Incredimail 2014 Annual Report Download - page 53

For more information on uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our
business, see Item 3 "Key Information—Risk Factors."
For additional trend information, see the discussion in "Item 5.A Operating and Financial Review and Prospects – Operating Results."
E. OFF-BALANCE SHEET ARRANGEMENTS
We do not have off-
balance sheet arrangements (as such term is defined by applicable SEC regulations) that have or are reasonably
likely to have a current or future effect on our financial condition, changes in financial conditions, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that are material to investors.
F. TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
The following table summarizes our contractual commitments as of December 31, 2014 and the effect those commitments are expected
to have on our liquidity and cash flow in future periods.
6. To address the multiple threats and changes regarding the long-term ability to grow search-
generated revenues, we are refocusing our
core competencies and investing internal development efforts as well as focusing our acquisition efforts towards creating mobile
advertising platform for app developers.
7.
There has been a growing usage of mobile platforms and, as a result, an increasing share of advertising campaigns channeled towards
mobile platforms. Being a nascent industry it is very fragmented, from the
administrative, technological and analytical aspects of the
business. We aim to develop and market a platform that will simplify and organize the advertising process for mobile app developers,
that as a fully managed service for the smaller app developers, and a self-
serve platform augmenting the internal marketing staff by large
app developers.
Payments Due by Period
(U.S. dollars in thousands)(
****
)
Contractual Commitments as of December 31, 2014
Total
Less than
1 year
1
-
3 Years
3
-
5 Years
More than
5 Years
Long
-
term debt, including current portion.
(*)
$
4,250
$
2,300
$
1,950
$
-
$
-
Accrued severance pay.
(**)
1,427
-
-
-
1,427
Convertible debt.
(*)
36,900
-
14,760
14,760
7,380
Contingent consideration.
(***)
20,899
9,770
11,129
-
-
Operating leases
20,468
2,547
4,285
4,219
9,417
Total
$
83,944
$
14,617
$
32,124
$
18,979
$
18,224
_____________
(*)
Long-term debt and convertible debt obligations represent maximum repayment of principal and do not include interest payments due
thereunder.
(**)
Severance pay obligations to our Israeli employees, as required under Israeli labor law and as set forth in employment agreements, are
payable only upon termination, retirement or death of the respective employee and are for the most part covered by ongoing payments to
funds to cover such obligations. Of this amount, only $ 904 is unfunded.
(***)
Contingent consideration represents the maximum cash payments we will be obligated to make under contingent consideration
arrangements with former owners of certain entities we acquired if specified conditions are satisfied. As of December 31, 2014 we have
cash payment obligations related to acquisitions in the amount of $10,245 included on our balance sheet.
(****)
The total amount of unrecognized tax benefits for uncertain tax positions was $724 in thousands as of December 31, 2014. Payment of
these obligations would result from settlements with taxing authorities. Due to the difficulty in determining the timing of resolution of
audits, these obligations are not included in the table.
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