17. 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 the 5.0% 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 Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2012

(Unaudited)

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Service revenues	$	14,296		$	10,832		$	4,002		$	(13,762	)	$	15,368
Subscriber equipment sales		255			4,138			2,941			(2,165	)		5,169
Total revenue		14,551			14,970			6,943			(15,927	)		20,537
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)		1,784			3,585			1,983			(1,794	)		5,558
Cost of subscriber equipment sales		134			4,742			3,780			(4,616	)		4,040
Cost of subscriber equipment sales - reduction in the value of inventory		-			658			2			-			660
Marketing, general and administrative		5,236			1,944			3,379			(1,279	)		9,280
Reduction in the value of long-lived assets		-			-			-			-			-
Contract termination charge		-			-			-			-			-
Depreciation, amortization, and accretion		13,313			13,782			4,338			(12,779	)		18,654
Total operating expenses		20,467			24,711			13,482			(20,468	)		38,192
Loss from operations		(5,916	)		(9,741	)		(6,539	)		4,541			(17,655	)
Other income (expense):
Interest income and expense, net of amounts capitalized		(6,172	)		(1	)		(394	)		2			(6,565	)
Derivative loss		(16,473	)		-			-			-			(16,473	)
Equity in subsidiary earnings		(12,120	)		2,205			-			9,915			-
Other		(456	)		(117	)		218			(84	)		(439	)
Total other income (expense)		(35,221	)		2,087			(176	)		9,833			(23,477	)
Loss before income taxes		(41,137	)		(7,654	)		(6,715	)		14,374			(41,132	)
Income tax (benefit) expense		51			(18	)		23			-			(56	)
Net loss	$	(41,188	)	$	(7,636	)	$	(6,738	)	$	14,374		$	(41,188	)

Comprehensive loss	$	(41,188	)	$	(7,636	)	$	(5,619	)	$	14,374		$	(40,069	)

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2011

(Unaudited)

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Service revenues	$	8,120		$	9,992		$	5,049		$	(8,963	)	$	14,198
Subscriber equipment sales		301			2,905			229			554			3,989
Total revenue		8,421			12,897			5,278			(8,409	)		18,187
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)		4,595			1,421			3,498			(1,182	)		8,332
Cost of subscriber equipment sales		-			2,661			2,187			(1,977	)		2,871
Cost of subscriber equipment sales - reduction in the value of inventory		-			312			667			-			979
Marketing, general and administrative		3,839			5,980			2,430			-			12,249
Reduction in the value of long-lived assets		788			2,195			55			-			3,038
Contract termination charge		-			-			-			-			-
Depreciation, amortization, and accretion		6,187			9,171			3,836			(7,088	)		12,106
Total operating expenses		15,409			21,740			12,673			(10,247	)		39,575
(Loss) gain from operations		(6,988	)		(8,843	)		(7,395	)		1,838			(21,388	)
Other income (expense):
Interest income and expense, net of amounts capitalized		(641	)					(582	)		(9	)		(1,232	)
Derivative gain		23,793			-			-			-			23,793
Equity in subsidiary earnings		(16,544	)		(3,349	)		-			19,893			-
Other		(302	)		247			(1,924	)		103			(1,876	)
Total other income (expense)		6,306			(3,102	)		(2,506	)		19,987			20,685
Loss before income taxes		(682	)		(11,945	)		(9,901	)		21,825			(703	)
Income tax expense		(1	)		(23	)		2			-			(22	)
Net (loss) gain	$	(681	)	$	(11,922	)	$	(9,903	)	$	21,825		$	(681	)

Comprehensive loss	$	(681	)	$	(11,922	)	$	(10,034	)	$	21,822		$	(815	)

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2012

(Unaudited)

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Service revenues	$	35,609		$	30,528		$	11,609		$	(35,600	)	$	42,146
Subscriber equipment sales		809			12,328			5,676			(3,703	)		15,110
Total revenue		36,418			42,856			17,285			(39,303	)		57,256
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)		5,678			6,231			5,888			(1,082	)		16,715
Cost of subscriber equipment sales		284			9,420			5,377			(4,616	)		10,465
Cost of subscriber equipment sales - reduction in the value of inventory		2			904			51			-			957
Marketing, general and administrative		15,493			4,997			9,426			(3,351	)		26,565
Reduction in the value of long-lived assets		79			7,139			-			-			7,218
Contract termination charge		22,048			-			-			-			22,048
Depreciation, amortization, and accretion		32,789			36,817			12,343			(32,672	)		49,277
Total operating expenses		76,373			65,508			33,085			(41,721	)		133,245
Loss from operations		(39,955	)		(22,652	)		(15,800	)		2,418			(75,989	)
Other income (expense):
Interest income and expense, net of amounts capitalized		(12,126	)		(7	)		(1,261	)		(2	)		(13,396	)
Derivative loss		(2,562	)		-			-			-			(2,562	)
Equity in subsidiary earnings		(37,737	)		6,703			-			31,034			-
Other		(687	)		(12	)		(163	)		(76	)		(938	)
Total other income (expense)		(53,112	)		6,684			(1,424	)		30,956			(16,896	)
Loss before income taxes		(93,067	)		(15,968	)		(17,224	)		33,374			(92,885	)
Income tax expense		179			30			152			-			361
Net loss	$	(93,246	)	$	(15,998	)	$	(17,376	)	$	33,374		$	(93,246	)

Comprehensive loss	$	(93,246	)	$	(15,998	)	$	(15,708	)	$	33,374		$	(91,578	)

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2011

(Unaudited)

							Non-
	Parent			Guarantor			Guarantor
	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Service revenues	$	21,693		$	29,624		$	13,179		$	(22,722	)	$	41,774
Subscriber equipment sales		710			10,567			3,871			(1,482	)		13,666
Total revenue		22,403			40,191			17,050			(24,204	)		55,440
Operating expenses:
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below)		9,602			6,262			9,996			(3,176	)		22,684
Cost of subscriber equipment sales		529			7,998			3,472			(2,678	)		9,321
Cost of subscriber equipment sales - reduction in the value of inventory		-			735			666			-			1,401
Marketing, general and administrative		8,702			17,470			7,832			-			34,004
Reduction in the value of long-lived assets		1,073			2,356			55			-			3,484
Contract termination charge		-			-			-			-			-
Depreciation, amortization, and accretion		16,208			27,396			10,901			(18,993	)		35,512
Total operating expenses		36,114			62,217			32,922			(24,847	)		106,406
(Loss) gain from operations		(13,711	)		(22,026	)		(15,872	)		643			(50,966	)
Other income (expense):
Interest income and expense, net of amounts capitalized		(2,046	)		-			(1,552	)		(1	)		(3,599	)
Derivative gain		34,090			-			-			-			34,090
Equity in subsidiary earnings		(39,816	)		(7,193	)		-			47,009			-
Other		295			(117	)		(695	)		(56	)		(573	)
Total other income (expense)		(7,477	)		(7,310	)		(2,247	)		46,952			29,918
Loss before income taxes		(21,188	)		(29,336	)		(18,119	)		47,595			(21,048	)
Income tax expense		27			-			140			-			167
Net (loss) gain	$	(21,215	)	$	(29,336	)	$	(18,259	)	$	47,595		$	(21,215	)

Comprehensive loss	$	(21,215	)	$	(29,336	)	$	(18,397	)	$	47,592		$	(21,356	)

Globalstar, Inc.

Supplemental Condensed Consolidating Balance Sheet

As of September 30, 2012

(Unaudited)

	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	451		$	225		$	543		$	-		$	1,219
Restricted cash		50,426			-			-			-			50,426
Accounts receivable		3,725			4,936			4,940			-			13,601
Intercompany receivables		593,317			398,411			23,788			(1,015,516	)		-
Inventory		545			6,598			35,902			-			43,045
Deferred financing costs, current		36,911			-			-			-			36,911
Prepaid expenses and other current assets		3,019			441			2,325			-			5,785
Total current assets		688,394			410,611			67,498			(1,015,516	)		150,987

Property and equipment, net		1,101,982			36,521			87,366			445			1,226,314
Restricted cash		-			-			-			-			-
Intercompany notes receivable		47,662			14,413			26,364			(88,439	)		-
Investment in subsidiaries		(148,557	)		(8,426	)		-			156,983			-
Deferred financing costs		10,528			-			-			-			10,528
Advances for inventory		9,158			-			-			-			9,158
Intangible and other assets, net		3,222			2,083			1,832			(15	)		7,122
Total assets	$	1,712,389		$	455,202		$	183,060		$	(946,542	)	$	1,404,109

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	651,909		$	-		$	-		$	-		$	651,909
Accounts payable		17,221			3,238			22,296						42,755
Accrued contract termination charge		22,048			-			-			-			22,048
Accrued expenses		9,549			9,205			10,759						29,513
Intercompany payables		382,374			479,640			151,705			(1,013,719	)		-
Payables to affiliates		200			31			-			-			231
Deferred revenue		1,494			14,095			828			-			16,417
Total current liabilities		1,084,795			506,209			185,588			(1,013,719	)		762,873

Long-term debt, less current portion		90,204			-			-			-			90,204
Employee benefit obligations		7,152			-			-			-			7,152
Intercompany notes payable		-			-			32,665			(32,665	)		-
Derivative liabilities		34,720			-			-			-			34,720
Deferred revenue		7,391			339			-			-			7,730
Other non-current liabilities		4,054			2,731			10,572			-			17,357
Total non-current liabilities		143,521			3,070			43,237			(32,665	)		157,163
Stockholders' equity		484,073			(54,077	)		(45,765	)		99,842			484,073
Total liabilities and stockholders' equity	$	1,712,389		$	455,202		$	183,060		$	(946,542	)	$	1,404,109

Globalstar, Inc.

Supplemental Condensed Consolidating Balance Sheet

As of December 31, 2011

(Audited)

	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			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:
Current maturities of long-term debt	$	-		$	-		$	-		$	-		$	-
Accounts payable		19,346			1,953			26,509			-			47,808
Accrued contract termination charge		-			-			-			-			-
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, less current maturities		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 Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2012

(Unaudited)

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

Net cash provided by (used in) operating activities	$	12,655		$	(165	)	$	(1,612	)	$	-	$	10,878

Cash flows from investing activities:
Second-generation satellites, ground and related launch costs		(43,305	)										(43,305	)
Property and equipment additions		-			(197	)		(185	)		-		(382	)
Investment in businesses		(450	)		-			-			-		(450	)
Restricted cash		(3,650	)		-			-			-		(3,650	)

Net cash used in investing activities		(47,405	)		(197	)		(185	)		-		(47,787	)

Cash flows from financing activities:
Proceeds from issuance of common stock and stock options		100			-			-			-		100
Borrowings from Facility Agreement		5,008			-			-			-		5,008
Proceeds from contingent equity account		23,000			-			-			-		23,000
Payment of deferred financing costs		(250	)		-			-			-		(250	)
Net cash from by financing activities		27,858			-			-			-		27,858
Effect of exchange rate changes on cash and cash equivalents		-			-			319			-		319
Net increase (decrease) in cash and cash equivalents		(6,892	)		(362	)		(1,478	)				(8,732	)
Cash and cash equivalents at beginning of period		7,343			587			2,021			-		9,951
Cash and cash equivalents at end of period	$	451		$	225		$	543		$	-	$	1,219

Globalstar, Inc.

Supplemental Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2011

(Unaudited)

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

Net cash provided by (used in) operating activities	$	(14,793	)	$	3,052		$	891		$	-	$	(10,850	)

Cash flows used in investing activities:
Second-generation satellites, ground and related launch costs		(71,212	)		-			-			-		(71,212	)
Property and equipment additions		(501	)		(1,692	)		(192	)		-		(2,385	)
Investment in businesses		(500	)		-			-			-		(500	)
Restricted cash		(10,436	)		-			-			-		(10,436	)

Net cash used in investing activities		(82,649	)		(1,692	)		(192	)		-		(84,533	)

Cash flows from financing activities:
Proceeds from issuance of common stock and stock options		526			-			-			-		526
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
Payment of deferred financing costs		(925	)		-			-			-		(925	)
Net cash from by financing activities		68,760			-			-			-		68,760
Effect of exchange rate changes on cash and cash equivalents		-			-			(314	)		-		(314	)
Net increase (decrease) in cash and cash equivalents		(28,682	)		1,360			385			-		(26,937	)
Cash and cash equivalents at beginning of period		32,288			(766	)		1,495			-		33,017
Cash and cash equivalents at end of period	$	3,606		$	594		$	1,880		$	-	$	6,080