Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 84

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 84
---
 would likely be a PFIC for 2024 due to the low average value of our market capitalization during 2024. However, because,
among other considerations, the market price of our ordinary shares was significantly volatile throughout 2024, we believe that
alternative valuation methods are appropriate. Specifically, we believe that if our assets were valued based on the discounted cash flows
or revenue multiples methods, our enterprise value for 2024 would be significantly larger than the value derived from using the market
capitalization method. Accordingly, we believe that we were likely not a PFIC for 2024. However, our position is not binding on the U. S.
Internal Revenue Service and there can be no assurance that it will agree with our valuation approach.

In addition, we may also be a PFIC for any future taxable
year if the portion of our financial income out of our gross income were to increase to 75% or more for any taxable year. Our PFIC status
for any taxable year is an annual factual determination that can be made only after the end of that taxable year and will depend on the
composition of our income and assets and the value of our assets from time to time (including the value of our goodwill and other intangible
assets). For the reasons described above, we cannot express any expectation regarding our PFIC status for 2025 or any future taxable year.

If we are a PFIC for any taxable year and any of our non-U. S. subsidiaries
or other companies in which we own equity interests is also a PFIC (any such entity, a “ Lower-tier PFIC”), a U. S. Holder will
be deemed to own a proportionate amount (by value) of the shares of any Lower-tier PFIC and will be subject to U. S. federal income tax
according to the rules described in the subsequent paragraph on (i) certain distributions by the Lower-tier PFIC and (ii) dispositions
of shares of the Lower-tier PFIC, in each case as if the U. S. Holder held such shares directly, even though the U. S. Holder will not receive
the proceeds of those distributions or dispositions.

In general, if we are a PFIC for any taxable year during which
a U. S. Holder holds ordinary shares, gain recognized by such U. S. Holder on a sale or other disposition (including certain pledges) of
its ordinary shares will be allocated ratably over the U. S. Holder’s holding