Quarterly report pursuant to Section 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.22.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Schedule of Effect of Change in Income Statement The effect of the change is as follows:

Three months ended June 30, 2022 Three months ended June 30, 2021
Unaudited Unaudited
Under previous classification Effect of change As reported Previously reported Effect of change As adjusted
Cost of revenues $ 7,933  $ (582) $ 7,351  $ 3,987  $ (19) $ 3,968 
Operating expenses:
Research and development 9,782  (72) 9,710  6,209  (78) 6,131 
Sales and marketing 14,489  (169) 14,320  8,148  (43) 8,105 
General and administrative 10,058  (103) 9,955  4,209  (9) 4,200 
Depreciation and amortization $ —  $ 926  $ 926  $ —  $ 149  $ 149 

Six months ended June 30, 2022 Six months ended June 30, 2021
Unaudited Unaudited
Under previous classification Effect of change As reported Previously reported Effect of change As adjusted
Cost of revenues $ 14,277  $ (1,000) $ 13,277  $ 7,849  $ (38) $ 7,811 
Operating expenses:
Research and development 17,111  (147) 16,964  11,506  (150) 11,356 
Sales and marketing 25,009  (338) 24,671  14,799  (122) 14,677 
General and administrative 21,524  (114) 21,410  6,600  (21) 6,579 
Depreciation and amortization $ —  $ 1,599  $ 1,599  $ —  $ 331  $ 331 
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:

June 30, 2022
(Unaudited)

Level 1
Level 2
Level 3
Assets:
Money market funds $ 29,651  $ —  $ — 
Liabilities:
Warrants liability $ 696  $ —  $ 2,330 

December 31, 2021

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

June 30,
December 31,
June 30,

2022

2021 2021
(Unaudited) (Unaudited)
Beginning of the period
$ 15,462  $ 499  $ 499 
Additions* —  18,427  — 
Change in fair value (13,132) 1,616  2,728 
Conversion of Legacy Innovid Warrants on the Closing of the Transaction —  (5,080) — 
End of the period $ 2,330  $ 15,462  $ 3,227 
* Additions during the year ended December 31, 2021 represent Company Warrant liability assumed in the Transaction. See Note 5 for further details.
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:

June 30,
December 31,

2022 2021
(Unaudited)
Risk-free interest rate
2.98  % 1.24  %
Expected dividends —  % —  %
Expected term (years)
4.4 4.9
Expected volatility 75  % 55  %
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.

Three months ended June 30,
Six months ended June 30,

2022

2021 2022

2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Customer A
*) 10  % *) *)
*) less than 10%
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:
January 1, 2022
(Unaudited)
ROU assets Lease liabilities
Real Estate $ 3,878  $ 5,482 
Cars 50  49 
Total operating leases $ 3,928  $ 5,531 
The Company has the following operating ROU assets and lease liabilities:
June 30, 2022
(Unaudited)
ROU assets Lease liabilities
Real Estate $ 3,035  $ 4,118 
Cars 34  31 
Total operating leases $ 3,069  $ 4,149 
June 30, 2022
(Unaudited)
Lease liabilities
Current lease liabilities $ 1,685 
Non-current lease liabilities 2,464 
Total lease liabilities $ 4,149