SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Accounting Policies [Abstract] |
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Condensed Income Statement |
The effect of the change is as follows:
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Year ended December 31, 2022 |
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Year ended December 31, 2021 |
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Year ended December 31, 2020 |
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Under previous classification |
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Effect of change |
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As reported |
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Previously reported |
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Effect of change |
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As adjusted |
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Previously reported |
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Effect of change |
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As adjusted |
Cost of revenues |
$ |
33,265 |
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$ |
(3,078) |
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$ |
30,187 |
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$ |
17,785 |
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$ |
(87) |
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$ |
17,698 |
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$ |
12,365 |
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$ |
(54) |
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$ |
12,311 |
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Operating expenses: |
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Research and development |
31,932 |
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(814) |
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31,118 |
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24,619 |
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(320) |
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24,299 |
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18,283 |
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(269) |
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18,014 |
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Sales and marketing |
52,226 |
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(1,960) |
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50,266 |
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33,056 |
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(215) |
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32,841 |
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28,810 |
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(289) |
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28,521 |
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General and administrative |
39,435 |
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(291) |
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39,144 |
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20,680 |
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(39) |
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20,641 |
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8,221 |
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(118) |
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8,103 |
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Depreciation, amortization and impairment |
$ |
— |
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$ |
6,143 |
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$ |
6,143 |
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$ |
— |
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$ |
661 |
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$ |
661 |
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$ |
— |
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$ |
730 |
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$ |
730 |
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Schedule of Property, Plant and Equipment |
Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates:
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Years |
Computers and peripheral equipment |
3 |
Office furniture and equipment |
5-7 |
Lease improvements |
The shorter of the lease term or the useful life of the asset |
Internal-use software |
3 |
Property and equipment consist of the following:
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December 31, |
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2022 |
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2021 |
Cost: |
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Software development costs |
$ |
13,190 |
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$ |
2,594 |
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Computers and peripheral equipment |
2,283 |
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1,779 |
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Office furniture and equipment |
665 |
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661 |
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Leasehold improvements |
2,167 |
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2,164 |
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18,305 |
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7,198 |
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Accumulated depreciation |
(3,983) |
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(2,358) |
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Depreciated cost |
$ |
14,322 |
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$ |
4,840 |
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis:
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December 31, 2022 |
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Level 1 |
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Level 2 |
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Level 3 |
Assets: |
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Money market funds |
$ |
18,948 |
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$ |
— |
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$ |
— |
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Certificates of deposit |
— |
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20,000 |
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— |
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Liabilities: |
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Warrants liability |
$ |
1,265 |
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$ |
— |
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$ |
3,036 |
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December 31, 2021 |
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Level 1 |
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Level 2 |
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Level 3 |
Assets: |
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Money market funds |
$ |
4,515 |
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$ |
— |
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$ |
— |
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Liabilities: |
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Warrants liability |
$ |
3,510 |
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$ |
— |
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$ |
15,462 |
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Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
The change in the fair value of the Level 3 warrant liability is summarized below:
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December 31, |
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2022 |
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2021 |
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Beginning of the year |
$ |
15,462 |
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$ |
499 |
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Additions* |
— |
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18,427 |
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Change in fair value |
(12,426) |
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1,616 |
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Conversion of Legacy Innovid Warrants on the Closing of the Transaction |
— |
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(5,080) |
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End of the year |
$ |
3,036 |
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$ |
15,462 |
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* Additions during the year ended December 31, 2021 represent Company Warrant liability assumed in the Transaction. See Note 11, Warrants for further detail.
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Schedule of Key Inputs for Valuation of Private Placement Warrants |
The key inputs into the Black-Scholes model for the Private Warrants were as follows:
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December 31, |
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December 31, |
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2022 |
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2021 |
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Risk-free interest rate |
4.07 |
% |
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1.24 |
% |
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Expected dividends |
— |
% |
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— |
% |
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Expected term (years) |
3.9 |
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4.9 |
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Expected volatility |
85 |
% |
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55 |
% |
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Schedules of Concentration of Risk, by Risk Factor |
During the years ended December 31, 2022, 2021 and 2020, two of the Company’s customers accounted for more than 10% of the Company’s total revenues as presented below:
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Year ended December 31, |
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2022 |
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2021 |
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2020 |
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Customer A |
11 |
% |
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* |
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* |
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Customer B |
10 |
% |
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10 % |
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* less than 10%
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Assets And Liabilities Lessee |
Upon adoption, the Company recognized lease liabilities and corresponding ROU assets, adjusted for the accrued rent and remaining lease incentives received on the adoption date, as follows:
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January 1, 2022 |
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ROU assets |
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Lease liabilities |
Real Estate |
$ |
3,928 |
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$ |
5,482 |
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Cars |
50 |
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50 |
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Total operating leases |
$ |
3,978
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$ |
5,532
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