TeleNav 2014 Annual Report Download - page 40

Table of Contents
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 33.63% of our common stock outstanding as of June 30, 2014 . 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 48,000 square feet of space in Shanghai,
China for our research and development, sales and support operations pursuant to leases expiring in September 2014 and September 2016,
approximately 19,000 square feet in Xi’an, China, for research and development operations pursuant to leases expiring in September 2014 and
October 2014, and as well as approximately 11,000 square feet in Cluj, Romania, for research and development operations pursuant to a lease
that expires in December 2014. We lease approximately 12,000 square feet in Culver City, California for research and development and sales
and marketing operations. We also lease office space of less than 3,000 square feet each in Northlake, Washington; Reston, Virginia; Southfield,
Michigan; Boston, Massachusetts; Chicago, Illinois; New York, New York; Berlin, Germany; and São Paulo, Brazil 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
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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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 2. PROPERTIES
ITEM 3. LEGAL PROCEEDINGS