QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of | (I.R.S. Employer Identification No.) | |||||||
Incorporation or Organization) |
Securities registered pursuant to section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
(Do not check if a smaller reporting company) | Emerging growth company |
Page | ||||||||
PART I - FINANCIAL INFORMATION | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II - OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Revenue: | |||||||||||
Service revenue | $ | $ | |||||||||
Subscriber equipment sales | |||||||||||
Total revenue | |||||||||||
Operating expenses: | |||||||||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | |||||||||||
Cost of subscriber equipment sales | |||||||||||
Marketing, general and administrative | |||||||||||
Depreciation, amortization and accretion | |||||||||||
Total operating expenses | |||||||||||
Income (loss) from operations | ( | ||||||||||
Other (expense) income: | |||||||||||
Loss on extinguishment of debt | ( | ||||||||||
Interest income and expense, net of amounts capitalized | ( | ( | |||||||||
Derivative loss | ( | ||||||||||
Foreign currency gain | |||||||||||
Other | ( | ||||||||||
Total other expense | ( | ( | |||||||||
Loss before income taxes | ( | ( | |||||||||
Income tax expense | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||
Comprehensive loss | $ | ( | $ | ( | |||||||
Net loss attributable to common shareholders (Note 10) | ( | ( | |||||||||
Net loss per common share: | |||||||||||
Basic | $ | $ | ( | ||||||||
Diluted | ( | ||||||||||
Weighted-average shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted |
March 31, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance for credit losses of $ | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right of use assets, net | |||||||||||
Prepaid satellite construction costs and related customer receivable | |||||||||||
Intangible and other assets, net of accumulated amortization of $ | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Vendor financing | |||||||||||
Accrued expenses | |||||||||||
Payables to affiliates | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities | |||||||||||
Deferred revenue, net | |||||||||||
Other non-current liabilities | |||||||||||
Total non-current liabilities | |||||||||||
Commitments and contingencies (Note 8) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred Stock of $ | |||||||||||
Series A Preferred Convertible Stock of $ | |||||||||||
Voting Common Stock of $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Deficit | Total | |||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Balances – January 1, 2023 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||
Net issuance of restricted stock awards and employee stock options and recognition of stock-based compensation | — | — | ||||||||||||||||||||||||
Contribution of services | — | — | ||||||||||||||||||||||||
Issuance and recognition of stock-based compensation of employee stock purchase plan | — | — | ||||||||||||||||||||||||
Series A Preferred Stock Dividends | — | — | ( | ( | ||||||||||||||||||||||
Other comprehensive loss | — | — | ( | ( | ||||||||||||||||||||||
Net loss | — | — | ( | ( | ||||||||||||||||||||||
Balances – March 31, 2023 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Deficit | Total | |||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Balances – January 1, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||
Net issuance of restricted stock awards and stock for employee stock options and recognition of stock-based compensation | — | — | — | — | — | |||||||||||||||||||||
Contribution of services | — | — | — | — | ||||||||||||||||||||||
Recognition of stock-based compensation of employee stock purchase plan | — | — | — | — | — | — | ||||||||||||||||||||
Common stock issued in connection with conversion of 2013 | — | — | — | — | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
Balances – March 31, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Cash flows provided by operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and accretion | |||||||||||
Change in fair value of derivatives | |||||||||||
Stock-based compensation expense | |||||||||||
Noncash consideration, net, associated with wholesale capacity contract | ( | ||||||||||
Amortization of deferred financing costs | |||||||||||
Provision for credit losses | |||||||||||
Noncash interest and accretion expense | |||||||||||
Unrealized foreign currency (gain) loss | ( | ( | |||||||||
Write off of debt discount and DFC upon extinguishment of debt | |||||||||||
Other, net | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventory | ( | ||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Other assets | |||||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Payables to affiliates | ( | ( | |||||||||
Other non-current liabilities | ( | ||||||||||
Deferred revenue | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows used in investing activities: | |||||||||||
Payments under the satellite procurement agreement | ( | ||||||||||
Other network upgrades | ( | ( | |||||||||
Payments of capitalized interest | ( | ||||||||||
Additions of other property and equipment | ( | ( | |||||||||
Purchase of intangible assets | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows provided by (used in) financing activities: | |||||||||||
Principal and Interest payments of the 2019 Facility Agreement | ( | ||||||||||
Proceeds from 13% Notes Agreement | |||||||||||
Dividends paid on Series A Preferred Stock | ( | ||||||||||
Payments for debt issuance costs | ( | ||||||||||
Proceeds from issuance of common stock and exercise of options | |||||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | |||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
As of: | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
Reconciliation of cash and cash equivalents | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Total cash and cash equivalents cash shown in the statement of cash flows | $ | $ | |||||||||
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Supplemental disclosure of non-cash financing and investing activities: | |||||||||||
Increase in capitalized accrued interest for network upgrades | $ | $ | |||||||||
Capitalized accretion of debt discount and amortization of prepaid financing costs | |||||||||||
Satellite construction assets acquired through vendor financing arrangement |
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Service revenue: | |||||||||||
Subscriber services | |||||||||||
Duplex | $ | $ | |||||||||
SPOT | |||||||||||
Commercial IoT | |||||||||||
Wholesale capacity services | |||||||||||
Engineering and other services | |||||||||||
Total service revenue | |||||||||||
Subscriber equipment sales: | |||||||||||
Duplex | $ | $ | |||||||||
SPOT | |||||||||||
Commercial IoT | |||||||||||
Other | ( | ||||||||||
Total subscriber equipment sales | |||||||||||
Total revenue | $ | $ |
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Service revenue: | |||||||||||
United States | $ | $ | |||||||||
Canada | |||||||||||
Europe | |||||||||||
Central and South America | |||||||||||
Others | |||||||||||
Total service revenue | $ | $ | |||||||||
Subscriber equipment sales: | |||||||||||
United States | $ | $ | |||||||||
Canada | |||||||||||
Europe | |||||||||||
Central and South America | |||||||||||
Others | |||||||||||
Total subscriber equipment sales | $ | $ | |||||||||
Total revenue | $ | $ |
As of: | ||||||||||||||
March 31, 2023 | December 31, 2022 | |||||||||||||
Accounts receivable, net of allowance for credit losses | ||||||||||||||
Subscriber accounts receivable | $ | $ | ||||||||||||
Wholesale capacity accounts receivable | ||||||||||||||
Agency agreement accounts receivable | ||||||||||||||
Total accounts receivable, net of allowance for credit losses | $ | $ | ||||||||||||
Long-term wholesale capacity accounts receivable | ||||||||||||||
Total accounts receivable (short-term and long-term), net of allowance for credit losses | $ | $ |
As of: | ||||||||||||||
March 31, 2023 | December 31, 2022 | |||||||||||||
Short-term contract liabilities | ||||||||||||||
Subscriber contract liabilities | $ | $ | ||||||||||||
Wholesale capacity contract liabilities | ||||||||||||||
Total short-term contract liabilities | $ | $ | ||||||||||||
Long-term contract liabilities | ||||||||||||||
Subscriber contract liabilities | $ | $ | ||||||||||||
Wholesale capacity contract liabilities, net of contract asset | ||||||||||||||
Total long-term contract liabilities | $ | $ | ||||||||||||
Total contract liabilities | $ | $ |
March 31, 2023 | December 31, 2022 | |||||||||||||
Wholesale capacity contract liabilities, net: | ||||||||||||||
Advanced payments for services expected to be performed with the second-generation satellite constellation during Phase 1 (1) | $ | $ | ||||||||||||
Advanced payments for services expected to be performed with the recently launched ground spare satellite during Phases 1 and 2 | ||||||||||||||
Advanced payments (both received and contractually owed) for services expected to be performed with the next-generation satellite constellation during Phase 2 | ||||||||||||||
Advanced payments for the Phase 1 service fee and service-related operating expenses and capital expenditures | ||||||||||||||
Contract asset (2) | ( | ( | ||||||||||||
Wholesale capacity contract liabilities, net | $ | $ |
As of: | ||||||||||||||
March 31, 2023 | December 31, 2022 | |||||||||||||
Operating leases: | ||||||||||||||
Right-of-use asset, net | $ | $ | ||||||||||||
Short-term lease liability (recorded in accrued expenses) | ||||||||||||||
Long-term lease liability | ||||||||||||||
Total operating lease liabilities | $ | $ | ||||||||||||
Finance leases: | ||||||||||||||
Right-of-use asset, net (recorded in intangible and other current assets, net) | $ | $ | ||||||||||||
Short-term lease liability (recorded in accrued expenses) | ||||||||||||||
Long-term lease liability (recorded in non-current liabilities) | ||||||||||||||
Total finance lease liabilities | $ | $ |
Three Months Ended | ||||||||||||||
March 31, 2023 | March 31, 2022 | |||||||||||||
Operating lease cost: | ||||||||||||||
Amortization of right-of-use assets | $ | $ | ||||||||||||
Interest on lease liabilities | ||||||||||||||
Capitalized lease cost | ( | |||||||||||||
Finance lease cost: | ||||||||||||||
Amortization of right-of-use assets | ||||||||||||||
Short-term lease cost | ||||||||||||||
Total lease cost | $ | $ |
As of: | ||||||||||||||
March 31, 2023 | December 31, 2022 | |||||||||||||
Weighted-average lease term | ||||||||||||||
Finance leases | ||||||||||||||
Operating Leases | ||||||||||||||
Weighted-average discount rate | ||||||||||||||
Finance leases | % | % | ||||||||||||
Operating leases | % | % |
Three Months Ended | ||||||||||||||
March 31, 2023 | March 31, 2022 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows for operating leases | $ | $ | ||||||||||||
Operating Leases | Finance Leases | |||||||||||||
2023 (remaining) | $ | $ | ||||||||||||
2024 | ||||||||||||||
2025 | ||||||||||||||
2026 | ||||||||||||||
2027 | ||||||||||||||
Thereafter | ||||||||||||||
Total lease payments | $ | $ | ||||||||||||
Imputed interest | ( | ( | ||||||||||||
Discounted lease liability | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Globalstar System: | |||||||||||
Space component | $ | $ | |||||||||
Ground component | |||||||||||
Construction in progress: | |||||||||||
Space component | |||||||||||
Ground component | |||||||||||
Other | |||||||||||
Total Globalstar System | |||||||||||
Internally developed and purchased software | |||||||||||
Equipment | |||||||||||
Land and buildings | |||||||||||
Leasehold improvements | |||||||||||
Total property and equipment | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Total property and equipment, net | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Principal Amount | Unamortized Discount and Deferred Financing Costs | Carrying Value | Principal Amount | Unamortized Discount and Deferred Financing Costs | Carrying Value | ||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
2019 Facility Agreement | |||||||||||||||||||||||||||||||||||
Vendor financing | |||||||||||||||||||||||||||||||||||
Total debt and vendor financing | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Less: current portion | |||||||||||||||||||||||||||||||||||
Long-term debt and vendor financing | $ | $ | $ | $ | $ | $ |
As of | ||||||||||||||
March 31, 2023 | December 31, 2022 | |||||||||||||
Confirmed obligations outstanding, January 1, 2023 and 2022, respectively | $ | $ | ||||||||||||
Invoices confirmed during the periods | ||||||||||||||
Confirmed invoices paid during the periods | ( | ( | ||||||||||||
Confirmed obligations outstanding, March 31, 2023 and December 31, 2022, respectively | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Derivative liabilities: | |||||||||||
Compound embedded derivative with the 2019 Facility Agreement | $ | ( |
Three Months Ended | ||||||||||||||
March 31, 2023 | March 31, 2022 | |||||||||||||
Compound embedded derivative with the 2013 | $ | $ | ||||||||||||
Compound embedded derivative with the 2019 Facility Agreement | ( | |||||||||||||
Total derivative loss | $ | $ | ( |
December 31, 2022 | |||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total Balance | ||||||||||||||||||||
Compound embedded derivative with the 2019 Facility Agreement | ( | ( | |||||||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | ( | $ | ( |
Three Months Ended March 31, 2023 | Twelve Months Ended December 31, 2022 | ||||||||||
Balance at beginning of period, January 1, 2023 and 2022, respectively | $ | ( | $ | ( | |||||||
Derivative adjustment related to conversions | |||||||||||
Derivative adjustment related to extinguishment of debt | |||||||||||
Unrealized loss, included in derivative loss | ( | ||||||||||
Balance at end of period, March 31, 2023 and December 31, 2022, respectively | $ | $ | ( |
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Effect of Series A Preferred Stock dividends | ( | ||||||||||
Adjusted net loss attributable to common shareholders | $ | ( | $ | ( | |||||||
Weighted average shares outstanding | |||||||||||
Net loss per common share - basic and diluted | $ | $ | ( |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | ||||||||||||||||||||||
Revenue | % of Total Revenue | Revenue | % of Total Revenue | ||||||||||||||||||||
Service Revenue: | |||||||||||||||||||||||
Subscriber services | |||||||||||||||||||||||
Duplex | $ | 5,751 | 10 | % | $ | 6,146 | 19 | % | |||||||||||||||
SPOT | 11,314 | 19 | 11,255 | 34 | |||||||||||||||||||
Commercial IoT | 5,178 | 9 | 4,670 | 14 | |||||||||||||||||||
Wholesale capacity services (1) | 30,411 | 51 | 6,843 | 21 | |||||||||||||||||||
Engineering and other services | 300 | 1 | 430 | 1 | |||||||||||||||||||
Total Service Revenue | $ | 52,954 | 90 | % | $ | 29,344 | 89 | % |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | ||||||||||||||||||||||
Revenue | % of Total Revenue | Revenue | % of Total Revenue | ||||||||||||||||||||
Equipment Revenue: | |||||||||||||||||||||||
Duplex | $ | 19 | — | % | $ | 130 | — | % | |||||||||||||||
SPOT | 1,926 | 3 | 1,475 | 5 | |||||||||||||||||||
Commercial IoT | 3,812 | 7 | 1,806 | 6 | |||||||||||||||||||
Other | (67) | — | 17 | — | |||||||||||||||||||
Total Equipment Revenue | $ | 5,690 | 10 | % | $ | 3,428 | 11 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Average number of subscribers for the period: | |||||||||||
Duplex | 36,616 | 43,565 | |||||||||
SPOT | 266,067 | 276,863 | |||||||||
Commercial IoT | 462,077 | 423,519 | |||||||||
Other | 400 | 13,346 | |||||||||
Total | 765,160 | 757,293 | |||||||||
ARPU (monthly): | |||||||||||
Duplex | $ | 52.35 | $ | 47.03 | |||||||
SPOT | 14.17 | 13.55 | |||||||||
Commercial IoT | 3.74 | 3.68 |
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 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 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 27 | 89 | |||||||||
Net decrease in cash, cash equivalents and restricted cash | $ | (11,595) | $ | (2,785) |
Exhibit Number | Description | ||||
3.1* | |||||
3.2* | |||||
10.1* | |||||
10.2* | |||||
10.3* | |||||
10.4* | |||||
10.5† | |||||
10.6† | |||||
10.7† | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | XBRL Instance Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
* | Incorporated by reference. | ||||
† | Portions of the exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K. |
GLOBALSTAR, INC. | |||||||||||
Date: | May 5, 2023 | By: | /s/ David B. Kagan | ||||||||
David B. Kagan | |||||||||||
Chief Executive Officer (Principal Executive Officer) | |||||||||||
/s/ Rebecca S. Clary | |||||||||||
Rebecca S. Clary | |||||||||||
Chief Financial Officer (Principal Financial Officer) |
Partner Parent | Globalstar, Inc. | ||||
By: | By: | ||||
Name: Partner Authorized Signatory | Name: | ||||
Title: | |||||
Date: | Date: |
Date: | May 5, 2023 | |||||||
By: | /s/ David B. Kagan | |||||||
David B. Kagan | ||||||||
Chief Executive Officer (Principal Executive Officer) |
Date: | May 5, 2023 | |||||||
By: | /s/ Rebecca S. Clary | |||||||
Rebecca S. Clary | ||||||||
Chief Financial Officer (Principal Financial Officer) |
Date: | May 5, 2023 | By: | /s/ David B. Kagan | ||||||||
David B. Kagan | |||||||||||
Chief Executive Officer (Principal Executive Officer) |
Date: | May 5, 2023 | By: | /s/ Rebecca S. Clary | ||||||||
Rebecca S. Clary | |||||||||||
Chief Financial Officer (Principal Financial Officer) |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) |
May 31, 2013 |
---|---|
Convertible 8.00% Senior Notes Issued 2013 | |
Loan interest rate | 8.00% |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION Globalstar, Inc. (“Globalstar” or the “Company”) provides Mobile Satellite Services (“MSS”) including voice and data communications and wholesale capacity services through its global satellite network. The Company’s only reportable segment is its MSS business. Thermo Companies, through commonly controlled affiliates, (collectively, “Thermo”) is the principal owner and largest stockholder of Globalstar. The Company’s Executive Chairman of the Board controls Thermo. The Company has prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”); however, management believes the disclosures made are adequate to make the information presented not misleading. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Globalstar Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 1, 2023 (the “2022 Annual Report”). The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates. The Company evaluates estimates on an ongoing basis. The Company has made certain reclassifications to prior period condensed consolidated financial statements to conform to current period presentation. These unaudited interim condensed consolidated financial statements include the accounts of Globalstar and all its subsidiaries. Intercompany transactions and balances have been eliminated in the consolidation. In the opinion of management, the information included herein includes all adjustments, consisting of normal recurring adjustments, that are necessary for a fair presentation of the Company’s condensed consolidated statements of operations, consolidated balance sheets, condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows for the periods presented. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full year or any future period. Recently Issued Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2022-04: Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. ASU 2022-04 added certain disclosure requirements for buyers in supplier finance programs. The amendments in the update require that buyers disclose qualitative and quantitative information about their supplier finance programs. Interim and annual requirements include disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a rollforward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs. This update is effective for annual periods beginning after December 15, 2022, and interim periods within those fiscal years, except for the requirement to disclose rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted this standard when it became effective on January 1, 2023 and expects this will impact future disclosures.
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Revenue |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 2. REVENUE Disaggregation of Revenue The following table discloses revenue disaggregated by type of product and service (amounts in thousands):
In September 2022, Apple Inc. (“Partner”) announced new satellite-enabled services for certain of its products (the “Services”). The Company is the satellite operator for these Services pursuant to the agreement (the “Service Agreement”) and certain related ancillary agreements (such agreements, together with the Service Agreement, the “Service Agreements”). The Service Agreements generally require Globalstar to allocate network capacity to support the Services, which launched in November 2022. Revenue associated with the Service Agreements is included in "Wholesale capacity services" in the table above. As consideration for the services provided by Globalstar under the Service Agreements, Partner makes payments to Globalstar, including a recurring service fee, payments relating to certain service-related operating expenses and capital expenditures, and potential bonus payments subject to satisfaction of certain licensing, service and other related criteria. In connection with the amendment of the Service Agreements in February 2023, Partner agreed to pay the Company $6.5 million as consideration related to performance obligations completed in prior periods. The Company recognized this revenue during the first quarter of 2023. The Company attributes equipment revenue to various countries based on the location where equipment is sold. Service revenue is generally attributed to the various countries based on the Globalstar entity that holds the customer contract. The following table discloses revenue disaggregated by geographical market (amounts in thousands):
Accounts Receivable The Company records trade accounts receivable from its customers, including MSS subscribers and Partner under the Service Agreements, when it has a contractual right to receive payment either on demand or on fixed or determinable dates in the future. In addition to receivables arising from the sale of goods or services, the Company also has certain arrangements whereby it acts as an agent to procure goods and perform services on behalf of Partner under the Service Agreements. Receivables are included in "Accounts receivable, net of allowance for credit losses," on the Company's consolidated balance sheets except for the long-term portion of the wholesale capacity accounts receivable, which is included in "Prepaid satellite construction costs and related customer receivable." The Company's receivable balances by type and classification are presented in the table below net of allowance for credit losses and may include amounts related to earned but unbilled receivables (amounts in thousands).
In February 2022, the Company entered into an agreement for the purchase of new satellites that will replenish the Company's existing satellite constellation. Under the Service Agreements, subject to certain terms and conditions, Partner has agreed to make service payments equal to 95% of the approved capital expenditures under the satellite procurement agreement (to be paid on a straight-line basis over the useful life of the satellites) and certain other costs incurred for the new satellites, as may be adjusted pursuant to the Service Agreements, beginning with the Phase 2 Service Period. As the Company incurs construction in progress associated with the contract with Macdonald, Dettwiler and Associates Corporation ("MDA"), it earns the right to receive certain payments from Partner associated with this phase of the Service Agreements. In accordance with the expected timing of payment from Partner, $7.2 million is recorded in "Wholesale capacity accounts receivable" and $124.4 million is recorded as in "Long-term wholesale capacity accounts receivable" in the table above. The remaining amount recorded in "Wholesale capacity accounts receivable" as of March 31, 2023 consists of invoices for performance obligations completed as of the balance sheet date that are due within the next twelve months. Contract Liabilities Contract liabilities, which are included in deferred revenue on the Company’s consolidated balance sheet, represent the Company’s obligation to transfer service or equipment to a customer from whom it has previously received consideration. Contract liabilities reflect balances from its customers, including MSS subscribers and the Partner under the Service Agreements. The Company's contract liabilities by type and classification are presented in the table below (amounts in thousands).
For subscriber contract liabilities, the amount of revenue recognized during the three months ended March 31, 2023 and 2022 from performance obligations included in the contract liability balance at the beginning of these periods was $8.4 million and $9.9 million, respectively. For wholesale capacity contract liabilities, the amount of revenue recognized during the three months ended March 31, 2023 and 2022 from performance obligations included in the contract liability balance at the beginning of these periods was $22.0 million and less than $0.1 million, respectively. The duration of the Company’s contracts with subscribers is generally one year or less. As of March 31, 2023, the Company expects to recognize $21.0 million, or approximately 91%, of its remaining performance obligations to its subscribers during the next twelve months. The Service Agreements have no expiration date; therefore, the related contract liabilities may be recognized into revenue over various periods driven by the expected related service or recoupment periods. As of March 31, 2023, the Company expects to recognize $59.9 million, or approximately 28%, of its remaining performance obligations to this customer during the next twelve months. The components of wholesale capacity contract liabilities are presented in the table below (amounts in thousands).
(1)In accordance with applicable accounting guidance, the Company records imputed interest associated with the significant financing component, totaling $5.3 million as of March 31, 2023 and December 31, 2022, respectively, which is included in deferred revenue and represents the remaining amount to be recognized over the Company's performance obligations. (2)In November 2022, the Company issued Warrants (as defined) to Partner (see Note 15: Stock Compensation for further discussion). The initial fair value of the Warrants at the time of issuance was $48.3 million and recorded in equity with an offset to a contract asset on the Company's consolidated balance sheets. The fair value of the Warrants is recorded as a reduction to revenue over the period in which the Company performs its performance obligations through the estimated completion of the contract term, consistent with the period in which the customer benefits from the services provided.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 3. LEASES The following tables disclose the components of the Company’s finance and operating leases (amounts in thousands):
Lease Cost The components of lease cost are reflected in the table below (amounts in thousands):
In accordance with the Service Agreements, the Company has capitalized certain costs to fulfill this contract, including lease expense, as shown in the table above. These capitalized lease costs will be amortized over the expected term of the related performance obligation. Interest on finance lease liabilities was less than $0.1 million for the three months ended March 31, 2023 and 2022; accordingly, these amounts are not shown in the table above. Weighted-Average Remaining Lease Term and Discount Rate The following table discloses the weighted-average remaining lease term and discount rate for finance and operating leases.
Supplemental Cash Flow Information The below table discloses supplemental cash flow information for operating leases (in thousands):
Operating and financing cash flows from finance leases were each less than $0.1 million for each of the three months ended March 31, 2023 and 2022; accordingly, these cash flows are not shown in the table above. Maturity Analysis The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of March 31, 2023 (amounts in thousands):
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Leases | 3. LEASES The following tables disclose the components of the Company’s finance and operating leases (amounts in thousands):
Lease Cost The components of lease cost are reflected in the table below (amounts in thousands):
In accordance with the Service Agreements, the Company has capitalized certain costs to fulfill this contract, including lease expense, as shown in the table above. These capitalized lease costs will be amortized over the expected term of the related performance obligation. Interest on finance lease liabilities was less than $0.1 million for the three months ended March 31, 2023 and 2022; accordingly, these amounts are not shown in the table above. Weighted-Average Remaining Lease Term and Discount Rate The following table discloses the weighted-average remaining lease term and discount rate for finance and operating leases.
Supplemental Cash Flow Information The below table discloses supplemental cash flow information for operating leases (in thousands):
Operating and financing cash flows from finance leases were each less than $0.1 million for each of the three months ended March 31, 2023 and 2022; accordingly, these cash flows are not shown in the table above. Maturity Analysis The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of March 31, 2023 (amounts in thousands):
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Property and Equipment |
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Property and Equipment | 4. PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands):
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Other Financing Arrangements | 5. LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Long-term debt and vendor financing consists of the following (in thousands):
The principal amounts shown above include payment of in-kind interest, as applicable. The carrying value is net of deferred financing costs and any discounts to the loan amounts at issuance, including accretion. All amounts outstanding associated with the Company's vendor financing arrangement were due in March 2023 and, therefore, were reflected as a current liability on the Company's consolidated balance sheet as of December 31, 2022. 13% Senior Notes On March 31, 2023, Globalstar, Inc. (the “Company”) completed the sale of $200.0 million in aggregate principal amount of the Company’s non-convertible 13% Senior Notes due 2029 (the “Notes”). The Notes were sold pursuant to a Purchase Agreement (the “Purchase Agreement”) dated March 28, 2023 among the Company, as issuer, the subsidiary guarantors party thereto (each, a “Subsidiary Guarantor” and collectively, the “Subsidiary Guarantors”), an affiliate of Värde Partners and the other purchasers party thereto (collectively, the “Purchasers”). The Notes were issued pursuant to an indenture, dated as of March 31, 2023 (the “Indenture”), among the Company, the Subsidiary Guarantors, as guarantors, and Wilmington Trust, National Association, as trustee. The Notes are senior, unsecured obligations of the Company and have a stated maturity of September 15, 2029. The Notes were sold at an issue price of 95% of the principal amount of the Notes. The Company used a portion of the net proceeds to pay financing costs of $7.8 million, which were recorded on the Company's condensed consolidated balance sheet as a reduction in the carrying amount of the debt. The Notes bear interest initially at a rate of 13.00% per annum payable semi-annually in arrears. The Company is required to pay interest (i) at a rate per annum of 4.00% which must be paid in cash and (ii) at a rate per annum of 9.00% which may be paid either (a) in-kind (“PIK”) by increasing the principal amount of the Notes outstanding or (b) in cash, in such proportion as the Company may choose, with a step up in the PIK component of the interest if any Notes remain outstanding after March 15, 2028. The Company has agreed with its Partner under the Service Agreements to pay cash interest on the Notes at a rate of 6.5% per annum and PIK interest at a rate of 6.5% per annum. The Notes may be redeemed at the option of the Company at any time, subject to the conditions of the Indenture. Among other things, prior to March 15, 2025 (the “First Call Date”), the Company will be permitted to redeem the Notes in whole or in part at the redemption price equal to 100% of the principal amount of the Notes redeemed plus a premium based on the net present value of the remaining interest payments through the First Call Date. Beginning on the First Call Date, the Notes may be redeemed at a redemption price equal to 103% of the principal amount, declining to 100% of the principal amount after March 15, 2027, in each case, together with accrued and unpaid interest. Additionally, in the event of a Change of Control (as such term is defined in the Indenture) or certain other events, holders of the Notes have the right to require the Company to repurchase all or a portion of their Notes at a price (as calculated by the Company) in cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest and certain tax payments. The Indenture includes customary terms and covenants, including restrictions on the Company’s and the Subsidiary Guarantors’ ability to incur indebtedness, make guarantees, sell equity interests, and customary events of default after which the holders may accelerate the maturity of the Notes and become due and payable immediately. 2019 Facility Agreement In November 2019, the Company entered into a $199.0 million facility agreement with Thermo, an affiliate of EchoStar Corporation and certain other unaffiliated lenders (the "2019 Facility Agreement"). The 2019 Facility Agreement was scheduled to mature in November 2025. The loans under the 2019 Facility Agreement bore interest at a rate of 14.0% per annum to be paid in kind (or in cash at the option of the Company). The Service Agreements required the Company to refinance all loans outstanding under the 2019 Facility Agreement. A portion was refinanced in November 2022 and the remaining portion was refinanced in March 2023. Using a portion of the proceeds from the sale of the 13% Senior Notes, the Company repaid all of its outstanding obligations under the 2019 Facility Agreement of approximately $148 million. The Company recorded a loss on extinguishment of debt of $10.4 million in the first quarter of 2023 representing the difference between the net carrying amount prior to extinguishment (including unamortized deferred financing costs, debt discounts and derivatives) and the reacquisition price of the debt. Refer to Note 6: Derivatives and Note 7: Fair Value Measurements for further discussion on the compound embedded derivative bifurcated from the 2019 Facility Agreement. Vendor Financing In February 2022, the Company entered into a satellite procurement agreement with MDA (see Note 8: Commitments and Contingencies for further discussion). This agreement (as amended in October 2022 and January 2023) provided for deferrals of milestone payments through March 15, 2023. Interest accrued on the amount outstanding at an annual rate of 7%, which increased to 10.5% on balances between December 2022 and March 2023. The Company has made payments totaling $76.1 million to MDA under this vendor financing arrangement, of which $62.1 million (including $2.5 million of interest) was paid during the first quarter of 2023. As of March 31, 2023, the Company has fully repaid the outstanding vendor financing balance. Reflected in the table below is a rollforward of the Company's obligations under its vendor financing arrangement with MDA (amounts in thousands):
Prepayment Agreement On February 27, 2023, the Company and its Partner agreed to amend its previously disclosed Service Agreements to provide for, among other things, the Partner’s prepayment of $252 million to the Company (the “Prepayment Agreement”). The Company will use the proceeds from the Prepayment Agreement to pay amounts due under its Satellite Procurement Agreement with MDA, as well as launch, insurance and ancillary costs incurred in connection with the construction and launch of these satellites. The Prepayment Agreement replaces the Company’s requirement to raise third-party financing for such costs as previously required under the Service Agreements and will be funded on a quarterly basis, subject to certain conditions in the agreement. The remaining amount of the satellite costs is expected to be funded from Globalstar’s operating cash flows. Partner made the first payment under the Prepayment Agreement to the Company in April 2023 in the amount of $87.7 million. These proceeds were used to pay amounts owed to MDA for milestones completed as of the payment date, with $39.6 million reimbursing the Company for a payment made to MDA on March 31, 2023 and the remaining $48.1 million paid to MDA in April 2023. The total amount paid to the Company under the Prepayment Agreement, including fees, will be recouped from amounts payable by the Partner for services provided by the Company under the Service Agreements. The total balance is expected to be recouped in installments for a period of 16 quarters beginning no later than the third quarter of 2025. The prepayment balance may also be repaid over time through excess cash flow sweeps or voluntary prepayments, as provided under the terms of the Prepayment Agreement. For as long as any amount funded under the Prepayment Agreement is outstanding, the Company will be subject to certain covenants, including (i) maintenance of a minimum cash balance of $30 million, (ii) interest coverage and leverage ratios, and (iii) other customary negative covenants, including limitations on certain asset transfers, expenditures and investments. Subject to applicable shareholder approval, amounts payable by the Company in connection with the Prepayment Agreement would be guaranteed by Thermo under a guaranty agreement among Thermo, the Company and the Partner. In addition, Thermo has agreed directly with Partner to provide support of certain of the Company’s obligations under the Service Agreements, the Satellite Procurement Agreement, and certain related contracts. Series A Preferred Stock On November 15, 2022, the Company issued 149,425 shares of its 7.0% Perpetual Preferred Stock, Series A, liquidation preference $1,000 per share (the “Series A Preferred Stock”) in exchange for $149.4 million outstanding principal amount of its 2019 Facility Agreement held by affiliates of Thermo and certain other lenders. The Company recorded the Series A Preferred Stock at fair value of the shares totaling $105.3 million on its consolidated balance sheet. Holders of Series A Preferred Stock are entitled to receive, when, as and if declared by the Company's Board of Directors or a committee thereof, cumulative cash dividends based on the liquidation preference of the Series A Preferred Stock, at a fixed rate equal to 7.00% per annum, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year. In January and April 2023, the Company's Board of Directors approved the payment of dividends totaling $1.3 million for the period November 15, 2022 through December 31, 2022 and $2.6 million for the first quarter of 2023; these dividends have been paid. The shares of Series A Preferred Stock do not possess voting rights, other than certain matters specifically affecting the rights and obligations of the Series A Preferred. Series A Preferred Stock may be redeemed by the Company, in whole or in part, at any time. The holders of the Series A Preferred Stock do not have any rights to convert or require the Company to redeem such stock.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 6. DERIVATIVES The Company has identified various embedded derivatives resulting from certain features in the Company’s borrowing arrangements, requiring recognition on its consolidated balance sheets. None of these derivative instruments are designated as a hedge. The following table discloses the fair values of the derivative instruments on the Company’s consolidated balance sheet (in thousands):
As of December 31, 2022, the derivative liability recorded for the compound embedded derivative with the 2019 Facility Agreement was reflected in "Other non-current liabilities" on the Company's consolidated balance sheet. The following table discloses the changes in value recorded as derivative loss in the Company’s condensed consolidated statement of operations (in thousands):
The fair value of each embedded derivative is marked-to-market at the end of each reporting period, or more frequently as deemed necessary, with any changes in value reported in the Company's condensed consolidated statements of operations and its condensed consolidated statements of cash flows as a non-cash operating activity. See Note 7: Fair Value Measurements for further discussion. The instruments and related features embedded in the debt instruments that are required to be accounted for as derivatives are described below. Compound Embedded Derivative with 2013 8.00% Notes The 2013 8.00% Notes contained a conversion option and contingent put feature that were required to be bifurcated and recorded as a compound embedded derivative. The Company determined the fair value of the compound embedded derivative liability using a Monte Carlo simulation model. During the first quarter of 2022, the remaining principal amount of the 2013 8.00% Notes was converted into shares of Globalstar common stock; accordingly, the associated derivative was extinguished and is no longer outstanding. Compound embedded derivative with the 2019 Facility Agreement The 2019 Facility Agreement contained certain contingently exercisable put features that were required to be bifurcated and recorded as a compound embedded derivative. The Company determined the fair value of this derivative using a probability weighted discounted cash flow model. In November 2022, the Company exchanged a portion of the 2019 Facility Agreement into Series A Preferred Stock. In March 2023, the Company refinanced the remaining principal outstanding under the 2019 Facility Agreement with proceeds from the issuance of its Notes. As a result of this activity, the Company wrote off the embedded derivative associated with the 2019 Facility Agreement, which is included in "Loss on extinguishment of debt" on the condensed consolidated statement of operations; therefore, no balance remains as of March 31, 2023. See Note 5: Long-Term Debt and Other Financing Arrangements for further discussion.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 7. FAIR VALUE MEASUREMENTS The Company follows the authoritative guidance for fair value measurements relating to financial and non-financial assets and liabilities, including presentation of required disclosures herein. This guidance establishes a fair value framework requiring the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Recurring Fair Value Measurements The following tables provide a summary of the liabilities measured at fair value on a recurring basis (in thousands):
The Company marks-to-market its derivatives at each reporting date, or more frequently as deemed necessary, with the changes in fair value recognized in the Company’s consolidated statements of operations. In March 2023, the Company refinanced the remaining principal balance outstanding under the 2019 Facility Agreement and wrote off the associated embedded derivative balance; therefore, no balance remains as of March 31, 2023. See Note 6: Derivatives for further discussion. The compound embedded derivative within the 2019 Facility Agreement was valued using a probability weighted discounted cash flow model. The most significant observable input used in the fair value measurement was the discount yield. The unobservable inputs used in the fair value measurement included the probability of change of control and the estimated timing and amounts of cash flows associated with certain mandatory prepayments within the debt agreement. See Note 5: Long-Term Debt and Other Financing Arrangements for further discussion. Rollforward of Recurring Level 3 Assets and Liabilities The following table presents a rollforward for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):
Fair Value of Debt and Other Financing Arrangements The Company believes it is not practicable to determine the fair value of its Notes or the 2019 Facility Agreement without incurring significant additional costs. Unlike typical long-term debt, certain terms for these instruments are not readily available and generally involve a variety of factors, including due diligence by the debt holders. The Company's vendor financing arrangement was recorded at net carrying value, which approximated fair value. See Note 5: Long-Term Debt and Other Financing Arrangements for further discussion of the Company's debt instruments.
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Commitments and Contingencies |
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Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES Service Agreements The Service Agreements set forth the primary terms for the Company to provide services to Partner and incur costs related primarily to new gateways and upgrades at existing gateways as well as satellite construction and launch costs. The Service Agreements have an indefinite term but provide that either party may terminate subject to certain notice requirements and, in some cases, other conditions. The Service Agreements also provide for various commitments with which the Company must comply, including to: •Allocate 85% of its current and future network capacity to support the Services; •Provide and maintain all resources, including personnel, software, satellite, gateways, satellite spectrum and regulatory rights necessary to provide the Services (the “Required Resources”); •Prioritize the Services and provide Partner with priority access to the Required Resources, including the Company’s licensed satellite spectrum; •Maintain minimum quality and coverage standards and provide continuity of service; •Maintain minimum liquidity of $10.0 million, increasing to $30 million once funding under the Prepayment Agreement commences in the second quarter of 2023; •Allow Partner to recoup advance payments made to Globalstar from future service fees or, to the extent recoupment is not possible, to repay such amounts in cash; and, •Provide the Resource Protections as defined in the Service Agreements. The Service Agreements also required the Company (i) upon commencement of the Services, to refinance all loans outstanding under the 2019 Facility Agreement that are held by affiliates of the Thermo and (ii) to refinance all loans outstanding under the 2019 Facility Agreement that are held by persons other than Thermo by March 13, 2023. The required refinancings have been completed as of March 31, 2023. Partner has the right, but not the obligation, to participate in certain issuances of the Company’s equity securities, in order to maintain its percentage interest in the Company (determined on a fully diluted basis, assuming exercise of all the Warrants). Refer to Note 1: Basis of Presentation, Note 2: Revenue, Note 3: Leases, Note 4: Property and Equipment and Note 5: Long-Term Debt and Other Financing Arrangements for further discussion. Satellite Procurement Agreement In February 2022, the Company entered into a satellite procurement agreement with MDA pursuant to which Globalstar will acquire 17 satellites that will replenish Globalstar's existing constellation of satellites and ensure long-term continuity of its mobile satellite services. Globalstar is acquiring the satellites to provide continuous satellite services to Partner under the Service Agreements, as well as services to Globalstar’s current and future customers. Globalstar maintains the option to acquire additional satellites under the contract. Globalstar plans to contract separately for launch services and launch insurance for the new satellites. The initial contract price for 17 satellites is $327 million; Globalstar has the option to purchase additional satellites at a lower per unit cost, subject to certain conditions. The satellites are expected to be launched in 2025. In addition, MDA will procure a satellite operations control center for $4.9 million. Under the Service Agreements, subject to certain terms and conditions, Partner has agreed to make service payments equal to 95% of the approved capital expenditures under the satellite procurement agreement (to be paid on a straight-line basis over the useful life of the satellites) and certain other costs incurred for the new satellites, as adjusted based on certain provisions, beginning with the Phase 2 Service Period. Refer to Note 5: Long-Term Debt and Other Financing Arrangements for further discussion of the vendor financing arrangement with MDA.
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Related Party Transactions |
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Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. RELATED PARTY TRANSACTIONS Thermo is the principal owner and largest stockholder of Globalstar. The Company's Executive Chairman of the Board controls Thermo. Two other members of the Company's Board of Directors are also directors, officers or minority equity owners of various Thermo entities. Payables to Thermo related to normal purchase transactions were $0.1 million and $0.3 million as of March 31, 2023 and December 31, 2022, respectively. Transactions with Thermo Certain general and administrative expenses are incurred by Thermo on behalf of the Company. These expenses include: i) non-cash expenses, such as stock compensation costs as well as costs recorded as a contribution to capital as they relate to services provided by certain executive officers of Thermo, and ii) expenses incurred by Thermo on behalf of the Company that are charged to the Company; these charges are based on actual amounts (with no mark-up) incurred by Thermo or upon allocated employee time. The Company has a lease agreement with Thermo Covington, LLC for the Company's headquarters office. Annual lease payments started at $1.4 million per year increasing at a rate of 2.5% per year, for a lease term of ten years. During each of the three months ended March 31, 2023 and 2022, the Company incurred lease expense of $0.4 million under this lease agreement. To fulfill its obligations under the Service Agreements, in November 2022, the Company entered into an Exchange Agreement with Thermo and certain other Exchanging Lenders providing for the exchange of all the outstanding principal amount of, and accrued and unpaid interest on, the Exchanging Lenders’ loans under the 2019 Facility Agreement for shares of the Company's Series A Preferred Stock. The terms of the Exchange Agreement were reviewed and approved by the Company's Board of Directors and Audit Committee. Thermo's ownership portion in the Series A Preferred Stock is $136.7 million. Holders of Series A Preferred Stock are entitled to receive, when, as and if declared by our Board of Directors, cumulative cash dividends based on the liquidation preference of the Series A Preferred Stock, at a fixed rate equal to 7.00% per annum, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year. The Company paid Thermo dividends of $1.2 million for the period November 15, 2022 through December 31, 2022 and $2.4 million for the first quarter of 2023. Also in connection with the Service Agreements, Partner and Thermo entered into a lock-up and right of first offer agreement that generally (i) requires Thermo to offer any shares of Globalstar common stock to Partner before transferring them to any other Person other than affiliates of Thermo and (ii) prohibits Thermo from transferring shares of Globalstar common stock if such transfer would cause Thermo to hold less than 51.00% of the outstanding common stock of the Company for a period of five years from the launch of Services in November 2022. Subject to applicable shareholder approval, amounts payable by the Company in connection with the 2023 Prepayment with Partner would be guaranteed by Thermo. In addition, Thermo has agreed to provide support of certain of the Company’s obligations under the Service Agreements, the Satellite Procurement Agreement, and certain related contracts directly to the Partner. See Note 5: Long-Term Debt and Other Financing Arrangements for further discussion of the Company's debt and financing transactions with Thermo.
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Loss Per Share |
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Loss Per Share | 10. LOSS PER SHARE The following table sets forth the computation of basic and diluted loss per common share during each of the three months ended March 31, 2023 and 2022 (amounts in thousands, except per share data):
For the three months ended March 31, 2023 and 2022, 19.7 million and 7.4 million shares, respectively, of potential common stock were excluded from diluted shares outstanding because the effects of potentially dilutive securities would be anti-dilutive. Included in these shares as of March 31, 2023 is a portion of the 49.1 million Warrants issued to Partner under the Service Agreements in 2022, which was determined after considering the exercise price of each tranch relative to the average market price during the period. As discussed in Note 5: Long-Term Debt and Other Financing Arrangements, the Company's Board of Directors approved the payment of dividends totaling $2.6 million for the three months ended March 31, 2023 on its Series A Preferred Stock. This amount adjusts the numerator used to calculate loss per share.
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Basis of Presentation (Policies) |
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Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Globalstar, Inc. (“Globalstar” or the “Company”) provides Mobile Satellite Services (“MSS”) including voice and data communications and wholesale capacity services through its global satellite network. The Company’s only reportable segment is its MSS business. Thermo Companies, through commonly controlled affiliates, (collectively, “Thermo”) is the principal owner and largest stockholder of Globalstar. The Company’s Executive Chairman of the Board controls Thermo. The Company has prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”); however, management believes the disclosures made are adequate to make the information presented not misleading. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Globalstar Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 1, 2023 (the “2022 Annual Report”). The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates. The Company evaluates estimates on an ongoing basis. The Company has made certain reclassifications to prior period condensed consolidated financial statements to conform to current period presentation. These unaudited interim condensed consolidated financial statements include the accounts of Globalstar and all its subsidiaries. Intercompany transactions and balances have been eliminated in the consolidation. In the opinion of management, the information included herein includes all adjustments, consisting of normal recurring adjustments, that are necessary for a fair presentation of the Company’s condensed consolidated statements of operations, consolidated balance sheets, condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows for the periods presented. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full year or any future period.
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2022-04: Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. ASU 2022-04 added certain disclosure requirements for buyers in supplier finance programs. The amendments in the update require that buyers disclose qualitative and quantitative information about their supplier finance programs. Interim and annual requirements include disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a rollforward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs. This update is effective for annual periods beginning after December 15, 2022, and interim periods within those fiscal years, except for the requirement to disclose rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted this standard when it became effective on January 1, 2023 and expects this will impact future disclosures.
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Derivative Liabilities | The fair value of each embedded derivative is marked-to-market at the end of each reporting period, or more frequently as deemed necessary, with any changes in value reported in the Company's condensed consolidated statements of operations and its condensed consolidated statements of cash flows as a non-cash operating activity. |
Fair Value Measurements | The Company follows the authoritative guidance for fair value measurements relating to financial and non-financial assets and liabilities, including presentation of required disclosures herein. This guidance establishes a fair value framework requiring the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of revenue disaggregated by product and services | The following table discloses revenue disaggregated by type of product and service (amounts in thousands):
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Schedule of accounts receivable and contract liabilities | The Company's receivable balances by type and classification are presented in the table below net of allowance for credit losses and may include amounts related to earned but unbilled receivables (amounts in thousands).
The components of wholesale capacity contract liabilities are presented in the table below (amounts in thousands).
(1)In accordance with applicable accounting guidance, the Company records imputed interest associated with the significant financing component, totaling $5.3 million as of March 31, 2023 and December 31, 2022, respectively, which is included in deferred revenue and represents the remaining amount to be recognized over the Company's performance obligations. (2)In November 2022, the Company issued Warrants (as defined) to Partner (see Note 15: Stock Compensation for further discussion). The initial fair value of the Warrants at the time of issuance was $48.3 million and recorded in equity with an offset to a contract asset on the Company's consolidated balance sheets. The fair value of the Warrants is recorded as a reduction to revenue over the period in which the Company performs its performance obligations through the estimated completion of the contract term, consistent with the period in which the customer benefits from the services provided.
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Leases (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of lease assets and liabilities | The following tables disclose the components of the Company’s finance and operating leases (amounts in thousands):
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Schedule of components of lease cost | The components of lease cost are reflected in the table below (amounts in thousands):
The following table discloses the weighted-average remaining lease term and discount rate for finance and operating leases.
The below table discloses supplemental cash flow information for operating leases (in thousands):
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Schedule of maturities of operating leases liabilities | The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of March 31, 2023 (amounts in thousands):
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Schedule of maturities of finance leases liabilities | The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of March 31, 2023 (amounts in thousands):
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Property and Equipment (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property and equipment | Property and equipment consists of the following (in thousands):
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Long-Term Debt and Other Financing Arrangements (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Long-term debt and vendor financing consists of the following (in thousands):
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Schedule of short-term debt | Reflected in the table below is a rollforward of the Company's obligations under its vendor financing arrangement with MDA (amounts in thousands):
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Derivatives (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values of derivative instruments | The following table discloses the fair values of the derivative instruments on the Company’s consolidated balance sheet (in thousands):
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Schedule of derivative losses (gains) | The following table discloses the changes in value recorded as derivative loss in the Company’s condensed consolidated statement of operations (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial liabilities measured at fair value on recurring basis | The following tables provide a summary of the liabilities measured at fair value on a recurring basis (in thousands):
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Schedule of rollforward of assets and liabilities measured at fair value | The following table presents a rollforward for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):
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Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of basic weighted average share to diluted weighted average common shares outstanding | The following table sets forth the computation of basic and diluted loss per common share during each of the three months ended March 31, 2023 and 2022 (amounts in thousands, except per share data):
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Leases - Components of Finance and Operating Leases (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
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Operating leases: | ||
Right-of-use asset, net | $ 33,583 | $ 30,859 |
Short-term lease liability (recorded in accrued expenses) | 2,731 | 2,747 |
Long-term lease liability | 28,788 | 27,635 |
Total operating lease liabilities | 31,519 | 30,382 |
Finance leases: | ||
Right-of-use asset, net (recorded in intangible and other current assets, net) | 99 | 104 |
Short-term lease liability (recorded in accrued expenses) | 16 | 16 |
Long-term lease liability (recorded in non-current liabilities) | 67 | 71 |
Total finance lease liabilities | $ 83 | $ 87 |
Leases - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2023 |
Mar. 31, 2022 |
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Operating lease cost: | ||
Amortization of right-of-use assets | $ 684 | $ 733 |
Interest on lease liabilities | 615 | 660 |
Capitalized lease cost | 0 | (536) |
Finance lease cost: | ||
Amortization of right-of-use assets | 5 | 1 |
Short-term lease cost | 241 | 80 |
Total lease cost | $ 1,545 | $ 938 |
Leases - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2023 |
Mar. 31, 2022 |
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Leases [Abstract] | ||
Finance lease, interest expense (less than) | $ 0.1 | $ 0.1 |
Operating cash flows from finance leases (less than) | $ 0.1 | $ 0.1 |
Leases - Supplemental Lease Information (Details) |
Mar. 31, 2023 |
Dec. 31, 2022 |
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Leases [Abstract] | ||
Weighted-average lease term, Finance leases | 4 years 4 months 24 days | 4 years 7 months 6 days |
Weighted-average lease term, Operating leases | 10 years 3 months 18 days | 10 years 1 month 6 days |
Weighted-average discount rate, Finance leases | 10.20% | 10.20% |
Weighted-average discount rate, Operating leases | 8.60% | 8.50% |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 1,712 | $ 1,357 |
Leases - Maturity Analysis (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Leases | ||
2023 (remaining) | $ 4,040 | |
2024 | 5,253 | |
2025 | 5,281 | |
2026 | 5,328 | |
2027 | 5,207 | |
Thereafter | 22,364 | |
Total lease payments | 47,473 | |
Imputed interest | (15,954) | |
Discounted lease liability | 31,519 | $ 30,382 |
Finance Leases | ||
2023 (remaining) | 19 | |
2024 | 23 | |
2025 | 23 | |
2026 | 23 | |
2027 | 15 | |
Thereafter | 0 | |
Total lease payments | 103 | |
Imputed interest | (20) | |
Discounted lease liability | $ 83 | $ 87 |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Accrued vendor financing, current | $ 48.6 | $ 36.1 |
Satellites | ||
Property, Plant and Equipment [Line Items] | ||
Purchase obligation | 327.0 | |
Construction in progress | 110.6 | 98.5 |
Prepaid satellite construction costs and related customer receivable | $ 10.8 | $ 11.5 |
Long-Term Debt and Other Financing Arrangements - Obligations Under Vendor Financing Arrangement (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended |
---|---|---|---|---|
Jan. 31, 2023 |
Mar. 31, 2023 |
Jan. 31, 2023 |
Dec. 31, 2022 |
|
Vendor Financing Obligations [Roll Forward] | ||||
Vendor financing, beginning balance | $ 59,575 | $ 59,575 | $ 0 | |
Invoices confirmed during the periods | 0 | 73,575 | ||
Confirmed invoices paid during the periods | $ 62,100 | 59,575 | $ 76,100 | 14,000 |
Vendor financing, ending balance | $ 0 | $ 59,575 |
Derivatives - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Compound embedded derivative with the 2019 Facility Agreement | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Derivative liability | $ 0 | $ (122) |
Derivatives - Schedule of Derivative Gain (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
May 31, 2013 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative loss | $ 0 | $ (486) | |
Compound embedded derivative with the 2013 8.00% Notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative loss | 0 | 216 | |
Compound embedded derivative with the 2019 Facility Agreement | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative loss | $ 0 | $ (702) | |
Convertible 8.00% Notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loan interest rate | 8.00% |
Derivatives - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
May 31, 2013 |
---|---|---|---|
2019 Facility Agreement | |||
Derivative [Line Items] | |||
Derivative liability | $ 0 | $ 122 | |
Convertible 8.00% Notes | |||
Derivative [Line Items] | |||
Loan interest rate | 8.00% |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|
2019 Facility Agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded derivative liability | $ 122 | $ 0 |
Fair Value Measurements - Rollforward of Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balances at beginning of period | $ (122) | $ (880) |
Derivative adjustment related to conversions | 0 | 1,563 |
Derivative adjustment related to extinguishment of debt | 122 | 0 |
Unrealized loss, included in derivative loss | 0 | (805) |
Balances at ending of period | $ 0 | $ (122) |
Commitment and Contingencies (Details) $ in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Feb. 28, 2022
USD ($)
satellite
|
Mar. 31, 2023
USD ($)
|
Feb. 27, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Other Commitments [Line Items] | ||||
Network capacity to suppress services | 0.85 | |||
Partnership agreement, minimum liquidity requirement | $ 10.0 | $ 30.0 | ||
Number of satellites acquired | satellite | 17 | |||
Capital expenditure reimbursement | 95.00% | |||
Macdonald, Dettwiler and Associates | ||||
Other Commitments [Line Items] | ||||
Payments to acquire fixed assets | $ 4.9 | |||
Satellites | ||||
Other Commitments [Line Items] | ||||
Purchase obligation | $ 327.0 |
Loss Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net loss | $ (3,480) | $ (20,462) |
Adjusted net loss attributable to common shareholders | $ (6,095) | $ (20,462) |
Weighted average common shares outstanding | ||
Weighted average common shares outstanding, basic (in shares) | 1,811,831 | 1,797,671 |
Weighted average common shares outstanding, diluted (in shares) | 1,811,831 | 1,797,671 |
Net loss per common share: | ||
Basic (in dollars per share) | $ (0.00) | $ (0.01) |
Diluted (in dollars per share) | $ (0.00) | $ (0.01) |
Series A Preferred Convertible Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of Series A Preferred Stock dividends | $ (2,615) | $ 0 |
Loss Per Share - Narrative (Details) - USD ($) $ in Thousands, shares in Millions |
2 Months Ended | 3 Months Ended | |
---|---|---|---|
Dec. 31, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares of potential common stock excluded from diluted shares outstanding (in shares) | 19.7 | 7.4 | |
Warrants outstanding (in shares) | 49.1 | ||
Dividends, preferred stock, cash | $ 3,952 | ||
Series A Preferred Convertible Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dividends, preferred stock, cash | $ 1,300 | $ 2,600 |
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