Incredimail 2014 Annual Report Download - page 7

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P AR T I
ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3. KEY INFORMATION
A. SELECTED FINANCIAL DATA
On January 2, 2014, we purchased all of the outstanding shares of ClientConnect Ltd. ("ClientConnect"), which received the
ClientConnect business of Conduit Ltd. ("Conduit") on December 31, 2013, in a stock-for-
stock transaction (the "ClientConnect Acquisition").
Immediately following the closing, approximately 81% of our shares were owned by the former ClientConnect shareholders and option holders,
and 19% by our pre-
closing shareholders and option holders, on a fully diluted basis (as determined pursuant to the purchase agreement).
Accordingly, commencing in 2014, the ClientConnect Acquisition is reflected in our financial statements as a reverse acquisition of all of our
outstanding shares and options by ClientConnect in accordance with Accounting Standards Codification Topic 805, "Business
Combinations" ("ASC 805"), using the acquisition method of accounting whereby ClientConnect is the deemed accounting acquirer and Perion
is the deemed accounting acquiree. In accordance with the ASC 805 presentation requirements, our financial statements include ClientConnect’
s
comparative numbers, but not Perion's comparative numbers, for the years preceding 2014.
We derived the selected operations data below for the years ended December 31, 2012, 2013 and 2014 and the selected balance sheet
data as of December 31, 2013 and 2014 from our audited consolidated financial statements and the related notes to the financial statements,
which were filed with the SEC on Form 6-
K on April 6, 2015 and incorporated by reference herein (the "Financial Statements"). We derived the
selected operations data below for the year ended December 31, 2011 and the selected balance sheet data as of December 31, 2011 and 2012
from our audited consolidated financial statements not incorporated by reference in this report. As permitted by the rules of the Securities and
Exchange Commission ("SEC"), we have omitted data as of, and for the year ended, December 31, 2010, because preparing carve-
out financial
statements of the ClientConnect business for 2010 would require unreasonable effort and expense in light of the complexity involved in such
preparation and their relative lack of importance in comparison to those of more recent years. Our consolidated financial statements are prepared
and presented in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). The following tables
present selected financial data and should be read in conjunction with "Item 5 –
Operating and Financial Review and Prospects" and our
Financial Statements.
3