18. SUPPLEMENTAL CONSOLIDATING FINANCIAL INFORMATION

In connection with the Company’s issuance of the 5.0% Notes and 5.0% warrants, certain of the Company’s domestic subsidiaries (the “Guarantor Subsidiaries”), fully, unconditionally, jointly, and severally guaranteed the payment obligations under these Notes. The following supplemental financial information sets forth, on a consolidating basis, the balance sheets, statements of operations and statements of cash flows for Globalstar, Inc. (“Parent Company”), for the Guarantor Subsidiaries and for the Parent Company’s other subsidiaries (the “Non-Guarantor Subsidiaries”).

The supplemental condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include disclosures included in annual financial statements. The principal eliminating entries eliminate investments in subsidiaries, intercompany balances and intercompany revenues and expenses.

Globalstar, Inc.

Supplemental Consolidating Balance Sheet

As of December 31, 2011

	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Elimination			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	7,343		$	587		$	2,021	$	—		$	9,951
Restricted cash		—			—			—		—			—
Accounts receivable		3,363			4,322			4,708		—			12,393
Intercompany receivables		538,876			351,510			13,923		(904,309	)		—
Inventory		1			4,564			37,283		—			41,848
Prepaid expenses and other current assets		2,846			303			2,132		—			5,281
Total current assets		552,429			361,286			60,067		(904,309	)		69,473

Property and equipment, net		1,070,543			60,872			87,624		(1,321	)		1,217,718
Restricted cash		46,776			—			—		—			46,776
Intercompany notes receivable		40,456			—			1,800		(42,256	)		—
Investment in subsidiaries		(106,377	)		(18,629	)		—		125,006			—
Deferred financing costs		53,409			—			73		—			53,482
Advances for inventory		9,158			—			—		—			9,158
Intangible and other assets, net		12,773			2,988			8,052		(15	)		23,798
Total assets	$	1,679,167		$	406,517		$	157,616	$	(822,895	)	$	1,420,405

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	19,346	$	1,953		$	26,509		$	—		$	47,808
Accrued expenses		11,558		8,459			8,789			—			28,806
Intercompany payables		333,201		427,852			142,966			(904,019	)		—
Payables to affiliates		378		—			—			—			378
Deferred revenue		1,043		12,740			805			—			14,588
Total current liabilities		365,526		451,004			179,069			(904,019	)		91,580

Long-term debt		723,888		—			—			—			723,888
Employee benefit obligations		7,407		—			—			—			7,407
Intercompany notes payable		—		—			41,356			(41,356	)		—
Derivative liabilities		38,996		—			—			—			38,996
Deferred revenue		6,695		600			—			—			7,295
Other non-current liabilities		2,860		3,837			10,747			—			17,444
Total non-current liabilities		779,846		4,437			52,103			(41,356	)		795,030
Stockholders’ equity		533,795		(48,924	)		(73,556	)		122,480			533,795
Total liabilities and stockholders’ equity	$	1,679,167	$	406,517		$	157,616		$	(822,895	)	$	1,420,405

Globalstar, Inc.

Supplemental Consolidating Balance Sheet

As of December 31, 2010

	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Elimination			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	32,288		$	(766	)	$	1,495	$	—		$	33,017
Restricted cash		2,064			—			—		—			2,064
Accounts receivable		4,351			5,105			4,215		—			13,671
Intercompany receivables		424,903			313,857			10,527		(749,287	)		—
Inventory		33			8,105			47,497		—			55,635
Prepaid expenses and other current assets		2,011			497			2,553		—			5,061
Total current assets		465,650			326,798			66,287		(749,287	)		109,448

Property and equipment, net		1,056,380			86,276			10,856		(3,042	)		1,150,470
Restricted cash		34,276			—			—		—			34,276
Intercompany notes receivable		45,166			—			—		(45,166	)		—
Investment in subsidiaries		(58,529	)		(18,743	)		—		77,272			—
Deferred financing costs		59,797			—			73		—			59,870
Advances for inventory		9,387			44			—		—			9,431
Intangible and other assets, net		2,915			6,100			14,298		—			23,313
Total assets	$	1,615,042		$	400,475		$	91,514	$	(720,223	)	$	1,386,808

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	19,787	$	3,020		$	3,627		$	—		$	26,434
Accrued expenses		29,865		9,682			8,453			—			48,000
Intercompany payables		287,462		391,597			70,228			(749,287	)		—
Payables to affiliates		709		1			—			—			710
Deferred revenue		3,413		11,615			1,074			—			16,102
Total current liabilities		341,236		415,915			83,382			(749,287	)		91,246

Long-term debt		664,543		—			—			—			664,543
Employee benefit obligations		4,727		—			—			—			4,727
Intercompany notes payable		—		—			45,166			(45,166	)		—
Derivative liabilities		60,819		—			—			—			60,819
Deferred revenue		6,923		—			—			—			6,923
Other non-current liabilities		1,376		4,594			17,162			—			23,132
Total non-current liabilities		738,388		4,594			62,328			(45,166	)		760,144
Stockholders’ equity		535,418		(20,034	)		(54,196	)		74,230			535,418
Total liabilities and stockholders’ equity	$	1,615,042	$	400,475		$	91,514		$	(720,223	)	$	1,386,808

Globalstar, Inc.

Supplemental Consolidating Statement of Operations

Year Ended December 31, 2011

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Service revenues	$	30,904		$	28,850		$	16,102		$	(20,459	)	$	55,397
Subscriber equipment sales		790			13,115			7,619			(4,094	)		17,430
Total revenue		31,694			41,965			23,721			(24,553	)		72,827
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)		13,025			7,293			12,707			(3,779	)		29,246
Cost of subscriber equipment sales		723			9,913			5,636			(4,345	)		11,927
Cost of subscriber equipment sales - reduction in the value of inventory		—			1,254			7,572			—			8,826
Reduction in the value of long-lived assets		1,074			2,453			51			—			3,578
Marketing, general and administrative		9,285			23,107			10,044			—			42,436
Depreciation, amortization, and accretion		24,298			28,006			14,589			(16,844	)		50,049
Total operating expenses		48,405			72,026			50,599			(24,968	)		146,062
Loss from operations		(16,711	)		(30,061	)		(26,878	)		415			(73,235	)
Other income (expense):
Interest income		1,135			—			6			(1,126	)		15
Interest expense, net of amounts capitalized		(3,848	)		(5	)		(2,105	)		1,134			(4,824	)
Derivative gain (loss)		23,839			—			—			—			23,839
Equity in subsidiary earnings		(59,466	)		9,392			—			50,074			—
Other		145			(76	)		(783	)		(114	)		(828	)
Total other income (expense)		(38,195	)		9,311			(2,882	)		49,968			18,202
Loss before income taxes		(54,906	)		(20,750	)		(29,760	)		50,383			(55,033	)
Income tax expense		18			1			(128	)		—			(109	)
Net (loss) gain	$	(54,924	)	$	(20,751	)	$	(29,632	)	$	50,383		$	(54,924	)

Globalstar, Inc.

Supplemental Consolidating Statement of Operations

Year Ended December 31, 2010

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Service revenues	$	10,603		$	35,691		$	16,579		$	(11,936	)	$	50,937
Subscriber equipment sales		281			14,738			6,781			(4,796	)		17,004
Total revenue		10,884			50,429			23,360			(16,732	)		67,941
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)		10,678			12,468			19,799			(11,773	)		31,172
Cost of subscriber equipment sales		131			12,509			5,348			(4,806	)		13,182
Cost of subscriber equipment sales - reduction in the value of inventory		59			761			10,042			—			10,862
Reduction in the value of long-lived assets		546			2,703			—			—			3,249
Marketing, general and administrative		6,620			24,546			10,770			(109	)		41,827
Depreciation, amortization, and accretion		1,658			23,055			3,193			(488	)		27,418
Total operating expenses		19,692			76,042			49,152			(17,176	)		127,710
Loss from operations		(8,808	)		(25,613	)		(25,792	)		444			(59,769	)
Other income (expense):
Interest income		1,315			—			31			(922	)		424
Interest expense, net of amounts capitalized		(4,344	)		(1	)		(1,592	)		916			(5,021	)
Derivative gain (loss)		(29,975	)		—			—			—			(29,975	)
Equity in subsidiary earnings		(51,651	)		(8,494	)		—			60,145			—
Other		(3,952	)		340			1,332			(450	)		(2,730	)
Total other income (expense)		(88,607	)		(8,155	)		(229	)		59,689			(37,302	)
Loss before income taxes		(97,415	)		(33,768	)		(26,021	)		60,133			(97,071	)
Income tax expense		52			50			294			—			396
Net (loss) gain	$	(97,467	)	$	(33,818	)	$	(26,315	)	$	60,133		$	(97,467	)

Globalstar, Inc.

Supplemental Consolidating Statement of Operations

Year Ended December 31, 2009

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenues:
Service revenues	$	9,921		$	34,004		$	20,207		$	(13,904	)	$	50,228
Subscriber equipment sales		3,625			7,153			6,135			(2,862	)		14,051
Total revenue		13,546			41,157			26,342			(16,766	)		64,279
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)		18,118			5,757			22,516			(10,187	)		36,204
Cost of subscriber equipment sales		601			6,659			7,526			(4,905	)		9,881
Cost of subscriber equipment sales - reduction in the value of inventory		—			335			578			—			913
Reduction in the value of long-lived assets		—			—			—			—			—
Marketing, general and administrative		10,311			23,711			15,238			(50	)		49,210
Depreciation, amortization, and accretion		1,120			18,057			3,149			(464	)		21,862
Total operating expenses		30,150			54,519			49,007			(15,606	)		118,070
Loss from operations		(16,604	)		(13,362	)		(22,665	)		(1,160	)		(53,791	)
Other income (expense):
Interest income		1,653			—			135			(1,286	)		502
Interest expense, net of amounts capitalized		(6,115	)		(1	)		(1,903	)		1,289			(6,730	)
Derivative gain (loss)		(15,585	)		—			—			—			(15,585	)
Equity in subsidiary earnings		(35,048	)		(9,149	)		—			44,197			—
Other		(3,115	)		(93	)		3,795			78			665
Total other income (expense)		(58,210	)		(9,243	)		2,027			44,278			(21,148	)
Loss before income taxes		(74,814	)		(22,605	)		(20,638	)		43,118			(74,939	)
Income tax expense		109			15			(140	)		—			(16	)
Net (loss) gain	$	(74,923	)	$	(22,620	)	$	(20,498	)	$	43,118		$	(74,923	)

Globalstar, Inc.

Supplemental Consolidating Statement of Cash Flows

Year Ended December 31, 2011

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)

Net cash provided by (used in) operating activities	$	(10,758	)	$	3,819		$	1,445		$	(9	)	$	(5,503	)

Cash flows from investing activities:
Second-generation satellites, ground and related launch costs		(85,589	)		—			—			—			(85,589	)
Property and equipment additions		—			(2,466	)		(137	)		9			(2,594	)
Investment in businesses		(800	)		—			—			—			(800	)
Restricted cash		(10,436	)		—			—			—			(10,436	)

Net cash from investing activities		(96,825	)		(2,466	)		(137	)		9			(99,419	)

Cash flows from financing activities:
Proceeds from exercise of warrants and stock options		525			—			—			—			525
Borrowings from Facility Agreement		18,659			—			—			—			18,659
Proceeds from the issuance of 5.0% convertible notes		38,000			—			—			—			38,000
Proceeds from the contribution to the debt service reserve account		12,500			—			—			—			12,500
Proceeds from contingent equity agreement		14,200												14,200
Payment of deferred financing costs		(1,246	)		—			—			—			(1,246	)
Net cash provided by financing activities		82,638			—			—			—			82,638
Effect of exchange rate changes on cash and cash equivalents		—			—			(782	)		—			(782	)
Net increase (decrease) in cash and cash equivalents		(24,945	)		1,353			526			—			(23,066	)
Cash and cash equivalents at beginning of period		32,288			(766	)		1,495			—			33,017
Cash and cash equivalents at end of period	$	7,343		$	587		$	2,021		$	—		$	9,951

Globalstar, Inc.

Supplemental Consolidating Statement of Cash Flows

Year Ended December 31, 2010

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)

Net cash provided by (used in) operating activities	$	(28,895	)	$	4,445		$	522		$	590		$	(23,338	)

Cash flows from investing activities:
Second-generation satellites, ground and related launch costs		(201,108	)		—			—			(16	)		(201,124	)
Property and equipment additions		(1,307	)		(5,696	)		(283	)		—			(7,286	)
Investment in businesses		(1,110	)		—			—			—			(1,110	)
Restricted cash		4,129			—			—			—			4,129

Net cash from investing activities		(199,396	)		(5,696	)		(283	)		(16	)		(205,391	)

Cash flows from financing activities:
Borrowings from Facility Agreement		188,417			—			—			—			188,417
Payment of deferred financing costs		(70	)		—			—			—			(70	)
Proceeds from exercise of warrants		6,249			—			—			—			6,249
Issuance of common stock		74			—			—			—			74
Net cash provided by financing activities		194,670			—			—			—			194,670
Effect of exchange rate changes on cash and cash equivalents		—			—			(231	)		(574	)		(805	)
Net increase (decrease) in cash and cash equivalents		(33,621	)		(1,251	)		8			—			(34,864	)
Cash and cash equivalents at beginning of period		65,909			485			1,487			—			67,881
Cash and cash equivalents at end of period	$	32,288		$	(766	)	$	1,495		$	—		$	33,017

Globalstar, Inc.

Supplemental Consolidating Statement of Cash Flows

Year Ended December 31, 2009

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations		Consolidated
	(In thousands)

Net cash provided by (used in) operating activities	$	(23,583	)	$	3,333		$	1,827		$	—	$	(18,423	)

Cash flows from investing activities:
Second-generation satellites, ground and related launch costs		(321,827	)		—			—			—		(321,827	)
Property and equipment additions		(143	)		(1,760	)		(368	)		—		(2,271	)
Investment in businesses		(323	)		(1,500	)		—			—		(1,823	)
Restricted cash		14,229			—			—			—		14,229

Net cash from investing activities		(308,064	)		(3,260	)		(368	)		—		(311,692	)

Cash flows from financing activities:
Proceeds from revolving credit loan, net		7,750			—			—			—		7,750
Proceeds from issuance of 8.00% Notes		55,000			—			—			—		55,000
Borrowings from Facility Agreement		371,219			—			—			—		371,219
Borrowings from Subordinated Loan		25,000			—			—			—		25,000
Borrowings under short-term loan		2,259			—			—			—		2,259
Payment of deferred financing costs		(63,047	)		—			—			—		(63,047	)
Payment for interest rate swap		(12,425	)		—			—			—		(12,425	)
Issuance of common stock		1,000			—			—			—		1,000
Net cash provided by financing activities		386,756			—			—			—		386,756
Effect of exchange rate changes on cash and cash equivalents		—			—			(1,117	)		—		(1,117	)
Net increase (decrease) in cash and cash equivalents		55,109			73			342			—		55,524
Cash and cash equivalents at beginning of period		10,800			412			1,145			—		12,357
Cash and cash equivalents at end of period	$	65,909		$	485		$	1,487		$	—	$	67,881