Inventories consist primarily of telecommunications systems and parts and are recorded at the lower of average cost or net realizable value. We evaluate the need for write-downs associated with obsolete, slow-moving and nonsalable inventory by reviewing net realizable inventory values on a periodic basis.

Inventories as of June 30, 2026 and December 31, 2025 were as follows (in thousands):


	June 30,		December 31,
	2026		2025
Work-in-process component parts	$	49,562	$	41,713
Finished goods		75,583		57,140
Total inventory(1)	$	125,145	$	98,853

(1) See Note 4, “Government Assistance,” for additional information.

Prepaid expenses and other current assets as of June 30, 2026 and December 31, 2025 were as follows (in thousands):


	June 30,		December 31,
	2026		2025
Interest rate caps and receivable	$	3,215	$	3,365
FCC reimbursement receivable(1)		39,322		27,769
Contract assets(1)		11,347		10,092
Prepaid inventories		2,232		2,545
Other		25,351		25,268
Total prepaid expenses and other current assets	$	81,467	$	69,039

(1) See Note 4, “Government Assistance,” for additional information.

Property and equipment as of June 30, 2026 and December 31, 2025 were as follows (in thousands):


	June 30,			December 31,
	2026			2025
Office equipment, furniture, fixtures and other(1)	$	59,811		$	56,973
Leasehold improvements		16,969			16,855
Network equipment(1)(2)		197,030			195,640
		273,810			269,468
Accumulated depreciation		(161,135	)		(152,194	)
Total property and equipment, net	$	112,675		$	117,274

(1) To conform with current-period classification, as of December 31, 2025, $2.4 million has been reclassified from Office equipment, furniture, fixtures and other to Network equipment.

In addition to the above, the Company classified $26.4 million and $26.3 million of property and equipment as Assets held for sale on our Unaudited Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively. Assets held for sale represent the main corporate facility and data center of Satcom Direct and associated land in Melbourne, Florida. The Company expects to sell the assets within the next twelve months.

Other non-current assets as of June 30, 2026 and December 31, 2025 were as follows (in thousands):


	June 30,		December 31,
	2026		2025
Interest rate caps	$	843	$	1,108
Contract assets, net of allowances of $714 and $538, respectively(1)		38,386		29,500
Revolving credit facility deferred financing costs		1,207		1,584
Other		13,851		12,736
Total other non-current assets	$	54,287	$	44,928

(1) See Note 4, “Government Assistance,” for additional information.


	June 30,		December 31,
	2026		2025

Earnout Liability	$	23,100	$	38,900
Employee compensation and benefits		13,726		28,174
Operating leases		14,022		13,850
Customer credit reserve		13,667		14,647
Accrued inventory		2,699		8,845
Warranty reserve		5,190		5,720
Taxes		6,789		5,437
Accrued interest		121		132
Other		21,422		23,315
Total accrued liabilities	$	100,736	$	139,020

Other non-current liabilities as of June 30, 2026 and December 31, 2025 were as follows (in thousands):


	June 30,		December 31,
	2026		2025
Earnout Liability	$	11,100	$	33,000
Other		10,949		11,064
Total other non-current liabilities	$	22,049	$	44,064