Incredimail 2012 Annual Report Download - page 85

Information reporting requirements will generally apply to payments with respect to ordinary shares paid to a U.S. Holder other than
certain exempt recipients (such as corporations). Backup withholding will apply to such payments if such U.S. Holder fails to provide a taxpayer
identification number or certification of other exempt status or fails to comply with the applicable requirements of the backup withholding rules.
Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against such U.S. Holder's United States
Federal income tax liability provided the required information is furnished by such U.S. Holder to the Internal Revenue Service. A U.S. Holder
who does not provide a correct taxpayer identification number may be subject to penalties imposed by the Internal Revenue Service.
Unless otherwise provided by the IRS, if the Company is a PFIC, a U.S. Holder is generally required to file an informational return
annually to report its ownership interest in the PFIC.
Non-U.S. Holders generally are not subject to information reporting or back-up withholding with respect to dividends paid on, or upon
the disposition of, ordinary shares, provided that such non-U.S Holder certifies to its foreign status, or otherwise establishes an exemption.
F. DIVIDENDS AND PAYING AGENTS
Not applicable.
G. STATEMENT BY EXPERTS
Not applicable.
H. DOCUMENTS ON DISPLAY
You may request a copy of our U.S. SEC filings, at no cost, by writing or calling us at Perion Network Ltd., 4 HaNechoshet Street,
Tel-Aviv 69710, Israel, Attention: Yacov Kaufman, Telephone: +972-3-
7696100. A copy of each report submitted in accordance with applicable
U.S. law is available for public review at our principal executive offices. In addition, our filings with the SEC may be inspected without charge
at the SEC’
s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Information on the operation of the Public Reference Room
can be obtained by calling the SEC at 1-800-SEC-0330. Our SEC filings are also available to the public from the SEC’
s website at
www.sec.gov.
A copy of each document (or a translation thereof to the extent not in English) concerning Perion that is referred to in this annual report
on Form 20-
F, is available for public view (subject to confidential treatment of agreements pursuant to applicable law) at our principal executive
offices at Perion Network Ltd., 4 HaNechoshet Street, Tel-Aviv 69710, Israel.
I. SUBSIDIARY INFORMATION
Not applicable.
ITEM 11. QUANTITATIVE AND QUALITATIVE DISC LO SURES ABOUT MARKET RISK
Exchange Rate Risk.
A significant portion of our revenues and expenses are in foreign currencies. As a result numerous balances are
denominated or linked to these currencies. Foreign currency related fluctuations resulted in $170,000 and $102,000 financial income in 2012 and
2011, respectively. These results are components of the exchange rate differences set forth in Note 12(a) to our financial statements.
As of December 31, 2012, balance sheet financial items in U.S. dollars, our functional currency, and those currencies other than the
U.S. dollars were as follows:
U.S. dollars
NIS
Other
Currencies
Total
In thousands of U.S. dollars
Current assets
38,241
7,823
1,628
47,692
Long
-
term assets
72,382
3,085
--
75,467
Current liabilities
(41,482
)
(8,951
)
(1,555
)
(51,988
)
Long-term liabilities
(15,528
)
(933
)
--
(16,461
)
Total
53,615
1,024
73
54,170
75