Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 26, 2018 | |
Document and Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | GSAT | |
Entity Registrant Name | Globalstar, Inc. | |
Entity Central Index Key | 1,366,868 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Voting Common Stock | ||
Document and Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,264,000,000 | |
Nonvoting Common Stock | ||
Document and Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Revenue | $ 33,726 | $ 28,123 | $ 62,475 | $ 52,775 |
Operating expenses: | ||||
Marketing, general and administrative | 15,944 | 9,473 | 27,219 | 18,891 |
Revision to contract termination charge | (20,478) | 0 | (20,478) | 0 |
Depreciation, amortization and accretion | 22,616 | 19,275 | 41,847 | 38,569 |
Total operating expenses | 31,778 | 40,562 | 73,485 | 80,344 |
Operating income (loss) | 1,948 | (12,439) | (11,010) | (27,569) |
Other income (expense): | ||||
Gain on equity issuance | 0 | 1,964 | 0 | 2,670 |
Interest income and expense, net of amounts capitalized | (10,305) | (8,850) | (17,658) | (17,678) |
Derivative gain (loss) | (2,059) | (77,130) | 106,885 | (73,907) |
Gain on legal settlement | 6,779 | 0 | 6,779 | 0 |
Other | (3,351) | (2,173) | (4,013) | (2,269) |
Total other income (expense) | (8,936) | (86,189) | 91,993 | (91,184) |
Income (loss) before income taxes | (6,988) | (98,628) | 80,983 | (118,753) |
Income tax expense | 24 | 106 | 65 | 142 |
Net income (loss) | (7,012) | (98,734) | 80,918 | (118,895) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 2,630 | (45) | 2,300 | (865) |
Total comprehensive income (loss) | $ (4,382) | $ (98,779) | $ 83,218 | $ (119,760) |
Net income (loss) per common share: | ||||
Basic (USD per share) | $ (0.01) | $ (0.09) | $ 0.06 | $ (0.11) |
Diluted (USD per share) | $ (0.01) | $ (0.09) | $ 0.06 | $ (0.11) |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 1,263,372 | 1,128,985 | 1,262,857 | 1,121,518 |
Diluted (in shares) | 1,263,372 | 1,128,985 | 1,442,693 | 1,121,518 |
Services | ||||
Revenue: | ||||
Revenue | $ 27,995 | $ 24,301 | $ 54,005 | $ 45,782 |
Operating expenses: | ||||
Cost of goods and services | 9,526 | 9,036 | 18,555 | 18,010 |
Subscriber equipment sales | ||||
Revenue: | ||||
Revenue | 5,731 | 3,822 | 8,470 | 6,993 |
Operating expenses: | ||||
Cost of goods and services | $ 4,170 | $ 2,778 | $ 6,342 | $ 4,874 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 12,806 | $ 41,644 |
Restricted cash | 52,692 | 63,635 |
Accounts receivable, net of allowance of $3,537 and $3,610, respectively | 19,886 | 17,113 |
Inventory | 7,742 | 7,273 |
Prepaid expenses and other current assets | 8,879 | 6,745 |
Total current assets | 102,005 | 136,410 |
Property and equipment, net | 935,036 | 971,119 |
Intangible and other assets, net of accumulated amortization of $7,540 and $7,314, respectively | 31,395 | 21,736 |
Total assets | 1,068,436 | 1,129,265 |
Current liabilities: | ||
Current portion of long-term debt | 87,732 | 79,215 |
Accounts payable | 6,988 | 6,048 |
Accrued contract termination charge | 0 | 21,002 |
Accrued expenses | 22,890 | 20,754 |
Derivative liabilities | 939 | 1,326 |
Payables to affiliates | 286 | 225 |
Deferred revenue | 33,047 | 31,747 |
Total current liabilities | 151,882 | 160,317 |
Long-term debt, less current portion | 400,727 | 434,651 |
Employee benefit obligations | 4,458 | 4,389 |
Derivative liabilities | 120,161 | 226,659 |
Deferred revenue | 5,777 | 6,052 |
Other non-current liabilities | 4,088 | 5,973 |
Total non-current liabilities | 535,211 | 677,724 |
Contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred Stock | 0 | 0 |
Additional paid-in capital | 1,873,147 | 1,869,339 |
Accumulated other comprehensive loss | (4,639) | (6,939) |
Retained deficit | (1,487,291) | (1,571,302) |
Total stockholders’ equity | 381,343 | 291,224 |
Total liabilities and stockholders’ equity | 1,068,436 | 1,129,265 |
Series A preferred stock | ||
Stockholders’ equity: | ||
Preferred Stock | 0 | 0 |
Common stock | ||
Stockholders’ equity: | ||
Common Stock | 126 | 126 |
Nonvoting Common Stock | ||
Stockholders’ equity: | ||
Common Stock | $ 0 | $ 0 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance | $ 3,537 | $ 3,610 |
Accumulated amortization | $ 7,540 | $ 7,314 |
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 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 |
Common stock | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 1,264,104,858 | 1,261,949,123 |
Common stock, shares outstanding (in shares) | 1,264,104,858 | 1,261,949,123 |
Nonvoting Common Stock | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ 80,918 | $ (118,895) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion | 41,847 | 38,569 |
Change in fair value of derivative assets and liabilities | (106,885) | 73,907 |
Stock-based compensation expense | 2,776 | 2,488 |
Amortization of deferred financing costs | 3,852 | 4,158 |
Provision for bad debts | 771 | 808 |
Noncash interest and accretion expense | 5,866 | 5,688 |
Change in fair value related to equity issuance | 0 | (2,670) |
Revision to contract termination charge | (20,478) | 0 |
Unrealized foreign currency loss | 3,879 | 1,571 |
Other, net | 195 | 660 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,652) | (823) |
Inventory | (624) | (622) |
Prepaid expenses and other current assets | (2,368) | (990) |
Other assets | (3,765) | (792) |
Accounts payable and accrued expenses | 4,288 | 529 |
Payables to affiliates | 61 | (5) |
Other non-current liabilities | (855) | 24 |
Deferred revenue | 1,979 | 2,651 |
Net cash provided by operating activities | 7,805 | 6,256 |
Cash flows used in investing activities: | ||
Second-generation network costs (including interest) | (4,277) | (6,530) |
Property and equipment additions | (3,221) | (2,116) |
Purchase of intangible assets | (1,401) | (2,044) |
Net cash used in investing activities | (8,899) | (10,690) |
Cash flows provided by (used in) financing activities: | ||
Principal payments of the Facility Agreement | (38,933) | (21,695) |
Proceeds from Thermo Common Stock Purchase Agreement | 0 | 33,000 |
Payment of debt restructuring fee | 0 | (20,795) |
Payment of debt amendment fee | 0 | (255) |
Proceeds from issuance of stock to Terrapin | 0 | 12,000 |
Proceeds from issuance of common stock and exercise of options and warrants | 319 | 635 |
Net cash provided by (used in) financing activities | (38,614) | 2,890 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (73) | 84 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (39,781) | (1,460) |
Cash, cash equivalents and restricted cash, beginning of period | 105,279 | 48,213 |
Cash, cash equivalents and restricted cash, end of period | 65,498 | 46,753 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 105,279 | 48,213 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 12,070 | 11,659 |
Supplemental disclosure of non-cash financing and investing activities: | ||
Increase in capitalized accrued interest for second-generation network costs | 1,954 | 2,003 |
Capitalized accretion of debt discount and amortization of prepaid financing costs | 1,854 | 2,510 |
Issuance of common stock for legal settlement | $ 0 | $ 453 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
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 Capital Partners LLC, through its affiliates (collectively, “Thermo”), is the principal owner and largest stockholder of Globalstar. The Company’s Chairman and Chief Executive Officer 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, 2017 , as filed with the SEC on February 22, 2018 (the “ 2017 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, and condensed consolidated statements of cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the full year or any future period. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) No. 2016-02, Leases . The main difference between the provisions of ASU No. 2016-02 and previous U.S. GAAP is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. ASU No. 2016-02 retains a distinction between finance leases and operating leases, and the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right-of-use assets and lease liabilities. The accounting applied by a lessor is largely unchanged from that applied under previous U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which provides for the election of transition methods between the modified retrospective method and the optional transition relief method. The modified retrospective method is applied to all prior reporting periods presented with a cumulative-effect adjustment recorded in the earliest comparative period while the optional transition relief method is applied beginning in the period of adoption with a cumulative-effect adjustment recorded in the first quarter of 2019. This ASU is effective for public business entities in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company has an internal project team that is currently evaluating the impact this standard will have on its financial statements, accounting systems and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments . ASU No. 2016-13 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 March 2017, the FASB issued ASU No. 2017-08: Receivables—Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities . This ASU amends current US GAAP to shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. This standard will replace today's yield-to-maturity approach, which generally requires amortization of premium over the life of the instrument. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2018. 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. 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. Early adoption is permitted. Companies may apply the guidance in the period of adoption or retrospectively to each period in which the income tax effects of the Tax Act related to items in accumulated other comprehensive income are recognized. The Company is currently evaluating the impact this standard will have on its financial statements and 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. Early adoption is permitted as of the beginning of any interim or annual reporting period. When adopted, the new guidance should be applied to all new grants and other transition provisions are included in the guidance to simplify this adoption for most companies. The Company does not expect it to have a material effect on the Company's financial statements and related disclosures. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 became effective for annual reporting periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. See Note 2: Revenue for further discussion, including the impact on the Company's condensed consolidated financial statements and required disclosures. In February 2017, the FASB issued No. ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . ASU 2017-05 was issued to provide clarity on the scope and application for recognizing gains and losses from the sale or transfer of nonfinancial assets, and should be adopted concurrently with ASU 2014-09, Revenue from Contracts with Customers . This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishment of Liabilities: Recognition of Breakage for Certain Prepaid Stored Value Products . ASU No. 2016-04 contains specific guidance for the derecognition of prepaid stored-value product liabilities within the scope of this ASU. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In August 2016, the FASB issued ASU No. 2016-15, S tatement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments . ASU No. 2016-15 is intended to reduce diversity and clarify the classification of how certain cash receipts and cash payments are presented in the statement of cash flows. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. ASU No. 2016-16 requires entities to account for the income tax effects of intercompany sales and transfers of assets other than inventory when the transfer occurs rather than current guidance which requires companies to defer the income tax effects of intercompany transfers of an asset until the asset has been sold to an outside party or otherwise recognized. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash . ASU No. 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Company adopted this standard effective with reporting periods beginning on January 1, 2017 and added required disclosures pursuant to ASC No. 2016-18 to its condensed consolidated statements of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business . ASU No. 2017-01 most significantly revises guidance specific to the definition of a business related to accounting for acquisitions. Additionally, ASU No. 2017-01 also affects other areas of US GAAP, such as the definition of a business related to the consolidation of variable interest entities, the consolidation of a subsidiary or group of assets, components of an operating segment, and disposals of reporting units and the impact on goodwill. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In February 2017, the FASB issued ASU No. 2017-07: Compensation—Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 requires sponsors of benefit plans to present the service cost component of net periodic benefit cost in the same income statement line or items as other employee costs and present the remaining components of net periodic benefit cost in one or more separate line items outside of income from operations. This ASU also limits the capitalization of benefit costs to only the service cost component. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. As a result of the retrospective adoption of this standard, for the three and six months ended June 30, 2017 , the Company reclassified less than $0.1 million and $0.1 million , respectively, from marketing, general and administrative expense to other income (expense). The service cost component of periodic benefit cost is the only cost that remains in income from operations; all other periodic benefit costs, including interest cost, expected return on plan assets and amortization of amounts deferred from previous periods are now reflected outside of income from operations and reflected in the other income (expense) line item on the Company's condensed consolidated statements of operations. There were no other changes to the Company's condensed consolidated financial statements or disclosures. In May 2017, the FASB issued ASU No. 2017-09: Compensation—Stock Compensation: Scope of Modification Accounting. This ASU clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Under the new guidance, a company will apply modification accounting only if the fair value, vesting conditions or classification of the award change due to a modification in the terms or conditions of the share-based payment award. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In July 2017, the FASB issued ASU No. 2017-11: I. Accounting for Certain Financial Instruments With Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception. Part I of this ASU reduces the complexity associated with accounting for certain financial instruments with down round features. Part II of this ASU recharacterizes the indefinite deferral provisions described in Topic 480: Distinguishing Liabilities from Equity. It does not have an accounting effect. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2018. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Company adopted this ASU on October 1, 2017. The Company evaluated its debt and related derivative instruments and determined that this standard did not have an impact on the Company's condensed consolidated financial statements or related disclosures. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 2. REVENUE Adoption of ASC Topic 606, “Revenue from Contracts with Customers” In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers,” which amended the FASB Accounting Standards Codification (“ASC”) and created a new ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). On January 1, 2018 , the Company adopted ASC 606 using the modified retrospective method and recognized the cumulative effect of initially applying the guidance as an adjustment to the opening balance of retained deficit. The Company applied the new revenue standard to new and existing contracts that were not complete as of the date of initial application. The Company has applied the transitional practical expedient related to contract modifications and it has not retrospectively restated contracts that were modified prior to January 1, 2018 . As a result of applying this standard using the modified retrospective method, the Company has presented financial results and applied its accounting policies for the period beginning January 1, 2018 under ASC 606, while prior period results and accounting policies have not been adjusted and are reflected under legacy GAAP pursuant to ASC 605. As a result of adopting ASC 606, the Company recorded a net increase of $3.1 million to opening retained deficit as of January 1, 2018 as a cumulative catch-up adjustment for all open contracts as of the date of adoption. The most significant drivers of this adjustment included the Company’s change in accounting policy related to the deferral of costs to obtain a contract and the accrual of contract breakage to revenue based on historical usage patterns of existing contracts (see further discussion below). Nature of Products and Services Revenue consists primarily of satellite voice and data service revenue and revenue generated from the sale of fixed and mobile devices as well as other products and accessories. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Each type of revenue is a separate performance obligation with distinct deliverables and is therefore accounted for discretely. Revenue is measured based on the consideration specified in a contract with a customer, adjusted for credits and discounts, as applicable, and is recognized when the Company satisfies a performance obligation by transferring control over a product or service to a customer. Unless otherwise disclosed, service revenue is recognized over a period of time and revenue from the sale of subscriber equipment is recognized at a point in time. The recognition of revenue for service is over time as the customer simultaneously receives and consumes the benefits of the Company’s performance over the contract term. The recognition of revenue for subscriber equipment is at a point in time as the risks and rewards of ownership of the hardware transfer to the customer generally upon shipment, which is when legal title of the product transfers to the customer, among other things (as discussed further below). The Company does not record sales taxes, telecommunication taxes or other governmental fees collected from customers in revenue. The Company excludes these taxes from the measurement of contract transaction prices. The Company receives payment from customers in accordance with billing statements or invoices for customer contracts; these payments may be in advance or arrears of services provided to the customer by the Company. Customer payments received in advance of the corresponding service period are recorded as deferred revenue. Upon activation of a Globalstar device, certain customers are charged an activation fee, which is recognized over the term of the expected customer life. Credits granted to customers are expensed or charged against revenue or accounts receivable over the remaining term of the contract. Estimates related to earned but unbilled service revenue are calculated using current subscriber data, including plan subscriptions and usage between the end of the billing cycle and the end of the period. The recognition of revenue related to amounts allocated to performance obligations that were satisfied (or partially satisfied) in a previous period is not routine or material to the Company’s financial statements. Provisions for estimated future warranty costs, returns and rebates are recorded as a cost of sale, or a reduction to revenue, as applicable. These costs are based on historical trends and the provision is reviewed regularly and periodically adjusted to reflect changes in estimates. Certain contracts with customers may contain a financing component. Under ASC 606, an entity should adjust the promised amount of the consideration for the effects of time value of money if the timing of the payments agreed upon by the parties to the contract provides the customer or the entity with a significant benefit of financing for the transfer of goods or services to the customer. This type of transaction is infrequent and not considered significant to the Company. Additionally, the Company has applied the practical expedient related to the existence of a significant financing component as it expects at contract inception that the period between payment by the customer and transfer of the promised goods or services will be one year or less. The following describes the principal activities from which the Company generates its revenue. The Company’s only reportable segment is its MSS business. Duplex Service Revenue. The Company recognizes revenue for monthly access fees in the period services are rendered. Access fees represent the minimum monthly charge for each line of service based on its associated rate plan. The Company also recognizes revenue for airtime minutes and data in excess of the monthly access fees in the period such minutes or data are used. The Company offers certain annual plans whereby a customer prepays for a predetermined amount of minutes and data. In these cases, revenue is recognized consistent with a customer’s expected pattern of usage based on historical experience because the Company believes that this method most accurately depicts the satisfaction of the Company’s obligation to the customer. This usage pattern is typically seasonal and highest in the second and third calendar quarters of the year. The Company offers other annual plans whereby the customer is charged an annual fee to access the Company’s system with an unlimited amount of usage. Annual fees for unlimited plans are recognized on a straight-line basis over the term of the plans. SPOT Service Revenue. The Company sells SPOT services as monthly, annual or multi-year plans and recognizes revenue on a straight-line basis over the service term, beginning when the service is activated by the customer. Simplex Service Revenue. The Company sells Simplex services as monthly, annual or multi-year plans and recognizes revenue ratably over the service term or as service is used, beginning when the service is activated by the customer. Independent Gateway Operator (“IGO”) Service Revenue. The Company owns and operates its satellite constellation and earns a portion of its revenues through the sale of airtime minutes or data on a wholesale basis to IGOs. Revenue from services provided to IGOs is recognized based upon airtime minutes or data packages used by customers of the IGOs and in accordance with contractual fee arrangements. Equipment Revenue. Subscriber equipment revenue represents the sale of fixed and mobile user terminals, SPOT and Simplex products, and accessories. The Company recognizes revenue upon shipment provided control has transferred to the customer. Indicators of transfer of control include, but are not limited to; 1) the Company’s right to payment, 2) the customer has legal title of the equipment, 3) the Company has transferred physical possession of the equipment to the customer or carrier, and 4) the customer has significant risks and rewards of ownership of the equipment. The Company sells equipment designed to work on its network through various channels, including through dealers, retailers and resellers (including IGOs) as well as direct to consumers or other businesses by its global sales team and through its e-commerce website. The sales channel depends primarily on the type of equipment and geographic region. Promotional rebates are offered from time to time. A reduction to revenue is recorded to reflect the lower transaction price based on an estimate of the customer take rate at the time of the sale using primarily historical data. This estimate is adjusted periodically to reflect actual rebates given to the Company’s customers. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues. Other Service Revenue. Other service revenue includes primarily revenue associated with engineering services provided to governmental customers. The Company provides certain engineering services to assist customers in developing new applications related to its system. The revenue associated with these engineering services is generally recorded over time as the services are rendered and the Company’s obligation to the customer is satisfied. Multiple-Element Arrangement Contracts. At times, the Company will sell subscriber equipment through multiple-element arrangement contracts with services. When the Company sells subscriber equipment and services in bundled arrangements and determines that it has separate performance obligations, the Company allocates the bundled contract price among the various performance obligations based on relative stand-alone selling prices at contract inception of the distinct goods or services underlying each performance obligation and recognizes revenue when, or as, each performance obligation is satisfied. Impact on Financial Statements The following tables summarize the impact of the adoption of ASC 606 on the Company’s condensed consolidated financial statements. As noted above, the change in accounting policy related to the deferral of costs to obtain a contract and the accrual of contract breakage to revenue based on historical usage patterns of existing contracts resulted in the most significant change to the Company’s condensed consolidated financial statements. Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) Three and Six Months Ended June 30, 2018 Impact on change in accounting policy Three months ended June 30, 2018 Six months ended June 30, 2018 As reported Impact of ASC 606 Legacy GAAP As reported Impact of Legacy GAAP Service revenue $ 27,995 $ 333 $ 28,328 $ 54,005 $ 1,145 $ 55,150 Subscriber equipment sales 5,731 (117 ) 5,614 8,470 (81 ) 8,389 Cost of subscriber equipment sales 4,170 (83 ) 4,087 6,342 (64 ) 6,278 Marketing, general and administrative 15,944 (6 ) 15,938 27,219 (150 ) 27,069 Other (3,351 ) 7 (3,344 ) (4,013 ) (42 ) (4,055 ) Net income (loss) (7,012 ) 298 (6,714 ) 80,918 1,320 82,238 Total comprehensive income (loss) (4,382 ) 298 (4,084 ) 83,218 1,320 84,538 Net income (loss) per common share: Basic $ (0.01 ) $ — $ (0.01 ) $ 0.06 $ 0.01 $ 0.07 Diluted (0.01 ) — (0.01 ) 0.06 — 0.06 Condensed Consolidated Balance Sheet As of June 30, 2018 Impact on change in accounting policy June 30, 2018 As reported Impact of ASC 606 Legacy GAAP Accounts receivable, net $ 19,886 $ (219 ) $ 19,667 Prepaid expenses and other current assets 8,879 47 8,926 Intangible and other assets, net 31,395 (1,994 ) 29,401 Deferred revenue, current and long-term 38,824 (473 ) 38,351 Retained earnings (deficit) (1,487,291 ) 1,773 (1,485,518 ) Disaggregation of Revenue The following table discloses revenue disaggregated by type of product and service (amounts in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 (1) June 30, 2018 June 30, 2017 (1) Service revenue: Duplex $ 10,134 $ 9,322 $ 18,917 $ 16,920 SPOT 13,868 11,193 26,830 21,590 Simplex 3,216 2,526 6,305 4,942 IGO 216 376 425 587 Other 561 884 1,528 1,743 Total service revenue 27,995 24,301 54,005 45,782 Subscriber equipment sales: Duplex $ 750 $ 612 $ 1,181 $ 1,511 SPOT 1,908 1,815 3,341 3,051 Simplex 2,846 1,072 3,650 1,979 IGO 136 330 206 469 Other 91 (7 ) 92 (17 ) Total subscriber equipment sales 5,731 3,822 8,470 6,993 Total revenue $ 33,726 $ 28,123 $ 62,475 $ 52,775 (1) As noted above, prior periods have not been adjusted under the modified retrospective method of adoption. 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 Six Months Ended June 30, 2018 June 30, 2017 (1) June 30, 2018 June 30, 2017 (1) Service revenue: United States $ 20,106 $ 16,657 $ 38,485 $ 31,935 Canada 4,794 4,457 9,280 8,158 Europe 2,404 2,223 4,650 3,954 Central and South America 612 840 1,181 1,490 Others 79 124 409 245 Total service revenue 27,995 24,301 54,005 45,782 Subscriber equipment sales: United States $ 3,460 $ 2,334 $ 5,055 $ 4,114 Canada 793 828 1,143 1,542 Europe 1,040 358 1,428 775 Central and South America 338 294 726 553 Others 100 8 118 9 Total subscriber equipment sales 5,731 3,822 8,470 6,993 Total revenue $ 33,726 $ 28,123 $ 62,475 $ 52,775 (1) As noted above, prior periods have not been adjusted under the modified retrospective method of adoption. Contract Balances The following table discloses information about accounts receivable, costs to obtain a contract, and contract liabilities from contracts with customers (amounts in thousands): June 30, 2018 January 1, 2018 Accounts receivable $ 19,886 $ 17,113 Capitalized costs to obtain a contract 2,082 2,265 Contract liabilities 38,824 37,799 Accounts Receivable Receivables are recorded when the right to consideration from the customer becomes unconditional, which is generally upon billing or upon satisfaction of a performance obligation, whichever is earlier. Receivables are uncollateralized, without interest, and consist primarily of receivables from the sale of Globalstar services and equipment. For service customers, payment is generally due within thirty days of the invoice date and for equipment customers, payment is generally due within thirty to sixty days of the invoice date, or, for some customers, may be made in advance of shipment. 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 $0.3 million and $0.1 million as of June 30, 2018 and January 1, 2018 , respectively. The Company has agreements with certain of its IGOs whereby the parties net settle outstanding payables and receivables between the respective entities on a periodic basis. As of June 30, 2018 , $8.5 million related to these agreements were included in accounts receivable on the Company’s condensed consolidated balance sheet. The Company performs ongoing credit evaluations of its customers and impairs receivable balances by recording specific allowances for bad debts based on factors such as current trends, the length of time the receivables are past due and historical collection experience. Accounts receivable are considered past due in accordance with the contractual terms of the arrangements. Accounts receivable balances that are determined likely to be uncollectible are included in the allowance for doubtful accounts. After attempts to collect a receivable have failed, the receivable is written off against the allowance. During the three and six months ended June 30, 2018 , impairment losses on receivables from contracts with customers were $0.8 million and $1.8 million , respectively, including both provisions for bad debt and the reversal of revenue for accounts where collectability is not reasonably assured. Costs to Obtain a Contract Capitalized costs to obtain a contract include certain deferred subscriber acquisition costs which 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 contract term of three years. For the three and six months ended June 30, 2018 , the amount of amortization related to previously capitalized costs to obtain a contract was $0.4 million and $0.8 million , respectively. The Company applies the practicable expedient pursuant to the guidance in ASC 606 and recognizes the incremental costs of obtaining contracts as expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in marketing, general and administrative expenses in the period in which the cost is incurred. When a contract terminates prior to the end of its expected life, the remaining deferred costs asset associated with it becomes impaired. An immediate recognition of expense for individual remaining costs to obtain a contract following deactivation is not practicable. Because early terminations are factored into the determination of the expected customer life and therefore affect the amortization period, the Company does not recognize early termination expense on individual assets because the incremental effect would be immaterial and doing do would be impractical. 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 June 30, 2018 , the total transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was $38.8 million . As discussed above, revenue is recognized when the Company satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized during the six months ended June 30, 2018 from performance obligations included in the contract liability balance at the beginning of the period was $22.6 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 June 30, 2018 , the Company expects to recognize $33.0 million , or approximately 85% , of its remaining performance obligations during the next twelve months and $2.9 million , or approximately 7% , between two to seven years from the balance sheet date. The remaining $2.9 million , or approximately 8% , is related to a single contract and will be recognized beyond the next twelve months as work is performed by the Company, the timing of which is currently unknown. The Company has applied the practical expedient pursuant to ASC 606 allowing for limited disclosure of contract liabilities with a remaining duration of one year or less. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 3. PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): June 30, December 31, Globalstar System: Space component First and second-generation satellites in service $ 1,195,291 $ 1,195,426 Second-generation satellite, on-ground spare 32,481 32,481 Ground component 211,048 48,710 Construction in progress: Ground component 71,145 227,167 Next-generation software upgrades 1,314 12,414 Other 1,712 2,575 Total Globalstar System 1,512,991 1,518,773 Internally developed and purchased software 25,689 16,132 Equipment 10,656 9,966 Land and buildings 3,174 3,322 Leasehold improvements 1,970 1,969 Total property and equipment 1,554,480 1,550,162 Accumulated depreciation (619,444 ) (579,043 ) Total property and equipment, net $ 935,036 $ 971,119 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 ground component of construction in progress represents the remaining costs (including capitalized interest) associated primarily with the Company's contracts with Hughes Network Systems, LLC (“Hughes”) and Ericsson Inc. (“Ericsson”) to complete second-generation equipment upgrades to the Company's ground infrastructure in certain regions around the world. During the second quarter of 2018, the Company placed the portion of the next-generation ground component and software upgrades into service primarily representing the gateways capable of supporting commercial traffic from the recently-launched Sat-Fi2 TM , the first device to operate on the Company's upgraded ground network. Amounts included in the Company’s second-generation satellite, on-ground spare balance as of June 30, 2018 and December 31, 2017 , 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 June 30, 2018 , this satellite has not been placed into service; therefore, the Company has not started to record depreciation expense. |
Long-Term Debt and Other Financ
Long-Term Debt and Other Financing Arrangements | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Financing Arrangements | 4. LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Long-term debt consists of the following (in thousands): June 30, 2018 December 31, 2017 Principal Amount Unamortized Discount and Deferred Financing Costs Carrying Value Principal Amount Unamortized Discount and Deferred Financing Costs Carrying Value Facility Agreement $ 428,323 $ 29,277 $ 399,046 $ 467,256 $ 34,459 $ 432,797 Loan Agreement with Thermo 112,616 24,566 88,050 106,054 26,333 79,721 8.00% Convertible Senior Notes Issued in 2013 1,363 — 1,363 1,348 — 1,348 Total Debt 542,302 53,843 488,459 574,658 60,792 513,866 Less: Current Portion 87,732 — 87,732 79,215 — 79,215 Long-Term Debt $ 454,570 $ 53,843 $ 400,727 $ 495,443 $ 60,792 $ 434,651 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") because it currently intends on redeeming such notes in the near future if the Company's stock price exceeds the conversion price of the notes. Accordingly, any such redemption is expected to result in the conversion of the notes by the holders in lieu of a cash payment by the Company at par value. The Company believes that the principal payments due in December 2018 and June 2019 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 intends to raise funds in sufficient amounts to meet its obligations; however, the source of funds has not yet been fully arranged. 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 June 30, 2018 , the Facility Agreement was fully drawn. Semi-annual principal repayments began in December 2014. Indebtedness under the facility bears interest at a floating rate of LIBOR plus 3.25% through June 2018, increasing by an additional 0.5% each year thereafter to a maximum rate of LIBOR plus 5.75% . 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 anticipates that it will need an Equity Cure Contribution to maintain compliance with financial covenants under the Facility Agreement for the measurement period ended December 31, 2018. The source of funds for any needed Equity Cure Contribution has not yet been fully arranged. As of June 30, 2018 , the Company was in compliance with respect to the covenants of the Facility Agreement. 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 the total amount of principal and interest payable by the Company on the next payment date. As of June 30, 2018 , the balance in the debt service reserve account was $52.7 million , which is classified as restricted cash on the Company's condensed consolidated balance sheet. 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 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 June 30, 2018 , $69.1 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 6: 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. All of the transactions between the Company and Thermo and its affiliates were reviewed and approved on the Company's behalf by a Special Committee of its disinterested independent directors, who were represented by independent counsel. 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 $0.73 (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. 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 June 30, 2018 , the Company was in compliance with respect to the terms of the 2013 8.00% Notes and the Indenture. 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 June 30, 2018 , 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 each of April 1, 2018 and 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. The holders did not exercise this option on April 1, 2018. 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). As of June 30, 2018 , 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. There were no conversions during the three and six month periods ending June 30, 2018 . Holders who convert 2013 8.00% Notes may receive conversion shares over a 40 -consecutive trading day settlement period. Accordingly, the portion of converted debt is extinguished on an incremental basis over the 40 -day settlement period, reducing the Company's outstanding debt balance. As of June 30, 2018 , no conversions had been initiated but not yet fully settled. 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 did not deem the conversion option and the contingent put feature to be clearly and closely related to the 2013 8.00% Notes and separately accounted for them as a standalone derivative. The Company recorded this compound embedded derivative liability as a liability on its condensed consolidated balance sheets with a corresponding debt discount which is netted against the face value of the 2013 8.00% Notes. The Company was accreting the debt discount associated with the compound embedded derivative liability to interest expense through the first put date of the 2013 8.00% Notes (April 1, 2018) using an effective interest rate method. Due to significant conversions since issuance, the entire debt discount has been recorded to interest expense resulting in no balance as of June 30, 2018 . The Company is marking to market the fair value of the compound embedded derivative liability at the end of each reporting period, or more frequently as deemed necessary, and as of the date of a significant conversion, 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. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 5. 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): June 30, 2018 December 31, 2017 Derivative liabilities: Compound embedded derivative with the 2013 8.00% Notes $ (939 ) $ (1,326 ) Compound embedded derivative with the Loan Agreement with Thermo (120,161 ) (226,659 ) Total derivative liabilities $ (121,100 ) $ (227,985 ) 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 Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Interest rate cap $ — $ (1 ) $ — $ (3 ) Compound embedded derivative with the 2013 8.00% Notes (934 ) (11,354 ) 387 (10,196 ) Compound embedded derivative with the Loan Agreement with Thermo (1,125 ) (65,775 ) 106,498 (63,708 ) Total derivative gain (loss) $ (2,059 ) $ (77,130 ) $ 106,885 $ (73,907 ) 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. 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 June 30, 2018 and December 31, 2017 , 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. These embedded derivatives required bifurcation from the debt host agreement and are recorded as a derivative liability on the Company’s condensed consolidated balance sheets with a corresponding debt discount netted against the principal amount of the related debt instrument. The Company accretes the debt discount associated with each derivative liability to interest expense over the term of the related debt instrument using an effective interest rate method. 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. The Company determined the fair value of its compound embedded derivative liabilities using a Monte Carlo simulation model. See Note 6: Fair Value Measurements for further discussion. Consistent with the classification of the 2013 8.00% Notes as current debt on the Company's condensed consolidated balance sheet, the Company has classified this derivative liability as current on its condensed consolidated balance sheet at June 30, 2018 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. 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 financial liabilities measured at fair value on a recurring basis (in thousands): June 30, 2018 (Level 1) (Level 2) (Level 3) Total Balance Liabilities: Compound embedded derivative with the 2013 8.00% Notes — — (939 ) (939 ) Compound embedded derivative with the Loan Agreement with Thermo — — (120,161 ) (120,161 ) Total liabilities measured at fair value $ — $ — $ (121,100 ) $ (121,100 ) December 31, 2017 (Level 1) (Level 2) (Level 3) Total Balance Liabilities: Compound embedded derivative with the 2013 8.00% Notes — — (1,326 ) (1,326 ) Compound embedded derivative with the Loan Agreement with Thermo — — (226,659 ) (226,659 ) Total liabilities measured at fair value $ — $ — $ (227,985 ) $ (227,985 ) Assets Interest Rate Cap The fair value of the interest rate cap is determined using observable pricing inputs including benchmark yields, reported trades, and broker/dealer quotes at the reporting date. The value of the interest rate cap was approximately zero as of June 30, 2018 and December 31, 2017, respectively, and is not reflected in the table above. See Note 5: Derivatives for further discussion. Liabilities 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 5: Derivatives for further discussion. The significant quantitative Level 3 inputs utilized in the valuation models are shown in the tables below: June 30, 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% - 130% 2.7 % $ 0.73 25 % $ 0.49 Compound embedded derivative with the Loan Agreement with Thermo 40% - 130% 2.7 % $ 0.73 25 % $ 0.49 December 31, 2017 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 78 % 1.4 % $ 0.73 27 % $ 1.31 Compound embedded derivative with the Loan Agreement with Thermo 40% - 77% 2.2 % $ 0.73 27 % $ 1.31 Fluctuation in the Company’s stock price is the primary driver for the changes in the derivative valuations during each reporting period. 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. Additionally, stock price volatility is one of the significant unobservable inputs 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. Increases in expected volatility would generally result in a higher 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 generally result in a higher fair value measurement. 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 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ (119,041 ) $ (277,946 ) $ (227,985 ) $ (281,171 ) Unrealized gain (loss), included in derivative gain (loss) (2,059 ) (77,129 ) 106,885 (73,904 ) Balance at end of period $ (121,100 ) $ (355,075 ) $ (121,100 ) $ (355,075 ) 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): June 30, 2018 December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Loan Agreement with Thermo $ 88,050 $ 67,040 $ 79,721 $ 54,936 2013 8.00% Notes 1,363 751 1,348 1,295 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 7. CONTINGENCIES Arbitration On June 3, 2011, Globalstar filed a demand for arbitration against Thales before the American Arbitration Association to enforce certain rights to order additional satellites under the 2009 Contract. The Company did not include within its demand any claims that it had against Thales for work previously performed under the contract to design, manufacture and timely deliver the first 25 second-generation satellites. On May 10, 2012, the arbitration tribunal issued its award in which it determined that the Company had terminated the 2009 Contract “for convenience” and had materially breached the contract by failing to pay to Thales the €51.3 million in termination charges required under the contract. The tribunal additionally determined that absent further agreement between the parties, Thales had no further obligation to manufacture or deliver satellites under Phase 3 of the 2009 Contract. Based on these determinations, the tribunal directed the Company to pay Thales approximately €53 million in termination charges, plus interest by June 9, 2012. On May 23, 2012, Thales commenced an action in the United States District Court for the Southern District of New York by filing a petition to confirm the arbitration award (the “New York Proceeding”). Thales and the Company entered into tolling agreements under which Thales dismissed the New York Proceeding without prejudice. These tolling agreements have expired. Accordingly, as of May 10, 2018, Thales's right to enforce the arbitration award pursuant to the Federal Arbitration Act is now time-barred. On June 24, 2012, the Company and Thales agreed to settle their prior commercial disputes, including those disputes that were the subject of the arbitration award. In order to effectuate this settlement, the Company and Thales entered into a Release Agreement, a Settlement Agreement and a Submission Agreement. Under the terms of the Release Agreement, Thales agreed unconditionally and irrevocably to release and forever discharge the Company from any and all claims and obligations (with the exception of those items payable under the Settlement Agreement or in connection with a new contract for the purchase of any additional second-generation satellites), including, without limitation, a full release from paying €35.6 million of the termination charges awarded in the arbitration together with all interest on the award amount effective upon the earlier of December 31, 2012, and the effective date of the financing for the purchase of any additional second-generation satellites. Under the terms of the Release Agreement, the Company agreed unconditionally and irrevocably to release and forever discharge Thales from any and all claims (with limited exceptions), including, without limitation, claims related to Thales’s work under the 2009 satellite construction contract, including any obligation to pay liquidated damages, effective upon the earlier of December 31, 2012, and the effective date of the financing for the purchase of any additional second-generation satellites. The releases became effective on December 31, 2012. In connection with the Release Agreement and the Settlement Agreement, the Company recorded a contract termination charge of approximately €17.5 million in its condensed consolidated balance sheet during the second quarter of 2012. As discussed above, the statute of limitations for Thales to enforce the arbitration award pursuant to the Federal Arbitration Act has expired. As such, the Company believes that payment of the contract termination charge is not probable and has removed this liability from its condensed consolidated balance sheet as of June 30, 2018. Nevertheless, there can be no assurance that Thales would not or could not seek some alternative means to pursue all or a portion of the €17.5 million contract termination charge, which would be defended vigorously by the Company. Under the terms of the Settlement Agreement, the Company agreed to pay €17.5 million to Thales, representing one-third of the termination charges awarded to Thales in the arbitration, subject to certain conditions, on the later of the effective date of the new contract for the purchase of any additional second-generation satellites and the effective date of the financing for the purchase of these satellites. As of June 30, 2018 , this condition had not been satisfied. Because the effective date of the new contract for the purchase of additional second-generation satellites did not occur on or prior to February 28, 2013, any party may terminate the Settlement Agreement. If any party terminates the Settlement Agreement, all parties’ rights and obligations under the Settlement Agreement shall terminate. The Release Agreement is a separate and independent agreement from the Settlement Agreement and provides that it supersedes all prior understandings, commitments and representations between the parties with respect to the subject matter thereof; therefore, it would survive any termination of the Settlement Agreement. As of June 30, 2018 , no party had terminated the Settlement Agreement. Other 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 will receive proceeds of $7.4 million , which is net of legal fees related to this settlement. The cash proceeds will be received in equal installments in January 2019 and January 2020, respectively. 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. 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
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. RELATED PARTY TRANSACTIONS Payables to Thermo and other affiliates related to normal purchase transactions were $0.3 million and $0.2 million as of June 30, 2018 and December 31, 2017 , respectively. Transactions with Thermo General and administrative expenses are related to non-cash expenses and those expenses incurred by Thermo on behalf of the Company which are charged to the Company. Non-cash expenses, which the Company accounts for as a contribution to capital, relate to services provided by two executive officers of Thermo (who are also directors of the Company) and receive no cash compensation from the Company. The Thermo expense charges are based on actual amounts (with no mark-up) incurred or upon allocated employee time. Those expenses charged to the Company were $0.2 million during each of the three months ended June 30, 2018 and 2017 and $0.4 million during each of the six months ended June 30, 2018 and 2017 , respectively. As of June 30, 2018 , the principal amount outstanding under the Loan Agreement with Thermo was $112.6 million , and the fair value of the compound embedded derivative liability associated with the Loan Agreement was $120.2 million . During the three months ended June 30, 2018 and 2017 , interest accrued on the Loan Agreement was approximately $3.3 million and $3.0 million , respectively. During the six months ended June 30, 2018 and 2017 , interest accrued on the Loan Agreement was approximately $6.6 million and $5.8 million , respectively. On April 24, 2018, Globalstar entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GBS Acquisitions, Inc., a Delaware corporation and wholly owned subsidiary of Globalstar (“Merger Sub”), Thermo Acquisitions, Inc., a Delaware corporation (“Thermo Acquisitions”), the stockholders of Thermo Acquisitions (collectively, the “Thermo Stockholders,” and each, individually, a “Thermo Stockholder”), and Thermo Development, Inc., in its capacity as the representative of the Thermo Stockholders as set forth therein (the “Stockholders’ Representative”). Thermo Acquisitions is controlled by James Monroe III, Executive Chairman of the Board of Directors and Chief Executive Officer of Globalstar. Pursuant to the terms of the Merger Agreement, Merger Sub would merge with and into Thermo Acquisitions with Thermo Acquisitions continuing as the surviving corporation and a wholly owned subsidiary of Globalstar (the “Merger”). The transaction was unanimously recommended by the Special Committee of the Board of Directors of Globalstar, consisting entirely of disinterested independent directors, and unanimously approved by the full Board of Directors. On July 31, 2018, Globalstar, following the unanimous recommendation of its Special Committee of independent directors, and the Stockholders’ Representative terminated the Merger Agreement by mutual written agreement by entering into a Termination of Agreement and Plan of Merger, between Globalstar and the Stockholders’ Representative. In addition, on July 31, 2018, the Voting Agreement between Globalstar and certain of its stockholders terminated in accordance with its terms as a result of the termination of the Merger Agreement. No termination fees are payable in connection with the termination of the Merger Agreement. In addition, the Company's Board of Directors maintains a special committee consisting solely of disinterested independent directors of the Company, represented by independent legal counsel. This special committee serves as an independent board to review and approve certain transactions between the Company and Thermo. See Note 4: Long-Term Debt and Other Financing Arrangements for further discussion of the Company's debt and financing transactions with Thermo. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 9. EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share are computed based on the weighted average number of shares of common stock outstanding during the period. Common stock equivalents are included in the calculation of diluted earnings per share only when the effect of their inclusion would be dilutive. The following table sets forth the calculation of basic and diluted earnings (loss) per share and reconciles basic weighted average shares to diluted weighted average shares of common stock outstanding for the periods indicated (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) $ (7,012 ) $ (98,734 ) $ 80,918 $ (118,895 ) Effect of dilutive securities: 2013 8.00% Notes — — 38 — Loan Agreement with Thermo — — 5,855 — Income (loss) to common stockholders plus assumed conversions $ (7,012 ) $ (98,734 ) $ 86,811 $ (118,895 ) Weighted average common shares outstanding: Basic shares outstanding 1,263,372 1,128,985 1,262,857 1,121,518 Incremental shares from assumed exercises, conversions and other issuance of: Stock options, restricted stock, restricted stock units and ESPP — — 5,335 — 2013 8.00% Notes — — 2,087 — Loan Agreement with Thermo — — 172,414 — Diluted shares outstanding 1,263,372 1,128,985 1,442,693 1,121,518 Net income (loss) per share: Basic $ (0.01 ) $ (0.09 ) $ 0.06 $ (0.11 ) Diluted (0.01 ) (0.09 ) 0.06 (0.11 ) For the three months ended June 30, 2018, 150.2 million shares of potential common stock were excluded from diluted shares outstanding because the effects of assuming issuance of these potentially dilutive securities would be anti-dilutive. For the three and six months ended June 30, 2017 , 190.5 million and 191.6 million shares, respectively, of potential common stock were excluded from diluted shares outstanding because the effects of assuming issuance of these potentially dilutive securities would be anti-dilutive. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | 10. CONDENSED CONSOLIDATING FINANCIAL INFORMATION In connection with the Company’s issuance of the 2013 8.00% Notes, certain of the Company’s 100% owned domestic subsidiaries (the “Guarantor Subsidiaries”), fully, unconditionally, jointly, and severally guaranteed the payment obligations under the 2013 8.00% Notes. The following financial information sets forth, on a consolidating basis, the balance sheets, statements of operations and statements of cash flows for Globalstar, Inc. (the “Parent Company”), for the Guarantor Subsidiaries and for the Parent Company’s other subsidiaries (the “Non-Guarantor Subsidiaries”). The condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include disclosures included in annual financial statements. The principal eliminating entries eliminate investments in subsidiaries, intercompany balances and intercompany revenues and expenses. Globalstar, Inc. Condensed Consolidating Statement of Operations Three Months Ended June 30, 2018 (Unaudited) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated (In thousands) Revenue: Service revenue $ 23,270 $ 10,292 $ 16,406 $ (21,973 ) $ 27,995 Subscriber equipment sales 204 5,348 1,375 (1,196 ) 5,731 Total revenue 23,474 15,640 17,781 (23,169 ) 33,726 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 6,745 1,498 2,294 (1,011 ) 9,526 Cost of subscriber equipment sales 165 4,281 919 (1,195 ) 4,170 Marketing, general and administrative 11,382 1,457 24,078 (20,973 ) 15,944 Revision to contract termination charge (20,478 ) — — — (20,478 ) Depreciation, amortization and accretion 21,349 68 1,199 — 22,616 Total operating expenses 19,163 7,304 28,490 (23,179 ) 31,778 Income (loss) from operations 4,311 8,336 (10,709 ) 10 1,948 Other income (expense): Interest income and expense, net of amounts capitalized (10,335 ) (2 ) 3 29 (10,305 ) Derivative loss (2,059 ) — — — (2,059 ) Gain on legal settlement 6,779 — — — 6,779 Equity in subsidiary earnings (loss) (5,800 ) (6,241 ) — 12,041 — Other 92 293 (3,725 ) (11 ) (3,351 ) Total other income (expense) (11,323 ) (5,950 ) (3,722 ) 12,059 (8,936 ) Income (loss) before income taxes (7,012 ) 2,386 (14,431 ) 12,069 (6,988 ) Income tax expense — 10 14 — 24 Net income (loss) $ (7,012 ) $ 2,376 $ (14,445 ) $ 12,069 $ (7,012 ) Comprehensive income (loss) $ (7,012 ) $ 2,376 $ (11,793 ) $ 12,047 $ (4,382 ) Globalstar, Inc. Condensed Consolidating Statement of Operations Three Months Ended June 30, 2017 (Unaudited) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated (In thousands) Revenue: Service revenue $ 18,685 $ 9,846 $ 13,096 $ (17,326 ) $ 24,301 Subscriber equipment sales 60 3,702 1,491 (1,431 ) 3,822 Total revenue 18,745 13,548 14,587 (18,757 ) 28,123 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 6,415 1,403 1,974 (756 ) 9,036 Cost of subscriber equipment sales 32 3,106 1,525 (1,885 ) 2,778 Marketing, general and administrative 5,241 997 19,357 (16,122 ) 9,473 Depreciation, amortization and accretion 19,101 120 54 — 19,275 Total operating expenses 30,789 5,626 22,910 (18,763 ) 40,562 Income (loss) from operations (12,044 ) 7,922 (8,323 ) 6 (12,439 ) Other income (expense): Gain on equity issuance 1,964 — — — 1,964 Interest income and expense, net of amounts capitalized (8,829 ) 7 (32 ) 4 (8,850 ) Derivative loss (77,130 ) — — — (77,130 ) Equity in subsidiary earnings (loss) (1,282 ) (4,076 ) — 5,358 — Other (1,413 ) (337 ) (418 ) (5 ) (2,173 ) Total other income (expense) (86,690 ) (4,406 ) (450 ) 5,357 (86,189 ) Income (loss) before income taxes (98,734 ) 3,516 (8,773 ) 5,363 (98,628 ) Income tax expense — 4 102 — 106 Net income (loss) $ (98,734 ) $ 3,512 $ (8,875 ) $ 5,363 $ (98,734 ) Comprehensive income (loss) $ (98,734 ) $ 3,512 $ (8,911 ) $ 5,354 $ (98,779 ) Globalstar, Inc. Condensed Consolidating Statement of Operations Six Months Ended June 30, 2018 (Unaudited) Parent Guarantor Non- Eliminations Consolidated (In thousands) Revenue: Service revenue $ 43,804 $ 19,366 $ 32,014 $ (41,179 ) $ 54,005 Subscriber equipment sales 251 7,397 2,571 (1,749 ) 8,470 Total revenue 44,055 26,763 34,585 (42,928 ) 62,475 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 13,002 2,888 5,162 (2,497 ) 18,555 Cost of subscriber equipment sales 206 6,091 1,794 (1,749 ) 6,342 Marketing, general and administrative 18,467 2,521 44,941 (38,710 ) 27,219 Revision to contract termination charge (20,478 ) — — — (20,478 ) Depreciation, amortization and accretion 40,393 164 1,290 — 41,847 Total operating expenses 51,590 11,664 53,187 (42,956 ) 73,485 Income (loss) from operations (7,535 ) 15,099 (18,602 ) 28 (11,010 ) Other income (expense): Interest income and expense, net of amounts capitalized (17,721 ) (4 ) 17 50 (17,658 ) Derivative gain 106,885 — — — 106,885 Gain on legal settlement 6,779 — — — 6,779 Equity in subsidiary earnings (loss) (7,120 ) (9,628 ) — 16,748 — Other (370 ) 117 (3,733 ) (27 ) (4,013 ) Total other income (expense) 88,453 (9,515 ) (3,716 ) 16,771 91,993 Income (loss) before income taxes 80,918 5,584 (22,318 ) 16,799 80,983 Income tax expense — 16 49 — 65 Net income (loss) $ 80,918 $ 5,568 $ (22,367 ) $ 16,799 $ 80,918 Comprehensive income (loss) $ 80,918 $ 5,568 $ (20,039 ) $ 16,771 $ 83,218 Globalstar, Inc. Condensed Consolidating Statement of Operations Six Months Ended June 30, 2017 (Unaudited) Parent Guarantor Non- Eliminations Consolidated (In thousands) Revenue: Service revenue $ 36,297 $ 19,202 $ 24,097 $ (33,814 ) $ 45,782 Subscriber equipment sales 127 5,993 2,841 (1,968 ) 6,993 Total revenue 36,424 25,195 26,938 (35,782 ) 52,775 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 12,543 2,828 5,147 (2,508 ) 18,010 Cost of subscriber equipment sales 66 4,823 1,952 (1,967 ) 4,874 Marketing, general and administrative 10,828 2,116 37,265 (31,318 ) 18,891 Depreciation, amortization and accretion 38,052 402 115 — 38,569 Total operating expenses 61,489 10,169 44,479 (35,793 ) 80,344 Income (loss) from operations (25,065 ) 15,026 (17,541 ) 11 (27,569 ) Other income (expense): Gain (loss) on equity issuance 2,706 — (36 ) — 2,670 Interest income and expense, net of amounts capitalized (17,584 ) (1 ) (101 ) 8 (17,678 ) Derivative loss (73,907 ) — — — (73,907 ) Equity in subsidiary earnings (loss) (3,215 ) (7,510 ) — 10,725 — Other (1,830 ) (437 ) 5 (7 ) (2,269 ) Total other income (expense) (93,830 ) (7,948 ) (132 ) 10,726 (91,184 ) Income (loss) before income taxes (118,895 ) 7,078 (17,673 ) 10,737 (118,753 ) Income tax expense — 9 133 — 142 Net income (loss) $ (118,895 ) $ 7,069 $ (17,806 ) $ 10,737 $ (118,895 ) Comprehensive income (loss) $ (118,895 ) $ 7,069 $ (18,662 ) $ 10,728 $ (119,760 ) Globalstar, Inc. Condensed Consolidating Balance Sheet As of June 30, 2018 (Unaudited) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 7,955 $ 1,556 $ 3,295 $ — $ 12,806 Restricted cash 52,692 — — — 52,692 Accounts receivable, net of allowance 6,451 9,595 3,840 — 19,886 Intercompany receivables 1,083,354 790,014 85,101 (1,958,469 ) — Inventory 1,105 5,260 1,377 — 7,742 Prepaid expenses and other current assets 6,055 1,435 1,389 — 8,879 Total current assets 1,157,612 807,860 95,002 (1,958,469 ) 102,005 Property and equipment, net 855,526 1,322 78,183 5 935,036 Intercompany notes receivable 5,600 — 6,436 (12,036 ) — Investment in subsidiaries (281,595 ) 58,583 40,367 182,645 — Intangible and other assets, net 28,005 387 3,015 (12 ) 31,395 Total assets $ 1,765,148 $ 868,152 $ 223,003 $ (1,787,867 ) $ 1,068,436 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 87,732 $ — $ — $ — $ 87,732 Accounts payable 2,436 3,152 1,400 — 6,988 Accrued expenses 10,198 7,397 5,295 — 22,890 Intercompany payables 742,918 812,978 402,534 (1,958,430 ) — Payables to affiliates 286 — — — 286 Derivative liabilities 939 — — — 939 Deferred revenue 1,498 24,073 7,476 — 33,047 Total current liabilities 846,007 847,600 416,705 (1,958,430 ) 151,882 Long-term debt, less current portion 400,727 — — — 400,727 Employee benefit obligations 4,458 — — — 4,458 Intercompany notes payable 6,436 — 5,600 (12,036 ) — Derivative liabilities 120,161 — — — 120,161 Deferred revenue 5,456 304 17 — 5,777 Other non-current liabilities 560 324 3,204 — 4,088 Total non-current liabilities 537,798 628 8,821 (12,036 ) 535,211 Stockholders’ equity (deficit) 381,343 19,924 (202,523 ) 182,599 381,343 Total liabilities and stockholders’ equity $ 1,765,148 $ 868,152 $ 223,003 $ (1,787,867 ) $ 1,068,436 Globalstar, Inc. Condensed Consolidating Balance Sheet As of December 31, 2017 (Unaudited) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 32,864 $ 4,942 $ 3,838 $ — $ 41,644 Restricted cash 63,635 — — — 63,635 Accounts receivable, net of allowance 7,129 6,524 3,460 — 17,113 Intercompany receivables 979,942 755,847 64,477 (1,800,266 ) — Inventory 1,182 4,610 1,481 — 7,273 Prepaid expenses and other current assets 3,149 2,414 1,182 — 6,745 Total current assets 1,087,901 774,337 74,438 (1,800,266 ) 136,410 Property and equipment, net 962,756 3,855 4,503 5 971,119 Intercompany notes receivable 5,600 — 6,436 (12,036 ) — Investment in subsidiaries (280,745 ) 84,244 38,637 157,864 — Intangible and other assets, net 18,353 47 3,348 (12 ) 21,736 Total assets $ 1,793,865 $ 862,483 $ 127,362 $ (1,654,445 ) $ 1,129,265 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 79,215 $ — $ — $ — $ 79,215 Accounts payable 2,257 2,736 1,055 — 6,048 Accrued contract termination charge 21,002 — — — 21,002 Accrued expenses 7,627 6,331 6,796 — 20,754 Intercompany payables 711,159 799,565 289,503 (1,800,227 ) — Payables to affiliates 225 — — — 225 Derivative liabilities 1,326 — — — 1,326 Deferred revenue 1,164 23,282 7,301 — 31,747 Total current liabilities 823,975 831,914 304,655 (1,800,227 ) 160,317 Long-term debt, less current portion 434,651 — — — 434,651 Employee benefit obligations 4,389 — — — 4,389 Intercompany notes payable 6,436 — 5,600 (12,036 ) — Derivative liabilities 226,659 — — — 226,659 Deferred revenue 5,625 410 17 — 6,052 Other non-current liabilities 906 325 4,742 — 5,973 Total non-current liabilities 678,666 735 10,359 (12,036 ) 677,724 Stockholders’ equity (deficit) 291,224 29,834 (187,652 ) 157,818 291,224 Total liabilities and stockholders’ equity $ 1,793,865 $ 862,483 $ 127,362 $ (1,654,445 ) $ 1,129,265 Globalstar, Inc. Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (Unaudited) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated (In thousands) Cash flows provided by (used in) operating activities $ 10,592 $ (2,545 ) $ (242 ) $ — $ 7,805 Cash flows used in investing activities: Second-generation network costs (including interest) (4,254 ) — (23 ) — (4,277 ) Property and equipment additions (2,207 ) (841 ) (173 ) — (3,221 ) Purchase of intangible assets (1,369 ) — (32 ) — (1,401 ) Net cash used in investing activities (7,830 ) (841 ) (228 ) — (8,899 ) Cash flows provided by (used in) financing activities: Principal payments of the Facility Agreement (38,933 ) — — — (38,933 ) Proceeds from issuance of common stock and exercise of options and warrants 319 — — — 319 Net cash used in financing activities (38,614 ) — — — (38,614 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (73 ) — (73 ) Net decrease in cash, cash equivalents and restricted cash (35,852 ) (3,386 ) (543 ) — (39,781 ) Cash, cash equivalents and restricted cash, beginning of period 96,499 4,942 3,838 — 105,279 Cash, cash equivalents and restricted cash, end of period $ 60,647 $ 1,556 $ 3,295 $ — $ 65,498 Globalstar, Inc. Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 (Unaudited) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated (In thousands) Cash flows provided by operating activities $ 4,008 $ 1,068 $ 1,180 $ — $ 6,256 Cash flows used in investing activities: Second-generation network costs (including interest) (6,498 ) — (32 ) — (6,530 ) Property and equipment additions (1,637 ) (420 ) (59 ) — (2,116 ) Purchase of intangible assets (1,552 ) — (492 ) — (2,044 ) Net cash used in investing activities (9,687 ) (420 ) (583 ) — (10,690 ) Cash flows provided by (used in) financing activities: Principal payments of the Facility Agreement (21,695 ) — — — (21,695 ) Proceeds from Thermo Common Stock Purchase Agreement 33,000 — — — 33,000 Payment of debt restructuring fee (20,795 ) — — — (20,795 ) Payment of debt amendment fee (255 ) — — — (255 ) Proceeds from issuance of stock to Terrapin 12,000 — — — 12,000 Proceeds from issuance of common stock and exercise of options and warrants 635 — — — 635 Net cash provided by financing activities 2,890 — — — 2,890 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 84 — 84 Net increase (decrease) in cash, cash equivalents and restricted cash (2,789 ) 648 681 — (1,460 ) Cash, cash equivalents and restricted cash, beginning of period 45,242 1,327 1,644 — 48,213 Cash, cash equivalents and restricted cash, end of period $ 42,453 $ 1,975 $ 2,325 $ — $ 46,753 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. SUBSEQUENT EVENTS Merger Agreement On April 24, 2018, Globalstar entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GBS Acquisitions, Inc., a Delaware corporation and wholly owned subsidiary of Globalstar (“Merger Sub”), Thermo Acquisitions, Inc., a Delaware corporation (“Thermo Acquisitions”), the stockholders of Thermo Acquisitions and Thermo Development, Inc., in its capacity as the representative of the Thermo Stockholders as set forth therein (the “Stockholders’ Representative”). Thermo Acquisitions is controlled by James Monroe III, Executive Chairman of the Board of Directors and Chief Executive Officer of Globalstar. Pursuant to the terms of the Merger Agreement, Merger Sub would merge with and into Thermo Acquisitions with Thermo Acquisitions continuing as the surviving corporation and a wholly owned subsidiary of Globalstar (the “Merger”). The transaction was unanimously recommended by the Special Committee of the Board of Directors of Globalstar, consisting entirely of disinterested independent directors, and unanimously approved by the full Board of Directors. On July 31, 2018, Globalstar, following the unanimous recommendation of its Special Committee of independent directors, and the Stockholders’ Representative terminated the Merger Agreement by mutual written agreement by entering into a Termination of Agreement and Plan of Merger, between Globalstar and the Stockholders’ Representative. In addition, on July 31, 2018, the Voting Agreement between Globalstar and certain of its stockholders terminated in accordance with its terms as a result of the termination of the Merger Agreement. No termination fees are payable in connection with the termination of the Merger Agreement. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Globalstar, Inc. (“Globalstar” or the “Company”) provides Mobile Satellite Services (“MSS”) including voice and data communications services through its global satellite network. Thermo Capital Partners LLC, through its affiliates (collectively, “Thermo”), is the principal owner and largest stockholder of Globalstar. The Company’s Chairman and Chief Executive Officer 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, 2017 , as filed with the SEC on February 22, 2018 (the “ 2017 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, and condensed consolidated statements of cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the full year or any future period. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) No. 2016-02, Leases . The main difference between the provisions of ASU No. 2016-02 and previous U.S. GAAP is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. ASU No. 2016-02 retains a distinction between finance leases and operating leases, and the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right-of-use assets and lease liabilities. The accounting applied by a lessor is largely unchanged from that applied under previous U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which provides for the election of transition methods between the modified retrospective method and the optional transition relief method. The modified retrospective method is applied to all prior reporting periods presented with a cumulative-effect adjustment recorded in the earliest comparative period while the optional transition relief method is applied beginning in the period of adoption with a cumulative-effect adjustment recorded in the first quarter of 2019. This ASU is effective for public business entities in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company has an internal project team that is currently evaluating the impact this standard will have on its financial statements, accounting systems and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments . ASU No. 2016-13 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 March 2017, the FASB issued ASU No. 2017-08: Receivables—Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities . This ASU amends current US GAAP to shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. This standard will replace today's yield-to-maturity approach, which generally requires amortization of premium over the life of the instrument. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2018. 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. 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. Early adoption is permitted. Companies may apply the guidance in the period of adoption or retrospectively to each period in which the income tax effects of the Tax Act related to items in accumulated other comprehensive income are recognized. The Company is currently evaluating the impact this standard will have on its financial statements and 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. Early adoption is permitted as of the beginning of any interim or annual reporting period. When adopted, the new guidance should be applied to all new grants and other transition provisions are included in the guidance to simplify this adoption for most companies. The Company does not expect it to have a material effect on the Company's financial statements and related disclosures. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 became effective for annual reporting periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. See Note 2: Revenue for further discussion, including the impact on the Company's condensed consolidated financial statements and required disclosures. In February 2017, the FASB issued No. ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . ASU 2017-05 was issued to provide clarity on the scope and application for recognizing gains and losses from the sale or transfer of nonfinancial assets, and should be adopted concurrently with ASU 2014-09, Revenue from Contracts with Customers . This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishment of Liabilities: Recognition of Breakage for Certain Prepaid Stored Value Products . ASU No. 2016-04 contains specific guidance for the derecognition of prepaid stored-value product liabilities within the scope of this ASU. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In August 2016, the FASB issued ASU No. 2016-15, S tatement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments . ASU No. 2016-15 is intended to reduce diversity and clarify the classification of how certain cash receipts and cash payments are presented in the statement of cash flows. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. ASU No. 2016-16 requires entities to account for the income tax effects of intercompany sales and transfers of assets other than inventory when the transfer occurs rather than current guidance which requires companies to defer the income tax effects of intercompany transfers of an asset until the asset has been sold to an outside party or otherwise recognized. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash . ASU No. 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Company adopted this standard effective with reporting periods beginning on January 1, 2017 and added required disclosures pursuant to ASC No. 2016-18 to its condensed consolidated statements of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business . ASU No. 2017-01 most significantly revises guidance specific to the definition of a business related to accounting for acquisitions. Additionally, ASU No. 2017-01 also affects other areas of US GAAP, such as the definition of a business related to the consolidation of variable interest entities, the consolidation of a subsidiary or group of assets, components of an operating segment, and disposals of reporting units and the impact on goodwill. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In February 2017, the FASB issued ASU No. 2017-07: Compensation—Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 requires sponsors of benefit plans to present the service cost component of net periodic benefit cost in the same income statement line or items as other employee costs and present the remaining components of net periodic benefit cost in one or more separate line items outside of income from operations. This ASU also limits the capitalization of benefit costs to only the service cost component. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. As a result of the retrospective adoption of this standard, for the three and six months ended June 30, 2017 , the Company reclassified less than $0.1 million and $0.1 million , respectively, from marketing, general and administrative expense to other income (expense). The service cost component of periodic benefit cost is the only cost that remains in income from operations; all other periodic benefit costs, including interest cost, expected return on plan assets and amortization of amounts deferred from previous periods are now reflected outside of income from operations and reflected in the other income (expense) line item on the Company's condensed consolidated statements of operations. There were no other changes to the Company's condensed consolidated financial statements or disclosures. In May 2017, the FASB issued ASU No. 2017-09: Compensation—Stock Compensation: Scope of Modification Accounting. This ASU clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Under the new guidance, a company will apply modification accounting only if the fair value, vesting conditions or classification of the award change due to a modification in the terms or conditions of the share-based payment award. This ASU became effective for public entities for annual and interim periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements or related disclosures. In July 2017, the FASB issued ASU No. 2017-11: I. Accounting for Certain Financial Instruments With Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception. Part I of this ASU reduces the complexity associated with accounting for certain financial instruments with down round features. Part II of this ASU recharacterizes the indefinite deferral provisions described in Topic 480: Distinguishing Liabilities from Equity. It does not have an accounting effect. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2018. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Company adopted this ASU on October 1, 2017. The Company evaluated its debt and related derivative instruments and determined that this standard did not have an impact on the Company's condensed consolidated financial statements or related disclosures. |
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. These embedded derivatives required bifurcation from the debt host agreement and are recorded as a derivative liability on the Company’s condensed consolidated balance sheets with a corresponding debt discount netted against the principal amount of the related debt instrument. The Company accretes the debt discount associated with each derivative liability to interest expense over the term of the related debt instrument using an effective interest rate method. 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. The Company determined the fair value of its compound embedded derivative liabilities using a Monte Carlo simulation model. See Note 6: Fair Value Measurements for further discussion. |
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). |
Earnings (Loss) Per Share | Basic earnings (loss) per share are computed based on the weighted average number of shares of common stock outstanding during the period. Common stock equivalents are included in the calculation of diluted earnings per share only when the effect of their inclusion would be dilutive. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) Three and Six Months Ended June 30, 2018 Impact on change in accounting policy Three months ended June 30, 2018 Six months ended June 30, 2018 As reported Impact of ASC 606 Legacy GAAP As reported Impact of Legacy GAAP Service revenue $ 27,995 $ 333 $ 28,328 $ 54,005 $ 1,145 $ 55,150 Subscriber equipment sales 5,731 (117 ) 5,614 8,470 (81 ) 8,389 Cost of subscriber equipment sales 4,170 (83 ) 4,087 6,342 (64 ) 6,278 Marketing, general and administrative 15,944 (6 ) 15,938 27,219 (150 ) 27,069 Other (3,351 ) 7 (3,344 ) (4,013 ) (42 ) (4,055 ) Net income (loss) (7,012 ) 298 (6,714 ) 80,918 1,320 82,238 Total comprehensive income (loss) (4,382 ) 298 (4,084 ) 83,218 1,320 84,538 Net income (loss) per common share: Basic $ (0.01 ) $ — $ (0.01 ) $ 0.06 $ 0.01 $ 0.07 Diluted (0.01 ) — (0.01 ) 0.06 — 0.06 Condensed Consolidated Balance Sheet As of June 30, 2018 Impact on change in accounting policy June 30, 2018 As reported Impact of ASC 606 Legacy GAAP Accounts receivable, net $ 19,886 $ (219 ) $ 19,667 Prepaid expenses and other current assets 8,879 47 8,926 Intangible and other assets, net 31,395 (1,994 ) 29,401 Deferred revenue, current and long-term 38,824 (473 ) 38,351 Retained earnings (deficit) (1,487,291 ) 1,773 (1,485,518 ) |
Disaggregation of revenue | The following table discloses revenue disaggregated by type of product and service (amounts in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 (1) June 30, 2018 June 30, 2017 (1) Service revenue: Duplex $ 10,134 $ 9,322 $ 18,917 $ 16,920 SPOT 13,868 11,193 26,830 21,590 Simplex 3,216 2,526 6,305 4,942 IGO 216 376 425 587 Other 561 884 1,528 1,743 Total service revenue 27,995 24,301 54,005 45,782 Subscriber equipment sales: Duplex $ 750 $ 612 $ 1,181 $ 1,511 SPOT 1,908 1,815 3,341 3,051 Simplex 2,846 1,072 3,650 1,979 IGO 136 330 206 469 Other 91 (7 ) 92 (17 ) Total subscriber equipment sales 5,731 3,822 8,470 6,993 Total revenue $ 33,726 $ 28,123 $ 62,475 $ 52,775 (1) As noted above, prior periods have not been adjusted under the modified retrospective method of adoption. The following table discloses revenue disaggregated by geographical market (amounts in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 (1) June 30, 2018 June 30, 2017 (1) Service revenue: United States $ 20,106 $ 16,657 $ 38,485 $ 31,935 Canada 4,794 4,457 9,280 8,158 Europe 2,404 2,223 4,650 3,954 Central and South America 612 840 1,181 1,490 Others 79 124 409 245 Total service revenue 27,995 24,301 54,005 45,782 Subscriber equipment sales: United States $ 3,460 $ 2,334 $ 5,055 $ 4,114 Canada 793 828 1,143 1,542 Europe 1,040 358 1,428 775 Central and South America 338 294 726 553 Others 100 8 118 9 Total subscriber equipment sales 5,731 3,822 8,470 6,993 Total revenue $ 33,726 $ 28,123 $ 62,475 $ 52,775 (1) As noted above, prior periods have not been adjusted under the modified retrospective method of adoption. |
Contract with customer, asset and liability | The following table discloses information about accounts receivable, costs to obtain a contract, and contract liabilities from contracts with customers (amounts in thousands): June 30, 2018 January 1, 2018 Accounts receivable $ 19,886 $ 17,113 Capitalized costs to obtain a contract 2,082 2,265 Contract liabilities 38,824 37,799 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consists of the following (in thousands): June 30, December 31, Globalstar System: Space component First and second-generation satellites in service $ 1,195,291 $ 1,195,426 Second-generation satellite, on-ground spare 32,481 32,481 Ground component 211,048 48,710 Construction in progress: Ground component 71,145 227,167 Next-generation software upgrades 1,314 12,414 Other 1,712 2,575 Total Globalstar System 1,512,991 1,518,773 Internally developed and purchased software 25,689 16,132 Equipment 10,656 9,966 Land and buildings 3,174 3,322 Leasehold improvements 1,970 1,969 Total property and equipment 1,554,480 1,550,162 Accumulated depreciation (619,444 ) (579,043 ) Total property and equipment, net $ 935,036 $ 971,119 |
Long-Term Debt and Other Fina20
Long-Term Debt and Other Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following (in thousands): June 30, 2018 December 31, 2017 Principal Amount Unamortized Discount and Deferred Financing Costs Carrying Value Principal Amount Unamortized Discount and Deferred Financing Costs Carrying Value Facility Agreement $ 428,323 $ 29,277 $ 399,046 $ 467,256 $ 34,459 $ 432,797 Loan Agreement with Thermo 112,616 24,566 88,050 106,054 26,333 79,721 8.00% Convertible Senior Notes Issued in 2013 1,363 — 1,363 1,348 — 1,348 Total Debt 542,302 53,843 488,459 574,658 60,792 513,866 Less: Current Portion 87,732 — 87,732 79,215 — 79,215 Long-Term Debt $ 454,570 $ 53,843 $ 400,727 $ 495,443 $ 60,792 $ 434,651 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of derivative instruments | The following table discloses the fair values of the derivative instruments on the Company’s condensed consolidated balance sheets (in thousands): June 30, 2018 December 31, 2017 Derivative liabilities: Compound embedded derivative with the 2013 8.00% Notes $ (939 ) $ (1,326 ) Compound embedded derivative with the Loan Agreement with Thermo (120,161 ) (226,659 ) Total derivative liabilities $ (121,100 ) $ (227,985 ) |
Schedule of derivative gains (losses) | 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 Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Interest rate cap $ — $ (1 ) $ — $ (3 ) Compound embedded derivative with the 2013 8.00% Notes (934 ) (11,354 ) 387 (10,196 ) Compound embedded derivative with the Loan Agreement with Thermo (1,125 ) (65,775 ) 106,498 (63,708 ) Total derivative gain (loss) $ (2,059 ) $ (77,130 ) $ 106,885 $ (73,907 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial liabilities measured at fair value on recurring basis | The following tables provide a summary of the financial liabilities measured at fair value on a recurring basis (in thousands): June 30, 2018 (Level 1) (Level 2) (Level 3) Total Balance Liabilities: Compound embedded derivative with the 2013 8.00% Notes — — (939 ) (939 ) Compound embedded derivative with the Loan Agreement with Thermo — — (120,161 ) (120,161 ) Total liabilities measured at fair value $ — $ — $ (121,100 ) $ (121,100 ) December 31, 2017 (Level 1) (Level 2) (Level 3) Total Balance Liabilities: Compound embedded derivative with the 2013 8.00% Notes — — (1,326 ) (1,326 ) Compound embedded derivative with the Loan Agreement with Thermo — — (226,659 ) (226,659 ) Total liabilities measured at fair value $ — $ — $ (227,985 ) $ (227,985 ) |
Schedule of significant quantitative level 3 inputs utilized | The significant quantitative Level 3 inputs utilized in the valuation models are shown in the tables below: June 30, 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% - 130% 2.7 % $ 0.73 25 % $ 0.49 Compound embedded derivative with the Loan Agreement with Thermo 40% - 130% 2.7 % $ 0.73 25 % $ 0.49 December 31, 2017 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 78 % 1.4 % $ 0.73 27 % $ 1.31 Compound embedded derivative with the Loan Agreement with Thermo 40% - 77% 2.2 % $ 0.73 27 % $ 1.31 |
Rollforward of liabilities measured at fair value | 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ (119,041 ) $ (277,946 ) $ (227,985 ) $ (281,171 ) Unrealized gain (loss), included in derivative gain (loss) (2,059 ) (77,129 ) 106,885 (73,904 ) Balance at end of period $ (121,100 ) $ (355,075 ) $ (121,100 ) $ (355,075 ) |
Schedule of carrying values and estimated fair values of debt instruments | 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): June 30, 2018 December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Loan Agreement with Thermo $ 88,050 $ 67,040 $ 79,721 $ 54,936 2013 8.00% Notes 1,363 751 1,348 1,295 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic weighted average share to diluted weighted average common shares outstanding | The following table sets forth the calculation of basic and diluted earnings (loss) per share and reconciles basic weighted average shares to diluted weighted average shares of common stock outstanding for the periods indicated (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) $ (7,012 ) $ (98,734 ) $ 80,918 $ (118,895 ) Effect of dilutive securities: 2013 8.00% Notes — — 38 — Loan Agreement with Thermo — — 5,855 — Income (loss) to common stockholders plus assumed conversions $ (7,012 ) $ (98,734 ) $ 86,811 $ (118,895 ) Weighted average common shares outstanding: Basic shares outstanding 1,263,372 1,128,985 1,262,857 1,121,518 Incremental shares from assumed exercises, conversions and other issuance of: Stock options, restricted stock, restricted stock units and ESPP — — 5,335 — 2013 8.00% Notes — — 2,087 — Loan Agreement with Thermo — — 172,414 — Diluted shares outstanding 1,263,372 1,128,985 1,442,693 1,121,518 Net income (loss) per share: Basic $ (0.01 ) $ (0.09 ) $ 0.06 $ (0.11 ) Diluted (0.01 ) (0.09 ) 0.06 (0.11 ) |
Condensed Consolidating Finan24
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental condensed consolidating statement of operations | Globalstar, Inc. Condensed Consolidating Statement of Operations Three Months Ended June 30, 2018 (Unaudited) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated (In thousands) Revenue: Service revenue $ 23,270 $ 10,292 $ 16,406 $ (21,973 ) $ 27,995 Subscriber equipment sales 204 5,348 1,375 (1,196 ) 5,731 Total revenue 23,474 15,640 17,781 (23,169 ) 33,726 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 6,745 1,498 2,294 (1,011 ) 9,526 Cost of subscriber equipment sales 165 4,281 919 (1,195 ) 4,170 Marketing, general and administrative 11,382 1,457 24,078 (20,973 ) 15,944 Revision to contract termination charge (20,478 ) — — — (20,478 ) Depreciation, amortization and accretion 21,349 68 1,199 — 22,616 Total operating expenses 19,163 7,304 28,490 (23,179 ) 31,778 Income (loss) from operations 4,311 8,336 (10,709 ) 10 1,948 Other income (expense): Interest income and expense, net of amounts capitalized (10,335 ) (2 ) 3 29 (10,305 ) Derivative loss (2,059 ) — — — (2,059 ) Gain on legal settlement 6,779 — — — 6,779 Equity in subsidiary earnings (loss) (5,800 ) (6,241 ) — 12,041 — Other 92 293 (3,725 ) (11 ) (3,351 ) Total other income (expense) (11,323 ) (5,950 ) (3,722 ) 12,059 (8,936 ) Income (loss) before income taxes (7,012 ) 2,386 (14,431 ) 12,069 (6,988 ) Income tax expense — 10 14 — 24 Net income (loss) $ (7,012 ) $ 2,376 $ (14,445 ) $ 12,069 $ (7,012 ) Comprehensive income (loss) $ (7,012 ) $ 2,376 $ (11,793 ) $ 12,047 $ (4,382 ) Globalstar, Inc. Condensed Consolidating Statement of Operations Three Months Ended June 30, 2017 (Unaudited) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated (In thousands) Revenue: Service revenue $ 18,685 $ 9,846 $ 13,096 $ (17,326 ) $ 24,301 Subscriber equipment sales 60 3,702 1,491 (1,431 ) 3,822 Total revenue 18,745 13,548 14,587 (18,757 ) 28,123 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 6,415 1,403 1,974 (756 ) 9,036 Cost of subscriber equipment sales 32 3,106 1,525 (1,885 ) 2,778 Marketing, general and administrative 5,241 997 19,357 (16,122 ) 9,473 Depreciation, amortization and accretion 19,101 120 54 — 19,275 Total operating expenses 30,789 5,626 22,910 (18,763 ) 40,562 Income (loss) from operations (12,044 ) 7,922 (8,323 ) 6 (12,439 ) Other income (expense): Gain on equity issuance 1,964 — — — 1,964 Interest income and expense, net of amounts capitalized (8,829 ) 7 (32 ) 4 (8,850 ) Derivative loss (77,130 ) — — — (77,130 ) Equity in subsidiary earnings (loss) (1,282 ) (4,076 ) — 5,358 — Other (1,413 ) (337 ) (418 ) (5 ) (2,173 ) Total other income (expense) (86,690 ) (4,406 ) (450 ) 5,357 (86,189 ) Income (loss) before income taxes (98,734 ) 3,516 (8,773 ) 5,363 (98,628 ) Income tax expense — 4 102 — 106 Net income (loss) $ (98,734 ) $ 3,512 $ (8,875 ) $ 5,363 $ (98,734 ) Comprehensive income (loss) $ (98,734 ) $ 3,512 $ (8,911 ) $ 5,354 $ (98,779 ) Globalstar, Inc. Condensed Consolidating Statement of Operations Six Months Ended June 30, 2018 (Unaudited) Parent Guarantor Non- Eliminations Consolidated (In thousands) Revenue: Service revenue $ 43,804 $ 19,366 $ 32,014 $ (41,179 ) $ 54,005 Subscriber equipment sales 251 7,397 2,571 (1,749 ) 8,470 Total revenue 44,055 26,763 34,585 (42,928 ) 62,475 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 13,002 2,888 5,162 (2,497 ) 18,555 Cost of subscriber equipment sales 206 6,091 1,794 (1,749 ) 6,342 Marketing, general and administrative 18,467 2,521 44,941 (38,710 ) 27,219 Revision to contract termination charge (20,478 ) — — — (20,478 ) Depreciation, amortization and accretion 40,393 164 1,290 — 41,847 Total operating expenses 51,590 11,664 53,187 (42,956 ) 73,485 Income (loss) from operations (7,535 ) 15,099 (18,602 ) 28 (11,010 ) Other income (expense): Interest income and expense, net of amounts capitalized (17,721 ) (4 ) 17 50 (17,658 ) Derivative gain 106,885 — — — 106,885 Gain on legal settlement 6,779 — — — 6,779 Equity in subsidiary earnings (loss) (7,120 ) (9,628 ) — 16,748 — Other (370 ) 117 (3,733 ) (27 ) (4,013 ) Total other income (expense) 88,453 (9,515 ) (3,716 ) 16,771 91,993 Income (loss) before income taxes 80,918 5,584 (22,318 ) 16,799 80,983 Income tax expense — 16 49 — 65 Net income (loss) $ 80,918 $ 5,568 $ (22,367 ) $ 16,799 $ 80,918 Comprehensive income (loss) $ 80,918 $ 5,568 $ (20,039 ) $ 16,771 $ 83,218 Globalstar, Inc. Condensed Consolidating Statement of Operations Six Months Ended June 30, 2017 (Unaudited) Parent Guarantor Non- Eliminations Consolidated (In thousands) Revenue: Service revenue $ 36,297 $ 19,202 $ 24,097 $ (33,814 ) $ 45,782 Subscriber equipment sales 127 5,993 2,841 (1,968 ) 6,993 Total revenue 36,424 25,195 26,938 (35,782 ) 52,775 Operating expenses: Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) 12,543 2,828 5,147 (2,508 ) 18,010 Cost of subscriber equipment sales 66 4,823 1,952 (1,967 ) 4,874 Marketing, general and administrative 10,828 2,116 37,265 (31,318 ) 18,891 Depreciation, amortization and accretion 38,052 402 115 — 38,569 Total operating expenses 61,489 10,169 44,479 (35,793 ) 80,344 Income (loss) from operations (25,065 ) 15,026 (17,541 ) 11 (27,569 ) Other income (expense): Gain (loss) on equity issuance 2,706 — (36 ) — 2,670 Interest income and expense, net of amounts capitalized (17,584 ) (1 ) (101 ) 8 (17,678 ) Derivative loss (73,907 ) — — — (73,907 ) Equity in subsidiary earnings (loss) (3,215 ) (7,510 ) — 10,725 — Other (1,830 ) (437 ) 5 (7 ) (2,269 ) Total other income (expense) (93,830 ) (7,948 ) (132 ) 10,726 (91,184 ) Income (loss) before income taxes (118,895 ) 7,078 (17,673 ) 10,737 (118,753 ) Income tax expense — 9 133 — 142 Net income (loss) $ (118,895 ) $ 7,069 $ (17,806 ) $ 10,737 $ (118,895 ) Comprehensive income (loss) $ (118,895 ) $ 7,069 $ (18,662 ) $ 10,728 $ (119,760 ) |
Supplemental condensed consolidating balance sheet | Globalstar, Inc. Condensed Consolidating Balance Sheet As of June 30, 2018 (Unaudited) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 7,955 $ 1,556 $ 3,295 $ — $ 12,806 Restricted cash 52,692 — — — 52,692 Accounts receivable, net of allowance 6,451 9,595 3,840 — 19,886 Intercompany receivables 1,083,354 790,014 85,101 (1,958,469 ) — Inventory 1,105 5,260 1,377 — 7,742 Prepaid expenses and other current assets 6,055 1,435 1,389 — 8,879 Total current assets 1,157,612 807,860 95,002 (1,958,469 ) 102,005 Property and equipment, net 855,526 1,322 78,183 5 935,036 Intercompany notes receivable 5,600 — 6,436 (12,036 ) — Investment in subsidiaries (281,595 ) 58,583 40,367 182,645 — Intangible and other assets, net 28,005 387 3,015 (12 ) 31,395 Total assets $ 1,765,148 $ 868,152 $ 223,003 $ (1,787,867 ) $ 1,068,436 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 87,732 $ — $ — $ — $ 87,732 Accounts payable 2,436 3,152 1,400 — 6,988 Accrued expenses 10,198 7,397 5,295 — 22,890 Intercompany payables 742,918 812,978 402,534 (1,958,430 ) — Payables to affiliates 286 — — — 286 Derivative liabilities 939 — — — 939 Deferred revenue 1,498 24,073 7,476 — 33,047 Total current liabilities 846,007 847,600 416,705 (1,958,430 ) 151,882 Long-term debt, less current portion 400,727 — — — 400,727 Employee benefit obligations 4,458 — — — 4,458 Intercompany notes payable 6,436 — 5,600 (12,036 ) — Derivative liabilities 120,161 — — — 120,161 Deferred revenue 5,456 304 17 — 5,777 Other non-current liabilities 560 324 3,204 — 4,088 Total non-current liabilities 537,798 628 8,821 (12,036 ) 535,211 Stockholders’ equity (deficit) 381,343 19,924 (202,523 ) 182,599 381,343 Total liabilities and stockholders’ equity $ 1,765,148 $ 868,152 $ 223,003 $ (1,787,867 ) $ 1,068,436 Globalstar, Inc. Condensed Consolidating Balance Sheet As of December 31, 2017 (Unaudited) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 32,864 $ 4,942 $ 3,838 $ — $ 41,644 Restricted cash 63,635 — — — 63,635 Accounts receivable, net of allowance 7,129 6,524 3,460 — 17,113 Intercompany receivables 979,942 755,847 64,477 (1,800,266 ) — Inventory 1,182 4,610 1,481 — 7,273 Prepaid expenses and other current assets 3,149 2,414 1,182 — 6,745 Total current assets 1,087,901 774,337 74,438 (1,800,266 ) 136,410 Property and equipment, net 962,756 3,855 4,503 5 971,119 Intercompany notes receivable 5,600 — 6,436 (12,036 ) — Investment in subsidiaries (280,745 ) 84,244 38,637 157,864 — Intangible and other assets, net 18,353 47 3,348 (12 ) 21,736 Total assets $ 1,793,865 $ 862,483 $ 127,362 $ (1,654,445 ) $ 1,129,265 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 79,215 $ — $ — $ — $ 79,215 Accounts payable 2,257 2,736 1,055 — 6,048 Accrued contract termination charge 21,002 — — — 21,002 Accrued expenses 7,627 6,331 6,796 — 20,754 Intercompany payables 711,159 799,565 289,503 (1,800,227 ) — Payables to affiliates 225 — — — 225 Derivative liabilities 1,326 — — — 1,326 Deferred revenue 1,164 23,282 7,301 — 31,747 Total current liabilities 823,975 831,914 304,655 (1,800,227 ) 160,317 Long-term debt, less current portion 434,651 — — — 434,651 Employee benefit obligations 4,389 — — — 4,389 Intercompany notes payable 6,436 — 5,600 (12,036 ) — Derivative liabilities 226,659 — — — 226,659 Deferred revenue 5,625 410 17 — 6,052 Other non-current liabilities 906 325 4,742 — 5,973 Total non-current liabilities 678,666 735 10,359 (12,036 ) 677,724 Stockholders’ equity (deficit) 291,224 29,834 (187,652 ) 157,818 291,224 Total liabilities and stockholders’ equity $ 1,793,865 $ 862,483 $ 127,362 $ (1,654,445 ) $ 1,129,265 |
Supplemental condensed consolidating statement of cash flows | Globalstar, Inc. Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (Unaudited) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated (In thousands) Cash flows provided by (used in) operating activities $ 10,592 $ (2,545 ) $ (242 ) $ — $ 7,805 Cash flows used in investing activities: Second-generation network costs (including interest) (4,254 ) — (23 ) — (4,277 ) Property and equipment additions (2,207 ) (841 ) (173 ) — (3,221 ) Purchase of intangible assets (1,369 ) — (32 ) — (1,401 ) Net cash used in investing activities (7,830 ) (841 ) (228 ) — (8,899 ) Cash flows provided by (used in) financing activities: Principal payments of the Facility Agreement (38,933 ) — — — (38,933 ) Proceeds from issuance of common stock and exercise of options and warrants 319 — — — 319 Net cash used in financing activities (38,614 ) — — — (38,614 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (73 ) — (73 ) Net decrease in cash, cash equivalents and restricted cash (35,852 ) (3,386 ) (543 ) — (39,781 ) Cash, cash equivalents and restricted cash, beginning of period 96,499 4,942 3,838 — 105,279 Cash, cash equivalents and restricted cash, end of period $ 60,647 $ 1,556 $ 3,295 $ — $ 65,498 Globalstar, Inc. Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 (Unaudited) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated (In thousands) Cash flows provided by operating activities $ 4,008 $ 1,068 $ 1,180 $ — $ 6,256 Cash flows used in investing activities: Second-generation network costs (including interest) (6,498 ) — (32 ) — (6,530 ) Property and equipment additions (1,637 ) (420 ) (59 ) — (2,116 ) Purchase of intangible assets (1,552 ) — (492 ) — (2,044 ) Net cash used in investing activities (9,687 ) (420 ) (583 ) — (10,690 ) Cash flows provided by (used in) financing activities: Principal payments of the Facility Agreement (21,695 ) — — — (21,695 ) Proceeds from Thermo Common Stock Purchase Agreement 33,000 — — — 33,000 Payment of debt restructuring fee (20,795 ) — — — (20,795 ) Payment of debt amendment fee (255 ) — — — (255 ) Proceeds from issuance of stock to Terrapin 12,000 — — — 12,000 Proceeds from issuance of common stock and exercise of options and warrants 635 — — — 635 Net cash provided by financing activities 2,890 — — — 2,890 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 84 — 84 Net increase (decrease) in cash, cash equivalents and restricted cash (2,789 ) 648 681 — (1,460 ) Cash, cash equivalents and restricted cash, beginning of period 45,242 1,327 1,644 — 48,213 Cash, cash equivalents and restricted cash, end of period $ 42,453 $ 1,975 $ 2,325 $ — $ 46,753 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Marketing, general and administrative (less than during three months ended June 30, 2017) | $ (15,944) | $ (9,473) | $ (27,219) | $ (18,891) |
Other income (expense) (less than during three months ended June 30, 2017) | $ (8,936) | (86,189) | $ 91,993 | (91,184) |
Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Marketing, general and administrative (less than during three months ended June 30, 2017) | 100 | 100 | ||
Other income (expense) (less than during three months ended June 30, 2017) | $ (100) | $ (100) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Retained deficit | $ (1,487,291) | $ (1,487,291) | $ (1,571,302) | |
Contract with customer, assets | 300 | 300 | $ 100 | |
Accounts receivable, net | 19,886 | 19,886 | 17,113 | |
Contract with customer, impairment losses on receivables | $ 800 | $ 1,800 | ||
Capitalized contract cost, amortization period | 3 years | 3 years | ||
Capitalized contract cost, amortization on previously capitalized costs | $ 400 | $ 800 | ||
Contract liabilities | 38,824 | 38,824 | $ 37,799 | |
Contract with customer, revenue recognized | 22,600 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Retained deficit | 1,773 | 1,773 | $ 3,100 | |
Accounts receivable, net | (219) | (219) | ||
Contract liabilities | (473) | $ (473) | ||
Services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Threshold period for invoice payments due | 30 days | |||
IGO | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | $ 8,500 | $ 8,500 | ||
Minimum | Subscriber Equipment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Threshold period for invoice payments due | 30 days | |||
Maximum | Subscriber Equipment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Threshold period for invoice payments due | 60 days |
Revenue - Condensed Consolidate
Revenue - Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 33,726 | $ 28,123 | $ 62,475 | $ 52,775 |
Marketing, general and administrative | 15,944 | 9,473 | 27,219 | 18,891 |
Other | (3,351) | (2,173) | (4,013) | (2,269) |
Net income (loss) | (7,012) | (98,734) | 80,918 | (118,895) |
Total comprehensive income (loss) | $ (4,382) | $ (98,779) | $ 83,218 | $ (119,760) |
Net income (loss) per common share: | ||||
Basic (USD per share) | $ (0.01) | $ (0.09) | $ 0.06 | $ (0.11) |
Diluted (USD per share) | $ (0.01) | $ (0.09) | $ 0.06 | $ (0.11) |
Impact of ASC 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Marketing, general and administrative | $ (6) | $ (150) | ||
Other | 7 | (42) | ||
Net income (loss) | 298 | 1,320 | ||
Total comprehensive income (loss) | $ 298 | $ 1,320 | ||
Net income (loss) per common share: | ||||
Basic (USD per share) | $ 0 | $ 0.01 | ||
Diluted (USD per share) | $ 0 | $ 0 | ||
Legacy GAAP | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Marketing, general and administrative | $ 15,938 | $ 27,069 | ||
Other | (3,344) | (4,055) | ||
Net income (loss) | (6,714) | 82,238 | ||
Total comprehensive income (loss) | $ (4,084) | $ 84,538 | ||
Net income (loss) per common share: | ||||
Basic (USD per share) | $ (0.01) | $ 0.07 | ||
Diluted (USD per share) | $ (0.01) | $ 0.06 | ||
Services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 27,995 | $ 24,301 | $ 54,005 | $ 45,782 |
Cost of goods and services | 9,526 | 9,036 | 18,555 | 18,010 |
Services | Impact of ASC 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 333 | 1,145 | ||
Services | Legacy GAAP | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 28,328 | 55,150 | ||
Subscriber equipment sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 5,731 | 3,822 | 8,470 | 6,993 |
Cost of goods and services | 4,170 | $ 2,778 | 6,342 | $ 4,874 |
Subscriber equipment sales | Impact of ASC 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | (117) | (81) | ||
Cost of goods and services | (83) | (64) | ||
Subscriber equipment sales | Legacy GAAP | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 5,614 | 8,389 | ||
Cost of goods and services | $ 4,087 | $ 6,278 |
Revenue - Condensed Consolida28
Revenue - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 19,886 | $ 17,113 | |
Prepaid expenses and other current assets | 8,879 | 6,745 | |
Intangible and other assets, net | 31,395 | 21,736 | |
Deferred revenue, current and long-term | 38,824 | 37,799 | |
Retained earnings (deficit) | (1,487,291) | $ (1,571,302) | |
Impact of ASC 606 | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | (219) | ||
Prepaid expenses and other current assets | 47 | ||
Intangible and other assets, net | (1,994) | ||
Deferred revenue, current and long-term | (473) | ||
Retained earnings (deficit) | 1,773 | $ 3,100 | |
Legacy GAAP | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 19,667 | ||
Prepaid expenses and other current assets | 8,926 | ||
Intangible and other assets, net | 29,401 | ||
Deferred revenue, current and long-term | 38,351 | ||
Retained earnings (deficit) | $ (1,485,518) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 33,726 | $ 28,123 | $ 62,475 | $ 52,775 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 27,995 | 24,301 | 54,005 | 45,782 |
Services | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 20,106 | 16,657 | 38,485 | 31,935 |
Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 4,794 | 4,457 | 9,280 | 8,158 |
Services | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2,404 | 2,223 | 4,650 | 3,954 |
Services | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 612 | 840 | 1,181 | 1,490 |
Services | Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 79 | 124 | 409 | 245 |
Services, Duplex | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 10,134 | 9,322 | 18,917 | 16,920 |
Services, SPOT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 13,868 | 11,193 | 26,830 | 21,590 |
Services, Simplex | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 3,216 | 2,526 | 6,305 | 4,942 |
Services, IGO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 216 | 376 | 425 | 587 |
Services, Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 561 | 884 | 1,528 | 1,743 |
Subscriber Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 5,731 | 3,822 | 8,470 | 6,993 |
Subscriber Equipment | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 3,460 | 2,334 | 5,055 | 4,114 |
Subscriber Equipment | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 793 | 828 | 1,143 | 1,542 |
Subscriber Equipment | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,040 | 358 | 1,428 | 775 |
Subscriber Equipment | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 338 | 294 | 726 | 553 |
Subscriber Equipment | Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 100 | 8 | 118 | 9 |
Subscriber Equipment, Duplex | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 750 | 612 | 1,181 | 1,511 |
Subscriber Equipment, SPOT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,908 | 1,815 | 3,341 | 3,051 |
Subscriber Equipment, Simplex | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2,846 | 1,072 | 3,650 | 1,979 |
Subscriber Equipment, IGO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 136 | 330 | 206 | 469 |
Subscriber Equipment, Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 91 | $ (7) | $ 92 | $ (17) |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 19,886 | $ 17,113 |
Capitalized costs to obtain a contract | 2,082 | 2,265 |
Contract liabilities | $ 38,824 | $ 37,799 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 33 |
Revenue remaining performance obligation, percentage | 85.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 2.9 |
Revenue remaining performance obligation, percentage | 7.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 years |
Single Customer Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 2.9 |
Revenue remaining performance obligation, percentage | 8.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,554,480 | $ 1,550,162 |
Accumulated depreciation | (619,444) | (579,043) |
Total property and equipment, net | 935,036 | 971,119 |
Internally developed and purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 25,689 | 16,132 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,656 | 9,966 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,174 | 3,322 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,970 | 1,969 |
Globalstar System | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,512,991 | 1,518,773 |
Globalstar System | Ground component | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 211,048 | 48,710 |
Globalstar System | First and second-generation satellites in service | Space component | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,195,291 | 1,195,426 |
Globalstar System | Second-generation satellite, on-ground spare | Space component | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 32,481 | 32,481 |
Globalstar System | Construction in progress | Ground component | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 71,145 | 227,167 |
Globalstar System | Construction in progress | Next-generation software upgrades | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,314 | 12,414 |
Globalstar System | Construction in progress | Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,712 | $ 2,575 |
Long-Term Debt and Other Fina33
Long-Term Debt and Other Financing Arrangements - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | May 20, 2013 |
Principal Amount | |||
Total Debt | $ 542,302 | $ 574,658 | |
Less: Current Portion | 87,732 | 79,215 | |
Long-Term Debt | 454,570 | 495,443 | |
Unamortized Discount and Deferred Financing Costs | |||
Total Debt | 53,843 | 60,792 | |
Less: Current Portion | 0 | 0 | |
Less: Current Portion | 53,843 | 60,792 | |
Carrying Value | |||
Total Debt | 488,459 | 513,866 | |
Less: Current Portion | 87,732 | 79,215 | |
Long-Term Debt | 400,727 | 434,651 | |
Facility Agreement | |||
Principal Amount | |||
Total Debt | 428,323 | 467,256 | |
Unamortized Discount and Deferred Financing Costs | |||
Total Debt | 29,277 | 34,459 | |
Carrying Value | |||
Total Debt | 399,046 | 432,797 | |
Loan Agreement with Thermo | |||
Principal Amount | |||
Total Debt | 112,616 | 106,054 | |
Unamortized Discount and Deferred Financing Costs | |||
Total Debt | 24,566 | 26,333 | |
Carrying Value | |||
Total Debt | $ 88,050 | 79,721 | |
8.00% Convertible Senior Notes Issued in 2013 | |||
Debt Instrument [Line Items] | |||
Loan interest rate | 8.00% | 8.00% | |
Principal Amount | |||
Total Debt | $ 1,363 | 1,348 | |
Unamortized Discount and Deferred Financing Costs | |||
Total Debt | 0 | 0 | |
Carrying Value | |||
Total Debt | $ 1,363 | $ 1,348 |
Long-Term Debt and Other Fina34
Long-Term Debt and Other Financing Arrangements - Facility Agreement (Details) - Facility Agreement $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Interest above LIBOR rate | 3.25% |
Percentage of guarantee provided by French export credit agency to lending syndicate | 95.00% |
Debt service reserve account | $ 52.7 |
Domestic Subsidiaries | |
Debt Instrument [Line Items] | |
Percentage of equity pledged as collateral | 100.00% |
Foreign Subsidiaries | |
Debt Instrument [Line Items] | |
Percentage of equity pledged as collateral | 65.00% |
Minimum | |
Debt Instrument [Line Items] | |
Interest rate increase | 0.50% |
Maximum | |
Debt Instrument [Line Items] | |
Interest rate increase | 5.75% |
Long-Term Debt and Other Fina35
Long-Term Debt and Other Financing Arrangements - Thermo Loan Agreement (Details) - Loan Agreement with Thermo - Thermo $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Loan interest rate | 12.00% |
Maturity period after full payment of Facility Agreement | 6 months |
Outstanding interest | $ 69.1 |
Long-Term Debt and Other Fina36
Long-Term Debt and Other Financing Arrangements - 8.00% Convertible Senior Notes Issued in 2013 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 61 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | May 20, 2013 | |
Debt Instrument [Line Items] | ||||
Debt conversion, converted instrument, settlement period | 40 days | |||
8.00% Convertible Senior Notes Issued in 2013 | ||||
Debt Instrument [Line Items] | ||||
Loan interest rate | 8.00% | 8.00% | 8.00% | 8.00% |
Conversion price per share of common stock (USD per share) | $ 0.73 | |||
Interest rate, payable in cash | 5.75% | |||
Interest rate, payable in additional notes | 2.25% | |||
Debt conversion, converted instrument, amount | $ 55,400,000 | |||
Debt conversion, converted instrument, shares issued (in shares) | 98,500,000 | |||
Conversions during period (in shares) | 0 | 0 | ||
Unamortized debt discount | $ 0 | $ 0 | $ 0 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative liabilities: | ||
Total derivative liabilities | $ (121,100) | $ (227,985) |
Compound embedded derivative with the 2013 8.00% Notes | ||
Derivative liabilities: | ||
Total derivative liabilities | (939) | (1,326) |
Compound embedded derivative with the Loan Agreement with Thermo | ||
Derivative liabilities: | ||
Total derivative liabilities | $ (120,161) | $ (226,659) |
Compound embedded derivative with the 2013 8.00% Notes | ||
Derivatives, Fair Value [Line Items] | ||
Loan interest rate | 8.00% |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivative gain (loss) | $ (2,059) | $ (77,130) | $ 106,885 | $ (73,907) |
Interest rate cap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivative gain (loss) | 0 | (1) | 0 | (3) |
Compound embedded derivative with the 2013 8.00% Notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivative gain (loss) | (934) | (11,354) | 387 | (10,196) |
Compound embedded derivative with the Loan Agreement with Thermo | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total derivative gain (loss) | $ (1,125) | $ (65,775) | $ 106,498 | $ (63,708) |
Compound embedded derivative with the 2013 8.00% Notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loan interest rate | 8.00% | 8.00% |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | 1 Months Ended | |||
Jun. 30, 2009USD ($)contract | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | May 20, 2013 | |
8.00% Convertible Senior Notes Issued in 2013 | ||||
Derivative [Line Items] | ||||
Loan interest rate | 8.00% | 8.00% | ||
Interest rate cap | ||||
Derivative [Line Items] | ||||
Number of Interest rate cap agreements (in contracts) | contract | 5 | |||
Maturity period | 10 years | |||
Derivative asset | $ 0 | $ 0 | ||
Interest rate cap | Six-month LIBOR Rate | ||||
Derivative [Line Items] | ||||
Base rate to be capped, should the Base Rate not exceed 6.50% | 5.50% | |||
Interest on outstanding amounts on the Facility Agreement | 6.50% | |||
Base rate to be lowered from LIBOR, should the base rate exceed 6.50% | 1.00% | |||
Fee for interest rate cap agreements | $ 12.4 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan interest rate | 8.00% | |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | $ (121,100) | $ (227,985) |
Fair value, measurements, recurring | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (939) | (1,326) |
Fair value, measurements, recurring | Compound embedded derivative with the Loan Agreement with Thermo | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (120,161) | (226,659) |
Fair value, measurements, recurring | (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Fair value, measurements, recurring | (Level 1) | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Fair value, measurements, recurring | (Level 1) | Compound embedded derivative with the Loan Agreement with Thermo | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Fair value, measurements, recurring | (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Fair value, measurements, recurring | (Level 2) | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Fair value, measurements, recurring | (Level 2) | Compound embedded derivative with the Loan Agreement with Thermo | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Fair value, measurements, recurring | (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (121,100) | (227,985) |
Fair value, measurements, recurring | (Level 3) | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (939) | (1,326) |
Fair value, measurements, recurring | (Level 3) | Compound embedded derivative with the Loan Agreement with Thermo | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | $ (120,161) | $ (226,659) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018USD ($)contract | Dec. 31, 2017USD ($) | May 20, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stock issuance settlement period | 40 days | ||
(Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of derivatives (in contracts) | contract | 2 | ||
8.00% Convertible Senior Notes Issued in 2013 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loan interest rate | 8.00% | 8.00% | |
Interest rate cap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative asset | $ | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Significant Quantitative Level 3 Inputs Utilized (Details) | Jun. 30, 2018$ / shares | Dec. 31, 2017$ / shares |
Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan interest rate | 8.00% | |
Fair value, measurements, recurring | Stock Price Volatility | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.78 | |
Fair value, measurements, recurring | Stock Price Volatility | Compound embedded derivative with the 2013 8.00% Notes | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.40 | |
Fair value, measurements, recurring | Stock Price Volatility | Compound embedded derivative with the 2013 8.00% Notes | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 1.30 | |
Fair value, measurements, recurring | Stock Price Volatility | Compound embedded derivative with the Loan Agreement with Thermo | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.40 | 0.40 |
Fair value, measurements, recurring | Stock Price Volatility | Compound embedded derivative with the Loan Agreement with Thermo | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 1.30 | 0.77 |
Fair value, measurements, recurring | Risk-Free Interest Rate | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.027 | 0.014 |
Fair value, measurements, recurring | Risk-Free Interest Rate | Compound embedded derivative with the Loan Agreement with Thermo | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.027 | 0.022 |
Fair value, measurements, recurring | Note Conversion Price | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.73 | 0.73 |
Fair value, measurements, recurring | Note Conversion Price | Compound embedded derivative with the Loan Agreement with Thermo | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.73 | 0.73 |
Fair value, measurements, recurring | Discount Rate | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.25 | 0.27 |
Fair value, measurements, recurring | Discount Rate | Compound embedded derivative with the Loan Agreement with Thermo | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.25 | 0.27 |
Fair value, measurements, recurring | Market Price of Common Stock | Compound embedded derivative with the 2013 8.00% Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.49 | 1.31 |
Fair value, measurements, recurring | Market Price of Common Stock | Compound embedded derivative with the Loan Agreement with Thermo | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities, measurement input | 0.49 | 1.31 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ (119,041) | $ (277,946) | $ (227,985) | $ (281,171) |
Unrealized gain (loss), included in derivative gain (loss) | (2,059) | (77,129) | 106,885 | (73,904) |
Balance at end of period | $ (121,100) | $ (355,075) | $ (121,100) | $ (355,075) |
Fair Value Measurements - Fai44
Fair Value Measurements - Fair Value and Carrying Value of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | May 20, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Value | $ 488,459 | $ 513,866 | |
Loan Agreement with Thermo | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Value | 88,050 | 79,721 | |
Loan Agreement with Thermo | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Value | 88,050 | 79,721 | |
Loan Agreement with Thermo | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated Fair Value | $ 67,040 | 54,936 | |
8.00% Convertible Senior Notes Issued in 2013 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loan interest rate | 8.00% | 8.00% | |
Carrying Value | $ 1,363 | 1,348 | |
8.00% Convertible Senior Notes Issued in 2013 | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Value | 1,363 | 1,348 | |
8.00% Convertible Senior Notes Issued in 2013 | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated Fair Value | $ 751 | $ 1,295 |
Contingencies (Details)
Contingencies (Details) $ in Thousands, € in Millions | Jun. 24, 2012EUR (€) | May 10, 2012EUR (€) | Jun. 03, 2011satellite | May 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Loss Contingencies [Line Items] | ||||||||
Number of satellites (in satellites) | satellite | 25 | |||||||
Gain on legal settlement | $ | $ 6,779 | $ 0 | $ 6,779 | $ 0 | ||||
Proceeds from legal settlement | $ | $ 7,400 | |||||||
Litigation settlement discount | $ | $ 600 | |||||||
Thales Alenia Space | ||||||||
Loss Contingencies [Line Items] | ||||||||
Contract termination, damages awarded (in euros) | € 51.3 | |||||||
Contract termination charge (in euros) | € 17.5 | € 53 | ||||||
Gain on legal settlement | 35.6 | |||||||
Accrued liability for legal settlement (in euros) | € 17.5 | |||||||
Loss contingency accrual, percentage of termination charges | 33.33% |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)officer | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)officer | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||||
Payables to affiliates | $ 286 | $ 286 | $ 225 | ||
Debt instrument, face amount | 542,302 | 542,302 | 574,658 | ||
Derivative liabilities | 120,161 | 120,161 | 226,659 | ||
Loan Agreement with Thermo | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument, face amount | 112,616 | 112,616 | $ 106,054 | ||
Compound embedded derivative with the Thermo Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Derivative liabilities | $ 120,200 | $ 120,200 | |||
Thermo | |||||
Related Party Transaction [Line Items] | |||||
Number of executive officers | officer | 2 | 2 | |||
Change in fair value related to equity issuance | $ 200 | $ 200 | $ 400 | $ 400 | |
Thermo | Compound embedded derivative with the Thermo Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Interest expense, related party | $ 3,300 | $ 3,000 | $ 6,600 | $ 5,800 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | May 20, 2013 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income (loss) | $ (7,012) | $ (98,734) | $ 80,918 | $ (118,895) | |
Effect of dilutive securities: | |||||
Income (loss) to common stockholders plus assumed conversions | $ (7,012) | $ (98,734) | $ 86,811 | $ (118,895) | |
Weighted average common shares outstanding: | |||||
Basic shares outstanding (in shares) | 1,263,372 | 1,128,985 | 1,262,857 | 1,121,518 | |
Incremental shares from assumed exercises, conversions and other issuance of: | |||||
Stock options, restricted stock, restricted stock units and ESPP (in shares) | 0 | 0 | 5,335 | 0 | |
Diluted shares outstanding (in shares) | 1,263,372 | 1,128,985 | 1,442,693 | 1,121,518 | |
Net income (loss) per share: | |||||
Basic (USD per share) | $ (0.01) | $ (0.09) | $ 0.06 | $ (0.11) | |
Diluted (USD per share) | $ (0.01) | $ (0.09) | $ 0.06 | $ (0.11) | |
Antidilutive shares excluded from computation of earnings per share (in shares) | 150,200 | 190,500 | 191,600 | ||
8.00% Convertible Senior Notes Issued in 2013 | |||||
Effect of dilutive securities: | |||||
Dilutive securities | $ 0 | $ 0 | $ 38 | $ 0 | |
Incremental shares from assumed exercises, conversions and other issuance of: | |||||
Conversion of debt securities (in shares) | 0 | 0 | 2,087 | 0 | |
Loan Agreement with Thermo | |||||
Effect of dilutive securities: | |||||
Dilutive securities | $ 0 | $ 0 | $ 5,855 | $ 0 | |
Incremental shares from assumed exercises, conversions and other issuance of: | |||||
Conversion of debt securities (in shares) | 0 | 0 | 172,414 | 0 | |
8.00% Convertible Senior Notes Issued in 2013 | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Loan interest rate | 8.00% | 8.00% | 8.00% |
Condensed Consolidating Finan48
Condensed Consolidating Financial Information - Narrative (Details) | Jun. 30, 2018 | May 20, 2013 |
8.00% Convertible Senior Notes Issued in 2013 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Loan interest rate | 8.00% | 8.00% |
Condensed Consolidating Finan49
Condensed Consolidating Financial Information - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Revenue | $ 33,726 | $ 28,123 | $ 62,475 | $ 52,775 |
Operating expenses: | ||||
Marketing, general and administrative | 15,944 | 9,473 | 27,219 | 18,891 |
Revision to contract termination charge | (20,478) | 0 | (20,478) | 0 |
Depreciation, amortization and accretion | 22,616 | 19,275 | 41,847 | 38,569 |
Total operating expenses | 31,778 | 40,562 | 73,485 | 80,344 |
Operating income (loss) | 1,948 | (12,439) | (11,010) | (27,569) |
Other income (expense): | ||||
Gain (loss) on equity issuance | 0 | 1,964 | 0 | 2,670 |
Interest income and expense, net of amounts capitalized | (10,305) | (8,850) | (17,658) | (17,678) |
Derivative gain (loss) | (2,059) | (77,130) | 106,885 | (73,907) |
Gain on legal settlement | 6,779 | 0 | 6,779 | 0 |
Equity in subsidiary earnings (loss) | 0 | 0 | 0 | 0 |
Other | (3,351) | (2,173) | (4,013) | (2,269) |
Total other income (expense) | (8,936) | (86,189) | 91,993 | (91,184) |
Income (loss) before income taxes | (6,988) | (98,628) | 80,983 | (118,753) |
Income tax expense | 24 | 106 | 65 | 142 |
Net income (loss) | (7,012) | (98,734) | 80,918 | (118,895) |
Comprehensive income (loss) | (4,382) | (98,779) | 83,218 | (119,760) |
Services | ||||
Revenue: | ||||
Revenue | 27,995 | 24,301 | 54,005 | 45,782 |
Operating expenses: | ||||
Cost of goods and services | 9,526 | 9,036 | 18,555 | 18,010 |
Subscriber equipment sales | ||||
Revenue: | ||||
Revenue | 5,731 | 3,822 | 8,470 | 6,993 |
Operating expenses: | ||||
Cost of goods and services | 4,170 | 2,778 | 6,342 | 4,874 |
Reportable Legal Entities | Parent Company | ||||
Revenue: | ||||
Revenue | 23,474 | 18,745 | 44,055 | 36,424 |
Operating expenses: | ||||
Marketing, general and administrative | 11,382 | 5,241 | 18,467 | 10,828 |
Revision to contract termination charge | (20,478) | (20,478) | ||
Depreciation, amortization and accretion | 21,349 | 19,101 | 40,393 | 38,052 |
Total operating expenses | 19,163 | 30,789 | 51,590 | 61,489 |
Operating income (loss) | 4,311 | (12,044) | (7,535) | (25,065) |
Other income (expense): | ||||
Gain (loss) on equity issuance | 1,964 | 2,706 | ||
Interest income and expense, net of amounts capitalized | (10,335) | (8,829) | (17,721) | (17,584) |
Derivative gain (loss) | (2,059) | (77,130) | 106,885 | (73,907) |
Gain on legal settlement | 6,779 | 6,779 | ||
Equity in subsidiary earnings (loss) | (5,800) | (1,282) | (7,120) | (3,215) |
Other | 92 | (1,413) | (370) | (1,830) |
Total other income (expense) | (11,323) | (86,690) | 88,453 | (93,830) |
Income (loss) before income taxes | (7,012) | (98,734) | 80,918 | (118,895) |
Income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) | (7,012) | (98,734) | 80,918 | (118,895) |
Comprehensive income (loss) | (7,012) | (98,734) | 80,918 | (118,895) |
Reportable Legal Entities | Parent Company | Services | ||||
Revenue: | ||||
Revenue | 23,270 | 18,685 | 43,804 | 36,297 |
Operating expenses: | ||||
Cost of goods and services | 6,745 | 6,415 | 13,002 | 12,543 |
Reportable Legal Entities | Parent Company | Subscriber equipment sales | ||||
Revenue: | ||||
Revenue | 204 | 60 | 251 | 127 |
Operating expenses: | ||||
Cost of goods and services | 165 | 32 | 206 | 66 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Revenue: | ||||
Revenue | 15,640 | 13,548 | 26,763 | 25,195 |
Operating expenses: | ||||
Marketing, general and administrative | 1,457 | 997 | 2,521 | 2,116 |
Revision to contract termination charge | 0 | 0 | ||
Depreciation, amortization and accretion | 68 | 120 | 164 | 402 |
Total operating expenses | 7,304 | 5,626 | 11,664 | 10,169 |
Operating income (loss) | 8,336 | 7,922 | 15,099 | 15,026 |
Other income (expense): | ||||
Gain (loss) on equity issuance | 0 | 0 | ||
Interest income and expense, net of amounts capitalized | (2) | 7 | (4) | (1) |
Derivative gain (loss) | 0 | 0 | 0 | 0 |
Gain on legal settlement | 0 | 0 | ||
Equity in subsidiary earnings (loss) | (6,241) | (4,076) | (9,628) | (7,510) |
Other | 293 | (337) | 117 | (437) |
Total other income (expense) | (5,950) | (4,406) | (9,515) | (7,948) |
Income (loss) before income taxes | 2,386 | 3,516 | 5,584 | 7,078 |
Income tax expense | 10 | 4 | 16 | 9 |
Net income (loss) | 2,376 | 3,512 | 5,568 | 7,069 |
Comprehensive income (loss) | 2,376 | 3,512 | 5,568 | 7,069 |
Reportable Legal Entities | Guarantor Subsidiaries | Services | ||||
Revenue: | ||||
Revenue | 10,292 | 9,846 | 19,366 | 19,202 |
Operating expenses: | ||||
Cost of goods and services | 1,498 | 1,403 | 2,888 | 2,828 |
Reportable Legal Entities | Guarantor Subsidiaries | Subscriber equipment sales | ||||
Revenue: | ||||
Revenue | 5,348 | 3,702 | 7,397 | 5,993 |
Operating expenses: | ||||
Cost of goods and services | 4,281 | 3,106 | 6,091 | 4,823 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Revenue: | ||||
Revenue | 17,781 | 14,587 | 34,585 | 26,938 |
Operating expenses: | ||||
Marketing, general and administrative | 24,078 | 19,357 | 44,941 | 37,265 |
Revision to contract termination charge | 0 | 0 | ||
Depreciation, amortization and accretion | 1,199 | 54 | 1,290 | 115 |
Total operating expenses | 28,490 | 22,910 | 53,187 | 44,479 |
Operating income (loss) | (10,709) | (8,323) | (18,602) | (17,541) |
Other income (expense): | ||||
Gain (loss) on equity issuance | 0 | (36) | ||
Interest income and expense, net of amounts capitalized | 3 | (32) | 17 | (101) |
Derivative gain (loss) | 0 | 0 | 0 | 0 |
Gain on legal settlement | 0 | 0 | ||
Equity in subsidiary earnings (loss) | 0 | 0 | 0 | 0 |
Other | (3,725) | (418) | (3,733) | 5 |
Total other income (expense) | (3,722) | (450) | (3,716) | (132) |
Income (loss) before income taxes | (14,431) | (8,773) | (22,318) | (17,673) |
Income tax expense | 14 | 102 | 49 | 133 |
Net income (loss) | (14,445) | (8,875) | (22,367) | (17,806) |
Comprehensive income (loss) | (11,793) | (8,911) | (20,039) | (18,662) |
Reportable Legal Entities | Non- Guarantor Subsidiaries | Services | ||||
Revenue: | ||||
Revenue | 16,406 | 13,096 | 32,014 | 24,097 |
Operating expenses: | ||||
Cost of goods and services | 2,294 | 1,974 | 5,162 | 5,147 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | Subscriber equipment sales | ||||
Revenue: | ||||
Revenue | 1,375 | 1,491 | 2,571 | 2,841 |
Operating expenses: | ||||
Cost of goods and services | 919 | 1,525 | 1,794 | 1,952 |
Eliminations | ||||
Revenue: | ||||
Revenue | (23,169) | (18,757) | (42,928) | (35,782) |
Operating expenses: | ||||
Marketing, general and administrative | (20,973) | (16,122) | (38,710) | (31,318) |
Revision to contract termination charge | 0 | 0 | ||
Depreciation, amortization and accretion | 0 | 0 | 0 | 0 |
Total operating expenses | (23,179) | (18,763) | (42,956) | (35,793) |
Operating income (loss) | 10 | 6 | 28 | 11 |
Other income (expense): | ||||
Gain (loss) on equity issuance | 0 | 0 | ||
Interest income and expense, net of amounts capitalized | 29 | 4 | 50 | 8 |
Derivative gain (loss) | 0 | 0 | 0 | 0 |
Gain on legal settlement | 0 | 0 | ||
Equity in subsidiary earnings (loss) | 12,041 | 5,358 | 16,748 | 10,725 |
Other | (11) | (5) | (27) | (7) |
Total other income (expense) | 12,059 | 5,357 | 16,771 | 10,726 |
Income (loss) before income taxes | 12,069 | 5,363 | 16,799 | 10,737 |
Income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) | 12,069 | 5,363 | 16,799 | 10,737 |
Comprehensive income (loss) | 12,047 | 5,354 | 16,771 | 10,728 |
Eliminations | Services | ||||
Revenue: | ||||
Revenue | (21,973) | (17,326) | (41,179) | (33,814) |
Operating expenses: | ||||
Cost of goods and services | (1,011) | (756) | (2,497) | (2,508) |
Eliminations | Subscriber equipment sales | ||||
Revenue: | ||||
Revenue | (1,196) | (1,431) | (1,749) | (1,968) |
Operating expenses: | ||||
Cost of goods and services | $ (1,195) | $ (1,885) | $ (1,749) | $ (1,967) |
Condensed Consolidating Finan50
Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 12,806 | $ 41,644 |
Restricted cash | 52,692 | 63,635 |
Accounts receivable, net of allowance | 19,886 | 17,113 |
Intercompany receivables | 0 | 0 |
Inventory | 7,742 | 7,273 |
Prepaid expenses and other current assets | 8,879 | 6,745 |
Total current assets | 102,005 | 136,410 |
Property and equipment, net | 935,036 | 971,119 |
Intercompany notes receivable | 0 | 0 |
Investment in subsidiaries | 0 | 0 |
Intangible and other assets, net | 31,395 | 21,736 |
Total assets | 1,068,436 | 1,129,265 |
Current liabilities: | ||
Current portion of long-term debt | 87,732 | 79,215 |
Accounts payable | 6,988 | 6,048 |
Accrued contract termination charge | 0 | 21,002 |
Accrued expenses | 22,890 | 20,754 |
Intercompany payables | 0 | 0 |
Payables to affiliates | 286 | 225 |
Derivative liabilities | 939 | 1,326 |
Deferred revenue | 33,047 | 31,747 |
Total current liabilities | 151,882 | 160,317 |
Long-term debt, less current portion | 400,727 | 434,651 |
Employee benefit obligations | 4,458 | 4,389 |
Intercompany notes payable | 0 | 0 |
Derivative liabilities | 120,161 | 226,659 |
Deferred revenue | 5,777 | 6,052 |
Other non-current liabilities | 4,088 | 5,973 |
Total non-current liabilities | 535,211 | 677,724 |
Stockholders’ equity (deficit) | 381,343 | 291,224 |
Total liabilities and stockholders’ equity | 1,068,436 | 1,129,265 |
Reportable Legal Entities | Parent Company | ||
Current assets: | ||
Cash and cash equivalents | 7,955 | 32,864 |
Restricted cash | 52,692 | 63,635 |
Accounts receivable, net of allowance | 6,451 | 7,129 |
Intercompany receivables | 1,083,354 | 979,942 |
Inventory | 1,105 | 1,182 |
Prepaid expenses and other current assets | 6,055 | 3,149 |
Total current assets | 1,157,612 | 1,087,901 |
Property and equipment, net | 855,526 | 962,756 |
Intercompany notes receivable | 5,600 | 5,600 |
Investment in subsidiaries | (281,595) | (280,745) |
Intangible and other assets, net | 28,005 | 18,353 |
Total assets | 1,765,148 | 1,793,865 |
Current liabilities: | ||
Current portion of long-term debt | 87,732 | 79,215 |
Accounts payable | 2,436 | 2,257 |
Accrued contract termination charge | 21,002 | |
Accrued expenses | 10,198 | 7,627 |
Intercompany payables | 742,918 | 711,159 |
Payables to affiliates | 286 | 225 |
Derivative liabilities | 939 | 1,326 |
Deferred revenue | 1,498 | 1,164 |
Total current liabilities | 846,007 | 823,975 |
Long-term debt, less current portion | 400,727 | 434,651 |
Employee benefit obligations | 4,458 | 4,389 |
Intercompany notes payable | 6,436 | 6,436 |
Derivative liabilities | 120,161 | 226,659 |
Deferred revenue | 5,456 | 5,625 |
Other non-current liabilities | 560 | 906 |
Total non-current liabilities | 537,798 | 678,666 |
Stockholders’ equity (deficit) | 381,343 | 291,224 |
Total liabilities and stockholders’ equity | 1,765,148 | 1,793,865 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Current assets: | ||
Cash and cash equivalents | 1,556 | 4,942 |
Restricted cash | 0 | 0 |
Accounts receivable, net of allowance | 9,595 | 6,524 |
Intercompany receivables | 790,014 | 755,847 |
Inventory | 5,260 | 4,610 |
Prepaid expenses and other current assets | 1,435 | 2,414 |
Total current assets | 807,860 | 774,337 |
Property and equipment, net | 1,322 | 3,855 |
Intercompany notes receivable | 0 | 0 |
Investment in subsidiaries | 58,583 | 84,244 |
Intangible and other assets, net | 387 | 47 |
Total assets | 868,152 | 862,483 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 0 |
Accounts payable | 3,152 | 2,736 |
Accrued contract termination charge | 0 | |
Accrued expenses | 7,397 | 6,331 |
Intercompany payables | 812,978 | 799,565 |
Payables to affiliates | 0 | 0 |
Derivative liabilities | 0 | 0 |
Deferred revenue | 24,073 | 23,282 |
Total current liabilities | 847,600 | 831,914 |
Long-term debt, less current portion | 0 | 0 |
Employee benefit obligations | 0 | 0 |
Intercompany notes payable | 0 | 0 |
Derivative liabilities | 0 | 0 |
Deferred revenue | 304 | 410 |
Other non-current liabilities | 324 | 325 |
Total non-current liabilities | 628 | 735 |
Stockholders’ equity (deficit) | 19,924 | 29,834 |
Total liabilities and stockholders’ equity | 868,152 | 862,483 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Current assets: | ||
Cash and cash equivalents | 3,295 | 3,838 |
Restricted cash | 0 | 0 |
Accounts receivable, net of allowance | 3,840 | 3,460 |
Intercompany receivables | 85,101 | 64,477 |
Inventory | 1,377 | 1,481 |
Prepaid expenses and other current assets | 1,389 | 1,182 |
Total current assets | 95,002 | 74,438 |
Property and equipment, net | 78,183 | 4,503 |
Intercompany notes receivable | 6,436 | 6,436 |
Investment in subsidiaries | 40,367 | 38,637 |
Intangible and other assets, net | 3,015 | 3,348 |
Total assets | 223,003 | 127,362 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 0 |
Accounts payable | 1,400 | 1,055 |
Accrued contract termination charge | 0 | |
Accrued expenses | 5,295 | 6,796 |
Intercompany payables | 402,534 | 289,503 |
Payables to affiliates | 0 | 0 |
Derivative liabilities | 0 | 0 |
Deferred revenue | 7,476 | 7,301 |
Total current liabilities | 416,705 | 304,655 |
Long-term debt, less current portion | 0 | 0 |
Employee benefit obligations | 0 | 0 |
Intercompany notes payable | 5,600 | 5,600 |
Derivative liabilities | 0 | 0 |
Deferred revenue | 17 | 17 |
Other non-current liabilities | 3,204 | 4,742 |
Total non-current liabilities | 8,821 | 10,359 |
Stockholders’ equity (deficit) | (202,523) | (187,652) |
Total liabilities and stockholders’ equity | 223,003 | 127,362 |
Eliminations | ||
Current assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Accounts receivable, net of allowance | 0 | 0 |
Intercompany receivables | (1,958,469) | (1,800,266) |
Inventory | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Total current assets | (1,958,469) | (1,800,266) |
Property and equipment, net | 5 | 5 |
Intercompany notes receivable | (12,036) | (12,036) |
Investment in subsidiaries | 182,645 | 157,864 |
Intangible and other assets, net | (12) | (12) |
Total assets | (1,787,867) | (1,654,445) |
Current liabilities: | ||
Current portion of long-term debt | 0 | 0 |
Accounts payable | 0 | 0 |
Accrued contract termination charge | 0 | |
Accrued expenses | 0 | 0 |
Intercompany payables | (1,958,430) | (1,800,227) |
Payables to affiliates | 0 | 0 |
Derivative liabilities | 0 | 0 |
Deferred revenue | 0 | 0 |
Total current liabilities | (1,958,430) | (1,800,227) |
Long-term debt, less current portion | 0 | 0 |
Employee benefit obligations | 0 | 0 |
Intercompany notes payable | (12,036) | (12,036) |
Derivative liabilities | 0 | 0 |
Deferred revenue | 0 | 0 |
Other non-current liabilities | 0 | 0 |
Total non-current liabilities | (12,036) | (12,036) |
Stockholders’ equity (deficit) | 182,599 | 157,818 |
Total liabilities and stockholders’ equity | $ (1,787,867) | $ (1,654,445) |
Condensed Consolidating Finan51
Condensed Consolidating Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Cash flows provided by (used in) operating activities | $ 7,805 | $ 6,256 |
Cash flows used in investing activities: | ||
Second-generation network costs (including interest) | (4,277) | (6,530) |
Property and equipment additions | (3,221) | (2,116) |
Purchase of intangible assets | (1,401) | (2,044) |
Net cash used in investing activities | (8,899) | (10,690) |
Cash flows provided by (used in) financing activities: | ||
Principal payments of the Facility Agreement | (38,933) | (21,695) |
Proceeds from Thermo Common Stock Purchase Agreement | 0 | 33,000 |
Payment of debt restructuring fee | 0 | (20,795) |
Payment of debt amendment fee | 0 | (255) |
Proceeds from issuance of stock to Terrapin | 0 | 12,000 |
Proceeds from issuance of common stock and exercise of options and warrants | 319 | 635 |
Net cash provided by (used in) financing activities | (38,614) | 2,890 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (73) | 84 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (39,781) | (1,460) |
Cash, cash equivalents and restricted cash, beginning of period | 105,279 | 48,213 |
Cash, cash equivalents and restricted cash, end of period | 65,498 | 46,753 |
Reportable Legal Entities | Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash flows provided by (used in) operating activities | 10,592 | 4,008 |
Cash flows used in investing activities: | ||
Second-generation network costs (including interest) | (4,254) | (6,498) |
Property and equipment additions | (2,207) | (1,637) |
Purchase of intangible assets | (1,369) | (1,552) |
Net cash used in investing activities | (7,830) | (9,687) |
Cash flows provided by (used in) financing activities: | ||
Principal payments of the Facility Agreement | (38,933) | (21,695) |
Proceeds from Thermo Common Stock Purchase Agreement | 33,000 | |
Payment of debt restructuring fee | (20,795) | |
Payment of debt amendment fee | (255) | |
Proceeds from issuance of stock to Terrapin | 12,000 | |
Proceeds from issuance of common stock and exercise of options and warrants | 319 | 635 |
Net cash provided by (used in) financing activities | (38,614) | 2,890 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (35,852) | (2,789) |
Cash, cash equivalents and restricted cash, beginning of period | 96,499 | 45,242 |
Cash, cash equivalents and restricted cash, end of period | 60,647 | 42,453 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash flows provided by (used in) operating activities | (2,545) | 1,068 |
Cash flows used in investing activities: | ||
Second-generation network costs (including interest) | 0 | 0 |
Property and equipment additions | (841) | (420) |
Purchase of intangible assets | 0 | 0 |
Net cash used in investing activities | (841) | (420) |
Cash flows provided by (used in) financing activities: | ||
Principal payments of the Facility Agreement | 0 | 0 |
Proceeds from Thermo Common Stock Purchase Agreement | 0 | |
Payment of debt restructuring fee | 0 | |
Payment of debt amendment fee | 0 | |
Proceeds from issuance of stock to Terrapin | 0 | |
Proceeds from issuance of common stock and exercise of options and warrants | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (3,386) | 648 |
Cash, cash equivalents and restricted cash, beginning of period | 4,942 | 1,327 |
Cash, cash equivalents and restricted cash, end of period | 1,556 | 1,975 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash flows provided by (used in) operating activities | (242) | 1,180 |
Cash flows used in investing activities: | ||
Second-generation network costs (including interest) | (23) | (32) |
Property and equipment additions | (173) | (59) |
Purchase of intangible assets | (32) | (492) |
Net cash used in investing activities | (228) | (583) |
Cash flows provided by (used in) financing activities: | ||
Principal payments of the Facility Agreement | 0 | 0 |
Proceeds from Thermo Common Stock Purchase Agreement | 0 | |
Payment of debt restructuring fee | 0 | |
Payment of debt amendment fee | 0 | |
Proceeds from issuance of stock to Terrapin | 0 | |
Proceeds from issuance of common stock and exercise of options and warrants | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (73) | 84 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (543) | 681 |
Cash, cash equivalents and restricted cash, beginning of period | 3,838 | 1,644 |
Cash, cash equivalents and restricted cash, end of period | 3,295 | 2,325 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash flows provided by (used in) operating activities | 0 | 0 |
Cash flows used in investing activities: | ||
Second-generation network costs (including interest) | 0 | 0 |
Property and equipment additions | 0 | 0 |
Purchase of intangible assets | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows provided by (used in) financing activities: | ||
Principal payments of the Facility Agreement | 0 | 0 |
Proceeds from Thermo Common Stock Purchase Agreement | 0 | |
Payment of debt restructuring fee | 0 | |
Payment of debt amendment fee | 0 | |
Proceeds from issuance of stock to Terrapin | 0 | |
Proceeds from issuance of common stock and exercise of options and warrants | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | $ 0 | $ 0 |
Uncategorized Items - gsat-2018
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 63,635,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 52,692,000 |