TeleNav 2015 Annual Report Download - page 39

Table of Contents
Our common stock was sold in our IPO at $8.00 per share. Although our common stock has traded at prices as high as $22.07 per share, it
has also traded at prices as low as $4.65 and has tended to have significant downward and upward price movements in a relatively short time
period. Future fluctuations or declines in the trading price of our common stock may result from a number of events or factors, including those
discussed in the preceding risk factors relating to our operations, as well as:
General market conditions and domestic or international macroeconomic factors unrelated to our performance, such as the continuing
unprecedented volatility in the financial markets, may also affect our stock price. For these reasons, investors should not rely on recent trends to
predict future stock prices or financial results. Investors in our common stock may not be able to dispose of the shares they purchased at prices
above the IPO price, or, depending on market conditions, at all.
In addition, if the market price of our common stock falls below $5.00 per share for an extended period of time, under stock exchange
rules, our stockholders will not be able to use such shares as collateral for borrowing in margin accounts. Further, certain institutional investors
are restricted from investing in shares priced below $5.00 per share. This inability to use shares of our common stock as collateral and the
inability of certain institutional investors to invest in our shares may depress demand and lead to sales of such shares creating downward
pressure on and increased volatility in the market price of our common stock.
Recently, the market price for our common stock has traded only slightly above the cash value of our common stock. If investors do not
value our company as an ongoing business and only value it for the cash on our balance sheet, our stock price may decline if we continue to
incur net losses and use our cash to fund operations. We may also attract investors who are looking for short-term gains in our shares rather than
being interested in our long-term outlook. As a result, the price of our common stock may be volatile.
The concentration of ownership of our capital stock limits your ability to influence corporate matters.
Our executive officers, directors, current 5% or greater stockholders and entities affiliated with them beneficially owned (as determined in
accordance with the rules of the SEC) approximately 56.5% of our common stock outstanding as of June 30, 2015 . This significant
concentration of share ownership may adversely affect the trading price for our common stock because investors often perceive disadvantages in
owning stock in companies with controlling stockholders. Also, these stockholders, acting together, will be able to control our management and
affairs and matters requiring stockholder approval, including the election of directors and the approval of significant corporate transactions, such
as mergers, consolidations or the sale of substantially all of our assets. Consequently, this concentration of ownership may have the effect of
delaying or preventing a change of control, including a merger, consolidation or other business combination involving us, or discouraging a
potential acquirer from making a tender offer or otherwise attempting to obtain control, even if that change of control would benefit our other
stockholders.
None.
Facilities
Our corporate headquarters are located at 950 De Guigne Drive, Sunnyvale, California in an office consisting of approximately 175,000
square feet pursuant to a lease that expires in December 2019. This headquarters facility houses the majority of our U.S. research and
development, support, marketing and general and administrative personnel. We lease approximately 32,000 square feet of space in Shanghai,
China for our research and development, sales and support operations pursuant to a lease expiring in September 2016, approximately 9,000
square feet in Xi’an, China, for research and development
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actual or anticipated fluctuations in our operating results;
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changes in the financial projections we may provide to the public or our failure to meet these projections;
• announcements by us or our competitors of significant technical innovations, relationship changes with key customers,
acquisitions, strategic partnerships, joint ventures, capital raising activities or capital commitments;
• the public’
s response to our press releases or other public announcements, including our filings with the SEC;
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lawsuits threatened or filed against us; and
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large distributions of our common stock by significant stockholders to limited partners or others who immediately resell the shares.
ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 2. PROPERTIES