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Leases

9 Months Ended

Sep. 30, 2025

Leases [Abstract]

Leases

Leases

Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $232 and $376 for the three months ended September 30, 2025 and 2024, respectively, and $738 and $1,095 for the nine months ended September 30, 2025 and 2024, respectively. Short-term operating lease costs were $24 and $20 for the three months ended September 30, 2025 and 2024, respectively, and $70 and $59 for the nine months ended September 30, 2025 and 2024, respectively. Maturities of lease liabilities as of September 30, 2025 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2025			$	233
2026			741
2027			840
2028 and thereafter			3,695
Total minimum lease payments			$	5,509
Less amount representing interest			$	(901)
Present value of net minimum operating lease payments			$	4,608
Less current installments of obligation under current-operating lease liabilities			$	591
Obligations under long-term operating lease liabilities, excluding current installments			$	4,017
Weighted-average remaining lease term - operating leases (years)			6.14
Weighted-average discount rate - operating leases			5.50		%

On July 23, 2025, the Company entered into a new lease agreement for approximately 32,000 square feet of office and warehouse space in Bristol, Rhode Island. The Company currently plans to migrate its Rhode Island operations to this leased facility in the spring of 2026, at which point its costs of sales and operational expenditures will include lease expense at the rate of approximately $0.6 million for the first year of the lease (excluding three months of free rent), with fixed annual increases thereafter. The lease agreement is for a term of 87 months with an option to extend the lease an additional 10 years. This lease agreement resulted in a right of use asset and operating lease liabilities of approximately $3,600 as of September 30, 2025.

Lessor

The Company enters into leases with certain customers primarily for the TracPhone and TracNet VSAT systems. These leases are classified as sales-type leases because title to 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 to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

Upon adoption of ASC 842, the Company elected to apply the practical expedient provided to lessors to combine the lease and non-lease component of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component.

The current portion of the net investment in these leases was $3,056 as of September 30, 2025 and the non-current portion of the net investment in these leases was $2,971 as of September 30, 2025. 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 $90 and $108 during the three months ended September 30, 2025 and 2024, respectively, and $293 and $354 during the nine months ended September 30, 2025 and 2024, respectively.

The future undiscounted cash flows from these leases as of September 30, 2025 are:

Remainder of 2025			$	1,363
2026			2,532
2027			1,754
2028			702
2029			126
2030			18
Total undiscounted cash flows			$	6,495
Present value of lease payments			$	6,027
Difference between undiscounted cash flows and discounted cash flows			$	468

Leases

Leases

Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $232 and $376 for the three months ended September 30, 2025 and 2024, respectively, and $738 and $1,095 for the nine months ended September 30, 2025 and 2024, respectively. Short-term operating lease costs were $24 and $20 for the three months ended September 30, 2025 and 2024, respectively, and $70 and $59 for the nine months ended September 30, 2025 and 2024, respectively. Maturities of lease liabilities as of September 30, 2025 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2025			$	233
2026			741
2027			840
2028 and thereafter			3,695
Total minimum lease payments			$	5,509
Less amount representing interest			$	(901)
Present value of net minimum operating lease payments			$	4,608
Less current installments of obligation under current-operating lease liabilities			$	591
Obligations under long-term operating lease liabilities, excluding current installments			$	4,017
Weighted-average remaining lease term - operating leases (years)			6.14
Weighted-average discount rate - operating leases			5.50		%

On July 23, 2025, the Company entered into a new lease agreement for approximately 32,000 square feet of office and warehouse space in Bristol, Rhode Island. The Company currently plans to migrate its Rhode Island operations to this leased facility in the spring of 2026, at which point its costs of sales and operational expenditures will include lease expense at the rate of approximately $0.6 million for the first year of the lease (excluding three months of free rent), with fixed annual increases thereafter. The lease agreement is for a term of 87 months with an option to extend the lease an additional 10 years. This lease agreement resulted in a right of use asset and operating lease liabilities of approximately $3,600 as of September 30, 2025.

Lessor

The Company enters into leases with certain customers primarily for the TracPhone and TracNet VSAT systems. These leases are classified as sales-type leases because title to 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 to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

Upon adoption of ASC 842, the Company elected to apply the practical expedient provided to lessors to combine the lease and non-lease component of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component.

The current portion of the net investment in these leases was $3,056 as of September 30, 2025 and the non-current portion of the net investment in these leases was $2,971 as of September 30, 2025. 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 $90 and $108 during the three months ended September 30, 2025 and 2024, respectively, and $293 and $354 during the nine months ended September 30, 2025 and 2024, respectively.

The future undiscounted cash flows from these leases as of September 30, 2025 are:

Remainder of 2025			$	1,363
2026			2,532
2027			1,754
2028			702
2029			126
2030			18
Total undiscounted cash flows			$	6,495
Present value of lease payments			$	6,027
Difference between undiscounted cash flows and discounted cash flows			$	468

Leases

Leases

Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $232 and $376 for the three months ended September 30, 2025 and 2024, respectively, and $738 and $1,095 for the nine months ended September 30, 2025 and 2024, respectively. Short-term operating lease costs were $24 and $20 for the three months ended September 30, 2025 and 2024, respectively, and $70 and $59 for the nine months ended September 30, 2025 and 2024, respectively. Maturities of lease liabilities as of September 30, 2025 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2025			$	233
2026			741
2027			840
2028 and thereafter			3,695
Total minimum lease payments			$	5,509
Less amount representing interest			$	(901)
Present value of net minimum operating lease payments			$	4,608
Less current installments of obligation under current-operating lease liabilities			$	591
Obligations under long-term operating lease liabilities, excluding current installments			$	4,017
Weighted-average remaining lease term - operating leases (years)			6.14
Weighted-average discount rate - operating leases			5.50		%

On July 23, 2025, the Company entered into a new lease agreement for approximately 32,000 square feet of office and warehouse space in Bristol, Rhode Island. The Company currently plans to migrate its Rhode Island operations to this leased facility in the spring of 2026, at which point its costs of sales and operational expenditures will include lease expense at the rate of approximately $0.6 million for the first year of the lease (excluding three months of free rent), with fixed annual increases thereafter. The lease agreement is for a term of 87 months with an option to extend the lease an additional 10 years. This lease agreement resulted in a right of use asset and operating lease liabilities of approximately $3,600 as of September 30, 2025.

Lessor

The Company enters into leases with certain customers primarily for the TracPhone and TracNet VSAT systems. These leases are classified as sales-type leases because title to 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 to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

Upon adoption of ASC 842, the Company elected to apply the practical expedient provided to lessors to combine the lease and non-lease component of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component.

The current portion of the net investment in these leases was $3,056 as of September 30, 2025 and the non-current portion of the net investment in these leases was $2,971 as of September 30, 2025. 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 $90 and $108 during the three months ended September 30, 2025 and 2024, respectively, and $293 and $354 during the nine months ended September 30, 2025 and 2024, respectively.

The future undiscounted cash flows from these leases as of September 30, 2025 are:

Remainder of 2025			$	1,363
2026			2,532
2027			1,754
2028			702
2029			126
2030			18
Total undiscounted cash flows			$	6,495
Present value of lease payments			$	6,027
Difference between undiscounted cash flows and discounted cash flows			$	468

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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- Definition

The entire disclosure of lessor's sales-type leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 30
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-30/tableOfContent

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