gsat-20230930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


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


☐			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. Employer Identification No.)
Incorporation or Organization)

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

Name of exchange on which registered

Common Stock, par value $0.0001 per share

GSAT

NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

(Do not check if a smaller reporting company)

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of October 27, 2023, 1.9 billion shares of voting common stock were outstanding, 0.1 million shares of preferred stock were outstanding, and no shares of nonvoting common stock were authorized or outstanding. Unless the context otherwise requires, references to common stock in this Report mean the Registrant’s voting common stock.

FORM 10-Q

GLOBALSTAR, INC.

TABLE OF CONTENTS


		Page
PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements.	1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	35

Item 4.	Controls and Procedures.	35

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings.	37

Item 1A.	Risk Factors.	37

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	37

Item 3.	Defaults Upon Senior Securities.	37

Item 4.	Mine Safety Disclosures.	37

Item 5.	Other Information.	37

Item 6.	Exhibits.	38

Signatures		39

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

GLOBALSTAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Revenue:
Service revenue	$	53,643	$	33,301	$	155,245	$	95,693
Subscriber equipment sales	4,040		4,325		16,154		11,505
Total revenue	57,683		37,626		171,399		107,198
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)	13,872		11,294		37,938		32,783
Cost of subscriber equipment sales	3,458		3,490		13,429		9,153
Cost of subscriber equipment sales - reduction in the value of inventory	—		8,537		—		8,553
Marketing, general and administrative	12,090		8,607		31,843		25,166
Stock-based compensation	4,346		2,100		10,638		4,575
Reduction in the value of long-lived assets	35		166,001		35		166,526
Depreciation, amortization and accretion	21,865		24,238		65,688		72,151
Total operating expenses	55,666		224,267		159,571		318,907
Income (loss) from operations	2,017		(186,641)		11,828		(211,709)
Other (expense) income:
Loss on extinguishment of debt	—		—		(10,403)		—
Interest income and expense, net of amounts capitalized	(3,945)		(7,583)		(11,047)		(24,300)
Foreign currency loss	(4,151)		(9,406)		(206)		(13,297)
Derivative gain (loss) and other	25		(884)		373		(2,223)
Total other expense	(8,071)		(17,873)		(21,283)		(39,820)
Loss before income taxes	(6,054)		(204,514)		(9,455)		(251,529)
Income tax expense (benefit)	115		(153)		185		51
Net loss	$	(6,169)	$	(204,361)	$	(9,640)	$	(251,580)

Other comprehensive loss:
Foreign currency translation adjustments	2,503		6,613		(233)		11,249
Defined benefit pension plan liability adjustment	$	—	$	2,073	$	—	$	2,073
Comprehensive loss	$	(3,666)	$	(195,675)	$	(9,873)	$	(238,258)

Net loss attributable to common shareholders (Note 11)	(8,842)		(204,361)		(17,572)		(251,580)

Net loss per common share:
Basic	$	0.00	$	(0.11)	$	(0.01)	$	(0.14)
Diluted	0.00		(0.11)		(0.01)		(0.14)
Weighted-average shares outstanding:
Basic	1,836,251		1,800,504		1,820,582		1,799,364
Diluted	1,836,251		1,800,504		1,820,582		1,799,364

See accompanying notes to unaudited interim condensed consolidated financial statements.

GLOBALSTAR, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share data)

(Unaudited)


	September 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	64,136	$	32,082
Accounts receivable, net of allowance for credit losses of $2,086 and $2,892, respectively	43,218		26,329
Inventory	12,197		9,264
Prepaid expenses and other current assets	24,087		13,569
Total current assets	143,638		81,244
Property and equipment, net	612,911		560,371
Operating lease right of use assets, net	34,273		30,859
Prepaid satellite costs and customer receivable	13,600		27,570
Intangible and other assets, net of accumulated amortization of $12,060 and $10,908, respectively	106,190		38,425
Total assets	$	910,612	$	738,469
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	32,200	$	—
Accounts payable	3,631		3,843
Vendor financing	—		59,575
Accrued expenses	24,837		22,554
Accrued satellite construction costs	65,744		36,139
Payables to affiliates	153		326
Deferred revenue, net	58,091		74,639
Total current liabilities	184,656		197,076
Long-term debt

SEC Form 10-Q filed by Globalstar Inc.