Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 171

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 18
Chunk 171
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 value hierarchy because their fair value is derived from quoted market prices or alternative pricing sources and models utilizing observable market inputs. Derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Company's contingent considerations in connection to the acquisitions were classified within Level 3 because factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity.

  Repurchase of shares
 
In prior years, the Company repurchased its ordinary shares on the open market and  holds these shares as treasury shares , with their acquisition cost presented as a reduction of shareholders' equity.
 
In 2024, the Company initiated a new share repurchase program authorized by the Board of Directors, under which repurchased ordinary shares are immediately retired upon repurchase. Upon retirement, the par value of the repurchased shares is deducted from ordinary share capital, and the excess of the repurchase price over the par value is recorded as a reduction of Additional Paid-in Capital. See Note 13, “Share repurchase,” for further details.

 
    Prior-period financial statements correction of immaterial errors:
 
With respect to the year ended December 31, 2024, the Company recorded a correction of prior-period errors related to the share-based compensation expenses. The Company assessed the materiality of these errors on the financial statements for prior periods in accordance with the SEC Staff Accounting Bulletin (SAB) No. 99, Materiality, codified in ASC 250, Presentation of Financial Statements, and concluded that they were not material to prior years presented. However, the Company determined that the impact of the misstatement to its financial statements for the year ended December 31, 2024 was material. In accordance with ASC 250, the Company has corrected the misstatement for the years ended December 31, 2023 and December 31, 2022 by revising the consolidated financial statements appearing herein. The impact of the errors on the Company’s consolidated balance sheet as of December 31, 2023 and 2022 was an understatement of additional paid-in capital of $2,450 and $1,746, respectively, resulted in an overstatement of retained earnings of $2,450 and $1,746, respectively.

 F - 22
  PERION NETWORK LTD. AND ITS SUBSIDIARIES
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 U.S. dollars in thousands (except share and per share data)
   NOTE