8-KOther EventsExhibits & Filings

Globalstar, Inc. 8-K Report, Corporate Update (Jun 17, 2010)

Filed June 17, 2010For Securities:GSAT

Summary

Globalstar, Inc. (GSAT) filed an 8-K on June 17, 2010, to disclose the retrospective adoption of new accounting guidance related to share loan facilities. This adoption, effective January 2010, required a restatement of previously reported financial information for the fiscal year ended December 31, 2009. The filing supersedes certain sections of its 2009 Form 10-K, specifically impacting the Selected Financial Data, Management's Discussion and Analysis, and the Consolidated Financial Statements. Investors should note that this 8-K does not introduce new operational events or financial performance information beyond the accounting adjustment. The primary impact for investors is a revised historical financial picture due to the change in accounting treatment for share loan facilities. The company has attached updated exhibits to this report detailing these changes, allowing for a more accurate understanding of its financial position as it relates to these specific facilities.

Key Highlights

  • 1Globalstar is retroactively restating its 2009 financial statements due to the adoption of new accounting standards for share loan facilities.
  • 2The adoption of this new guidance was effective in January 2010 and applied retrospectively.
  • 3This filing supersedes specific sections (Items 6, 7, and 8) of Globalstar's 2009 Form 10-K.
  • 4The affected sections include Selected Financial Data, Management's Discussion and Analysis, and Financial Statements and Supplementary Data.
  • 5Detailed impact of the adoption is explained in Note 19 to the Consolidated Financial Statements for the year ended December 31, 2009.
  • 6The exhibits provided with this 8-K contain the updated and recast financial information.
  • 7No new events or information unrelated to the accounting adjustment are disclosed in this report; disclosures reflect conditions as of the original 2009 10-K filing date.

Frequently Asked Questions

The main reason for this 8-K filing is Globalstar's retrospective adoption of new accounting guidance related to share loan facilities. This required them to restate their previously issued financial statements for the fiscal year ended December 31, 2009.

No, this filing does not disclose any new business developments or operational events. It solely focuses on updating historical financial information to reflect a change in accounting treatment for share loan facilities.

The updated financial information, including recast financial statements, is detailed in the exhibits attached to this 8-K filing. Specifically, Exhibits 99.1, 99.2, and 99.3 contain the revised Selected Financial Data, Management's Discussion and Analysis, and Financial Statements, respectively.

The specific financial impact is detailed within Note 19 to Globalstar's Consolidated Financial Statements for the year ended December 31, 2009, which is included as part of Exhibit 99.3. Investors will need to review this note and the recast financial statements to understand the precise effect on the company's financial position.