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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Nov. 08, 2019	Oct. 25, 2019
Document and Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	Globalstar, Inc.
Entity Central Index Key	0001366868
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Voting Common Stock
Document and Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		1,451,653,498
Nonvoting Common Stock
Document and Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)			0

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Revenue	$ 38,614	$ 35,692	$ 99,883	$ 98,167
Operating expenses:
Marketing, general and administrative	12,895	15,061	35,523	42,280
Revision to contract termination charge	0	0	0	(20,478)
Depreciation, amortization and accretion	24,026	24,738	71,679	66,585
Total operating expenses	50,619	53,654	146,875	127,139
Operating loss	(12,005)	(17,962)	(46,992)	(28,972)
Other income (expense):
Interest income and expense, net of amounts capitalized	(14,471)	(13,358)	(40,149)	(31,016)
Derivative gain	50,156	39,059	142,280	145,944
Gain on legal settlement	0	0	120	6,779
Other	(2,529)	1,331	(2,064)	(2,682)
Total other income (expense)	33,156	27,032	100,187	119,025
Income before income taxes	21,151	9,070	53,195	90,053
Income tax expense	40	51	124	116
Net income	21,111	9,019	53,071	89,937
Other comprehensive income (loss):
Foreign currency translation adjustments	1,022	500	254	2,800
Comprehensive income (loss)	$ 22,133	$ 9,519	$ 53,325	$ 92,737
Net income (loss) per common share:
Basic (USD per share)	$ 0.01	$ 0.01	$ 0.04	$ 0.07
Diluted (USD per share)	$ (0.01)	$ (0.02)	$ (0.05)	$ (0.03)
Weighted-average shares outstanding:
Basic (in shares)	1,451,703	1,264,516	1,450,146	1,263,416
Diluted (in shares)	1,647,734	1,427,800	1,647,267	1,448,920
Service revenue
Revenue:
Revenue	$ 34,152	$ 29,898	$ 86,971	$ 83,903
Operating expenses:
Cost of goods and services	9,216	9,429	28,464	27,984
Subscriber equipment sales
Revenue:
Revenue	4,462	5,794	12,912	14,264
Operating expenses:
Cost of goods and services	$ 4,482	$ 4,426	$ 11,209	$ 10,768

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 26,225	$ 15,212
Restricted cash	61,224	60,278
Accounts receivable, net of allowance of $3,162 and $3,382, respectively	20,909	19,327
Inventory	17,240	14,274
Prepaid expenses and other current assets	20,916	13,410
Total current assets	146,514	122,501
Property and equipment, net	820,315	882,695
Operating lease right of use assets, net	16,270	0
Intangible and other assets, net of accumulated amortization of $8,706 and $7,930, respectively	36,744	40,286
Total assets	1,019,843	1,045,482
Current liabilities:
Current portion of long-term debt	98,829	96,249
Accounts payable	5,019	6,995
Accrued expenses	36,839	23,085
Payables to affiliates	353	656
Derivative liabilities	129	757
Deferred revenue	27,839	31,938
Total current liabilities	169,008	159,680
Long-term debt, less current portion	402,468	367,202
Operating lease liabilities	15,158	0
Employee benefit obligations	4,619	4,489
Derivative liabilities	4,456	146,108
Deferred revenue	5,261	5,692
Other non-current liabilities	2,731	3,366
Total non-current liabilities	434,693	526,857
Contingencies (Note 8)
Stockholders’ equity:
Preferred Stock	0	0
Additional paid-in capital	1,941,236	1,937,364
Accumulated other comprehensive loss	(3,585)	(3,839)
Retained deficit	(1,521,654)	(1,574,725)
Total stockholders’ equity	416,142	358,945
Total liabilities and stockholders’ equity	1,019,843	1,045,482
Series A Preferred Convertible Stock
Stockholders’ equity:
Preferred Stock	0	0
Voting Common Stock
Stockholders’ equity:
Common Stock	145	145
Nonvoting Common Stock
Stockholders’ equity:
Common Stock	$ 0	$ 0

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts receivable, allowance	$ 3,162	$ 3,382
Accumulated Amortization of Intangible and other assets	$ 8,706	$ 7,930
Preferred stock, par value (USD per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series A Preferred Convertible Stock
Preferred stock, par value (USD per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	1	1
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Voting Common Stock
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,900,000,000	1,500,000,000
Common stock, shares issued (in shares)	1,451,635,661	1,446,783,645
Common stock, shares outstanding (in shares)	1,451,635,661	1,446,783,645
Nonvoting Common Stock
Common stock, par value (USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	0	400,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0

Condensed Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Deficit
Beginning balance (in shares) at Dec. 31, 2017		1,261,949
Beginning balance, amount at Dec. 31, 2017	$ 291,224	$ 126	$ 1,869,339	$ (6,939)	$ (1,571,302)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contribution of services	137		137
Net issuance of restricted stock awards and recognition of stock-based compensation (in shares)		1,165
Net issuance of restricted stock awards and recognition of stock-based compensation	1,853		1,853
Recognition of stock-based compensation of employee stock purchase plan	84		84
Other comprehensive loss	(330)			(330)
Net income (loss)	87,930				87,930
Ending balance (in shares) at Mar. 31, 2018		1,263,114
Ending balance, amount at Mar. 31, 2018	383,991	$ 126	1,871,413	(7,269)	(1,480,279)
Beginning balance (in shares) at Dec. 31, 2017		1,261,949
Beginning balance, amount at Dec. 31, 2017	291,224	$ 126	1,869,339	(6,939)	(1,571,302)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	89,937
Ending balance (in shares) at Sep. 30, 2018		1,265,622
Ending balance, amount at Sep. 30, 2018	392,100	$ 127	1,874,384	(4,139)	(1,478,272)
Beginning balance (in shares) at Mar. 31, 2018		1,263,114
Beginning balance, amount at Mar. 31, 2018	383,991	$ 126	1,871,413	(7,269)	(1,480,279)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contribution of services	137		137
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation (in shares)		716
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation	545		545
Net issuance of restricted stock awards and recognition of stock-based compensation (in shares)		275
Net issuance of restricted stock awards and recognition of stock-based compensation	1,052		1,052
Other comprehensive loss	2,630			2,630
Net income (loss)	(7,012)				(7,012)
Ending balance (in shares) at Jun. 30, 2018		1,264,105
Ending balance, amount at Jun. 30, 2018	381,343	$ 126	1,873,147	(4,639)	(1,487,291)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contribution of services	107		107
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation (in shares)		200
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation	200		200
Net issuance of restricted stock awards and recognition of stock-based compensation (in shares)		1,317
Net issuance of restricted stock awards and recognition of stock-based compensation	931	$ 1	930
Other comprehensive loss	500			500
Net income (loss)	9,019				9,019
Ending balance (in shares) at Sep. 30, 2018		1,265,622
Ending balance, amount at Sep. 30, 2018	392,100	$ 127	1,874,384	(4,139)	(1,478,272)
Beginning balance (in shares) at Dec. 31, 2018		1,446,784
Beginning balance, amount at Dec. 31, 2018	358,945	$ 145	1,937,364	(3,839)	(1,574,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuances (forfeitures) of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation (in shares)		3,285
Issuances (forfeitures) of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation	1,000		1,000
Contribution of services	47		47
Recognition of stock-based compensation of employee stock purchase plan	77		77
Stock offering issuance costs	(195)		(195)
Other comprehensive loss	(270)			(270)
Net income (loss)	25,771				25,771
Ending balance (in shares) at Mar. 31, 2019		1,450,069
Ending balance, amount at Mar. 31, 2019	385,375	$ 145	1,938,293	(4,109)	(1,548,954)
Beginning balance (in shares) at Dec. 31, 2018		1,446,784
Beginning balance, amount at Dec. 31, 2018	358,945	$ 145	1,937,364	(3,839)	(1,574,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	53,071
Ending balance (in shares) at Sep. 30, 2019		1,451,636
Ending balance, amount at Sep. 30, 2019	416,142	$ 145	1,941,236	(3,585)	(1,521,654)
Beginning balance (in shares) at Mar. 31, 2019		1,450,069
Beginning balance, amount at Mar. 31, 2019	385,375	$ 145	1,938,293	(4,109)	(1,548,954)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuances (forfeitures) of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation (in shares)		232
Issuances (forfeitures) of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation	968		968
Contribution of services	197		197
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation (in shares)		1,437
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation	500		500
Investment in business	155		155
Other comprehensive loss	(498)			(498)
Net income (loss)	6,189				6,189
Ending balance (in shares) at Jun. 30, 2019		1,451,738
Ending balance, amount at Jun. 30, 2019	392,886	$ 145	1,940,113	(4,607)	(1,542,765)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuances (forfeitures) of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation (in shares)		(102)
Issuances (forfeitures) of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation	966		966
Contribution of services	47		47
Recognition of stock-based compensation of employee stock purchase plan	110		110
Other comprehensive loss	1,022			1,022
Net income (loss)	21,111				21,111
Ending balance (in shares) at Sep. 30, 2019		1,451,636
Ending balance, amount at Sep. 30, 2019	$ 416,142	$ 145	$ 1,941,236	$ (3,585)	$ (1,521,654)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows provided by (used in) operating activities:
Net income	$ 53,071	$ 89,937
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion	71,679	66,585
Change in fair value of derivative assets and liabilities	(142,280)	(145,944)
Stock-based compensation expense	4,140	4,218
Amortization of deferred financing costs	9,136	6,349
Provision for bad debts	1,436	964
Noncash interest and accretion expense	13,932	10,275
Revision to contract termination charge	0	(20,478)
Change to estimated impact upon adoption of ASC 606	(3,885)	0
Unrealized foreign currency loss	1,213	2,479
Other, net	344	979
Changes in operating assets and liabilities:
Accounts receivable	(3,249)	(4,486)
Inventory	(4,267)	1,383
Prepaid expenses and other current assets	(3,151)	(4,326)
Other assets	(211)	(3,756)
Accounts payable and accrued expenses	9,042	12,350
Payables to affiliates	(304)	420
Other non-current liabilities	57	(1,027)
Deferred revenue	(659)	3,846
Net cash provided by operating activities	6,044	19,768
Cash flows provided by (used in) investing activities:
Second-generation network costs (including interest)	(1,350)	(5,887)
Property and equipment additions	(3,480)	(5,346)
Investment in business	155	0
Purchase of intangible assets	(2,950)	(1,948)
Net cash used in investing activities	(7,625)	(13,181)
Cash flows provided by (used in) financing activities:
Principal payments of the Facility Agreement	(47,435)	(38,933)
Payments for financing costs	(1,401)	0
Proceeds from Subordinated Loan Agreement	62,000
Proceeds from issuance of common stock and exercise of options and warrants	402	395
Net cash provided by (used in) financing activities	13,566	(38,538)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(26)	68
Net increase (decrease) in cash, cash equivalents and restricted cash	11,959	(31,883)
Cash, cash equivalents and restricted cash, beginning of period	75,490	105,279
Cash, cash equivalents and restricted cash, end of period	87,449	73,396
Reconciliation of cash, cash equivalents and restricted cash
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	75,490	105,279
Supplemental disclosure of cash flow information:
Cash paid for interest	12,922	12,109
Supplemental disclosure of non-cash financing and investing activities:
Increase in capitalized accrued interest for second-generation network costs	364	1,974
Capitalized accretion of debt discount and amortization of prepaid financing costs	$ 280	$ 1,825

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2019
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 services through its global satellite network. 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. Two other members of the Company's Board of Directors are also directors, officers or minority equity owners of various Thermo entities. 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 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, 2018, as filed with the SEC on February 28, 2019 (the “2018 Annual Report”), and Management's Discussion and Analysis of Financial Condition and Results of Operations herein. 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. Significant estimates include the value of derivative instruments, the allowance for doubtful accounts, the net realizable value of inventory, the useful life and value of property and equipment, the value of stock-based compensation and income taxes. 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. All significant 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, condensed 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 and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the full year or any future period. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) No. 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13, as amended, significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today’s incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. The Company has not yet determined the impact this standard will have on its financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. As part of the FASB's disclosure framework project, it has eliminated, amended and added disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy of timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted as of the beginning of any interim or annual reporting period. This ASU will have an impact on the Company's disclosures. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. As part of the FASB's disclosure framework project, it has changed the disclosure requirements for defined pension and other post-retirement benefit plans. The FASB eliminated disclosure requirements related to the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, the amount and timing of plan assets expected to be returned to the employer, if any, information related to Japanese Welfare Pension Insurance Law, information about the amount of future annual benefits covered by insurance contracts and significant transactions between the employer or related parties and the plan, and the disclosure of the effects of a one-percentage-point change in the assumed health care cost trend rates on the (1) aggregate of the service and interest cost components of net periodic benefit costs and the (2) benefit obligation for postretirement health care benefits. Entities will be required to disclose the weighted-average interest crediting rate for cash balance plans and other plans with promised interest crediting rates as well as an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This ASU is effective for public entities for annual periods beginning after December 15, 2020. Early adoption is permitted as of the beginning of any annual reporting period. This ASU will have an impact on the Company's disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires companies to defer specified implementation costs in a cloud computing arrangement that are often expensed under current US GAAP and recognize these costs to expense over the noncancellable term of the arrangement. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Company does not expect it to have a material effect on the Company's financial statements and related disclosures. Recently Issued Financial Reporting Rules In April 2019, the SEC adopted the final rules under SEC Releases 33-10618 and 34-85381, FAST Act Modernization and Simplification of Regulation S-K. Among other things, the amendments 1) allow registrants who present financial statements covering three years in their periodic reports to omit discussion of the earliest year from management's discussion and analysis if the discussion was included in a prior filing, 2) allow registrants to omit certain information and exhibits from their periodic reports without submitting confidential treatment requests to the Commission, 3) clarify and streamline certain risk factor and property disclosure requirements, 4) require all filings to include hyperlinks to information that is incorporated by reference in current filings to the information available on EDGAR, as applicable, and 5) require registrants to apply XBRL tags to certain information on cover pages of SEC filings. Certain of the amended rules became effective April 2, 2019 or May 2, 2019 and have been applied to any filings after these dates, except for the XBRL tagging requirement, which is effective for large accelerated and accelerated filers for fiscal reports ending on or after June 15, 2019 and 2020, respectively. The Company does not expect these final rules to have a material impact on its disclosures and financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases. ASU 2016-02 became effective for annual reporting periods beginning after December 15, 2018. ASU 2016-02 amended the FASB Accounting Standards Codification (“ASC”) and created a new ASC Topic 842, “Leases” (“ASC 842”). The Company adopted this standard on January 1, 2019. See Note 3: Leases for further discussion, including the impact on the Company's condensed consolidated financial statements and required disclosures. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This guidance allows companies to reclassify items in accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Tax Act”) (previously known as “The Tax Cuts and Jobs Act”). This ASU is effective for all entities for annual and interim periods beginning after December 15, 2018. The Company adopted this standard on January 1, 2019. The adoption of this standard did not have a material effect on the Company's financial statements or related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees. Measurement of equity-classified nonemployee awards will now be valued on the grant date and will no longer be remeasured through the performance completion date. This amendment also changes the accounting for nonemployee awards with performance conditions to recognize compensation cost when achievement of the performance condition is probable, rather than upon achievement of the performance condition, as well as eliminating the requirement to reassess the equity or liability classification for nonemployee awards upon vesting, except for certain award types. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2018. The Company adopted this standard on January 1, 2019. The adoption of this standard did not have a material effect on the Company's financial statements or related disclosures.

Revenue

9 Months Ended

Sep. 30, 2019

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):



	Three Months Ended				Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Service revenue:
Duplex	$	16,589	$	12,213	$	34,265	$	31,130
SPOT	12,482		12,957		38,196		39,787
Commercial IoT	4,526		3,542		12,577		9,847
IGO	139		257		484		682
Other	416		929		1,449		2,457
Total service revenue	34,152		29,898		86,971		83,903

Subscriber equipment sales:
Duplex	$	349	$	436	$	906	$	1,618
SPOT	1,880		2,970		5,657		6,455
Commercial IoT	2,182		2,356		6,226		6,067
Other	51		32		123		124
Total subscriber equipment sales	4,462		5,794		12,912		14,264

Total revenue	$	38,614	$	35,692	$	99,883	$	98,167

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):



	Three Months Ended				Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Service revenue:
United States	$	23,155	$	21,096	$	61,859	$	59,581
Canada	7,914		5,723		16,057		15,003
Europe	2,251		2,462		6,585		7,113
Central and South America	680		527		1,814		1,708
Others	152		90		656		498
Total service revenue	34,152		29,898		86,971		83,903

Subscriber equipment sales:
United States	$	2,435	$	4,148	$	7,195	$	9,202
Canada	1,290		907		3,236		2,050
Europe	371		326		1,388		1,755
Central and South America	345		370		1,006		1,096
Others	21		43		87		161
Total subscriber equipment sales	4,462		5,794		12,912		14,264

Total revenue	$	38,614	$	35,692	$	99,883	$	98,167

During the third quarter of 2019, the Company changed its calculation of the estimated impact from the initial adoption of ASC Topic 606, "Revenue from Contracts with Customers" ("ASC 606") on January 1, 2018. In accordance with ASC 606, the Company accrues contract breakage to revenue based on historical usage patterns. The original calculation of the adoption impact did not reduce deferred revenue and retained deficit enough for revenue that would have been recognized under ASC 606 for contracts that were open at the adoption date. This adjustment was immaterial to the Company’s financial statements for each period since January 1, 2018. Accordingly, the Company recorded a cumulative adjustment to service revenue during the third quarter of 2019; this adjustment included an out-of-period amount of $3.9 million.

Contract Balances

The following table discloses information about accounts receivable, costs to obtain a contract (as recorded in intangible and other assets, net on the Company's condensed consolidated balance sheet), and contract liabilities (as recorded in both current and long-term deferred revenue on the Company's condensed consolidated balance sheet) from contracts with customers (amounts in thousands):



	September 30, 2019		December 31, 2018
Accounts receivable	$	20,909	$	19,327
Capitalized costs to obtain a contract	1,974		2,018
Contract liabilities	33,100		37,630

Accounts Receivable

Included in the accounts receivable balance in the table above are contract assets, which represent primarily unbilled amounts related to performance obligations satisfied by the Company of $1.6 million and $0.7 million as of September 30, 2019 and December 31, 2018, respectively.

The Company has agreements with certain of its independent gateway operators ("IGOs") whereby the parties net settle outstanding payables and receivables between the respective entities on a periodic basis. As of September 30, 2019, and December 31, 2018, $6.0 million and $7.8 million, respectively, related to these agreements was included in accounts receivable on the Company’s condensed consolidated balance sheet. The reduction in this accounts receivable balance from December 31, 2018 resulted primarily from the write-off of the receivable due from the Company's Mexican IGO partner following that gateway being shut down during 2019 and the settlement of the receivable due from the Argentinian IGO partner following the acquisition of their MSS license by Globalstar in 2019.

Impairment losses on receivables include both provisions for bad debt and the reversal of revenue for accounts where collectability is not reasonably assured. During the three months ended September 30, 2019 and 2018, impairment loss on receivables from contracts with customers was $1.0 million and $0.4 million, respectively. During the nine months ended September 30, 2019 and 2018, impairment loss on receivables from contracts with customers was $3.7 million and $2.2 million, respectively. The increase in the impairment loss on receivables during the nine months ended September 30, 2019 compared to the same period in 2018 was driven primarily by a specific reserve related to one of the Company's IGOs, which the Company recorded during the quarter ended March 31, 2019.

Costs to Obtain a Contract

The Company also capitalizes costs to obtain a contract, which include certain deferred subscriber acquisition costs that are amortized consistently with the pattern of transfer of the good or delivery of the service to which the asset relates. The Company’s subscriber acquisition costs primarily include dealer and internal sales commissions and certain other costs, including but not limited to, promotional costs, cooperative marketing credits and shipping and fulfillment costs. The Company capitalizes incremental costs to obtain a contract to the extent it expects to recover them. These capitalized contract costs include only internal and external initial activation commissions because these costs are considered incremental and would not have been incurred if the contract had not been obtained. These capitalized costs are included in other assets on the Company’s condensed consolidated balance sheet and are amortized to marketing, general and administrative expenses on the Company’s condensed consolidated statement of operations on a straight-line basis over the estimated customer life of three years, which considers anticipated contract renewals. For the three months ended September 30, 2019 and 2018, the amount of amortization related to capitalized costs to obtain a contract was $0.3 million and $0.4 million, respectively. For the nine months ended September 30, 2019 and 2018, the amount of amortization related to capitalized costs to obtain a contract was $1.1 million and $1.2 million, respectively.

Contract Liabilities

Contract liabilities, which are included in deferred revenue on the Company’s condensed consolidated balance sheet, represent the Company’s obligation to transfer service or equipment to a customer for which it has previously received consideration from a customer. As of September 30, 2019, the total transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was $33.1 million. The amount of revenue recognized during the nine months ended September 30, 2019 from performance obligations included in the contract liability balance at the beginning of the 2019 period was $29.5 million. The amount of revenue recognized during the nine months ended September 30, 2018 from performance obligations included in the contract liability balance at the beginning of the 2018 period was $27.1 million.

In general, the duration of the Company’s contracts is one year or less; however, from time to time, the Company offers multi-year contracts. As of September 30, 2019, the Company expects to recognize $27.8 million, or approximately 84%, of its remaining performance obligations during the next twelve months and $2.4 million, or approximately 7%, between two to seven years from the balance sheet date. The remaining $2.9 million, or approximately 9%, is related to a single contract and will be recognized as work is performed by the Company, the timing of which is currently unknown.

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

3. LEASES

Adoption of ASC Topic 842 “Leases”

On January 1, 2019, the Company adopted ASC 842 using the modified retrospective method. The Company has presented financial results and applied its accounting policies for the period beginning January 1, 2019 under ASC 842, while prior period results and accounting policies have not been adjusted and are reflected under legacy GAAP pursuant to ASC 840.

In connection with the adoption of ASC 842, the Company performed an analysis of contracts under ASC 840 to ensure proper assessment of leases (or embedded leases) in existence as of January 1, 2019. The Company elected the package of practical expedients permitted under ASC 842, which allows the Company not to reassess 1) whether any expired or existing contracts as of the adoption date are or contain a lease, 2) lease classification for any expired or existing leases as of the adoption date and 3) initial direct costs for any existing leases as of the adoption date.

The most significant impact of applying ASC 842 was the recognition of right-of-use assets and lease liabilities for operating leases in its condensed consolidated balance sheet. For finance leases, the accounting remained generally consistent with legacy GAAP; however, the existing capital lease and obligation for these leases have been reclassified to a right-of-use asset and lease liability. On January 1, 2019, the Company recognized an initial operating right-of-use asset of $3.3 million and associated operating lease liabilities of $3.7 million. Since adoption of ASC 842 on January 1, 2019, the Company entered into additional leases, most significantly a lease agreement for its new headquarters location (see further discussion in Note 9: Related Party Transactions), resulting in the recognition of additional right-of-use assets and associated lease liabilities of $14.3 million. There was no impact to opening retained deficit as of January 1, 2019.

Leases

The Company has operating and finance leases for facilities and equipment throughout the United States and around the world, including corporate offices, satellite control centers, ground control centers, gateways and certain equipment.

Upon inception of a contract, the Company evaluates if the contract, or part of the contract, contains a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Leases include both a right-of-use asset and a lease liability. The right-of-use asset represents the Company’s right to use the underlying asset in the lease. Certain initial direct costs associated with consummating a lease are included in the initial measurement of the right-of-use asset. The right-of-use asset also includes prepaid lease payments and lease incentives. The lease liability represents the present value of the remaining lease payments discounted using the implicit rate in the lease on the lease commencement date. For leases in which the implicit rate is not readily determinable, an estimated incremental borrowing rate is used, which represents a rate of interest that the Company would pay to borrow on a collateralized basis over a similar term. The Company has elected to combine lease and nonlease components, if applicable. As of September 30, 2019, there are no leases not yet commenced that create significant rights and obligations.

For operating leases, the Company records lease expense on a straight-line basis over the lease term in either marketing, general and administrative expense or cost of services, depending on the nature of the underlying asset. For finance leases, the Company records the amortization of the right-of-use asset through depreciation, amortization and accretion expense and records the interest expense on the lease liability through interest expense, net, using the effective interest method.

Variable lease payments are payments made to a lessor due to changes in circumstances occurring after the commencement date. Variable lease payments dependent upon an index or rate are included in the measurement of the lease liability; all other variable lease payments are not included in the measurement of the lease liability and recognized when incurred. Variable lease payments excluded from the measurement of the lease liability are uncommon and, when incurred, are immaterial for the Company.

The Company’s leases have remaining lease terms of 1 year to 12 years. Lease terms include renewal or termination options that the Company is reasonably certain to exercise. For leases with a term of twelve months or less, the Company does not record a right-of-use asset and associated lease liability on its condensed consolidated balance sheet.

The Company reviews the carrying value of its right-of-use assets for impairment whenever events or changes in circumstances indicate that the recorded value may not be recoverable. Recoverability of assets is measured by comparing the carrying amounts of the assets to the estimated future undiscounted cash flows, excluding financing costs. If the Company determines that an impairment exists, any related impairment loss is estimated based on fair values.

The following tables disclose the components of the Company’s finance and operating leases (amounts in thousands):



	As of:
	September 30, 2019
Operating leases:
Right-of-use asset, net	$	16,270

Short-term lease liability (as recorded in accrued expenses)	1,588
Long-term lease liability	15,158
Total operating lease liabilities	$	16,746

Finance leases:
Right-of-use asset, net (as recorded in intangible and other current assets, net)	$	121

Short-term lease liability (as recorded in accrued expenses)	77
Long-term lease liability (as recorded in non-current liabilities)	34
Total finance lease liabilities	$	111

Impact on Financial Statements

The following table summarizes the impact of the adoption of ASC 842 on the Company’s condensed consolidated balance sheet. There was no impact on the Company’s condensed consolidated statement of operations as a result of this adoption. Amounts are in thousands.

Condensed Consolidated Balance Sheet

As of September 30, 2019



	Impact on change in accounting policy
	As reported September 30, 2019		Impact of ASC 842			Legacy GAAP
Right-of-use asset, net	$	16,270	$	(16,270	)	$	—
Intangible and other assets, net	121		(121		)	—
Property and equipment, net	—		121			121
Accrued expenses	1,665		(1,480		)	185
Lease liabilities	15,158		(15,158		)	—
Other non-current liabilities	34		—			34

Lease Cost

The components of lease cost are reflected in the table below (amounts in thousands). As noted above, prior periods have not been adjusted under the modified retrospective method of adoption.



	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Operating lease cost:
Amortization of right-of-use assets	$	440	$	1,257
Interest on lease liabilities	305		747
Finance lease cost:
Amortization of right-of-use assets	26		78
Interest on lease liabilities	3		9
Short-term lease cost	3		179
Total lease cost	$	777	$	2,270

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.



	As of:
	September 30, 2019

Weighted-average lease term
Finance leases	1.6 years
Operating Leases	7.6 years

Weighted-average discount rate
Finance leases	8.0	%
Operating leases	7.2	%

Supplemental Cash Flow Information

The below table discloses supplemental cash flow information for finance and operating leases (in thousands).



	Nine Months Ended
	September 30, 2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,870
Operating cash flows from finance leases	9
Financing cash flows from finance leases	69

Maturity Analysis

The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of September 30, 2019 (amounts in thousands):



	Operating Leases			Finance Leases

2019 (remaining)	$	774		$	26
2020	3,029			72
2021	2,456			11
2022	2,342			6
2023	2,370			3
2024	2,370			—
Thereafter	11,109			—
Total lease payments	$	24,450		$	118
Imputed interest	(7,704		)	(7		)
Discounted lease liability	$	16,746		$	111

Leases

3. LEASES

Adoption of ASC Topic 842 “Leases”

Leases

The following tables disclose the components of the Company’s finance and operating leases (amounts in thousands):



	As of:
	September 30, 2019
Operating leases:
Right-of-use asset, net	$	16,270

Short-term lease liability (as recorded in accrued expenses)	1,588
Long-term lease liability	15,158
Total operating lease liabilities	$	16,746

Finance leases:
Right-of-use asset, net (as recorded in intangible and other current assets, net)	$	121

Short-term lease liability (as recorded in accrued expenses)	77
Long-term lease liability (as recorded in non-current liabilities)	34
Total finance lease liabilities	$	111

Impact on Financial Statements

Condensed Consolidated Balance Sheet

As of September 30, 2019



	Impact on change in accounting policy
	As reported September 30, 2019		Impact of ASC 842			Legacy GAAP
Right-of-use asset, net	$	16,270	$	(16,270	)	$	—
Intangible and other assets, net	121		(121		)	—
Property and equipment, net	—		121			121
Accrued expenses	1,665		(1,480		)	185
Lease liabilities	15,158		(15,158		)	—
Other non-current liabilities	34		—			34

Lease Cost

The components of lease cost are reflected in the table below (amounts in thousands). As noted above, prior periods have not been adjusted under the modified retrospective method of adoption.



	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Operating lease cost:
Amortization of right-of-use assets	$	440	$	1,257
Interest on lease liabilities	305		747
Finance lease cost:
Amortization of right-of-use assets	26		78
Interest on lease liabilities	3		9
Short-term lease cost	3		179
Total lease cost	$	777	$	2,270

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.



	As of:
	September 30, 2019

Weighted-average lease term
Finance leases	1.6 years
Operating Leases	7.6 years

Weighted-average discount rate
Finance leases	8.0	%
Operating leases	7.2	%

Supplemental Cash Flow Information

The below table discloses supplemental cash flow information for finance and operating leases (in thousands).



	Nine Months Ended
	September 30, 2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,870
Operating cash flows from finance leases	9
Financing cash flows from finance leases	69

Maturity Analysis

The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of September 30, 2019 (amounts in thousands):



	Operating Leases			Finance Leases

2019 (remaining)	$	774		$	26
2020	3,029			72
2021	2,456			11
2022	2,342			6
2023	2,370			3
2024	2,370			—
Thereafter	11,109			—
Total lease payments	$	24,450		$	118
Imputed interest	(7,704		)	(7		)
Discounted lease liability	$	16,746		$	111

Property and Equipment

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

4. PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands):



	September 30, 2019			December 31, 2018
Globalstar System:
Space component
First and second-generation satellites in service	$	1,195,291		$	1,195,291
Second-generation satellite, on-ground spare	32,443			32,481
Ground component	268,687			256,850
Construction in progress:
Ground component	12,614			18,068
Next-generation software upgrades	3,229			2,250
Other	1,277			2,699
Total Globalstar System	1,513,541			1,507,639
Internally developed and purchased software	19,160			26,045
Equipment	10,162			10,097
Land and buildings	3,259			3,311
Leasehold improvements	1,644			1,478
Total property and equipment	1,547,766			1,548,570
Accumulated depreciation	(727,451		)	(665,875		)
Total property and equipment, net	$	820,315		$	882,695

Amounts in the above table consist primarily of costs incurred related to the construction of the Company’s second-generation constellation and ground upgrades. The remaining ground component of construction in progress represents costs (including capitalized interest) incurred for assets to upgrade the Company's ground infrastructure in certain regions around the world. These gateway assets will be deployed based on coverage optimization. In January 2019, the Company completed technology upgrades to allow customers to use Sat-Fi2^® in certain areas of Latin America. Accordingly, it placed into service approximately $7.9 million of construction in progress (including capitalized interest) related to the deployment of two RANs to this region during 2019. The ground component of construction in progress also includes costs (including capitalized interest) associated with the Company's contract for the procurement and production of new gateway antennas.

Additionally, during the first quarter of 2019, a portion of internally developed and purchased software assets were retired, which drove the decrease in the table above.

Amounts included in the Company’s second-generation satellite, on-ground spare balance as of September 30, 2019 and December 31, 2018, consist primarily of costs related to a spare second-generation satellite that has not been placed in orbit, but is capable of being included in a future launch. As of September 30, 2019, this satellite has not been placed into service; therefore, the Company has not started to record depreciation expense.

Long-Term Debt and Other Financing Arrangements

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Other Financing Arrangements

5. LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS

Long-term debt consists of the following (in thousands):



	September 30, 2019						December 31, 2018
	Principal Amount		Unamortized Discount and Deferred Financing Costs		Carrying Value		Principal Amount		Unamortized Discount and Deferred Financing Costs		Carrying Value
Facility Agreement	$	341,955	$	17,771	$	324,184	$	389,390	$	24,355	$	365,035
Subordinated Loan Agreement	64,423		110		64,313		—		—		—
Loan Agreement with Thermo	131,046		19,640		111,406		119,702		22,665		97,037
8.00% Convertible Senior Notes Issued in 2013	1,394		—		1,394		1,379		—		1,379
Total Debt	538,818		37,521		501,297		510,471		47,020		463,451
Less: Current Portion	98,829		—		98,829		96,249		—		96,249
Long-Term Debt	$	439,989	$	37,521	$	402,468	$	414,222	$	47,020	$	367,202

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, as further described below. The current portion of long-term debt represents the scheduled principal repayments under the Facility Agreement due within one year of the balance sheet date and the total outstanding balance of the Company's 8.00% Convertible Senior Notes Issued in 2013 (the "2013 8.00% Notes") based on the put and call features in these notes. The Company believes that the principal payments due in December 2019 and June 2020 under the Facility Agreement will be in excess of its available sources of cash in order to also maintain compliance with the required balance in the debt service reserve account. The Company is currently negotiating an amendment to these debt obligations; however, the definitive documentation for such amendment has not been executed.

Facility Agreement

In 2009, the Company entered into the Facility Agreement with a syndicate of bank lenders, including BNP Paribas, Société Générale, Natixis, Crédit Agricole Corporate and Investment Bank (formerly Calyon) and Crédit Industriel et Commercial, as arrangers, and BNP Paribas, as the security agent. The Facility Agreement was amended and restated in July 2013, August 2015 and June 2017.

The Facility Agreement is scheduled to mature in December 2022. As of September 30, 2019, the Facility Agreement was fully drawn. Semi-annual principal repayments began in December 2014. Indebtedness under the Facility Agreement bears interest at a floating rate of LIBOR plus a margin that increases by 0.5% each year to a maximum rate of LIBOR plus 5.75%. For the twelve-month period ended June 30, 2019, this rate was LIBOR plus 3.75%. This margin increased to 4.25% on July 1, 2019. Interest on the Facility Agreement is payable semi-annually in arrears on June 30 and December 31 of each calendar year. Ninety-five percent of the Company’s obligations under the Facility Agreement are guaranteed by Bpifrance Assurance Export S.A.S. (“BPIFAE”) (formerly COFACE), the French export credit agency. The Company’s obligations under the Facility Agreement are guaranteed on a senior secured basis by all of its domestic subsidiaries and are secured by a first priority lien on substantially all of the assets of the Company and its domestic subsidiaries (other than their FCC licenses), including patents and trademarks, 100% of the equity of the Company’s domestic subsidiaries and 65% of the equity of certain foreign subsidiaries.

The Facility Agreement contains customary events of default and requires that the Company satisfy various financial and non-financial covenants. The covenants in the Facility Agreement limit the Company's ability to, among other things, incur or guarantee additional indebtedness; make certain investments, acquisitions or capital expenditures above certain agreed levels; pay dividends or repurchase or redeem capital stock or subordinated indebtedness; grant liens on its assets; incur restrictions on the ability of its subsidiaries to pay dividends or to make other payments to the Company; enter into transactions with its affiliates; merge or consolidate with other entities or transfer all or substantially all of its assets; and transfer or sell assets.

In calculating compliance with the financial covenants of the Facility Agreement, the Company may include certain cash funds contributed to the Company from the issuance of the Company's common stock and/or subordinated indebtedness. These funds are referred to as “Equity Cure Contributions” and may be used to achieve compliance with financial covenants through December 2019. If the Company violates any covenants and is unable to obtain a sufficient Equity Cure Contribution or obtain a waiver, or is unable to make payments to satisfy its debt obligations under the Facility Agreement when due and is unable to obtain a waiver, it would be in default under the Facility Agreement and payment of the indebtedness could be accelerated. The acceleration of the Company's indebtedness under one agreement may permit acceleration of indebtedness under other agreements that contain cross-acceleration provisions. The Company needed an Equity Cure Contribution to maintain compliance with financial covenants under the Facility Agreement for the measurement period ended June 30, 2019, which it obtained through the Subordinated Loan Agreement. The Company anticipates that it will also need an Equity Cure Contribution to maintain compliance with financial covenants for the measurement period ended December 31, 2019, subject to the provisions of the Facility Agreement. The source of funds for this Equity Cure Contribution has not yet been arranged. Additionally, the Company may not be in compliance with financial covenants for the measurement period June 30, 2020, and the Facility Agreement would not permit an Equity Cure Contribution at that time. As discussed above, the Company is actively working to amend the terms of the Facility Agreement, which is expected to include an extension of the Company's ability to use Equity Cure Contributions; however, the terms of any such amendment have not been finalized. As of September 30, 2019, the Company was in compliance with respect to the covenants of the Facility Agreement, except that the Company and its lenders are currently discussing whether or not the Company was in compliance with certain administrative covenants, including primarily related to treasury processes required within the Accounts Agreement. The Company expects these items will be resolved as part of the amendment that is currently being negotiated.

The Facility Agreement also requires the Company to maintain a debt service reserve account, which is pledged to secure all of the Company's obligations under the Facility Agreement. The use of the debt service reserve account funds is restricted to making principal and interest payments under the Facility Agreement. The balance in the debt service reserve account must equal at least the total amount of principal and interest payable by the Company on the next payment date. As of September 30, 2019, the balance in the debt service reserve account was $59.1 million and the balance in the equity proceeds account, that is also required to be used for obligations under the Facility Agreement, was $2.1 million, both of which are classified as restricted cash on the Company's condensed consolidated balance sheet.

In June 2019, the Company and the Lenders under the Facility Agreement reached an agreement in principal, which provides for the amendment of the Facility Agreement. We are currently negotiating the terms of the amendment, which is subject to final definitive documentation and customary closing requirements and conditions. The amendment provides primarily for (i) prepayment of the next three scheduled principal payments primarily using proceeds from a new second lien term loan facility, (ii) revisions to the remaining repayment schedule to reduce the amount of scheduled payments of principal required prior to maturity, and (iii) a reset of financial covenant levels together with an extension of the availability of the cure mechanism under the Facility Agreement. The Company cannot provide assurance that the amendment will be completed or that we will be able to obtain the second lien term loan facility.

Subordinated Loan

On July 2, 2019, the Company entered into a Subordinated Loan Agreement (the “Subordinated Loan Agreement”), effective as of June 28, 2019, with Thermo Funding Company LLC (an affiliated entity to Thermo), and certain unaffiliated parties (together with Thermo, the “Lenders”). Under the Subordinated Loan Agreement, the Lenders lent $62.0 million to the Company on June 28, 2019 for the primary purpose of funding the June 30, 2019 scheduled payment of interest and principal under the Company’s Facility Agreement and for certain other purposes. The loans under the Subordinated Loan Agreement qualified as an Equity Cure Contribution under the Facility Agreement. Globalstar’s indebtedness to the Lenders is subordinated to all obligations of the Company under the Facility Agreement. Thermo has agreed to subordinate the Company’s obligations to it under the Loan Agreement to the Company’s obligations under the Subordinated Loan Agreement.

The Subordinated Loan Agreement accrues interest at 15% per annum, which is capitalized and added to the outstanding principal in lieu of cash payments. Payments to the Lenders will be made only when permitted under the Facility Agreement. The Subordinated Loan Agreement becomes due and payable on December 31, 2023, or upon any acceleration of the maturity of the Subordinated Loan Agreement. As of September 30, 2019, $2.4 million of interest had accrued with respect to the Subordinated Loan Agreement; the Subordinated Loan Agreement is included in long-term debt on the Company’s condensed consolidated balance sheet.

The Subordinated Loan Agreement also contains an affirmative covenant requiring the Company to use reasonable best efforts to either (i) refinance its obligations under the Facility Agreement and the Subordinated Loan Agreement in full or (ii) refinance its obligations under the Subordinated Loan Agreement and obtain a corresponding amendment of the Facility Agreement to permit such refinancing. In addition, in the event the Company’s obligations under the Subordinated Loan Agreement have not been refinanced within 150 days of the date of the Subordinated Loan Agreement, the Company is required to use its reasonable best efforts to issue and do all things to facilitate the issuance of registered warrants exercisable for shares of common stock in the Company to the Lenders in such amounts and on such terms and the Company and the Lenders shall agree. The 150 day deadline noted above is an extension of the original 120 day deadline provided in the Subordinated Loan Agreement.

The Company evaluated the affirmative covenant in the Subordinated Loan Agreement and determined that the warrants did not qualify as contingently issuable equity under ASC 815 as of September 30, 2019 because the definitive terms of such warrants were not agreed upon at the time the Subordinated Loan Agreement was executed.

The Company’s Board of Directors considered the Subordinated Loan Agreement and the related transactions and unanimously concluded that they constitute a “Permitted Financing” under Article Eleventh of the Second Amended and Restated Certificate of Incorporation of the Company.

Thermo Loan Agreement

In connection with the amendment and restatement of the Facility Agreement in July 2013, the Company amended and restated its loan agreement with Thermo (the “Loan Agreement”). All obligations of the Company to Thermo under the Loan Agreement are subordinated to the Company’s obligations under the Facility Agreement. The Loan Agreement is convertible into shares of common stock at a conversion price of $0.69 (as adjusted) per share of common stock. Based on the terms of the Settlement Agreement (as defined and discussed further in Note 8: Contingencies), the outstanding debt under the Loan Agreement with Thermo will convert into shares of Globalstar common stock at the conversion price in place at the time of certain financing events described in the Settlement Agreement, if and when such events occur. The Company expects that Thermo will agree to voluntarily convert the principal balance outstanding under the Thermo Loan Agreement if the amendment to the Facility Agreement discussed above is completed.

The Loan Agreement accrues interest at 12% per annum, which is capitalized and added to the outstanding principal in lieu of cash payments. The Company will make payments to Thermo only when permitted by the Facility Agreement. Principal and interest under the Loan Agreement become due and payable six months after the obligations under the Facility Agreement have been paid in full, or earlier if the Company has a change in control or if any acceleration of the maturity of the loans under the Facility Agreement occurs. As of September 30, 2019, $87.5 million of interest had accrued since 2009 with respect to the Loan Agreement; the Loan Agreement is included in long-term debt on the Company’s condensed consolidated balance sheets.

The Company evaluated the various embedded derivatives within the Loan Agreement (See Note 7: Fair Value Measurements for additional information about the embedded derivative in the Loan Agreement). The Company determined that the conversion option and the contingent put feature upon a fundamental change required bifurcation from the Loan Agreement. The conversion option and the contingent put feature were not deemed clearly and closely related to the Loan Agreement and were separately accounted for as a standalone derivative. The Company recorded this compound embedded derivative liability as a non-current liability on its condensed consolidated balance sheets with a corresponding debt discount, which is netted against the face value of the Loan Agreement.

The Company is accreting the debt discount associated with the compound embedded derivative liability to interest expense through the maturity of the Loan Agreement using an effective interest rate method. The fair value of the compound embedded derivative liability is marked-to-market at the end of each reporting period, with any changes in value reported in the condensed consolidated statements of operations. The Company determines the fair value of the compound embedded derivative using a Monte Carlo simulation model. If the principal balance under the Thermo Loan is converted as discussed above, any remaining debt discount and deferred financing costs would be written off through the statement of operations and the derivative liability would be marked-to-market at the conversion date and then extinguished through the statement of operations.

As previously disclosed, in connection with the Settlement Agreement discussed in Note 8: Contingencies, the Company formed a Strategic Review Committee that is required to remain in existence for as long as Thermo and its affiliates beneficially own forty-five percent (45%) or more of Globalstar’s outstanding common stock. To the extent permitted by applicable law, the Strategic Review Committee has exclusive responsibility for the oversight, review and approval of, among other things and subject to certain exceptions, any acquisition by Thermo and its affiliates of additional newly-issued securities of the Company and any transaction between the Company and Thermo and its affiliates with a value in excess of $250,000. The approval of any of the foregoing transactions will require the vote of at least a majority of the Strategic Review Committee.

8.00% Convertible Senior Notes Issued in 2013

The 2013 8.00% Notes are convertible into shares of common stock at a conversion price of $0.69 (as adjusted) per share of common stock. The conversion price of the 2013 8.00% Notes is adjusted in the event of certain stock splits or extraordinary share distributions, or as a reset of the base conversion and exercise price pursuant to the terms of the Fourth Supplemental Indenture between the Company and U.S. Bank National Association, as Trustee, dated May 20, 2013 (the “Indenture”).

The 2013 8.00% Notes are senior unsecured debt obligations of the Company with no sinking fund. The 2013 8.00% Notes will mature on April 1, 2028, subject to various call and put features, and bear interest at a rate of 8.00% per annum. Subject to certain conditions set forth in the Indenture, the Company may redeem the 2013 8.00% Notes, with the prior approval of the majority lenders under the Facility Agreement, in whole or in part, at any time on or after April 1, 2018, at a price equal to the principal amount of the 2013 8.00% Notes to be redeemed plus all accrued and unpaid interest thereon. As of September 30, 2019, the 2013 8.00% Notes have not been redeemed by the Company. A holder of the 2013 8.00% Notes has the right, at the holder’s option, to require the Company to purchase some or all of the 2013 8.00% Notes held by it on April 1, 2023 at a price equal to the principal amount of the 2013 8.00% Notes to be purchased plus accrued and unpaid interest.

Interest on the 2013 8.00% Notes is payable semi-annually in arrears on April 1 and October 1 of each year. Interest is paid in cash at a rate of 5.75% per annum and in additional notes at a rate of 2.25% per annum. The Indenture for the 2013 8.00% Notes provides for customary events of default. As of September 30, 2019, the Company was in compliance with the terms of the 2013 8.00% Notes and the Indenture.

Subject to the procedures for conversion and other terms and conditions of the Indenture, a holder may convert its 2013 8.00% Notes at its option at any time prior to the close of business on the business day immediately preceding April 1, 2028, into shares of common stock (or, at the option of the Company, cash in lieu of all or a portion thereof, provided that, under the Facility Agreement, the Company may pay cash only with the consent of the majority lenders) over a 40-consecutive trading day settlement period. As of September 30, 2019, holders had converted a total of $55.4 million principal amount of the 2013 8.00% Notes, resulting in the issuance of approximately 98.5 million shares of voting common stock.

The Company evaluated the various embedded derivatives within the Indenture for the 2013 8.00% Notes. The Company determined that the conversion option and the contingent put feature within the Indenture required bifurcation from the 2013 8.00% Notes. The Company recorded this compound embedded derivative liability as a liability on its condensed consolidated balance sheets with a corresponding debt discount which was netted against the face value of the 2013 8.00% Notes. See Note 6: Derivatives for further information.

Derivatives

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

6. DERIVATIVES

In connection with certain existing borrowing arrangements, the Company was required to record derivative instruments on its condensed 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 condensed consolidated balance sheets (in thousands):



	September 30, 2019			December 31, 2018
Derivative liabilities:
Compound embedded derivative with the 2013 8.00% Notes	$	(129	)	$	(757	)
Compound embedded derivative with the Loan Agreement with Thermo	(4,456		)	(146,108		)
Total derivative liabilities	$	(4,585	)	$	(146,865	)

The following table discloses the changes in value recorded as derivative gain (loss) in the Company’s condensed consolidated statement of operations (in thousands):



	Three Months Ended				Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Compound embedded derivative with the 2013 8.00% Notes	$	159	$	322	628		709
Compound embedded derivative with the Loan Agreement with Thermo	49,997		38,737		141,652		145,235
Total derivative gain	$	50,156	$	39,059	$	142,280	$	145,944

Intangible and Other Assets

Interest Rate Cap

In June 2009, in connection with entering into the Facility Agreement, under which interest accrues at a variable rate, the Company entered into five ten-year interest rate cap agreements, which mature in December 2019. The interest rate cap agreements reflect a variable notional amount at interest rates that provide coverage to the Company for exposure resulting from escalating interest rates over the term of the Facility Agreement. The interest rate cap provides limits on the six-month Libor rate (“Base Rate”) used to calculate the coupon interest on outstanding amounts on the Facility Agreement and is capped at 5.50% should the Base Rate not exceed 6.5%. Should the Base Rate exceed 6.5%, the Company’s Base Rate will be 1% less than the then six-month Libor rate. The Company paid an approximately $12.4 million upfront fee for the interest rate cap agreements. The interest rate cap did not qualify for hedge accounting treatment, and changes in the fair value of the agreements are included in the condensed consolidated statements of operations. The value of the interest rate cap was approximately zero as of September 30, 2019 and December 31, 2018, respectively.

Derivative Liabilities

The Company has identified various embedded derivatives resulting from certain features in the Company’s debt instruments, including the conversion option and the contingent put feature within both the 2013 8.00% Notes and the Loan Agreement with Thermo. The fair value of each embedded derivative liability is marked-to-market at the end of each reporting period, or more frequently as deemed necessary, with any changes in value reported in its condensed consolidated statements of operations and its condensed consolidated statements of cash flows as an operating activity. The Company determined the fair value of its compound embedded derivative liabilities using a Monte Carlo simulation model. See Note 7: Fair Value Measurements for further discussion. Consistent with the classification of the 2013 8.00% Notes on the Company's condensed consolidated balance sheet, the Company has classified the associated derivative liability as current on its condensed consolidated balance sheet at September 30, 2019.

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

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):



	September 30, 2019
	(Level 1)		(Level 2)		(Level 3)			Total Balance
Compound embedded derivative with the 2013 8.00% Notes	$	—	$	—	$	(129	)	$	(129	)
Compound embedded derivative with the Loan Agreement with Thermo	—		—		(4,456		)	(4,456		)
Total liabilities measured at fair value	$	—	$	—	$	(4,585	)	$	(4,585	)



	December 31, 2018
	(Level 1)		(Level 2)		(Level 3)			Total Balance
Compound embedded derivative with the 2013 8.00% Notes	$	—	$	—	$	(757	)	$	(757	)
Compound embedded derivative with the Loan Agreement with Thermo	—		—		(146,108		)	(146,108		)
Total liabilities measured at fair value	$	—	$	—	$	(146,865	)	$	(146,865	)

Derivative Liabilities

The Company has two derivative liabilities classified as Level 3. The Company marks-to-market these liabilities at each reporting date, or more frequently as deemed necessary, with the changes in fair value recognized in the Company’s condensed consolidated statements of operations. See Note 6: Derivatives for further discussion.

The significant quantitative Level 3 inputs utilized in the valuation models are shown in the tables below:



	September 30, 2019
	Stock Price Volatility	Risk-Free Interest Rate		Note Conversion Price		Discount Rate		Market Price of Common Stock
Compound embedded derivative with the 2013 8.00% Notes	70% - 130%	1.6	%	$	0.69	11% - 27%		$	0.41
Compound embedded derivative with the Loan Agreement with Thermo	70% - 130%	1.6	%	$	0.69	27	%	$	0.41



	December 31, 2018
	Stock Price Volatility	Risk-Free Interest Rate		Note Conversion Price		Discount Rate		Market Price of Common Stock
Compound embedded derivative with the 2013 8.00% Notes	40% - 120%	2.5	%	$	0.69	28	%	$	0.64
Compound embedded derivative with the Loan Agreement with Thermo	40% - 120%	2.5	%	$	0.69	28	%	$	0.64

Fluctuation in the Company’s stock price is one of the primary drivers for the changes in the derivative valuations during each reporting period. The Company's stock price decreased 36% from December 31, 2018 to September 30, 2019. As the stock price decreases, the value to the holder of the instrument generally decreases, thereby decreasing the liability on the Company’s condensed consolidated balance sheets. Stock price volatility is another significant unobservable input used in the fair value measurement of each of the Company’s derivative instruments. The simulated fair value of these liabilities is sensitive to changes in the expected volatility of the Company's stock price. Decreases in expected volatility would generally result in a lower fair value measurement.

Probability of a change of control is another significant unobservable input used in the fair value measurement of the Company’s derivative instruments. Subject to certain restrictions in each indenture, the Company’s debt instruments contain certain provisions whereby holders may require the Company to purchase all or any portion of the convertible debt instrument upon a change of control. A change of control will occur upon certain changes in the ownership of the Company or certain events relating to the trading of the Company’s common stock. The simulated fair value of the derivative liabilities above is sensitive to changes in the assumed probabilities of a change of control. Increases in the assumed probability of a change of control in the short-term would generally result in a lower fair value measurement, while increases in the assumed probability of a change in control in the long-term would generally result in a higher fair value measurement.

As previously discussed, the Company is actively working on a refinancing of its debt obligations. A refinancing may result in the conversion of certain outstanding loan agreements. The potential conversion of both the Thermo Loan Agreement and the 2013 8.00% Notes was modeled based on a probability assessment of each financing scenario and, accordingly, was included in the valuation of the associated compound embedded derivatives as of September 30, 2019. These assumptions resulted in a reduction of the derivative valuations during the three and nine months ended September 30, 2019.

In addition to the inputs described above, the valuation model used to calculate the fair value measurement of the compound embedded derivatives within the Company’s 2013 8.00% Notes and Loan Agreement with Thermo included the following inputs and features: payment-in-kind interest payments, make-whole premiums, a 40-day stock issuance settlement period upon conversion, estimated maturity date, and the principal balance of each loan at the balance sheet date. There are also certain put and call features, as well as potential redemptions by the Company, within the 2013 8.00% Notes that impact the valuation model.

The following table presents a rollforward for all liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance at beginning of period	$	(54,741	)	$	(121,100	)	$	(146,865	)	$	(227,985	)
Unrealized gain, included in derivative gain	50,156			39,059			142,280			145,944
Balance at end of period	$	(4,585	)	$	(82,041	)	$	(4,585	)	$	(82,041	)

Fair Value of Debt Instruments

The Company believes it is not practicable to determine the fair value of the Facility Agreement without incurring significant additional costs. Unlike typical long-term debt, interest rates and other terms for the Facility Agreement are not readily available and generally involve a variety of factors, including due diligence by the debt holders. The following table sets forth the carrying values and estimated fair values of the Company's other debt instruments, which are classified as Level 3 financial instruments (in thousands):



	September 30, 2019				December 31, 2018
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Loan Agreement with Thermo	$	111,406	$	83,686	$	97,037	$	67,452
2013 8.00% Notes	1,394		837		1,379		734

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Contingencies	9 Months Ended
Contingencies	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies	8. CONTINGENCIES Securities Claim On September 25, 2018, a shareholder action was filed against Globalstar, Inc. (the "Company" or "Globalstar"), members of the Board of Directors, Thermo Companies, Inc., and certain members of Globalstar management in the Court of Chancery of the State of Delaware (the "Court"), captioned Mudrick Capital Management, LP, et al. v. Monroe, et al., C.A. No. 2018-0699-TMR (the "Action"). As previously disclosed, on December 14, 2018, all parties to the Action, including plaintiffs Mudrick Capital Management, L.P. (“Mudrick Capital”) and Warlander Asset Management (“Warlander”, and, together with Mudrick Capital, the “Plaintiffs”), entered into a stipulation and agreement of settlement, compromise and release of stockholder derivative action (the “Settlement Agreement”) to settle all claims asserted against all defendants in the Action. On September 5, 2019, the Court approved the Settlement Agreement and awarded to the Plaintiffs' attorneys a fee of $4.5 million, inclusive of expenses. Payment of the fee award is due after the Court's order and judgment became final in November 2019. As of September 30, 2019, the Plaintiff's award was not paid, and, accordingly, the Company accrued $4.5 million as a current liability on the its condensed consolidated balance sheet. This settlement award, as well as other costs incurred by the Company directly associated with the Action, exceeded the Company's retention limit of $1.5 million for a "securities claim" under its directors and officers insurance policy. According to ASC 450, a recovery related to a contingent loss (e.g., insurance recovery) is a contingent gain. Recovery of a recorded contingent loss shall be recognized only when realization of the recovery is deemed probable and reasonably estimable. Accordingly, the Company has recorded a receivable of $4.8 million, which includes the $4.5 million settlement fee and certain other costs in excess of the Company's retention, as of September 30, 2019. The Company expects that this amount will be paid by its primary insurance provider in November 2019. The Company believes it is probable that its remaining costs will also be paid by the Company's insurance provider. This remaining uncollected amount is a contingent gain which would be recognized when realizable. Tariff Ruling In September 2019, U.S Customs and Border Protection ("CBP") issued a ruling related to the classification of certain of the Company's core products imported from China. This classification, which carries 25% tariffs upon import, is inconsistent with the classification the Company previously used based on external legal advice. As a result of the CBP ruling, during the third quarter of 2019, the Company recorded a payable of approximately $1.8 million in accrued expenses on the Company's condensed consolidated balance sheet related to goods imported from China from July 6, 2018 through September 30, 2019. Of the total amount accrued as of September 30, 2019, $0.9 million was associated with inventory sold since July 2018, thereby negatively impacting cost of subscriber equipment sales during the three months ended September 30, 2019. Of the remaining $0.9 million, $0.5 million was recorded as an increase to inventory as the goods have not yet been sold and $0.4 million was recorded as an offsetting receivable because the Company believes this amount, which represents the portion of duties owed for equipment transferred to foreign subsidiaries for sale, is recoverable as a duty drawback. The Company plans on filing a protest against this ruling to challenge the classification and reduce the amounts owed. The Company cannot provide any assurance that it may be successful in achieving a favorable outcome; as such, the Company is accounting for this matter as a gain contingency and may record any such gain from a reimbursement or change in ruling in future periods if and when the contingency is resolved. Business Economic Loss Claim In May 2018, the Company concluded the settlement of a business economic loss claim in which it was an absent member in a tort class action lawsuit. The Company is due proceeds of $7.4 million, net of legal fees, related to this settlement. The Company received the first installment of $3.7 million in January 2019. The final installment of $3.7 million is expected to be received in January 2020 and is recorded in prepaid expenses and other current assets on the Company's condensed consolidated balance sheet at September 30, 2019. The Company evaluated the facts and circumstances surrounding this settlement and determined that under ASC 450, this contingent gain was considered realizable as the signed settlement was enforceable, the counterparty had the wherewithal to pay the amount and the proceeds met the definition of an asset. During the second quarter of 2018, the Company recorded the present value of the proceeds of $6.8 million and a discount of $0.6 million. The present value of the net proceeds of $6.8 million was recorded in other income on the Company's condensed consolidated statement of operations. The discount of $0.6 million was recorded on the Company's condensed consolidated balance sheet and is being accreted to interest income over the term of the receivable using the effective interest method. Other Litigation Due to the nature of the Company's business, the Company is involved, from time to time, in various litigation matters or subject to disputes or routine claims regarding its business activities. Legal costs related to these matters are expensed as incurred. In management's opinion, there is no pending litigation, dispute or claim, other than those described in this report, which could be expected to have a material adverse effect on the Company's financial condition, results of operations or liquidity.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	9. RELATED PARTY TRANSACTIONS Payables to Thermo and other affiliates related to normal purchase transactions were $0.4 million and $0.7 million as of September 30, 2019 and December 31, 2018, respectively. Transactions with Thermo Certain general and administrative expenses are incurred by Thermo on behalf of the Company. These expenses, which include non-cash expenses that the Company accounts for as a contribution to capital, related to services provided by certain executive officers of Thermo and expenses incurred by Thermo on behalf of the Company which are charged to the Company. The expenses charged are based on actual amounts (with no mark-up) incurred by Thermo or upon allocated employee time. The expenses charged to the Company were $0.1 million and $0.2 million during the three months ended September 30, 2019 and 2018, respectively, and $0.3 million and $0.6 million during the nine months ended September 30, 2019 and 2018, respectively. Additionally, in February 2019, the Company entered into a lease agreement with Thermo Covington, LLC for the Company's new headquarters office. Annual lease payments for the new location will be $1.4 million per year, increasing at a rate of 2.5% per year, for a lease term of ten years. During the three and nine months ended September 30, 2019, the Company incurred lease expense of $0.5 million and $1.3 million due to Thermo under this lease agreement.