Clearwire 2007 Annual Report Download - page 85

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During 2004, the Company entered into two agreements with ITFS Spectrum Advisors, LLC (“ISA”) and ITFS
Spectrum Consultants LLS (“ISC”). The agreements provided for payment to ISA and ISC in the form of warrants
to purchase additional shares of Class A common stock in exchange for ISA and ISC providing opportunities for
Clearwire to purchase or lease additional spectrum. Each of the agreements specifies a maximum consideration
available under the agreement and, in 2005, the maximum consideration under the agreement with ISAwas reached.
For the years ended December 31, 2007 and 2006, ISC earned approximately $181,000 and $400,000,
respectively. During 2007 and 2006, $181,000 and $65,000 was paid in cash, respectively, and warrants to purchase
7,138 and 18,973 shares of Class A common stock, valued at $116,000 and $196,000, were issued, respectively. The
maximum consideration under the agreement with ISC was reached in 2007. As of December 31, 2007, there was no
payable remaining related to these agreements.
4. Investments in Equity Investees
The Company’s ownership interests in equity investees, accounted for under the equity method, are as follows:
2007 2006 2005
December 31,
Danske Telecom A/S (“Danske”) .................................. 38.2% 38.2% 38.2%
MVS Net S.A. de C.V. (“MVS Net”) . .............................. 29.2% 26.7% 26.7%
Denmark — Danske, a public limited company in Denmark is a telecommunications services provider holding
spectrum licenses covering most of the major markets in Denmark. Danske offers wireless broadband Internet
services to consumers and businesses in multiple markets in Denmark over a network deploying
NextNet equipment. Clearwire acquired an equity interest in Danske in 2005 and has invested a total of
$12.2 million through December 31, 2007. Revenues and related cost of goods and services sold to Danske by
NextNet through August 29, 2006 have been eliminated. Clearwire’s investment in Danske has been reduced by
$6.1 million for its proportionate share of losses since inception, of which approximately $2.6 million, $3.3 million
and $288,000 was incurred during the years ended December 31, 2007, 2006 and 2005, respectively. Total assets
and total liabilities of Danske at December 31, 2007 were $27.5 million and $20.4 million. Total assets and total
liabilities of Danske at December 31, 2006 were $36.8 million and $19.0 million.
Mexico — MVS Net, S.A. de C.V. (“MVS Net”) is a Mexican telecommunications company in which
Clearwire acquired an equity interest in 2004 and has invested a total of $30.3 million through December 31, 2007.
Revenues and related costs of goods and services sold to MVS Net by NextNet through August 29, 2006 have been
eliminated. Clearwire’s investment in MVS Net has been reduced by $8.7 million for its proportionate share of
losses since inception, of which approximately $2.2 million, $1.9 million, and $3.7 million was incurred during the
years ended December 31, 2007, 2006 and 2005, respectively. Total assets and total liabilities of MVS Net at
December 31, 2007 were $25.2 million and $16.7 million. Total assets and total liabilities of MVS Net at
December 31, 2006 were $28.1 million and $16.7 million.
77
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)