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Revenue
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue
3. REVENUE

Disaggregation of Revenue

The following table discloses revenue disaggregated by type of product and service (amounts in thousands):
Year Ended December 31,
202320222021
Service revenue:
Subscriber services
Duplex$25,932 $29,222 $31,197 
SPOT44,184 45,670 46,040 
Commercial IoT22,867 19,516 17,951 
Wholesale capacity services109,067 34,913 8,945 
Engineering and other services2,146 2,747 2,331 
Total service revenue204,196 132,068 106,464 
Subscriber equipment sales:
SPOT7,724 5,888 9,427 
Commercial IoT11,866 10,132 7,169 
Other22 416 1,237 
Total subscriber equipment sales19,612 16,436 17,833 
Total revenue$223,808 $148,504 $124,297 

The Company is the operator for certain satellite-enabled services offered by Apple ("Partner") (the "Services") pursuant to the agreement (the “Service Agreement”) and certain related ancillary agreements (such agreements, together with the Service Agreement, the “Service Agreements”). The Service Agreements generally require Globalstar to allocate network capacity to support the Services, which launched in November 2022. Revenue associated with the Service Agreements is included in "Wholesale capacity services" in the table above.

As consideration for the services provided by Globalstar under the Service Agreements, payments include a recurring service fee, payments relating to certain service-related operating expenses and capital expenditures, and potential bonus payments subject to satisfaction of certain licensing, service and other related criteria. During 2023, revenue recognized included $6.5 million received in connection with the amendment of the Service Agreements in February 2023 as consideration related to performance obligations completed in prior periods.
The Company attributes equipment revenue to various countries based on the location where equipment is sold. Service revenue is generally attributed to the various countries based on the Globalstar entity that holds the customer contract. Revenue does not reflect our intercompany transactions; such intercompany transactions reflect globally accepted transfer pricing principles and align profits with the business operations and functions of the various legal entities in our international business. The following table discloses revenue disaggregated by geographical market (amounts in thousands):
Year Ended December 31,
202320222021
Service revenue:
United States$170,621 $99,735 $75,053 
Canada16,058 17,421 17,913 
Europe6,856 6,428 7,300 
Central and South America9,978 7,961 5,447 
Others683 523 751 
Total service revenue204,196 132,068 106,464 
Subscriber equipment sales:
United States$8,599 $7,981 $10,238 
Canada5,153 4,740 3,029 
Europe2,985 1,870 2,018 
Central and South America2,863 1,793 2,487 
Others12 52 61 
Total subscriber equipment sales19,612 16,436 17,833 
Total revenue$223,808 $148,504 $124,297 

Accounts Receivable

Receivables are included in "Accounts receivable, net of allowance for credit losses" on the Company's consolidated balance sheets except for the long-term portion of the wholesale capacity accounts receivable as of December 31, 2022, which was included in "Prepaid satellite costs and customer receivable." The Company's receivable balances by type and classification are presented in the table below net of allowance for credit losses and may include amounts related to earned but unbilled receivables (amounts in thousands):
As of December 31,
20232022
Accounts receivable, net of allowance for credit losses
Subscriber accounts receivable$14,474 $14,850 
Wholesale capacity accounts receivable33,521 7,234 
Agency agreement accounts receivable748 4,245 
Total accounts receivable, net of allowance for credit losses$48,743 $26,329 
Long-term wholesale capacity accounts receivable— 16,100 
Total accounts receivable (short-term and long-term), net of allowance for credit losses$48,743 $42,429 

During 2023, the Company reclassified $16.1 million of accounts receivable associated with the Service Agreements from long-term accounts receivable to short-term accounts receivable. This balance is associated with amounts that are contractually owed to the Company for meeting performance obligations related to the next-generation satellite constellation prior to the Phase 2 Service Period. The Company expects that this amount will be paid during the next twelve months.

In February 2022, the Company entered into an agreement for the purchase of new satellites that will replenish the Company's HIBLEO-4 U.S.-licensed system under the satellite procurement agreement, as amended, with Macdonald, Dettwiler and Associates Corporation ("MDA") and certain other costs incurred for the new satellites; these payments are expected to be paid to the Company on a straight-line basis commencing with the launch of these satellites through their estimated useful life ("Phase 2 Service Period"). Based on construction in progress incurred by Globalstar, amounts expected to be billed by the Company associated with this phase of the Service Agreements were $197.1 million as of December 31, 2023.
In prior year filings, the Company recorded a long-term unbilled receivable and related long-term deferred revenue reflecting its Partner’s obligation to fund certain construction costs to the Company associated with the satellites that are being constructed to provide service during the Phase 2 Service Period. During 2023, the Company revised this presentation and applied this change to its December 31, 2022 balance sheet. This change in accounting presentation has no impact on Partner’s obligation to provide funding for the satellite construction costs nor the expected revenue the Company will recognize during the Phase 2 Service Period.

Contract Liabilities

Contract liabilities, which are included in deferred revenue on the Company’s consolidated balance sheet, represent the Company’s obligation to transfer service or equipment to a customer from whom it has previously received consideration. Contract liabilities reflect balances from its customers, including MSS subscribers and its wholesale capacity customer under the Service Agreements. The Company's contract liabilities by type and classification are presented in the table below (amounts in thousands).
As of December 31,
20232022
Short-term contract liabilities
Subscriber contract liabilities$22,816 $21,987 
Wholesale capacity contract liabilities30,861 52,652 
Total short-term contract liabilities$53,677 $74,639 
Long-term contract liabilities
Subscriber contract liabilities$1,632 $1,704 
Wholesale capacity contract liabilities, net of contract asset1,581 61,173 
Total long-term contract liabilities$3,213 $62,877 
Total contract liabilities$56,890 $137,516 

For subscriber contract liabilities, the amount of revenue recognized during the years ended December 31, 2023 and 2022 from performance obligations included in the contract liability balance at the beginning of these periods was $19.6 million and $23.4 million, respectively. For wholesale capacity contract liabilities, the amount of revenue recognized during the years ended December 31, 2023 and 2022 from performance obligations included in the contract liability balance at the beginning of these periods was $44.1 million and $0.8 million, respectively.

The duration of the Company’s contracts with subscribers is generally one year or less. As of December 31, 2023, the Company expects to recognize $22.8 million of its remaining performance obligations to its subscribers during the next twelve months. The Service Agreements do not have a termination date; therefore, the related contract liabilities may be recognized into revenue over various periods driven by the expected related service or recoupment periods. As of December 31, 2023, the Company expects to recognize $30.9 million of its remaining performance obligations during the next twelve months.

The components of wholesale capacity contract liabilities are presented in the table below (amounts in thousands).
As of December 31,
20232022
Wholesale capacity contract liabilities, net:
Advanced payments for services expected to be performed with the second-generation satellite constellation during Phase 1 (2)
$5,219 $99,671 
Additional consideration associated with the 2021 and 2023 Funding Agreements (3)
16,104 — 
Advanced payments for services expected to be performed with the ground spare satellite launched in June 2022 during Phases 1 and 2
23,673 25,438 
Advanced payments contractually owed for services expected to be performed with the next-generation satellite constellation prior to the Phase 2 Service Period
14,204 22,540 
Advanced payments for the Phase 1 service fee and service-related operating expenses and capital expenditures
19,907 18,872 
Contract asset (1)
(46,665)(52,696)
Wholesale capacity contract liabilities, net$32,442 $113,825 
(1)In November 2022, the Company issued Warrants with an initial fair value at the time of issuance of $48.3 million and recorded in equity with an offset to a contract asset on the Company's consolidated balance sheets. The fair value of the Warrants is recorded as a reduction to revenue over the period in which the Company performs its performance obligations through the estimated completion of the contract term, consistent with the period in which the customer benefits from the services provided.
(2)During 2021, the Company received payments from Partner totaling $94.2 million (the "2021 Funding Agreement"). In February 2023, the Service Agreements were amended. This amendment, which was effective in April 2023, changed certain terms in the 2021 Funding Agreement, resulting in $88.0 million previously recorded as deferred revenue being re-characterized as debt. See further discussion in Note 6: Long-Term Debt and Other Financing Arrangements.
(3)In connection with the Company recording the fair value of its financial obligations in the amended 2021 and 2023 Funding Agreements, it recorded a debt discount of $11.6 million and $4.5 million, respectively, representing the difference between the present value of the future principal payments discounted using the prevailing market rate at the date of issuance of the debt and the effective rate. The offset was recorded to deferred revenue and is being recognized into revenue over the Phase 1 and 2 Service Periods, respectively.