022 and 2021. Sales to Singapore customers represented 13% and 10% of the Company's consolidated net sales for the six months ended June 30, 2022 and 2021, respectively. No other individual foreign country represented 10% or more of the Company's consolidated net sales for the six months ended June 30, 2022 and 2021.

As of June 30, 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 and six months ended June 30, 2022 and 2021 were as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Net sales:
Mobile connectivity$34,553 $33,755 $67,704 $64,262 
Inertial navigation7,284 9,608 15,227 21,393 
     Consolidated net sales$41,837 $43,363 $82,931 $85,655 
Operating income (loss):
Mobile connectivity$4,525 $580 $5,830 $183 
Inertial navigation(1,289)645 (1,749)2,735 
     Subtotal3,236 1,225 4,081 2,918 
Unallocated, net(5,568)(7,027)(11,121)(12,327)
     Loss from operations(2,332)(5,802)(7,040)(9,409)
Net interest and other income (expense), net1,123 207 1,468 (367)
     Loss before income tax expense (benefit)$(1,209)$(5,595)$(5,572)$(9,776)

Depreciation expense and amortization expense for the Company's reporting segments for the three and six months ended June 30, 2022 and 2021 were as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Depreciation expense:
Mobile connectivity$3,003 $2,779 $5,895 $5,300 
Inertial navigation296 384 604 768 
Unallocated167 170 340 339 
     Total consolidated depreciation expense$3,466 $3,333 $6,839 $6,407 
Amortization expense:
Mobile connectivity$125 $280 $319 $556 
Inertial navigation— — — — 
Unallocated— — — — 
     Total consolidated amortization expense$125 $280 $319 $556