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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Globalstar Inc | AMEX:GSAT | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.005 | -0.38% | 1.295 | 1.3203 | 1.29 | 1.32 | 902,422 | 18:26:20 |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
41-2116508
|
(State or Other Jurisdiction of
|
|
(I.R.S. Employer Identification No.)
|
Incorporation or Organization)
|
|
|
Securities registered pursuant to section 12(b) of the Act:
|
|
|
|
|
Title of each class
|
|
Name of exchange on which registered
|
|
Trading Symbol
|
Voting Common Stock
|
|
NYSE American
|
|
GSAT
|
Large accelerated filer ☐
|
|
Accelerated filer ☒
|
|
|
|
Non-accelerated filer ☐
|
|
Smaller reporting company ☐
|
(Do not check if a smaller reporting company)
|
|
Emerging growth company ☐
|
|
Page
|
|
PART I - F
INANCIAL INFORMATION
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 2.
|
||
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|
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Item 3.
|
||
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|
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Item 4.
|
||
|
|
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PART II - O
THER INFORMATION
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
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Item 2.
|
||
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|
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Item 3.
|
||
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|
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Item 4.
|
||
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Item 5.
|
||
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Item 6.
|
||
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Three Months Ended
|
||||||
|
March 31,
2019 |
|
March 31,
2018 |
||||
Revenue:
|
|
|
|
||||
Service revenue
|
$
|
26,119
|
|
|
$
|
26,010
|
|
Subscriber equipment sales
|
3,959
|
|
|
2,739
|
|
||
Total revenue
|
30,078
|
|
|
28,749
|
|
||
Operating expenses:
|
|
|
|
||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)
|
9,853
|
|
|
9,029
|
|
||
Cost of subscriber equipment sales
|
3,149
|
|
|
2,172
|
|
||
Marketing, general and administrative
|
11,606
|
|
|
11,275
|
|
||
Depreciation, amortization and accretion
|
23,801
|
|
|
19,231
|
|
||
Total operating expenses
|
48,409
|
|
|
41,707
|
|
||
Loss from operations
|
(18,331
|
)
|
|
(12,958
|
)
|
||
Other income (expense):
|
|
|
|
||||
Interest income and expense, net of amounts capitalized
|
(12,870
|
)
|
|
(7,353
|
)
|
||
Derivative gain
|
57,008
|
|
|
108,944
|
|
||
Other
|
(9
|
)
|
|
(662
|
)
|
||
Total other income
|
44,129
|
|
|
100,929
|
|
||
Income before income taxes
|
25,798
|
|
|
87,971
|
|
||
Income tax expense
|
27
|
|
|
41
|
|
||
Net income
|
$
|
25,771
|
|
|
$
|
87,930
|
|
|
|
|
|
||||
Other comprehensive income:
|
|
|
|
||||
Foreign currency translation adjustments
|
(270
|
)
|
|
(330
|
)
|
||
Comprehensive income
|
$
|
25,501
|
|
|
$
|
87,600
|
|
|
|
|
|
||||
Net income per common share:
|
|
|
|
||||
Basic
|
$
|
0.02
|
|
|
$
|
0.07
|
|
Diluted
|
0.02
|
|
|
0.06
|
|
||
Weighted-average shares outstanding:
|
|
|
|
||||
Basic
|
1,448,318
|
|
|
1,262,336
|
|
||
Diluted
|
1,632,257
|
|
|
1,437,328
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
13,773
|
|
|
$
|
15,212
|
|
Restricted cash
|
60,574
|
|
|
60,278
|
|
||
Accounts receivable, net of allowance of $3,652 and $3,382, respectively
|
20,037
|
|
|
19,327
|
|
||
Inventory
|
14,415
|
|
|
14,274
|
|
||
Prepaid expenses and other current assets
|
24,406
|
|
|
13,410
|
|
||
Total current assets
|
133,205
|
|
|
122,501
|
|
||
Property and equipment, net
|
864,200
|
|
|
882,695
|
|
||
Operating lease right of use assets, net
|
14,587
|
|
|
—
|
|
||
Intangible and other assets, net of accumulated amortization of $8,180 and $7,930, respectively
|
32,916
|
|
|
40,286
|
|
||
Total assets
|
$
|
1,044,908
|
|
|
$
|
1,045,482
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Current portion of long-term debt
|
$
|
96,249
|
|
|
$
|
96,249
|
|
Accounts payable
|
6,206
|
|
|
6,995
|
|
||
Accrued expenses
|
34,593
|
|
|
23,085
|
|
||
Payables to affiliates
|
218
|
|
|
656
|
|
||
Derivative liabilities
|
542
|
|
|
757
|
|
||
Deferred revenue
|
31,485
|
|
|
31,938
|
|
||
Total current liabilities
|
169,293
|
|
|
159,680
|
|
||
Long-term debt, less current portion
|
374,039
|
|
|
367,202
|
|
||
Operating lease liabilities
|
13,571
|
|
|
—
|
|
||
Employee benefit obligations
|
4,541
|
|
|
4,489
|
|
||
Derivative liabilities
|
89,315
|
|
|
146,108
|
|
||
Deferred revenue
|
5,513
|
|
|
5,692
|
|
||
Other non-current liabilities
|
3,261
|
|
|
3,366
|
|
||
Total non-current liabilities
|
490,240
|
|
|
526,857
|
|
||
|
|
|
|
||||
Contingencies (Note 8)
|
|
|
|
|
|
||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
|
|
||
Preferred Stock of $0.0001 par value; 100,000,000 shares authorized and none issued and outstanding at March 31, 2019 and December 31, 2018, respectively
|
—
|
|
|
—
|
|
||
Series A Preferred Convertible Stock of $0.0001 par value; one share authorized and none issued and outstanding at March 31, 2019 and December 31, 2018, respectively
|
—
|
|
|
—
|
|
||
Voting Common Stock of $0.0001 par value; 1,900,000,000 shares authorized and 1,450,069,483 shares issued and outstanding at March 31, 2019; 1,500,000,000 shares authorized and 1,446,783,645 shares issued and outstanding at December 31, 2018
|
145
|
|
|
145
|
|
||
Nonvoting Common Stock of $0.0001 par value; no shares authorized and none issued and outstanding at March 31, 2019; 400,000,000 shares authorized and none issued and outstanding at December 31, 2018
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
1,938,293
|
|
|
1,937,364
|
|
||
Accumulated other comprehensive loss
|
(4,109
|
)
|
|
(3,839
|
)
|
||
Retained deficit
|
(1,548,954
|
)
|
|
(1,574,725
|
)
|
||
Total stockholders’ equity
|
385,375
|
|
|
358,945
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,044,908
|
|
|
$
|
1,045,482
|
|
|
Common
Shares
|
Common
Stock
Amount
|
Additional
Paid-In
Capital
|
Accumulated Other Comprehensive Loss
|
Retained
Deficit
|
Total
|
|||||||||||
Balances – January 1, 2019
|
1,446,784
|
|
$
|
145
|
|
$
|
1,937,364
|
|
$
|
(3,839
|
)
|
$
|
(1,574,725
|
)
|
$
|
358,945
|
|
Net issuance of restricted stock awards, stock for employee stock option exercises and recognition of stock-based compensation
|
3,285
|
|
—
|
|
1,000
|
|
—
|
|
—
|
|
1,000
|
|
|||||
Contribution of services
|
—
|
|
—
|
|
47
|
|
—
|
|
—
|
|
47
|
|
|||||
Recognition of stock-based compensation of employee stock purchase plan
|
—
|
|
—
|
|
77
|
|
—
|
|
—
|
|
77
|
|
|||||
Stock offering issuance costs
|
—
|
|
—
|
|
(195
|
)
|
|
|
(195
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
(270
|
)
|
—
|
|
(270
|
)
|
|||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
25,771
|
|
25,771
|
|
|||||
Balances – March 31, 2019
|
1,450,069
|
|
$
|
145
|
|
$
|
1,938,293
|
|
$
|
(4,109
|
)
|
$
|
(1,548,954
|
)
|
$
|
385,375
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|||||||||||
|
Common
Shares
|
Common
Stock
Amount
|
Additional
Paid-In
Capital
|
Accumulated Other Comprehensive Loss
|
Retained
Deficit
|
Total
|
|||||||||||
Balances – January 1, 2018
|
1,261,949
|
|
$
|
126
|
|
$
|
1,869,339
|
|
$
|
(6,939
|
)
|
$
|
(1,571,302
|
)
|
$
|
291,224
|
|
Net issuance of restricted stock awards and recognition of stock-based compensation
|
1,165
|
|
—
|
|
1,853
|
|
—
|
|
—
|
|
1,853
|
|
|||||
Recognition of stock-based compensation of employee stock purchase plan
|
—
|
|
—
|
|
84
|
|
—
|
|
—
|
|
84
|
|
|||||
Contribution of services
|
—
|
|
—
|
|
137
|
|
—
|
|
—
|
|
137
|
|
|||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
(330
|
)
|
—
|
|
(330
|
)
|
|||||
Impact of adoption of ASC 606
|
—
|
|
—
|
|
—
|
|
—
|
|
3,093
|
|
3,093
|
|
|||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
87,930
|
|
87,930
|
|
|||||
Balances – March 31, 2018
|
1,263,114
|
|
$
|
126
|
|
$
|
1,871,413
|
|
$
|
(7,269
|
)
|
$
|
(1,480,279
|
)
|
$
|
383,991
|
|
|
Three Months Ended
|
||||||
|
March 31,
2019 |
|
March 31,
2018 |
||||
Cash flows provided by (used in) operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
25,771
|
|
|
$
|
87,930
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation, amortization and accretion
|
23,801
|
|
|
19,231
|
|
||
Change in fair value of derivative assets and liabilities
|
(57,008
|
)
|
|
(108,944
|
)
|
||
Stock-based compensation expense
|
1,091
|
|
|
1,150
|
|
||
Amortization of deferred financing costs
|
2,198
|
|
|
1,658
|
|
||
Provision for bad debts
|
846
|
|
|
361
|
|
||
Noncash interest and accretion expense
|
4,505
|
|
|
2,400
|
|
||
Unrealized foreign currency (gain) loss
|
(88
|
)
|
|
590
|
|
||
Other, net
|
1
|
|
|
(40
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable
|
(1,676
|
)
|
|
(269
|
)
|
||
Inventory
|
(107
|
)
|
|
(403
|
)
|
||
Prepaid expenses and other current assets
|
(6,797
|
)
|
|
13
|
|
||
Other assets
|
1,041
|
|
|
172
|
|
||
Accounts payable and accrued expenses
|
9,122
|
|
|
5,365
|
|
||
Payables to affiliates
|
(439
|
)
|
|
71
|
|
||
Other non-current liabilities
|
(248
|
)
|
|
(104
|
)
|
||
Deferred revenue
|
(688
|
)
|
|
651
|
|
||
Net cash provided by operating activities
|
1,325
|
|
|
9,832
|
|
||
Cash flows used in investing activities:
|
|
|
|
|
|
||
Second-generation network costs (including interest)
|
(793
|
)
|
|
(341
|
)
|
||
Property and equipment additions
|
(1,013
|
)
|
|
(1,397
|
)
|
||
Purchase of intangible assets
|
(455
|
)
|
|
(648
|
)
|
||
Net cash used in investing activities
|
(2,261
|
)
|
|
(2,386
|
)
|
||
Cash flows provided by (used in) financing activities:
|
|
|
|
|
|
||
Payments for debt and equity issuance costs
|
(195
|
)
|
|
—
|
|
||
Proceeds from issuance of common stock and exercise of options and warrants
|
2
|
|
|
—
|
|
||
Net cash used in financing activities
|
(193
|
)
|
|
—
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(14
|
)
|
|
(22
|
)
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(1,143
|
)
|
|
7,424
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
75,490
|
|
|
105,279
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
74,347
|
|
|
$
|
112,703
|
|
|
As of:
|
||||||
|
March 31,
2019 |
|
December 31,
2018 |
||||
Reconciliation of cash, cash equivalents and restricted cash
|
|
|
|
||||
Cash and cash equivalents
|
$
|
13,773
|
|
|
$
|
15,212
|
|
Restricted cash (See Note 5 for further discussion on restrictions)
|
60,574
|
|
|
60,278
|
|
||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
$
|
74,347
|
|
|
$
|
75,490
|
|
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
Three Months Ended
|
||||||
|
March 31,
2019 |
|
March 31,
2018 |
||||
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||
Cash paid for interest
|
$
|
—
|
|
|
$
|
39
|
|
|
|
|
|
||||
Supplemental disclosure of non-cash financing and investing activities:
|
|
|
|
|
|
||
Increase in capitalized accrued interest for second-generation network costs
|
$
|
78
|
|
|
$
|
1,330
|
|
Capitalized accretion of debt discount and amortization of prepaid financing costs
|
63
|
|
|
1,277
|
|
|
Three Months Ended
|
||||||
|
March 31, 2019
|
|
March 31, 2018
|
||||
Service revenue:
|
|
|
|
||||
Duplex
|
$
|
8,645
|
|
|
$
|
8,783
|
|
SPOT
|
13,095
|
|
|
12,962
|
|
||
Commercial IoT
|
3,698
|
|
|
3,089
|
|
||
IGO
|
166
|
|
|
209
|
|
||
Other
|
515
|
|
|
967
|
|
||
Total service revenue
|
26,119
|
|
|
26,010
|
|
||
|
|
|
|
||||
Subscriber equipment sales:
|
|
|
|
||||
Duplex
|
$
|
251
|
|
|
$
|
431
|
|
SPOT
|
1,591
|
|
|
1,474
|
|
||
Commercial IoT
|
2,072
|
|
|
833
|
|
||
Other
|
45
|
|
|
1
|
|
||
Total subscriber equipment sales
|
3,959
|
|
|
2,739
|
|
||
|
|
|
|
||||
Total revenue
|
$
|
30,078
|
|
|
$
|
28,749
|
|
|
Three Months Ended
|
||||||
|
March 31, 2019
|
|
March 31, 2018
|
||||
Service revenue:
|
|
|
|
||||
United States
|
$
|
19,252
|
|
|
$
|
18,380
|
|
Canada
|
3,811
|
|
|
4,486
|
|
||
Europe
|
2,122
|
|
|
2,246
|
|
||
Central and South America
|
564
|
|
|
569
|
|
||
Others
|
370
|
|
|
329
|
|
||
Total service revenue
|
26,119
|
|
|
26,010
|
|
||
|
|
|
|
||||
Subscriber equipment sales:
|
|
|
|
||||
United States
|
$
|
2,211
|
|
|
$
|
1,595
|
|
Canada
|
812
|
|
|
350
|
|
||
Europe
|
577
|
|
|
389
|
|
||
Central and South America
|
312
|
|
|
388
|
|
||
Others
|
47
|
|
|
17
|
|
||
Total subscriber equipment sales
|
3,959
|
|
|
2,739
|
|
||
|
|
|
|
||||
Total revenue
|
$
|
30,078
|
|
|
$
|
28,749
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Accounts receivable
|
$
|
20,037
|
|
|
$
|
19,327
|
|
Capitalized costs to obtain a contract
|
1,970
|
|
|
2,018
|
|
||
Contract liabilities
|
36,998
|
|
|
37,630
|
|
|
|
Three Months Ended
|
||
|
|
March 31, 2019
|
||
Operating leases:
|
|
|
||
Right-of-use asset, net
|
|
$
|
14,587
|
|
|
|
|
||
Short-term lease liability (as recorded in accrued expenses)
|
|
1,376
|
|
|
Long-term lease liability
|
|
13,571
|
|
|
Total operating lease liabilities
|
|
$
|
14,947
|
|
|
|
|
||
Finance leases:
|
|
|
||
Right-of-use asset, net (as recorded in intangible and other current assets, net)
|
|
$
|
174
|
|
|
|
|
||
Short-term lease liability (as recorded in accrued expenses)
|
|
94
|
|
|
Long-term lease liability (as recorded in non-current liabilities)
|
|
63
|
|
|
Total finance lease liabilities
|
|
$
|
157
|
|
|
Impact on change in accounting policy
|
||||||||||
|
As reported
March 31, 2019 |
|
Impact of
ASC 842 |
|
Legacy
GAAP |
||||||
Right-of-use asset, net
|
$
|
14,587
|
|
|
$
|
(14,587
|
)
|
|
$
|
—
|
|
Intangible and other assets, net
|
174
|
|
|
(174
|
)
|
|
—
|
|
|||
Property and equipment, net
|
—
|
|
|
174
|
|
|
174
|
|
|||
Accrued expenses
|
1,471
|
|
|
(1,267
|
)
|
|
204
|
|
|||
Lease liabilities
|
13,571
|
|
|
(13,571
|
)
|
|
—
|
|
|||
Other non-current liabilities
|
63
|
|
|
—
|
|
|
63
|
|
|
|
Three Months Ended
|
||
|
|
March 31, 2019
|
||
Operating lease cost:
|
|
|
||
Amortization of right-of-use assets
|
|
$
|
409
|
|
Interest on lease liabilities
|
|
130
|
|
|
Finance lease cost:
|
|
|
||
Amortization of right-of-use assets
|
|
26
|
|
|
Interest on lease liabilities
|
|
3
|
|
|
Short-term lease cost
|
|
169
|
|
|
Total lease cost
|
|
$
|
737
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2019
|
|
|
|
|
|
Weighted-average lease term
|
|
|
|
Finance leases
|
|
2.0 years
|
|
Operating Leases
|
|
9.3 years
|
|
|
|
|
|
Weighted-average discount rate
|
|
|
|
Finance leases
|
|
7.8
|
%
|
Operating leases
|
|
8.4
|
%
|
|
|
Operating Leases
|
|
Finance Leases
|
||||
|
|
|
|
|
||||
2019 (remaining)
|
|
$
|
1,949
|
|
|
$
|
78
|
|
2020
|
|
2,542
|
|
|
72
|
|
||
2021
|
|
1,952
|
|
|
11
|
|
||
2022
|
|
1,851
|
|
|
6
|
|
||
2023
|
|
1,894
|
|
|
3
|
|
||
2024
|
|
1,894
|
|
|
—
|
|
||
Thereafter
|
|
8,810
|
|
|
—
|
|
||
Total lease payments
|
|
$
|
20,892
|
|
|
$
|
170
|
|
Imputed interest
|
|
(5,945
|
)
|
|
(13
|
)
|
||
Discounted lease liability
|
|
$
|
14,947
|
|
|
$
|
157
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Globalstar System:
|
|
|
|
|
|
||
Space component
|
|
|
|
|
|
||
First and second-generation satellites in service
|
$
|
1,195,291
|
|
|
$
|
1,195,291
|
|
Second-generation satellite, on-ground spare
|
32,481
|
|
|
32,481
|
|
||
Ground component
|
269,293
|
|
|
256,850
|
|
||
Construction in progress:
|
|
|
|
|
|
||
Ground component
|
10,593
|
|
|
18,068
|
|
||
Next-generation software upgrades
|
2,087
|
|
|
2,250
|
|
||
Other
|
1,585
|
|
|
2,699
|
|
||
Total Globalstar System
|
1,511,330
|
|
|
1,507,639
|
|
||
Internally developed and purchased software
|
18,644
|
|
|
26,045
|
|
||
Equipment
|
9,773
|
|
|
10,097
|
|
||
Land and buildings
|
3,304
|
|
|
3,311
|
|
||
Leasehold improvements
|
1,321
|
|
|
1,478
|
|
||
Total property and equipment
|
1,544,372
|
|
|
1,548,570
|
|
||
Accumulated depreciation
|
(680,172
|
)
|
|
(665,875
|
)
|
||
Total property and equipment, net
|
$
|
864,200
|
|
|
$
|
882,695
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Principal
Amount
|
|
Unamortized Discount and Deferred Financing Costs
|
|
Carrying
Value
|
|
Principal
Amount
|
|
Unamortized Discount and Deferred Financing Costs
|
|
Carrying
Value
|
||||||||||||
Facility Agreement
|
$
|
389,390
|
|
|
$
|
22,115
|
|
|
$
|
367,275
|
|
|
$
|
389,390
|
|
|
$
|
24,355
|
|
|
$
|
365,035
|
|
Loan Agreement with Thermo
|
123,329
|
|
|
21,695
|
|
|
101,634
|
|
|
119,702
|
|
|
22,665
|
|
|
97,037
|
|
||||||
8.00% Convertible Senior Notes Issued in 2013
|
1,379
|
|
|
—
|
|
|
1,379
|
|
|
1,379
|
|
|
—
|
|
|
1,379
|
|
||||||
Total Debt
|
514,098
|
|
|
43,810
|
|
|
470,288
|
|
|
510,471
|
|
|
47,020
|
|
|
463,451
|
|
||||||
Less: Current Portion
|
96,249
|
|
|
—
|
|
|
96,249
|
|
|
96,249
|
|
|
—
|
|
|
96,249
|
|
||||||
Long-Term Debt
|
$
|
417,849
|
|
|
$
|
43,810
|
|
|
$
|
374,039
|
|
|
$
|
414,222
|
|
|
$
|
47,020
|
|
|
$
|
367,202
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Derivative liabilities:
|
|
|
|
|
|
||
Compound embedded derivative with the 2013 8.00% Notes
|
$
|
(542
|
)
|
|
$
|
(757
|
)
|
Compound embedded derivative with the Loan Agreement with Thermo
|
(89,315
|
)
|
|
(146,108
|
)
|
||
Total derivative liabilities
|
$
|
(89,857
|
)
|
|
$
|
(146,865
|
)
|
|
Three Months Ended
|
||||||
|
March 31, 2019
|
|
March 31, 2018
|
||||
Compound embedded derivative with the 2013 8.00% Notes
|
$
|
215
|
|
|
$
|
1,321
|
|
Compound embedded derivative with the Loan Agreement with Thermo
|
56,793
|
|
|
107,623
|
|
||
Total derivative gain
|
$
|
57,008
|
|
|
$
|
108,944
|
|
|
March 31, 2019
|
||||||||||||||
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
Balance
|
||||||||
Compound embedded derivative with the 2013 8.00% Notes
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(542
|
)
|
|
$
|
(542
|
)
|
Compound embedded derivative with the Loan Agreement with Thermo
|
—
|
|
|
—
|
|
|
(89,315
|
)
|
|
(89,315
|
)
|
||||
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(89,857
|
)
|
|
$
|
(89,857
|
)
|
|
December 31, 2018
|
||||||||||||||
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
Balance
|
||||||||
Compound embedded derivative with the 2013 8.00% Notes
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(757
|
)
|
|
$
|
(757
|
)
|
Compound embedded derivative with the Loan Agreement with Thermo
|
—
|
|
|
—
|
|
|
(146,108
|
)
|
|
(146,108
|
)
|
||||
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(146,865
|
)
|
|
$
|
(146,865
|
)
|
|
March 31, 2019
|
||||||||||||||
|
Stock Price
Volatility
|
|
Risk-Free
Interest
Rate
|
|
Note
Conversion
Price
|
|
Discount Rate
|
|
Market Price of Common Stock
|
||||||
Compound embedded derivative with the 2013 8.00% Notes
|
40% - 110%
|
|
2.2
|
%
|
|
$
|
0.69
|
|
|
27
|
%
|
|
$
|
0.43
|
|
Compound embedded derivative with the Loan Agreement with Thermo
|
40% - 110%
|
|
2.2
|
%
|
|
$
|
0.69
|
|
|
27
|
%
|
|
$
|
0.43
|
|
|
December 31, 2018
|
||||||||||||||
|
Stock Price
Volatility
|
|
Risk-Free
Interest
Rate
|
|
Note
Conversion
Price
|
|
Discount Rate
|
|
Market Price of Common Stock
|
||||||
Compound embedded derivative with the 2013 8.00% Notes
|
40% - 120%
|
|
2.5
|
%
|
|
$
|
0.69
|
|
|
28
|
%
|
|
$
|
0.64
|
|
Compound embedded derivative with the Loan Agreement with Thermo
|
40% - 120%
|
|
2.5
|
%
|
|
$
|
0.69
|
|
|
28
|
%
|
|
$
|
0.64
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Balance at beginning of period
|
$
|
(146,865
|
)
|
|
$
|
(227,985
|
)
|
Unrealized gain, included in derivative gain
|
57,008
|
|
|
108,944
|
|
||
Balance at end of period
|
$
|
(89,857
|
)
|
|
$
|
(119,041
|
)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
||||||||
Loan Agreement with Thermo
|
$
|
101,634
|
|
|
$
|
74,182
|
|
|
$
|
97,037
|
|
|
$
|
67,452
|
|
2013 8.00% Notes
|
1,379
|
|
|
778
|
|
|
1,379
|
|
|
734
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Net income
|
$
|
25,771
|
|
|
$
|
87,930
|
|
Effect of dilutive securities:
|
|
|
|
||||
2013 8.00% Notes
|
27
|
|
|
15
|
|
||
Loan Agreement with Thermo
|
4,497
|
|
|
2,396
|
|
||
Income to common stockholders plus assumed conversions
|
$
|
30,295
|
|
|
$
|
90,341
|
|
Weighted average common shares outstanding:
|
|
|
|
||||
Basic shares outstanding
|
1,448,318
|
|
|
1,262,336
|
|
||
Incremental shares from assumed exercises, conversions and other issuance of:
|
|
|
|
||||
Stock options, restricted stock, restricted stock units and ESPP
|
3,204
|
|
|
5,639
|
|
||
2013 8.00% Notes
|
1,998
|
|
|
2,065
|
|
||
Loan Agreement with Thermo
|
178,737
|
|
|
167,288
|
|
||
Diluted shares outstanding
|
1,632,257
|
|
|
1,437,328
|
|
||
Net income per share:
|
|
|
|
||||
Basic
|
$
|
0.02
|
|
|
$
|
0.07
|
|
Diluted
|
0.02
|
|
|
0.06
|
|
|
Parent
Company
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service revenue
|
$
|
21,937
|
|
|
$
|
9,582
|
|
|
$
|
15,129
|
|
|
$
|
(20,529
|
)
|
|
$
|
26,119
|
|
Subscriber equipment sales
|
302
|
|
|
3,486
|
|
|
1,501
|
|
|
(1,330
|
)
|
|
3,959
|
|
|||||
Total revenue
|
22,239
|
|
|
13,068
|
|
|
16,630
|
|
|
(21,859
|
)
|
|
30,078
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)
|
7,015
|
|
|
1,449
|
|
|
2,891
|
|
|
(1,502
|
)
|
|
9,853
|
|
|||||
Cost of subscriber equipment sales
|
223
|
|
|
3,066
|
|
|
1,188
|
|
|
(1,328
|
)
|
|
3,149
|
|
|||||
Marketing, general and administrative
|
7,124
|
|
|
1,301
|
|
|
22,210
|
|
|
(19,029
|
)
|
|
11,606
|
|
|||||
Depreciation, amortization and accretion
|
23,195
|
|
|
17
|
|
|
589
|
|
|
—
|
|
|
23,801
|
|
|||||
Total operating expenses
|
37,557
|
|
|
5,833
|
|
|
26,878
|
|
|
(21,859
|
)
|
|
48,409
|
|
|||||
Income (loss) from operations
|
(15,318
|
)
|
|
7,235
|
|
|
(10,248
|
)
|
|
—
|
|
|
(18,331
|
)
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest income and expense, net of amounts capitalized
|
(12,864
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
—
|
|
|
(12,870
|
)
|
|||||
Derivative gain
|
57,008
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,008
|
|
|||||
Equity in subsidiary earnings (loss)
|
(2,933
|
)
|
|
(4,634
|
)
|
|
—
|
|
|
7,567
|
|
|
—
|
|
|||||
Other
|
(122
|
)
|
|
187
|
|
|
(73
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|||||
Total other income
|
41,089
|
|
|
(4,451
|
)
|
|
(75
|
)
|
|
7,566
|
|
|
44,129
|
|
|||||
Income (loss) before income taxes
|
25,771
|
|
|
2,784
|
|
|
(10,323
|
)
|
|
7,566
|
|
|
25,798
|
|
|||||
Income tax expense
|
—
|
|
|
7
|
|
|
20
|
|
|
—
|
|
|
27
|
|
|||||
Net income (loss)
|
$
|
25,771
|
|
|
$
|
2,777
|
|
|
$
|
(10,343
|
)
|
|
$
|
7,566
|
|
|
$
|
25,771
|
|
Comprehensive income (loss)
|
$
|
25,771
|
|
|
$
|
2,777
|
|
|
$
|
(10,607
|
)
|
|
$
|
7,560
|
|
|
$
|
25,501
|
|
|
Parent
Company
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Service revenue
|
$
|
20,534
|
|
|
$
|
9,074
|
|
|
$
|
15,608
|
|
|
$
|
(19,206
|
)
|
|
$
|
26,010
|
|
Subscriber equipment sales
|
47
|
|
|
2,049
|
|
|
1,196
|
|
|
(553
|
)
|
|
2,739
|
|
|||||
Total revenue
|
20,581
|
|
|
11,123
|
|
|
16,804
|
|
|
(19,759
|
)
|
|
28,749
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)
|
6,257
|
|
|
1,390
|
|
|
2,868
|
|
|
(1,486
|
)
|
|
9,029
|
|
|||||
Cost of subscriber equipment sales
|
41
|
|
|
1,810
|
|
|
875
|
|
|
(554
|
)
|
|
2,172
|
|
|||||
Marketing, general and administrative
|
7,085
|
|
|
1,064
|
|
|
20,863
|
|
|
(17,737
|
)
|
|
11,275
|
|
|||||
Depreciation, amortization and accretion
|
19,044
|
|
|
96
|
|
|
91
|
|
|
—
|
|
|
19,231
|
|
|||||
Total operating expenses
|
32,427
|
|
|
4,360
|
|
|
24,697
|
|
|
(19,777
|
)
|
|
41,707
|
|
|||||
Income (loss) from operations
|
(11,846
|
)
|
|
6,763
|
|
|
(7,893
|
)
|
|
18
|
|
|
(12,958
|
)
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Interest income and expense, net of amounts capitalized
|
(7,386
|
)
|
|
(2
|
)
|
|
14
|
|
|
21
|
|
|
(7,353
|
)
|
|||||
Derivative gain
|
108,944
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108,944
|
|
|||||
Equity in subsidiary earnings (loss)
|
(1,320
|
)
|
|
(3,387
|
)
|
|
—
|
|
|
4,707
|
|
|
—
|
|
|||||
Other
|
(462
|
)
|
|
(176
|
)
|
|
(8
|
)
|
|
(16
|
)
|
|
(662
|
)
|
|||||
Total other income
|
99,776
|
|
|
(3,565
|
)
|
|
6
|
|
|
4,712
|
|
|
100,929
|
|
|||||
Income (loss) before income taxes
|
87,930
|
|
|
3,198
|
|
|
(7,887
|
)
|
|
4,730
|
|
|
87,971
|
|
|||||
Income tax expense
|
—
|
|
|
6
|
|
|
35
|
|
|
—
|
|
|
41
|
|
|||||
Net income (loss)
|
$
|
87,930
|
|
|
$
|
3,192
|
|
|
$
|
(7,922
|
)
|
|
$
|
4,730
|
|
|
$
|
87,930
|
|
Comprehensive income (loss)
|
$
|
87,930
|
|
|
$
|
3,192
|
|
|
$
|
(8,246
|
)
|
|
$
|
4,724
|
|
|
$
|
87,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
Company
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
9,860
|
|
|
$
|
281
|
|
|
$
|
3,632
|
|
|
$
|
—
|
|
|
$
|
13,773
|
|
Restricted cash
|
60,574
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,574
|
|
|||||
Accounts receivable, net of allowance
|
7,931
|
|
|
7,429
|
|
|
4,677
|
|
|
—
|
|
|
20,037
|
|
|||||
Intercompany receivables
|
1,051,185
|
|
|
823,295
|
|
|
68,438
|
|
|
(1,942,918
|
)
|
|
—
|
|
|||||
Inventory
|
7,290
|
|
|
5,460
|
|
|
1,665
|
|
|
—
|
|
|
14,415
|
|
|||||
Prepaid expenses and other current assets
|
10,603
|
|
|
9,111
|
|
|
4,692
|
|
|
—
|
|
|
24,406
|
|
|||||
Total current assets
|
1,147,443
|
|
|
845,576
|
|
|
83,104
|
|
|
(1,942,918
|
)
|
|
133,205
|
|
|||||
Property and equipment, net
|
833,129
|
|
|
876
|
|
|
30,191
|
|
|
4
|
|
|
864,200
|
|
|||||
Operating lease right of use assets, net
|
12,436
|
|
|
236
|
|
|
1,915
|
|
|
—
|
|
|
14,587
|
|
|||||
Intercompany notes receivable
|
5,674
|
|
|
—
|
|
|
—
|
|
|
(5,674
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
(257,501
|
)
|
|
45,744
|
|
|
50,696
|
|
|
161,061
|
|
|
—
|
|
|||||
Intangible and other assets, net
|
29,104
|
|
|
277
|
|
|
3,547
|
|
|
(12
|
)
|
|
32,916
|
|
|||||
Total assets
|
$
|
1,770,285
|
|
|
$
|
892,709
|
|
|
$
|
169,453
|
|
|
$
|
(1,787,539
|
)
|
|
$
|
1,044,908
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current portion of long-term debt
|
$
|
96,249
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
96,249
|
|
Accounts payable
|
2,253
|
|
|
2,851
|
|
|
1,102
|
|
|
—
|
|
|
6,206
|
|
|||||
Accrued expenses
|
19,453
|
|
|
7,315
|
|
|
7,825
|
|
|
—
|
|
|
34,593
|
|
|||||
Intercompany payables
|
778,914
|
|
|
827,358
|
|
|
336,587
|
|
|
(1,942,859
|
)
|
|
—
|
|
|||||
Payables to affiliates
|
218
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
218
|
|
|||||
Derivative liabilities
|
542
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
542
|
|
|||||
Deferred revenue
|
1,650
|
|
|
22,679
|
|
|
7,156
|
|
|
—
|
|
|
31,485
|
|
|||||
Total current liabilities
|
899,279
|
|
|
860,203
|
|
|
352,670
|
|
|
(1,942,859
|
)
|
|
169,293
|
|
|||||
Long-term debt, less current portion
|
374,039
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
374,039
|
|
|||||
Operating lease liabilities
|
12,035
|
|
|
201
|
|
|
1,335
|
|
|
—
|
|
|
13,571
|
|
|||||
Employee benefit obligations
|
4,541
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,541
|
|
|||||
Intercompany notes payable
|
—
|
|
|
—
|
|
|
5,674
|
|
|
(5,674
|
)
|
|
—
|
|
|||||
Derivative liabilities
|
89,315
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,315
|
|
|||||
Deferred revenue
|
5,252
|
|
|
243
|
|
|
18
|
|
|
—
|
|
|
5,513
|
|
|||||
Other non-current liabilities
|
449
|
|
|
322
|
|
|
2,490
|
|
|
—
|
|
|
3,261
|
|
|||||
Total non-current liabilities
|
485,631
|
|
|
766
|
|
|
9,517
|
|
|
(5,674
|
)
|
|
490,240
|
|
|||||
Stockholders’ equity (deficit)
|
385,375
|
|
|
31,740
|
|
|
(192,734
|
)
|
|
160,994
|
|
|
385,375
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
1,770,285
|
|
|
$
|
892,709
|
|
|
$
|
169,453
|
|
|
$
|
(1,787,539
|
)
|
|
$
|
1,044,908
|
|
|
Parent
Company
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
11,312
|
|
|
$
|
2,126
|
|
|
$
|
1,774
|
|
|
$
|
—
|
|
|
$
|
15,212
|
|
Restricted cash
|
60,278
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,278
|
|
|||||
Accounts receivable, net of allowance
|
7,138
|
|
|
7,826
|
|
|
4,363
|
|
|
—
|
|
|
19,327
|
|
|||||
Intercompany receivables
|
1,047,320
|
|
|
824,920
|
|
|
105,819
|
|
|
(1,978,059
|
)
|
|
—
|
|
|||||
Inventory
|
6,747
|
|
|
6,149
|
|
|
1,378
|
|
|
—
|
|
|
14,274
|
|
|||||
Prepaid expenses and other current assets
|
7,765
|
|
|
2,987
|
|
|
2,658
|
|
|
—
|
|
|
13,410
|
|
|||||
Total current assets
|
1,140,560
|
|
|
844,008
|
|
|
115,992
|
|
|
(1,978,059
|
)
|
|
122,501
|
|
|||||
Property and equipment, net
|
850,790
|
|
|
1,242
|
|
|
30,658
|
|
|
5
|
|
|
882,695
|
|
|||||
Intercompany notes receivable
|
5,600
|
|
|
—
|
|
|
6,436
|
|
|
(12,036
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
(255,187
|
)
|
|
42,481
|
|
|
50,220
|
|
|
162,486
|
|
|
—
|
|
|||||
Intangible and other assets, net
|
36,275
|
|
|
324
|
|
|
3,698
|
|
|
(11
|
)
|
|
40,286
|
|
|||||
Total assets
|
$
|
1,778,038
|
|
|
$
|
888,055
|
|
|
$
|
207,004
|
|
|
$
|
(1,827,615
|
)
|
|
$
|
1,045,482
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current portion of long-term debt
|
$
|
96,249
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
96,249
|
|
Accounts payable
|
2,420
|
|
|
3,378
|
|
|
1,197
|
|
|
—
|
|
|
6,995
|
|
|||||
Accrued expenses
|
8,904
|
|
|
6,747
|
|
|
7,434
|
|
|
—
|
|
|
23,085
|
|
|||||
Intercompany payables
|
778,340
|
|
|
832,284
|
|
|
367,396
|
|
|
(1,978,020
|
)
|
|
—
|
|
|||||
Payables to affiliates
|
656
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
656
|
|
|||||
Derivative liabilities
|
757
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
757
|
|
|||||
Deferred revenue
|
1,699
|
|
|
23,943
|
|
|
6,296
|
|
|
—
|
|
|
31,938
|
|
|||||
Total current liabilities
|
889,025
|
|
|
866,352
|
|
|
382,323
|
|
|
(1,978,020
|
)
|
|
159,680
|
|
|||||
Long-term debt, less current portion
|
367,202
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
367,202
|
|
|||||
Employee benefit obligations
|
4,489
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,489
|
|
|||||
Intercompany notes payable
|
6,436
|
|
|
—
|
|
|
5,600
|
|
|
(12,036
|
)
|
|
—
|
|
|||||
Derivative liabilities
|
146,108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
146,108
|
|
|||||
Deferred revenue
|
5,339
|
|
|
335
|
|
|
18
|
|
|
—
|
|
|
5,692
|
|
|||||
Other non-current liabilities
|
494
|
|
|
323
|
|
|
2,549
|
|
|
—
|
|
|
3,366
|
|
|||||
Total non-current liabilities
|
530,068
|
|
|
658
|
|
|
8,167
|
|
|
(12,036
|
)
|
|
526,857
|
|
|||||
Stockholders’ equity (deficit)
|
358,945
|
|
|
21,045
|
|
|
(183,486
|
)
|
|
162,441
|
|
|
358,945
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
1,778,038
|
|
|
$
|
888,055
|
|
|
$
|
207,004
|
|
|
$
|
(1,827,615
|
)
|
|
$
|
1,045,482
|
|
|
Parent
Company
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Cash flows provided by (used in) operating activities
|
$
|
1,145
|
|
|
$
|
(1,747
|
)
|
|
$
|
1,927
|
|
|
$
|
—
|
|
|
$
|
1,325
|
|
Cash flows used in investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Second-generation network costs (including interest)
|
(779
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(793
|
)
|
|||||
Property and equipment additions
|
(901
|
)
|
|
(98
|
)
|
|
(14
|
)
|
|
—
|
|
|
(1,013
|
)
|
|||||
Purchase of intangible assets
|
(428
|
)
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(455
|
)
|
|||||
Net cash used in investing activities
|
(2,108
|
)
|
|
(98
|
)
|
|
(55
|
)
|
|
—
|
|
|
(2,261
|
)
|
|||||
Cash flows provided by (used in) financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Payments for debt and equity issuance costs
|
(195
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(195
|
)
|
|||||
Proceeds from issuance of common stock and exercise of options and warrants
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Net cash used in financing activities
|
(193
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(193
|
)
|
|||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(1,156
|
)
|
|
(1,845
|
)
|
|
1,858
|
|
|
—
|
|
|
(1,143
|
)
|
|||||
Cash, cash equivalents and restricted cash, beginning of period
|
71,590
|
|
|
2,126
|
|
|
1,774
|
|
|
—
|
|
|
75,490
|
|
|||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
70,434
|
|
|
$
|
281
|
|
|
$
|
3,632
|
|
|
$
|
—
|
|
|
$
|
74,347
|
|
|
Parent
Company
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Cash flows provided by operating activities
|
$
|
5,920
|
|
|
$
|
3,805
|
|
|
$
|
107
|
|
|
$
|
—
|
|
|
$
|
9,832
|
|
Cash flows used in investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Second-generation network costs (including interest)
|
(318
|
)
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(341
|
)
|
|||||
Property and equipment additions
|
(1,216
|
)
|
|
(98
|
)
|
|
(83
|
)
|
|
—
|
|
|
(1,397
|
)
|
|||||
Purchase of intangible assets
|
(633
|
)
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(648
|
)
|
|||||
Net cash used in investing activities
|
(2,167
|
)
|
|
(98
|
)
|
|
(121
|
)
|
|
—
|
|
|
(2,386
|
)
|
|||||
Cash flows provided by financing activities:
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
3,753
|
|
|
3,707
|
|
|
(36
|
)
|
|
—
|
|
|
7,424
|
|
|||||
Cash, cash equivalents and restricted cash, beginning of period
|
96,499
|
|
|
4,942
|
|
|
3,838
|
|
|
—
|
|
|
105,279
|
|
|||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
100,252
|
|
|
$
|
8,649
|
|
|
$
|
3,802
|
|
|
$
|
—
|
|
|
$
|
112,703
|
|
•
|
two-way voice communication and data transmissions using mobile or fixed devices, including our GSP-1700 phone, our Globalstar 9600
TM
hotspot, two generations of our Sat-Fi
TM
, and other fixed and data-only devices ("Duplex");
|
•
|
one-way or two-way communication and data transmissions using mobile devices, including our SPOT family of products, such as SPOT X
TM
, SPOT Gen3
®
and SPOT Trace
®
, that transmit messages and the location of the device ("SPOT"); and
|
•
|
one-way data transmissions using a mobile or fixed device that transmits its location and other information to a central monitoring station, including our commercial IoT products, such as our battery- and solar-powered SmartOne, STX-3 and STINGR ("Commercial IoT").
|
•
|
total revenue, which is an indicator of our overall business growth;
|
•
|
subscriber growth and churn rate, which are both indicators of the satisfaction of our customers;
|
•
|
average monthly revenue per user, or ARPU, which is an indicator of our pricing and ability to obtain effectively long-term, high-value customers. We calculate ARPU separately for each type of our Duplex, Commercial IoT, SPOT and IGO revenue;
|
•
|
operating income and adjusted EBITDA, both of which are indicators of our financial performance; and
|
•
|
capital expenditures, which are an indicator of future revenue growth potential and cash requirements.
|
|
Three Months Ended
March 31, 2019 |
|
Three Months Ended
March 31, 2018 |
||||||||||
|
Revenue
|
|
% of Total
Revenue |
|
Revenue
|
|
% of Total
Revenue |
||||||
Service revenue:
|
|
|
|
|
|
|
|||||||
Duplex
|
$
|
8,645
|
|
|
29
|
%
|
|
$
|
8,783
|
|
|
31
|
%
|
SPOT
|
13,095
|
|
|
44
|
|
|
12,962
|
|
|
45
|
|
||
Commercial IoT
|
3,698
|
|
|
12
|
|
|
3,089
|
|
|
11
|
|
||
IGO
|
166
|
|
|
1
|
|
|
209
|
|
|
1
|
|
||
Other
|
515
|
|
|
1
|
|
|
967
|
|
|
3
|
|
||
Total
|
$
|
26,119
|
|
|
87
|
%
|
|
$
|
26,010
|
|
|
91
|
%
|
|
Three Months Ended
March 31, 2019 |
|
Three Months Ended
March 31, 2018 |
||||||||||
|
Revenue
|
|
% of Total
Revenue |
|
Revenue
|
|
% of Total
Revenue |
||||||
Subscriber equipment sales:
|
|
|
|
|
|
|
|||||||
Duplex
|
$
|
251
|
|
|
1
|
%
|
|
$
|
431
|
|
|
1
|
%
|
SPOT
|
1,591
|
|
|
5
|
|
|
1,474
|
|
|
5
|
|
||
Commercial IoT
|
2,072
|
|
|
7
|
|
|
833
|
|
|
3
|
|
||
Other
|
45
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||
Total
|
$
|
3,959
|
|
|
13
|
%
|
|
$
|
2,739
|
|
|
9
|
%
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Average number of subscribers for the period:
|
|
|
|
||||
Duplex
|
59,978
|
|
|
69,033
|
|
||
SPOT
|
288,840
|
|
|
293,561
|
|
||
Commercial IoT
|
384,673
|
|
|
332,813
|
|
||
IGO
|
27,017
|
|
|
31,200
|
|
||
Other
|
953
|
|
|
1,253
|
|
||
Total
|
761,461
|
|
|
727,860
|
|
||
|
|
|
|
||||
ARPU (monthly):
|
|
|
|
||||
Duplex
|
$
|
48.05
|
|
|
$
|
42.41
|
|
SPOT
|
15.11
|
|
|
14.72
|
|
||
Commercial IoT
|
3.20
|
|
|
3.09
|
|
||
IGO
|
2.05
|
|
|
2.23
|
|
|
Three Months Ended
|
||||||
|
March 31,
2019 |
|
March 31,
2018 |
||||
Net cash provided by operating activities
|
$
|
1,325
|
|
|
$
|
9,832
|
|
Net cash used in investing activities
|
(2,261
|
)
|
|
(2,386
|
)
|
||
Net cash used in financing activities
|
(193
|
)
|
|
—
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(14
|
)
|
|
(22
|
)
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
$
|
(1,143
|
)
|
|
$
|
7,424
|
|
Exhibit
Number
|
|
Description
|
|
|
|
3.1
|
|
|
|
|
|
10.1
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
GLOBALSTAR, INC.
|
|
|
|
|
Date:
|
May 2, 2019
|
By:
|
/s/ David B. Kagan
|
|
|
|
David B. Kagan
|
|
|
|
Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ Rebecca S. Clary
|
|
|
|
Rebecca S. Clary
|
|
|
|
Chief Financial Officer (Principal Financial Officer)
|
1 Year Globalstar Chart |
1 Month Globalstar Chart |
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