Clearwire 2009 Annual Report Download - page 123

I
t
i
s
i
nten
d
e
d
t
h
at at a
ll
t
i
mes, t
h
e num
b
er o
f
C
l
earw
i
re Commun
i
cat
i
ons C
l
ass A Common Interests
h
e
ld b
y
C
l
earw
i
re w
ill
equa
l
t
h
e num
b
er o
f
s
h
ares o
f
C
l
ass A Common Stoc
ki
ssue
db
yC
l
earw
i
re. S
i
m
il
ar
l
y,
i
t
i
s
i
nten
d
e
d
t
hat, at all times, Sprint and each Investor, except Goo
g
le, will hold an equal number of Class B Common Stock an
d
Cl
ear
wi
re
C
ommun
i
cat
i
ons
Cl
ass B
C
ommon Interests.
Divi
d
en
d
Po
l
ic
y
We have not declared or paid any cash dividends on Class A or Class B Common Stock since the Closing. W
e
c
urrent
l
y expect to reta
i
n
f
uture earn
i
ngs,
if
any,
f
or use
i
nt
h
e operat
i
ons an
d
expans
i
on o
f
our
b
us
i
ness. We
d
o not
ant
i
c
i
pate pa
yi
n
g
an
y
cas
hdi
v
id
en
d
s
i
nt
h
e
f
oreseea
bl
e
f
uture. In a
ddi
t
i
on, covenants
i
nt
h
e
i
n
d
enture
g
overn
i
n
g
ou
r
S
enior Secured Notes impose significant restrictions on our ability to pay cash dividends to our stockholders. Th
e
di
str
ib
ut
i
on o
f
su
b
scr
i
pt
i
on r
i
g
h
ts as part o
f
t
h
eR
i
g
h
ts O
ff
er
i
ng represents a
di
v
id
en
ddi
str
ib
ut
i
on
.
Non-contro
ll
ing Interests in C
l
earwire Communications
C
learwire Communications is consolidated into Clearwire. Therefore
,
the holders of the Clearwire Commu-
ni
cat
i
ons C
l
ass B Common Interests represent non-contro
lli
n
gi
nterests
i
n a conso
lid
ate
d
su
b
s
idi
ar
y
. As a resu
l
t, t
he
i
ncome (loss) consolidated b
y
Clearwire is decreased in proportion to the outstandin
g
non-controllin
g
interests
.
Current
l
y, at t
h
eC
l
earw
i
re
l
eve
l
, non-contro
lli
ng
i
nterests represent approx
i
mate
l
y 79% o
f
t
h
e non-econom
i
c
vot
i
ng
i
nterests.
Warrants
A
ll
O
ld
C
l
earw
i
re warrants
i
ssue
d
an
d
outstan
di
ng at t
h
eC
l
os
i
ng were exc
h
ange
d
on a one-
f
or-one
b
as
i
s
f
or
w
arrants to purchase our Class A Common Stock with equivalent terms. The fair value of the warrants exchan
g
ed of
$
18.5 million is included in the calculation of purchase consideration using the Black-Scholes option pricing mode
l
using a share price of
$
6.62. Holders may exercise their warrants at any time, with exercise prices ranging fro
m
$3.00 to $48.00. Old Clearwire
g
ranted the holders of the warrants re
g
istration ri
g
hts coverin
g
the shares sub
j
ect t
o
i
ssuance under the warrants. The number of warrants outstanding at December 31, 2009 was 17,806,220. Th
e
w
arrants expire on August
5
, 2010, but the term is subject to extension in certain circumstances.
16. Net Loss Per
S
har
e
Basic Net Loss Per
Sh
are
T
he net loss per share attributable to holders of Class A Common Stock is calculated based on the followin
g
i
n
f
ormat
i
on (
i
nt
h
ousan
d
s, except per s
h
are amounts)
:
Yea
r
E
n
ded
December 31
,
2009
Period Fro
m
N
ovember 29,
2
008 t
o
D
ecember
31,
2008
N
et loss
...............................................
$
(1,253,846) $(189,654)
Non-contro
lli
n
gi
nterests
i
n net
l
oss o
f
conso
lid
ate
d
su
b
s
idi
ar
i
e
s
......
9
28
,
264 159
,
721
(
325,582
)(
29,933
)
D
i
str
ib
ut
i
on to warrant an
d
restr
i
cte
d
stoc
k
un
i
t
h
o
ld
er
s
...........
.
(
9,491
)—
N
et loss attributable to Class A Common Stockholder
s
............. $ (335,073) $ (29,933
)
We
i
g
h
te
d
average s
h
ares C
l
ass A Common Stoc
k
outstan
di
n
g
........
1
94
,
696 189
,
921
L
oss
p
er shar
e
...........................................
$
(
1.72
)$(
0.16
)
113
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)