Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets arose from the purchase of distribution rights from Kognitive Networks Inc. in October 2023 and the purchase of KVH Industries Norway AS in September 2010. The assets that are related to the distribution rights from Kognitive Networks are being amortized on a straight-line basis over the estimated useful life of 3 years. The assets related to the purchase of KVH Industries Norway AS for acquired intellectual property are fully amortized as of December 31, 2024.

In January 2017, the Company completed the acquisition of certain subscriber relationships from a third party. This acquisition did not meet the definition of a business under ASC 2017-01, Business Combinations (Topic 805)-Clarifying the Definition of a Business. The Company ascribed $100 of the initial purchase price to the acquired subscriber relationships definite-lived intangible assets with an initial estimated useful life of 10 years. Under the asset purchase agreement, the purchase price includes a component of contingent consideration under which the Company is required to pay a percentage of recurring revenues received from the acquired subscriber relationships through 2026 up to a maximum annual payment of $114. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships.

Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at December 31, 2024 and 2023, respectively:


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
December 31, 2024
Subscriber relationships	$	51	$	13	$	38
Distribution rights	1,250		460		790


Intellectual property	2,284		2,284		—
	$	3,585	$	2,757	$	828
December 31, 2023
Subscriber relationships	$	11	$	1	$	10
Distribution rights	1,250		66		1,184


Intellectual property	2,284		2,284		—
	$	3,545	$	2,351	$	1,194

Amortization expense related to intangible assets was $407 and $234 for years ended December 31, 2024 and 2023, respectively, and was categorized as general and administrative expense.

As of December 31, 2024, the total weighted average remaining useful lives of the definite-lived intangible assets was 2.0 years.

Estimated future amortization expense for intangible assets recorded by the Company at December 31, 2024 is as follows:


Years ending December 31,	Amortization Expense
2025	$	414
2026	414




Total amortization expense	$	828

The changes in the carrying amount of intangible assets during the year ended December 31, 2024 is as follows:


	2024
Balance at December 31, 2023	$	1,194
Amortization expense	(407)
Intangible assets acquired in asset acquisition	40

Impairment	—
Foreign currency translation adjustment	1
Balance at December 31, 2024	$	828