While going through Clearwire's S-1,
I came across a rather innocuous looking paragraph, which should make
investors think twice (particularly considering a paragraph very
similar to this one part of a Nortel filing a few years ago). Make of
this what you will:
"In connection with their audits for the years ended
December 31, 2004 and 2005, our independent public
accountants have identified a material weakness in our internal
control. A material weakness is a significant deficiency that,
by itself or in combination with other control deficiencies,
results in more than a remote likelihood that a material
misstatement in our annual or interim financial statements will
not be prevented or detected. This issue relates to a lack of
sufficient review of nonroutine and complex transactions. Our
independent public accountants have also identified other
significant deficiencies in our internal control. If we do not
address and remediate our material weakness and other
significant deficiencies, the reliability of our periodic
reports on Form 10-Q and annual report on
Form 10-K may be compromised."
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