Incredimail 2012 Annual Report Download - page 23

For example, as a public company, we have created additional board committees and are required to have at least two external directors,
pursuant to the Companies Law. We have also contracted an internal auditor and a consultant for implementation of and compliance with the
requirements under the Sarbanes-Oxley Act. Section 404 of the Sarbanes-
Oxley Act requires an annual review and evaluation of our internal
control over financial reporting of the effectiveness of these controls by our management. There is no guarantee that these efforts will result in
management assurance that our internal control over financial reporting is adequate in future periods. In connection with our compliance with
Section 404 and the other applicable provisions of the Sarbanes-
Oxley Act, our management and other personnel devote a substantial amount of
time, and we may need to hire additional accounting and financial staff, to assure that we continue to comply with these requirements. The
additional management attention and costs relating to compliance with the foregoing requirements could materially and adversely affect our
financial results. See "Item 5 Operating and Financial Review and Prospects — Overview —
General and Administrative Expenses" for a
discussion of our increased expenses as a result of being a public company.
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