What changed in this filing

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Item 1. Business

2022-03-11 compared with 2021-03-03 · 72 added, 90 removed, 363 unchanged (31% of the section changed)

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The SEC maintains an Internet site at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

We are a leading provider of innovative, technology-driven connectivity and navigation solutions to maritime, marine, defense and other commercial customers globally.

Through our mobile connectivity business, we provide global high-speed Internet, television, and voice services via satellite to mobile users at sea and on land.

We are a leading provider of innovative, technology-driven connectivity and navigation solutions to maritime, defense and other commercial customers globally.

Through our mobile connectivity business, we provide global high-speed Internet and voice services via satellite to mobile users at sea and on land.

We are also a leading provider of commercially licensed entertainment, including news, sports, music, and movies, to commercial and leisure customers in the maritime, hotel, and retail markets.

Our inertial navigation business provides high-performance navigational sensors and integrated inertial systems for defense and commercial inertial navigation applications.

Our inertial navigation business provides high-performance navigational sensors and integrated inertial navigation systems for defense and commercial inertial navigation applications.

Our reporting segments are as follows:

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We generate revenues from various international locations, primarily consisting of Canada, Europe (both inside and outside the European Union), Africa, Asia/Pacific, and the Middle East.

During the second quarter of 2019, we sold Videotel, which provided eLearning computer-based training, to an affiliate of Oakley Capital.

We determined that the sale met the requirements for reporting as discontinued operations in accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) 205-20 Presentation of Financial Statements — Discontinued Operations (ASC 205-20).

Accordingly, we have classified the results of the Videotel business as discontinued operations in our financial statements.

We are headquartered in Middletown, Rhode Island, with active operations in Denmark, the State of Illinois, Norway, Singapore, and the United Kingdom.

We are headquartered in Middletown, Rhode Island, with active operations in Denmark, the State of Illinois, the United Kingdom and Singapore.

KVH is a Delaware corporation formed in 1985.

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IP-MobileCast TM

KVH OneCare TM

AgilePlans TM

KVH OneCare ®

Inertial navigation Digital compass and fiber optic gyro-based navigation and guidance systems TACNAV®

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Through our mobile connectivity segment, we provide integrated, end-to-end hardware, software and services that support our customers’ need for access to Internet, voice and entertainment services.

On the hardware side of this business, we primarily manufacture and distribute a comprehensive family of mobile satellite antenna products and services that provide access to the Internet and voice services while on the move.

Product sales within the mobile connectivity segment accounted for 17% and 18% of our consolidated net sales for 2021 and 2020, respectively.

Sales of mini-VSAT Broadband airtime service accounted for 51% and 48% of our consolidated net sales for 2020 and 2019, respectively.

On the services side of this business, sales of mini-VSAT Broadband airtime service accounted for 54% and 51% of our consolidated net sales for 2021 and 2020, respectively.

Sales of content services within the mobile connectivity segment accounted for 4% and 5% of our consolidated net sales for 2021 and 2020, respectively.

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The network infrastructure that we have developed to support our airtime services also supports the delivery of other value-added services such as our IP-MobileCast content delivery service for both entertainment and operational needs.

Our mobile satellite antenna products use sophisticated robotics, stabilization and control software, sensing technologies, transceiver integration, and advanced antenna designs to automatically search for, identify and point directly at the selected television and communications satellite while the vehicle or vessel is in motion.

Our antennas use gyros and inclinometers to measure the pitch, roll and yaw of an antenna platform in relation to the earth.

Our mobile satellite antenna products use sophisticated robotics, stabilization and control software, sensing technologies, transceiver integration, and advanced antenna designs to automatically search for, identify and point directly at the optimal television and communications satellite while the vehicle or vessel is in motion.

Our antennas use gyroscopes and inclinometers to measure the movement of an antenna platform in relation to the earth in three different axes.

Microprocessors and our proprietary stabilization and control software use that data to compute the antenna movement necessary for the antenna’s motors to point the antenna properly and maintain contact with the satellite.

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Satellite Internet and Phone.

Our mini-VSAT Broadband network offers an end-to-end solution for offshore mobile connectivity.

Our mini-VSAT Broadband products and services provide an end-to-end solution for offshore mobile connectivity.

This unified C/Ku-band Broadband service enables us to offer commercial, leisure, and government customers an integrated hardware and service solution for mobile communications and seamless region-to-region roaming.

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Because we manufacture the onboard hardware, we can integrate the full rack of discrete below decks equipment typically used on traditional VSAT systems into a single, streamlined unit that is significantly easier to deploy than competing VSAT solutions.

Our mini-VSAT Broadband network utilizes advanced next-generation high-throughput satellites (HTS) capabilities offered by Intelsat and SKY Perfect JSAT, as well as ArcLight spread spectrum modem technology developed by ViaSat.

Our approach allowed us to develop and bring to market our TracPhone V series of terminals.

Our 60-cm diameter TracPhone V7-HTS Ku-band antenna is 85% smaller by volume and 75% lighter than alternative 1-meter diameter VSAT antennas and is designed to deliver faster data speeds globally to the maritime market.

Our mini-VSAT Broadband network utilizes advanced next-generation high-throughput satellites (HTS) capabilities offered by Intelsat and SKY Perfect JSAT.

Our approach has allowed us to develop and bring to market our TracPhone V series of terminals.

Our 60-cm diameter TracPhone V7-HTS Ku-band antenna is 85% smaller by volume and 75% lighter than alternative 1-meter diameter VSAT antennas.

We are able to offer download/upload speeds as fast as 10 megabits per second (Mbps)/3 Mbps.

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Superyacht guests can now enjoy fast connectivity for streaming HD content and accessing Internet and social media platforms at sea.

In March 2021, we introduced the TracPhone V30 marine VSAT antenna, which combines the small 37-cm antenna size, easy installation, and fast data speed to make Internet connectivity, content streaming, and social media use possible on sailboats, center console boats, and recreational boats.

In addition, the TracPhone V30 is well-suited to commercial vessels that don’t voyage globally, including fishing boats, tugboats, and offshore service vessels.

For leisure and commercial vessels, the TracPhone V30 offers the advantages of advanced satcom technology as a replacement for legacy L-band systems that typically provide data speeds of only 432 Kbps.

LTE Broadband.

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waters up to approximately 20 miles offshore, with data download speeds up to 100 Mbps.

In June 2021, we introduced the LTE-1 Global marine communications system designed to provide recreational boaters and commercial mariners in more than 150 countries with Internet access up to 20 miles offshore.

The system utilizes LTE Advanced cellular network technology, which is faster than regular 4G LTE.

VSAT Deployments.

We are actively engaged in sales efforts for the TracPhone HTS Series and mini-VSAT Broadband service to government agencies for maritime, military, and emergency responder use.

We are actively engaged in sales efforts for the TracPhone antennas and mini-VSAT Broadband service to government agencies for maritime, military, and emergency responder use.

We also continue to expand our ability to support the commercial maritime market.

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We offer CommBox, a ship-to-shore network management product that comprises shipboard hardware, a KVH-hosted or privately-owned shore-based hub, and a suite of software applications.

Our CommBox offerings are generally integrated into all of our VSAT product offerings.

Our CommBox offerings are generally integrated into the majority of our VSAT product offerings.

We do not generate significant revenue from sales of standalone CommBox hardware.

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We offer the Iridium hardware and service along with our own mini-VSAT solution with the integrated CommBox functionality, which will switch over to the Iridium service if the mini-VSAT service is not available.

Our customers might choose to add the Iridium service to expand the geographic coverage of the system or as a backup service.

In September 2019, we started offering Iridium Certus, a next-generation L-band solution providing pole-to-pole global coverage.

Some of our customers add the Iridium service to expand the geographic coverage of the system or as a backup service.

In September 2019, we began offering Iridium Certus, a next-generation L-band solution providing pole-to-pole global coverage.

As a companion to our VSAT systems, the Iridium Certus 38-cm diameter Cobham Sailor 4300 antenna provides L-band data speeds of 704 Kbps download/176 Kbps upload.

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Our TracVision A9 uses hybrid phased-array antenna technology to provide in-motion reception of satellite TV programming in the continental United States using either the DIRECTV or DISH Network services.

The TracVision A9 stands approximately five inches high and mounts either to a vehicle’s roof rack or directly to the vehicle’s roof, making it practical for use aboard minivans, SUVs and other passenger vehicles.

The TracVision A9 stands approximately five inches high

and mounts either to a vehicle’s roof rack or directly to the vehicle’s roof, making it practical for use aboard minivans, SUVs and other passenger vehicles.

The TracVision A9 includes a mobile satellite television antenna and an IP-enabled TV hub for easy system configuration and control via Wi-Fi devices, such as an Apple iPhone or iPad.

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Airtime Services

In addition to our mobile satellite antenna hardware and software, we offer airtime plans that enable customers to obtain Internet and voice services.

In conjunction with our mobile satellite antenna hardware and software, we provide airtime plans that enable customers to obtain Internet and voice services.

We offer a variety of rate plans that are flexible to meet the customer's needs.

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Our network management portal, myKVH, is a secure portal that enables a ship operator to manage network usage by vessel or by individual crew members by allocating operational and crew data caps while receiving customized usage alerts.

For customers that want the certainty of a fixed monthly price, we offer fixed rate plans that vary depending on data speeds and include protocol restrictions, such as limiting streaming of video content.

For customers who want the certainty of a fixed monthly price, we offer fixed rate plans that vary depending on data speeds, and include protocol restrictions such as limiting streaming of video content.

User speeds are also restricted but not stopped when users reach established data use thresholds.

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AgilePlans, one of our mini-VSAT Broadband services for commercial maritime customers, offers an all-inclusive Connectivity as a Service, or CaaS, usage-based pricing model.

Under this all-in-one CaaS model, we charge subscribers a single monthly fee in exchange for which we provide satellite communication hardware, shipping and installation, maintenance and support, airtime and voice services, a service management portal and certain basic content services with no minimum commitment and no long-term contracts required.

We offer AgilePlan customers a variety of airtime data plans with varying data allotments and fixed data usage levels with our exclusive dual-channel configuration with hybrid airtime plans delivering both a high-speed channel and an unlimited use data channel.

We offer AgilePlan customers a variety of airtime data plans with varying data allotments and fixed data usage levels with our exclusive dual-channel configuration with dual channel airtime plans delivering both a high-speed channel and an unlimited use data channel.

Under our CaaS model, we retain ownership of our satellite equipment and do not sell it to subscribers, who must return the hardware to us if they terminate our service.

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In June 2019, we launched KVH Watch®, our all-inclusive, no-commitment, Internet of Things (IoT) Connectivity as a Service program for the maritime industry utilizing global mini-VSAT communications.

Through our KVH Watch service, we provide a connectivity solution for remote equipment monitoring and intervention by maritime equipment manufacturers and IoT application providers.

Through our KVH Watch service, we offer a connectivity solution for remote equipment monitoring and intervention by maritime equipment manufacturers and IoT application providers.

With remote monitoring, manufacturers can more easily act in real time, reducing expensive service calls and improving equipment performance for the maritime operation.

In October 2017, we launched our next-generation, advanced maritime broadband network with Intelsat.

The HTS high-speed network complements our first-generation mini-VSAT Broadband network with three to six times the data speeds available to maritime customers.

Our advanced maritime broadband network incorporates Intelsat Epic satellite services and the IntelsatOne Flex platform, a global managed service designed to optimize bandwidth allocations and provide flexible coverage where it is needed.

The HTS high-speed network incorporates Intelsat Epic satellite services and the IntelsatOne Flex platform, a global managed service designed to optimize bandwidth allocations and provide flexible coverage where it is needed.

Our mini-VSAT Broadband network also benefits from Asian satellite capacity provided by SKY Perfect JSAT.

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During the first quarter of 2018, we entered into a five-year capital lease for three satellite hubs for the HTS network.

During the first quarter of 2021, the terms of this lease were adjusted and we discontinued use of two satellite hubs in exchange for additional satellite service capacity.

In the first quarter of 2022, we are expanding our satellite connectivity services that will allow vessels to use KVH connectivity while operating in Indian territorial waters.

In addition, KVH will offer satellite connectivity services to Indian flagged vessels.

It is our long-term plan to continue to maintain and enhance our mini-VSAT Broadband network.

Our legacy mini-VSAT Broadband network currently uses a combination of 20 Ku-band transponders on 15 satellites to provide Ku-band coverage throughout the northern hemisphere and around the continents in the southern hemisphere.

Of the 20 Ku-band transponders, we directly contract with seven of them as of January 1, 2021.

The remaining Ku-band transponders are contracted by ViaSat.

Under the terms of our revenue-sharing arrangement with ViaSat, we may earn revenue from maritime, land-based and aeronautical use of the network.

In November 2018, we renewed our contract with ViaSat until the end of 2021.

The new contract includes an obligation to make certain minimum quarterly payments to ViaSat that decline over the contract period.

After this contract period, the agreement terminates.

As part of the agreement, starting January 1, 2019, we reduced the number of Ku-band transponders for which we directly contract for from fourteen to eight.

In 2020, we reduced the number of Ku-band transponders from eight to seven, and we removed the C-band coverage from the legacy mini-VSAT Broadband network.

On December 31, 2021, we closed down our legacy mini-VSAT Broadband network, which had used a combination of 20 Ku-band transponders on 15 satellites to provide Ku-band coverage throughout the northern hemisphere and around the continents in the southern hemisphere.

The bandwidth speeds offered by the Ku-band satellites also permit faster data rates than those supported by Inmarsat’s L-band satellites.

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These services are performed by our employees as well as a dealer network of certified engineers.

Sale of Videotel - Discontinued Operations

On May 13, 2019, we sold all of the issued share capital of Super Dragon Limited and Videotel Marine Asia Limited (together referred to as Videotel) for $89.4 million in cash, on a cash-free, debt-free basis, subject to a working capital adjustment.

Videotel comprised our maritime training business, which offered video, animation, eLearning computer-based training and interactive distance learning services to the maritime industry.

The sale was completed immediately upon execution of definitive agreements.

In December 2019, we finalized the working capital adjustment, which reduced the proceeds from the sale of Videotel to $88.4 million.

Please see Notes 1 and 18 of our accompanying financial statements for further information.

Content Services

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For movie and television content, we are an approved distributor of licensed content for certain Hollywood, Bollywood, and independent studios worldwide.

In January 2020, we decided to rebrand IP-MobileCast to KVH Link.

We offer a content subscription service called KVH Link, delivered by IP-MobileCast wherein content and data files are transmitted using multicast technology across our global satellite networks to every vessel or mobile vehicle that has an active, compatible TracPhone V series, V-IP series, or V-HTS series terminal.

In January 2020, we decided to rebrand IP-MobileCast as KVH Link.

This delivery mechanism reduces the amount of bandwidth required to transmit large files to a large population of customers.

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We transmit local "news from home" and international news segments in a variety of languages on a daily, weekly or monthly basis, a library of movies plus daily sports, news clips and special programming such as the highlights of sporting events.

The COVID-19 pandemic has impacted various aspects of our operations, particularly the KVH Media Group, which depends heavily on travel and travel-related industries.

The revenues and cash flows of our KVH Media Group business have been significantly impacted due to the global reduction in travel since the start of the pandemic.

In the fourth quarter of 2020, there were increases in the number of reported COVID-19 cases, and substantial shutdowns were reinstated in the United States, UK and Europe, which caused continued disruptions to our KVH Media Group business as the global travel and travel-related industries remained at historically depressed levels.

In the fourth quarter of 2020, we concluded that certain areas of the KVH Media business may not recover completely or at all.

The COVID-19 pandemic impacted various aspects of our operations, particularly the KVH Media Group, which depends heavily on travel and travel-related industries.

The revenues and cash flows of our KVH Media Group business were significantly impacted due to the global reduction in travel commencing from the start of the pandemic, as the global travel and travel-related industries dropped to historically depressed levels.

In the fourth quarter of 2020, we concluded that certain areas of the KVH Media business might not recover completely or at all.

As a result of these changes in the KVH Media business, we recognized an intangible asset impairment charge of $1.8 million and a goodwill impairment charge of $8.7 million for the year ended December 31, 2020 related to KVH Media Group.

Please see Note 1(k) for additional information.

Our annual impairment analysis in the fourth quarter of 2021 did not identify any further impairments.

Please see Note 1(k) to our accompanying audited consolidated financial statements for additional information.

Inertial Navigation Segment

We offer a portfolio of innovative digital compass and fiber optic gyro (FOG)-based systems that address the rigorous requirements for precision, performance and stability of military and commercial customers.

We offer a portfolio of innovative digital compass and fiber optic gyro (FOG)-based systems that address the rigorous requirements for precision, performance and stabilization of military and commercial customers.

Our systems provide reliable, easy-to-use and continuously available navigation and pointing data.

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precision tactical navigation systems for military vehicles, and guidance for weapons and unmanned autonomous vehicles.

Our FOG products are also used in numerous commercial products, such as navigation and positioning systems for various applications including precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics, and optical stabilization.

The CG-5100, our first commercial-grade IMU, is suitable for a wide range of applications such as 3D augmented reality, mobile mapping, platform navigation, and GPS augmentation for unmanned vehicle programs, precise mapping, and imagery.

Our FOG products are also 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.

Our open-loop DSP-1750, DSP-3000, and DSP-4000 FOGs provide precision measurement of the rate and angle of a platform’s turning motion for significantly less cost than competing closed-loop gyros.

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To address this demand, we introduced the DSP-1760 product line, consisting of packaged one, two, or three axes of FOGs, each with two different interface connector options.

The DSP-3000, DSP-3100, and DSP-3400 are each slightly larger than a deck of playing cards and offer s a variety of interface options to support a range of applications.

The DSP-3000, DSP-3100, and DSP-3400 are each slightly larger than a deck of playing cards and offer a variety of interface options to support a range of applications.

High-performance 2-axis and 3-axis configurations can be realized by integrating multiple DSP-3000 and DSP-3100 units.

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The larger, militarized dual axis DSP-4000 is designed for use in high-shock and highly dynamic environments, such as gun turret stabilization.

Our 1750 IMU is an advanced 6-degrees-of-freedom sensor designed to integrate easily into the most demanding stabilization, pointing, and navigation applications.

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These systems combine our 1750 IMU technology with centimeter-level precise GNSS receivers, a 3-axis magnetometer and a barometric pressure sensor.

In June 2018, we introduced a version of the 1775 IMU that includes 25g accelerometers.

This version is designed for applications with high levels of acceleration, vibration, or shock.

These applications include positioning and navigation systems for drilling, mining, and pipeline inspection and maintenance;

mobile mapping systems using multiple sensors such as radar, cameras, and LIDAR;

high-speed gimbals;

and manned and unmanned platform stabilization and navigation systems.

In June 2020, we introduced the P-1775 IMU featuring our new PIC Inside photonic integrated chip (PIC) technology.

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The PIC Inside product is designed to deliver 20 times higher accuracy than less expensive MEMS inertial measurement units, uses modular designs for ease of integration, and can be reliably manufactured at higher volumes than our traditional IMU products.

In 2021, we continued the integration of the PIC into our inertial navigation products, adding this technology to other products in the 17XX family of inertial measurement units, fiber optic gyros and inertial navigation systems.

We also upgraded the existing MEMs-based accelerometer integrated within the 17XX IMU offering, delivering significant performance improvement across multiple input ranges.

Keeping in line with our previous portfolio, we have added a higher input range variant in the P-1775, reaching upwards of 100 g’s to support applications where the environment demands more capability, such as various airborne deployments, high caliber turret and weapon pointing and underground mining applications.

Tactical Navigation

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Our standard TACNAV products can be customized to our customers’ specifications.

At customer request, we offer training and other services on a time-and-materials basis.

At customer request, we offer training and other services.

Value-Added Services

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These sales channels vary and evolve from time to time, but currently include targeted efforts to reach the commercial and leisure maritime markets;

the recreational vehicle (RV), high-end automotive and bus markets;

the RV, high-end automotive and bus markets;

and the commercial, industrial, and government markets.

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• NEWSlink - maritime news delivery service through a variety of means

• SPORTSlink - sporting content delivered through a variety of means

• TVlink - television programming delivered through a variety of means

• MOVIElink - movie distribution through a variety of means

• SPORTSlink TM - sporting content delivered through a variety of means

• TVlink TM - television programming delivered through a variety of means

• MOVIElink TM - movie distribution through a variety of means

• CommBox - data management software for maritime communications

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• KVH Watch - IoT Connectivity as a Service

• KVH Elite - dedicated bandwidth for HD-quality streaming

• KVH Elite TM - dedicated bandwidth for HD-quality streaming

We sell our mobile connectivity products directly and through an international network of independent retailers, chain stores, distributors, and service providers as well as to manufacturers of vessels, maritime equipment, and vehicles.

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As of December 31, 2021, $16.3 million of our backlog was scheduled for fulfillment in 2022 and $7.6 million was scheduled for fulfillment in 2023 through 2025.

The increase in backlog of $0.9 million from December 31, 2019 to December 31, 2020 was primarily the result of a $4.5 million increase in TACNAV product orders and $0.3 million in contracted engineering services, partially offset by a $3.2 million decrease in FOG product orders and a $0.5 million decrease in mobile connectivity product orders.

The increase in backlog of $3.5 million from December 31, 2020 to December 31, 2021 was primarily the result of a $9.0 million increase in FOG product orders and $2.6 million increase in mobile connectivity product orders, partially offset by a $7.3 million decrease in TACNAV product orders and a $0.7 million decrease in contracted engineering services.

Backlog consists of orders evidenced by written agreements and specified delivery dates for customers who are acceptable credit risks.

We do not include satellite connectivity or media content service sales in our backlog even though many of our satellite connectivity and media content customers have signed annual or multi-year service contracts providing for a fixed monthly fee.

Military orders included in backlog are generally subject to cancellation for the convenience of the customer.

Military orders included in backlog are generally subject to cancellation at the convenience of the customer.

When orders are canceled, we generally recover actual costs incurred through the date of cancellation and the costs resulting from termination.

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We also register our trademarks in the United States and other key international markets where we do business.

Our patents will expire at various dates between August 2021 and March 2038.

Our patents will expire at various dates between November 2022 and May 2040.

We enter into confidentiality agreements with our consultants, key employees, and sales representatives and maintain controls over access to and distribution of our technology, software, and other proprietary information.

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In the event that we are unable to obtain sufficient quantities of raw materials or components or unable to obtain sufficient access to the services needed to deliver our solutions on commercially reasonable terms or in a timely manner, our ability to manufacture and deliver our products and services on a timely and cost-competitive basis may be compromised, which may have a material adverse effect on our business, financial condition and results of operations.

To date, we have not experienced any material adverse effect on our financial condition or results of operations due to supplier limitations.

In 2021, we experienced delays in the availability and delivery of certain raw material components, which impacted our manufacturing efficiencies and resulted in delays in shipping products to our customers.

We also experienced increases in raw material costs, which we expect to continue throughout 2022.

We are continuing to monitor global developments and are prepared to implement any actions that we determine to be necessary to sustain our business, including expanding our sources of supply and modifying product designs to accommodate product availability.

We encounter significant competition in the markets we serve, and we expect this competition to intensify in the future.

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In the marine market for voice, fax, data, and Internet communications equipment, we compete primarily with Intellian, Cobham SATCOM, Orbit Communication Systems, Jotron AS, KNS Inc., Inmarsat, AddValue, and Iridium Satellite LLC.

In the marine market for high-speed voice, fax, data, and Internet services, we compete primarily with Inmarsat, Marlink, Speedcast, Network Innovations, Global Eagle Entertainment, and Isotropic Network.

In the marine market for high-speed voice, fax, data, and Internet services, we compete primarily with Inmarsat, Marlink, Speedcast, Network Innovations, Anuvu, and Isotropic Network.

We also face competition from providers of low-speed data services, which include Inmarsat, Globalstar LP, and Iridium Satellite LLC.

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In the markets for media content, the principal competitive factors are license rights, distribution, and price.

In the inertial navigation markets, we compete primarily with Honeywell International Inc., Northrop Grumman Corporation, Goodrich Aerospace, IAI, Fizoptica, SAGEM, and Systron Donner Inertial (purchased by EMCORE in 2019).

In the inertial navigation markets, we compete primarily with Honeywell International Inc., Northrop Grumman Corporation, Sensonor (purchased by Safran in 2021) and Systron Donner Inertial (purchased by EMCORE in 2019).

We believe the principal competitive factors in these markets are performance, size, reliability, durability, and price.

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Our current research and development efforts include projects to achieve additional cost reductions in our products and the development of new products and services for our existing marine and land mobile communications markets, and navigation, guidance, and stabilization application markets.

• In March 2019, we released the TracPhone V11-HTS, which we believe is the world’s fastest 1-meter Ku/C-band maritime VSAT antenna for global connectivity.

• In June 2019, we introduced KVH Watch, our new Internet of Things (IoT) Connectivity as a Service program for maritime applications utilizing our global VSAT communications.

• In October 2019, we released the TracVision UHD7 for Ultra High-definition 4K TV entertainment at sea.

• In June 2020, we introduced the P-1775 inertial measurement unit (IMU) featuring our new PIC Inside photonic integrated chip (PIC) technology.

• In August 2020, we launched the TracVision TV10, a 1 meter ultra high-efficiency marine satellite TV antenna designed to provide the biggest coverage footprint in our TracVision series.

• In March 2021, we released the TracPhone V30 mini-VSAT Broadband antenna featuring single-cable, DC-powered design, integrated modem in the dome for higher signal strength and efficiency, and compact below decks unit with built-in Wi-Fi.

• In November 2021, we expanded our KVH Watch suite of maritime IoT solutions with Cloud Connect, a service designed to utilize advanced edge computing to enable integration of maritime applications and digital services for smart shipping.

Our research and development activities consist of projects funded by us and projects funded partly by customers.

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International Traffic in Arms Regulations.

These products require an individual validated license to be exported to certain jurisdictions.

These products

require an individual validated license to be exported to certain jurisdictions.

The length of time involved in the licensing process varies and can result in delays of the shipping of the products.

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KVH team members are essential to the success of KVH.

We had 639 team members as of December 31, 2020, full-time employees, part-time employees, and long-term contractors.

These figures do not include short-term or temporary contractors, which in the aggregate do not comprise a material portion of our workforce.

We had 648 team members as of December 31, 2021, including full-time employees, part-time employees, and long-term contractors.

The figures in this section provide information as of December 31, 2021 and do not reflect the reduction in force that we implemented in March 2022, whereby we reduced our workforce by approximately 66 positions.

KVH Team Member Headcount

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Our team members are directly responsible for the creation, development, manufacture, marketing, sale, repair and support of our products and services.

Because we sell and support our products globally, we have a globally diverse workforce to manufacture products in the U.S.

Because we sell and support our products globally, we have a globally distributed workforce to manufacture products in the U.S.

and support our customers in the U.S.

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Among our 81 key executive leaders and most critical individual technology contributors, our turnover rate was 12.3% in 2021.

As above, the figures in this section provide information as of December 31, 2021 and do not reflect our March 2022 reduction in force.

The average length of employee service is 9 years.

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In 2021, KVH’s OSHA total recordable incident rate was 1.43 which is favorable compared to the 2020 OSHA national average of 2.9.

In 2020, we introduced a range of new safety protocols in our facilities in an effort to protect our employees and support appropriate health and safety protocols in response to COVID-19 and the global pandemic, including:

• Adding work from home flexibility.

• Offering voluntary on-site COVID-19 testing.

• Improving cleaning protocols across all locations.

• Providing regular communications regarding the impact of the COVID-19 pandemic, including updates regarding health and safety protocols and procedures.

• Implementing temperature screening for all visitors.

• Establishing new physical distancing procedures for on-site employees.

• Issuing personal protective equipment and cleaning supplies to on-site employees.

• Modifying workspaces with plexiglass dividers and touchless faucets.

• Implementing protocols to address actual and suspected COVID-19 cases and potential exposure.

These safety protocols have since been relaxed to align with federal and state mandates, but will return if the COVID-19 pandemic worsens.

We are committed to continued improvements to our safety, health, and wellness programs to meet our employees’ needs, which we believe is critical to attract and retain talent.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business