Globalstar, Inc. (NYSE:GSAT) Q4 2022 Earnings Conference Call March 7, 2022 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 Simon Flannery - Morgan Stanley George Sutton - Craig-Hallum Capital Mike Crawford - B. Riley Securities Jaso ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 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) (State or Other Jurisdiction of Incorporation or Organi ...

Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Globalstar provides global Mobile Satellite Services through its LEO constellation and is actively pursuing monetization of its 2.4 GHz spectrum [Business Overview and COVID-19 Impact](index=4&type=section&id=Business%20Overview%20and%20COVID-19%20Impact) Globalstar offers Mobile Satellite Services globally, with its business negatively impacted by the COVID-19 pandemic - Globalstar provides Mobile Satellite Services (MSS) for voice and data communications, specializing in areas with poor or no terrestrial network coverage[16](index=16&type=chunk) - The COVID-19 pandemic has led to reduced equipment sales, particularly from oil and gas customers, and requests for pricing concessions[17](index=17&type=chunk) - To mitigate the pandemic's impact, Globalstar secured a **$5.0 million** forgivable PPP loan and deferred certain payroll taxes under the CARES Act[17](index=17&type=chunk)[23](index=23&type=chunk) [Network Infrastructure](index=5&type=section&id=Network%20Infrastructure) The company's network comprises second-generation LEO satellites and a global ground network utilizing patented CDMA technology for enhanced services - The satellite network is comprised of second-generation Low Earth Orbit (LEO) satellites designed for a **15-year** mission life, offering **40%** greater capacity than the first generation[18](index=18&type=chunk) - The ground network consists of multiple gateways that use patented CDMA technology, which the company believes provides superior call clarity and lower latency compared to competitors[22](index=22&type=chunk)[23](index=23&type=chunk) - The second-generation ground network is an IMS-based solution designed to provide enhanced services with data speeds up to **72 kbps**[23](index=23&type=chunk)[24](index=24&type=chunk) [Products, Services, and Customers](index=6&type=section&id=Products%2C%20Services%2C%20and%20Customers) Globalstar offers Duplex, SPOT, and Commercial IoT services to approximately 745,000 subscribers across diverse markets Communication Service Offerings | Service Category | Description | | :--- | :--- | | **Duplex** | Two-way voice and data transmissions using devices like the GSP-1700 phone and Sat-Fi® | | **SPOT** | One-way or two-way communication and data transmissions for personal tracking and messaging, including SPOT X® and SPOT Gen4™ | | **Commercial IoT** | One-way data transmissions for asset tracking and monitoring, using products like SmartOne and ST100 | | **Engineering and Other** | Custom engineering services for developing new applications on the Globalstar network | - As of December 31, 2020, Globalstar had approximately **745,000** subscribers worldwide[27](index=27&type=chunk) - The SPOT product family has facilitated approximately **7,500** rescues since its launch in 2007, averaging nearly two rescues per day[35](index=35&type=chunk) - In February 2020, the company entered into a Terms Agreement with a potential customer for non-recurring engineering (NRE) services to assess a potential new service utilizing company assets[48](index=48&type=chunk) [Spectrum and Regulatory Structure](index=10&type=section&id=Spectrum%20and%20Regulatory%20Structure) Globalstar holds worldwide spectrum allocation, with its 2.4 GHz S-band spectrum standardized by 3GPP for terrestrial broadband services in the U.S - The FCC granted Globalstar authority to provide terrestrial broadband services over **11.5 MHz** of its licensed satellite spectrum (**2483.5 to 2495 MHz**)[58](index=58&type=chunk) - The 3GPP has designated this spectrum as Band 53 for LTE and n53 for 5G, creating a pathway for integration into handset and infrastructure ecosystems[59](index=59&type=chunk) - In February 2021, Qualcomm Technologies announced support for Band n53 in its new Snapdragon X65 modem, significantly expanding the potential device ecosystem[59](index=59&type=chunk) - Globalstar is seeking additional terrestrial approvals in various international jurisdictions to harmonize its S-band spectrum globally[62](index=62&type=chunk) [Industry, Competition, and Human Capital](index=12&type=section&id=Industry%2C%20Competition%2C%20and%20Human%20Capital) Globalstar operates in a highly competitive MSS market with significant entry barriers, employing 346 people worldwide as of December 31, 2020 - The company's most direct competitors in the global MSS market are Iridium, Inmarsat, and ORBCOMM[72](index=72&type=chunk) - Competition is primarily based on coverage, quality, portability, and pricing of services and products[72](index=72&type=chunk) - The MSS industry has significant barriers to entry, including the high cost and difficulty of obtaining spectrum licenses and building a satellite network[79](index=79&type=chunk) - As of December 31, 2020, Globalstar had **346** employees worldwide[85](index=85&type=chunk) [Item 1A. Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, network reliability, substantial indebtedness, intense competition, and regulatory hurdles - The COVID-19 pandemic has caused a reduction in equipment sales and challenges in collecting receivables, which could negatively impact financial results and debt covenant compliance[93](index=93&type=chunk)[96](index=96&type=chunk) - The business relies on a healthy satellite constellation and ground network; any disruptions, satellite failures, or shorter-than-anticipated orbital lives could degrade service and harm the business[100](index=100&type=chunk)[106](index=106&type=chunk) - The company has significant indebtedness (**$423.9 million** as of Dec 31, 2020) with restrictive covenants that may limit operational and financial flexibility[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) - The business is subject to extensive government regulation (FCC, ITU, etc.), and failure to maintain licenses or obtain new authorizations for terrestrial services could curtail operations[151](index=151&type=chunk)[157](index=157&type=chunk) - As of December 31, 2020, Thermo owned approximately **62%** of outstanding common stock, giving it control over shareholder votes and creating potential conflicts of interest with other stockholders[178](index=178&type=chunk) [Item 2. Properties](index=30&type=section&id=Item%202.%20Properties) Globalstar's principal headquarters are leased in Covington, Louisiana, with a global network of owned and leased facilities for its operations - The company's main headquarters are located in a **69,365 sq. ft.** leased facility in Covington, Louisiana[182](index=182&type=chunk) - Globalstar owns and leases a network of properties worldwide for gateways and control centers, including key sites in Texas, Florida, Alaska, Canada, and France[182](index=182&type=chunk) - The company intends to further expand the number of ground stations it operates globally and has executed agreements for new gateway locations expected to commence in 2021[183](index=183&type=chunk) [Item 3. Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal and regulatory proceedings, with details provided in Note 9 of the Consolidated Financial Statements - For details on material legal and regulatory proceedings, the report directs readers to Note 9 of the Consolidated Financial Statements[184](index=184&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Globalstar's common stock trades on the NYSE American, with **1.68 billion** shares outstanding as of February 26, 2021, and no history or expectation of cash dividends - The company's common stock trades on the NYSE American under the ticker symbol "GSAT"[186](index=186&type=chunk) - As of February 26, 2021, there were **1,677,878,734** shares of common stock outstanding[187](index=187&type=chunk) - The company has never paid cash dividends and is prohibited from doing so by its First and Second Lien Facility Agreements[188](index=188&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2020, total revenue slightly decreased to **$128.5 million**, operating expenses fell, and the company focused on managing its **$423.9 million** debt and maintaining liquidity [Results of Operations (2020 vs. 2019)](index=32&type=section&id=Results%20of%20Operations%20(2020%20vs.%202019)) In 2020, total revenue decreased to **$128.5 million** due to lower service and IoT equipment sales, partially offset by increased engineering revenue, while operating expenses declined Revenue by Type (2020 vs. 2019, in thousands) | Revenue Type | 2020 | 2019 | | :--- | :--- | :--- | | **Service Revenue** | | | | Duplex | $33,878 | $39,794 | | SPOT | $46,417 | $50,461 | | Commercial IoT | $17,174 | $16,972 | | Engineering and Other | $15,722 | $2,274 | | **Total Service Revenue** | **$113,191** | **$109,501** | | **Equipment Revenue** | | | | Duplex | $1,883 | $1,325 | | SPOT | $8,176 | $7,617 | | Commercial IoT | $5,140 | $9,300 | | **Total Equipment Revenue** | **$15,296** | **$18,332** | | **Total Revenue** | **$128,487** | **$131,718** | - Engineering and other service revenue increased by **$13.4 million** in 2020, primarily due to engineering services contracts, including one that generated **$10.0 million** from milestone completion[204](index=204&type=chunk) - Commercial IoT equipment sales decreased by **$4.2 million** (**45%**) in 2020, largely due to lower demand from customers in the oil and gas industry following the COVID-19 pandemic[206](index=206&type=chunk) - Total operating expenses decreased **4%** to **$187.7 million** in 2020, driven by lower cost of services, reduced equipment sales costs, and lower marketing, general & administrative expenses[207](index=207&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2020, Globalstar had **$13.3 million** in cash and **$54.7 million** in restricted cash, with total debt reduced to **$385.4 million** due to the Thermo loan conversion Cash and Debt Position (as of Dec 31, 2020) | Metric | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $13.3 | | Restricted cash | $54.7 | | Long-term debt (carrying amount) | $385.4 | | Long-term debt (principal balance) | $423.9 | Cash Flow Summary (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,215 | $3,048 | | Net cash used in investing activities | ($14,536) | ($11,491) | | Net cash provided by (used in) financing activities | $1,164 | ($7,923) | - The First Lien Facility Agreement requires the company to raise no less than **$45.0 million** from the sale of equity prior to March 30, 2021, which it expects to fulfill via warrant exercises[240](index=240&type=chunk)[430](index=430&type=chunk) - In February 2020, Thermo converted the entire **$137.4 million** principal balance of its loan agreement into **200.1 million** shares of common stock, significantly reducing debt[248](index=248&type=chunk)[442](index=442&type=chunk) [Critical Accounting Policies and Estimates](index=43&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies involve significant judgments in revenue recognition, asset useful life estimation, deferred tax asset valuation, and derivative instrument valuation - Revenue recognition requires judgment, especially in allocating prices for bundled equipment and service arrangements and estimating usage patterns for prepaid annual plans[264](index=264&type=chunk)[266](index=266&type=chunk) - Estimating the useful life of assets, particularly the **15-year** life of second-generation satellites, is a critical estimate; a one-year reduction would increase annual depreciation expense by **$5.2 million**[268](index=268&type=chunk)[288](index=288&type=chunk) - The company maintains a full valuation allowance against its deferred tax assets due to a history of financial reporting losses, as it is not more likely than not that these assets will be realized[272](index=272&type=chunk) - Valuation of derivative instruments embedded in debt requires significant and subjective estimates using models like Monte Carlo simulations, and changes in these estimates can materially affect financial results[274](index=274&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Globalstar is exposed to market risks from foreign currency exchange rates and interest rate fluctuations on its variable rate debt - The company faces foreign currency risk from sales denominated in Canadian dollars, Brazilian reais, and euros, but does not currently use hedging instruments[275](index=275&type=chunk) - The company is exposed to interest rate risk due to its variable rate debt under the First Lien Facility Agreement, which is tied to LIBOR[277](index=277&type=chunk) - A **1.0%** change in interest rates would result in an approximate **$1.9 million** annual change in interest expense on the **$187.0 million** of principal outstanding under the First Lien Facility Agreement[277](index=277&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Globalstar's audited consolidated financial statements for 2020, including the independent auditor's report and detailed notes - The financial statements for the year ended December 31, 2020 were audited by Ernst & Young LLP, who provided an unqualified opinion[283](index=283&type=chunk)[284](index=284&type=chunk) - The critical audit matter identified was the estimation of the useful life of Space component assets, which involves a high degree of subjectivity and has a significant effect on depreciation expense[287](index=287&type=chunk)[289](index=289&type=chunk) [Consolidated Financial Statements](index=52&type=section&id=Consolidated%20Financial%20Statements) As of December 31, 2020, Globalstar reported total assets of **$888.1 million**, total liabilities of **$465.0 million**, and a net loss of **$109.6 million** for the year Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Current Assets | $68,487 | $63,260 | | Property and equipment, net | $715,909 | $799,914 | | **Total Assets** | **$888,093** | **$965,590** | | Total Current Liabilities | $114,215 | $63,060 | | Long-term debt, less current portion | $326,586 | $464,176 | | **Total Liabilities** | **$465,028** | **$558,247** | | **Total Stockholders' Equity** | **$423,065** | **$407,343** | Consolidated Statement of Operations Highlights (in thousands) | Account | 2020 | 2019 | | :--- | :--- | :--- | | Total Revenue | $128,487 | $131,718 | | Total Operating Expenses | $187,650 | $195,764 | | Loss from Operations | ($59,163) | ($64,046) | | **Net (Loss) Income** | **($109,639)** | **$15,324** | [Notes to Consolidated Financial Statements](index=58&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, revenue, debt agreements, leases, derivatives, and other financial matters, including the impact of COVID-19 - Note 2 disaggregates revenue by product/service and geography, showing the United States as the largest market for both service and equipment revenue in 2020[398](index=398&type=chunk) - Note 6 details the company's significant debt instruments, including the First Lien Facility Agreement (**$187.0M** principal) and Second Lien Facility Agreement (**$230.6M** principal) as of Dec 31, 2020[419](index=419&type=chunk)[235](index=235&type=chunk)[244](index=244&type=chunk) - Note 7 explains that the company has various embedded derivatives in its debt instruments that are measured at fair value, resulting in a derivative gain of **$2.9 million** in 2020[453](index=453&type=chunk)[454](index=454&type=chunk) - Note 13 discloses that the company has a full valuation allowance of **$381.1 million** against its deferred tax assets due to a history of losses[502](index=502&type=chunk) [Item 9A. Controls and Procedures](index=99&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal controls during the year - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[534](index=534&type=chunk) - The company's internal control over financial reporting as of December 31, 2020, was audited by Ernst & Young LLP, who concluded it was effective[539](index=539&type=chunk) - No changes in internal control over financial reporting occurred during the year that materially affected, or are likely to materially affect, internal controls, despite the implementation of a new billing system and remote work due to COVID-19[536](index=536&type=chunk) Part III [Items 10-14](index=100&type=section&id=Items%2010-14) Information for these items, including corporate governance, executive compensation, and security ownership, is incorporated by reference from the company's 2021 Proxy Statement - Information regarding Directors, Executive Officers, and Corporate Governance is incorporated by reference from the 2021 Proxy Statement[541](index=541&type=chunk) - Details on Executive Compensation are incorporated by reference from the 2021 Proxy Statement[542](index=542&type=chunk) - Security Ownership, Related Transactions, and Principal Accounting Fees information is incorporated by reference from the 2021 Proxy Statement[543](index=543&type=chunk)[544](index=544&type=chunk)[545](index=545&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=101&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This item lists the financial statements and exhibits filed with the report, noting the omission of financial statement schedules as information is already provided - This section lists the financial statements and exhibits filed as part of the annual report[547](index=547&type=chunk) - All financial statement schedules are omitted as they are not applicable or the required information is already present in the financial statements or notes[548](index=548&type=chunk) [Item 16. Form 10-K Summary](index=102&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K summary is provided in this report - No Form 10-K summary is provided[550](index=550&type=chunk)

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) The company reported a net loss for Q3 and the nine months ended September 30, 2020, primarily due to reduced derivative gains, while total assets decreased and debt was significantly reduced by a loan conversion [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Globalstar reported a net loss of $24.9 million for Q3 2020 and $87.9 million for the nine-month period, primarily due to a significant decrease in derivative gains compared to the prior year, despite a slight revenue decline Condensed Consolidated Statements of Operations (In thousands) | | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $32,757 | $38,614 | $95,315 | $99,883 | | **Loss from operations** | $(14,635) | $(12,005) | $(44,099) | $(46,992) | | **Derivative gain** | $1,225 | $50,156 | $1,564 | $142,280 | | **Net (loss) income** | $(24,946) | $21,111 | $(87,905) | $53,071 | | **Basic (loss) income per share** | $(0.01) | $0.01 | $(0.05) | $0.04 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Globalstar's total assets decreased to $910.5 million as of September 30, 2020, primarily due to reduced property and equipment, while total liabilities significantly decreased to $463.9 million mainly from the Thermo loan conversion, leading to an increase in stockholders' equity Condensed Consolidated Balance Sheet Highlights (In thousands) | | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $73,311 | $63,260 | | **Total assets** | $910,513 | $965,590 | | **Total current liabilities** | $107,177 | $63,060 | | **Long-term debt, less current portion** | $330,069 | $464,176 | | **Total liabilities** | $463,958 | $558,247 | | **Total stockholders' equity** | $446,555 | $407,343 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to $23.7 million for the nine months ended September 30, 2020, while net cash from financing activities sharply decreased, resulting in an overall increase in cash, cash equivalents, and restricted cash to $74.3 million Cash Flow Summary (In thousands) | | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $23,687 | $6,044 | | **Net cash used in investing activities** | $(9,295) | $(7,625) | | **Net cash provided by financing activities** | $872 | $13,566 | | **Net increase in cash, cash equivalents and restricted cash** | $15,208 | $11,959 | | **Cash, cash equivalents and restricted cash, end of period** | $74,336 | $87,449 | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The notes detail financial reporting policies, the impact of COVID-19, and key events including the adoption of ASU 2016-13, the conversion of the $137.4 million Thermo Loan into common stock, and the receipt of a $5.0 million PPP loan - The company assessed the impact of COVID-19, noting lower demand for products and services, particularly from the oil and gas market, and while expecting this to be temporary, it increased its loss rate for certain receivables[28](index=28&type=chunk)[29](index=29&type=chunk)[46](index=46&type=chunk) - On February 19, 2020, Thermo converted the entire outstanding principal balance of its loan, totaling **$137.4 million** (including accrued interest), into **200.1 million shares** of common stock[63](index=63&type=chunk)[85](index=85&type=chunk) - In April 2020, the company received a **$5.0 million** loan under the Payroll Protection Program (PPP) as part of the CARES Act, which it expects to be forgiven[31](index=31&type=chunk)[68](index=68&type=chunk) Revenue by Product and Service (Nine Months Ended Sep 30, In thousands) | Revenue Type | 2020 | 2019 | | :--- | :--- | :--- | | **Service Revenue** | | | | Duplex | $26,175 | $34,265 | | SPOT | $35,098 | $38,196 | | Commercial IoT | $13,028 | $12,577 | | Engineering and other | $9,814 | $1,449 | | **Total Service Revenue** | **$84,410** | **$86,971** | | **Subscriber Equipment Sales** | **$10,905** | **$12,912** | | **Total Revenue** | **$95,315** | **$99,883** | [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 the adverse impact of COVID-19 on revenue and equipment sales, noting decreased operating expenses and a liquidity position supported by cash from operations and a PPP loan, while acknowledging uncertainty regarding future debt covenant compliance following the Thermo loan conversion [Business Overview](index=22&type=section&id=Overview) Globalstar provides Mobile Satellite Services (MSS) through its LEO satellite constellation and is actively pursuing terrestrial authority for its 2.4GHz spectrum (Band 53 and 5G variant n53) to enable private LTE networks and cellular densification - The company provides MSS through its Duplex, SPOT, and Commercial IoT product lines, serving approximately **751,000 subscribers** as of September 30, 2020[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[103](index=103&type=chunk) - Globalstar is actively seeking international approvals to harmonize its S-band spectrum for terrestrial mobile broadband services, having already received authorization in the U.S. and other countries[106](index=106&type=chunk)[107](index=107&type=chunk) - The 3GPP has approved Band 53 for the company's 2.4 GHz spectrum and its 5G variant, n53, creating a pathway for integration into handset and infrastructure ecosystems[109](index=109&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Total revenue decreased 15% in Q3 2020 and 5% for the nine-month period, primarily due to lower Duplex service revenue and mixed subscriber equipment sales, while total operating expenses declined due to reduced maintenance, R&D, and MG&A costs Revenue Breakdown (Three Months Ended Sep 30, 2020 vs 2019, In thousands) | Revenue Type | 2020 | 2019 | | :--- | :--- | :--- | | **Service Revenue** | | | | Duplex | $9,956 | $12,704 | | SPOT | $11,396 | $12,482 | | Commercial IoT | $4,420 | $4,526 | | Engineering and other | $2,518 | $416 | | **Subscriber Equipment Sales** | $4,372 | $4,462 | | **Total Revenue** | **$32,757** | **$34,152** | - Duplex service revenue decreased **22%** in Q3 2020 (excluding a prior-year adjustment) due to a **13% decrease** in average subscribers and a **9% decrease** in ARPU[123](index=123&type=chunk) - Commercial IoT equipment sales decreased by **$0.9 million** in Q3 and **$2.6 million** in the nine-month period, driven by lower demand from customers in the oil and gas industry due to COVID-19[128](index=128&type=chunk) - Total operating expenses decreased by **6%** for Q3 2020, helped by lower maintenance costs, reduced subscriber acquisition costs, and a prior-year write-off of financing costs that did not recur[129](index=129&type=chunk)[130](index=130&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2020, the company had $19.5 million in cash and cash equivalents, with long-term debt significantly reduced by the Thermo loan conversion, but faces a requirement to raise $45.0 million in equity by March 31, 2021, and acknowledges uncertainty regarding future debt covenant compliance due to COVID-19 - The company's principal sources of liquidity are cash on hand (**$19.5M**), cash from operations, and anticipated proceeds from warrant exercises[143](index=143&type=chunk)[144](index=144&type=chunk) - The Facility Agreement requires the company to raise no less than **$45.0 million** of equity prior to March 31, 2021, to be applied towards the June 30, 2021 principal payment[151](index=151&type=chunk) - The company was in compliance with all debt covenants as of September 30, 2020, but notes that future compliance is uncertain due to the ongoing impact of COVID-19[143](index=143&type=chunk)[148](index=148&type=chunk)[155](index=155&type=chunk) Cash Flow Summary (Nine Months Ended, In thousands) | | Sep 30, 2020 | Sep 30, 2019 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $23,687 | $6,044 | | **Net cash used in investing activities** | $(9,295) | $(7,625) | | **Net cash provided by financing activities** | $872 | $13,566 | [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company is exposed to market risks from foreign currency exchange rates, particularly from sales in Canadian dollars, Brazilian reais, and euros, and interest rate fluctuations on its variable rate Facility Agreement, where a 1.0% change would impact annual interest expense by approximately $1.9 million - The company faces foreign currency risk from sales denominated in Canadian dollars, Brazilian reais, and euros[169](index=169&type=chunk) - The company has interest rate risk from its variable rate Facility Agreement, which is based on LIBOR, where a **1.0% change** in interest rates would change annual interest expense by about **$1.9 million** on the **$187.0 million** principal outstanding[171](index=171&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, noting that remote work arrangements due to COVID-19 and the implementation of a new billing system did not adversely affect internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of September 30, 2020, providing reasonable assurance of timely and accurate reporting[173](index=173&type=chunk)[174](index=174&type=chunk) - The company implemented a new billing system in April 2020, which resulted in changes to internal controls that were not deemed to have a material adverse effect[176](index=176&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings.) The company reported no legal proceedings - None[178](index=178&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors.) The company highlights the adverse impact of the COVID-19 pandemic as a significant risk factor, leading to reduced equipment sales, challenges in collecting receivables, and potential supply chain disruptions, which could negatively impact operations and debt covenant compliance - The COVID-19 pandemic could have a material adverse impact on financial condition and results of operations[180](index=180&type=chunk) - Specific pandemic-related risks include reduced sales of subscriber equipment, challenges in collecting receivables from customers in the oil & gas and retail industries, and potential supply chain interruptions from China[182](index=182&type=chunk)[183](index=183&type=chunk) - The company warns it may not remain in compliance with certain financial covenants in its Facility Agreement over the next twelve months due to the pandemic's impact[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) Not applicable - Not Applicable[186](index=186&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information.) The company reported no other information - None[187](index=187&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL data files

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 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) Delaware 41-2116508 (State or Other Jurisdiction of (I.R.S. Emplo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2019 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) Delaware 41-2116508 (State or Other Jurisdiction of Incor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 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) 12(b) of the Act: Title of each c ...

Globalstar, Inc. (NYSE:GSAT) Q1 2019 Earnings Conference Call May 2, 2019 8:30 AM ET Company Participants Jay Monroe - Chairman Dave Kagan - Chief Executive Officer Rebecca Clary - Vice President and Chief Financial Officer Conference Call Participants Jason Bernstein - Cantor Jack Hartnett - Quadrant Operator Welcome to Globalstar Inc First Quarter 2019 Earnings Conference Call. My name is Sofia and I will be your operator for today’s conference. At this time, all participants are in a listen-only mode. L ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 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) Delaware 41-2116508 Incorporation or Organization) (Address of ...

Globalstar, Inc. (NYSE:GSAT) Q4 2018 Earnings Conference Call February 28, 2019 5:00 PM ET Company Participants Jay Monroe - Chairman Dave Kagan - Chief Executive Officer Rebecca Clary - Vice President and Chief Financial Officer Tim Taylor - Vice President, Finance, Business Operations and Strategy Conference Call Participants Lance Vitanza - Cowen Spencer Gantsoudes - Morgan Stanley Jack Hartnett - Quadrant Operator Welcome to Globalstar Incorporated Fourth Quarter 2018 Earnings Conference Call. My name i ...