Globalstar, Inc.

Good day and thank you for standing by. Welcome to the Global STAR first quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jay Monroe.

Good morning, everyone. Thanks for joining Global Star's first quarter 2023 investor call, which will consist of a very brief opening update, and then we will move directly to Q&A. Please note that today's call contains forward-looking statements and intent of GlobalStar's SEC filings, including its annual report on Form 10-K for the financial year end of 2022. It's 10-Q filed for the first quarter of 2023 and this week's earnings release. As outlined in the release, GlobalStar had record growth and revenue this quarter, led by an 80% increase in total revenue over the first quarter of 2022. net loss decreased 83% from the first quarter of 2022, which gets us to a net loss for the quarter of 3.5 million, close to breakeven. Even this modest loss was largely driven by a 10 million non-recurring, non-cash charge related to the repayment of our 2019 credit facility. So we have real cause for optimism. Consistent with this, adjusted EBITDA was up of 2022 to $32 million, and we expect growth to continue for the foreseeable future. This quarter reflects the beginning of our next chapter. We've spent years repositioning the platform, both our space and terrestrial assets, to support sustainable growth and significant cash flow generation. We have endured many years with a capital structure overhang that was removed with the conclusion of our recent finances. As we drive many significant near-term opportunities to a close, we have the runway to execute our business plans across our four pillars, wholesale, legacy, IoT, and terrestrial spectrum, creating a market disruptor which will maximize the overall value. Today, we can deliver cost-effective solutions that few of our competitors can't. Furthermore, we plan to launch innovative products this year like our two-way module that will build on the competitive advantages in our one-way IoT market and allow us to support end-user applications we couldn't have addressed previously. We have the capacity and the sales funnel for potentially millions of devices utilizing our satellite network. Simply put, we are in deal mode. Just this week, we signed an agreement for a unique service utilizing Band 53, which is initially in the United States and Canada, and is expected to generate significant milestone payments as the engineering analysis is completed and validated, after which the agreement will convert to a long-term lease. The service is additive and entirely incremental to our revenue model, since it does not affect our other terrestrial And we believe this deal represents good value for our spectrum while maintaining the flexibility to pursue all other public and private wireless deployments. We also expect to close and receive a non-refundable deposit for a separate private network in Canada in the next few weeks. This deployment will be for the utilization of BAN 53 by critical infrastructure. We expect to be able to replicate this exact opportunity in many other geographies, so stay tuned. The point is, our efforts are ramping up, and while not the holy grail, these deals represent but two examples of the type of ongoing discussions we are having and closing. While we are still unable to discuss the specifics of our direct to handset services, The investments we have made in the ground network over the past few years and the ongoing new satellite investments will support our IoT and legacy businesses and are already yielding significant opportunities for us. The next-gen satellite capacity we are bringing to market is driving discussions that we are having now. Furthermore, the ecosystem leverage we gained from the incorporation of BAN53 into Qualcomm's chipset will yield significant opportunities on the terrestrial side. We have plenty more to share with you shortly. Finally, while we see the big disruptive nature of our combined assets now coming into focus, and there are a few management teams that ever feel that their business are properly reflected in their share price. This is especially true for us today, despite substantial quantifiable improvements we've made to our operations, our financial results, and our balance sheet. To this end, we are planning a series of roadshows in select cities over the coming months in order to tell our story more directly. We will be out with specifics about these meetings and locations shortly. We'll now open the call up to Q&A. Dave, Rebecca, Kyle, and Tim are available along with person given that we are remote. We thank you in advance for focusing your questions on the non-direct to handset parts of our business as well as our financial results.

Thank you. As a reminder to ask a question please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question please press star 1 1 again. Our first question comes from Mike Crawford with B Riley securities. You may proceed.