Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
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:

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
Property and equipment consist of the following:

December 31,

2021

2020
Cost:


Software development costs $ 2,594  $ — 
Computers and peripheral equipment 1,779  1,260 
Office furniture and equipment 661  633 
Leasehold improvements 2,164  2,162 

7,198  4,055 
Accumulated depreciation (2,358) (1,730)
Depreciated cost $ 4,840  $ 2,325 
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table present information about the Company’s financial instruments that are measured at fair value on a recurring basis:

December 31, 2021

Level 1
Level 2
Level 3
Assets:
Money market funds $ 4,515  $ —  $ — 
Liabilities:
Warrants liability $ 3,510  $ —  $ 15,462 

December 31, 2020

Level 1
Level 2
Level 3
Assets:
Money market funds $ 9,009  $ —  $ — 
Liabilities:
Warrants liability $ —  $ —  $ 499 
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:

December 31,

2021

2020 2019
Beginning of the year
$ 499  $ 413  389
Additions* 18,427  —  — 
Change in fair value 1,616  86  24 
Conversion of Legacy Innovid Warrants on the Closing of the Transaction (5,080) —  — 
End of the year $ 15,462  $ 499  $ 413 
* Additions during the year ended December 31, 2021 represent Company Warrant liability assumed in the Transaction. See Note 8 for further detail.
Schedule of Key Inputs for Valuation of Private Placement Warrants
The key inputs into the Black-Scholes model for the Private Placement Warrants were as follows:

Year ended December 31,
November 30,

2021 2021

Risk-free interest rate
1.24  % 1.13  %
Expected dividends —  % —  %
Expected term (years)
4.9 5
Expected volatility 55  % 49  %
Schedules of Concentration of Risk, by Risk Factor
During the years ended December 31, 2021, 2020 and 2019, two of the Company’s customers accounted for more than 10% of the Company’s total revenues as presented below:

Year ended December 31,

2021

2020 2019
Customer A
*) *) 11  %
Customer B
*) 10 % 10  %
*) less than 10%