Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

v3.22.4
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule Share Based Compensation Expenses
Stock-based compensation expense is related to awards issued to employees pursuant to the Innovid Stock Plan and the 2021 Incentive Plan, summarized as follows:
Year ended December 31,

2022 2021 2020
Cost of goods sold
 $ 1,171  $ 43  $ 11 
Research and development
 3,489  501  121 
Sales and marketing
 4,685  470  196 
General and administrative
 3,342  1,997  92 
Total
$ 12,687  $ 3,011  $ 420 
Schedule of Share Based Payment Arrangement, Option, Activity
A summary of the employees’ stock option activity under the Innovid Stock Plan and the 2021 Incentive Plan for the years ended December 31, 2022 is as follows:

 Year ended
December 31, 2022

Amount
of
options
Weighted
average
exercise
price
Weighted
average
remaining contractual term
(in years)
 Aggregate intrinsic value (in thousands)
Outstanding at beginning of year
11,122,648  $ 0.82  6.87 $ 64,818 
Transfer between employee and consultant 40,118  0.64 
Granted 2,105,258  2.10 
Granted in acquisition 949,893  0.31 
Forfeited (355,998) 1.60 
Expired (26,089) 1.37 
Exercised (3,149,387) 0.30 
Outstanding at end of year
10,686,443  $ 1.15  6.85 $ 5,923 
Exercisable options at end of year
6,687,488  $ 0.75  5.77 $ 6,409 

A summary of the consultants’ stock option activity under the Innovid Stock Plan for the year ended December 31, 2022 is as follows:

 Year ended
December 31, 2022

Amount
of
options
Weighted
average
exercise
price
Weighted
average
remaining contractual term
(in years)
 Aggregate intrinsic value (in thousands)
Outstanding at beginning of year
179,627  $ 0.31  2.34 $ 1,139 
Consultant has become employee (40,118) 0.64 
Granted —  — 
Forfeited (460) 2.81 
Expired (209) 2.81 
Exercised (69,298) 0.30 
Outstanding at end of year
69,542  $ 0.47  4.21 $ 86 
Exercisable options at end of year
64,524  $ 0.46  3.93 $ 81 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The Company estimated the fair value of each option on the date of grant using the Black-Scholes option pricing model applying the weighted-average assumptions in the following table:

Year ended December 31,

2022

2021 2020
Expected volatility
69%-71%
 65  % 79  %
Expected dividends
 —  % —  % —  %
Expected term (in years)
 4.31 6.02 6.11
Risk free interest
2.84%-3.81%
1.06%-1.11%
0.62%-0.82%
A summary of the employees’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2022 is as follows:
Number of share units
Weighted
average
grant date
fair value
Outstanding at beginning of year
 —  — 
Granted 9,329,639  5.65 
Released (96,884) 5.90 
Forfeited (1,246,382) 5.97 
Outstanding at end of year
 7,986,373  $ 5.60 
A summary of the consultants’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2022 is as follows:
Number of share units
Weighted
average
grant date
fair value
Outstanding at beginning of year
 —  — 
Granted 176,151  6.52 
Forfeited (45,883) 6.28 
Outstanding at end of year
 130,268  $ 6.60