Incredimail 2013 Annual Report Download - page 65

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ITEM 8. FINANCIAL INFORMATION
A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION
Our audited consolidated financial statements for the year ended December 31, 2013 are included in this annual report pursuant to Item
18. Shortly after filing this annual report, we expect to submit with the SEC a report on Form 6-
K containing the audited consolidated statements
of income, change in shareholders' equity and cash flows of ClientConnect for the years ended December 31, 2011, 2012 and 2013 and the
audited consolidated balance sheets of ClientConnect as of December 31, 2012 and 2013, as well as pro forma combined financial data of Perion
and ClientConnect as though the ClientConnect Acquisition were consummated on January 1, 2013.
In November 2013, we were served with a lawsuit filed in the Tel Aviv District Court (Economic Department) against us and our
directors by an individual claiming to be a holder of 150 of our ordinary shares. The plaintiff alleges certain flaws in the process, price and
disclosure in connection with the ClientConnect Acquisition. The plaintiff requested that the court certify the lawsuit as a valid class action, a
declaratory judgment confirming the plaintiff's allegations and certain remuneration for the purported plaintiff, including legal fees. We believe
that the complaint is without merit and plan to defend against it vigorously.
In November 2013, MyMail, Ltd., a non-
practicing entity, filed a lawsuit in the Eastern District of Texas alleging that ClientConnect's
toolbar technology infringes one of its U.S. patents issued in September 2012 and demanding an injunction and monetary payments. We believe
that we have strong defenses against this lawsuit and we intend to defend against it vigorously.
Policy on Dividend Distribution
In November 2010, we announced that as we are focusing on growth and intend to utilize our cash and investments to achieve that
growth. Accordingly, we decided to change our dividend policy to no longer distribute dividends.
B. SIGNIFICANT CHANGES
Since the date of our audited financial statements included elsewhere in this report, there have not been any significant changes other
than as set forth in this report under Item 4.A. – "Recent Developments".
ITEM 9. THE OFFER AND LISTING
A. OFFER AND LISTING DETAILS
Our ordinary shares have been listed on the NASDAQ Capital Market from January 31, 2006 to June 26, 2007, on the NASDAQ Global
Market from June 27, 2007 to December 31, 2013, and on the NASDAQ Global Select Market since January 2, 2014. Our ordinary shares
commenced trading on the Tel Aviv Stock Exchange on December 4, 2007. Our trading symbol on NASDAQ is "PERI" and on the TASE is
"PERION".
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