Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33117 | |
Entity Registrant Name | GLOBALSTAR, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-2116508 | |
Entity Address, Address Line One | 1351 Holiday Square Blvd. | |
Entity Address, City or Town | Covington | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 70433 | |
City Area Code | 985 | |
Local Phone Number | 335-1500 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | GSAT | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001366868 | |
Current Fiscal Year End Date | --12-31 | |
Voting Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,670,326,068 | |
Nonvoting Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue: | ||||
Revenue | $ 30,364 | $ 31,191 | $ 62,558 | $ 61,269 |
Operating expenses: | ||||
Marketing, general and administrative | 10,253 | 11,022 | 21,344 | 22,628 |
Depreciation, amortization and accretion | 23,903 | 23,852 | 47,720 | 47,653 |
Total operating expenses | 45,743 | 47,847 | 92,022 | 96,256 |
Loss from operations | (15,379) | (16,656) | (29,464) | (34,987) |
Other income (expense): | ||||
Interest income and expense, net of amounts capitalized | (11,508) | (12,808) | (25,518) | (25,678) |
Derivative gain | 1,160 | 35,116 | 339 | 92,124 |
Foreign currency gain (loss) | 1,314 | 880 | (7,639) | 966 |
Other | (233) | (286) | (566) | (381) |
Total other (expense) income | (9,267) | 22,902 | (33,384) | 67,031 |
(Loss) income before income taxes | (24,646) | 6,246 | (62,848) | 32,044 |
Income tax expense | 90 | 57 | 111 | 84 |
Net (loss) income | (24,736) | 6,189 | (62,959) | 31,960 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (1,368) | (498) | 3,935 | (768) |
Comprehensive (loss) income | $ (26,104) | $ 5,691 | $ (59,024) | $ 31,192 |
Net (loss) income per common share: | ||||
Basic (USD per share) | $ (0.01) | $ 0 | $ (0.04) | $ 0.02 |
Diluted (USD per share) | $ (0.01) | $ (0.01) | $ (0.04) | $ (0.03) |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 1,668,974 | 1,450,380 | 1,613,467 | 1,449,355 |
Diluted (in shares) | 1,668,974 | 1,640,442 | 1,613,467 | 1,640,537 |
Service revenue | ||||
Revenue: | ||||
Revenue | $ 27,090 | $ 26,700 | $ 56,025 | $ 52,819 |
Operating expenses: | ||||
Cost of goods and services | 8,647 | 9,395 | 17,375 | 19,248 |
Subscriber equipment sales | ||||
Revenue: | ||||
Revenue | 3,274 | 4,491 | 6,533 | 8,450 |
Operating expenses: | ||||
Cost of goods and services | $ 2,940 | $ 3,578 | $ 5,583 | $ 6,727 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 12,070 | $ 7,606 |
Restricted cash | 3,625 | 622 |
Accounts receivable, net of allowance of $5,136 and $2,952, respectively | 19,756 | 21,760 |
Inventory | 15,688 | 16,341 |
Prepaid expenses and other current assets | 14,045 | 16,931 |
Total current assets | 65,184 | 63,260 |
Property and equipment, net | 754,263 | 799,914 |
Restricted cash | 51,234 | 50,900 |
Operating lease right of use assets, net | 14,926 | 15,871 |
Intangible and other assets, net of accumulated amortization of $9,427 and $9,009, respectively | 37,943 | 35,645 |
Total assets | 923,550 | 965,590 |
Current liabilities: | ||
Current portion of long-term debt | 45,000 | 0 |
Accounts payable | 4,714 | 8,015 |
Accrued expenses | 23,624 | 24,874 |
Payables to affiliates | 361 | 261 |
Deferred revenue | 26,987 | 29,910 |
Total current liabilities | 100,686 | 63,060 |
Long-term debt, less current portion | 324,233 | 464,176 |
Operating lease liabilities | 14,037 | 14,747 |
Employee benefit obligations | 3,985 | 4,128 |
Derivative liabilities | 2,395 | 3,792 |
Deferred revenue | 5,017 | 5,273 |
Other non-current liabilities | 2,711 | 3,071 |
Total non-current liabilities | 352,378 | 495,187 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred Stock | 0 | 0 |
Additional paid-in capital | 2,093,877 | 1,970,047 |
Accumulated other comprehensive income (loss) | 486 | (3,449) |
Retained deficit | (1,624,044) | (1,559,401) |
Total stockholders’ equity | 470,486 | 407,343 |
Total liabilities and stockholders’ equity | 923,550 | 965,590 |
Series A Preferred Convertible Stock | ||
Stockholders’ equity: | ||
Preferred Stock | 0 | 0 |
Voting Common Stock | ||
Stockholders’ equity: | ||
Common Stock | 167 | 146 |
Nonvoting Common Stock | ||
Stockholders’ equity: | ||
Common Stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance | $ 5,136 | $ 2,952 |
Accumulated amortization of intangible and other assets | $ 9,427 | $ 9,009 |
Preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100,000,000,000 | 100,000,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Series A Preferred Convertible Stock | ||
Preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Voting Common Stock | ||
Common stock, shares authorized (in shares) | 1,900,000,000,000 | 1,900,000,000,000 |
Common stock, shares issued (in shares) | 1,670,289,833,000 | 1,464,544,144,000 |
Common stock, shares outstanding (in shares) | 1,670,289,833,000 | 1,464,544,144,000 |
Nonvoting Common Stock | ||
Common stock, shares authorized (in shares) | 0 | 0 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Deficit | Retained DeficitAccounting Standards Update 2016-13 | Conversions Of 8 Percent Notes Issued In 2013 | Conversions Of 8 Percent Notes Issued In 2013Common Stock | Conversions Of 8 Percent Notes Issued In 2013Additional Paid-In Capital |
Beginning balance (in shares) at Dec. 31, 2018 | 1,446,784 | ||||||||
Beginning balance, amount at Dec. 31, 2018 | $ 358,945 | $ 145 | $ 1,937,364 | $ (3,839) | $ (1,574,725) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net issuance of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation (in shares) | 3,285 | ||||||||
Net issuance of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation | 1,000 | 1,000 | |||||||
Contribution of services | 47 | ||||||||
Recognition of stock-based compensation of employee stock purchase plan | 77 | 77 | |||||||
Stock offering issuance costs | (195) | (195) | |||||||
Other comprehensive income | (270) | (270) | |||||||
Net income (loss) | 25,771 | 25,771 | |||||||
Ending balance (in shares) at Mar. 31, 2019 | 1,450,069 | ||||||||
Ending balance, amount at Mar. 31, 2019 | 385,375 | $ 145 | 1,938,293 | (4,109) | (1,548,954) | ||||
Beginning balance (in shares) at Dec. 31, 2018 | 1,446,784 | ||||||||
Beginning balance, amount at Dec. 31, 2018 | 358,945 | $ 145 | 1,937,364 | (3,839) | (1,574,725) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 31,960 | ||||||||
Ending balance (in shares) at Jun. 30, 2019 | 1,451,738 | ||||||||
Ending balance, amount at Jun. 30, 2019 | 392,886 | $ 145 | 1,940,113 | (4,607) | (1,542,765) | ||||
Beginning balance (in shares) at Mar. 31, 2019 | 1,450,069 | ||||||||
Beginning balance, amount at Mar. 31, 2019 | 385,375 | $ 145 | 1,938,293 | (4,109) | (1,548,954) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net issuance of restricted stock awards and recognition of stock-based compensation (in shares) | 232 | ||||||||
Net issuance of restricted stock awards and recognition of stock-based compensation | 968 | 968 | |||||||
Contribution of services | 197 | ||||||||
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation (in shares) | 1,437 | ||||||||
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation | 500 | 500 | |||||||
Common stock issued in connection with conversion of 2013 8.00% Notes | 155 | 155 | |||||||
Other comprehensive income | (498) | (498) | |||||||
Net income (loss) | 6,189 | 6,189 | |||||||
Ending balance (in shares) at Jun. 30, 2019 | 1,451,738 | ||||||||
Ending balance, amount at Jun. 30, 2019 | 392,886 | $ 145 | 1,940,113 | (4,607) | (1,542,765) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Impact of adoption of Credit Loss Standard | (1,684) | $ (1,684) | |||||||
Beginning balance (in shares) at Dec. 31, 2019 | 1,464,544 | ||||||||
Beginning balance, amount at Dec. 31, 2019 | 407,343 | $ 146 | 1,970,047 | (3,449) | (1,559,401) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net issuance of restricted stock awards and recognition of stock-based compensation (in shares) | 3,020 | ||||||||
Net issuance of restricted stock awards and recognition of stock-based compensation | 1,730 | $ 1 | 1,729 | ||||||
Contribution of services | 91 | 91 | |||||||
Recognition of stock-based compensation of employee stock purchase plan | 102 | 102 | |||||||
Common stock issued in connection with conversion of Loan Agreement with Thermo (in shares) | 200,140 | ||||||||
Common stock issued in connection with conversion of Loan Agreement with Thermo | $ 120,461 | $ 20 | $ 120,441 | ||||||
Other comprehensive income | 5,303 | 5,303 | |||||||
Net income (loss) | (38,223) | (38,223) | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 1,667,704 | ||||||||
Ending balance, amount at Mar. 31, 2020 | 495,123 | $ 167 | 2,092,410 | 1,854 | (1,599,308) | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 1,464,544 | ||||||||
Beginning balance, amount at Dec. 31, 2019 | 407,343 | $ 146 | 1,970,047 | (3,449) | (1,559,401) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (62,959) | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 1,670,290 | ||||||||
Ending balance, amount at Jun. 30, 2020 | 470,486 | $ 167 | 2,093,877 | 486 | (1,624,044) | ||||
Beginning balance (in shares) at Mar. 31, 2020 | 1,667,704 | ||||||||
Beginning balance, amount at Mar. 31, 2020 | 495,123 | $ 167 | 2,092,410 | 1,854 | (1,599,308) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net issuance of restricted stock awards and recognition of stock-based compensation (in shares) | 1,354 | ||||||||
Net issuance of restricted stock awards and recognition of stock-based compensation | 922 | 922 | |||||||
Contribution of services | 47 | ||||||||
Common stock issued in connection with conversion of Loan Agreement with Thermo (in shares) | 44 | ||||||||
Common stock issued in connection with conversion of Loan Agreement with Thermo | $ 16 | $ 16 | |||||||
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation (in shares) | 1,188 | ||||||||
Net issuance of stock through employee stock purchase plan and recognition of stock-based compensation | 482 | 482 | |||||||
Other comprehensive income | (1,368) | (1,368) | |||||||
Net income (loss) | (24,736) | (24,736) | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 1,670,290 | ||||||||
Ending balance, amount at Jun. 30, 2020 | $ 470,486 | $ 167 | $ 2,093,877 | $ 486 | $ (1,624,044) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2013 | May 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | ||
8.00% Convertible Senior Notes Issued in 2013 | ||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 86 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Cash flows provided by (used in) operating activities: | |||||||||
Net (loss) income | $ (24,736) | $ (38,223) | $ 6,189 | $ 25,771 | $ (62,959) | $ 31,960 | |||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||||||||
Depreciation, amortization and accretion | 23,903 | 23,852 | 47,720 | 47,653 | |||||
Change in fair value of derivative assets and liabilities | (339) | (92,124) | |||||||
Stock-based compensation expense | 2,508 | 2,756 | |||||||
Amortization of deferred financing costs | 3,822 | 4,480 | |||||||
Provision for bad debts | 1,419 | 1,170 | |||||||
Noncash interest and accretion expense | 16,029 | 9,135 | |||||||
Unrealized foreign currency loss (gain) | 7,619 | (975) | |||||||
Other, net | 24 | 230 | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | (1,445) | (4,328) | |||||||
Inventory | 536 | (1,755) | |||||||
Prepaid expenses and other current assets | 2,541 | (2,486) | |||||||
Other assets | (1,623) | (361) | |||||||
Accounts payable and accrued expenses | (3,844) | 4,277 | |||||||
Payables to affiliates | 100 | 1,700 | |||||||
Other non-current liabilities | (217) | 216 | |||||||
Deferred revenue | (3,032) | 262 | |||||||
Net cash provided by operating activities | 8,859 | 1,810 | |||||||
Cash flows used in investing activities: | |||||||||
Second-generation network costs (including interest) | (1,600) | (1,244) | |||||||
Property and equipment additions | (2,237) | (2,366) | |||||||
Purchase of intangible assets | (1,042) | (1,487) | |||||||
Net cash used in investing activities | (4,879) | (5,097) | |||||||
Cash flows provided by (used in) financing activities: | |||||||||
Principal payments of the Facility Agreement | (276) | (47,435) | |||||||
Payments for debt and equity issuance costs | (1,074) | (1,230) | |||||||
Proceeds from PPP Loan | 4,973 | 0 | |||||||
Proceeds from Subordinated Loan Agreement | 0 | 62,000 | |||||||
Proceeds from issuance of common stock and exercise of options and warrants | 346 | 402 | |||||||
Net cash provided by financing activities | 3,969 | 13,737 | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (148) | 43 | |||||||
Net increase in cash, cash equivalents and restricted cash | 7,801 | 10,493 | |||||||
Cash, cash equivalents and restricted cash, beginning of period | 59,128 | 75,490 | 59,128 | 75,490 | |||||
Cash, cash equivalents and restricted cash, end of period | 66,929 | 85,983 | 66,929 | 85,983 | $ 66,929 | ||||
Reconciliation of cash, cash equivalents and restricted cash | |||||||||
Cash and cash equivalents | $ 12,070 | $ 7,606 | |||||||
Restricted cash (See Note 4 for further discussion on restrictions) | 54,859 | 51,522 | |||||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 66,929 | $ 59,128 | $ 85,983 | $ 75,490 | 66,929 | 85,983 | 66,929 | $ 66,929 | $ 59,128 |
Supplemental disclosure of cash flow information: | |||||||||
Cash paid for interest | 5,971 | 12,882 | |||||||
Supplemental disclosure of non-cash financing and investing activities: | |||||||||
Increase in capitalized accrued interest for second-generation network costs | 792 | 208 | |||||||
Capitalized accretion of debt discount and amortization of prepaid financing costs | 223 | 165 | |||||||
Principal amount of Loan Agreement with Thermo converted into common stock | 137,366 | 0 | $ 55,400 | ||||||
Reduction of debt discount and issuance costs due to conversion of Loan Agreement with Thermo | 17,963 | 0 | |||||||
Fair value of common stock issued upon conversion of Loan Agreement with Thermo | 84,059 | 0 | |||||||
Reduction in derivative liability due to conversion of Loan Agreement with Thermo | $ 1,058 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION Globalstar, Inc. (“Globalstar” or the “Company”) provides Mobile Satellite Services (“MSS”) including voice and data communications services through its global satellite network. Thermo Companies, through commonly controlled affiliates, (collectively, “Thermo”) is the principal owner and largest stockholder of Globalstar. The Company’s Executive Chairman of the Board controls Thermo. Two other members of the Company's Board of Directors are also directors, officers or minority equity owners of various Thermo entities. The Company has prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”); however, management believes the disclosures made are adequate to make the information presented not misleading. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Globalstar Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 28, 2020 (the “2019 Annual Report”). The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates. The Company evaluates estimates on an ongoing basis. Significant estimates include the value of derivative instruments, the allowance for doubtful accounts, the net realizable value of inventory, the useful life and value of property and equipment, the value of stock-based compensation and income taxes. The Company has made certain reclassifications to prior period condensed consolidated financial statements to conform to current period presentation. These unaudited interim condensed consolidated financial statements include the accounts of Globalstar and all its subsidiaries. All significant intercompany transactions and balances have been eliminated in the consolidation. In the opinion of management, the information included herein includes all adjustments, consisting of normal recurring adjustments, that are necessary for a fair presentation of the Company’s condensed consolidated statements of operations, condensed consolidated balance sheets, condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the full year or any future period. Recent Developments: COVID-19 In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) a global pandemic. Various levels of governmental agencies and authorities have taken measures to reduce the spread of COVID-19, including “stay at home” orders, social distancing and closures of non-essential businesses. These measures, as well as the pandemic itself, have significantly impacted economic conditions around the world and created uncertainties in the economy. In recent months, some governmental agencies have partially lifted restrictions, but significant economic uncertainties remain. The Company performed a detailed analysis of its financial statements, liquidity position and business operations to assess the impact caused by COVID-19 for the period ended June 30, 2020 and through the release date of these condensed consolidated financial statements. Among other effects, the Company has accommodated certain pricing concessions requested by customers and experienced lower demand for its products and services, particularly from its retail customers and those that operate in the oil and gas market. While the full extent and duration of the impact is unknown, the Company expects a continuation of this lower demand at least until these industries fully recover. Additionally, the Company began and expects to continue to operate with a remote workforce, manage a supply chain sourcing predominantly from China, and engage with international regulators remotely to advance the terrestrial spectrum authorization process. There are a number of uncertainties that could impact the Company's future results of operations, including the effectiveness of COVID-19 mitigation measures; the duration of the pandemic; global economic conditions; changes to the Company's operations; changes in consumer confidence, behaviors and spending; work from home trends; and the sustainability of supply chains. In accordance with the Company's accounting policies disclosed in its 2019 Annual Report, the Company reviews the carrying value of long-lived assets, intangible assets and inventory when circumstances warrant an assessment in order to evaluate whether indicators of impairment exist. The Company updated its internal projections as part of this assessment to reflect the reduction in cash flows from operations that it currently expects will result from COVID-19. The Company expects these reductions to be temporary; therefore, no indicator of impairment was identified. For inventory, the carrying value of inventory on hand was lower than its expected net realizable value; accordingly, no impairment was necessary. For accounts receivable, the Company increased its loss rate for certain receivables as discussed in more detail in Note 3: Credit Losses. Revised internal projections have also been evaluated in light of financial covenant requirements in the Company's facility agreements. The Company continues to monitor its ability to remain in compliance with financial covenants over the next twelve months. See Note 4: Long-Term Debt and Other Financing Arrangements and Risk Factors: "The effect of an epidemic or pandemic, including the current COVID-19 pandemic, could have an adverse impact on our operations and the operations of our customers and may have a material adverse impact on our financial condition and results of operations" for further discussion. If the Company is able to remain in compliance, its sources of liquidity are expected to be sufficient to cover its obligations over the next twelve months. This liquidity assessment considers relief granted to the Company under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES" Act), including a $5.0 million loan the Company received in April 2020 under the payroll protection program, which the Company expects to be forgiven, and the deferral of the payment of certain payroll taxes. Additionally, the Company evaluated tax law changes pursuant to the CARES Act and revised its net operating loss carryforwards and other estimates, as necessary. As previously stated, the full impact of COVID-19 on the Company's condensed consolidated financial statements is uncertain at this time and the Company will continue to reassess the impact at each reporting period. Recently Issued Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . As part of the FASB's disclosure framework project, it has changed the disclosure requirements for defined pension and other post-retirement benefit plans as outlined in ASU No. 2018-14. This ASU is effective for public entities for annual periods beginning after December 15, 2020. This ASU adds certain narrative disclosures and removes other disclosures as outlined in ASU No. 2018-14 related to the defined benefit plan. In December 2019, the FASB issued ASU No. 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU No. 2019-12 amends the accounting treatment for income taxes by simplifying and clarifying certain aspects of the existing guidance. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2020. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Company has not yet determined the impact this standard will have on its condensed consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments . ASU No. 2016-13, as amended, significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaced the incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities are required to 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 became effective for public entities for annual and interim periods beginning after December 15, 2019. The Company adopted this standard when it became effective on January 1, 2020. See Note 3: Credit Losses for a discussion of the impact to the Company's condensed consolidated financial statements and required disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . As part of the FASB's disclosure framework project, it has eliminated, amended and added disclosure requirements for fair value measurements. Entities are no longer required to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy of timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Public companies are required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. The |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 2. REVENUE Disaggregation of Revenue The following table discloses revenue disaggregated by type of product and service (amounts in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Service revenue: Duplex $ 8,556 $ 9,031 $ 16,219 $ 17,676 SPOT 11,579 12,619 23,702 25,714 Commercial IoT 4,298 4,353 8,608 8,051 IGO 109 179 200 345 Engineering and other 2,548 518 7,296 1,033 Total service revenue 27,090 26,700 56,025 52,819 Subscriber equipment sales: Duplex $ 625 $ 306 $ 1,029 $ 557 SPOT 1,695 2,186 3,102 3,777 Commercial IoT 939 1,972 2,352 4,044 Other 15 27 50 72 Total subscriber equipment sales 3,274 4,491 6,533 8,450 Total revenue $ 30,364 $ 31,191 $ 62,558 $ 61,269 Engineering and other service revenue includes revenue generated primarily from certain governmental and engineering service contracts. During the three and six months ended June 30, 2020, the Company recognized $2.0 million and $6.0 million, respectively, in revenue related to the completion of certain milestones for non-recurring engineering services under the Terms Agreement described in its 2019 Annual Report. 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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Service revenue: United States $ 20,016 $ 19,452 $ 42,705 $ 38,704 Canada 4,392 4,331 8,363 8,142 Europe 1,791 2,212 3,152 4,334 Central and South America 669 570 1,379 1,134 Others 222 135 426 505 Total service revenue 27,090 26,700 56,025 52,819 Subscriber equipment sales: United States $ 1,721 $ 2,549 $ 3,164 $ 4,760 Canada 859 1,133 1,942 1,946 Europe 376 440 870 1,017 Central and South America 306 349 572 661 Others 12 20 (15) 66 Total subscriber equipment sales 3,274 4,491 6,533 8,450 Total revenue $ 30,364 $ 31,191 $ 62,558 $ 61,269 Accounts Receivable The Company has agreements with certain of its independent gateway operators ("IGOs") whereby the parties net settle outstanding payables and receivables between the respective entities on a periodic basis. As of June 30, 2020 and December 31, 2019, $6.3 million and $6.5 million, respectively, related to these agreements was included in accounts receivable on the Company’s condensed consolidated balance sheet. Contract Liabilities Contract liabilities, which are included in deferred revenue on the Company’s condensed consolidated balance sheet, represent the Company’s obligation to transfer service or equipment to a customer from whom it has previously received consideration. The amount of revenue recognized during the six months ended June 30, 2020 and 2019 from performance obligations included in the contract liability balance at the beginning of each of the periods was $24.4 million and $21.4 million, respectively. |
Credit Losses
Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Credit Losses | 3. CREDIT LOSSES Adoption of ASU No. 2016-13 "Credit Losses" On January 1, 2020, the Company adopted the provisions of ASU No. 2016-13 Credit Losses, Measurement of Credit Losses on Financial Instruments , and recognized the cumulative effect of initially applying the guidance as an adjustment to the opening balance of retained deficit. As a result of adopting ASU No. 2016-13, the Company recorded a net decrease to stockholders' equity of $1.7 million, which resulted in an increase to the opening retained deficit balance as of January 1, 2020. The most significant driver of this adjustment was the Company’s change in accounting policy related to expected losses (rather than incurred losses) from trade receivables applied to its portfolio based on historical and future performance. 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. Accounts receivable 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. Credit Losses 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 supportable and reasonable current trends, the length of time the receivables are past due and historical collection experience. The Company believes that historical collection experience is the most reasonable basis for predicting future performance. The Company’s major portfolio of contract assets are customer receivables and, as such, historical delinquency percentages are generally consistent over time. The estimate of the allowance for credit losses is computed using aging schedules by type of revenue (service and subscriber equipment), by product (Duplex, SPOT and Commercial IoT) and by country. As discussed above, accounts receivable are considered past due in accordance with the contractual terms of the arrangements. The Company applies a loss rate to its portfolio of trade receivables based on past-due status and records an allowance for doubtful accounts, which represents the expected losses of those trade receivables over their estimated contractual life. The estimated life may vary by service and product type, but is generally less than one year. Allowances are generally recorded for all aging categories of outstanding receivables, including those in the current category (which is a change from legacy GAAP). 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. In March 2020, after the Company adopted ASU No. 2016-13, the World Health Organization declared the outbreak COVID-19 a global pandemic. COVID-19 has resulted in some disruption to the Company, primarily as it relates to the volume of equipment sales and uncertainties impacting the collection of certain outstanding receivables. Although the Company expects this disruption to be temporary, it has considered the potential impact of COVID-19 on its portfolio of trade receivables and has increased its loss rate for such receivables for the period ending June 30, 2020, where necessary. The Company will continue to reassess its sales and collections of receivables each reporting period to support its allowance across its portfolio. The following is a summary of the activity in the allowance for doubtful accounts as of June 30, 2020 (in thousands): Balance at beginning of period $ 2,952 Impact of adoption of ASU 2016-13 1,684 Provision, net of recoveries 1,419 Write-offs and other adjustments (919) Balance at end of period $ 5,136 |
Long-Term Debt and Other Financ
Long-Term Debt and Other Financing Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 December 31, 2019 Principal Unamortized Discount and Deferred Financing Costs Carrying Principal Unamortized Discount and Deferred Financing Costs Carrying Facility Agreement $ 190,084 $ 8,290 $ 181,794 $ 190,361 $ 10,185 $ 180,176 Second Lien Term Loan Facility 215,476 34,371 181,105 201,495 35,448 166,047 Loan Agreement with Thermo — — — 135,105 18,562 116,543 8.00% Convertible Senior Notes Issued in 2013 1,396 — 1,396 1,410 — 1,410 Payroll Protection Program Loan 4,973 35 4,938 — — — Total Debt 411,929 42,696 369,233 528,371 64,195 464,176 Less: Current Portion 45,000 — 45,000 — — — Long-Term Debt $ 366,929 $ 42,696 $ 324,233 $ 528,371 $ 64,195 $ 464,176 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 repayment under the Facility Agreement due within one year of the balance sheet date. First Lien 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 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, June 2017 and November 2019. The Facility Agreement is scheduled to mature in December 2022. Indebtedness under the Facility Agreement bears interest at a floating rate of LIBOR plus a margin that increases by 0.5% each year to a maximum rate of LIBOR plus 5.75%. The current interest rate is LIBOR plus 4.75%. Interest on the Facility Agreement is payable semi-annually in arrears on June 30 and December 31 of each calendar year. As previously discussed, the Company received a loan under the CARES Act in April 2020. Due to restrictions limiting the Company's ability to incur indebtedness, the execution of this loan required a waiver under the Facility Agreement, which was approved by the Company's senior lenders. 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 maturity. If the Company violates any financial covenants and is unable to obtain a sufficient Equity Cure Contribution or 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. As of June 30, 2020, the Company was in compliance with respect to the covenants of the Facility Agreement. The Company continues to monitor the impact of COVID-19 on its results of operations and liquidity relative to compliance with financial covenants over the next twelve months. 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 required balance in the debt service reserve account is fixed and must equal at least $50.9 million. As of June 30, 2020, the balance in the debt service reserve account was $51.2 million and is classified as non-current restricted cash on the Company's condensed consolidated balance sheet as it will be used towards the final scheduled payment due upon maturity of the Facility Agreement in December 2022. The amended and restated Facility Agreement includes a requirement that the Company raise no less than $45.0 million of equity prior to March 31, 2021 via the cash exercise of outstanding warrants or the sale of other equity, the proceeds of which are required to be applied towards the principal payment due on June 30, 2021 and then, if applicable, to the next scheduled principal payments. The Company currently expects to fulfill this requirement with proceeds from the exercise of all the remaining warrants issued to the Second Lien Term Loan Facility lenders in November 2019; however, it may be required to find alternative sources of equity capital if the Company's share price does not exceed the warrants' exercise price of $0.38 per share. In December 2019, the Company received proceeds of $3.6 million from the exercise of a portion of warrants issued to the Second Lien Term Loan Facility Agreement lenders, which is retained in the equity proceeds account under the Facility Agreement and recorded in current restricted cash on the Company's condensed consolidated balance sheet as of June 30, 2020 and may be used to fulfill a portion of the $45.0 million requirement discussed above. Second Lien Facility Agreement In November 2019, the Company entered into a $199.0 million Second Lien Term Loan Facility with Thermo, EchoStar Corporation and certain other unaffiliated lenders. The Second Lien Term Loan Facility is scheduled to mature in November 2025. The loans under the Second Lien Term Loan Facility bear interest at a blended rate of 13.5% per annum to be paid in kind (or in cash at the option of the Company, subject to restrictions in the Facility Agreement). As additional consideration for the loan, the Company issued the lenders warrants to purchase 124.5 million shares of voting common stock at an exercise price of $0.38 per share. These warrants expire on March 31, 2021. As of June 30, 2020, approximately 115.0 million warrants remain outstanding. As previously discussed, the Company received a loan under the CARES Act in April 2020. Due to restrictions limiting the Company's ability to incur indebtedness, the execution of this loan required a waiver under the Second Lien Term Loan Facility, which was approved by the Company's second lien lenders. As of June 30, 2020, the Company was in compliance with the covenants of the Second Lien Term Loan Facility. Refer to Note 5: Derivatives and Note 6: Fair Value Measurements for further discussion on the compound embedded derivative bifurcated from the Second Lien Term Loan Facility Agreement. 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 were subordinated to the Company’s obligations under the Facility Agreement and the Second Lien Term Loan Facility. The Loan Agreement was convertible into shares of common stock at a conversion price of $0.69 (as adjusted) per share of common stock and accrued interest at 12% per annum, which was capitalized and added to the outstanding principal in lieu of cash payments. On February 19, 2020, Thermo converted the entire principal balance outstanding under the Loan Agreement, which totaled $137.4 million and included accrued interest since inception of $93.9 million. This conversion resulted in the issuance of 200.1 million shares of common stock. In accordance with applicable accounting guidance for debt extinguishment with related parties, upon conversion, the remaining debt discount was written off and recorded as a contribution to capital though equity and the associated derivative liability was marked to market at the conversion date and then extinguished through equity as a contribution to capital. Refer to Note 5: Derivatives and Note 6: Fair Value Measurements for further discussion on the compound embedded derivative bifurcated from the Loan Agreement with Thermo. 8.00% Convertible Senior Notes Issued in 2013 In May 2013, the Company issued $54.6 million aggregate principal amount of its 2013 8.00% Notes. The 2013 8.00% Notes are convertible into shares of common stock at a conversion price of $0.69 per share of common stock, as adjusted pursuant to the terms of the Fourth Supplemental Indenture between the Company and U.S. Bank National Association, as Trustee (the “Indenture”). The 2013 8.00% Notes are senior unsecured debt obligations that 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 is paid in cash at a rate of 5.75% and in additional notes at a rate of 2.25%. Since issuance, $55.4 million of principal amount of the 2013 8.00% Notes have been converted resulting in the issuance of 98.6 million shares of Globalstar common stock. The Company may redeem the 2013 8.00% Notes, with the prior approval of the majority lenders under the Facility Agreement and the Second Lien Term Loan Facility, in whole or in part at a price equal to the principal amount of the 2013 8.00% Notes to be redeemed plus all accrued and unpaid interest thereon. A holder of the 2013 8.00% Notes has the right to require the Company to purchase some or all of the 2013 8.00% Notes held by it on April 1, 2023, or at any time if there is a Fundamental Change (as defined in the Indenture), at a price equal to the principal amount of the 2013 8.00% Notes to be purchased plus accrued and unpaid interest. A holder may convert its 2013 8.00% Notes at its option at any time prior to April 1, 2028, into shares of common stock (or cash, at the option of the Company and subject to the consent of its lenders under the Facility Agreement and Second Lien Term Loan Facility). The Indenture provides for customary events of default. As of June 30, 2020, the Company was in compliance with respect to the terms of the 2013 8.00% Notes and the Indenture. Refer to Note 5: Derivatives and Note 6: Fair Value Measurements for further discussion on the compound embedded derivative bifurcated from the 2013 8.00% Notes. Payroll Protection Program Loan In April 2020, the Company sought relief under the CARES Act and received a $5.0 million loan under the Payroll Protection Program ("PPP"). This loan (the "PPP Loan") is an unsecured debt obligation and is scheduled to mature in April 2022. As permitted under the CARES Act, the Company expects to apply for loan forgiveness, inclusive of both principal and accrued interest, in accordance with the terms of the CARES Act, based on payroll and other allowable costs incurred since disbursement of the PPP Loan. Any amount not forgiven by the Small Business Administration (the "SBA") is subject to an interest rate of 1.00% per annum commencing on the date of the PPP Loan. Uncertainties exist around if and when the PPP Loan will be repaid. Principal and interest payments due under the PPP Loan are generally deferred until the review and approval of any forgiveness is made by the SBA, subject to the PPP rules. Furthermore, the Company's first and second lien lenders would require the Company to accelerate the repayment of any portion of the loan amount that is not forgiven. As the deferral period allowed under the CARES Act is greater than twelve months from the balance sheet date, the loan is classified as long-term debt as of June 30, 2020. The Company evaluated the applicable accounting guidance relative to the PPP Loan and accounted for the proceeds of the PPP Loan as debt under ASC 470. As previously discussed, the Company expects the PPP Loan to be forgiven, but cannot provide assurance of such forgiveness until it has been approved by the Company's lender and the SBA. Any portion of the PPP Loan that is forgiven will be recorded in the Company's condensed consolidated statement of operations as a gain on extinguishment of debt in the period of forgiveness. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 December 31, 2019 Derivative liabilities: Compound embedded derivative with the 2013 8.00% Notes $ (255) $ (522) Compound embedded derivative with the Loan Agreement with Thermo — (1,270) Compound embedded derivative with the Second Lien Term Loan Facility (2,140) (2,000) Total derivative liabilities $ (2,395) $ (3,792) 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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Compound embedded derivative with the 2013 8.00% Notes $ 20 $ 255 $ 267 $ 469 Compound embedded derivative with the Loan Agreement with Thermo — 34,861 212 91,655 Compound embedded derivative with the Second Lien Term Loan Facility 1,140 — (140) — Total derivative gain $ 1,160 $ 35,116 $ 339 $ 92,124 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
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 liabilities measured at fair value on a recurring basis (in thousands): June 30, 2020 (Level 1) (Level 2) (Level 3) Total Compound embedded derivative with the 2013 8.00% Notes $ — $ — $ (255) $ (255) Compound embedded derivative with the Second Lien Term Loan Facility — — (2,140) (2,140) Total liabilities measured at fair value $ — $ — $ (2,395) $ (2,395) December 31, 2019 (Level 1) (Level 2) (Level 3) Total Compound embedded derivative with the 2013 8.00% Notes $ — $ — $ (522) $ (522) Compound embedded derivative with the Loan Agreement with Thermo — — (1,270) (1,270) Compound embedded derivative with the Second Lien Term Loan Facility — — (2,000) (2,000) Total liabilities measured at fair value $ — $ — $ (3,792) $ (3,792) Derivative Liabilities All of the Company's derivative liabilities are 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. 2013 8.00% Notes and Loan Agreement with Thermo The significant quantitative Level 3 inputs utilized in the valuation models are shown in the tables below: June 30, 2020 Stock Price Risk-Free Note Discount Rate Market Price of Common Stock Compound embedded derivative with the 2013 8.00% Notes 80% - 115% 0.2 % $0.69 27 % $0.33 During the first quarter of 2020, the compound embedded derivative with the Loan Agreement with Thermo was extinguished and, therefore, as of June 30, 2020, the value was zero and there were no significant qualitative Level 3 inputs utilized in a valuation. See Note 4: Long-Term Debt and Other Financing Arrangements and Note 5: Derivatives for further discussion. December 31, 2019 Stock Price Risk-Free Note Discount Rate Market Price of Common Stock Compound embedded derivative with the 2013 8.00% Notes 70% - 130% 1.6 % $0.69 27 % $0.52 Compound embedded derivative with the Loan Agreement with Thermo 70% - 130% 1.6 % $0.69 27 % $0.52 Second Lien Term Loan Facility The compound embedded derivative with the Second Lien Term Loan Facility is valued using a probability weighted discounted cash flow model. The most significant observable input used in the fair value measurement is the discount yield, which was 19% and 18% at June 30, 2020 and December 31, 2019, respectively. Increases in the discount yield generally will result in a higher fair value measurement in the model. The unobservable inputs used in the fair value measurement include probability of change of control and the estimated timing and amounts of cash flows associated with certain mandatory prepayments within the debt agreement. Rollforward of Recurring Level 3 Liabilities 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): Balance at beginning of period, January 1, 2020 and 2019, respectively $ (3,792) $ (146,865) Issuance of compound embedded derivative with the Second Lien Term Loan Facility — (2,000) Derivative adjustment related to conversions and exercises 1,058 — Unrealized gain, included in derivative gain 339 145,073 Balance at end of period, June 30, 2020 and December 31, 2019, respectively $ (2,395) $ (3,792) Fair Value of Debt Instruments The Company believes it is not practicable to determine the fair value of the Facility Agreement, the Second Lien Term Loan Facility and the PPP Loan without incurring significant additional costs. Unlike typical long-term debt, interest rates and other terms for these instruments 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, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Loan Agreement with Thermo $ — $ — $ 116,543 $ 88,886 2013 8.00% Notes 1,396 925 1,410 875 Nonrecurring Fair Value Measurements The Company follows the authoritative guidance regarding non-financial assets and liabilities that are remeasured at fair value on a nonrecurring basis. On February 19, 2020, Thermo converted the entire principal balance outstanding under the Loan Agreement with Thermo into shares of common stock. See further discussion in Note 4: Long-Term Debt and Other Financing Arrangements. As a result of the conversion, the Company wrote off the total fair value of the compound embedded derivative liability with the Loan Agreement with Thermo based on the derivative value on the conversion date of $1.1 million. The significant quantitative Level 3 inputs utilized in the valuation model are shown in the table below: February 19, 2020 Stock Price Risk-Free Interest Rate Note Conversion Price Discount Rate Market Price of Common Stock Compound embedded derivative with the Loan Agreement with Thermo 70% - 130% 1.4 % $0.69 27 % $0.42 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. RELATED PARTY TRANSACTIONS Payables to Thermo and other affiliates related to normal purchase transactions were $0.4 million and $0.3 million as of June 30, 2020 and December 31, 2019, respectively. Transactions with Thermo Certain general and administrative expenses are incurred by Thermo on behalf of the Company. These expenses, which include non-cash expenses that the Company accounts for as a contribution to capital, related to services provided by certain executive officers of Thermo and expenses incurred by Thermo on behalf of the Company which are charged to the Company. The expenses charged are based on actual amounts (with no mark-up) incurred by Thermo or upon allocated employee time. In February 2019, the Company entered into a lease agreement with Thermo Covington, LLC for the Company's headquarters office. Annual lease payments started at $1.4 million per year, increasing at a rate of 2.5% per year, for a lease term of 10 years. During the three months ended June 30, 2020 and 2019, the Company incurred lease expense of $0.4 million in each period under this lease agreement. During the six months ended June 30, 2020 and 2019, the Company incurred lease expense of $0.8 million and $0.7 million, respectively, due to Thermo under this lease agreement. On February 19, 2020, Thermo converted the entire principal balance outstanding under the Loan Agreement resulting in the issuance of 200.1 million shares of common stock. In November 2019, the Company entered into the Second Lien Term Loan Facility. Thermo's participation in the Second Lien Term Loan Facility was $95.1 million. This principal balance earns paid-in-kind interest at a rate of 13% per annum. Interest accrued since inception with respect to Thermo's portion of the debt outstanding on the Second Lien Term Loan Facility was approximately $7.6 million, of which $6.4 million was accrued during the six months ended June 30, 2020. In connection with the issuance of the Second Lien Term Loan Facility, the holders received warrants to purchase shares of voting common stock, of which Thermo received 59.5 million warrants with an exercise price of $0.38 per share. As of June 30, 2020, approximately 50.0 million warrants remain outstanding. Additionally, the Facility Agreement requires Thermo to maintain minimum and maximum ownership levels in the Company's common stock. The Company has a Strategic Review Committee that is required to remain in existence for as long as Thermo and its affiliates beneficially own forty-five percent (45%) or more of Globalstar’s outstanding common stock. To the extent permitted by applicable law, the Strategic Review Committee has exclusive responsibility for the oversight, review and approval of, among other things and subject to certain exceptions, any acquisition by Thermo and its affiliates of additional newly-issued securities of the Company and any transaction between the Company and Thermo and its affiliates with a value in excess of $250,000. See Note 4: Long-Term Debt and Other Financing Arrangements for further discussion of the Company's debt and financing transactions with Thermo. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | 8. (LOSS) EARNINGS PER SHARE Basic (loss) earnings per share is computed by dividing (loss) income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. The numerator used to calculate diluted EPS includes the effect of dilutive securities, including interest expense, net, and derivative gains or losses reflected in net (loss) income. Common stock equivalents are included in the calculation of diluted earnings per share only when the effect of their inclusion would be dilutive. The effect of potentially dilutive common shares for the Company's convertible notes are calculated using the if-converted method. Generally, for all other potentially dilutive common shares, the effect is calculated using the treasury stock method. The following table sets forth the calculation of basic and diluted (loss) earnings 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net (loss) income $ (24,736) $ 6,189 $ (62,959) $ 31,960 Effect of dilutive securities: 2013 8.00% Notes 7 (228) (213) (415) Loan Agreement with Thermo — (30,239) 2,506 (82,536) Loss to common stockholders plus assumed conversions $ (24,729) $ (24,278) $ (60,666) $ (50,991) Weighted average common shares outstanding: Basic shares outstanding 1,668,974 1,450,380 1,613,467 1,449,355 Incremental shares from assumed exercises, conversions and other issuance of: Stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan — 3,828 — 4,948 2013 8.00% Notes — 2,020 — 2,020 Loan Agreement with Thermo — 184,214 — 184,214 Diluted shares outstanding 1,668,974 1,640,442 1,613,467 1,640,537 Net (loss) income per common share: Basic $ (0.01) $ 0.00 $ (0.04) $ 0.02 Diluted (0.01) (0.01) (0.04) (0.03) For each of the three and six months ended June 30, 2020, 4.4 million shares of potential common stock were excluded from diluted shares outstanding because the effects of potentially dilutive securities would be anti-dilutive. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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 Companies, through commonly controlled affiliates, (collectively, “Thermo”) is the principal owner and largest stockholder of Globalstar. The Company’s Executive Chairman of the Board controls Thermo. Two other members of the Company's Board of Directors are also directors, officers or minority equity owners of various Thermo entities. The Company has prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”); however, management believes the disclosures made are adequate to make the information presented not misleading. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Globalstar Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 28, 2020 (the “2019 Annual Report”). The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates. The Company evaluates estimates on an ongoing basis. Significant estimates include the value of derivative instruments, the allowance for doubtful accounts, the net realizable value of inventory, the useful life and value of property and equipment, the value of stock-based compensation and income taxes. The Company has made certain reclassifications to prior period condensed consolidated financial statements to conform to current period presentation. These unaudited interim condensed consolidated financial statements include the accounts of Globalstar and all its subsidiaries. All significant intercompany transactions and balances have been eliminated in the consolidation. In the opinion of management, the information included herein includes all adjustments, consisting of normal recurring adjustments, that are necessary for a fair presentation of the Company’s condensed consolidated statements of operations, condensed consolidated balance sheets, condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2020 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 August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . As part of the FASB's disclosure framework project, it has changed the disclosure requirements for defined pension and other post-retirement benefit plans as outlined in ASU No. 2018-14. This ASU is effective for public entities for annual periods beginning after December 15, 2020. This ASU adds certain narrative disclosures and removes other disclosures as outlined in ASU No. 2018-14 related to the defined benefit plan. In December 2019, the FASB issued ASU No. 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU No. 2019-12 amends the accounting treatment for income taxes by simplifying and clarifying certain aspects of the existing guidance. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2020. Early adoption is permitted as of the beginning of any interim or annual reporting period. The Company has not yet determined the impact this standard will have on its condensed consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments . ASU No. 2016-13, as amended, significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaced the incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities are required to 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 became effective for public entities for annual and interim periods beginning after December 15, 2019. The Company adopted this standard when it became effective on January 1, 2020. See Note 3: Credit Losses for a discussion of the impact to the Company's condensed consolidated financial statements and required disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . As part of the FASB's disclosure framework project, it has eliminated, amended and added disclosure requirements for fair value measurements. Entities are no longer required to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy of timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Public companies are required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. The |
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 as well as certain contingent put features within the Second Term Loan Facility. The fair value of each embedded derivative liability is marked-to-market at the end of each reporting period, or more frequently as deemed necessary, with any changes in value reported in its condensed consolidated statements of operations and its condensed consolidated statements of cash flows as an operating activity. The Company classifies its derivative liabilities |
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 (loss) earnings per share is computed by dividing (loss) income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. The numerator used to calculate diluted EPS includes the effect of dilutive securities, including interest expense, net, and derivative gains or losses reflected in net (loss) income. 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, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue disaggregated by product and services | The following table discloses revenue disaggregated by type of product and service (amounts in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Service revenue: Duplex $ 8,556 $ 9,031 $ 16,219 $ 17,676 SPOT 11,579 12,619 23,702 25,714 Commercial IoT 4,298 4,353 8,608 8,051 IGO 109 179 200 345 Engineering and other 2,548 518 7,296 1,033 Total service revenue 27,090 26,700 56,025 52,819 Subscriber equipment sales: Duplex $ 625 $ 306 $ 1,029 $ 557 SPOT 1,695 2,186 3,102 3,777 Commercial IoT 939 1,972 2,352 4,044 Other 15 27 50 72 Total subscriber equipment sales 3,274 4,491 6,533 8,450 Total revenue $ 30,364 $ 31,191 $ 62,558 $ 61,269 Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Service revenue: United States $ 20,016 $ 19,452 $ 42,705 $ 38,704 Canada 4,392 4,331 8,363 8,142 Europe 1,791 2,212 3,152 4,334 Central and South America 669 570 1,379 1,134 Others 222 135 426 505 Total service revenue 27,090 26,700 56,025 52,819 Subscriber equipment sales: United States $ 1,721 $ 2,549 $ 3,164 $ 4,760 Canada 859 1,133 1,942 1,946 Europe 376 440 870 1,017 Central and South America 306 349 572 661 Others 12 20 (15) 66 Total subscriber equipment sales 3,274 4,491 6,533 8,450 Total revenue $ 30,364 $ 31,191 $ 62,558 $ 61,269 |
Credit Losses (Tables)
Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Loss | The following is a summary of the activity in the allowance for doubtful accounts as of June 30, 2020 (in thousands): Balance at beginning of period $ 2,952 Impact of adoption of ASU 2016-13 1,684 Provision, net of recoveries 1,419 Write-offs and other adjustments (919) Balance at end of period $ 5,136 |
Long-Term Debt and Other Fina_2
Long-Term Debt and Other Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following (in thousands): June 30, 2020 December 31, 2019 Principal Unamortized Discount and Deferred Financing Costs Carrying Principal Unamortized Discount and Deferred Financing Costs Carrying Facility Agreement $ 190,084 $ 8,290 $ 181,794 $ 190,361 $ 10,185 $ 180,176 Second Lien Term Loan Facility 215,476 34,371 181,105 201,495 35,448 166,047 Loan Agreement with Thermo — — — 135,105 18,562 116,543 8.00% Convertible Senior Notes Issued in 2013 1,396 — 1,396 1,410 — 1,410 Payroll Protection Program Loan 4,973 35 4,938 — — — Total Debt 411,929 42,696 369,233 528,371 64,195 464,176 Less: Current Portion 45,000 — 45,000 — — — Long-Term Debt $ 366,929 $ 42,696 $ 324,233 $ 528,371 $ 64,195 $ 464,176 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 December 31, 2019 Derivative liabilities: Compound embedded derivative with the 2013 8.00% Notes $ (255) $ (522) Compound embedded derivative with the Loan Agreement with Thermo — (1,270) Compound embedded derivative with the Second Lien Term Loan Facility (2,140) (2,000) Total derivative liabilities $ (2,395) $ (3,792) |
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, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Compound embedded derivative with the 2013 8.00% Notes $ 20 $ 255 $ 267 $ 469 Compound embedded derivative with the Loan Agreement with Thermo — 34,861 212 91,655 Compound embedded derivative with the Second Lien Term Loan Facility 1,140 — (140) — Total derivative gain $ 1,160 $ 35,116 $ 339 $ 92,124 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial liabilities measured at fair value on recurring basis | The following tables provide a summary of the liabilities measured at fair value on a recurring basis (in thousands): June 30, 2020 (Level 1) (Level 2) (Level 3) Total Compound embedded derivative with the 2013 8.00% Notes $ — $ — $ (255) $ (255) Compound embedded derivative with the Second Lien Term Loan Facility — — (2,140) (2,140) Total liabilities measured at fair value $ — $ — $ (2,395) $ (2,395) December 31, 2019 (Level 1) (Level 2) (Level 3) Total Compound embedded derivative with the 2013 8.00% Notes $ — $ — $ (522) $ (522) Compound embedded derivative with the Loan Agreement with Thermo — — (1,270) (1,270) Compound embedded derivative with the Second Lien Term Loan Facility — — (2,000) (2,000) Total liabilities measured at fair value $ — $ — $ (3,792) $ (3,792) |
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, 2020 Stock Price Risk-Free Note Discount Rate Market Price of Common Stock Compound embedded derivative with the 2013 8.00% Notes 80% - 115% 0.2 % $0.69 27 % $0.33 During the first quarter of 2020, the compound embedded derivative with the Loan Agreement with Thermo was extinguished and, therefore, as of June 30, 2020, the value was zero and there were no significant qualitative Level 3 inputs utilized in a valuation. See Note 4: Long-Term Debt and Other Financing Arrangements and Note 5: Derivatives for further discussion. December 31, 2019 Stock Price Risk-Free Note Discount Rate Market Price of Common Stock Compound embedded derivative with the 2013 8.00% Notes 70% - 130% 1.6 % $0.69 27 % $0.52 Compound embedded derivative with the Loan Agreement with Thermo 70% - 130% 1.6 % $0.69 27 % $0.52 February 19, 2020 Stock Price Risk-Free Interest Rate Note Conversion Price Discount Rate Market Price of Common Stock Compound embedded derivative with the Loan Agreement with Thermo 70% - 130% 1.4 % $0.69 27 % $0.42 |
Schedule of 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): Balance at beginning of period, January 1, 2020 and 2019, respectively $ (3,792) $ (146,865) Issuance of compound embedded derivative with the Second Lien Term Loan Facility — (2,000) Derivative adjustment related to conversions and exercises 1,058 — Unrealized gain, included in derivative gain 339 145,073 Balance at end of period, June 30, 2020 and December 31, 2019, respectively $ (2,395) $ (3,792) |
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, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Loan Agreement with Thermo $ — $ — $ 116,543 $ 88,886 2013 8.00% Notes 1,396 925 1,410 875 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic weighted average share to diluted weighted average common shares outstanding | The following table sets forth the calculation of basic and diluted (loss) earnings 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net (loss) income $ (24,736) $ 6,189 $ (62,959) $ 31,960 Effect of dilutive securities: 2013 8.00% Notes 7 (228) (213) (415) Loan Agreement with Thermo — (30,239) 2,506 (82,536) Loss to common stockholders plus assumed conversions $ (24,729) $ (24,278) $ (60,666) $ (50,991) Weighted average common shares outstanding: Basic shares outstanding 1,668,974 1,450,380 1,613,467 1,449,355 Incremental shares from assumed exercises, conversions and other issuance of: Stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan — 3,828 — 4,948 2013 8.00% Notes — 2,020 — 2,020 Loan Agreement with Thermo — 184,214 — 184,214 Diluted shares outstanding 1,668,974 1,640,442 1,613,467 1,640,537 Net (loss) income per common share: Basic $ (0.01) $ 0.00 $ (0.04) $ 0.02 Diluted (0.01) (0.01) (0.04) (0.03) |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Details) - USD ($) | Jun. 30, 2020 | Apr. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Debt instrument, principal amount outstanding | $ 411,929,000 | $ 528,371,000 | |
Payroll Protection Program Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount outstanding | $ 5,000,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 30,364 | $ 31,191 | $ 62,558 | $ 61,269 |
Service revenue: | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 27,090 | 26,700 | 56,025 | 52,819 |
Service revenue: | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,016 | 19,452 | 42,705 | 38,704 |
Service revenue: | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,392 | 4,331 | 8,363 | 8,142 |
Service revenue: | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,791 | 2,212 | 3,152 | 4,334 |
Service revenue: | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 669 | 570 | 1,379 | 1,134 |
Service revenue: | Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 222 | 135 | 426 | 505 |
Duplex | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,556 | 9,031 | 16,219 | 17,676 |
SPOT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,579 | 12,619 | 23,702 | 25,714 |
Commercial IoT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,298 | 4,353 | 8,608 | 8,051 |
IGO | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 109 | 179 | 200 | 345 |
Engineering and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,548 | 518 | 7,296 | 1,033 |
Subscriber equipment sales: | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,274 | 4,491 | 6,533 | 8,450 |
Subscriber equipment sales: | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,721 | 2,549 | 3,164 | 4,760 |
Subscriber equipment sales: | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 859 | 1,133 | 1,942 | 1,946 |
Subscriber equipment sales: | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 376 | 440 | 870 | 1,017 |
Subscriber equipment sales: | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 306 | 349 | 572 | 661 |
Subscriber equipment sales: | Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12 | 20 | (15) | 66 |
Duplex | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 625 | 306 | 1,029 | 557 |
SPOT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,695 | 2,186 | 3,102 | 3,777 |
Commercial IoT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 939 | 1,972 | 2,352 | 4,044 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 15 | $ 27 | $ 50 | $ 72 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue adjustment | $ 30,364 | $ 31,191 | $ 62,558 | $ 61,269 | |
Accounts receivable | 19,756 | 19,756 | $ 21,760 | ||
Contract with customer, revenue recognized | 24,400 | $ 21,400 | |||
Other Services, Nonrecurring Engineering Services (NRE) | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue adjustment | 2,000 | 6,000 | |||
IGO | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Accounts receivable | $ 6,300 | $ 6,300 | $ 6,500 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | Jun. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation, percentage | 84.00% |
Long-term | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue - Remaining Performan_2
Revenue - Remaining Performance Obligation, Differing Contracts (Details) $ in Millions | Jun. 30, 2020USD ($) |
Long-term | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 27 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | |
Accounts Receivable, Noncurrent, Past Due [Line Items] | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |
Impact of adopt of adoption of credit loss standard | $ 1,684 | ||
Accounting Standards Update 2016-13 | |||
Accounts Receivable, Noncurrent, Past Due [Line Items] | |||
Impact of adopt of adoption of credit loss standard | $ 1,700 |
Credit Losses - Reconciliation
Credit Losses - Reconciliation of Allowance For Credit Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 2,952 | |
Impact of adoption of ASU 2016-13 | 1,684 | |
Provision, net of recoveries | 1,419 | $ 1,170 |
Write-offs and other adjustments | (919) | |
Balance at end of period | $ 5,136 |
Long-Term Debt and Other Fina_3
Long-Term Debt and Other Financing Arrangements - Schedule of Long-term Debt (Details) - USD ($) | Jun. 30, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2013 | May 31, 2013 |
Principal Amount | |||||
Total Debt | $ 411,929,000 | $ 528,371,000 | |||
Less: Current Portion | 45,000,000 | 0 | |||
Long-Term Debt | 366,929,000 | 528,371,000 | |||
Unamortized Discount and Deferred Financing Costs | |||||
Total Debt | 42,696,000 | 64,195,000 | |||
Less: Current Portion | 0 | 0 | |||
Long-Term Debt | 42,696,000 | 64,195,000 | |||
Carrying Value | |||||
Total Debt | 369,233,000 | 464,176,000 | |||
Less: Current Portion | 45,000,000 | 0 | |||
Long-Term Debt | 324,233,000 | 464,176,000 | |||
Facility Agreement | |||||
Principal Amount | |||||
Total Debt | 190,084,000 | 190,361,000 | |||
Unamortized Discount and Deferred Financing Costs | |||||
Total Debt | 8,290,000 | 10,185,000 | |||
Carrying Value | |||||
Total Debt | 181,794,000 | 180,176,000 | |||
Second Lien Term Loan Facility | |||||
Principal Amount | |||||
Total Debt | 215,476,000 | 201,495,000 | |||
Unamortized Discount and Deferred Financing Costs | |||||
Total Debt | 34,371,000 | 35,448,000 | |||
Carrying Value | |||||
Total Debt | 181,105,000 | 166,047,000 | |||
Loan Agreement with Thermo | |||||
Principal Amount | |||||
Total Debt | 0 | 135,105,000 | |||
Unamortized Discount and Deferred Financing Costs | |||||
Total Debt | 0 | 18,562,000 | |||
Carrying Value | |||||
Total Debt | 0 | 116,543,000 | |||
Payroll Protection Program Loan | |||||
Debt Instrument [Line Items] | |||||
Loan interest rate, percentage | 1.00% | ||||
Principal Amount | |||||
Total Debt | 4,973,000 | $ 5,000,000 | 0 | ||
Unamortized Discount and Deferred Financing Costs | |||||
Total Debt | 35,000 | 0 | |||
Carrying Value | |||||
Total Debt | $ 4,938,000 | 0 | |||
8.00% Convertible Senior Notes Issued in 2013 | |||||
Debt Instrument [Line Items] | |||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% | ||
Principal Amount | |||||
Total Debt | $ 1,396,000 | 1,410,000 | $ 54,600,000 | ||
Unamortized Discount and Deferred Financing Costs | |||||
Total Debt | 0 | 0 | |||
Carrying Value | |||||
Total Debt | $ 1,396,000 | $ 1,410,000 |
Long-Term Debt and Other Fina_4
Long-Term Debt and Other Financing Arrangements - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | Feb. 19, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Apr. 30, 2020 | Nov. 30, 2019 | Dec. 31, 2013 | May 31, 2013 |
Debt Instrument [Line Items] | |||||||||
Warrant, strike price (in USD per share) | $ 0.38 | ||||||||
Proceeds from warrant exercises | $ 3,600,000 | ||||||||
Debt instrument, principal amount outstanding | 528,371,000 | $ 411,929,000 | $ 411,929,000 | ||||||
Interest rate, payable in cash, percentage | 5.75% | ||||||||
Interest rate, payable in additional notes, percentage | 2.25% | ||||||||
Principal amount of Loan Agreement with Thermo converted into common stock | $ 137,366,000 | $ 0 | 55,400,000 | ||||||
Facility Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest above LIBOR rate, percentage | 4.75% | ||||||||
Debt service reserve account | $ 50,900,000 | 50,900,000 | |||||||
Required amount of equity Company must raise (no less than) | 45,000,000 | ||||||||
Debt instrument, principal amount outstanding | 190,361,000 | 190,084,000 | 190,084,000 | ||||||
Facility Agreement | Noncurrent Restricted Cash | |||||||||
Debt Instrument [Line Items] | |||||||||
Restricted cash | $ 51,200,000 | $ 51,200,000 | |||||||
Facility Agreement | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate increase, percentage | 0.50% | ||||||||
Facility Agreement | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate increase, percentage | 5.75% | ||||||||
Compound embedded derivative with the Second Lien Term Loan Facility | Thermo | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, strike price (in USD per share) | $ 0.38 | ||||||||
Debt instrument, principal amount outstanding | $ 95,100,000 | ||||||||
Loan interest rate, percentage | 13.00% | ||||||||
Warrants issued (in shares) | 59.5 | ||||||||
Compound embedded derivative with the Second Lien Term Loan Facility | Thermo Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, strike price (in USD per share) | $ 0.38 | ||||||||
Debt instrument, principal amount outstanding | $ 199,000,000 | ||||||||
Loan interest rate, percentage | 13.50% | ||||||||
Warrants issued (in shares) | 115 | 115 | 124.5 | ||||||
Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal amount outstanding | 135,105,000 | $ 0 | $ 0 | ||||||
Subordinated Debt | Thermo | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan interest rate, percentage | 12.00% | 12.00% | |||||||
Loan agreement, conversion price (in USD per share) | $ 0.69 | $ 0.69 | |||||||
Debt conversion, converted instrument, amount | $ 137,400,000 | ||||||||
Outstanding interest | $ 93,900,000 | ||||||||
Debt conversion, converted instrument, shares issued (in shares) | 200.1 | ||||||||
8.00% Convertible Senior Notes Issued in 2013 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal amount outstanding | 1,410,000 | $ 1,396,000 | $ 1,396,000 | $ 54,600,000 | |||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% | 8.00% | |||||
Loan agreement, conversion price (in USD per share) | $ 0.69 | ||||||||
Debt conversion, converted instrument, shares issued (in shares) | 98.6 | ||||||||
Payroll Protection Program Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal amount outstanding | $ 0 | $ 4,973,000 | $ 4,973,000 | $ 5,000,000 | |||||
Loan interest rate, percentage | 1.00% |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2013 | May 31, 2013 |
Derivative liabilities: | ||||
Total derivative liabilities | $ (2,395) | $ (3,792) | ||
Compound embedded derivative with the 2013 8.00% Notes | ||||
Derivative liabilities: | ||||
Total derivative liabilities | (255) | (522) | ||
Compound embedded derivative with the Loan Agreement with Thermo | ||||
Derivative liabilities: | ||||
Total derivative liabilities | 0 | (1,270) | ||
Compound embedded derivative with the Second Lien Term Loan Facility | ||||
Derivative liabilities: | ||||
Total derivative liabilities | $ (2,140) | $ (2,000) | ||
Compound embedded derivative with the 2013 8.00% Notes | ||||
Derivatives, Fair Value [Line Items] | ||||
Loan interest rate, percentage | 8.00% | 8.00% | ||
8.00% Convertible Senior Notes Issued in 2013 | ||||
Derivatives, Fair Value [Line Items] | ||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain | $ 1,160 | $ 35,116 | $ 339 | $ 92,124 | |
Compound embedded derivative with the 2013 8.00% Notes | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain | 20 | 255 | 267 | 469 | |
Compound embedded derivative with the Loan Agreement with Thermo | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain | 0 | 34,861 | 212 | 91,655 | |
Compound embedded derivative with the Second Lien Term Loan Facility | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain | $ 1,140 | $ 0 | $ (140) | $ 0 | |
Compound embedded derivative with the 2013 8.00% Notes | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | Jun. 30, 2020 | Dec. 31, 2013 | May 31, 2013 |
8.00% Convertible Senior Notes Issued in 2013 | |||
Derivative [Line Items] | |||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | $ (2,395) | $ (3,792) |
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 | (255) | (522) |
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 | (1,270) | |
Compound embedded derivative with the Second Lien Term Loan Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (2,140) | (2,000) |
(Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
(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 |
(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 | |
(Level 1) | Compound embedded derivative with the Second Lien Term Loan Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
(Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
(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 |
(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 | |
(Level 2) | Compound embedded derivative with the Second Lien Term Loan Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
(Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | (2,395) | (3,792) |
(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 | (255) | (522) |
(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 | (1,270) | |
(Level 3) | Compound embedded derivative with the Second Lien Term Loan Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | $ (2,140) | $ (2,000) |
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, percentage | 8.00% | 8.00% |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Jun. 30, 2020USD ($) | Feb. 19, 2020USD ($) | Dec. 31, 2019 | Dec. 31, 2013 | May 31, 2013 |
8.00% Convertible Senior Notes Issued in 2013 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% | ||
Compound embedded derivative with the Loan Agreement with Thermo | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Embedded derivative liability | $ 0 | $ 1,100,000 | |||
Discount Rate | Compound embedded derivative with the Loan Agreement with Thermo | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Measurement input | 0.27 | ||||
Discount Rate | Compound embedded derivative with the 2013 8.00% Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Measurement input | 0.27 | 0.27 | |||
Discount Rate | Compound Embedded Derivative With Second Lien Term Loan Facility | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Measurement input | 0.19 | 0.18 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Liabilities (Details) | Jun. 30, 2020$ / shares | Feb. 19, 2020$ / shares | Dec. 31, 2019$ / shares |
Stock Price Volatility | Compound embedded derivative with the 2013 8.00% Notes | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.80 | 0.70 | |
Stock Price Volatility | Compound embedded derivative with the 2013 8.00% Notes | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 1.15 | 1.30 | |
Stock Price Volatility | Compound embedded derivative with the Loan Agreement with Thermo | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.70 | ||
Stock Price Volatility | Compound embedded derivative with the Loan Agreement with Thermo | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 1.30 | ||
Risk-Free Interest Rate | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.002 | 0.016 | |
Measurement input | 0.014 | ||
Risk-Free Interest Rate | Compound embedded derivative with the Loan Agreement with Thermo | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.016 | ||
Note Conversion Price | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.69 | 0.69 | |
Measurement input | 0.69 | ||
Note Conversion Price | Compound embedded derivative with the Loan Agreement with Thermo | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.69 | ||
Discount Rate | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.27 | 0.27 | |
Measurement input | 0.27 | ||
Discount Rate | Compound embedded derivative with the Loan Agreement with Thermo | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.27 | ||
Market Price of Common Stock | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.33 | 0.52 | |
Measurement input | 0.42 | ||
Market Price of Common Stock | Compound embedded derivative with the Loan Agreement with Thermo | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Measurement input | 0.52 | ||
Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Loan interest rate, percentage | 8.00% | 8.00% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period, January 1, 2020 and 2019, respectively | $ (3,792) | $ (146,865) |
Issuance of compound embedded derivative with the Second Lien Term Loan Facility | 0 | (2,000) |
Derivative adjustment related to conversions and exercises | 1,058 | 0 |
Unrealized gain, included in derivative gain | 339 | 145,073 |
Balance at end of period, June 30, 2020 and December 31, 2019, respectively | $ (2,395) | $ (3,792) |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value and Carrying Value of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2013 | May 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Carrying Value | $ 369,233 | $ 464,176 | ||
Loan Agreement with Thermo | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Carrying Value | 0 | 116,543 | ||
Loan Agreement with Thermo | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Carrying Value | 0 | 116,543 | ||
Loan Agreement with Thermo | Estimated Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Estimated Fair Value | $ 0 | 88,886 | ||
2013 8.00% Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% | |
Carrying Value | $ 1,396 | 1,410 | ||
2013 8.00% Notes | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Carrying Value | 1,396 | 1,410 | ||
2013 8.00% Notes | Estimated Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Estimated Fair Value | $ 925 | $ 875 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Fair Value Measurements (Details) | Jun. 30, 2020 | Feb. 19, 2020$ / shares | Dec. 31, 2019 |
Risk-Free Interest Rate | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.014 | ||
Note Conversion Price | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.69 | ||
Discount Rate | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.27 | ||
Market Price of Common Stock | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.42 | ||
Minimum | Stock Price Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrants issued, measurement inputs (percent) | 0.70 | ||
Minimum | Stock Price Volatility | Compound embedded derivative with the Loan Agreement with Thermo | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.70 | ||
Minimum | Stock Price Volatility | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.80 | 0.70 | |
Maximum | Stock Price Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrants issued, measurement inputs (percent) | 1.30 | ||
Maximum | Stock Price Volatility | Compound embedded derivative with the Loan Agreement with Thermo | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 1.30 | ||
Maximum | Stock Price Volatility | Compound embedded derivative with the 2013 8.00% Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 1.15 | 1.30 |
Related Party Transactions (Det
Related Party Transactions (Details) $ / shares in Units, shares in Millions | Feb. 19, 2020shares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($)$ / sharesshares | Feb. 28, 2019 |
Related Party Transaction [Line Items] | |||||||||
Payables to affiliates | $ 361,000 | $ 361,000 | $ 361,000 | $ 261,000 | |||||
Debt instrument, principal amount outstanding | 411,929,000 | 411,929,000 | 411,929,000 | 528,371,000 | |||||
Warrant, strike price (in USD per share) | $ / shares | $ 0.38 | ||||||||
Warrants outstanding | 50,000,000 | 50,000,000 | 50,000,000 | ||||||
Subordinated Debt | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument, principal amount outstanding | 0 | 0 | 0 | 135,105,000 | |||||
Thermo | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payables to affiliates | 400,000 | 400,000 | 400,000 | $ 300,000 | |||||
Annual base rental payments | 1,400,000 | 1,400,000 | $ 1,400,000 | ||||||
Annual rental payment escalation percentage | 2.50% | ||||||||
Operating lease term | 10 years | ||||||||
Rent expense | $ 400,000 | $ 400,000 | $ 800,000 | $ 700,000 | |||||
Thermo | Subordinated Debt | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt conversion, converted instrument, shares issued (in shares) | shares | 200.1 | ||||||||
Loan interest rate, percentage | 12.00% | 12.00% | 12.00% | ||||||
Thermo | Subordinated Debt | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt conversion, converted instrument, shares issued (in shares) | shares | 200.1 | ||||||||
Thermo | |||||||||
Related Party Transaction [Line Items] | |||||||||
Equity method investment, threshold percentage requiring a Strategic Review Committee | 0.45 | ||||||||
Equity method investment, transaction threshold for approval requirement | $ 250,000 | ||||||||
Thermo | Compound embedded derivative with the Second Lien Term Loan Facility | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument, principal amount outstanding | $ 95,100,000 | ||||||||
Loan interest rate, percentage | 13.00% | ||||||||
Interest expense, related party | $ 6,400,000 | $ 7,600,000 | |||||||
Warrants issued (in shares) | shares | 59.5 | ||||||||
Warrant, strike price (in USD per share) | $ / shares | $ 0.38 |
(Loss) Earnings Per Share - Sch
(Loss) Earnings Per Share - Schedule of Basic and Diluted (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2013 | May 31, 2013 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Net (loss) income | $ (24,736) | $ (38,223) | $ 6,189 | $ 25,771 | $ (62,959) | $ 31,960 | |||
Effect of dilutive securities: | |||||||||
Loss to common stockholders plus assumed conversions | $ (24,729) | $ (24,278) | $ (60,666) | $ (50,991) | |||||
Weighted average common shares outstanding: | |||||||||
Basic shares outstanding (in shares) | 1,668,974 | 1,450,380 | 1,613,467 | 1,449,355 | |||||
Incremental shares from assumed exercises, conversions and other issuance of: | |||||||||
Stock options, restricted stock, restricted stock units and ESPP (in shares) | 0 | 3,828 | 0 | 4,948 | |||||
Diluted shares outstanding (in shares) | 1,668,974 | 1,640,442 | 1,613,467 | 1,640,537 | |||||
Net (loss) income per common share: | |||||||||
Basic (USD per share) | $ (0.01) | $ 0 | $ (0.04) | $ 0.02 | |||||
Diluted (USD per share) | $ (0.01) | $ (0.01) | $ (0.04) | $ (0.03) | |||||
2013 8.00% Notes | |||||||||
Effect of dilutive securities: | |||||||||
Dilutive securities | $ 7 | $ (228) | $ (213) | $ (415) | |||||
Incremental shares from assumed exercises, conversions and other issuance of: | |||||||||
Conversion of debt securities (in shares) | 0 | 2,020 | 0 | 2,020 | |||||
Loan Agreement with Thermo | |||||||||
Effect of dilutive securities: | |||||||||
Dilutive securities | $ 0 | $ (30,239) | $ 2,506 | $ (82,536) | |||||
Incremental shares from assumed exercises, conversions and other issuance of: | |||||||||
Conversion of debt securities (in shares) | 0 | 184,214 | 0 | 184,214 | |||||
2013 8.00% Notes | |||||||||
Net (loss) income per common share: | |||||||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% | 8.00% | |||||
Compound embedded derivative with the 2013 8.00% Notes | |||||||||
Net (loss) income per common share: | |||||||||
Loan interest rate, percentage | 8.00% | 8.00% | 8.00% |
(Loss) Earnings Per Share Narra
(Loss) Earnings Per Share Narrative (Details) shares in Millions | 3 Months Ended |
Jun. 30, 2020shares | |
Earnings Per Share [Abstract] | |
Shares of potential common stock excluded from diluted shares outstanding (in shares) | 4.4 |