Certain statements contained in or incorporated by reference into this Quarterly
Report on Form 10-Q (this "Report"), other than purely historical information,
including, but not limited to, estimates, projections, statements relating to
our business plans, objectives and expected operating results, and the
assumptions upon which those statements are based, are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements generally are identified by the words
"believe," "project," "expect," "anticipate," "estimate," "intend," "strategy,"
"plan," "may," "should," "will," "would," "will be," "will continue," "will
likely result," and similar expressions, although not all forward-looking
statements contain these identifying words. These forward-looking statements are
based on current expectations and assumptions that are subject to risks and
uncertainties which may cause actual results to differ materially from the
forward-looking statements. Forward-looking statements, such as the statements
regarding our ability to develop and expand our business (including our ability
to monetize our spectrum rights), our anticipated capital spending, our ability
to manage costs, our ability to exploit and respond to technological innovation,
the effects of laws and regulations (including tax laws and regulations) and
legal and regulatory changes (including regulation related to the use of our
spectrum), the opportunities for strategic business combinations and the effects
of consolidation in our industry on us and our competitors, our anticipated
future revenues, our anticipated financial resources, our expectations about the
future operational performance of our satellites (including their projected
operational lives), the expected strength of and growth prospects for our
existing customers and the markets that we serve, commercial acceptance of new
products, problems relating to the ground-based facilities operated by us or by
independent gateway operators, worldwide economic, geopolitical and business
conditions and risks associated with doing business on a global basis, business
interruptions due to natural disasters, unexpected events or public health
crises, including viral pandemics such as the COVID-19 coronavirus, and other
statements contained in this Report regarding matters that are not historical
facts, involve predictions. Risks and uncertainties that could cause or
contribute to such differences include, without limitation, those in Item 1A.
Risk Factors in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2021, as filed with the Securities and Exchange Commission (the
"SEC") on February 25, 2022 (the "2021 Annual Report"). We do not intend, and
undertake no obligation, to update any of our forward-looking statements after
the date of this Report to reflect actual results or future events or
circumstances.

New risk factors emerge from time to time, and it is not possible for us to
predict all risk factors, nor can we assess the impact of all factors on our
business or the extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any forward-looking
statements. We undertake no obligation to update publicly or revise any
forward-looking statements. You should not rely upon forward-looking statements
as predictions of future events or performance. We cannot assure you that the
events and circumstances reflected in the forward-looking statements will be
achieved or occur. These cautionary statements qualify all forward-looking
statements attributable to us or persons acting on our behalf.

This "Management's Discussion and Analysis of Financial Condition" should be
read in conjunction with the "Management's Discussion and Analysis of Financial
Condition" and information included in our 2021 Annual Report.

Overview

Mobile Satellite Services Business

Globalstar, Inc. ("we", "us" or the "Company") provides Mobile Satellite
Services ("MSS") including voice and data communications services globally via
satellite. We offer these services over our network of in-orbit satellites and
our active ground stations ("gateways"), which we refer to collectively as the
Globalstar System. In addition to supporting Internet of Things ("IoT") data
transmissions in a variety of applications, we provide reliable connectivity in
areas not served or underserved by terrestrial wireless and wireline networks
and in circumstances where terrestrial networks are not operational due to
natural or man-made disasters. By providing wireless communications services
across the globe, we meet our customers' increasing desire for connectivity.

We currently provide the following communications services:



•two-way voice communication and data transmissions via our GSP-1600 and
GSP-1700 phone ("Duplex")?
•one-way or two-way communication and data transmissions using mobile devices,
including our SPOT family of products, such as SPOT X®, SPOT Gen4™ and SPOT
Trace®, that transmit messages and the location of the device ("SPOT");
•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 ST100 ("Commercial IoT"); and
                                       17
--------------------------------------------------------------------------------

•engineering services to assist certain customers (including our customer under
the Terms Agreement (discussed in Note 8: Commitments and Contingencies to our
Condensed Consolidated Financial Statements)) in developing new applications to
operate on our network, making enhancements to our ground network, and providing
other communication services using our MSS and terrestrial spectrum licenses
("Engineering and Other").

Our constellation of Low Earth Orbit ("LEO") satellites includes
second-generation satellites and certain first-generation satellites. We also
have one on-ground spare second-generation satellite that we plan to launch in
the near future. We designed our satellite network to maximize the probability
that at least one satellite is visible from any point on the Earth's surface
between the latitudes 70° north and 70° south. We designed our second-generation
satellites to last twice as long in space, have 40% greater capacity and be
built at a significantly lower cost compared to our first-generation satellites.

Our goal is to provide service levels and call or message success rates equal to
or better than our MSS competitors so our products and services are attractive
to potential customers. We believe that our system outperforms geostationary
("GEO") satellites used by some of our competitors. GEO satellite signals must
travel approximately 42,000 additional miles on average, which introduces
considerable delay and signal degradation to GEO calls.

In February 2022, we entered into a satellite procurement agreement (the
"Procurement Agreement") with Macdonald, Dettwiler and Associates Corporation
(the "Vendor") pursuant to which we will acquire 17 satellites that will
replenish our existing constellation and ensure long-term continuity of our
mobile satellite services. We are acquiring the satellites to provide continuous
satellite services to the potential customer under the Terms Agreement (defined
below), as well as services to our current and future customers. We have
committed to purchase these new satellites for a total contract price of $327.0
million and have the option to purchase additional satellites at a lower per
unit cost, subject to certain conditions. The technical specifications and
design of these new satellites are similar to our current second-generation
satellites. Rocket Lab USA, Inc. is the Vendor's satellite bus subcontractor
under the Procurement Agreement. The agreement requires the Vendor to deliver
the initial 17 new satellites by 2025, all of which are expected to be launched
by the end of 2025. Under the Terms Agreement, the counterparty is required to
reimburse 95% of the capital expenditures and certain other costs incurred for
the new satellites.

Our ground network includes our ground equipment, which uses patented CDMA technology to permit communication to multiple satellites. Our system architecture provides full frequency re-use. This maximizes satellite diversity (which maximizes quality) and network capacity as we can reuse the assigned spectrum in every satellite beam in every satellite. In addition, we have developed a proprietary technology for our SPOT and Commercial IoT services.



We compete aggressively on price. We offer a range of price-competitive products
to the industrial, governmental and consumer markets. We expect to retain our
position as a cost-effective, high quality leader in the MSS industry.

As technological advancements are made, we continue to explore opportunities to
develop new products and provide new services over our network to meet the needs
of our existing and prospective customers. We are currently pursuing initiatives
that we expect will expand our satellite communications business and more
effectively utilize the capacity of our network assets. These initiatives
include evaluating our product and service offerings in light of the shift in
demand across the MSS industry from full Duplex voice and data services to
IoT-enabled devices. To align our business model with this evolution, we have
temporarily ceased sales of and services to subscribers for certain Duplex
devices, such as Sat-Fi2®. We are currently evaluating opportunities for these
devices relative to other product and service offerings as well as the capacity
required to support these devices relative to other possible uses for the
capacity. Integrated with this assessment is the development of a two-way
reference design module to expand our Commercial IoT offerings, which is among
our other current initiatives.

Our Commercial IoT use cases continue to expand, including deployments that
support environmentally friendly initiatives. Recent deployments include remote
monitoring of fluid levels and tanks, which replaces the need for motor vehicles
to access these assets, as well as asset monitoring solutions for solar lighting
and other renewable energy sources.
                                       18
--------------------------------------------------------------------------------

Customers



The specialized needs of our global customers span many industries. As of
March 31, 2022, we had approximately 747,000 subscribers worldwide, principally
within the following markets: recreation and personal; government; public safety
and disaster relief; oil and gas; maritime and fishing; natural resources,
mining and forestry; construction; utilities; animal tracking and
transportation. In response to Russia's invasion of Ukraine, during the first
quarter of 2022, we disconnected satellite services to gateways in Russia that
were operated by an independent gateway operator. Accordingly, approximately
25,000 subscribers that previously received satellite services through these
gateways were removed from our subscriber count. Our system is able to offer our
customers cost-effective communications solutions completely independent of
cellular coverage. Although traditional users of wireless telephony and
broadband data services have access to these services in developed locations,
our customers often operate, travel or live in remote regions or regions with
under-developed telecommunications infrastructure where these services are not
readily available or are not provided on a reliable basis.

Spectrum and Regulatory Structure

We benefit from a worldwide allocation of radio frequency spectrum in the international radio frequency tables administered by the International Telecommunications Union ("ITU"). Access to this globally harmonized spectrum enables us to design satellites, networks and terrestrial infrastructure enhancements more cost effectively because the products and services can be deployed and sold worldwide. In addition, this broad spectrum assignment enhances our ability to capitalize on existing and emerging wireless and broadband applications.

Terrestrial Authority for Globalstar's Licensed 2.4GHz Spectrum



In August 2017, the FCC modified our MSS licenses, granting us authority to
provide terrestrial broadband services over the 11.5 MHz portion of our licensed
MSS spectrum. Specifically, the FCC modified our space station authorization and
our blanket mobile earth station license to permit a terrestrial network using
11.5 MHz of our licensed mobile-satellite service spectrum.

In December 2018, we successfully completed the Third Generation Partnership
Project ("3GPP") standardization process for the 11.5 MHz of our licensed MSS
spectrum terrestrially authorized by the FCC. The 3GPP designated the band as
Band 53. Additionally, in March 2020, we announced that the 3GPP approved the 5G
variant of our Band 53, which is known as n53. This new band class provides a
pathway for our terrestrial spectrum to be integrated into handset and
infrastructure ecosystems. Additional follow-on 3GPP specifications and
approvals are expected in the future. During 2019, we executed a spectrum
manager lease agreement with Nokia in order to permit Nokia to utilize Band 53
within its equipment domestically and have such equipment type-certified for
sale and deployment.

In February 2021, Qualcomm Technologies announced its new Snapdragon X65
modem-RF System, which includes support for Band n53. By having global 5G band
support for n53 in Qualcomm Technologies' 5G solutions, our potential device
ecosystem expands significantly to include the most popular smartphones,
laptops, tablets, automated equipment and other IoT modules.

We believe our MSS spectrum position provides potential for harmonized
terrestrial authority across many international regulatory domains and have been
seeking approvals in various international jurisdictions. To date, we have
received additional terrestrial authorizations in various countries, including
Brazil, Canada, and South Africa, among others. We expect this global effort to
continue for the foreseeable future while we seek additional terrestrial
approvals to internationally harmonize our S-band spectrum across the entire
16.5 MHz authority for terrestrial mobile broadband services.

We expect our terrestrial authority will allow future partners to develop
high-density dedicated networks using the TD-LTE and 5G protocols for private
networks as well as the densification of cellular networks. We believe that our
offering has competitive advantages over other conventional commercial spectrum
allocations. Such other allocations must meet minimum population coverage
requirements, which effectively prohibit the exclusive use of most carrier
spectrum for dedicated small cell deployments. In addition, low frequency
carrier spectrum is not physically well suited to high-density small cell
topologies, and mmWave spectrum is subject to range and attenuation limitations.
We believe that our licensed 2.4 GHz band holds physical, regulatory and
ecosystem qualities that distinguishes it from other current and anticipated
allocations, and that it is well positioned to balance favorable range, capacity
and attenuation characteristics.

                                       19
--------------------------------------------------------------------------------

Performance Indicators



Our management reviews and analyzes several key performance indicators in order
to manage our business and assess the quality and potential variability of our
earnings and cash flows. These key performance indicators include:

•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 subscriber-driven revenue, including
Duplex, Commercial IoT and SPOT;
•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.

Comparison of the Results of Operations for the three months ended March 31, 2022 and 2021



Revenue

Our revenue is categorized as service revenue and equipment revenue. We provide
services to customers using technology from our satellite and ground network.
Equipment revenue is generated from the sale of devices that work over our
network. For the three months ended March 31, 2022, total revenue increased 22%
to $32.8 million from $26.9 million for the same period in 2021. See below for a
further discussion of the fluctuations in revenue.

The following table sets forth amounts and percentages of our revenue by type of service (dollars in thousands).




                                 Three Months Ended                      Three Months Ended
                                    March 31, 2022                          March 31, 2021
                                                  % of Total                              % of Total
                               Revenue             Revenue             Revenue             Revenue
 Service Revenue:
 Duplex                  $            6,146             19  %    $            6,655             25  %
 SPOT                                11,255             34                   10,984             41
 Commercial IoT                       4,670             14                    4,481             17
 Engineering and other                7,273             22                      966              3
 Total Service Revenue   $           29,344             89  %    $           23,086             86  %


The following table sets forth amounts and percentages of our revenue generated from equipment sales (dollars in thousands).



                                  Three Months Ended                      Three Months Ended
                                     March 31, 2022                          March 31, 2021
                                                   % of Total                              % of Total
                                Revenue             Revenue             Revenue             Revenue
Equipment Revenue:
Duplex                    $              130              -  %    $              293              1  %
SPOT                                   1,475              5                    1,915              7
Commercial IoT                         1,806              6                    1,521              6
Other                                     17              -                      114              -
Total Equipment Revenue   $            3,428             11  %    $            3,843             14  %



                                       20

--------------------------------------------------------------------------------

The following table sets forth our average number of subscribers and ARPU by
type of revenue.

                                                                                                             Three Months Ended March 31,
                                                                                                                2022              2021
Average number of subscribers for the period:
Duplex                                                                                                         43,565            45,687
SPOT                                                                                                          276,863           261,171
Commercial IoT                                                                                                423,519           409,089
Other                                                                                                          13,346            27,487
Total                                                                                                         757,293           743,434

ARPU (monthly):
Duplex                                                                                                       $  47.03          $  48.56
SPOT                                                                                                            13.55             14.02
Commercial IoT                                                                                                   3.68              3.65


The numbers reported in the above table are subject to immaterial rounding inherent in calculating averages.

We count "subscribers" based on the number of devices that are subject to agreements that entitle them to use our voice or data communications services rather than the number of persons or entities who own or lease those devices.



Engineering and other service revenue includes revenue generated primarily from
certain governmental and engineering service contracts which are not subscriber
driven. Accordingly, we do not present ARPU for engineering and other service
revenue in the table above.

As previously discussed, during the first quarter of 2022, approximately 25,000
subscribers previously recorded in Other in the table above were removed from
our subscriber count.

Service Revenue

Duplex service revenue decreased 8% for the three months ended March 31, 2022
due primarily to a decrease in average subscribers of 5%. The decrease in
average subscribers is due to fewer gross subscriber activations over the last
twelve months. In line with the shift in demand across the MSS industry from
full Duplex voice and data services to IoT-enabled devices, we expect the
decline in our Duplex subscriber base to continue as we focus our investments on
IoT-enabled devices and services.

SPOT service revenue increased 2% for the three months ended March 31, 2022 due
primarily to an increase in average subscribers of 6%, resulting from higher
gross subscriber activations of 10% and lower subscriber churn over the last
twelve months. ARPU decreased by 4% due to the mix of subscribers on various
rate plans compared to the prior period, including the continued popularity of
subscribers activating on our flex plans. These flex plans drive more
seasonality in SPOT ARPU since subscribers can suspend their service when they
are not using their device.

Commercial IoT service revenue increased 4% for the three months ended March 31,
2022 due to a 4% increase in average subscribers. The increase in average
subscribers is driven by higher gross subscriber activations of 19% and lower
churn over the last twelve months. Importantly, Commercial IoT equipment sales
increased nearly 70% over the last twelve months compared to the prior year
period (discussed further below), which we believe is an indication that
Commercial IoT service revenue is likely to continue to grow in the future.

                                       21
--------------------------------------------------------------------------------

Engineering and other service revenue increased $6.3 million for the three
months ended March 31, 2022 compared to the same period in 2021. Fluctuations in
engineering and other service revenue are due primarily to the timing and amount
of revenue recognized associated with the Terms Agreement. During the first
quarter of 2022, we recognized revenue primarily for consideration received for
performance obligations associated with our work to expand and upgrade our
gateways around the globe and under the satellite procurement agreement. As
previously discussed, we disconnected service to approximately 25,000
subscribers in Russia. During 2021, we billed less than $0.3 million to these
subscribers and the revenue associated with these subscribers was recorded in
Engineering and other service revenue.

Subscriber Equipment Sales



Revenue from Duplex equipment sales decreased $0.2 million for the three months
ended March 31, 2022 compared to the same period in 2021. This decrease was
driven primarily by a lower sales volume of phones and accessories due to a lack
of available inventory since these devices are no longer being manufactured.

Revenue from SPOT equipment sales decreased $0.4 million for the three months
ended March 31, 2022 compared to the same period in 2021. This decrease resulted
from a lower sales volume since two of our core SPOT products are on back order
due to inventory shortages, which delayed the fulfillment of certain orders
during the first quarter of 2022. We continue to see demand exceeding supply
resulting from supply chain disruptions caused by component part shortages. We
are actively working to address this issue, but expect this trend to continue
through at least the second quarter of 2022.

Revenue from Commercial IoT equipment sales increased $0.3 million for the three
months ended March 31, 2022 compared to the same period in 2021. This increase
resulted from a higher sales volume of all of our IoT devices, primarily driven
by our SmartOne devices and modules. Sales were higher than the prior quarter
despite the same component part shortage issues discussed above, which resulted
in sales orders exceeding available inventory supply during the first quarter of
2022. Many of our IoT devices were on back order at March 31, 2022. We are
actively working to address this issue and expect to resume production of our
SmartOne products in the coming weeks.

Operating Expenses



Total operating expenses increased to $46.5 million from $46.2 million for the
three months ended March 31, 2022 compared to the same periods in 2021. Higher
cost of services was offset by lower management, general and administrative
("MG&A") costs, depreciation, amortization and accretion expense and cost of
subscriber equipment sales. The main contributors to the variance in operating
expenses are explained in further detail below.

Cost of Services



Cost of services increased $1.7 million for the three months ended March 31,
2022 compared to the same period in 2021. Higher personnel costs contributed to
$0.9 million of the total increase, of which $0.7 million was related to annual
cash bonuses and non-recurring separation pay during the first quarter of 2022.
Higher lease expense associated with new teleport leases, which commenced
throughout the second half of 2021, contributed to $0.6 million of the total
increase. These leases were executed in connection with the gateway expansion
project associated with the Terms Agreement; these lease and related costs are
being reimbursed to us, and this consideration is being recognized as revenue
(as further discussed above in Engineering and other service revenue). Higher
professional fees and licensing costs related to our implementation of a new
enterprise resource planning ("ERP") system, which went live January 2022, as
well as other costs for information technology security and maintenance
contributed $0.5 million to the total increase.

Cost of Subscriber Equipment Sales



Cost of subscriber equipment sales decreased $0.3 million for the three months
ended March 31, 2022 from the same period in 2021. Cost of subscriber equipment
sales decreased, which is generally consistent with the decrease in total
revenue from subscriber equipment sales.

                                       22
--------------------------------------------------------------------------------

Marketing, General and Administrative



MG&A expenses decreased $0.8 million for the three months ended March 31, 2022,
compared to the same period in 2021. During the first quarter, and consistent
with our accounting policy, we assessed the likelihood of payment of a
$1.0 million accrual related to professional services associated with the 2018
shareholder litigation. Based on our assessment and considering the passage of
time, we concluded it was appropriate to release the accrual, which resulted in
an offsetting reduction of MG&A expense in the first quarter. Additionally,
subscriber acquisition costs were lower by $0.4 million, which was due to the
one-time deactivation of all Sat-Fi2 subscribers during the first quarter of
2021. Advertising costs and sales and dealer commissions decreased $0.5 million
in total driven in part by the termination of our dealer program and reduction
in advertising spend associated with our Duplex products and services.
Offsetting these decreases was an increase in personnel costs totaling
$1.1 million. Approximately $0.9 million of this increase was related to annual
cash bonuses and non-recurring separation pay during the first quarter of 2022.

Other (Expense) Income

Interest Income and Expense



Interest income and expense, net, decreased $2.0 million during the three months
ended March 31, 2022, compared to the same period in 2021. This decrease was
primarily driven by lower gross interest costs totaling $1.2 million as well as
an increase to capitalized interest of $0.9 million (which decreases interest
expense).

Gross interest costs were impacted by lower interest associated with the 2009
Facility Agreement ($3.4 million). This decrease was offset by higher interest
on the 2019 Facility Agreement ($1.3 million) and imputed interest associated
with the significant financing component related to advance payments from a
customer under the Terms Agreement ($1.0 million). Interest costs for the 2009
Facility Agreement were favorably impacted by reductions in the principal
balance during 2021, including the final paydown in November 2021.

Derivative Loss



We recorded derivative losses of $0.5 million and $1.1 million for the three
months ended March 31, 2022 and 2021, respectively. We recognize derivative
gains or losses due to the change in the value of certain embedded features
within our debt instruments that require standalone derivative accounting. The
loss recorded during the three months ended March 31, 2022 was impacted
primarily by an increase in the discount rate used in the valuation of the
derivative associated with our 2019 Facility Agreement. Partially offsetting
this loss was a gain on the valuation adjustment of the embedded derivative
associated with our 2013 8.00% Notes. During the first quarter of 2022, the
remaining holders of our 2013 8.00% Notes converted the principal balance into
shares of Globalstar common stock. As a result of these conversions, we
marked-to-market the embedded derivative and recorded a net gain due to a
decrease in our stock price and a shorter term to maturity.

The loss recorded during the three months ended March 31, 2021 was impacted
primarily by an increase in our stock price and stock price volatility, which
increased the value of the underlying instrument to the holder and, therefore,
our derivative liability.

See Note 7: Fair Value Measurements to our condensed consolidated financial statements for further discussion of the computation of the fair value of our derivatives.



Foreign Currency Gain (Loss)

Foreign currency gain (loss) fluctuated by $7.5 million to a gain of $3.2
million for the three months ended March 31, 2022 from a loss of $4.3 million
for the same period in 2021. Changes in foreign currency gains and losses are
driven by the remeasurement of financial statement items, which are denominated
in various currencies, at the end of each reporting period. For the three months
ended March 31, 2022, the foreign currency gain was due to the strengthening of
the Canadian Dollar and the Brazilian real relative to the U.S. dollar. For the
three months ended March 31, 2021, the foreign currency loss was due to the
weakening of the Euro and Brazilian real relative to the U.S. dollar.

                                       23
--------------------------------------------------------------------------------

Liquidity and Capital Resources

Overview



Our principal near-term liquidity requirements include funding our operating
costs, capital expenditures, and repayment of amounts being financed through our
satellite vendor under the Procurement Agreement. Our principal sources of
liquidity include cash on hand, cash flows from operations, and vendor
financing. Beyond the next twelve months, our liquidity requirements also
include paying our debt service obligations. We expect that our current sources
of liquidity over the next twelve months will be sufficient for us to cover our
obligations. We may also access equity and debt capital markets from time to
time or refinance our debt obligations to improve the terms of our indebtedness.

As of March 31, 2022 and December 31, 2021, we held cash and cash equivalents of
$11.5 million and $14.3 million, respectively, on our condensed consolidated
balance sheet.

The total carrying amount of our debt outstanding was $246.8 million at March 31, 2022, compared to $237.9 million at December 31, 2021.



The $8.8 million increase in carrying value of our debt was due to a higher
carrying value of the 2019 Facility Agreement of $10.2 million due to the
accrual of PIK interest and the accretion of debt discount offset by a reduction
in the remaining principal balance of the 2013 8.00% Notes totaling
$1.4 million, which were converted into shares of Globalstar common stock during
the first quarter of 2022.

Cash Flows for the three months ended March 31, 2022 and 2021



The following table shows our cash flows from operating, investing and financing
activities (in thousands):

                                                                   Three Months Ended
                                                                March 31,       March 31,
                                                                   2022           2021
Net cash provided by operating activities                      $    7,569      $   4,512
Net cash used in investing activities                             (10,451)  

(4,974)


Net cash provided by financing activities                               8   

39,245


Effect of exchange rate changes on cash and cash equivalents           89   

(66)


Net (decrease) increase in cash and cash equivalents           $   (2,785)

$ 38,717

Cash Flows Provided by Operating Activities



Net cash provided by operations includes primarily cash receipts from
subscribers related to the purchase of equipment and satellite voice and data
services as well as cash received from the performance of engineering and other
service contracts. We use cash in operating activities primarily for personnel
costs, inventory purchases and other general corporate expenditures. Net cash
provided by operating activities during the three months ended March 31, 2022
was $7.6 million compared to $4.5 million during the same period in 2021. The
primary driver for the increase was higher net income after adjusting for
noncash items, offset partially by unfavorable working capital changes.

Cash Flows Used in Investing Activities



Net cash used in investing activities was $10.5 million for the three months
ended March 31, 2022 compared to $5.0 million for the same period in 2021. Net
cash used in investing activities during the first quarter of 2022 and 2021 was
related primarily to network upgrades associated with the Terms Agreement,
including higher costs associated with the procurement and deployment of new
antennas for our gateways and the preparation and launch of our on-ground spare
satellite.

Cash Flows Provided by Financing Activities



Net cash provided by financing activities was $39.2 million during the three
month period ended March 31, 2021. In 2021, we received $43.7 million in
proceeds from the exercise of the warrants issued with our 2019 Facility
Agreement. Offsetting these proceeds was an unscheduled principal payment of
$4.4 million towards the 2009 Facility Agreement. There were no meaningful cash
flows from financing activities during the first quarter of 2022.

                                       24
--------------------------------------------------------------------------------

Indebtedness

2019 Facility Agreement



In 2019, we entered into a $199.0 million facility agreement with Thermo, an
affiliate of EchoStar Corporation and certain other unaffiliated lenders (the
"2019 Facility Agreement"). The 2019 Facility Agreement is scheduled to mature
in November 2025. The loans under the 2019 Facility Agreement bear interest at a
blended rate of 13.5% per annum to be paid-in-kind (or in cash at our option,
subject to restrictions in the Facility Agreement). As of March 31, 2022, the
principal amount outstanding under the 2019 Facility Agreement was $272.7
million. As of March 31, 2022, we were in compliance with all the covenants of
the 2019 Facility Agreement.

The 2019 Facility Agreement requires mandatory prepayments of principal with any
Excess Cash Flow (as defined and calculated in the 2019 Facility Agreement) on a
semi-annual basis. If we generate Excess Cash Flow in 2022, we will be required
to make such prepayments. These payments would reduce future principal payment
obligations.

See Note 5: Long-Term Debt and Other Financing Arrangements to our condensed
consolidated financial statements for further discussion of the 2019 Facility
Agreement.

8.00% Convertible Senior Notes Issued in 2013



In May 2013, we issued $54.6 million aggregate principal amount of its 2013
8.00% Notes. In February 2022, we notified the holders of the 8.00% Notes of our
intention to redeem all of the outstanding amount of principal and interest in
March 2022. Prior to our intended redemption of the 8.00% Notes in March 2022,
the holders converted the remaining principal amount outstanding into 2.3
million shares of Globalstar common stock at a conversion price of $0.69 (as
adjusted) per share of common stock. The 2013 8.00% Notes were scheduled to
mature on April 1, 2028, subject to various call and put features. Interest on
the 2013 8.00% Notes was payable semi-annually in arrears on April 1 and October
1 of each year. We paid interest in cash at a rate of 5.75% per annum and issued
additional 2013 8.00% Notes at a rate of 2.25% per annum.

See Note 5: Long-Term Debt and Other Financing Arrangements to our condensed consolidated financial statements for further discussion of the 2013 8.00% Notes.

Vendor Financing



In February 2022, we entered into a satellite procurement agreement (see Note 8:
Commitments and Contingencies to our condensed consolidated financial statements
for further discussion). This agreement provides for payment deferrals of
milestone payments from February 2022 through August 2022, at a 0% interest
rate. In August 2022, all deferred payments will become due by which time we
intend to complete a senior secured financing. This financing is intended to
provide sufficient proceeds for the construction and launch of the satellites.
We also expect to refinance our current 2019 Facility Agreement concurrent with
or after the financing.

Off-Balance Sheet Transactions

We have no material off-balance sheet transactions.

Recently Issued Accounting Pronouncements

We review recently issued accounting guidance as new standards are issued. Certain accounting standards issued or effective may be applicable to us; however, we have not identified any standards that will have a material impact on our condensed consolidated financial statements.


                                       25

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses