Enom 2014 Annual Report Download - page 30

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equity securities with an aggregate offering price not to exceed $100 million and under which certain selling stockholders may offer
and sell up to 2.8 million shares of our common stock.
Our stock repurchase program may be suspended or terminated at any time, which may result in a decrease in the trading price of
our common stock.
Our board of directors previously approved a stock repurchase program under which we are authorized to repurchase up to
$50.0 million of our common stock, of which approximately $19.2 million remains available as of December 31, 2014. Such stock
repurchases may be limited, suspended, or terminated at any time without prior notice, and we have not repurchased any shares of our
common stock since April 2013. There can be no assurance that we will repurchase additional shares of our common stock under our
stock repurchase program or that any future repurchases will have a positive impact on the trading price of our common stock or
earnings per share. Important factors that could cause us to limit, suspend or terminate our stock repurchase program include, among
others, unfavorable market conditions, the trading price of our common stock, the nature of other investment or strategic opportunities
presented to us from time to time, the rate of dilution of our equity compensation programs, the availability of adequate funds, and our
ability to make appropriate, timely, and beneficial decisions as to when, how, and whether to purchase shares under the stock
repurchase program. If we limit, suspend or terminate our stock repurchase program, our stock price may be negatively affected.
As a public company, we are subject to compliance initiatives that require substantial time from our management and result in
significantly increased costs.
The Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and other rules
implemented by the SEC and the NYSE, impose various requirements on public companies, including requirements related to certain
corporate governance practices. Compliance with these rules and regulations has resulted in significantly increased costs for us as a
public company than we incurred as a private company, including substantially higher costs to obtain comparable levels of director
and officer liability insurance. Proposed corporate governance laws and regulations under consideration may further increase our
compliance costs. If compliance with these various legal and regulatory requirements diverts our management’s attention from other
business concerns, it could have a material adverse effect on our business, financial condition and results of operations. Additionally,
these laws and regulations may make it more difficult for us to attract and retain qualified individuals to serve on our board of
directors, on committees of our board of directors, or as executive officers.
We are required to make an assessment of the effectiveness of our internal controls over financial reporting in accordance with
Section 404 of the Sarbanes-Oxley Act of 2002. We are also required to obtain an opinion on the effectiveness of our internal controls
over financial reporting from our independent registered public accounting firm. Section 404 requires us to perform system and
process evaluation and testing of our internal controls over financial reporting to allow management and our independent registered
public accounting firm to report on the effectiveness of our internal controls over financial reporting for each fiscal year. Our testing,
or the subsequent testing by our independent registered public accounting firm, may reveal deficiencies in our internal controls over
financial reporting that are deemed to be material weaknesses. If we are unable to comply with the requirements of Section 404,
management may not be able to assess whether our internal controls over financial reporting are effective, which may subject us to
adverse regulatory consequences and could result in a negative reaction in the financial markets due to a loss of confidence in the
reliability of our financial statements. In addition, if we fail to maintain effective controls and procedures, we may be unable to
provide the required financial information in a timely and reliable manner or otherwise comply with the standards applicable to us as a
public company. Any failure by us to provide the required financial information in a timely and reliable manner could materially and
adversely impact our financial condition and the trading price of our securities. In addition, we may incur additional expenses and
commitment of management’s time in connection with further assessments of our compliance with the requirements of Section 404,
which could materially increase our operating expenses and adversely impact our results of operations.
If securities or industry analysts publish inaccurate or unfavorable research about our business, our stock price and trading
volume could decline.
The trading market for our common stock will depend in part on the research and reports that securities or industry analysts
publish about us or our business. If one or more of the analysts who cover us downgrade our stock or publish inaccurate or
unfavorable research about our business, our stock price would likely decline. If one or more of these analysts ceases to cover us or
fails to publish reports on us regularly, demand for our stock could decrease, which might cause our stock price and trading volume to
decline.