How do you interpret reportable legal entities — fair value adjustment of warrants?

A loss indicates an increase in the value of warrants (often due to rising stock price), which represents a potential future dilution or cash outflow.

How does reportable legal entities — fair value adjustment of warrants compare across companies?

Common for companies with complex capital structures or those that have issued warrants as part of financing rounds.

Globalstar GSAT Reportable Legal Entities — Fair Value Adjustment Of Warrants

Discontinued — last reported Q4 '17

Similar metrics at other companies

GMEFair Value Adjustment Of Warrants

$42.2M—

DKNGReportable Segment — (Gain) loss on remeasurement of warrant liabilities

-$2.5M-114%

TOSTGain on extinguishment of warrant

$0-100%

RVMDChange In Fair Value Of Warrant Liability And Contingent Earn Out Shares

-$12.63M—

CRWVFair Value Adjustments Of Warrants And Derivatives

$0-100%

WULFChange in fair value of warrants and derivatives

-$5.15M—

Other financials

Income statement

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Revenue$70.1M+16.7%

Operating income$8.2M+196%

Net income-$17.4M-0.5%

EPS (diluted)-$0.160.0%

Balance sheet

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Cash & equivalents$358.4M+48.5%

Total debt$537.8M+0.2%

Total equity$342.8M-0.4%

Total assets$2.4B+37.5%

Cash flow

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Operating cash flow$35.2M-32.1%

CapEx$1.5M+30.6%

Free cash flow$33.7M-33.5%

Valuation

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Market cap$10.36B+224%

Enterprise value$10.54B+197%

P/S36.6×+24.0×

Profitability

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Gross margin91.4%—

Operating margin8.6%+7.3pp

Net margin-3.1%-1.4pp

FCF margin211.7%+32.4pp

Returns & leverage

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Return on equity-2.5%-1.2pp

Debt / equity1.6×0.0×

Current ratio1.6×-0.7×

Where this comes from

Reported directly by Globalstar in its filing.

Tagged under the XBRL concept us-gaap:FairValueAdjustmentOfWarrants.

The official record: Globalstar’s 10-K, filed February 23, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does reportable legal entities — fair value adjustment of warrants mean?: The accounting gain or loss from changes in the value of issued warrants.
How do you interpret reportable legal entities — fair value adjustment of warrants?: A loss indicates an increase in the value of warrants (often due to rising stock price), which represents a potential future dilution or cash outflow.
How does reportable legal entities — fair value adjustment of warrants compare across companies?: Common for companies with complex capital structures or those that have issued warrants as part of financing rounds.