Commission file number 001-33117 GLOBALSTAR, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Exact Name of Registrant as Specified in Its Charter) Incorporation or Organization) Delaware 41-2116508 (State or ...

[Globalstar First Quarter 2024 Financial Results](index=1&type=section&id=Globalstar%20First%20Quarter%202024%20Financial%20Results) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Globalstar exceeded Q1 2024 financial expectations with sequential and prior-year revenue growth, reaffirmed full-year guidance, and advanced new government contracts and XCOM RAN product shipments - CFO Rebecca Clary noted that Q1 financial results generally **exceeded expectations**, with revenue **higher sequentially** and versus the prior year's quarterly average, and the company **reiterated its full-year 2024 guidance**[3](index=3&type=chunk) - CEO Dr. Paul E. Jacobs highlighted **significant progress** in new initiatives expected to drive future growth, including a **new government contract**, testing new technology on the satellite constellation, and commencing **commercial shipments of XCOM RAN products**[3](index=3&type=chunk) Q1 2024 Key Financial Metrics vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $56.5 million | $58.6 million | -3.7% | | Net Loss | ($13.2 million) | ($3.5 million) | +277.6% | | Adjusted EBITDA | $29.6 million | $32.6 million | -9.2% | | EPS (Diluted) | ($0.01) | ($0.00) | - | [Operational Review](index=1&type=section&id=Operational%20Review) Globalstar advanced key operational initiatives, including a new government contract POC, securing a major XCOM RAN customer, demonstrating significant performance gains, and progressing FCC approval for a replacement satellite constellation and Band n53 spectrum business - Initiated a **proof-of-concept (POC) phase** for a government services contract, which, if successful, will become a **five-year agreement** with minimum revenue commitments escalating to **$20 million** in the fifth year, plus a revenue share[5](index=5&type=chunk)[7](index=7&type=chunk) - Secured a **customer win** with one of the world's largest retailers for its **XCOM RAN product** to be deployed in Micro Fulfillment Centers (MFCs), with **commercial deliveries began in April 2024**[5](index=5&type=chunk) - Conducted over-the-air testing for XCOM RAN, demonstrating **capacity gains of 4x to 5x** compared to traditional small cell implementations[5](index=5&type=chunk) - The company's application with the FCC for a replacement satellite constellation has completed its public comment cycle, and **authorization is expected soon**, with the FCC **reaffirming Globalstar's exclusive license** in its portion of the Big LEO band[12](index=12&type=chunk) - Globalstar aims to generate **recurring revenue** from its **Band n53 terrestrial spectrum**, which it believes is a **unique offering** with a thriving ecosystem supported by Qualcomm chipsets[12](index=12&type=chunk) [Financial Review](index=2&type=section&id=Financial%20Review) Q1 2024 saw total revenue decrease to **$56.5 million** due to lower equipment sales, resulting in an operating loss of **$4.7 million**, a widened net loss of **$13.2 million**, and a decline in Adjusted EBITDA to **$29.6 million**, while cash remained stable at **$59.3 million** [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenue for Q1 2024 decreased to **$56.5 million** from **$58.6 million** in Q1 2023, as growth in service revenue, particularly Commercial IoT, was offset by a significant decline in subscriber equipment sales Q1 Revenue Breakdown (in thousands) | Revenue Type | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Service Revenue | $53,465 | $52,954 | +1.0% | | Subscriber Equipment Sales | $3,015 | $5,690 | -47.0% | | **Total Revenue** | **$56,480** | **$58,644** | **-3.7%** | - Excluding a nonrecurring revenue item in Q1 2023, service revenue increased by **$3.7 million**, or **7%**, year-over-year[6](index=6&type=chunk) - Commercial IoT service revenue increased **24%** from Q1 2023, driven by growth in both ARPU and the subscriber base[8](index=8&type=chunk) - Subscriber equipment sales were down **$2.7 million** YoY, as the prior-year quarter was a record high for SPOT and Commercial IoT sales due to inventory replenishment following supply chain disruptions[10](index=10&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Q1 2024 saw a shift to an operating loss of **$4.7 million** from a **$7.2 million** income, with net loss widening to **$13.2 million** and Adjusted EBITDA declining to **$29.6 million**, primarily due to lower equipment revenue and increased operating expenses Q1 Profitability Metrics (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | (Loss) Income from Operations | ($4,712) | $7,191 | | Net Loss | ($13,196) | ($3,480) | | Adjusted EBITDA | $29,634 | $32,574 | - The shift to an operating loss was driven by **higher operating expenses** and **lower equipment revenue**[11](index=11&type=chunk) - Operating expenses increased due to **higher stock-based compensation**, **gateway operating costs** (maintenance, security, IT), and **increased legal and professional fees**[11](index=11&type=chunk)[13](index=13&type=chunk) [Liquidity and Cash Flow](index=3&type=section&id=Liquidity%20and%20Cash%20Flow) As of March 31, 2024, Globalstar maintained **$59.3 million** in cash, with **$29.8 million** net cash from operations and **$27.1 million** from financing activities primarily funding **$54.2 million** in capital expenditures for network upgrades and satellite procurement Key Liquidity and Cash Flow Data (Q1 2024) | Metric | Amount (in millions) | | :--- | :--- | | Cash and Cash Equivalents (End of Period) | $59.3 | | Net Cash from Operations | $29.8 | | Capital Expenditures | $54.2 | - Investing outflows were largely for **network upgrades**, including milestone work for **new satellites** with MDA and **launch services** with SpaceX[17](index=17&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Globalstar reiterated its full-year 2024 financial guidance, projecting total revenue between **$225 million** and **$250 million** with an Adjusted EBITDA margin of approximately **50%** Full Year 2024 Financial Outlook | Metric | Guidance | | :--- | :--- | | Total Revenue | $225 million to $250 million | | Adjusted EBITDA Margin | Approximately 50% | [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, including the Statement of Operations, Balance Sheet, Adjusted EBITDA reconciliation, and selected operating metrics [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (In thousands, except per share data) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | | **Revenue:** | | | | Service revenue | $53,465 | $52,954 | | Subscriber equipment sales | $3,015 | $5,690 | | **Total revenue** | **$56,480** | **$58,644** | | **Total operating expenses** | **$61,192** | **$51,453** | | **(Loss) income from operations** | **($4,712)** | **$7,191** | | Total other expenses | ($8,476) | ($10,627) | | **Net loss** | **($13,196)** | **($3,480)** | | **Net loss per common share (Basic & Diluted)** | **($0.01)** | **($0.00)** | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (In thousands) | | **March 31, 2024** | **December 31, 2023** | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $59,282 | $56,744 | | Total current assets | $135,977 | $142,653 | | **Total assets** | **$917,006** | **$924,309** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $135,682 | $175,908 | | Long-term debt | $364,123 | $325,700 | | **Total liabilities** | **$539,952** | **$545,330** | | **Total stockholders' equity** | **$377,054** | **$378,979** | [Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20Non-GAAP%20Adjusted%20EBITDA) Reconciliation to Adjusted EBITDA (In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | | Net loss | ($13,196) | ($3,480) | | Interest income and expense, net | $3,785 | $2,032 | | Depreciation, amortization, and accretion | $22,097 | $21,933 | | EBITDA | $13,647 | $20,529 | | Non-cash compensation | $9,227 | $3,760 | | Loss on extinguishment of debt | $0 | $10,403 | | **Adjusted EBITDA** | **$29,634** | **$32,574** | [Schedule of Selected Operating Metrics](index=9&type=section&id=Schedule%20of%20Selected%20Operating%20Metrics) Q1 2024 vs Q1 2023 Operating Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Average Subscribers** | | | | Duplex | 29,257 | 36,616 | | SPOT | 249,640 | 266,067 | | Commercial IoT | 502,915 | 462,077 | | **Total Subscribers** | **782,126** | **765,160** | | **ARPU** | | | | Duplex | $54.18 | $52.35 | | SPOT | $13.68 | $14.17 | | Commercial IoT | $4.27 | $3.74 |

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K 1351 Holiday Square Blvd. Covington, Louisiana 70433 (Address of Principal Executive Offices) Registrant's Telephone Number, Including Area Code (985) 335-1500 Securities registered pursuant to section 12(b) of the Act: Title of each class Trading Symbol Common Stock, par value $0.0001 per share GSAT NYSE American ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Y ...

Financial Data and Key Metrics - Total revenue for 2023 was $224 million, a 51% increase YoY, driven by higher wholesale capacity service revenue [51] - Adjusted EBITDA for 2023 was $117 million, a 100%+ increase YoY, with a margin of 52%, up from 39% in 2022 [17] - Cash at year-end 2023 was $56.7 million, a 77% YoY increase, with net leverage under 3x [18] - 2024 revenue guidance is between $225 million and $250 million, with an adjusted EBITDA margin of approximately 50% [53] Business Line Data and Key Metrics - Wholesale satellite business saw significant growth, with new partnerships and a $20 million annual revenue commitment from a government services company [11][27] - Commercial IoT revenue grew 17% in 2023, with gross subscriber activations up 8% and ARPU increasing due to higher usage and unlimited plans [78][79] - Terrestrial spectrum initiatives, including a $1.5 million order from a major U.S. retailer, are expected to drive future growth [15][55] Market Data and Key Metrics - The total addressable market (TAM) for LEO capacity is increasing, driven by demand for new consumer capabilities and IoT applications [9] - The IoT B2B TAM is expected to grow to $10.4 billion annually by 2035, presenting a significant opportunity for the company [78] Company Strategy and Industry Competition - The company is leveraging its bent-pipe architecture to upgrade technologies on the ground without significant CapEx, providing flexibility to respond to market changes [12] - Strategic focus on four pillars: wholesale satellite, legacy products, IoT, and terrestrial spectrum, with a strong emphasis on innovation and differentiation [26][27][29] - Partnerships with Nokia and XCOM Labs are driving new opportunities in terrestrial spectrum and 5G technology [14][32] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about 2024 and beyond, with new satellites under construction to enhance the constellation and drive capacity growth [9][70] - The company is investing in new initiatives, including IoT and terrestrial spectrum, to create a virtuous cycle of innovation and differentiation [25][37] - The company expects to continue growing its wholesale business and expanding its IoT capabilities, supported by a strong financial position [16][18] Other Important Information - The company has a new government services partnership with a minimum revenue commitment of $20 million annually over a 5-year term [11] - The first commercial order for XCOM RAN systems from a major U.S. retailer is expected to be fulfilled in 2024, with potential for material commercial scale [15] Q&A Session Summary Question: Initial deployment for a major U.S.-based retailer and Band 53 spectrum [38] - The company is working on multi-band radio units to support Band 53, which will be a competitive differentiator for private network customers [55] - The value of the spectrum will be demonstrated through its integration with XCOM RAN technology, creating significant opportunities [57] Question: Terrestrial spectrum lease and Nokia radios [44] - The Nokia deployment is mission-critical, with a focus on reliability in complex environments, and future potential for increased throughput [45] - No incremental CapEx is required for the network services agreement, as the existing satellite constellation can support the growth [64] Question: Future weighting of the four pillars of value [48] - Management is particularly excited about the terrestrial and IoT opportunities, with the potential to scale significantly in the IoT space [66][67] Question: FCC's initial proposal on satellite-to-ground spectrum [49] - The company is monitoring the FCC's proposal and sees potential for new services, leveraging its global spectrum and relationships with cellular operators [69] Question: Reporting of spectrum lease revenue and stock compensation [58] - Spectrum lease revenue will initially be reported in other service revenues and broken out if it becomes material [58] - Stock compensation is elevated in 2023 and will remain so for the next two years due to performance-based restricted stock units [43]

GLOBALSTAR ANNOUNCES 2023 FINANCIAL RESULTS Covington, LA, February 28, 2024 -- Globalstar, Inc. (NYSE American: GSAT) today announced its operating and financial results for the fourth quarter and year ended December 31, 2023. "Globalstar had a record year measured by several key performance indicators, led by total revenue of $224 million, an increase of over 50% from 2022. Revenue growth was driven primarily by increases in wholesale capacity services and Commercial IoT. Given the high margin nature of o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33117 GLOBALSTAR, INC. (Exact Name of Registrant as Specified in Its Charter) Incorporation or Organization) Delaware 41-2116508 (State ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33117 GLOBALSTAR, INC. (Exact Name of Registrant as Specified in Its Charter) Incorporation or Organization) FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Delaware 41-2116508 (State or O ...

Globalstar, Inc. (NYSE:GSAT) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET Company Participants James Monroe - Executive Chairman Timothy Taylor - VP, Finance, Business Operations & Strategy and Director Rebecca Clary - VP & CFO David Kagan - CEO Kyle Pickens - VP, Strategy and Communications Conference Call Participants Simon Flannery - Morgan Stanley George Sutton - Craig-Hallum Michael Crawford - B. Riley Securities Operator Good morning, and welcome to the Globalstar Second Quarter 2023 Ear ...

Globalstar, Inc. (NYSE:GSAT) Q1 2023 Earnings Call Transcript May 5, 2023 9:00 AM ET Company Participants Jay Monroe - Executive Chairman Rebecca Clary - Vice President and Chief Financial Officer David Kagan - Chief Executive Officer Timothy Taylor - Vice President, Finance, Business Operations and Strategy Kyle Pickens - Vice President of Strategy and Communications Conference Call Participants Mike Crawford - B. Riley Securities Landon Park - Morgan Stanley George Sutton - Craig Hallum Capital Lyman Dela ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) The financial statements reveal Globalstar's significant revenue growth and operational turnaround in Q1 2023, alongside balance sheet shifts and cash flow impacts from strategic investments and debt refinancing [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Globalstar's Q1 2023 operations show a significant revenue surge to $58.6 million, transforming an operating loss into income despite a one-time debt extinguishment loss Q1 2023 vs Q1 2022 Statement of Operations (in thousands) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Total Revenue** | **$58,644** | **$32,772** | | Service Revenue | $52,954 | $29,344 | | Subscriber Equipment Sales | $5,690 | $3,428 | | **Income (Loss) from Operations** | **$7,191** | **($13,712)** | | Loss on Extinguishment of Debt | ($10,403) | - | | **Net Loss** | **($3,480)** | **($20,462)** | | Net Loss per Common Share (Basic & Diluted) | $0.00 | ($0.01) | - Total revenue increased by **79%** year-over-year, driven by a substantial **80%** growth in service revenue[13](index=13&type=chunk) - The company achieved a significant operational turnaround, posting an income from operations of **$7.2 million** compared to a loss of **$13.7 million** in the same period last year[13](index=13&type=chunk) - A one-time loss on debt extinguishment of **$10.4 million** significantly impacted the bottom line, leading to a net loss despite positive operating income[13](index=13&type=chunk) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Globalstar's balance sheet as of March 31, 2023, shows total assets increasing to $844.6 million, driven by property and prepaid satellite costs, while liabilities grew due to new long-term debt Balance Sheet Summary (in thousands) | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | **$72,715** | **$81,244** | | Cash and cash equivalents | $20,487 | $32,082 | | **Total Assets** | **$844,555** | **$833,395** | | **Total Current Liabilities** | **$162,694** | **$197,076** | | Vendor financing | $0 | $59,575 | | **Long-Term Debt** | **$182,243** | **$132,115** | | **Total Liabilities** | **$534,701** | **$518,624** | | **Total Stockholders' Equity** | **$309,854** | **$314,771** | - Cash and cash equivalents decreased by **$11.6 million** during the quarter to **$20.5 million**[16](index=16&type=chunk) - The company eliminated its **$59.6 million** in vendor financing, but long-term debt increased by **$50.1 million** due to the issuance of new **13%** Senior Notes[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Globalstar's Q1 2023 cash flows show strong operating cash generation, offset by significant investing outflows for satellite procurement and financing activities from debt refinancing Cash Flow Summary (in thousands) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$22,805** | **$7,569** | | **Net cash used in investing activities** | **($71,575)** | **($10,451)** | | Payments under satellite procurement agreement | ($59,575) | - | | **Net cash provided by financing activities** | **$37,148** | **$8** | | Proceeds from 13% Notes Agreement | $190,000 | - | | Principal and Interest payments of 2019 Facility | ($148,281) | - | | **Net decrease in cash** | **($11,595)** | **($2,785)** | - Investing activities saw a significant cash outflow of **$71.6 million**, dominated by a **$59.6 million** payment related to the satellite procurement agreement[21](index=21&type=chunk) - Financing activities were marked by a major refinancing, with **$190 million** in proceeds from new notes used to repay approximately **$148.3 million** of the 2019 Facility Agreement[21](index=21&type=chunk) [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The notes detail a surge in wholesale capacity revenue, major debt refinancing, a new $252 million prepayment agreement for satellite construction, and commitments under service agreements - Revenue from Wholesale capacity services, associated with the Apple Inc. Service Agreements, increased dramatically to **$30.4 million** in Q1 2023 from **$6.8 million** in Q1 2022[29](index=29&type=chunk) - The company entered into a satellite procurement agreement with MDA for **17** new satellites at an initial contract price of **$327 million**, with launches expected in 2025[52](index=52&type=chunk)[87](index=87&type=chunk) - On March 31, 2023, the company issued **$200 million** of **13%** Senior Notes due 2029 and used the proceeds to repay all outstanding obligations under its 2019 Facility Agreement[55](index=55&type=chunk)[60](index=60&type=chunk) - A Prepayment Agreement was established with its key partner, providing **$252 million** to fund the new satellite construction and launch costs, replacing the need for third-party financing[64](index=64&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Globalstar's Q1 2023 revenue growth driven by the Apple partnership, improved operating income, and strengthened liquidity through a new prepayment agreement and debt refinancing [Overview](index=22&type=section&id=Overview) Globalstar's overview highlights its MSS offerings, strategic procurement of 17 new satellites for $327 million, and advancements in terrestrial spectrum use, with a key partner driving 52% of Q1 2023 revenue - The company's key partner under the Service Agreements (identified as Apple in Note 2) accounted for **52%** of total revenue in Q1 2023, up from **21%** in Q1 2022[113](index=113&type=chunk) - Globalstar is acquiring **17** new satellites from MDA for **$327 million** to replenish its constellation, with launches expected by the end of 2025. Its partner has agreed to make service payments equal to **95%** of these approved capital expenditures[110](index=110&type=chunk) - The company is pursuing terrestrial use of its licensed spectrum, designated as **5G Band n53**, which is supported by partners like Nokia and Qualcomm and is enabled in certain cellular devices[116](index=116&type=chunk)[117](index=117&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Globalstar's Q1 2023 results show a 79% revenue increase to $58.6 million, primarily from wholesale capacity services, leading to a positive operating income despite higher expenses and a debt extinguishment loss Revenue by Type (in thousands) | Revenue Type | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Total Service Revenue** | **$52,954** | **$29,344** | | Subscriber services | $22,243 | $22,071 | | Wholesale capacity services | $30,411 | $6,843 | | **Total Equipment Revenue** | **$5,690** | **$3,428** | | **Total Revenue** | **$58,644** | **$32,772** | Subscriber & ARPU Data | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Total Average Subscribers** | **765,160** | **757,293** | | Duplex Subscribers | 36,616 | 43,565 | | SPOT Subscribers | 266,067 | 276,863 | | Commercial IoT Subscribers | 462,077 | 423,519 | | **ARPU (monthly)** | | | | Duplex | $52.35 | $47.03 | | SPOT | $14.17 | $13.55 | | Commercial IoT | $3.74 | $3.68 | - Wholesale capacity service revenue increased by **$23.6 million**, primarily due to service fees under the Service Agreement which commenced in November 2022 and a one-time **$6.5 million** payment recognized in Q1 2023[132](index=132&type=chunk)[133](index=133&type=chunk) - MG&A expenses increased by **$4.1 million**, partly due to a **$1.0 million** accrual reversal in Q1 2022 that lowered the prior year's expense base, as well as higher personnel and legal fees in Q1 2023[139](index=139&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) Globalstar's liquidity is supported by operating cash flow and a new $252 million prepayment agreement for satellite construction, following a major debt refinancing that impacted cash balances - The company's cash position decreased from **$32.1 million** at year-end 2022 to **$20.5 million** at the end of Q1 2023[149](index=149&type=chunk) - A Prepayment Agreement with its partner will provide **$252 million** to fund satellite procurement, launch, and insurance costs, replacing the previous requirement to raise third-party financing. The first payment of **$87.7 million** was received in April 2023[163](index=163&type=chunk) Q1 2023 Cash Flow Summary (in thousands) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,805 | $7,569 | | Net cash used in investing activities | ($71,575) | ($10,451) | | Net cash provided by financing activities | $37,148 | $8 | | **Net decrease in cash** | **($11,595)** | **($2,785)** | - The company completed a major refinancing, issuing **$200 million** of **13%** Senior Notes and using the proceeds to fully repay its 2019 Facility Agreement and its vendor financing arrangement[157](index=157&type=chunk)[160](index=160&type=chunk)[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) Globalstar faces foreign currency exchange risk from international sales in various currencies, mitigating it by prioritizing U.S. dollar payments and spot market purchases without hedging instruments - The company's primary market risk is foreign currency exchange risk from sales denominated in Canadian dollars, Brazilian reais, and euros[171](index=171&type=chunk) - Globalstar mitigates currency risk by requiring U.S. dollar payments where feasible and does not currently use derivative hedging instruments[171](index=171&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that Globalstar's disclosure controls and procedures were effective as of March 31, 2023, despite changes from a new ERP system - Management concluded that as of March 31, 2023, the company's disclosure controls and procedures were effective at a reasonable assurance level[175](index=175&type=chunk) - The implementation of a new ERP system in Q1 2022 resulted in changes to internal controls, but management concluded these changes did not materially affect, or were not reasonably likely to materially affect, the company's internal control over financial reporting[177](index=177&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings.) The company reported no legal proceedings for the period - There were no legal proceedings to report[179](index=179&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to the company's risk factors were reported since the filing of the 2022 Annual Report - No material changes to the company's risk factors were reported since the filing of the 2022 Annual Report[180](index=180&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits.) Key exhibits filed include the Purchase Agreement and Indenture for the March 2023 note issuance, a Prepayment Agreement, and an amendment to the Key Terms Agreement - Key exhibits filed include the Purchase Agreement and Indenture for the March 2023 note issuance, a Prepayment Agreement, and an amendment to the Key Terms Agreement[184](index=184&type=chunk)