SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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6 Months Ended |
Jun. 30, 2022 |
Accounting Policies [Abstract] |
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Schedule of Effect of Change in Income Statement |
The effect of the change is as follows:
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Three months ended June 30, 2022 |
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Three months ended June 30, 2021 |
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Unaudited |
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Unaudited |
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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 |
Cost of revenues |
$ |
7,933 |
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$ |
(582) |
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$ |
7,351 |
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$ |
3,987 |
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$ |
(19) |
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$ |
3,968 |
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Operating expenses: |
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Research and development |
9,782 |
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(72) |
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9,710 |
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6,209 |
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(78) |
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6,131 |
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Sales and marketing |
14,489 |
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(169) |
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14,320 |
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8,148 |
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(43) |
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8,105 |
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General and administrative |
10,058 |
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(103) |
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9,955 |
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4,209 |
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(9) |
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4,200 |
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Depreciation and amortization |
$ |
— |
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$ |
926 |
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$ |
926 |
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$ |
— |
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$ |
149 |
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$ |
149 |
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Six months ended June 30, 2022 |
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Six months ended June 30, 2021 |
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Unaudited |
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Unaudited |
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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 |
Cost of revenues |
$ |
14,277 |
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$ |
(1,000) |
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$ |
13,277 |
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$ |
7,849 |
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$ |
(38) |
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$ |
7,811 |
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Operating expenses: |
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Research and development |
17,111 |
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(147) |
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16,964 |
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11,506 |
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(150) |
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11,356 |
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Sales and marketing |
25,009 |
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(338) |
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24,671 |
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14,799 |
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(122) |
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14,677 |
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General and administrative |
21,524 |
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(114) |
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21,410 |
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6,600 |
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(21) |
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6,579 |
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Depreciation and amortization |
$ |
— |
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$ |
1,599 |
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$ |
1,599 |
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$ |
— |
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$ |
331 |
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$ |
331 |
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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:
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June 30, 2022 |
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(Unaudited) |
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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 |
$ |
29,651 |
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$ |
— |
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$ |
— |
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Liabilities: |
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Warrants liability |
$ |
696 |
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$ |
— |
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$ |
2,330 |
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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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June 30, |
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December 31, |
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June 30, |
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2022 |
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2021 |
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2021 |
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(Unaudited) |
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(Unaudited) |
Beginning of the period |
$ |
15,462 |
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$ |
499 |
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$ |
499 |
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Additions* |
— |
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18,427 |
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— |
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Change in fair value |
(13,132) |
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1,616 |
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2,728 |
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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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— |
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End of the period |
$ |
2,330 |
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$ |
15,462 |
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$ |
3,227 |
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* Additions during the year ended December 31, 2021 represent Company Warrant liability assumed in the Transaction. See Note 5 for further details.
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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 Placement Warrants were as follows:
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June 30, |
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December 31, |
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2022 |
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2021 |
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(Unaudited) |
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Risk-free interest rate |
2.98 |
% |
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1.24 |
% |
Expected dividends |
— |
% |
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— |
% |
Expected term (years) |
4.4 |
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4.9 |
Expected volatility |
75 |
% |
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55 |
% |
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Schedules of Concentration of Risk, by Risk Factor |
One of the Company’s customers accounted for more than 10% of the Company’s total revenues during the three months ended June 30, 2021.
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Three months ended June 30, |
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Six months ended June 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
Customer A |
*) |
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10 |
% |
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*) |
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*) |
*) less than 10%
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Schedule of Operating ROU Assets and Lease Liabilities |
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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(Unaudited) |
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ROU assets |
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Lease liabilities |
Real Estate |
$ |
3,878 |
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$ |
5,482 |
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Cars |
50 |
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49 |
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Total operating leases |
$ |
3,928
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$ |
5,531
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The Company has the following operating ROU assets and lease liabilities:
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June 30, 2022 |
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(Unaudited) |
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ROU assets |
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Lease liabilities |
Real Estate |
$ |
3,035 |
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$ |
4,118 |
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Cars |
34 |
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31 |
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Total operating leases |
$ |
3,069
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$ |
4,149
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June 30, 2022 |
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(Unaudited) |
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Lease liabilities |
Current lease liabilities |
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$ |
1,685 |
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Non-current lease liabilities |
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2,464 |
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Total lease liabilities |
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$ |
4,149
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