Clearwire 2007 Annual Report Download - page 111

recorded consistently, are authorized and reviewed by higher level accounting personnel and include the appropriate
level of supporting documentation prior to being posted into the general ledger. All balance sheet accounts are
required to be reconciled monthly to supporting documentation and, as applicable, subsidiary ledgers. Further, the
accounting staff is required to review the balance and activity in the corresponding income statement account(s) to
the balance sheet account being reconciled. Lastly, all account reconciliations are subject to a review by an
individual one level above the preparer.
With respect to our significant deficiency on the lack of automation of our accounting for share-based
payments and the ineffective controls relating to processes to ensure consistent communication of modifications in
stock option grants to accounting personnel responsible for accounting for such modifications, we have completed
our remediation efforts. We implemented a software program to automate the accounting for share based payments
and the modifications of stock option grants. With respect to our significant deficiency on leases and deferred rent,
we have completed our remediation efforts through the implementation of monthly internal control procedures to
ensure that all leases have been recorded and that all changes in a lease status during a period are examined and all
required changes are made to the accounting records.
With the Information Technology department, we have completed our remediation efforts. We have imple-
mented stronger controls to address the authentication of information security and the responsibilities within
significant applications. This includes process improvements to ensure that new hires are granted the minimum
amount of security access to key financial systems, to ensure this security access remains at appropriate levels
across time by conducting periodic security reviews, to ensure that security access is removed in a timely manner
when individuals leave the company and to ensure the computing environments and facilities remain secure.
After consideration of the remediation efforts described above, we have concluded that as of December 31,
2007, the material weaknesses disclosed with the audit of our consolidated financial statements for the years ended
December 31, 2006 and 2005 included in our Registration Statement on Form S-1/A dated March 7, 2007, have
been remediated. In addition, based on the work we performed during 2007 on our internal control over financial
reporting, we have not identified any new material weaknesses as of December 31, 2007. This annual report does
not include an attestation report of the company’s registered public accounting firm due to a transition period
established by rules of the Securities and Exchange Commission for newly public companies.
ITEM 9B. Other Information
None
PART III
ITEM 10. Directors, Executive Officers and Corporate Governance
The information required by Item 10 will be included in the Company’s 2008 Proxy Statement (the “Proxy
Statement”) under the heading “Information About Our Directors and Executive Officers” and is incorporated
herein by reference. The Proxy Statement will be filed with the Securities and Exchange Commission pursuant to
Regulation 14A within 120 days of the end of the Corporation’s 2007 fiscal year.
ITEM 11. Executive Compensation
The information required by Item 11 will be included in the Proxy Statement under the headings “Information
About Our Directors and Executive Officers — Compensation of the Board,” “Compensation of Executive
Officers” and “Report of the Compensation Committee on Executive Compensation,” and is incorporated herein
by reference.
103