Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 141

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 11
Chunk 141
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ITEM 11.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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Exchange Rate Risk. A portion of our revenue and expenses are denominated in foreign currencies. As a result, numerous balances are denominated or linked to these currencies. Foreign currency related fluctuations resulted in $0.3 million net losses in 2022, $0.6 million net losses in 2023 and $1.0 million net losses in 2024. These losses are included in financial expenses, net, as presented in our statements of income.
 
As of December 31, 2024, 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                 Canadian dollars              Other Currencies                Total        
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                        In thousands of U.S. dollars                                                                                                  
Current assets                   438,707                36,384                        38,594                        47,778                 561,463    
Long-term assets        457                              6,784           408                                         1,283                   8,932    
Current liabilities              (87,837   )           (11,669   )                   (57,840   )                    (2,454   )            (159,800   )
Long-term liabilities            (11,251   )           (18,772   )                      (497   )                      (217   )             (30,737   )
Total                            340,076                12,727                       (19,335   )                    46,390                 379,858    
 
In addition, in territories where our prices are based on local currencies, fluctuations in the dollar exchange rate could affect our gross profit margin. We may compensate for such fluctuations by changing product prices accordingly. We also hold a small part of our financial investments in other currencies, mainly NIS and Euro. The dollar value of those investments may decline. A revaluation of 1% of the foreign currencies (i.e. other than U.S. dollar) would not have a material effect on our income before taxes possibly reducing it by $0.5 million.
 

A significant portion of our costs, including salaries and office expenses are incurred in NIS. Inflation in Israel may have the effect of increasing the U.S. dollar cost of our operations in Israel. If the U.S. dollar declines in value in relation to the New