What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-03-15 compared with 2023-03-16 · 201 added, 183 removed, 158 unchanged (71% of the section changed)

15 unchanged sentences

We provide global high-speed Internet and Voice over Internet Protocol (VoIP) 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 customers in the maritime and hotel markets, along with supplemental value-added services.

We manufacture our products in Middletown, Rhode Island and sell our solutions in a number of major geographic areas, including internationally.

We generate revenues from various international locations, primarily consisting of Singapore, Canada, European Union countries and other European countries, countries in South America, Africa, Asia/Pacific and the Middle East and India.

During the second quarter of 2022, KVH Media Group Limited, our wholly owned subsidiary, sold its subsidiary KVH Media Group Entertainment Limited.

On August 9, 2022, we sold our inertial navigation business, which offered a portfolio of innovative digital compass and fiber optic gyro based systems, to EMCORE Corporation.

We currently manufacture our products in Middletown, Rhode Island, and we generate revenues in the United States and various international locations, including primarily Singapore, Canada, South American countries, European Union countries and other European countries, and countries in Africa, the Middle East and Asia/Pacific, including India.

As described below, we are winding down our product manufacturing operations in 2024.

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

2 unchanged sentences

Please see Notes 1 and 14 to our accompanying audited consolidated financial statements for additional information.

We provide integrated, end-to-end hardware, software, and services that support our customers’ need for access to the Internet, VoIP, operations content, and entertainment services.

On the hardware side of our business, we primarily manufacture and distribute a comprehensive family of mobile satellite antenna products that provide two-way access to the Internet and VoIP services outside the range of cellular phone service, along with in-motion, stabilized antennas that provide receive-only satellite television services.

Product sales accounted for 19% and 22% of our consolidated net sales for 2022 and 2021, respectively.

We provide integrated, end-to-end services, software, and hardware that support our customers’ need for access to the Internet, VoIP, operations content, and entertainment services while on the move.

On the services side of our business, sales of our global high-throughput satellite (HTS) airtime service accounted for 81% and 75% of our consolidated net sales for 2023 and 2022, respectively.

Sales of content services accounted for 3% and 4% of our consolidated net sales for 2023 and 2022, respectively.

On the hardware side of our business, we currently manufacture and distribute a comprehensive family of mobile satellite antenna products that provide two-way access to the Internet and VoIP services using Ku-band VSAT service with integrated 5G/LTE cellular service and support for shore-based Wi-Fi.

We distribute products manufactured by third-parties that support low earth orbit (LEO) satellite services.

We also manufacture in-motion, stabilized antennas that provide receive-only satellite television services.

Product sales accounted for 13% and 19% of our consolidated net sales for 2023 and 2022, respectively.

In the global maritime market, we believe that there is significant demand for mobile access to the Internet, operational data, voice services, entertainment content, and satellite television.

For both maritime and onshore customers who want to access live television while on the move, we offer a comprehensive family of mobile satellite antenna products marketed under the TracVision brand.

For mobile access to the Internet and VoIP services, which we refer to collectively as our airtime services, we offer a family of hybrid mobile satellite antenna products and communication services using global VSAT service, 5G/LTE cellular service, and shore-based Wi-Fi, which are marketed under the TracNet hybrid terminal and KVH ONE hybrid network brands, respectively.

In addition, we actively market and sell a 37 cm VSAT-only TracPhone V30 antenna and support our legacy family of other VSAT-only terminals marketed under the TracPhone brand and using our global HTS network.

For mobile access to the Internet and VoIP services, which we refer to collectively as our airtime services, we offer communication services using global VSAT service, 5G/LTE cellular service, and shore-based Wi-Fi, which are marketed under the KVH ONE hybrid network brand.

For customer access to our airtime services, we currently offer a family of parabolic hybrid mobile satellite antenna products, which are marketed under the TracNet hybrid terminal network brand.

Under our KVH ONE OpenNet program, customers using non-KVH Ku-band VSAT terminals can subscribe to our airtime services.

In addition, we offer a 37 cm parabolic VSAT-only TracPhone V30 antenna and support our legacy family of other VSAT-only terminals marketed under the TracPhone brand and using our global HTS network.

We are an authorized reseller of airtime and terminals supporting the Starlink LEO service, and we also have a distribution agreement in place with Eutelsat OneWeb for its LEO services.

The network infrastructure that we have developed to support our airtime services also supports the delivery of other value-added services, such as our KVH Link content service, with country-specific news, entertainment, music, and other crew welfare content delivered using our IP-MobileCast multicast delivery service.

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 vessel or vehicle is in motion.

For both maritime and onshore customers who want to access live television while on the move, we offer a comprehensive family of parabolic mobile satellite antenna products marketed under the TracVision brand.

Our certified support network offers our TracNet, TracVision, and TracPhone customers an international network of skilled technical dealers and support centers in many locations where our customers are likely to travel or conduct business.

We have selected these dealers based on their technical expertise, professionalism, and commitment to quality, and regularly provide them with extensive training in the sale, installation, and support of our products.

We also rely on this same sales and technical partner network to support our LEO hardware and airtime customers.

In February 2024, we announced a staged wind-down of our product manufacturing operations at our Middletown, Rhode Island location.

The wind-down was driven by reduced demand for our hardware products in the face of intensifying competition in the third and fourth quarters of 2023.

We concluded that we should discontinue our capital-intensive manufacturing activities and concentrate our efforts on growing sales of our multi-orbit, multi-channel, integrated communications solutions.

We expect that we will continue our product manufacturing activities in order to generate a targeted amount of inventory of maritime satellite connectivity and satellite television terminals to meet anticipated demand and that we will cease substantially all manufacturing activity by the end of the second quarter of 2024.

We expect to continue to facilitate customer transition to third-party hardware products compatible with our mobile satellite communications services.

We also plan to continue to conduct maintenance, service, warehousing, shipping and receiving activities at the Middletown location.

Airtime Services

We provide subscription plans that enable customers to obtain Internet and VoIP airtime services.

We acquire satellite bandwidth through third-party providers, manage our network operations, and provide 24/7/365 after-sale support.

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

The key features of KVH’s VSAT-based airtime services are a choice of high-speed and unlimited use airtime plans, a network management portal, and a comprehensive global customer support program.

Our high-speed plans offer simple, usage-based monthly data bundles.

When the high-speed data bundle is consumed, subscribers have the option to maintain high data speed at all times with low per MB overage rates or to shift to a slower unlimited use data speed for the remainder of the month.

Our unlimited use data plans offer plans based on maximum upload and download speeds.

All TracNet, TracPhone, and OpenNet 60 cm to 1 meter antennas support simultaneous high-speed and unlimited use plans for optimal flexibility, while all 37 cm terminals offer a single high-speed data channel.

Our customer portal, myKVH, is a secure site that offers KVH customers easy access to technical support, product warranty and user documentation, billing, and our system and network tools.

Available tools and reports include, among other features, terminal status, real-time data reporting and the ability to manage data access by application category, configure the KVH

terminal, optimize performance with Tracking Avoidance Zones, set data usage alerts and get real-time vessel tracking reports with up to one year of historical data.

AgilePlans, one of our options 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 either TracNet or TracPhone satellite communication hardware, subsidized shipping and installation, maintenance and support, airtime and VoIP services, a service management portal and certain basic content services with no minimum commitment and no long-term contract.

AgilePlans customers may also choose to add a Starlink terminal and data plan to a new or existing AgilePlans subscription.

We offer AgilePlans 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 the hardware and do not sell it to subscribers, who must return it to us if they terminate our service.

Returned units may be refurbished and redeployed for new AgilePlans subscriptions.

We expect that, as customers subscribe to our AgilePlans service, our revenues from product sales will continue to decline, and our provision of this equipment to subscribers will continue to comprise the majority of our capital expenditures.

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

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

Our global HTS network also benefits from Japanese satellite capacity provided by SKY Perfect JSAT.

Overall, our global HTS network currently uses a combination of 178 Ku-band transponders (5 of which we directly contract for) on 22 satellites to provide Ku-band coverage throughout the northern and southern hemispheres.

Of the 22 satellites, 6 are considered high-throughput satellites that provide coverage via overlapping high-powered spot beams.

Of the 178 Ku-band transponders, 158 are on high-throughput satellites.

In 2023, we expanded our satellite coverage with the addition of 2 new high throughput satellites that provide service over the North and Central American waters and the North Atlantic Ocean, respectively.

In the fourth quarter of 2023, we increased network capacity in the South Pacific, which addressed a previous coverage gap west of South America.

It is our long-term plan to continue to maintain and enhance our global HTS network.

Along with our Ku-band HTS network, we offer airtime services via other networks, such as Starlink and Iridium.

Later in 2024 we also plan to offer services from Eutelsat OneWeb.

In May 2023, we announced a new program for leisure and commercial vessels:

the KVH ONE OpenNet Program.

Vessels equipped with 60 cm to 1 m terminals built by other manufacturers, including Intellian and Cobham, can use their existing non-KVH VSAT antennas to subscribe to KVH’s global HTS network airtime, receive 24/7 airtime and technical support, and make use of KVH’s suite of value-added services.

Typically, no hardware exchanges are needed to subscribe to the service.

In October 2023, we signed an exclusive multi-year agreement with Kognitive Networks through which we are integrating Kognitive’s diverse suite of enterprise-grade network and bandwidth management tools, white-labeled as CommBox Edge, into our maritime mobile communication service offerings.

CommBox Edge is an integral element of our multi-orbit, multi-channel marine communication solutions, enabling more diverse hybrid configurations.

The new suite of tools integrates with and manages onboard connectivity with features such as a cloud-managed user interface, real-time data metering and analysis, WAN combination and control with advanced routing and channel bonding, which combines multiple internet connections for increased speed and performance, network protection and security with deep packet inspection, traffic policies, and VPN.

Network and bandwidth configuration are controlled via compact onboard services and both cloud-based and mobile applications.

Content Services

We offer a variety of value-added services to our maritime customers as well as news content to our hotel customers.

The vast majority of these value-added services are subscription-based.

Our KVH Media Group, which is based in the United Kingdom, distributes commercially licensed entertainment, including news, sports, and movies to commercial customers in the maritime and hotel markets, along with supplemental value-added services.

Sales from KVH Media Group are included as part of content service sales.

Our "news from home" digital newspaper service includes more than 100 daily newspapers in more than 20 languages.

The digital content can be printed onboard or viewed on a TV, tablet, smartphone, or laptop.

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

We offer a content subscription service called KVH Link, which is delivered by IP-MobileCast.

Through IP-MobileCast, content and data files are transmitted using multicast technology across our global satellite networks to every vessel that has an active, compatible TracPhone or TracNet terminal.

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

Before multicasting, large data files were generally transmitted across satellite networks “on demand,” or unicast, which consumes significant bandwidth.

The content is stored on the terminal itself, which is required for digital rights managed content such as movies.

Historically, studios have granted KVH Media Group permission to license non-theatrical exhibitions aboard ships.

While traditionally we licensed this content to commercial maritime customers primarily through the distribution of DVDs, we have automated the transmission of this type of entertainment via KVH Link.

We also offer linkHUB, a standalone digital service.

The linkHUB unit allows for a digital rights managed entertainment service without the need for a TracPhone or TracNet terminal.

Customers that subscribe to one of our entertainment packages generally receive a variety of movie and television content that is cached locally onboard.

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.

Value-added Services

We recognize that our customers desire more than just a simple pipe for data and connectivity.

Our TracNet and TracPhone systems are designed to support an expanding suite of value-added services that both increase the capabilities of our customers' systems as well as generate additional recurring revenue for KVH.

Among these value-added services are an enterprise-grade Managed Firewall powered by industry leader Fortinet, a cloud email system for commercial fleets and seafarers, crew Internet support, real-time vessel tracking, our KVH Link content service, and CommBox Edge.

We expect that the majority of these services will also be available through third-party antennas connected to our network.

Maritime Products

In the marine market, we currently offer a range of mobile satellite TV and communications products.

As noted above, we are winding down our product manufacturing operations at our Middletown, Rhode Island location and expect to cease substantially all manufacturing activity by the end of the second quarter of 2024.

We expect to continue to facilitate customer transition to third-party hardware products compatible with our mobile satellite communications services.

Our parabolic 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 vessel or vehicle is in motion.

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

1 unchanged sentence

If an obstruction temporarily blocks the satellite signal, our products either automatically switch to an available, alternate satellite beam or, if no other beam is available, continue to track the satellite’s location according to the movement of the antenna platform in order to carry out automatic, rapid reacquisition of the signal when a direct line of sight to the satellite is restored.

Our certified support network offers our TracVision, TracNet, and TracPhone customers an international network of skilled technical dealers and support centers in many locations where our customers are likely to travel or conduct business.

We have selected technical dealers based on their technical expertise, professionalism, and commitment to quality, and regularly provide them with extensive training in the sale, installation, and support of our products.

Maritime Products

In the marine market, we offer a range of mobile satellite TV and communications products.

Satellite Internet and Phone.

Our TracNet hybrid terminals and KVH ONE hybrid network offer an end-to-end, multichannel connectivity solution.

Our TracNet hybrid terminals offer an end-to-end, multichannel connectivity solution.

Every TracNet terminal includes an integrated Ku-band VSAT antenna, high-efficiency 5G/LTE cellular antenna, and high-powered Wi-Fi bridge for connections to shore-based Wi-Fi channels.

TracNet systems offer intelligent hybrid channel switching based on factors such as service availability, costs, and the quality of data transfer.

In addition, TracNet systems also offer the option to add two additional third-party services and their companion terminals to serve as alternate primary or backup services.

In addition, we continue to service and support our legacy TracPhone VSAT-only terminals.

All of these products and services provide an end-to-end solution for offshore mobile connectivity to commercial, leisure, and government customers seeking an integrated hardware and service solution for mobile communications and seamless region-to-region roaming.

We design and manufacture the TracNet and TracPhone terminals, acquire bandwidth through third-party providers such as Intelsat, manage our network operations, and provide 24/7/365 after-sale support.

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

In July 2022, we introduced our TracNet H-series terminals with three options:

Our TracNet systems also offer the option to add two additional third-party services and their companion terminals to serve as alternate primary or backup services.

We also continue to service and support our legacy TracPhone VSAT-only terminals.

Together with our airtime services, these products provide an end-to-end solution for offshore mobile connectivity to commercial, leisure, and government customers seeking an integrated hardware and service solution for mobile communications and seamless region-to-region roaming.

We manufacture the TracNet and TracPhone terminals and provide 24/7/365 after-sale support.

We integrate the full rack of discrete below-deck equipment typically used on traditional VSAT systems into a single, streamlined unit that is significantly easier to deploy than competing VSAT solutions.

We offer three TracNet H-series terminals:

the 37 cm TracNet H30, the 60 cm TracNet H60, and the 1 meter TracNet H90.

1 unchanged sentence

In addition, each antenna contains the modem in the dome for higher efficiency and reduced signal loss, along with single-cable installation.

VSAT data speeds offered by the TracNet systems vary by antenna diameter:

VSAT data speeds offered by the TracNet systems vary by antenna

TracNet H30 offers maximum speeds of 6/2 Mbps (down/up), TracNet H60 offers maximum speeds of 10/3 Mbps (down/up), and the TracNet H90 offers maximum speeds of 20/3 Mbps (down/up).

These sizes and speeds ensure that we offer a suite of products and services to support a wide range of vessels from leisure craft as small as 40 feet long and small fishing vessels to superyachts and large commercial vessels.

In addition to the TracNet systems, we also continue to offer our TracPhone V30 marine VSAT antenna, which was introduced in March 2021.

These sizes and speeds support a wide range of vessels from leisure craft as small as 40 feet long and small fishing vessels to superyachts and large commercial vessels.

Each TracNet H-series terminal includes a belowdeck hub that includes a Wi-Fi router along with support for intelligent automatic channel switching among as many as five discreet Wide Area Networks (WANs), including the integrated VSAT, 5G/cellular, and shore-based Wi-Fi services.

Automatic switching is managed based on an array of performance and service cost parameters.

In addition to the TracNet systems, we also continue to offer our TracPhone V30 marine VSAT antenna.

The TracPhone V30 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 up to 432 Kbps.

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

We continue to offer refurbished 60 cm TracPhone V7-HTS terminals as part of our AgilePlans Connectivity as a Service program.

LTE Broadband.

In June 2018, we introduced the TracPhone LTE-1, which is a high-gain dual antenna array, modem, GPS, and Wi-Fi router inside a 34 cm diameter dome.

We offer the TracPhone LTE-1, which is a high-gain dual antenna array, modem, GPS, and Wi-Fi router inside a 34 cm diameter dome.

The TracPhone LTE-1 is equipped with a U.S-only SIM card that provides Internet access in U.S.

waters as far as 20 miles or more (32 kilometers or more) offshore.

In June 2021, we introduced the LTE-1 Global marine communications system, which is equipped with a global SIM card that supports cellular data service in more than 150 countries with Internet access as far as 20 miles or more (32 kilometers or more) offshore.

We also offer the LTE-1 Global marine communications system, which is equipped with a global SIM card that supports cellular data service in more than 150 countries with Internet access as far as 20 miles or more (32 kilometers or more) offshore.

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

3 unchanged sentences

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

We also offer Iridium OpenPort hardware and service to be used in conjunction with our VSAT service.

We have also introduced CommBox Edge, a next-generation network and bandwidth management system and related services through our maritime distribution agreement with Kognitive Networks.

We also offer Iridium OpenPort service to be used in conjunction with our VSAT service.

Iridium OpenPort service provides data rates up to 128 kilobits per second (Kbps) and covers the entire world, including the polar regions.

We offer the Iridium hardware and service along with our own hybrid and VSAT solutions with the integrated CommBox functionality, which will switch over to the Iridium service if KVH’s VSAT, 5G/LTE, or shore Wi-Fi services are not available.

We offer the Iridium service along with our own hybrid and VSAT solutions with the integrated CommBox functionality, which will switch over to the Iridium service if KVH’s VSAT, 5G/LTE, or shore Wi-Fi services are not available.

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.

We currently offer three terminals compatible with Iridium Certus service – the Thales VesseLINK 200 (data speeds as fast as 176/176 Kbps down/up), the VesseLINK 700 (data speeds as fast as 704/352 Kbps down/up), and the Cobham Sailor 4300 (data speeds as fast as 704/176 Kbps down/up), which is only available to AgilePlans subscribers (described below).

We offer Iridium Certus, a next-generation L-band solution providing pole-to-pole global coverage.

Optional routing enables onboard data to switch between our KVH ONE hybrid network services and Iridium Certus.

In addition to our TracNet hybrid and TracPhone VSAT-only products and associated airtime services service, we also offer a family of Inmarsat-compatible TracPhone products that provide in-motion access to global satellite communications.

These products rely on services offered by Inmarsat, a satellite service provider that supports links for phone, fax, and data communications as fast as 432 Kbps.

The TracPhone FB250, FB500, and FleetOne antennas use the Inmarsat FleetBroadband service to offer VoIP and Internet service.

The TracPhone FB250, FB500 and FleetOne products are manufactured by Cobham and distributed on an original equipment manufacturer basis by us in North America under our TracPhone brand and distributed in other markets on a non-exclusive basis.

Unlike our VSAT airtime, where we control and sell the airtime, we purchase Inmarsat and Iridium airtime directly from these companies and resell it to our customers.

In March 2023, we informed our distribution channel that we will be selling Starlink terminals as companion terminals for new TracNet installations as well as for existing TracNet and TracPhone systems.

While Starlink offers a simple data pipe, we believe that a KVH/Starlink companion deployment offers a more robust solution thanks to our intelligent hybrid switching, KVH ONE global hybrid network, integrated services, enterprise-grade cybersecurity, and other features.

Customers who

purchase a Starlink companion terminal will be required to also have an active KVH VSAT airtime plan to activate the hybrid switching license.

Customers will be activating their Starlink airtime through and receiving technical support from Starlink, not from KVH.

We anticipate shipping Starlink units at the end of March 2023 or early April 2023.

We will be distributing these Starlink terminals on a non-exclusive basis and are not receiving any airtime commission.

In addition to our TracNet hybrid and TracPhone VSAT-only products and associated airtime services service, we also offer the Inmarsat-compatible TracPhone FleetOne product that provides in-motion access to global satellite communications.

The FleetOne terminals are manufactured by Cobham and distributed on an original equipment manufacturer basis by us in North America under our TracPhone brand and distributed in other markets on a non-exclusive basis.

In March 2023, we began selling Starlink terminals as companion terminals for new TracNet installations as well as for existing TracNet and TracPhone systems.

In September 2023, we became an authorized hardware and airtime reseller for Starlink.

We currently offer Starlink on its own and also as a KVH ONE global network companion service.

While Starlink offers a fast and lower-cost data pipe, we believe that a KVH and Starlink hybrid deployment offers a more robust solution thanks to our intelligent channel switching, KVH ONE global hybrid network, integrated services, enterprise-grade cybersecurity, and other features.

In January 2024, we announced a distribution agreement with EutelSat OneWeb that will enable us to expand our multi-orbit hybrid network to include Eutelsat OneWeb’s high-speed, low-latency service.

Under the terms of the agreement, KVH will offer Eutelsat OneWeb’s LEO connectivity services supporting terminals for commercial and leisure vessels via Eutelsat OneWeb’s LEO satellite constellation.

OneWeb’s network compromises more than 630 satellites in low earth orbit that can deliver enterprise-grade broadband connectivity services.

EutelSat OneWeb is rapidly expanding its network and ground

infrastructure to meet the needs of maritime’s global requirements.

We currently plan to source Eutelsat OneWeb-compatible flat-panel terminals from a third party, and we expect to commence shipments of terminals and service activations in the second quarter of 2024.

Unlike our VSAT Broadband airtime, where we control and sell the airtime, we purchase Starlink, Inmarsat, Iridium, and regional cellular data directly from these companies and resell it to our customers.

We anticipate using a similar arrangement with Eutelsat OneWeb upon launch of the global service, currently expected to occur in the second quarter of 2024.

Maritime Satellite TV .

5 unchanged sentences

Our TracVision HD-series satellite TV antennas are designed to offer a high-definition TV experience comparable to that available to a home DIRECTV HDTV subscriber.

Our TracVision UHD7, launched in October 2019, uses a 60 cm diameter satellite TV antenna to receive signals from two DIRECTV Ka-band satellites and one DIRECTV Ku-band satellite simultaneously.

It also supports Ku-band DISH Network in the United States, select portions of the Caribbean, and DISH Mexico in Central America, along with Bell TV in Canada.

Our TracVision UHD7 uses a 60 cm diameter satellite TV antenna to receive signals from two DIRECTV Ka-band satellites and one DIRECTV Ku-band satellite simultaneously.

It also supports Ku-band DISH Network in the United States, select portions of the Caribbean, and Bell TV in Canada.

It includes an IP-enabled antenna control unit and, as with the TracVision TV-series, the TracVision UHD7 offers configuration, status, and service capabilities via the optional, free TracVision application for use on iOS and Android mobile devices.

The TracVision UHD7 is the successor to our original award-winning TracVision HD7, which we believe was the first marine antenna to offer this combination tri-satellite reception capabilities.

Our TracVision HD11 offers a worldwide satellite TV capability through the use of a 1-meter diameter antenna and a global low noise block (LNB) designed for use with the majority of direct-to-home satellite TV services.

4 unchanged sentences

Land Mobile Products

We design, manufacture, and sell a range of TracVision satellite TV antenna systems for use on a broad array of vehicles, including recreational vehicles (RV), buses, conversion vans, and automobiles.

We sell several TracVision satellite TV antenna systems for use on a broad array of vehicles, including recreational vehicles (RV), buses, conversion vans, and automobiles.

In the RV and bus markets, we offer Ku-band TracVision satellite TV products, intended for both stationary and in-motion use.

Our TracVision R1 delivers standard-definition DIRECTV and high-definition DISH network service through a small 32 cm diameter dome.

Our TracVision R1 delivers standard-definition DIRECTV and high-definition DISH network service through a parabolic 32 cm diameter antenna.

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 standard-definition DIRECTV or high-definition 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 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.

The TracVision A9 is also suitable for tall motor coaches and buses.

Airtime Services

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

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

The key features of KVH’s airtime services are a choice of high-speed and unlimited use airtime plans, a network management portal, and a comprehensive global customer support program.

Our high-speed plans offer simple, usage-based monthly data bundles.

Our unlimited use data plans offer plans based on maximum upload and download speeds.

All TracNet and TracPhone 60 cm and 1 meter antennas support simultaneous high-speed and unlimited use plans for optimal flexibility while all 37 cm terminals offer a single high-speed data channel.

Our customer portal, myKVH, is a secure site that offers KVH customers easy access to technical support, product warranty and user documentation, billing, and our VSAT Manager and next-generation KVH Manager system and network tools.

Available tools and reports include, among other features, terminal status, real-time data reporting and the ability to

manage data access by application category, configure the KVH terminal, optimize performance with Tracking Avoidance Zones, set data usage alerts and get real-time vessel tracking reports with up to one year of historical data.

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

We offer AgilePlans 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 the hardware and do not sell it to subscribers, who must return it to us if they terminate our service.

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

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 global HTS network also benefits from Asian satellite capacity provided by SKY Perfect JSAT.

Overall, our global HTS network currently uses a combination of 159 Ku-band transponders (5 of which we directly contract for) on 22 satellites to provide Ku-band coverage throughout the northern and southern hemispheres.

Of the 22 satellites, 3 are considered high-throughput satellites that provide coverage via overlapping high-powered spot beams.

Of the 159 Ku-band transponders, 136 are on high-throughput satellites.

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 expanded our satellite connectivity services that will allow vessels to use KVH connectivity while operating in Indian territorial waters.

In addition, KVH now offers satellite connectivity services to Indian-flagged vessels.

It is our long-term plan to continue to maintain and enhance our global HTS 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 majority of our existing customers on the legacy network were migrated to the new global HTS network.

Content Services

We offer a variety of value-added services to our maritime customers as well as news content to our hotel customers.

The vast majority of these value-added services are subscription-based.

Sales from KVH Media Group are included as part of content service sales.

Our "news from home" digital newspaper service includes more than 100 daily newspapers in more than 20 languages that at the end of 2022 was delivered to more than 6,000 commercial ships, hotels, and cruise ships.

The digital content can be printed onboard or viewed on a tablet, smartphone, or laptop.

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

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 that has an active, compatible TracPhone V-series terminal.

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

Before multicasting, large data files were generally transmitted across satellite networks “on demand” or unicast, which consumes significant bandwidth.

The content is either stored on the terminal itself or on a KVH-supplied media server, which is required for digital rights managed content such as movies.

Historically, studios have granted KVH Media Group permission to license non-theatrical exhibitions aboard ships.

While traditionally we licensed this content to commercial maritime customers primarily through the distribution of DVDs, we have now also automated the transmission of this type of entertainment via KVH Link.

In June 2020, we also launched our standalone digital service, linkHUB, as an alternative to DVDs.

The linkHUB unit allows for a digital rights managed entertainment service without the need for a TracPhone V series or V-HTS series terminal.

Customers that subscribe to one of our entertainment packages generally receive a variety of movie and television content that is cached locally onboard.

as the highlights of sporting events.

Value-added Services

We also recognize that our customers desire more than just a simple pipe for data and connectivity.

Among these value-added services are a new enterprise-grade Managed Firewall powered by industry leader Fortinet, a cloud email system for commercial fleets and seafarers, real-time vessel tracking, and our KVH Link content service.

Sale of KVH Media Group Entertainment Limited

On April 29, 2022, KVH Media Group Limited, our wholly owned subsidiary, sold its subsidiary KVH Media Group Entertainment Limited for net cash proceeds of $2.4 million.

This transaction did not meet the criteria for reporting as discontinued operations under Financial Accounting Standards Board Accounting Standards Codification (ASC) 205-20.

We recorded a gain on the sale of approximately $0.7 million, which is recorded in other income, net in the accompanying consolidated statements of operations.

See Note 9 to our accompanying audited consolidated financial statements for the reduction of goodwill and intangibles associated with the KVH Media Group reporting unit as it relates to the sale of this subsidiary.

Sale of Inertial Navigation Business - Discontinued Operations

On August 9, 2022, we sold our inertial navigation business to EMCORE Corporation for gross proceeds of $55.0 million, less specified deductions and a holdback of $1.0 million and subject to a working capital adjustment.

The finalized working capital adjustment, which resulted in a $0.1 million payment to EMCORE, was recorded in the fourth quarter of 2022.

The holdback was released to us on August 17, 2022.

On August 9, 2022, we also entered into a Transition Services Agreement with EMCORE, pursuant to which we agreed to provide certain transition services to support the continued operation of the inertial navigation business for six months following the sale with two extension options of three months each.

The fee is comprised of both fixed monthly fees of approximately $0.1 million as well as variable amounts for certain additional services with escalation increases on the fixed and variable rates for each extension option.

We do not have any continuing involvement in these operations other than short-term transition services, which are being recorded as an offset to general and administrative expenses in continuing operations.

We determined that the sale met the requirements for reporting as discontinued operations in accordance with ASC 205-20.

Please see Notes 1 and 16 of our accompanying audited consolidated financial statements for further information.

Sales, Marketing and Support

4 unchanged sentences

As our business evolves, we may pursue additional sales channels, including direct sales, in various markets.

We believe our brands are well-known and well-respected by customers within their respective niches.

These brands include:

• TracVision® - satellite television systems for vessels and vehicles

• TracNet™ – integrated hybrid two-way communication terminals with VSAT, 5G/LTE, and shore-based Wi-Fi

• KVH ONE™ - global hybrid communication network supporting Internet, VoIP, content delivery, and more

• TracPhone® - two-way VSAT-only satellite communications systems

Our brands include:

• AgilePlans® – Connectivity as a Service Program

• CommBox™ – data management software for maritime communications

• CommBox™ Edge – advanced maritime network optimization and management solution

• KVH Elite TM – unlimited HD-quality streaming service for leisure yachts

• KVH Link – crew wellbeing content subscription service with delivery by IP-MobileCast

• KVH ONE® – global hybrid communication network supporting Internet, VoIP, content delivery, and more

• KVH OneCare™ – global services and support for TracNet and TracPhone systems

• MOVIElink TM – movie distribution through a variety of means

• MUSIClink™ – music and karaoke delivered through a variety of means

• NEWSlink™ – maritime news delivery service through a variety of means

• OpenNet – delivering KVH VSAT data services to non-KVH Ku-band VSAT terminals

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

• TracNet™ – integrated hybrid two-way communication terminals with VSAT, 5G/LTE, and shore-based Wi-Fi

• TracPhone® – two-way VSAT-only satellite communications systems

• TracVision® – satellite television systems for vessels and vehicles

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

• MOVIElink TM - movie distribution through a variety of means

• MUSIClink™ - music and karaoke delivered through a v

• CommBox™ - data management software for maritime communications

• KVH OneCare™ - global services and support for TracNet and TracPhone systems

• AgilePlans® - Connectivity as a Service Program

• KVH Elite TM – unlimited HD-quality streaming service for leisure yachts

We sell our 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.

3 unchanged sentences

Intellectual Property

We currently hold a collection of intellectual property rights relating to various aspects of our hardware products, software and services.

We believe that our ability to compete effectively depends to a significant extent on our ability to protect these intellectual property rights and our proprietary information.

We currently hold intellectual property rights relating to various aspects of our hardware products, software and services.

We believe that our ability to compete effectively depends in part on our ability to protect these intellectual property rights and our proprietary information.

We rely primarily on patent, copyright and trade secret laws, trademarks, service marks, trade dress, confidentiality procedures, and licensing arrangements to protect our intellectual property rights in the U.S.

5 unchanged sentences

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 January 2024 and May 2037.

Our patents will expire at various dates between October 2024 and May 2037.

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.

From time to time, we have faced claims by third parties that our products or technologies infringe their patents or other intellectual property rights.

We do not generally conduct exhaustive patent searches to determine whether the technology used in our products infringes patents held by third parties.

We do not conduct exhaustive patent searches to determine whether the technology used in our products infringes patents held by third parties.

In addition, product development is inherently uncertain in a rapidly evolving technological environment in which there may be numerous patent applications pending, many of which are confidential when filed, with regard to similar technologies.

16 unchanged sentences

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.

In 2022, we continued to experience delays in the availability and delivery of certain raw material components, which impacted our manufacturing and resulted in shipping delays in getting products out to our customers.

We also experienced increases in raw material costs, which we expect to continue into 2023.

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.

Many of our primary competitors are well-established companies and some have substantially greater financial, managerial, technical, marketing, operational, and other resources than we do.

In the marine market for satellite TV equipment, we compete primarily with Intellian, Cobham SATCOM and Raymarine (Intellian made).

In the marine market for voice, fax, data, and Internet communications equipment, we compete primarily with Intellian and Cobham SATCOM.

During the year ended December 31, 2023, we continued to experience delays in the availability and delivery of certain raw material components.

We also experienced increased raw material costs.

We are continuing to monitor global developments, including the impact of inflation, and are prepared to implement actions that we determine to be necessary to sustain our business.

Working Capital and Seasonality

We hold significant inventory to support our customers and provide prompt delivery of finished goods.

As a consequence, we expend substantial working capital in advance of receipt of customer orders.

We expect to increase our inventory substantially as we ramp up production during the first and second quarters of 2024 in order to generate a targeted amount of inventory of maritime satellite connectivity and satellite television terminals to meet anticipated demand, as we will then cease substantially all manufacturing activity at the Middletown facility by the end of the second quarter of 2024.

Our leisure marine business is highly seasonal, and seasonality can also impact our commercial marine business.

Historically, we have generated the majority of our marine leisure product revenues during the first and second quarters of each year, and these revenues typically decline in the third and fourth quarters of each year.

Temporary suspensions of our airtime services typically increase in the fourth and first quarters of each year as boats are placed out of service during the winter months.

We encounter intense competition in the markets we serve, and we expect the intensity of competition to continue to increase in the future.

Many of our primary competitors are large, well-established companies, many have substantially greater financial, managerial, technical, marketing, operational, and other resources than we do, and others have entered the markets with significantly disruptive new technology and services.

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

Additionally, we are starting to face competition from new low earth orbit (LEO) networks such as SpaceX's Starlink and OneWeb.

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

In the market for land mobile satellite TV equipment, we compete primarily with King Controls and Winegard Company.

In the markets for media content, we compete primarily with Swank Motion Pictures, Baze Technology, and

Newspapersdirect Inc.

In the markets for mobile satellite connectivity products, the principal competitive factors are product size, features, design, performance, reliability, and price.

In the markets for airtime services, the principal competitive factors are geographic coverage, data speed, value-added services, and price.

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

Although we believe that we compete favorably with respect to these factors, there can be no assurance that we will continue to do so.

We encounter substantial competition in most of our product lines, although no single competitor competes with us across all product lines.

More recently, SpaceX's Starlink has emerged as a significant competitor with flat-

panel, electronically steered array (ESA) terminals and its new LEO network.

Other LEO services, such as Eutelsat OneWeb, are also entering the market.

In addition, we face some competition from providers of low-speed data services, which include Inmarsat and Iridium Satellite LLC.

In the marine market for voice, fax, data, and Internet communications equipment, we compete primarily with Intellian and Cobham SATCOM with regard to parabolic antennas.

The emergence of ESA terminals from companies like Starlink has significantly increased competitive pressure on traditional parabolic antennas.

In the markets for media content, we compete primarily with Swank Motion Pictures, Baze Technology, and Newspapersdirect Inc.

In the marine market for satellite TV equipment, we compete primarily with Intellian, Cobham SATCOM and Raymarine (Intellian made).

Traditional satellite TV products and services in the marine market also face pressure from the rising use of streaming services, which are more practical in marine applications following the launch of high-speed, lower-cost LEO services.

In the market for land mobile satellite TV equipment, we compete primarily with King Controls and Winegard Company as well as with Starlink and streaming services.

In the markets for airtime services, the principal competitive factors are price, geographic coverage, data speed, and value-added services.

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

In the markets for mobile satellite connectivity products, the principal competitive factors are price, product size, features, design, performance, and reliability.

As noted above, as a result of increased competition, we are winding down our product manufacturing operations.

We currently expect to continue to offer our products into 2025 as part of our plan to gradually transition customers to third-party hardware.

In our markets for airtime services and media content, we believe that we compete favorably with respect to a majority of these factors based on our existing products and services, our new vendor relationships and services such as our agreement with Eutelsat OneWeb, and our expanding suite of integrated solutions with advanced network and bandwidth management.

However, there can be no assurance that we will continue to do so.

Research and Development

Focused, efficient investments in research and development are critical to our future growth and competitive position in the marketplace.

Our research and development efforts are directly related to timely development of new and enhanced products and services that are central to our core business strategy and our ability to drive profitable, sustainable growth.

The industries in which we compete are subject to rapid technological developments, evolving industry standards, changes in customer requirements, and new product and service introductions and enhancements.

As a result, our success depends in part upon our ability, on a cost-effective and timely basis, to continue to enhance our existing products and to develop and introduce new products and services that improve performance and meet customers’ operational and cost requirements.

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.

• In March 2021, we released the TracPhone V30 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 July 2022, we introduced the TracNet H30, H60 and H90 in our H-Series product line.

• In October 2022, we introduced DC-powered versions of the TracNet H30 and H60 in our H-Series product line.

We strive to be the first company to bring new products to market in order to maintain our market leadership position, and we use our own funds when necessary to accelerate new product development efforts.

Focused, efficient investments in research and development are important to our future growth and competitive position in the marketplace.

Our research and development efforts are directly related to timely development of new and enhanced services and related products that are central to our core business strategy and our ability to drive profitable and sustainable growth.

The industries in which we compete are subject to rapid technological developments, evolving industry standards, changes in customer requirements, and new service and product introductions and enhancements.

As a result, our success depends in part upon our ability, on a cost-effective and timely basis, to continue to enhance our existing services and to develop and introduce new products and services that improve performance and meet customers’ operational and cost requirements.

Our current research and development activities relate to cellular product and service development, enhancing our VSAT product lines with new features desired by our customers, and integrating available and emerging non-geostationary satellite orbit (NGSO) products and services, specifically Starlink and OneWeb, into our overall maritime offering.

Government Regulation

2 unchanged sentences

We are also subject to the laws and regulations of the U.S.

and foreign jurisdictions in which we offer and sell our satellite communication products and services, including those of the European Union, Brazil, Norway, Singapore, and Japan.

and foreign jurisdictions in which we offer and sell our satellite communication products and services, including those of the European Union, Brazil, Norway, Singapore, Japan and India.

M any of the countries where our customers use our products and services have licensing and regulatory requirements for the importation and use of satellite communications and reception equipment, including the use of such equipment in territorial waters, the transmission of satellite signals on certain radio frequencies, the transmission of VoIP services using such equipment, and, in some cases, the reception of certain video programming services.

11 unchanged sentences

The figures in this section provide information as of December 31, 2023.

In February 2024, we announced a planned headcount reduction of 75 employees, which we expect to complete by the end of the second quarter of 2024.

KVH Team Member Headcount

Category Number at December 31, 2023 Number After February 2024 Reduction in Force

Full-Time Employees 325 252

1 unchanged sentence

Long-term Contractors 7 7

Total 345 270

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

3 unchanged sentences

KVH Team Member Headcount

Country Number at December 31, 2023 Number After February 2024 Reduction in Force

United States 182 112

United Kingdom 49 49

Denmark 12 10

Singapore 12 12

Hong Kong 2 2

Netherlands 1 1

South Africa 1 1

United Kingdom 65

United States 192

Total 345 270

Approximately 61 team members, or 18%, are directly involved in supporting our technology in positions such as engineers, technicians, or software developers.

Of the 61 team members, 19 were impacted by the previously mentioned headcount reduction.

Employee Engagement

We believe we have strong relationships with our workforce.

We believe we generally have strong relationships with our workforce.

We do not yet know the long-term impact of our recent workforce reduction on employee morale.

In 2023, our global turnover rate was 12%, including voluntary and involuntary separations.

Among our 41 key executive leaders and most critical individual technology contributors, our turnover rate was 5% in 2023.

These turnover rates exclude the reductions related to the sales of our inertial navigation business and our media subsidiary, and also exclude the approximately 10% reduction in our workforce in connection with our March 2022 restructuring.

The average length of employee service is 10.5 years.

The continuity of our employee base is important to the success of our business, as our employees have deep knowledge of our products and are critical to the services that we provide to our customers.

KVH surveys team member engagement at least annually.

The survey standardizes how KVH measures engagement across our organization and affords us an opportunity to address areas for improvement.

By listening to employees, we gain a better understanding of what our employees need in order to succeed, enabling us to develop programs that create a stronger and more committed workforce.

Inclusion and Diversity

KVH actively cultivates the diverse talents of our team and strives to recruit a diverse and inclusive workforce everywhere we operate.

We believe this enables better business decisions, enhanced product development, and superior customer service.

KVH strives to recruit and retain a diverse and inclusive workforce.

We believe this approach enables better business decisions, enhanced product development, and superior customer service.

Our diversity and inclusion principles are also reflected in our employee training, in particular with respect to our policies against harassment in the workplace.

7 unchanged sentences

• Annual salary increases and incentive compensation include adjustments based on merit, which is communicated to employees through our annual review process and upon internal transfers and/or promotions.

• All employees are eligible for health insurance, paid and unpaid leaves, a retirement plan and life and disability/accident coverage, subject to applicable regulations.

employees are eligible for health insurance, paid and unpaid leaves, a retirement plan and life and disability/accident coverage, subject to applicable regulations.

Benefits for international employees vary by country.

Health and Safety

We are committed to protecting the health and safety of our employees and others who enter any of our facilities, wherever located.

We are committed to protecting the health and safety of our employees and others who enter our facilities.

In 2023, KVH’s Occupational Safety and Health Administration (OSHA) total recordable incident rate was 2.2%, which is favorable compared to the 2023 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.

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.

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

We believe that creating a safe and supportive workplace is vital to our success.

3 unchanged sentences

In 2023, we hired 11 professional level team members.

Working Capital and Seasonality

We hold significant inventory to support our customers and provide prompt delivery of finished goods.

As a consequence, we expend substantial working capital in advance of receipt of customer orders.

Our leisure marine business is highly seasonal, and seasonality can also impact our commercial marine business.

Temporary suspensions of our airtime services typically increase in the third and fourth quarters of each year as boats are placed out of service during the winter months.

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