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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Schedule of Property, Plant and Equipment
Property and equipment are stated at cost, net of accumulated depreciation. 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 improvementsThe shorter of the lease term or the useful life of the asset
Property and equipment consist of the following:
December 31,
20212020
Cost:


Software development costs$2,594 $— 
Computers and peripheral equipment1,779 1,260 
Office furniture and equipment661 633 
Leasehold improvements2,164 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,
202120202019
Beginning of the year
$499 $413 389
Additions*
18,427 — — 
Change in fair value1,616 86 24 
Conversion of Legacy Innovid Warrants on the Closing of the Transaction(5,080)— — 
End of the year$15,462 $499 $413 
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*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,
20212021
Risk-free interest rate
1.24 %1.13 %
Expected dividends— %— %
Expected term (years)
4.95
Expected volatility55 %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,
202120202019
Customer A
*)*)11 %
Customer B
*)10 %10 %
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*) less than 10%