gsat-20210930
false2021Q30001366868--12-31http://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Member00013668682021-01-012021-09-30xbrli:shares0001366868us-gaap:CommonStockMember2021-10-290001366868us-gaap:NonvotingCommonStockMember2021-10-29iso4217:USD0001366868us-gaap:ServiceMember2021-07-012021-09-300001366868us-gaap:ServiceMember2020-07-012020-09-300001366868us-gaap:ServiceMember2021-01-012021-09-300001366868us-gaap:ServiceMember2020-01-012020-09-300001366868us-gaap:ProductMember2021-07-012021-09-300001366868us-gaap:ProductMember2020-07-012020-09-300001366868us-gaap:ProductMember2021-01-012021-09-300001366868us-gaap:ProductMember2020-01-012020-09-3000013668682021-07-012021-09-3000013668682020-07-012020-09-3000013668682020-01-012020-09-30iso4217:USDxbrli:shares00013668682021-09-3000013668682020-12-310001366868us-gaap:SeriesAPreferredStockMember2021-09-300001366868us-gaap:SeriesAPreferredStockMember2020-12-310001366868us-gaap:CommonStockMember2020-12-310001366868us-gaap:CommonStockMember2021-09-300001366868us-gaap:NonvotingCommonStockMember2021-09-300001366868us-gaap:NonvotingCommonStockMember2020-12-310001366868us-gaap:CommonStockMember2020-12-310001366868us-gaap:AdditionalPaidInCapitalMember2020-12-310001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001366868us-gaap:RetainedEarningsMember2020-12-310001366868us-gaap:CommonStockMember2021-01-012021-03-310001366868us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100013668682021-01-012021-03-310001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001366868us-gaap:RetainedEarningsMember2021-01-012021-03-310001366868us-gaap:CommonStockMember2021-03-310001366868us-gaap:AdditionalPaidInCapitalMember2021-03-310001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001366868us-gaap:RetainedEarningsMember2021-03-3100013668682021-03-310001366868us-gaap:CommonStockMember2021-04-012021-06-300001366868us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000013668682021-04-012021-06-300001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001366868us-gaap:RetainedEarningsMember2021-04-012021-06-300001366868us-gaap:CommonStockMember2021-06-300001366868us-gaap:AdditionalPaidInCapitalMember2021-06-300001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001366868us-gaap:RetainedEarningsMember2021-06-3000013668682021-06-300001366868us-gaap:CommonStockMember2021-07-012021-09-300001366868us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001366868us-gaap:RetainedEarningsMember2021-07-012021-09-300001366868us-gaap:CommonStockMember2021-09-300001366868us-gaap:AdditionalPaidInCapitalMember2021-09-300001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001366868us-gaap:RetainedEarningsMember2021-09-300001366868us-gaap:CommonStockMember2019-12-310001366868us-gaap:AdditionalPaidInCapitalMember2019-12-310001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001366868us-gaap:RetainedEarningsMember2019-12-3100013668682019-12-310001366868us-gaap:CommonStockMember2020-01-012020-03-310001366868us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100013668682020-01-012020-03-3100013668682019-01-012019-12-310001366868srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-310001366868srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001366868us-gaap:RetainedEarningsMember2020-01-012020-03-310001366868us-gaap:CommonStockMember2020-03-310001366868us-gaap:AdditionalPaidInCapitalMember2020-03-310001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001366868us-gaap:RetainedEarningsMember2020-03-3100013668682020-03-310001366868us-gaap:CommonStockMember2020-04-012020-06-300001366868us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000013668682020-04-012020-06-30xbrli:pure0001366868gsat:ConvertibleEightPointZeroPercentSeniorNotesIssuedTwentyThirteenMember2013-05-310001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001366868us-gaap:RetainedEarningsMember2020-04-012020-06-300001366868us-gaap:CommonStockMember2020-06-300001366868us-gaap:AdditionalPaidInCapitalMember2020-06-300001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001366868us-gaap:RetainedEarningsMember2020-06-3000013668682020-06-300001366868us-gaap:CommonStockMember2020-07-012020-09-300001366868us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001366868us-gaap:RetainedEarningsMember2020-07-012020-09-300001366868us-gaap:CommonStockMember2020-09-300001366868us-gaap:AdditionalPaidInCapitalMember2020-09-300001366868us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001366868us-gaap:RetainedEarningsMember2020-09-3000013668682020-09-300001366868gsat:PaycheckProtectionProgramLoanCARESActMember2020-04-300001366868gsat:ServicesDuplexMember2021-07-012021-09-300001366868gsat:ServicesDuplexMember2020-07-012020-09-300001366868gsat:ServicesDuplexMember2021-01-012021-09-300001366868gsat:ServicesDuplexMember2020-01-012020-09-300001366868gsat:ServicesSPOTMember2021-07-012021-09-300001366868gsat:ServicesSPOTMember2020-07-012020-09-300001366868gsat:ServicesSPOTMember2021-01-012021-09-300001366868gsat:ServicesSPOTMember2020-01-012020-09-300001366868gsat:CommercialloTMember2021-07-012021-09-300001366868gsat:CommercialloTMember2020-07-012020-09-300001366868gsat:CommercialloTMember2021-01-012021-09-300001366868gsat:CommercialloTMember2020-01-012020-09-300001366868gsat:ServicesOtherMember2021-07-012021-09-300001366868gsat:ServicesOtherMember2020-07-012020-09-300001366868gsat:ServicesOtherMember2021-01-012021-09-300001366868gsat:ServicesOtherMember2020-01-012020-09-300001366868gsat:ProductDuplexMember2021-07-012021-09-300001366868gsat:ProductDuplexMember2020-07-012020-09-300001366868gsat:ProductDuplexMember2021-01-012021-09-300001366868gsat:ProductDuplexMember2020-01-012020-09-300001366868gsat:ProductSPOTMember2021-07-012021-09-300001366868gsat:ProductSPOTMember2020-07-012020-09-300001366868gsat:ProductSPOTMember2021-01-012021-09-300001366868gsat:ProductSPOTMember2020-01-012020-09-300001366868gsat:SubscriberEquipmentCommercialloTMember2021-07-012021-09-300001366868gsat:SubscriberEquipmentCommercialloTMember2020-07-012020-09-300001366868gsat:SubscriberEquipmentCommercialloTMember2021-01-012021-09-300001366868gsat:SubscriberEquipmentCommercialloTMember2020-01-012020-09-300001366868gsat:ProductOtherMember2021-07-012021-09-300001366868gsat:ProductOtherMember2020-07-012020-09-300001366868gsat:ProductOtherMember2021-01-012021-09-300001366868gsat:ProductOtherMember2020-01-012020-09-300001366868us-gaap:ServiceMembercountry:US2021-07-012021-09-300001366868us-gaap:ServiceMembercountry:US2020-07-012020-09-300001366868us-gaap:ServiceMembercountry:US2021-01-012021-09-300001366868us-gaap:ServiceMembercountry:US2020-01-012020-09-300001366868us-gaap:ServiceMembercountry:CA2021-07-012021-09-300001366868us-gaap:ServiceMembercountry:CA2020-07-012020-09-300001366868us-gaap:ServiceMembercountry:CA2021-01-012021-09-300001366868us-gaap:ServiceMembercountry:CA2020-01-012020-09-300001366868us-gaap:ServiceMembersrt:EuropeMember2021-07-012021-09-300001366868us-gaap:ServiceMembersrt:EuropeMember2020-07-012020-09-300001366868us-gaap:ServiceMembersrt:EuropeMember2021-01-012021-09-300001366868us-gaap:ServiceMembersrt:EuropeMember2020-01-012020-09-300001366868us-gaap:ServiceMembersrt:LatinAmericaMember2021-07-012021-09-300001366868us-gaap:ServiceMembersrt:LatinAmericaMember2020-07-012020-09-300001366868us-gaap:ServiceMembersrt:LatinAmericaMember2021-01-012021-09-300001366868us-gaap:ServiceMembersrt:LatinAmericaMember2020-01-012020-09-300001366868us-gaap:ServiceMembergsat:OtherCountriesMember2021-07-012021-09-300001366868us-gaap:ServiceMembergsat:OtherCountriesMember2020-07-012020-09-300001366868us-gaap:ServiceMembergsat:OtherCountriesMember2021-01-012021-09-300001366868us-gaap:ServiceMembergsat:OtherCountriesMember2020-01-012020-09-300001366868us-gaap:ProductMembercountry:US2021-07-012021-09-300001366868us-gaap:ProductMembercountry:US2020-07-012020-09-300001366868us-gaap:ProductMembercountry:US2021-01-012021-09-300001366868us-gaap:ProductMembercountry:US2020-01-012020-09-300001366868us-gaap:ProductMembercountry:CA2021-07-012021-09-300001366868us-gaap:ProductMembercountry:CA2020-07-012020-09-300001366868us-gaap:ProductMembercountry:CA2021-01-012021-09-300001366868us-gaap:ProductMembercountry:CA2020-01-012020-09-300001366868srt:EuropeMemberus-gaap:ProductMember2021-07-012021-09-300001366868srt:EuropeMemberus-gaap:ProductMember2020-07-012020-09-300001366868srt:EuropeMemberus-gaap:ProductMember2021-01-012021-09-300001366868srt:EuropeMemberus-gaap:ProductMember2020-01-012020-09-300001366868srt:LatinAmericaMemberus-gaap:ProductMember2021-07-012021-09-300001366868srt:LatinAmericaMemberus-gaap:ProductMember2020-07-012020-09-300001366868srt:LatinAmericaMemberus-gaap:ProductMember2021-01-012021-09-300001366868srt:LatinAmericaMemberus-gaap:ProductMember2020-01-012020-09-300001366868gsat:OtherCountriesMemberus-gaap:ProductMember2021-07-012021-09-300001366868gsat:OtherCountriesMemberus-gaap:ProductMember2020-07-012020-09-300001366868gsat:OtherCountriesMemberus-gaap:ProductMember2021-01-012021-09-300001366868gsat:OtherCountriesMemberus-gaap:ProductMember2020-01-012020-09-300001366868gsat:IGOMember2021-09-300001366868gsat:IGOMember2020-12-310001366868gsat:ProcurementOfGoodsAndPerformingServicesForCustomerMember2021-09-300001366868gsat:ProcurementOfGoodsAndPerformingServicesForCustomerMember2020-12-3100013668682021-10-01us-gaap:LongTermContractWithCustomerMember2021-09-3000013668682021-06-012021-06-3000013668682021-09-012021-09-300001366868gsat:GatewaySitesMember2021-09-300001366868gsat:SpaceComponentMembergsat:FirstandSecondGenerationSatellitesMembergsat:GlobalStarSystemMember2021-09-300001366868gsat:SpaceComponentMembergsat:FirstandSecondGenerationSatellitesMembergsat:GlobalStarSystemMember2020-12-310001366868gsat:SpaceComponentMembergsat:GlobalStarSystemMembergsat:SecondGenerationSatelliteOnGroundSpareMember2021-09-300001366868gsat:SpaceComponentMembergsat:GlobalStarSystemMembergsat:SecondGenerationSatelliteOnGroundSpareMember2020-12-310001366868gsat:GlobalStarSystemMembergsat:GroundComponentMember2021-09-300001366868gsat:GlobalStarSystemMembergsat:GroundComponentMember2020-12-310001366868gsat:SpaceComponentMemberus-gaap:ConstructionInProgressMembergsat:GlobalStarSystemMember2021-09-300001366868gsat:SpaceComponentMemberus-gaap:ConstructionInProgressMembergsat:GlobalStarSystemMember2020-12-310001366868us-gaap:ConstructionInProgressMembergsat:GlobalStarSystemMembergsat:GroundComponentMember2021-09-300001366868us-gaap:ConstructionInProgressMembergsat:GlobalStarSystemMembergsat:GroundComponentMember2020-12-310001366868us-gaap:PropertyPlantAndEquipmentOtherTypesMemberus-gaap:ConstructionInProgressMembergsat:GlobalStarSystemMember2021-09-300001366868us-gaap:PropertyPlantAndEquipmentOtherTypesMemberus-gaap:ConstructionInProgressMembergsat:GlobalStarSystemMember2020-12-310001366868gsat:GlobalStarSystemMember2021-09-300001366868gsat:GlobalStarSystemMember2020-12-310001366868us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-09-300001366868us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2020-12-310001366868us-gaap:EquipmentMember2021-09-300001366868us-gaap:EquipmentMember2020-12-310001366868us-gaap:LandAndBuildingMember2021-09-300001366868us-gaap:LandAndBuildingMember2020-12-310001366868us-gaap:LeaseholdImprovementsMember2021-09-300001366868us-gaap:LeaseholdImprovementsMember2020-12-310001366868gsat:CreditFacilityMember2021-09-300001366868gsat:CreditFacilityMember2020-12-310001366868gsat:SecondLienTermLoanFacilityMember2021-09-300001366868gsat:SecondLienTermLoanFacilityMember2020-12-310001366868gsat:ConvertibleEightPointZeroPercentSeniorNotesIssuedTwentyThirteenMember2021-09-300001366868gsat:ConvertibleEightPointZeroPercentSeniorNotesIssuedTwentyThirteenMember2020-12-310001366868gsat:PaycheckProtectionProgramLoanCARESActMember2021-09-300001366868gsat:PaycheckProtectionProgramLoanCARESActMember2020-12-310001366868srt:MinimumMembergsat:CreditFacilityMember2021-01-012021-09-300001366868srt:MaximumMembergsat:CreditFacilityMember2021-01-012021-09-300001366868gsat:CreditFacilityMember2021-01-012021-09-3000013668682019-12-012021-03-3100013668682019-12-012019-12-310001366868gsat:CreditFacilityMember2021-04-012021-06-300001366868gsat:CreditFacilityMember2021-07-012021-09-300001366868gsat:NoncurrentRestrictedCashMembergsat:CreditFacilityMember2021-09-300001366868gsat:DebtInstrumentPaymentPeriodOneMembergsat:CreditFacilityMember2020-12-310001366868gsat:DebtInstrumentPaymentPeriodTwoMembergsat:CreditFacilityMember2020-12-310001366868gsat:DebtInstrumentPaymentPeriodThreeMembergsat:CreditFacilityMember2020-12-310001366868gsat:DebtInstrumentPaymentPeriodFourMembergsat:CreditFacilityMember2020-12-310001366868gsat:DebtInstrumentPaymentPeriodOneMembergsat:CreditFacilityMember2021-03-012021-03-310001366868gsat:DebtInstrumentPaymentPeriodTwoMembergsat:CreditFacilityMember2021-03-012021-03-310001366868gsat:DebtInstrumentPaymentPeriodThreeMembergsat:CreditFacilityMember2021-03-012021-03-310001366868gsat:DebtInstrumentPaymentPeriodFourMembergsat:CreditFacilityMember2021-03-012021-03-310001366868gsat:CreditFacilityMember2021-03-012021-03-310001366868gsat:DebtInstrumentPaymentPeriodOneMembergsat:CreditFacilityMember2021-04-012021-04-300001366868gsat:DebtInstrumentPaymentPeriodTwoMembergsat:CreditFacilityMember2021-04-012021-04-300001366868gsat:DebtInstrumentPaymentPeriodThreeMembergsat:CreditFacilityMember2021-04-012021-04-300001366868gsat:DebtInstrumentPaymentPeriodFourMembergsat:CreditFacilityMember2021-04-012021-04-300001366868gsat:CreditFacilityMember2021-04-012021-04-300001366868gsat:DebtInstrumentPaymentPeriodOneMembergsat:CreditFacilityMember2021-06-012021-06-300001366868gsat:DebtInstrumentPaymentPeriodTwoMembergsat:CreditFacilityMember2021-06-012021-06-300001366868gsat:DebtInstrumentPaymentPeriodThreeMembergsat:CreditFacilityMember2021-06-012021-06-300001366868gsat:DebtInstrumentPaymentPeriodFourMembergsat:CreditFacilityMember2021-06-012021-06-300001366868gsat:CreditFacilityMember2021-06-012021-06-300001366868gsat:DebtInstrumentPaymentPeriodOneMembergsat:CreditFacilityMember2021-09-012021-09-300001366868gsat:DebtInstrumentPaymentPeriodTwoMembergsat:CreditFacilityMember2021-09-012021-09-300001366868gsat:DebtInstrumentPaymentPeriodThreeMembergsat:CreditFacilityMember2021-09-012021-09-300001366868gsat:DebtInstrumentPaymentPeriodFourMembergsat:CreditFacilityMember2021-09-012021-09-300001366868gsat:CreditFacilityMember2021-09-012021-09-300001366868gsat:DebtInstrumentPaymentPeriodOneMembergsat:CreditFacilityMember2021-09-300001366868gsat:DebtInstrumentPaymentPeriodTwoMembergsat:CreditFacilityMember2021-09-300001366868gsat:DebtInstrumentPaymentPeriodThreeMembergsat:CreditFacilityMember2021-09-300001366868gsat:DebtInstrumentPaymentPeriodFourMembergsat:CreditFacilityMember2021-09-300001366868gsat:SecondLienTermLoanFacilityMembergsat:ThermoCompanyMember2019-11-300001366868us-gaap:SubordinatedDebtMembergsat:ThermoCapitalPartnersLlcMember2021-09-300001366868us-gaap:SubordinatedDebtMembergsat:ThermoCapitalPartnersLlcMember2020-02-192020-02-190001366868us-gaap:SubordinatedDebtMembergsat:ThermoCapitalPartnersLlcMember2020-02-1900013668682013-05-310001366868gsat:ConvertibleEightPointZeroPercentSeniorNotesIssuedTwentyThirteenMember2013-05-012021-09-300001366868gsat:PaycheckProtectionProgramLoanCARESActMember2021-06-012021-06-300001366868gsat:CompoundEmbeddedDerivativeWithTheSecondLienFacilityAgreementMember2021-09-300001366868gsat:CompoundEmbeddedDerivativeWithTheSecondLienFacilityAgreementMember2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMember2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMember2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMember2021-07-012021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMember2020-07-012020-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMember2021-01-012021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMember2020-01-012020-09-300001366868gsat:CompoundEmbeddedDerivativeWithThermoLoanAgreementMember2021-07-012021-09-300001366868gsat:CompoundEmbeddedDerivativeWithThermoLoanAgreementMember2020-07-012020-09-300001366868gsat:CompoundEmbeddedDerivativeWithThermoLoanAgreementMember2021-01-012021-09-300001366868gsat:CompoundEmbeddedDerivativeWithThermoLoanAgreementMember2020-01-012020-09-300001366868gsat:SecondLienTermLoanFacilityMember2021-07-012021-09-300001366868gsat:SecondLienTermLoanFacilityMember2020-07-012020-09-300001366868gsat:SecondLienTermLoanFacilityMember2021-01-012021-09-300001366868gsat:SecondLienTermLoanFacilityMember2020-01-012020-09-300001366868gsat:SecondLienTermLoanFacilityMemberus-gaap:FairValueInputsLevel1Member2021-09-300001366868gsat:SecondLienTermLoanFacilityMemberus-gaap:FairValueInputsLevel2Member2021-09-300001366868gsat:SecondLienTermLoanFacilityMemberus-gaap:FairValueInputsLevel3Member2021-09-300001366868gsat:SecondLienTermLoanFacilityMember2021-09-300001366868us-gaap:FairValueInputsLevel1Member2021-09-300001366868us-gaap:FairValueInputsLevel2Member2021-09-300001366868us-gaap:FairValueInputsLevel3Member2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:FairValueInputsLevel1Member2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:FairValueInputsLevel2Member2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:FairValueInputsLevel3Member2021-09-300001366868gsat:SecondLienTermLoanFacilityMemberus-gaap:FairValueInputsLevel1Member2020-12-310001366868gsat:SecondLienTermLoanFacilityMemberus-gaap:FairValueInputsLevel2Member2020-12-310001366868gsat:SecondLienTermLoanFacilityMemberus-gaap:FairValueInputsLevel3Member2020-12-310001366868gsat:SecondLienTermLoanFacilityMember2020-12-310001366868us-gaap:FairValueInputsLevel1Member2020-12-310001366868us-gaap:FairValueInputsLevel2Member2020-12-310001366868us-gaap:FairValueInputsLevel3Member2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:FairValueInputsLevel1Member2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:FairValueInputsLevel2Member2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:FairValueInputsLevel3Member2020-12-310001366868srt:MinimumMembergsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputPriceVolatilityMember2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMembersrt:MaximumMemberus-gaap:MeasurementInputPriceVolatilityMember2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputExercisePriceMember2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputDiscountRateMember2021-09-300001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputSharePriceMember2021-09-300001366868srt:MinimumMembergsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputPriceVolatilityMember2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMembersrt:MaximumMemberus-gaap:MeasurementInputPriceVolatilityMember2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputExercisePriceMember2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputDiscountRateMember2020-12-310001366868gsat:CompoundEmbeddedConversionOptionWithEightPointZeroPercentNotesIssuedInTwentyThirteenMemberus-gaap:MeasurementInputSharePriceMember2020-12-310001366868us-gaap:MeasurementInputDiscountRateMembergsat:CompoundEmbeddedDerivativeWithSecondLienTermLoanFacilityMember2021-09-300001366868us-gaap:MeasurementInputDiscountRateMembergsat:CompoundEmbeddedDerivativeWithSecondLienTermLoanFacilityMember2020-12-3100013668682020-01-012020-12-310001366868gsat:ConvertibleEightPointZeroPercentSeniorNotesIssuedTwentyThirteenMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-300001366868gsat:ConvertibleEightPointZeroPercentSeniorNotesIssuedTwentyThirteenMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-300001366868gsat:ConvertibleEightPointZeroPercentSeniorNotesIssuedTwentyThirteenMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001366868gsat:ConvertibleEightPointZeroPercentSeniorNotesIssuedTwentyThirteenMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001366868gsat:ThermoCapitalPartnersLlcMember2021-09-300001366868gsat:ThermoCapitalPartnersLlcMember2020-12-310001366868gsat:ThermoCapitalPartnersLlcMember2019-02-280001366868gsat:ThermoCapitalPartnersLlcMember2021-07-012021-09-300001366868gsat:ThermoCapitalPartnersLlcMember2020-07-012020-09-300001366868gsat:ThermoCapitalPartnersLlcMember2021-01-012021-09-300001366868gsat:ThermoCapitalPartnersLlcMember2020-01-012020-09-300001366868gsat:SecondLienTermLoanFacilityMembergsat:ThermoCapitalPartnersLlcMember2019-11-300001366868gsat:SecondLienTermLoanFacilityMembergsat:ThermoCapitalPartnersLlcMember2019-11-012021-09-300001366868gsat:SecondLienTermLoanFacilityMembergsat:ThermoCapitalPartnersLlcMember2021-01-012021-09-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
(Mark One) 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2021
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                  to                

Commission file number 001-33117 
GLOBALSTAR, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 41-2116508
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)  
 
1351 Holiday Square Blvd.
Covington, Louisiana 70433
(Address of Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: (985) 335-1500
Securities registered pursuant to section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common Stock, par value $0.0001 per shareGSATNYSE American
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x No ☐
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  x  No ☐
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
(Do not check if a smaller reporting company) Emerging growth company
 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No x
 
As of October 29, 2021, 1,793 million shares of voting common stock were outstanding, and no shares of nonvoting common stock were authorized or outstanding. Unless the context otherwise requires, references to common stock in this Report mean the Registrant’s voting common stock.



FORM 10-Q

GLOBALSTAR, INC.
TABLE OF CONTENTS
 
 Page
PART I - FINANCIAL INFORMATION
   
Item 1.
   
Item 2.
   
Item 3.
   
Item 4.
   
PART II - OTHER INFORMATION
   
Item 1.
Item 1A. 
   
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
   
 




PART I - FINANCIAL INFORMATION
 
Item 1. Financial Statements.
 
GLOBALSTAR, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share data)
(Unaudited) 
 Three Months EndedNine Months Ended
September 30,
2021
September 30,
2020
September 30,
2021
September 30,
2020
Revenue:  
Service revenue$27,848 $28,385 $76,551 $84,410 
Subscriber equipment sales4,766 4,372 13,271 10,905 
Total revenue32,614 32,757 89,822 95,315 
Operating expenses:  
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)9,648 8,580 27,848 25,955 
Cost of subscriber equipment sales4,099 4,032 9,856 9,615 
Cost of subscriber equipment sales - reduction in the value of inventory71  853  
Marketing, general and administrative9,196 10,063 28,974 31,407 
Reduction in value of long-lived assets242  242  
Depreciation, amortization and accretion24,072 24,717 72,031 72,437 
Total operating expenses47,328 47,392 139,804 139,414 
Loss from operations(14,714)(14,635)(49,982)(44,099)
Other (expense) income:  
(Loss) gain on extinguishment of debt(829) 1,835  
Interest income and expense, net of amounts capitalized(11,406)(11,398)(33,758)(36,916)
Derivative gain (loss)229 1,225 (2,210)1,564 
Foreign currency (loss) gain(4,752)266 (4,642)(7,373)
Other473 (346)407 (912)
Total other (expense) income(16,285)(10,253)(38,368)(43,637)
Loss before income taxes(30,999)(24,888)(88,350)(87,736)
Income tax (benefit) expense(114)58 317 169 
Net loss$(30,885)$(24,946)$(88,667)$(87,905)
Other comprehensive income (loss):
Foreign currency translation adjustments3,185 (91)3,269 3,844 
Comprehensive loss$(27,700)$(25,037)$(85,398)$(84,061)
Net loss per common share:  
Basic$(0.02)$(0.01)$(0.05)$(0.05)
Diluted(0.02)(0.01)(0.05)(0.05)
Weighted-average shares outstanding:  
Basic1,793,144 1,670,315 1,755,362 1,632,554 
Diluted1,793,144 1,670,315 1,755,362 1,632,554 
 
See accompanying notes to unaudited interim condensed consolidated financial statements. 
1


GLOBALSTAR, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and share data)  
(Unaudited) 
 September 30, 2021December 31, 2020
ASSETS
Current assets:  
Cash and cash equivalents$11,306 $13,330 
Restricted cash 3,625 
Accounts receivable, net of allowance for credit losses of $3,276 and $4,352, respectively
35,054 22,147 
Inventory12,545 13,736 
Prepaid expenses and other current assets16,092 15,649 
Total current assets74,997 68,487 
Property and equipment, net682,587 715,909 
Restricted cash51,068 51,068 
Operating lease right of use assets, net32,642 14,400 
Intangible and other assets, net of accumulated amortization of $10,853 and $9,998, respectively
42,821 38,229 
Total assets$884,115 $888,093 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Current portion of long-term debt$ $58,824 
Accounts payable9,829 2,917 
Accrued expenses31,849 25,916 
Payables to affiliates271 581 
Recoupment of advance payments12,500  
Deferred revenue26,546 25,977 
Total current liabilities80,995 114,215 
Long-term debt, less current portion286,881 326,586 
Operating lease liabilities29,756 13,726 
Deferred revenue, net91,055 3,280 
Other non-current liabilities10,303 7,221 
Total non-current liabilities417,995 350,813 
Commitments and contingencies
Stockholders’ equity:  
Preferred Stock of $0.0001 par value; 100,000,000 shares authorized and none issued and outstanding at September 30, 2021 and December 31, 2020, respectively
  
Series A Preferred Convertible Stock of $0.0001 par value; one share authorized and none issued and outstanding at September 30, 2021 and December 31, 2020, respectively
  
Voting Common Stock of $0.0001 par value; 2,150,000,000 and 1,900,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively; 1,793,306,938 and 1,674,668,617 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
179 167 
Nonvoting Common Stock of $0.0001 par value; no shares authorized and none issued and outstanding at September 30, 2021 and December 31, 2020, respectively
  
Additional paid-in capital2,144,012 2,096,566 
Accumulated other comprehensive income (loss)325 (2,944)
Retained deficit(1,759,391)(1,670,724)
Total stockholders’ equity385,125 423,065 
Total liabilities and stockholders’ equity$884,115 $888,093 
 See accompanying notes to unaudited interim condensed consolidated financial statements.  
2


GLOBALSTAR, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands)  
(Unaudited) 
 Common
Shares
Common
Stock
Amount
Additional
Paid-In
Capital
Accumulated Other Comprehensive Income (Loss)Retained
Deficit
Total
Balances – January 1, 20211,674,669 $167 $2,096,566 $(2,944)$(1,670,724)$423,065 
Net issuance of restricted stock awards and stock for employee stock options and recognition of stock-based compensation1,998 — 1,932 — — 1,932 
Contribution of services— — 47 — — 47 
Recognition of stock-based compensation of employee stock purchase plan— — 79 — — 79 
Issuance of stock for warrant exercises115,036 12 43,666 — — 43,678 
Other comprehensive income— — — 3,242 — 3,242 
Net loss— — — — (36,333)(36,333)
Balances – March 31, 20211,791,703 $179 $2,142,290 $298 $(1,707,057)$435,710 
Net issuance of restricted stock awards and stock for employee stock options and recognition of stock-based compensation173 — 576 — — 576 
Contribution of services— — 47 — — 47 
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation1,187 — 406 — — 406 
Other comprehensive loss— — — (3,158)— (3,158)
Net loss— — — — (21,449)(21,449)
Balances – June 30, 20211,793,063 $179 $2,143,319 $(2,860)$(1,728,506)$412,132 
Net issuance of restricted stock awards and stock for employee stock options and recognition of stock-based compensation244 — 544 — — 544 
Contribution of services— — 47 — — 47 
Recognition of stock-based compensation of employee stock purchase plan— — 102 — — 102 
Other comprehensive income— — — 3,185 — 3,185 
Net loss— — — — (30,885)(30,885)
Balances – September 30, 20211,793,307 $179 $2,144,012 $325 $(1,759,391)$385,125 

3


Common
Shares
Common
Stock
Amount
Additional
Paid-In
Capital
Accumulated Other Comprehensive LossRetained
Deficit
Total
Balances – January 1, 20201,464,544 $146 $1,970,047 $(3,449)$(1,559,401)$407,343 
Net issuance of restricted stock awards and recognition of stock-based compensation3,020 1 1,729 — — 1,730 
Contribution of services— — 91 — — 91 
Recognition of stock-based compensation of employee stock purchase plan— — 102 — — 102 
Common stock issued in connection with conversion of Loan Agreement with Thermo200,140 20 120,441 — — 120,461 
Impact of adoption of Credit Loss Standard— — — — (1,684)(1,684)
Other comprehensive income— — — 5,303 — 5,303 
Net loss— — — — (38,223)(38,223)
Balances – March 31, 20201,667,704 $167 $2,092,410 $1,854 $(1,599,308)$495,123 
Net issuance of restricted stock awards and recognition of stock-based compensation1,354 — 922 — — 922 
Contribution of services— — 47 — — 47 
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation1,188 — 482 — — 482 
Common stock issued in connection with conversion of 2013 8.00% Notes
44 — 16 — — 16 
Other comprehensive loss— — — (1,368)— (1,368)
Net loss— — — (24,736)(24,736)
Balances – June 30, 20201,670,290 $167 $2,093,877 $486 $(1,624,044)$470,486 
Net issuance of restricted stock awards and recognition of stock-based compensation14 — 945 945 
Contribution of services— — 47 — — 47 
Recognition of stock-based compensation of employee stock purchase plan— — 99 99 
Common stock issued in connection with conversion of 2013 8.00% Notes
51 — 15 — — 15 
Other comprehensive loss— — — (91)— (91)
Net loss— — — — (24,946)(24,946)
Balances – September 30, 20201,670,355 $167 $2,094,983 $395 $(1,648,990)$446,555 

See accompanying notes to unaudited interim condensed consolidated financial statements.
4


GLOBALSTAR, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 Nine Months Ended
 September 30,
2021
September 30,
2020
Cash flows provided by operating activities:  
Net loss$(88,667)$(87,905)
Adjustments to reconcile net loss to net cash provided by operating activities:  
Depreciation, amortization and accretion72,031 72,437 
Change in fair value of derivatives2,210 (1,564)
Stock-based compensation expense3,044 3,925 
Amortization of deferred financing costs2,341 3,173 
Provision for credit losses1,029 1,496 
Reduction in value of long-lived assets and inventory1,095  
Noncash interest and accretion expense26,537 25,694 
Gain on extinguishment of debt(1,835) 
Unrealized foreign currency loss4,639 7,850 
Noncash reversal of tariff accrual(912) 
Other, net(625)(104)
Changes in operating assets and liabilities:  
Accounts receivable(7,013)(3,185)
Inventory276 880 
Prepaid expenses and other current assets(1,595)3,161 
Other assets(1,883)(514)
Accounts payable, accrued expenses and recoupment of advance payments15,197 261 
Payables to affiliates(309)210 
Other non-current liabilities(259)(173)
Deferred revenue81,865 (1,955)
Net cash provided by operating activities107,166 23,687 
Cash flows used in investing activities:  
Network upgrades (including capitalized interest)(24,766)(4,307)
Property and equipment additions(4,209)(3,555)
Sale of property and equipment350  
Purchase of intangible assets(1,408)(1,433)
Net cash used in investing activities(30,033)(9,295)
Cash flows (used in) provided by financing activities:  
Principal payments of the First Lien Facility Agreement(126,664)(3,373)
Proceeds from exercise of warrants43,678  
Payments for debt issuance costs(133)(1,074)
Proceeds from PPP Loan 4,973 
Proceeds from issuance of common stock and exercise of options394 346 
Net cash (used in) provided by financing activities(82,725)872 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(57)(56)
Net (decrease) increase in cash, cash equivalents and restricted cash(5,649)15,208 
Cash, cash equivalents and restricted cash, beginning of period68,023 59,128 
Cash, cash equivalents and restricted cash, end of period$62,374 $74,336 
As of:
September 30,
2021
December 31,
2020
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$11,306 $13,330 
Restricted cash (See Note 5 for further discussion on restrictions)
51,068 54,693 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$62,374 $68,023 
 Nine Months Ended
 September 30,
2021
September 30,
2020
Supplemental disclosure of cash flow information:  
Cash paid for interest$4,017 $6,011 
Supplemental disclosure of non-cash financing and investing activities:  
Increase in capitalized accrued interest for network upgrades$1,703 $1,176 
Capitalized accretion of debt discount and amortization of prepaid financing costs379 325 
Forgiveness of principal and interest of Paycheck Protection Program loan5,030  
Principal amount of Loan Agreement with Thermo converted into common stock 137,366 
Reduction of debt discount and issuance costs due to conversion of Loan Agreement with Thermo 17,963 
Fair value of common stock issued upon conversion of Loan Agreement with Thermo 84,059 
Reduction in derivative liability due to conversion of Loan Agreement with Thermo 1,058 
See accompanying notes to unaudited interim condensed consolidated financial statements.
5


GLOBALSTAR, INC.  
NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
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. 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. 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 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, 2020, as filed with the SEC on March 4, 2021 (the “2020 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. 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, 2021 are not necessarily indicative of the results that may be expected for the full year or any future period.

COVID-19-Risks and Uncertainties

There are a number of uncertainties that could impact the Company's future results of operations, including the effectiveness of COVID-19 mitigation measures; the duration of the pandemic; global economic conditions; changes to the Company's operations; changes in consumer confidence, behaviors and spending; work from home trends; and the sustainability of supply chains. The Company has pursued various opportunities to mitigate the risks and uncertainties resulting from COVID-19, including, but not limited to, the receipt of a $5.0 million loan under the Paycheck Protection Program ("PPP") and the evaluation of its eligibility for the Employee Retention Tax Credit program and relief under the American Rescue Plan Act. In June 2021, the Small Business Administration ("SBA") fully approved the Company's request for forgiveness of all amounts outstanding, including accrued interest, under its PPP loan.

Recently Issued Accounting Pronouncements 

In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06: Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Among other things, ASU No. 2020-06 simplifies the guidance in ASC 470 by eliminating two of the three models that require separating embedded conversion features from convertible instruments. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2021. Early adoption is permitted as of the beginning of any interim or annual reporting period, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For existing debt instruments, the Company does not expect this standard will have a material impact to its condensed consolidated financial statements or related disclosures.

6


Recently Adopted Accounting Pronouncements

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 as outlined in ASU No. 2018-14. This ASU, which became effective for public entities for annual periods beginning after December 15, 2020, adds certain narrative disclosures and removes other disclosures related to defined benefit plans. The Company adopted this standard when it became effective on January 1, 2021. The adoption of this standard did not have a material effect on the Company's disclosures.

In December 2019, the FASB issued ASU No. 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU No. 2019-12 amends the accounting treatment for income taxes by simplifying and clarifying certain aspects of the existing guidance. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2020. The Company adopted this standard when it became effective on January 1, 2021. The adoption of this standard did not have a material effect on the Company's financial statements or related disclosures.

2. REVENUE

Disaggregation of Revenue

The following table discloses revenue disaggregated by type of product and service (amounts in thousands):
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Service revenue:
Duplex$9,632 $9,956 $23,530 $26,175 
SPOT11,873 11,396 33,996 35,098 
Commercial IoT4,458 4,420 13,443 13,028 
Engineering and other1,885 2,613 5,582 10,109 
Total service revenue27,848 28,385 76,551 84,410 
Subscriber equipment sales:
Duplex$265 $510 $889 $1,539 
SPOT2,619 2,602 6,764 5,704 
Commercial IoT1,841 1,256 5,452 3,608 
Other41 4 166 54 
Total subscriber equipment sales4,766 4,372 13,271 10,905 
Total revenue$32,614 $32,757 $89,822 $95,315 

7


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 EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Service revenue:
United States$19,677 $19,958 $54,348 $62,663 
Canada5,236 5,522 13,442 13,885 
Europe2,039 2,057 5,607 5,209 
Central and South America996 623 2,592 2,002 
Others(100)225 562 651 
Total service revenue27,848 28,385 76,551 84,410 
Subscriber equipment sales:
United States$3,130 $2,657 $7,740 $5,821 
Canada563 906 2,430 2,848 
Europe505 326 1,511 1,196 
Central and South America546 465 1,538 1,037 
Others22 18 52 3 
Total subscriber equipment sales4,766 4,372 13,271 10,905 
Total revenue$32,614 $32,757 $89,822 $95,315 

Accounts Receivable

The Company has agreements with certain customers whereby the parties net settle outstanding payables and receivables between the respective entities on a periodic basis. As of September 30, 2021 and December 31, 2020, $2.1 million and $1.9 million, respectively, related to these agreements was included in accounts receivable on the Company’s condensed consolidated balance sheet. The Company also has agreements whereby it acts as an agent to procure goods and perform services on behalf of the customer. As of September 30, 2021 and December 31, 2020, the Company recorded $12.1 million and $4.7 million, respectively, in accounts receivable related to these arrangements.

During 2020, one of the Company's customers filed for Chapter 11 of the United States Bankruptcy Code resulting in the Company reserving all open receivables due from the customer. This customer's plan of reorganization was confirmed by the bankruptcy court and the order was issued in January 2021. During 2021, the Company received payments from this customer for previously written off balances totaling $0.5 million.

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 from whom it has previously received consideration. The amount of revenue recognized during the nine months ended September 30, 2021 and 2020 from performance obligations included in the contract liability balance at the beginning of each of the periods was $23.8 million and $27.5 million, respectively.

In general, the duration of the Company’s subscriber service contracts is one year or less. As of September 30, 2021, the Company expects to recognize $26.5 million, or approximately 23%, of its remaining performance obligations during the next twelve months.

In June and September 2021, the Company received two advance payments of $37.5 million each from a customer pursuant to an agreement related to the Terms Agreement described in the 2020 Annual Report. The Company expects $62.5 million of these advance payments to be repaid from services provided by the Company under the Terms Agreement; therefore, the Company has recorded this amount as long-term deferred revenue on its condensed consolidated balance sheet. The remaining $12.5 million of these advance payments is subject to a recoupment provision in the Terms Agreement; therefore, the Company has recorded this amount as a current liability since it expects this portion of the advance payments to be repaid over the next 12
8


months. The Company has also recorded $27.8 million as long-term deferred revenue related to additional advance payments in connection with ongoing network upgrades. The total amount of deferred revenue associated with this customer is reflected net of contract assets of $1.2 million on its condensed consolidated balance sheet as of September 30, 2021.

3. LEASES

The following tables disclose the components of the Company’s finance and operating leases (amounts in thousands):
As of:As of:
September 30, 2021December 31, 2020
Operating leases:
Right-of-use asset, net$32,642 $14,400 
Short-term lease liability (recorded in accrued expenses)3,230 1,330 
Long-term lease liability29,756 13,726 
Total operating lease liabilities$32,986 $15,056 
Finance leases:
Right-of-use asset, net (recorded in intangible and other current assets, net)$9 $19 
Short-term lease liability (recorded in accrued expenses)6 11 
Long-term lease liability (recorded in non-current liabilities)4 9 
Total finance lease liabilities$10 $20 

In connection with the Company's gateway expansion project related to the Terms Agreement described in the 2020 Annual Report, the Company has entered into various operating leases, predominately for new gateway sites, totaling $19.5 million during 2021. The tables in this footnote reflect the relevant terms of these new leases.

Lease Cost

The components of lease cost are reflected in the table below (amounts in thousands):
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Operating lease cost:
Amortization of right-of-use assets$661 $473 $1,815 $1,395 
Interest on lease liabilities545 328 1,256 1,003 
Finance lease cost:
Amortization of right-of-use assets1 17 9 60 
Interest on lease liabilities1 1 1 4 
Short-term lease cost38 28 117 53 
Total lease cost$1,246 $847 $3,198 $2,515 


9


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:As of:
September 30, 2021December 31, 2020
Weighted-average lease term
Finance leases1.8 years1.8 years
Operating Leases10.8 years8.3 years
Weighted-average discount rate
Finance leases6.9 %7.2 %
Operating leases8.4 %8.4 %

Supplemental Cash Flow Information

The below table discloses supplemental cash flow information for finance and operating leases (in thousands):
Nine Months Ended
September 30, 2021September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$3,420 $2,283 
Operating cash flows for finance leases1 4 
Financing cash flows for finance leases9 53 

Maturity Analysis

The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of September 30, 2021 (amounts in thousands):
Operating LeasesFinance Leases
2021 (remaining)$2,496 $2 
20225,220 6 
20235,140 3 
20245,019  
20255,057  
Thereafter30,995  
Total lease payments$53,927 $11 
Imputed interest(20,941)(1)
Discounted lease liability$32,986 $10 

As of September 30, 2021, the Company executed an additional operating lease for a new gateway location. This lease had not yet commenced as of September 30, 2021 since the lessor is continuing to ready the site for use. Accordingly, this lease is not included on the balance sheet as of September 30, 2021 or in the maturity table above. The Company is in the process of evaluating this lease obligation and expects it to be approximately $2.5 million.
10


4. PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands): 
September 30,
2021
December 31,
2020
Globalstar System:  
Space component  
First and second-generation satellites in service$1,195,509 $1,195,509 
Second-generation satellite, on-ground spare32,443 32,443 
Ground component279,984 272,492 
Construction in progress:  
Space component9,426 398 
Ground component34,047 19,327 
Other3,535 2,900 
Total Globalstar System1,554,944