Enom 2013 Annual Report Download - page 69

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movements in the foreign currencies in which we transact will significantly affect future net earnings or losses. Foreign currency risk can be
quantified by estimating the change in cash flows resulting from a hypothetical 10% adverse change in foreign exchange rates. We believe such
a change would not currently have a material impact on our results of operations. However, as our international operations grow, our risks
associated with fluctuation in currency rates will become greater, and we intend to continue to assess our approach to managing this risk.
Inflation Risk
We do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our costs were to
become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through pric
e increases. Our inability or
failure to do so could harm our business, financial condition and results of operations.
Concentrations of Credit Risk
As of December 31, 2013, our cash and cash equivalents were maintained primarily with four major U.S. financial institutions and three
foreign banks. We also maintained cash balances with three Internet payment processors. Deposits with these institutions at times exceed the
federally insured limits, which potentially subject us to concentration of credit ris k. Historically, we have not experienced any losses related to
these balances and believe that there is minimal risk of expected future losses. However, there can be no assurance that there will not be losses
on these deposits.
Advertising network partners that accounted for more than 10% of our consolidated accounts receivable balance were as follows:
The consolidated financial statements and supplementary data required by Item 8 are contained in Item 7 and Item 15 of this Annual
Report on Form 10-K and are incorporated herein by reference.
None.
Definition and Limitations of Disclosure Controls and Procedures.
Our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) are designed to reasonably
ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized,
and reported within the time periods specified in the SEC’s rules and forms and (ii) accum ulated and communicated to management, including
our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. A control
system, no matter how well designed and operated, can provide only reasonable assurance that it will detect or uncover failures within the
Company to disclose material information otherwise required to be set forth in our periodic reports. Inherent limitations to any system of
disclosure controls and procedures include, but are not limited to, the possibility of human error and the circumvention or overriding of such
controls by one or more persons. In addition, we have designed our system of controls based on certain assumptions, which we believe are
reasonable, about the likelihood of future events, and our system of controls may therefore not achieve its desired objectives under all possible
future events.
Evaluation of Disclosure Controls and Procedures.
Our management, with the participation of our Interim P resident & Chief Executive Officer and our Chief Financial Officer, has
evaluated the effectiveness of our disclosure controls and procedures at December 31, 2013, the end of the period covered by this report. Based
on this evaluation, the principal executive officer and principal financial officer concluded that, at December 31, 2013, our disclosure controls
and procedures were effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it
files or submits under the Exchange Act is (i) recorded, processed, summarized, and reported on a
67
Year ended
December 31,
2013
2012
Google
27
%
26
%
Item 8.
Financial Statements and Supplementary Data
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A.
Controls and Procedures