Zynga 2011 Annual Report Download - page 28

Table of Contents
If we are unable to implement and maintain effective internal control over financial reporting in the future, the accuracy and timeliness of
our financial reporting may be adversely affected.
If we are unable to maintain adequate internal controls for financial reporting in the future, or if our auditors are unable to express an
opinion as to the effectiveness of our internal controls as required pursuant to the Sarbanes-
Oxley Act, investor confidence in the accuracy of our
financial reports may be impacted or the market price of our Class A common stock could be negatively impacted.
The requirements of being a public company may strain our resources, divert management’s attention and affect our ability to attract and
retain qualified board members.
We are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Sarbanes-
Oxley Act, the Dodd-Frank Act, the listing requirements of the NASDAQ Global Select Market and other applicable securities rules and
regulations. Compliance with these rules and regulations has increased and will continue to increase our legal and financial compliance costs,
make some activities more difficult, time-consuming or costly and increase demand on our systems and resources. The Exchange Act requires,
among other things, that we file annual, quarterly and current reports with respect to our business and operating results.
We also expect that being a public company, subject to these rules and regulations, will make it more expensive for us to obtain director
and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These
factors could also make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit
committee and compensation committee, and qualified executive officers.
As a result of disclosure of information in filings required of a public company, our business and financial condition will become more
visible, which we believe may result in threatened or actual litigation, including by competitors and other third parties. If such claims are
successful, our business and operating results could be harmed, and even if the claims do not result in litigation or are resolved in our favor,
these claims, and the time and resources necessary to resolve them, could divert the resources of our management and harm our business and
operating results.
We do not intend to pay dividends for the foreseeable future.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable
future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes.
Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of
their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We lease approximately 556,000 square feet of office space for our corporate headquarters in San Francisco, California under leases that
expire between 2012 and 2018. These facilities currently accommodate our principal executive, development, engineering, marketing, business
development, human resources, finance, legal, information technology and administrative activities.
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