Incredimail 2009 Annual Report Download - page 103

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INCREDIMAIL LTD .
AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:
*) Includes additions generated from changes in the dollar/NIS exchange rate, adjustment to the CPI and accrued
interest in the total amount of $49,000 for the year ended December 31, 2009.
As of December 31, 2009, the Company is subject to Israeli income tax examinations and to U.S. federal income
tax examinations for the 2006 through 2009 tax years.
The Ordinary shares entitle their holders to voting rights, the right to receive cash dividend and the right to a share in
excess assets upon liquidation of the Company.
In February 2007, the Company granted 7,500 restricted Ordinary shares to non-employees in respect of services
granted to the Company. The shares vested on June 1, 2007.
The Company accounted for the grant in accordance with ASC 718, "Compensation – Stock Compensation". Stock
based compensation amounted to $63,000 in the year ended December 31, 2007.
In July 2008, the Company's Board of Directors authorized the repurchase of up to $3,750,000 in the open market,
subject to normal trading restrictions. During 2008 and 2009, the Company purchased 300,564 and 45,455 of its
Ordinary shares for total consideration of $882,000 and $120,000, respectively which were recorded as Treasury
stock, at cost as part of shareholders' equity.
NOTE 9:
-
INCOME
TAXES (Cont.)
f.
Uncertain tax position:
December 31,
2008
2009
U.S. dollars in thousands
Balance at January 1, 2009
$
842
$
1,357
Reductions for prior year tax positions
801
(82
)
Increases in tax positions for current year*)
(286
)
66
Balance at December 31, 2009
$
1,357
$
1,341
g.
Income (loss) before taxes on income is comprised as follows:
Year ended December 31,
2007
2008
2009
U.S. dollars in thousands
Domestic
$
(1,415
)
$
4,676
$
11,532
Foreign - U.S.A
46
38
26
$
(1,369
)
$
4,714
$
11,558
NOTE 10:
-
SHAREHOLDERS' EQUITY
a.
Ordinary share rights:
b.
Shares granted to non
-
employees:
c.
Treasury shares:
F-22