Globalstar (GSAT) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Revenue under the Updated Services Agreements constitutes a substantial portion of our current revenue, and there is no assurance that we will receive the revenue expected under the Updated Services Agreements
2. 02If we experience disruptions with respect to our gateways or operations centers, we may not be able to provide service to our customers
3. 03The actual orbital lives of our satellites may be shorter than we anticipate, and we may be required to reduce available capacity on our satellite network
4. 04Our satellites are exposed to a wide and unique range of risks, including collisions with space debris, natural disasters and other extreme space weather events, all of which could adversely affect the performance of our constellation
5. 05The implementation of our business plan and our ability to generate income from operations assume we are able to maintain a satellite network capable of providing commercially acceptable levels of coverage and service quality, which are contingent on a number of factors, many of which are out of our control
6. 06Delays in the launch of new satellites could negatively impact our future operations and financial results, including the requirements under the Updated Services Agreements. When we launch satellites, we may experience launch or deployment failures, which subject us to additional risks and losses
7. 07The implementation of our business plan depends on increased demand for wireless communications services via satellite and terrestrial mobile broadband networks, both for existing and new services and products
8. 08Our business will be negatively impacted if we fail to adequately anticipate our satellite capacity needs or are unable to obtain satellite network capacity
9. 09Rapid and significant technological changes in the satellite communications industry and our ability to service, upgrade and replace our equipment when needed may impair our competitive position and require us to make significant capital expenditures
10. 10Satellite-based Competitors
11. 11Terrestrial Broadband Network Competitors and Other Spectrum Owners
12. 12Uncertain global macro-economic and political conditions could materially adversely affect our results of operations and financial condition
13. 13Lack of availability of equipment, component parts, and other materials required to operate our business could delay or adversely impact our operations
14. 14We are materially reliant on a limited number of key suppliers
15. 15Our business is capital intensive. We may not be able to raise adequate capital on reasonable terms to finance our business strategies, or we may be able to do so only on terms that significantly restrict our ability to operate our business
16. 16Our business depends on technical knowledge, and we base our business plan in part on our ability to keep up with new technological developments and incorporate them in our products and services. We own or have the right to use our patents, work products, inventions, designs, software, systems and similar know-how
17. 17We face special risks by doing business in international markets and developing markets, including currency and expropriation risks, which could increase our costs or reduce our revenues in these areas
18. 18Our financing arrangements may adversely affect our cash flow and our ability to operate our business, including our ability to incur additional indebtedness
19. 19Refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources below for further discussion
20. 20Restrictive covenants in our financing arrangements may limit our operating and financial flexibility and our inability to comply with these covenants could have significant implications
21. 21Our networks and those of our third-party service providers and customers may be vulnerable to cyber-attacks and other security breaches, which could have significant negative consequences
22. 22Due to fluctuations in the insurance market, we may be unable to obtain and maintain our insurance coverages, and the insurance we obtain may not cover all risks for which we have exposure. As a result, we may incur material uninsured or under-insured losses
23. 23Product Liability Insurance and Product Replacement or Recall Costs
24. 24financial condition or results of operations. We do not maintain any product recall insurance, so any product recall we are required to initiate could have a significant impact on our financial position, results of operations or cash flows
25. 25General Liability Insurance In-Orbit Exposures
26. 26Spectrum values historically have been volatile, and may again be volatile in the future, which could cause the value of our business to fluctuate
27. 27We operate in many tax jurisdictions, and changes in tax rates or adverse results of tax examinations could materially increase our costs
28. 28We are exposed to trade credit risk in the ordinary course of our business activities
29. 29We have been in the past from time to time, and may be in the future, subject to litigation and investigations that could have a substantial, adverse impact on our business

Risks Related to Government Regulations

1. 30Our business is subject to extensive government regulation that are subject to change and interpretation, compliance with which will impact our future success
2. 31Our global operations expose us to trade and economic sanctions, other restrictions, liabilities and exposure to penalties imposed by the United States, the European Union and other governments and organizations
3. 32Our business plan to use our licensed MSS spectrum to provide terrestrial wireless services depends upon our ability to maintain and expand our terrestrial authority as well as certain actions by third parties, which we cannot control
4. 33Other future regulatory decisions could reduce our existing spectrum allocation or impose additional spectrum sharing agreements on us, which could adversely affect our services and operations
5. 34If the FCC, our French regulator, or any other regulator, revokes, modifies or fails to renew or amend our licenses, our ability to operate may be limited
6. 35Changes in international trade regulations and other risks associated with foreign trade could adversely affect our sourcing from foreign manufacturers
7. 36Emerging and unsettled data privacy laws expose us to substantial risks

Risks Related to Our Common Stock

1. 37Restrictive covenants in our financing arrangements restrict our ability to pay dividends on our common stock for the foreseeable future, which may affect the market for our shares
2. 38There is a limited market for our common stock and our stock price may be volatile or may be subject to short selling
3. 39We cannot predict the ultimate effect that our reverse stock split or transfer of the listing of our common stock to the Nasdaq Stock Market LLC will have on the market price for and the liquidity of shares of our common stock
4. 40There can be no assurance that we will continue to satisfy the continued listing standards of the Nasdaq Stock Market LLC following the reverse stock split and listing transfer
5. 41The future issuance of additional shares of our common stock could cause dilution of ownership interests and adversely affect our stock price
6. 42We have issued and may issue shares of preferred stock or debt securities with greater rights than our common stock
7. 43We are controlled by Thermo, whose interests may conflict with yours
8. 44In addition, Thermo has guaranteed certain of our obligations related to the Updated Services Agreements and has received the right to purchase shares of our common stock under the warrant issued to them as consideration for providing such guarantee
9. 45Provisions in our charter documents, debt agreements and Delaware corporate law may discourage takeovers, which could affect the rights of holders of our common stock