Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 156

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 18
Chunk 156
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 working capital, weighted   
                                           average cost of capital, estimated spend on capital expenditures and the projected cash flow growth rates. These assumptions are sensitive      
                                           to and affected by the expected future market or economic conditions, and industry and company-specific qualitative factors.                    
How We Addressed the Matter in Our Audit   We obtained an understanding, evaluated the                                                                                                     
                                           design and tested the operating effectiveness of controls over the Company’s goodwill impairment valuation process, including                   
                                           test of controls over the significant assumptions used in estimating the fair value of the reporting units.                                     
                                           To test the Company's goodwill impairment test, including estimated fair value of the                                                           
                                           reporting units, our audit procedures included, assessing methodologies and testing the significant assumptions and underlying data used        
                                           by the Company. We evaluated the Company’s valuation process by comparing the significant assumptions to current industry and economic          
                                           trends, we analyzed management’s forecasted revenue including the revenue growth rate, profitability margins, working capital, understand       
                                           and evaluate the changes as compared to the historical results and to selected guideline companies in the industry. In addition, we performed   
                                           a sensitivity analysis of significant assumptions to evaluate the changes in the fair value of the Company resulting from changes in the        
                                           assumptions. We involved our valuation specialists to assist with our evaluation of the methodology used by the Company and significant         
                                           assumptions included in the fair value estimates.                                                                                               
/s/ KOST FORER GABBAY & KASIERER
 A Member of EY Global
 
We have served as the Company‘s auditor since 2004.
 Tel-Aviv, Israel
 
March 25, 2025
 
 F - 3
 
 
 
  Kost Forer Gabbay &amp; Kasierer     Tel: +972-3-6232525
144 Menachem Begin Road, Building A,   Fax: +972-3-5622555
      Tel-Aviv 6492102, Israel                ey.com      
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To the Shareholders and the Board of Directors of Perion Network Ltd.
 
Opinion on Internal Control over Financial Reporting
 
We have audited Perion Network Ltd. and its subsidiaries' internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), (the COSO criteria). In our opinion, Perion Network