TeleNav 2010 Annual Report Download - page 42

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.
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 65.6% of our common
stock outstanding as of June 30, 2010. 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.
Our stock price could decline due to the large number of outstanding shares of our common stock eligible for
future sale.
Sales of substantial amounts of our common stock in the public market following our IPO, or the perception
that these sales could occur, could cause the market price of our common stock to decline. These sales could also
make it more difficult for us to sell equity or equity related securities in the future at a time and price that we
deem appropriate.
Upon completion of the release of the underwriters’ lockup from our IPO on or about November 14, 2010,
34,929,223 shares will be eligible for sale upon the expiration of lock-up agreements, subject in some cases to
volume and other restrictions of Rule 144 and Rule 701 under the Securities Act.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Facilities
Our corporate headquarters are located at 1130 Kifer Road, Sunnyvale, California in an office consisting of
approximately 46,500 square feet pursuant to a lease that expires in January 2012. We sublease additional office
space in Sunnyvale, California of approximately 23,000 square feet pursuant to a sublease that expires in
December 2011. We lease approximately 48,500 square feet of space in Shanghai, China for our research and
development, sales and support operations pursuant to leases expiring in September 2014, as well as
approximately 17,000 square feet and approximately 9,500 square feet in Beijing and Xi’an, China, respectively,
for research and development operations pursuant to leases expiring in May 2012 and October 2011,
respectively. We also lease office space of less than 2,500 square feet each in Kirkland, Washington, Ashburn,
Virginia and Chelmsford, England for our sales, marketing and business development personnel located in those
areas. In addition to our headquarters and other offices, we lease data center space in Sunnyvale, Sacramento and
Santa Clara, California. We believe our current facilities will be adequate or that additional space will be
available on commercially reasonable terms for the foreseeable future.
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