Discontinued Operations

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

18.Discontinued Operations

As discussed in Note 1, “Basis of Presentation,” on December 1, 2020 we completed the sale of our CA business to Intelsat. As a result of the Transaction, the CA business is reported for all periods as discontinued operations.

The following table summarizes the results of discontinued operations which are presented as Net loss from discontinued operations, net of tax, in our Unaudited Condensed Consolidated Statements of Operations (in thousands):

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2022		2021			2022		2021
Revenue:
Service revenue	$	—	$	—		$	—	$	—
Equipment revenue		—		—			—		—
Total revenue		—		—			—		—
Operating expenses:
Cost of service revenue (exclusive of amounts shown below)		—		—			—		—
Cost of equipment revenue (exclusive of amounts shown below)		—		—			—		—
Engineering, design and development		—		—			—		—
Sales and marketing		—		—			—		—
General and administrative		—		2,754			—		4,555
Depreciation and amortization		—		—			—		—
Total operating expenses		—		2,754			—		4,555
Operating loss		—		(2,754	)		—		(4,555	)
Total other (income) expense		—		—			—		—
Loss before income taxes		—		(2,754	)		—		(4,555	)
Income tax provision		—		100			—		100
Net loss from discontinued operations, net of tax	$	—	$	(2,854	)	$	—	$	(4,655	)

Stock-based compensation – In August 2020 the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved modifications to the vesting conditions and exercise periods of outstanding equity compensation awards held by certain of our then-current employees who became employees of Intelsat in the Transaction. Certain of these awards vested based on conditions that were not classified as a service, market or performance condition, and as a result such awards were classified as a liability. As of December 31, 2021, there were no remaining liability-classified awards.

The following is a summary of our stock-based compensation expense contained within the results of discontinued operations by operating expense line (in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Cost of service revenue	$	—	$	—	$	—	$	—
Engineering, design and development		—		—		—		—
Sales and marketing		—		—		—		—
General and administrative		—		2,802		—		3,855
Total stock-based compensation expense	$	—	$	2,802	$	—	$	3,855

See Note 15, “Stock-Based Compensation and 401(k) Plan,” for additional information on our stock-based compensation plans.

Other Costs Classified to Discontinued Operations – During the three- and six-month periods ended June 30, 2021, we incurred $0.1 million and $0.8 million, respectively, of additional costs (exclusive of the stock-based compensation expense noted above) primarily due to employer-paid taxes arising from the exercise of stock options by former employees then employed by Intelsat.