SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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9 Months Ended |
Sep. 30, 2022 |
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| 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 September 30, 2022 |
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Three months ended September 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 |
$ |
9,505 |
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$ |
(971) |
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$ |
8,534 |
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$ |
4,569 |
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$ |
(21) |
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$ |
4,548 |
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| Operating expenses: |
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| Research and development |
7,920 |
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(608) |
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7,312 |
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5,426 |
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(84) |
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5,342 |
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| Sales and marketing |
13,958 |
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(232) |
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13,726 |
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8,735 |
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(46) |
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8,689 |
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| General and administrative |
9,117 |
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(71) |
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9,046 |
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3,987 |
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(5) |
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3,982 |
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| Depreciation, amortization and impairment |
$ |
— |
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$ |
1,882 |
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$ |
1,882 |
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$ |
— |
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$ |
156 |
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$ |
156 |
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Nine months ended September 30, 2022 |
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Nine months ended September 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 |
$ |
23,782 |
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$ |
(1,971) |
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$ |
21,811 |
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$ |
12,418 |
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$ |
(59) |
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$ |
12,359 |
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| Operating expenses: |
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| Research and development |
25,031 |
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(755) |
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24,276 |
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16,932 |
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(234) |
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16,698 |
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| Sales and marketing |
38,967 |
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(570) |
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38,397 |
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23,534 |
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(168) |
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23,366 |
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| General and administrative |
30,641 |
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(185) |
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30,456 |
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10,587 |
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(26) |
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10,561 |
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| Depreciation, amortization and impairment |
$ |
— |
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$ |
3,481 |
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$ |
3,481 |
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$ |
— |
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$ |
487 |
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$ |
487 |
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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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September 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 |
$ |
39,250 |
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$ |
— |
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$ |
— |
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Liabilities: |
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| Warrants liability |
$ |
1,518 |
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$ |
— |
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$ |
6,072 |
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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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September 30, |
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December 31, |
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September 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 |
(9,390) |
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1,616 |
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3,191 |
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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 |
$ |
6,072 |
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$ |
15,462 |
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$ |
3,690 |
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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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September 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 |
4.10 |
% |
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1.24 |
% |
| Expected dividends |
— |
% |
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— |
% |
Expected term (years) |
4.2 |
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4.9 |
| Expected volatility |
80 |
% |
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55 |
% |
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| Schedules of Concentration of Risk, by Risk Factor |
Two of the Company’s customers accounted for more than 10% of the Company’s total revenues during the three months ended September 30, 2022 and one customer during the three months ended September 30, 2021.
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Three months ended September 30, |
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Nine months ended September 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 |
12 |
% |
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*) |
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10 |
% |
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*) |
Customer B |
13 |
% |
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*) |
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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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September 30, 2022 |
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(Unaudited) |
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ROU assets |
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Lease liabilities |
| Real Estate |
$ |
3,187 |
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$ |
4,156 |
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| Cars |
30 |
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27 |
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| Total operating leases |
$ |
3,217
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$ |
4,183
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September 30, 2022 |
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(Unaudited) |
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Lease liabilities |
| Current lease liabilities |
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$ |
1,904 |
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| Non-current lease liabilities |
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2,279 |
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| Total lease liabilities |
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$ |
4,183
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