Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||||
For the fiscal year ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from _____ to _____ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||
(Address of Principal Executive Offices, including Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ¨ | x | |||||||||
Non-accelerated filer | ¨ | Smaller reporting company | |||||||||
Emerging growth company |
Name | Age | Position | ||||||||||||
Zvika Netter | 50 | Chief Executive Officer; Director | ||||||||||||
Tanya Andreev-Kaspin | 45 | Chief Financial Officer | ||||||||||||
David Helmreich | 52 | Chief Commercial Officer | ||||||||||||
Ken Markus | 48 | Chief Operating Officer | ||||||||||||
Gilad Shany(2)(3) | 46 | Director | ||||||||||||
Brian Hughes (1) | 64 | Director | ||||||||||||
Michael DiPiano(1)(2) | 64 | Director | ||||||||||||
Rachel Lam(1)(3) | 55 | Director | ||||||||||||
Jonathan Saacks(3) | 54 | Director |
Year ended December 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(in thousands) | % of Revenue | (in thousands) | % of Revenue | ||||||||||||||||||||
Revenues | $ | 127,117 | 100.0 | % | $ | 90,291 | 100.0 | % | |||||||||||||||
Cost of revenues | 30,187 | 23.7 | % | 17,698 | 19.6 | % | |||||||||||||||||
Research and development | 31,118 | 24.5 | % | 24,299 | 26.9 | % | |||||||||||||||||
Sales and marketing | 50,266 | 39.5 | % | 32,841 | 36.4 | % | |||||||||||||||||
General and administrative | 39,144 | 30.8 | % | 20,641 | 22.9 | % | |||||||||||||||||
Depreciation, amortization and impairment | 6,143 | 4.8 | % | 661 | 0.7 | % | |||||||||||||||||
Operating loss | (29,741) | (23.4) | % | (5,849) | (6.5) | % | |||||||||||||||||
Finance expenses (income), net | (13,348) | (10.5) | % | 4,386 | 4.9 | % | |||||||||||||||||
Loss before taxes | (16,393) | (12.9) | % | (10,235) | (11.3) | % | |||||||||||||||||
Taxes on income | 2,017 | 1.6 | % | 1,237 | 1.4 | % | |||||||||||||||||
Net loss | $ | (18,410) | (14.5) | % | $ | (11,472) | (12.7) | % |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | % of Revenue | (in thousands) | % of Revenue | $ Variance | % Variance | ||||||||||||||||||||||||||||||
Cost of revenues | $ | 30,187 | 23.7 | % | $ | 17,698 | 19.6 | % | $ | 12,489 | 70.6 | % |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | % of Revenue | (in thousands) | % of Revenue | $ Variance | % Variance | ||||||||||||||||||||||||||||||
Research and development | $ | 31,118 | 24.5 | % | $ | 24,299 | 26.9 | % | $ | 6,819 | 28.1 | % |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | % of Revenue | (in thousands) | % of Revenue | $ Variance | % Variance | ||||||||||||||||||||||||||||||
Sales and marketing | $ | 50,266 | 39.5 | % | $ | 32,841 | 36.4 | % | $ | 17,425 | 53.1 | % |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | % of Revenue | (in thousands) | % of Revenue | $ Variance | % Variance | ||||||||||||||||||||||||||||||
General and administrative | $ | 39,144 | 30.8 | % | $ | 20,641 | 22.9 | % | $ | 18,503 | 89.6 | % |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | % of Revenue | (in thousands) | % of Revenue | $ Variance | % Variance | ||||||||||||||||||||||||||||||
Depreciation, amortization and impairment | $ | 6,143 | 4.8 | % | $ | 661 | 0.7 | % | $ | 5,482 | 829.4 | % |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | % of Revenue | (in thousands) | % of Revenue | $ Variance | % Variance | ||||||||||||||||||||||||||||||
Finance expenses (income), net | $ | (13,348) | (10.5) | % | $ | 4,386 | 4.9 | % | $ | (17,734) | (404.3) | % |
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | % of Revenue | (in thousands) | % of Revenue | $ Variance | % Variance | ||||||||||||||||||||||||||||||
Taxes on income | $ | 2,017 | 1.6 | % | $ | 1,237 | 1.4 | % | $ | 780 | 63.1 | % |
Year ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash used in operating activities | $ | (11,561) | $ | (2,421) | |||||||
Net cash used in investing activities | (119,426) | (3,687) | |||||||||
Net cash provided by financing activities | 11,800 | 147,174 | |||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | $ | (119,187) | $ | 141,066 |
Year ended December 31, | ||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2020 | |||||||||||||||||
Net loss | $ | (18,410) | $ | (11,472) | $ | (812) | ||||||||||||||
Net loss margin | (14.5) | % | (12.7) | % | (1.2) | % | ||||||||||||||
Depreciation, amortization and impairment (a) | 6,143 | 661 | 730 | |||||||||||||||||
Stock-based compensation | 13,878 | 3,273 | 584 | |||||||||||||||||
Finance expense (income), net (b) | (13,348) | 4,386 | 734 | |||||||||||||||||
Transaction related expenses (c) | 393 | 7,200 | 153 | |||||||||||||||||
Acquisition related expenses (d) | 4,971 | 161 | — | |||||||||||||||||
Retention bonus expenses (e) | 3,152 | — | — | |||||||||||||||||
Legal claims | 1,506 | — | — | |||||||||||||||||
Other (f) | 923 | — | — | |||||||||||||||||
Taxes on income | 2,017 | 1,237 | 1,200 | |||||||||||||||||
Adjusted EBITDA | $ | 1,225 | $ | 5,446 | $ | 2,589 | ||||||||||||||
Adjusted EBITDA margin | 1.0 | % | 6.0 | % | 3.8 | % |
We have served as the Company’s auditor since 2007. | |||||
March 3, 2023 | A Member of Ernst & Young Global |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term bank deposit | |||||||||||
Trade receivables, net of reserves of $ | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Long-term deposit | |||||||||||
Long-term restricted deposits | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Operating lease right of use asset | |||||||||||
Intangible assets | |||||||||||
Other non-current assets | |||||||||||
Total non-current assets | $ | $ | |||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDER’ EQUITY | |||||||||||
Trade payables | |||||||||||
Employee and payroll accruals | |||||||||||
Current portion of long-term debt | |||||||||||
Lease liabilities - current portion | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Lease liabilities - non-current portion | |||||||||||
Other non-current liabilities | |||||||||||
Warrants liability | |||||||||||
Total non-current liabilities | |||||||||||
TOTAL LIABILITIES | |||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES (Note 13) | |||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Common stock of $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Revenues | $ | $ | $ | ||||||||||||||
Cost of revenues (1) | |||||||||||||||||
Research and development (1) | |||||||||||||||||
Sales and marketing (1) | |||||||||||||||||
General and administrative (1) | |||||||||||||||||
Depreciation, amortization and impairment | |||||||||||||||||
Operating (loss) profit | ( | ( | |||||||||||||||
Finance expenses (income), net | ( | ||||||||||||||||
(Loss) profit before taxes | ( | ( | |||||||||||||||
Taxes on income | |||||||||||||||||
Net loss | ( | ( | ( | ||||||||||||||
Accretion of preferred stock to redemption value | ( | ( | |||||||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | |||||||||||
Net loss per stock attributable to common stockholders (2) – | |||||||||||||||||
Basic and diluted | $ | ( | $ | ( | $ | ( | |||||||||||
Weighted-average number of stocks used in computing net loss per stock attributable to common stockholders (2) – | |||||||||||||||||
Basic and diluted |
Temporary equity | Common stocks | Treasury stocks | Additional paid-in capital | Accumulated deficit | Total stockholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||
Accretion of preferred stocks to redemption value | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Capital contribution | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | * | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||
Accretion of preferred stocks to redemption value | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock into common stock | ( | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Reverse recapitalization, net | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Legacy Innovid Warrants | — | — | * | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Warrant exercised** | — | — | * | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | * | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock and equity awards issued for acquisition of TVS | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised and RSUs vested | — | — | * | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | |||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||||
Depreciation, amortization and impairment | |||||||||||||||||
Stock-based compensation | |||||||||||||||||
Loss on sale of property and equipment | |||||||||||||||||
Change in fair value of warrants | ( | ||||||||||||||||
Founders notes forgiven | |||||||||||||||||
Transaction costs allocated to warrants | |||||||||||||||||
Non-cash interest expense | |||||||||||||||||
Changes in operating assets and liabilities | |||||||||||||||||
Increase in trade receivables, net | ( | ( | ( | ||||||||||||||
(Increase)/ decrease in prepaid expenses and other assets | ( | ||||||||||||||||
Decrease in operating lease right of use assets | |||||||||||||||||
Increase/ (decrease) in trade payables | ( | ( | |||||||||||||||
Increase in employees and payroll accruals | |||||||||||||||||
Decrease in operating lease liabilities | ( | ||||||||||||||||
Increase in accrued expenses and other liabilities | |||||||||||||||||
Net cash used in operating activities | $ | ( | $ | ( | $ | ( | |||||||||||
Cash flows from investing activities: | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | $ | ( | $ | $ | |||||||||||||
Internal use software capitalization | ( | ( | |||||||||||||||
Purchase of property and equipment | ( | ( | ( | ||||||||||||||
Founders’ note receivable | ( | ||||||||||||||||
Proceeds from sale of property and equipment | |||||||||||||||||
Change in short-term bank deposits | ( | ||||||||||||||||
Other deposits | ( | ||||||||||||||||
Net cash used in investing activities | $ | ( | $ | ( | $ | ( | |||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from reverse recapitalization, net* | $ | $ | $ | ||||||||||||||
Capital contributions | |||||||||||||||||
Proceeds from loans | |||||||||||||||||
Loan repayment | ( | ( | |||||||||||||||
Repayment of acquisition liability | ( | ( | |||||||||||||||
Payment of SPAC merger transaction costs | ( | ||||||||||||||||
Proceeds from exercise of options | |||||||||||||||||
Net cash provided by financing activities | $ | $ | $ | ||||||||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | ( | ||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year | |||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the year | $ | $ | $ | ||||||||||||||
Supplemental disclosure of cash flows activities: | |||||||||||||||||
(1) Cash paid during the year for: | |||||||||||||||||
Income taxes paid, net of tax refunds | $ | $ | $ | ||||||||||||||
Interest | $ | $ | $ | ||||||||||||||
(2) Non-cash transactions: | |||||||||||||||||
Conversion of redeemable convertible preferred stock into common stock | $ | $ | $ | ||||||||||||||
Conversion of Legacy Innovid Warrants | $ | $ | $ | ||||||||||||||
Accrued acquisition liability | $ | $ | $ | ||||||||||||||
Accretion of preferred stocks to redemption value | $ | $ | $ | ||||||||||||||
Accrued transaction cost, not yet paid | $ | $ | $ | ||||||||||||||
Business combination consideration paid in stock | $ | $ | $ | ||||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Long-term restricted deposits | |||||||||||||||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ | $ | $ | ||||||||||||||
Year ended December 31, 2022 | Year ended December 31, 2021 | Year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Under previous classification | Effect of change | As reported | Previously reported | Effect of change | As adjusted | Previously reported | Effect of change | As adjusted | |||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues | $ | $ | ( | $ | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, amortization and impairment | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Years | |||||
Computers and peripheral equipment | |||||
Office furniture and equipment | |||||
Lease improvements | The shorter of the lease term or the useful life of the asset | ||||
Internal-use software |
December 31, 2022 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | $ | $ | ||||||||||||||
Certificates of deposit | |||||||||||||||||
Liabilities: | |||||||||||||||||
$ | $ | $ |
December 31, 2021 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||
$ | $ | $ |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Beginning of the year | $ | $ | |||||||||
Additions* | |||||||||||
Change in fair value | ( | ||||||||||
Conversion of Legacy Innovid Warrants on the Closing of the Transaction | ( | ||||||||||
End of the year | $ | $ | |||||||||
December 31, | December 31, | |||||||||||||
2022 | 2021 | |||||||||||||
Risk-free interest rate | % | % | ||||||||||||
Expected dividends | % | % | ||||||||||||
Expected term (years) | ||||||||||||||
Expected volatility | % | % |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Customer A | % | * | * | ||||||||||||||
Customer B | % | * |
January 1, 2022 | |||||||||||
ROU assets | Lease liabilities | ||||||||||
Real Estate | $ | $ | |||||||||
Cars | |||||||||||
Total operating leases | $ | $ |
Number of shares | |||||
Legacy Innovid common stock of January 1, 2021 | |||||
Warrant exercised | |||||
Stock option exercised | |||||
Conversion of redeemable convertible preferred stock into common stock | |||||
Conversion of Legacy Innovid Warrants | |||||
Exchanged into Innovid Corp. common stock on November 30, 2021 |
Total value | |||||
Cash - ION trust account and cash, net of redemptions | $ | ||||
Cash - PIPE Investment, net of Secondary Sale Amount of $ | |||||
Less: Transaction costs paid | ( | ||||
Less: Deferred underwriting fee paid | ( | ||||
Proceeds from reverse recapitalization, net | |||||
Less: Accrued transaction costs not yet paid* | ( | ||||
Less: Company Warrant assumed as part of the Transaction | ( | ||||
Plus: Transaction costs allocated to Company Warrant | |||||
Reverse recapitalization, net | $ |
Total value | ||||||||
Cash and cash equivalents | $ | |||||||
Accounts receivables | ||||||||
Other current assets | ||||||||
Property and equipment | ||||||||
Total tangible assets | ||||||||
Technology | ||||||||
Customer relationships | ||||||||
Trade name | ||||||||
Goodwill | ||||||||
Total assets acquired | ||||||||
Less: Deferred tax liabilities | ( | |||||||
Less: Other assumed liabilities | ( | |||||||
Net assets acquired | $ |
Twelve months ended December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
Revenues | $ | $ | ||||||||||||
Net loss | ( | ( |
December 31, 2022 | ||||||||||||||
Estimated Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||
Customer relationships | $ | $ | ( | $ | ||||||||||
Acquired technology | ( | |||||||||||||
Trade name | ( | |||||||||||||
Total | $ | $ | ( | $ |
Fiscal Year | Amortization Expense | ||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Prepaid expenses | $ | $ | |||||||||
Deposits | |||||||||||
Government authorities | |||||||||||
Other current assets | |||||||||||
Total | $ | $ | |||||||||
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Cost: | |||||||||||
Software development costs | $ | $ | |||||||||
Computers and peripheral equipment | |||||||||||
Office furniture and equipment | |||||||||||
Leasehold improvements | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Depreciated cost | $ | $ |
December 31, 2022 | |||||||||||
ROU assets | Lease liabilities | ||||||||||
Real Estate | $ | $ | |||||||||
Cars | |||||||||||
Total operating leases | $ | $ |
December 31, 2022 | ||||||||
Lease liabilities | ||||||||
Current lease liabilities | $ | |||||||
Non-current lease liabilities | ||||||||
Total lease liabilities | $ |
Year ended December 31, 2022 | ||||||||
Operating lease cost | $ | |||||||
Short term lease cost | ||||||||
Variable lease cost | ||||||||
Total lease cost | $ |
Year ended December 31, 2022 | ||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | |||||||
Right of use assets obtained in exchange for operating lease liabilities upon lease modification | $ |
December 31, 2022 | |||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
Total undiscounted lease payments | $ | ||||
Less: Interest | ( | ||||
Total lease liabilities - operating | $ |
Year ended December 31, 2021 | Rental of premises | Lease of motor vehicles | |||||||||
2022 | $ | $ | |||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
Total | $ | $ |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Accrued expenses | $ | $ | |||||||||
Tax payables | |||||||||||
Deferred revenue | |||||||||||
Accrued lease liability, current portion | |||||||||||
Other current liabilities | |||||||||||
Total | $ | $ |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
$ | $ | ||||||||||
Uncertain tax position | |||||||||||
Deferred tax liability | |||||||||||
Other non-current liabilities | |||||||||||
Total | $ | $ |
Authorized | Issued | Outstanding | |||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Stocks of $ | |||||||||||||||||||||||||||||||||||
Common stocks |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cost of goods sold | $ | $ | $ | ||||||||||||||
Research and development | |||||||||||||||||
Sales and marketing | |||||||||||||||||
General and administrative | |||||||||||||||||
Total | $ | $ | $ |
Year ended December 31, 2022 | |||||||||||||||||||||||
Amount of options | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value (in thousands) | ||||||||||||||||||||
Outstanding at beginning of year | $ | $ | |||||||||||||||||||||
Transfer between employee and consultant | |||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Granted in acquisition | |||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Expired | ( | ||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Outstanding at end of year | $ | $ | |||||||||||||||||||||
Exercisable options at end of year | $ | $ |
Year ended December 31, 2022 | |||||||||||||||||||||||
Amount of options | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value (in thousands) | ||||||||||||||||||||
Outstanding at beginning of year | $ | $ | |||||||||||||||||||||
Consultant has become employee | ( | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Expired | ( | ||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Outstanding at end of year | $ | $ | |||||||||||||||||||||
Exercisable options at end of year | $ | $ |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Expected volatility | % | % | |||||||||||||||
Expected dividends | % | % | % | ||||||||||||||
Expected term (in years) | |||||||||||||||||
Risk free interest |
Number of share units | Weighted average grant date fair value | ||||||||||
Outstanding at beginning of year | |||||||||||
Granted | |||||||||||
Released | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding at end of year | $ | ||||||||||
Number of share units | Weighted average grant date fair value | ||||||||||
Outstanding at beginning of year | |||||||||||
Granted | |||||||||||
Forfeited | ( | ||||||||||
Outstanding at end of year | $ | ||||||||||
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Domestic | $ | ( | $ | ( | $ | ||||||||||||
Foreign | ( | ( | |||||||||||||||
Total income (loss) before income taxes | $ | ( | $ | ( | $ |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Current income tax provision (benefit): | |||||||||||||||||
Domestic | $ | $ | ( | $ | |||||||||||||
Foreign | |||||||||||||||||
Total current income tax (benefit) provision | $ | $ | $ |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Deferred income tax provision (benefit): | |||||||||||||||||
Domestic | $ | $ | $ | ||||||||||||||
Foreign | ( | ||||||||||||||||
Total deferred income tax (benefit) provision | $ | ( | $ | $ | |||||||||||||
Total income tax (benefit) provision | $ | $ | $ |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Total income (loss) before income taxes | $ | ( | $ | ( | $ | ||||||||||||
US statutory rate | % | % | % | ||||||||||||||
Income taxed computed at U. S. federal statutory rate | $ | ( | $ | ( | $ | ||||||||||||
Foreign rate differential | ( | ( | |||||||||||||||
State and local income taxes, net | ( | ( | |||||||||||||||
Other non-deductible items | ( | ||||||||||||||||
GILTI | |||||||||||||||||
Change in valuation allowance | |||||||||||||||||
Tax credits | ( | ( | ( | ||||||||||||||
Changes in uncertain tax positions | |||||||||||||||||
Transaction costs | |||||||||||||||||
Warrants - MTM | ( | ( | |||||||||||||||
Other | |||||||||||||||||
Total income tax provision | $ | $ | $ | ||||||||||||||
Effective income tax rate | ( | % | ( | % | % |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Deferred tax assets | |||||||||||
Loss carryforwards | $ | $ | |||||||||
Tax credits | |||||||||||
Interest limitation carryforwards | |||||||||||
R&D capitalization costs | |||||||||||
Accrued expenses | |||||||||||
Share-based compensation | |||||||||||
Fixed assets | |||||||||||
Lease liabilities | |||||||||||
Other | |||||||||||
Total deferred tax assets, gross | |||||||||||
Valuation allowance | ( | ( | |||||||||
Total deferred tax assets, net | $ | $ | |||||||||
Deferred tax liabilities | |||||||||||
Intangibles | $ | ( | $ | ||||||||
Right-of-use asset | ( | ||||||||||
Other | ( | ||||||||||
Total deferred tax liability, net | $ | ( | $ | ||||||||
Total deferred tax asset (liability) | $ | ( | $ |
Year ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Domestic NOLs (federal) | $ | $ | |||||||||
Domestic NOLs (state and local) | |||||||||||
Foreign NOLs | |||||||||||
Total | $ | $ |
December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Gross unrecognized tax benefits as of January 1 | $ | $ | $ | ||||||||||||||
Increases - prior year tax positions | |||||||||||||||||
Decreases - prior year tax positions | ( | ( | |||||||||||||||
Increases - current year tax positions | |||||||||||||||||
Position expiration | ( | ||||||||||||||||
Gross unrecognized tax benefits as of December 31 | $ | $ | $ |
December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
US | $ | $ | $ | ||||||||||||||
Canada | |||||||||||||||||
APAC | |||||||||||||||||
EMEA | |||||||||||||||||
LATAM | |||||||||||||||||
Total revenues | $ | $ | $ |
Year ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Israel | $ | $ | |||||||||
US | |||||||||||
Rest of the World | |||||||||||
Total | $ | $ |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | |||||||||||
Accretion of preferred stocks to redemption value | ( | ( | |||||||||||||||
Net loss attributable to common stockholders - basic and diluted | $ | ( | $ | ( | $ | ( | |||||||||||
Denominator: | |||||||||||||||||
Weighted-average number of stocks used in computing net loss per stock attributable to common stockholders | |||||||||||||||||
Net loss per stock attributable to common stockholders – basic and diluted | $ | ( | $ | ( | $ | ( |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Preferred stocks | |||||||||||||||||
Options outstanding | |||||||||||||||||
RSUs outstanding | |||||||||||||||||
Warrants outstanding |
Exhibit Number | Description | ||||||||||
2.1 | |||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
4.1 | |||||||||||
4.2 | |||||||||||
4.3 | |||||||||||
4.4 | |||||||||||
10.1 | |||||||||||
10.2 | |||||||||||
10.3 | |||||||||||
10.4 | |||||||||||
10.5 | |||||||||||
10.6 | |||||||||||
10.7 | |||||||||||
10.8# | |||||||||||
10.9 | |||||||||||
10.10 |
10.11 | |||||||||||
10.12 | |||||||||||
10.13 | |||||||||||
10.14# | |||||||||||
10.15# | |||||||||||
10.16# | |||||||||||
10.17* | |||||||||||
10.18* | |||||||||||
10.19* | |||||||||||
10.20* | |||||||||||
21.1* | |||||||||||
23.1* | |||||||||||
31.1* | |||||||||||
31.2* | |||||||||||
32.1** | |||||||||||
32.2** | |||||||||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||||||||
* | Filed herewith. | ||||||||||
** | Furnished herewith. | ||||||||||
# | Indicates management contract or compensatory plan. |
Innovid Corp. | |||||
By: | /s/ Zvika Netter | ||||
Name: Zvika Netter | |||||
Title: Chief Executive Officer | |||||
By: | /s/ Tanya Andreev-Kaspin | ||||
Name: Tanya Andreev-Kaspin | |||||
Title: Chief Financial Officer |
Signature | Title | Date | |||||||||
/s/ Zvika Netter | Chief Executive Officer and Director (Principal Executive Officer) | March 3, 2023 | |||||||||
Zvika Netter | |||||||||||
/s/ Tanya Andreev-Kaspin | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | March 3, 2023 | |||||||||
Tanya Andreev-Kaspin | |||||||||||
/s/ Gilad Shany | Director | March 3, 2023 | |||||||||
Gilad Shany | |||||||||||
/s/ Brian Hughes | Director | March 3, 2023 | |||||||||
Brian Hughes | |||||||||||
/s/ Michael DiPiano | Director | March 3, 2023 | |||||||||
Michael DiPiano | |||||||||||
/s/ Rachel Lam | Director | March 3, 2023 | |||||||||
Rachel Lam | |||||||||||
/s/ Jonathan Saacks | Director | March 3, 2023 | |||||||||
Jonathan Saacks |
INNOVID CORP. 2021 OMNIBUS INCENTIVE PLAN |
Participant: | |||||
Grant Date: | |||||
Exercise Price per Share: | |||||
Shares Subject to the Option: | |||||
Final Expiration Date: | |||||
Vesting Commencement Date: | |||||
Vesting Schedule: | |||||
Type of Option | |||||
INNOVID CORP. | PARTICIPANT | ||||||||||
By: | |||||||||||
Name: | |||||||||||
Title: |
INNOVID CORP. 2021 OMNIBUS INCENTIVE PLAN |
Participant: | |||||
Grant Date: | |||||
Number of RSUs: | |||||
Vesting Commencement Date: | |||||
Vesting Schedule: | |||||
INNOVID CORP. | PARTICIPANT | ||||||||||
By: | |||||||||||
Name: | |||||||||||
Title: |
Participant Name | Title | Severance Multiple | Benefits Continuation Period (# of months) | ||||||||
Zvika Netter | Chief Executive Officer | 1.0x | 12 | ||||||||
Tanya Andreev-Kaspin | Chief Financial Officer | 0.5x | 6 | ||||||||
Tim Braz | Executive Vice President, Global Sales | 0.5x | 6 | ||||||||
Guy Kuperman | Chief Strategy Officer | 0.5x | 6 | ||||||||
Dale Older | Chief Product Officer | 0.5x | 6 | ||||||||
Ken Markus | Chief Operating Officer | 0.5x | 6 | ||||||||
Tal Chalozin | Chief Technology Officer | 0.5x | 6 | ||||||||
Liel Golan | Executive Vice President, Human Resources | 0.5x | 6 | ||||||||
Yuval Pemper | Chief Engineering Officer | 0.5x | 6 | ||||||||
Michal Livny | Executive Vice President, People Operations, EMEA & APAC | 0.5x | 6 | ||||||||
Stephen Cook | General Counsel | 0.5x | 6 | ||||||||
David Helmreich | Chief Commercial Officer | 0.5x | 6 |
INNOVID, INC. | |||||
By:___________________________________ | |||||
Printed Name:__________________________ | |||||
Title:__________________________________ | |||||
Date:_________________________________ |
Participant Name | Title | Severance Multiple | Continuation of Benefits Period (# of months) | ||||||||
Zvika Netter | Chief Executive Officer | 1.0x | 12 | ||||||||
Tanya Andreev-Kaspin | Chief Financial Officer | 0.5x | 6 | ||||||||
Tim Braz | Executive Vice President, Global Sales | 0.5x | 6 | ||||||||
Guy Kuperman | Chief Strategy Officer | 0.5x | 6 | ||||||||
Dale Older | Chief Product Officer | 0.5x | 6 | ||||||||
Ken Markus | Chief Operating Officer | 0.5x | 6 | ||||||||
Tal Chalozin | Chief Technology Officer | 0.5x | 6 | ||||||||
Liel Golan | Executive Vice President, Human Resources | 0.5x | 6 | ||||||||
Yuval Pemper | Chief Engineering Officer | 0.5x | 6 | ||||||||
Michal Livny | Executive Vice President, People Operations, EMEA & APAC | 0.5x | 6 | ||||||||
Stephen Cook | General Counsel | 0.5x | 6 | ||||||||
David Helmreich | Chief Commercial Officer | 0.5x | 6 |
INNOVID, INC. | |||||
By:___________________________________ | |||||
Printed Name:__________________________ | |||||
Title:__________________________________ | |||||
Date:_________________________________ |
Name | Jurisdiction of Incorporation | ||||
Innovid LLC | Delaware | ||||
TV Squared Inc | Delaware | ||||
TV Squared Limited | United Kingdom | ||||
TV Squared GmbH | Germany | ||||
Innovid Holdings LLC | Delaware | ||||
Innovid AU Pty Ltd | Australia | ||||
Innovid EU Limited | United Kingdom | ||||
Innovid Media Ltd. | Israel | ||||
Innovid Argentina SRL | Argentina | ||||
1. | I have reviewed this Annual Report on Form 10-K of Innovid Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Zvika Netter | ||
Zvika Netter Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of Innovid Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Tanya Andreev-Kaspin | ||
Tanya Andreev-Kaspin | ||
Chief Financial Officer |
Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 1281 |
Auditor Location | Tel-Aviv, Israel |
Auditor Name | KOST FORER GABBAY & KASIERER |
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful receivables | $ 65 | $ 81 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 133,882,414 | 119,017,380 |
Common stock, shares outstanding (in shares) | 133,882,414 | 119,017,380 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) |
Dec. 31, 2022 |
Nov. 30, 2021 |
---|---|---|
Income Statement [Abstract] | ||
Exchange ratio | 1.337 | 1.337 |
STATEMENTS OF CHANGES IN TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands |
Total |
Common stocks |
Treasury stocks |
Additional paid-in capital |
Accumulated deficit |
||
---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2019 | 73,690,340 | ||||||
Beginning balance at Dec. 31, 2019 | $ 79,700 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Accretion of preferred stocks to redemption value | $ 7,297 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 73,690,340 | ||||||
Ending balance at Dec. 31, 2020 | $ 86,997 | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 15,969,260 | ||||||
Balance at Dec. 31, 2019 | (42,787) | $ 2 | $ (1,629) | $ 3,058 | $ (44,218) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 1,914,328 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accretion of preferred stocks to redemption value | (7,297) | (4,214) | (3,083) | ||||
Capital contribution | 504 | 504 | |||||
Stock-based compensation | 584 | 584 | |||||
Stock options exercised (in shares) | 306,349 | ||||||
Stock options exercised | 78 | 78 | |||||
Net loss | (812) | (812) | |||||
Ending balance (in shares) at Dec. 31, 2020 | 16,275,609 | ||||||
Balance at Dec. 31, 2020 | (49,730) | $ 2 | $ (1,629) | 10 | (48,113) | ||
Ending balance (in shares) at Dec. 31, 2020 | 1,914,328 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Accretion of preferred stocks to redemption value | $ 77,063 | ||||||
Conversion of redeemable convertible preferred stock into common stock (in shares) | (73,690,340) | ||||||
Conversion of redeemable convertible preferred stock into common stock | $ (164,060) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | ||||||
Ending balance at Dec. 31, 2021 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accretion of preferred stocks to redemption value | (77,063) | (4,172) | (72,891) | ||||
Conversion of redeemable convertible preferred stock into common stock (in shares) | 73,690,340 | ||||||
Conversion of redeemable convertible preferred stock into common stock | 164,060 | $ 7 | 164,053 | ||||
Reverse recapitalization, net (in shares) | 25,154,340 | (1,914,328) | |||||
Reverse recapitalization, net | 126,026 | $ 3 | $ 1,629 | 124,394 | |||
Conversion of Legacy Innovid warrants ( in shares) | 507,994 | ||||||
Conversion of Legacy Innovid Warrants | 5,080 | 5,080 | |||||
Warrant exercised (in shares) | [1] | 132,392 | |||||
Stock-based compensation | 3,273 | 3,273 | |||||
Stock options exercised (in shares) | 3,256,705 | ||||||
Stock options exercised | 1,081 | 1,081 | |||||
Net loss | $ (11,472) | (11,472) | |||||
Ending balance (in shares) at Dec. 31, 2021 | 119,017,380 | 119,017,380 | |||||
Balance at Dec. 31, 2021 | $ 161,255 | $ 12 | $ 0 | 293,719 | (132,476) | ||
Ending balance (in shares) at Dec. 31, 2021 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock, shares issued (in shares) | 119,017,380 | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | ||||||
Ending balance at Dec. 31, 2022 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock Issued During Period, Shares, Acquisitions (in shares) | 11,549,465 | ||||||
Common stock and equity awards issued for acquisition of TVS | 47,152 | $ 1 | 47,151 | ||||
Stock-based compensation | 14,945 | 14,945 | |||||
Stock options exercised and RSUs vested (in shares) | 3,315,569 | ||||||
Stock options exercised and RSUs vested | 986 | 986 | |||||
Net loss | $ (18,410) | (18,410) | |||||
Ending balance (in shares) at Dec. 31, 2022 | 133,882,414 | ||||||
Balance at Dec. 31, 2022 | $ 205,928 | $ 13 | $ 0 | $ 356,801 | $ (150,886) | ||
Ending balance (in shares) at Dec. 31, 2022 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock, shares issued (in shares) | 133,882,414 | ||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
Cash flows from operating activities: | |||||
Net loss | $ (18,410) | $ (11,472) | $ (812) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation, amortization and impairment | 6,143 | 661 | 730 | ||
Stock-based compensation | 13,781 | 3,273 | 584 | ||
Loss on sale of property and equipment | 0 | 0 | 127 | ||
Change in fair value of warrants | (14,671) | 762 | 86 | ||
Founders notes forgiven | 0 | 459 | 0 | ||
Transaction costs allocated to warrants | 0 | 2,750 | 0 | ||
Non-cash interest expense | 0 | 0 | 22 | ||
Changes in operating assets and liabilities | |||||
Increase in trade receivables, net | (4,045) | (618) | (8,372) | ||
(Increase)/ decrease in prepaid expenses and other assets | 755 | (1,823) | 78 | ||
Decrease in operating lease right of use assets | 1,831 | 0 | 0 | ||
Increase/ (decrease) in trade payables | (622) | 1,500 | (545) | ||
Increase in employees and payroll accruals | 1,710 | 1,236 | 1,914 | ||
Decrease in operating lease liabilities | (2,335) | 0 | 0 | ||
Increase in accrued expenses and other liabilities | 4,302 | 851 | 2,029 | ||
Net cash used in operating activities | (11,561) | (2,421) | (4,159) | ||
Cash flows from investing activities: | |||||
Acquisitions of businesses, net of cash acquired | (99,097) | 0 | 0 | ||
Internal use software capitalization | (9,961) | (2,594) | 0 | ||
Purchase of property and equipment | (488) | (549) | (1,030) | ||
Founders’ note receivable | 0 | (459) | 0 | ||
Proceeds from sale of property and equipment | 0 | 0 | 6 | ||
Change in short-term bank deposits | (10,000) | 0 | 0 | ||
Other deposits | 120 | (85) | 76 | ||
Net cash used in investing activities | (119,426) | (3,687) | (948) | ||
Cash flows from financing activities: | |||||
Proceeds from reverse recapitalization, net | [1] | 0 | 149,252 | 0 | |
Capital contributions | 0 | 0 | 504 | ||
Proceeds from loans | 14,000 | 0 | 15,516 | ||
Loan repayment | 0 | (3,033) | (6,504) | ||
Repayment of acquisition liability | 0 | (126) | (592) | ||
Payment of SPAC merger transaction costs | (3,185) | 0 | 0 | ||
Proceeds from exercise of options | 985 | 1,081 | 78 | ||
Net cash provided by financing activities | 11,800 | 147,174 | 9,002 | ||
(Decrease) increase in cash, cash equivalents and restricted cash | (119,187) | 141,066 | 3,895 | ||
Cash, cash equivalents and restricted cash at the beginning of the year | 157,158 | 16,092 | 12,197 | ||
Cash, cash equivalents and restricted cash at the end of the year | 37,971 | 157,158 | 16,092 | ||
Supplemental disclosure of cash flows activities: | |||||
Income taxes paid, net of tax refunds | 785 | 535 | 421 | ||
Interest | 675 | 259 | 272 | ||
Non-cash transactions | |||||
Conversion of redeemable convertible preferred stock into common stock | 0 | 164,060 | 0 | ||
Conversion of Legacy Innovid Warrants | 0 | 5,080 | 0 | ||
Accrued acquisition liability | 0 | 0 | 126 | ||
Accretion of preferred stocks to redemption value | 0 | 77,063 | 7,297 | ||
Accrued transaction cost, not yet paid | 0 | 3,185 | 0 | ||
Business combination consideration paid in stock | 47,152 | 0 | 0 | ||
Reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position | |||||
Cash and cash equivalents | 37,541 | 156,696 | 15,645 | ||
Long-term restricted deposits | 430 | 462 | 447 | ||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 37,971 | $ 157,158 | $ 16,092 | ||
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DESCRIPTION OF BUSINESS |
12 Months Ended |
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Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Innovid Corp. together with its consolidated subsidiaries, the “Company” or “Innovid”, is a leading independent software platform that provides ad serving and creative services for the creation, delivery, and measurement of TV ads across connected TV (“CTV”), mobile TV and desktop TV environments to advertisers, publishers and media agencies. Innovid Corp. was originally incorporated as ION Acquisition Corp. 2 Ltd. (“ION”), a special purpose acquisition company, on November 23, 2020. On November 30, 2021, ION and Innovid Inc. closed the mergers as described below (the “Transaction”). Through several merges and name changes Innovid Corp. was established and continues the operations of Innovid Inc. On November 30, 2021, ION consummated a series of merger transactions, whereby it acquired the business of Innovid Inc. Immediately following these mergers, ION changed its name to “Innovid Corp.” In addition, ION entered into certain subscription agreements (“PIPE Investment”). Further, in connection with the closing of the Transaction, PIPE investors purchased equity securities of Innovid Inc. stockholders (the “Secondary Sale Transaction”) for an aggregate purchase price of $68,855 (the “Secondary Sale Amount”). See Note 3, Transaction for further details. On February 28, 2022, the Company completed the acquisition of all outstanding shares of TVSquared (“TVS”), an independent global measurement and attribution platform for converged TV and a private company limited by shares incorporated under the laws of the Scotland. The Company acquired all of the equity of TVSquared for an aggregate amount of $100,000 in cash, 11,549,465 shares of the Company common stock at fair value of $3.80 per share, and the issuance of 949,893 fully vested stock options of the Company at a weighted average fair value of $3.49, subject to certain adjustments as defined in the Stock Purchase Agreement. See Note 4, Acquisition for further details. Innovid Corp.’s common stock and warrants commenced trading on the NYSE under the symbols “CTV” and “CTV.WS,” respectively, on December 1, 2021.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for annual financial information and the instructions to Form 10-K and Article 10 of Regulation S-X. The accompanying Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries; all intercompany activity and balances have been eliminated. The Consolidated Financial Statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of the consolidated balance sheets of the Company as of December 31, 2022 and 2021 and the consolidated results of operations and cash flows for the years ended December 31, 2022, 2021 and 2020. Prior Period Reclassification During the second quarter of 2022, we presented depreciation, amortization and impairment expenses as a separate line item on our consolidated statements of operations and all prior periods have been adjusted. Depreciation, amortization and impairment expenses were previously included in cost of sales and other operating expenses depending on the underlying asset’s function. Additionally, we no longer present gross profit as a subtotal on our consolidated statements of operations. The reclassification is to better reflect the financial performance of transactions with customers as our business has evolved and reflects a better representation of our current operations, which include those of our most recent acquisition. The change provides more clarity about changes in cost of revenue and other operating expenses exclusive of depreciation, amortization and impairment. In accordance with US GAAP, all periods presented below have been retrospectively adjusted to reflect the reclassification of cost of revenue and other operating expenses exclusive of depreciation and amortization. There was no net impact to loss from operations, net loss attributable to common stockholders or net loss per stock for any periods presented. The consolidated balance sheets, statements of changes in temporary equity and stockholders’ equity, and the consolidated statements of cash flows are not affected by this reclassification. The effect of the change is as follows:
Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company has considered the impact of these factors on its estimates and assumptions and determined that there were no material adverse impacts on the consolidated financial statements for the periods ended December 31, 2022, 2021, and 2020. As events continue to evolve and additional information becomes available, the Company’s estimates and assumptions may change materially in future periods. Accounting Policies Functional currency A majority of the Company’s revenues are generated in US dollars. In addition, a substantial portion of the Company’s costs are incurred in US dollars. The Company’s management believes that the US dollar is the currency of the primary economic environment in which the Company and each of its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the US dollar. Accordingly, accounts maintained in currencies other than the US dollar are re-measured into US dollars. All translation gains and losses resulting from the re-measurement of monetary assets and liabilities that are not denominated in the functional currency are recorded in Financial expenses, net on the consolidated statements of operations. Cash and cash equivalents Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. Short-term bank deposits The Company utilizes short-term deposits in order to maximize the use of cash on hand. As of December 31, 2022 we had deposits of $10,000 with original maturities greater than 90 days at 4.1% interest. These deposits are expected to mature within no more than 180 days with an interest rate of 4.1%. Restricted deposits and restricted cash Restricted deposits presented in Prepaid expenses and other current assets and in Long-term restricted deposits are deposits used as security for the Company’s credit cards and for the rental of premises. As of December 31, 2022 and 2021, the Company’s restricted deposits are denominated in New Israeli Shekels (“NIS”) and bore interest at weighted average interest rates of 0.01% and 0.01%, respectively. Restricted deposits are presented at their cost, including accrued interest. Property and equipment, net 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:
Software development costs Software development costs, which are included in property and equipment, net, consists of capitalized costs related to purchase and develop internal-use software. The Company uses such software to provide services to its customers. The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended. These costs include personnel and personnel-related employee benefits for employees directly associated with the software development and external costs of the materials or services consumed in developing or obtaining the software. Any costs incurred for upgrades and functionality enhancements of the software are also capitalized. Once this software is ready for use in providing the Company's services, these costs are amortized on a straight-line basis over the three-year estimated useful life. The amortization is presented within depreciation and amortization in the consolidated statements of operations. During the years ended December 31, 2022 and 2021, the Company capitalized internal-use software cost of $11,143 and $2,594, respectively. In the third quarter of 2022, the Company recorded impairment charges included in depreciation, amortization and impairment in the consolidated statement of operations of $547 related to the abandonment of certain projects. There were no impairment of capitalized software costs for the year ended December 31, 2021 and 2020. Impairment of long-lived assets Long-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for impairment whenever facts or circumstances either internally or externally may indicate that the carrying value of an asset may not be recoverable. If there are indications of an impairment, the Company tests for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of the asset to the carrying amount of the asset or asset group. If the asset or asset group is determined to be impaired, any excess of the carrying value of the asset or asset group over its estimated fair value is recognized as an impairment loss. For the year ended December 31, 2022, we recognized impairment expense of $547. For the years ended December 31, 2021, and 2020 no impairments of long-lived assets were recorded. Business combinations The Company accounts for business combinations by applying the provisions of ASC 805, “Business Combination” (“ASC 805”) and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Acquisition-related expenses are expensed as incurred. Goodwill and acquired intangible assets Goodwill and acquired intangible assets have been recorded in the Company's financial statements resulting from various business combinations. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed. Goodwill is subject to an annual impairment test. The Company allocates goodwill to reporting units based on the expected benefit from the business combination. Reporting units are evaluated when changes in the Company’s operating structure occur, and if necessary, goodwill is reassigned using a relative fair value allocation approach. The Company currently has one reporting unit. ASC 350, Intangibles—Goodwill and other (“ASC 350”) requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. The Company operates as one reporting unit. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. For the years ended December 31, 2022, 2021 and 2020 no impairments of goodwill were recorded. Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Customer relationships, acquired technology and trade name are being amortized over the estimated useful life of approximately 11 years, 6 years, and 4 years, respectively, using straight-line amortization method. The amortization of customer relationships, acquired technology and trade name is presented within depreciation, amortization and impairment in the consolidated statement of operations. Leases Innovid's lease portfolio primarily consists of real estate properties and cars. Short-term leases with a term of 12 months or less are not recorded on the balance sheet. Innovid does not separate lease components from non-lease components. The Company is a lessee in all its lease agreements. The Company records lease liabilities based on the present value of lease payments over the lease term. Innovid generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the Company's control. Innovid includes optional renewal periods in the lease term only when it is reasonably certain that Innovid will exercise its option. Variable lease payments are primarily related to payments to lessors for taxes, maintenance, insurance, and other operating costs. The Company's lease agreements do not contain any significant residual value guarantees or restrictive covenants. Fair value of financial instruments The Company applies a fair value framework to measure and disclose its financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The Company’s financial instruments consist of cash and cash equivalents, short term deposits, restricted deposits, trade receivables, net, trade payables, employees and payroll accruals, accrued expenses and other current liabilities and current portion of long term debts. Their historical carrying amounts are approximate fair values due to the short-term maturities of these instruments. The Company measures its investments in money market funds classified as cash equivalents and warrants liability at fair value. The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis:
The change in the fair value of the Level 3 warrant liability is summarized below:
* Additions during the year ended December 31, 2021 represent Company Warrant liability assumed in the Transaction. See Note 11, Warrants for further detail. Certificates of deposit represent our deposits with certain financial institutions with maturities ranging from 90 to 180 days. These amounts are included in Cash equivalents and Short-term deposits on our consolidated balance sheet and are carried at cost, which approximates fair value. As of December 31, 2022, the Company’s warrant liability includes the Warrants, refer to Note 11, Warrants, that were originally issued in connection with ION’s initial public offering, the “ION IPO”, which were transferred to the Company as part of the Transaction. The Company’s Warrants are recorded on the balance sheet at fair value with changes in fair value recognized through earnings. This valuation is subject to re-measurement at each balance sheet date. With each re-measurement the valuation will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations. ASC 820, Fair Value Measurements, indicates that the fair value should be determined “from the perspective of a market participant that holds the identical item” and “use the quoted price in an active market held by another party, if that price is available.” The Company has determined that the fair value of the Public Warrants, refer to Note 11, Warrants, at a specific date is determined by the closing price of the Company’s warrants, and are within Level 1 of the fair value hierarchy. The closing price of the warrants was $0.40 and $1.11 as of December 31, 2022 and 2021, respectively. The fair value of the warrants was $1,265 and $3,510 as of December 31, 2022 and 2021, respectively. Gains and losses from the remeasurement of the Public Warrants’ liability is recognized in finance expenses, net in the consolidated statements of operations. The Private Warrants are classified as Level 3 as of December 31, 2022 and continue to be valued based on a Black-Scholes option pricing model. Gains and losses from the remeasurement of the Private Warrants’ refer to Note 11, Warrants liability is recognized in finance expenses, net in the consolidated statements of operations. The key inputs into the Black-Scholes model for the Private Warrants were as follows:
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. Trade receivable, net The Company records trade receivable for amounts invoiced and yet unbilled invoices. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The expectation of collectability is based on a review of credit profiles of customers, contractual terms and conditions, current economic trends, and historical payment experience. The Company regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice and the collection history of each customer to determine the appropriate amount of allowance for doubtful accounts. Trade receivables deemed uncollectible are charged against the allowance for doubtful accounts when identified. Accrued post-employment benefits 401(k) profit sharing plans: The Company has a 401(k) retirement savings plan with a safe harbor employer match with a maximum of 4% employer contribution for its eligible employees in the US. During the years ended December 31, 2022, 2021 and 2020 the Company recorded expenses for matching contributions in the amount of $1,182, $961 and $705, respectively. Severance pay: The Israeli Severance Pay Law, 1963 (“Severance Pay Law”), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month salary for each year of employment, or a portion thereof. The Israeli Subsidiary’s liability for all of its Israeli employees is covered by the provisions of Section 14 of the Severance Pay Law (“Section 14”). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, continued on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company’s balance sheets. Severance pay expenses for the years ended December 31, 2022, 2021 and 2020, amounted to approximately $946, $755 and $600, respectively. Income taxes and tax contingencies Income taxes are computed using a balance sheet approach reflecting both current and deferred taxes. Current and deferred taxes reflect the tax impact of all of the events included in the financial statements. The basic principles employed in the balance sheet approach are to reflect a current tax liability or asset that is recognized for the estimated taxes payable or refundable on tax returns for the current and prior years, a deferred tax liability or asset that is recognized for the estimated future tax effects attributable to temporary differences and carryforwards, the measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law of which the effects of future changes in tax laws or rates are not anticipated, and the measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. There are certain situations in which deferred taxes are not provided. Some basis differences are not temporary differences because their reversals are not expected to result in taxable or deductible amounts. The Company regularly evaluates deferred tax assets for future realization and establishes a valuation allowance to the extent that a portion is not more likely than not to be realized. The Company considers whether it is more likely than not that the deferred tax assets will be realized, including existing cumulative losses in recent years, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates. ASC 740, Income Taxes (“ASC 740”) contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest related to unrecognized tax benefits in taxes on income. On December 20, 2017, Congress passed the “US Tax Act”. The US Tax Act requires complex computations to be performed that were not previously required by US tax law, significant judgments to be made in interpretation of the provisions of the US Tax Act, significant estimates in calculations, and the preparation and analysis of information not previously relevant or regularly produced the Act provides that a person who is a US shareholder of any CFC is required to include its GILTI in gross income for the tax year in a manner generally similar to that for Subpart F inclusions. The term “global intangible low-taxed income” is defined as the excess (if any) of the US shareholder’s net CFC tested income for that tax year, over the US shareholder’s net deemed tangible income return for that tax year. The Company’s policy is to treat GILTI as a period expense in the provision for income taxes. Concentrations of credit risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, deposits and trade receivables, net. The majority of the Company’s cash and cash equivalents are invested in deposits with major banks in US, Israel and UK. Generally, these investments may be redeemed upon demand and, therefore, bear minimal risk. The Company’s trade receivables, net are mainly derived from sales to customers located in the US, APAC, EMEA, and LATAM. The Company mitigates its credit risks by performing an ongoing credit evaluations of its customers’ financial conditions. The Company has no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. During the years ended December 31, 2022, 2021 and 2020, two of the Company’s customers accounted for more than 10% of the Company’s total revenues as presented below:
* less than 10% Stock-based compensation The Company estimates the fair value of stock-based awards on the date of grant. The fair value of stock options with only service conditions is determined using the Black-Scholes option pricing model. The grant date fair value of the stock-based awards with graded vesting is recognized on a straight-line basis over the requisite service period. The determination of the fair value of the Company’s stock option awards is based on a variety of factors including Company’s common stock price, risk-free interest rate, expected volatility, expected life of awards and dividend yield. The Company has limited option exercise history and has elected to estimate the expected life of the stock option awards using the “simplified method” with the continued use of this method extended until such time that the Company has sufficient exercise history. The expected volatility of the price of such stocks is based on volatility of similar companies whose stock prices are publicly available over a historical period equivalent to the option’s expected term. The dividend yield is based on the Company’s historical and future expectation of dividends payouts. Historically, the Company has not paid cash dividends. Risk-free interest rates are based on the yield from US Treasury zero-coupon bonds with a term equivalent to the expected term of the options. The Company accounts for forfeitures as they occur. Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance. The assessment considers whether the warrants are freestanding financial instruments, meet the definition of a liability under ASC 480, and meet all of the requirements for equity classification, including whether the warrants are indexed to the Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent reporting period end date while the warrants are outstanding. Warrants that meet all the criteria for equity classification, are required to be recorded as a component of additional paid-in capital. Warrants that do not meet all the criteria for equity classification, are required to be recorded as liabilities at their initial fair value on the date of issuance and remeasured to fair value at each balance sheet date thereafter. The liability-classified warrants are recorded under non-current liabilities. Changes in the estimated fair value of the warrants are recognized in “Financial expenses, net” in the consolidated statements of operations. Revenue recognition The majority of Company’s revenues is derived from providing Ad serving services to advertisers, publishers, and media agencies. The services focus on standard, interactive and data driven digital video advertising. Ad serving services relate to utilizing Innovid’s platform to serve advertising impressions to various digital publishers across CTV, mobile TV, desktop TV, display, and other channels. The Company also provides measurement services to brand and agencies, enterprise clients (networks) and publishers. The measurement service provide analysis on and track performance of advertisement campaigns. The measurement service provides insights into the effectiveness of TV and digital advertising. Creative services relate to the design and development of interactive data-driven and dynamic ad formats by adding data, interactivity and dynamic features to standard ad units. The Company recognizes revenue when its customer obtains control of promised services in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from contracts with customers (“ASC 606”) and determines revenue recognition through the following steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct and are separately identifiable, the Company allocates the contract consideration to all distinct performance obligations based on their relative standalone selling price (“SSP”). SSP is typically estimated based on observable transactions when these services are sold on a standalone basis. Revenues related to ad serving services are recognized when impressions are delivered. The Company recognizes revenue from the display of impression-based ads in the contracted period in which the impressions are delivered. Impressions are considered delivered when an ad is displayed to users. Revenues related to the measurement services platform are recognized over time, since the customer simultaneously receives and consumes the benefits provided by the Company’s performance. Revenues for these measurement services are recognized over the service period. Revenues related to creative projects are recognized at a point in time when the Company delivers an ad unit. Creative services projects are usually delivered within a week. The Company’s accounts receivable, consist primarily of receivables related to providing ad serving, measurement and creative services, for which the Company’s contracted performance obligations have been satisfied, the amount has been billed and the Company has an unconditional right to payment. The Company typically bills customers monthly based on actual delivery. The payment terms vary, mainly with terms of 60 days or less. The typical contract term is 12 months or less for ASC 606 purposes. Most of the Company’s contracts can be cancelled without a cause. The Company has the unconditional right to payment for the services provided as of the date of the termination of the contracts. The Company applies the practical expedient in ASC 606 and does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Deferred revenues represent mostly unrecognized fees billed or collected for measurement platform services. Deferred revenues are recognized as (or when) we perform under the contract. Ad serving services were 76.7%, 93.6%, and 96.5% of the Company’s revenues for the years ended December 31, 2022, 2021 and 2020, respectively. Measurement services were 19.7%, 1.6% and 0.7% of the Company’s revenues for the years ended December 31, 2022, 2021 and 2020, respectively. Creative services were 3.6%, 4.8% and 2.8% of the Company’s revenues for the years ended December 31, 2022, 2021 and 2020, respectively. Costs to obtain a contract Contract costs include commission programs to compensate sales employees for generating sales orders with new customers or for new services with existing customers. Most commissions are commensurate. The Company elected to apply the practical expedient and recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. If commissions are not commensurate, the Company capitalizes these commissions. The term of amortization of capitalized commissions is three years. The amount of commissions capitalized as of December 31, 2022 is immaterial. Cost of revenues Cost of revenues consists primarily of costs to run the ad serving, creative and measurement services. These costs include hosting fees, cost to access data and personnel costs including stock-based compensation, professional services costs and facility related costs. The Company allocates overhead including rent and other facility related costs, communication costs based on headcount. Research and development Research and development expenses consist primarily of personnel costs, including stock-based compensation, professional services costs, hosting and facility related costs. We allocate overhead including rent and other facility related costs and communication costs based on headcount. We expect research and development expenses to increase in future periods to support our growth, including continuing to invest in optimization, accuracy and reliability of our platform and other technology improvements to support and drive efficiency in our operations. These expenses may vary from period to period as a percentage of revenue, depending primarily upon when we choose to make more significant investments. Research and development costs are charged to the consolidated statements of operations as incurred. ASC 350-40, Internal-Use Software (“ASC 350-40”), requires the capitalization of certain costs incurred only during the application development stage. Sales and marketing Sales and marketing expenses consist primarily of personnel costs, including stock-based compensation, professional services costs and facility related costs as well as costs related to advertising, product management, promotional materials, public relations, other sales and marketing programs. The Company allocates overhead including rent and other facility related costs, communication costs based on headcount. General and administrative General and administrative expenses consist primarily of personnel costs, including stock-based compensation, for executive management, finance, accounting, human capital, legal and other administrative functions as well as professional services costs and facility related costs. The Company allocates overhead including rent and other facility related costs, communication costs based on headcount. Net loss per common stock Prior to the Company’s SPAC merger, the Company computed net loss per stock using the two-class method required for participating securities. The two-class method requires income available to common stockholders for the period to be allocated between common stocks and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its preferred stocks to be participating securities as the holders of the preferred stocks would be entitled to dividends that would be distributed to the holders of common stocks, on a pro-rata basis assuming conversion of all preferred stocks into common stocks. These participating securities do not contractually require the holders of such stocks to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities. Following the SPAC merger, basic net loss per stock share is computed by dividing net income (loss) for each reporting period by the weighted-average number of ordinary shares outstanding during that period. Diluted net loss per stock is computed by dividing net income (loss) for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period. Diluted net loss per stock is the same as basic net loss per stock in periods when the effects of potentially dilutive stock of common stock are anti-dilutive. All outstanding warrants, options and RSUs for the years ended December 31, 2022, 2021 and 2020 have been excluded from the calculation of the diluted net loss per share, because all such securities are anti-dilutive for all periods presented. Preferred stocks were converted and treasury stocks were cancelled as of December 31, 2021. For further information see Note 19 Basic and Diluted Net Loss Per Share. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued the ASU No. 2016-02, Leases (Topic 842). The standard outlines a comprehensive lease accounting model that supersedes the previous lease guidance and requires lessees to recognize lease liabilities and corresponding right-of-use (“ROU”) assets for all leases with lease terms greater than 12 months. The guidance also changes the definition of a lease and expands the disclosure requirements of lease arrangements. Innovid adopted the standard in the first quarter of 2022 using the modified retrospective method. Results for reporting periods beginning after December 31, 2021, have been presented in accordance with the standard, while results for prior periods have not been adjusted and continue to be reported in accordance with the Company's historical accounting. The cumulative effect of initially applying the new leases standard was recognized as an adjustment to the opening consolidated balance sheet as of January 1, 2022. The Company elected a package of practical expedients for leases that commenced prior to January 1, 2022, and did not reassess historical conclusions on: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases; and (iii) initial direct costs capitalization for any existing leases. This standard has a significant impact on our consolidated balance sheet but did not have a significant impact on the Company’s consolidated statements of operations. The most significant effects relate to the recognition ROU assets and lease liabilities on interim consolidated balance sheet for real estate and cars operating leases. 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:
See Note 8, Leases for further details. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. Innovid adopted the standard in the first quarter of 2022. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. The Company adopted the standard effective in the first quarter of 2022. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements not yet adopted by the Company As an “emerging growth company,” the JOBS Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election. In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The final guidance issued by the FASB for convertible instruments eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features. Separate accounting is still required in certain cases. Additionally, among other changes, the guidance eliminates some of the conditions for equity classification in ASC 815-40-25 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company evaluated the potential impact of this guidance on its consolidated financial statements and determined that it will not have an impact on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 requires enhanced qualitative and quantitative disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company has evaluated the impact of this accounting standard update and has determined that its adoption will impact how the Company assesses its estimates for credit losses, but will not have an impact on the consolidated financial statements. Other guidance that has been issued since the end of our previous reporting period is not expected to have an impact on the Company’s consolidated financial statements.
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TRANSACTION |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TRANSACTION | TRANSACTION On November 30, 2021, the Transaction was closed. The Transaction was accounted for as a reverse recapitalization. Under this method of accounting, ION who was the legal acquirer, was treated as the acquired company for accounting purposes and the Transaction was treated as the equivalent of Innovid Corp. issuing stock for the net assets of ION. The net assets of ION are stated at historical cost, with no goodwill or other intangible assets recorded. Upon the consummation of the Transaction all outstanding shares of Innovid Inc. common stock, Innovid Inc. redeemable convertible preferred stock, Innovid Inc. warrants, and Secondary Sale Transaction of 6,885,486 shares to PIPE investors, were exchanged for 93,787,278 shares of common stock in Innovid Corp.
Holders of 19,585,174 shares of ION’s Class A common stock sold in its initial public offering (the “Initial Shares”) exercised their right to have such shares redeemed for a full pro rata portion of the trust account holding the proceeds from ION IPO, which was approximately $10.00 per share, or $195,888 in the aggregate. The remaining shares of ION Class A common stock, including total shares of ION Class B common stock converted to ION Class A common stock immediately prior to the Domestication, were automatically converted to 12,039,826 shares of common stock in Innovid Corp. After giving effect to the Transaction, the redemption of Initial Shares as described above and the consummation of the PIPE Investment, there were 118,941,618 shares of common stock issued and outstanding after the close of the Transaction. Innovid Corp. received approximately $149,252 in cash proceeds, net of transaction costs paid. The Company paid an accrued liability of $3,185 directly related to the Transaction as of December 31, 2021. The following table reconciles the elements of the Transaction to the Consolidated statement of cash flows and the Consolidated Statement of Changes in Temporary Equity and Stockholders’ Equity for the year ended December 31, 2021.
* These amounts were paid in 2022. As a result of the Transaction, each share of Innovid Inc. redeemable convertible preferred stock and common stock was converted into the right to receive approximately 1.337 shares of the common stock of the Company. The consolidated assets, liabilities and results of operations prior to the Transaction are those of Innovid Inc.. The stocks and corresponding capital amounts and losses per stock, prior to the Transaction, have been retroactively restated based on stocks reflecting the exchange ratio established in the Transactions. The equity structure has been recast in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to Innovid Inc.’s stockholders in connection with the Transaction. As such, the shares and corresponding capital amounts and earnings per share related to Innovid Inc. redeemable convertible preferred stock and Innovid Inc.'s common stock prior to the Transaction have been retroactively recast as shares reflecting the exchange ratio of 1.337 established in the Transaction. Public Warrants and Private Placement Warrants As a result of the Transaction, the Company assumed the outstanding Public Warrants to purchase 3,162,500 shares of the Company’s common stock and the outstanding Private Warrants to purchase 7,060,000 shares of the Company’s common stock. Each whole Warrant entitles the registered holder to purchase one share of the Company’s common stock at a price of $11.50 per share, at any time commencing 30 days after the closing of the Transaction. The warrants expire five years after the completion of the Transaction. Refer to Note 11, Warrants for further discussion.
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ACQUISITION |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITION | ACQUISITION On February 28, 2022, the Company completed the acquisition of TVS. TVS is an independent global measurement and attribution platform for converged TV and a private company limited by shares incorporated under the laws of Scotland. The Company acquired all the equity of TVS for an aggregate amount of approximately $100,000 in cash, 11,549,465 shares of the Company common stock at fair value of $3.80 per share, and the issuance of 949,893 fully vested stock option of the Company at weighted average fair value of $3.49, subject to certain adjustments as defined in the Stock Purchase Agreement. The Company, through this acquisition, added a real-time, cross-platform service to its offerings, including measurement outcomes such as frequency and unique unduplicated reach and performance metrics. The combination of ad serving, and cross-platform measurement enables the buy- and sell-sides to solve fragmentation by unlocking a complete picture of advertising across the linear TV, CTV and digital video marketplaces. The acquisition of TVS has been accounted for as a business combination using the acquisition method of accounting. The acquisition method requires that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The valuation of assets acquired and liabilities assumed have been finalized as of December 31, 2022. The Company finalized the purchase accounting for the TVS acquisition during the fourth quarter of fiscal 2022. The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date:
Intangible assets related to technology, customer relationship and trade name are being amortized over the estimated useful life of approximately 6 years, 11 years, and 4 years, respectively. The estimated fair values of identifiable intangible assets were determined using the "income approach", which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. Some of the more significant assumptions inherent in the development of these asset valuations include the estimated net cash flows for each year for the appropriate discount rate necessary to measure the risk inherent in each future cash flow stream, the life cycle of each asset, competitive trends impacting the asset and each cash flow stream, as well as other factors. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from the other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recognized from the acquisition of TVS represents the value of additional growth potential of the revenue base from the creation of a single combined global organization and synergies related to combined IT efforts for enhancement of the existing and acquired technologies. The goodwill is not deductible for tax purposes. In addition to the purchase consideration, the Company entered cash compensation arrangements with certain employees, which amounted to $9,700 in aggregate and are subject to certain performance and employment conditions following the acquisition date. The Company incurred approximately $5.0 million in total transaction costs for the acquisition. Acquisition related transaction costs include legal, accounting fees and other professional costs directly related to the acquisition and are recognized in “general and administrative” in the consolidated statements of operations. Unaudited Pro Forma Financial Information The following table presents the unaudited pro forma combined results of Innovid and TVS for the year ended December 31, 2022, and 2021 as if the acquisition of TVS had occurred on January 1, 2021:
The unaudited pro forma combined financial information was prepared using the acquisition method of accounting and was based on the historical financial information of Innovid and TVS. In order to reflect the occurrence of the acquisition on January 1, 2021, the unaudited pro forma financial information includes adjustments to reflect incremental amortization expense to be incurred based on the current preliminary fair values of the identifiable intangible assets acquired and the reclassification of acquisition-related costs incurred during the three months and twelve months ended December 31, 2022 to the three months and twelve months ended December 31, 2021. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2021. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company.
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INTANGIBLE ASSETS, NET |
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INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET The Company amortizes intangible assets on a straight line basis over their estimated useful lives. The estimated useful life, gross carrying amounts and accumulated amortization totals related to our identifiable intangible assets are as follows:
The weighted average useful life of our intangible assets at December 31, 2022 was 7.64 years. As described in Note 4, Acquisition, we acquired several intangible assets as part of the TVS acquisition. The Company assesses intangible assets for indicators of impairment on an annual basis, including an evaluation of our useful lives to determine if events and circumstances warrant a revision to the remaining period of amortization. If indicators of impairment are present, amortizable intangible assets are tested for impairment by comparing the carrying value to undiscounted cash flows and, if impaired, written down to fair value based on discounted cash flows. The company have not identified an impairment, nor a material change to the estimated remaining useful lives of its intangible assets during fiscal years 2022 and 2021. The intangible assets have no assigned residual values. Amortization expense recorded for intangible assets was $3,850, $33, and $199 during fiscal years 2022, 2021, and 2020, respectively. As of December 31, 2022, estimated intangible asset amortization expense for each of the next five years and thereafter are as follows:
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PREPAID AND OTHER CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID AND OTHER CURRENT ASSETS | PREPAID AND OTHER CURRENT ASSETS Prepaid and other current assets consist of the following:
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PROPERTY AND EQUIPMENT, NET |
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PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following:
The depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $1,626, $630 and $531, respectively.
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company has the following operating ROU assets and lease liabilities:
The following table summarizes the lease costs recognized in the consolidated statement of operations:
As of December 31, 2022, the weighted-average remaining lease term and weighted-average discount rate for operating leases are 2.2 years and 3.6%, respectively. The following table presents supplementary cash flow information regarding the company's operating leases:
The following table summarizes the future payments of Innovid for its operating lease liabilities:
Lease Disclosures Related to Periods Prior to the Adoption of ASU 2016-02 are as follows: Operating lease expenses for the years ended December 31, 2021 and 2020 were $2,072 and, $2,215, respectively. Future minimum lease commitments under non-cancelable operating leases as of December 31, 2021, are as follows:
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liability consist of the following:
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OTHER NON-CURRENT LIABILITIES |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of the following:
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WARRANTS |
12 Months Ended |
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Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
WARRANTS | WARRANTS As of December 31, 2022, the Company had 3,162,500 Public Warrants and 7,060,000 Private Warrants outstanding. Public Warrants Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of the Transaction and (b) one year from the closing of the Initial Public Offering. The Public Warrants will expire five years from the completion of the Transaction or earlier upon redemption or liquidation. Redemption of warrants when the price per share of Innovid Corp. common stock equals or exceeds $18.00. Once the warrants become exercisable, the Company may redeem the outstanding warrants (except as described with respect to the Private Placement Warrants): •in whole and not in part. •at a price of $0.01 per warrant. •upon a minimum of 30 days’ prior written notice of redemption to each warrant holder; and •if, and only if, the closing price of the Innovid Corp. common stock equals or exceeds $18.00 per share (as adjusted) for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. When the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. The Company has established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the warrant exercise price. If the foregoing conditions are satisfied and the Company issues a notice of redemption of the warrants, each warrant holder will be entitled to exercise the warrant prior to the scheduled redemption date. However, the price of the Company’s common shares may fall below the $18.00 redemption trigger price (as adjusted for share sub-divisions, share capitalization, reorganization, recapitalization and the like) as well as the $11.50 warrant exercise price after the redemption notice is issued. Redemption of warrants when the price per share of Innovid Corp. common stock equals or exceeds $10.00. Once the warrants become exercisable, the Company may redeem the outstanding warrants: •in whole and not in part. •at a price of $0.10 per warrant. •upon a minimum of 30 days’ prior written notice of redemption; if holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares determined based on the redemption date and the fair market value of the Innovid Corp. common stock; and •if, and only if, the closing price of the Innovid Corp. ordinary shares equals or exceeds $10.00 per share (as adjusted) for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. If the Company calls these Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger, or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of ordinary shares at a price below their exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. Private Placement Warrants The Private Placement Warrants are identical to the Public Warrants, except that the Private Placement Warrants and the Innovid Corp. ordinary shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of the Transaction subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the initial purchaser or its permitted transferees. The Company evaluated the Company Warrants (Public Warrants and Private Placement Warrants) in accordance with ASC 480, “Distinguishing Liabilities from Equity” and ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity” and concluded that the warrants do not meet all the conditions to be classified as equity pursuant to ASC 815-40. As the warrants do not meet all the requirements for equity classification, the Company Warrants are recorded as liabilities on the Balance Sheets and measured at fair value with changes in fair value recognized in the Statements of Operations in the period of change. The Company Warrants’ fair value as of December 31, 2022 and 2021 was $4,301 and $18,972, respectively.
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LONG-TERM DEBT |
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Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT 2022 A&R Agreement On August 4, 2022, two wholly owned subsidiaries of the Company, Innovid LLC and TV Squared Inc, entered an amended and restated loan and security agreement with Silicon Valley Bank (the “2022 A&R Agreement”), to increase the revolving line of credit from $15,000 to $50,000 (the “New Revolving Credit Facility”). The interest for the New Revolving Credit Facility is payable monthly in arrears. The New Revolving Credit Facility bears interest at an annual rate which is the greater of (a) WSJ Prime Rate plus 0.75% or (b) 4.25%, on the aggregate outstanding balance. Additional fees include fees in an amount of 0.20% per annum of the average unused portion of the New Revolving Credit Facility to be paid quarterly in arrears. The Company will also pay non-refundable commitment fees of $40 and $75 at inception and first anniversary date, respectively. The maturity date of the 2022 A&R Agreement is June 30, 2024. The New Revolving Credit Facility is subject to certain customary conditions precedent to the credit extension as stated in the 2022 A&R Agreement. The New Revolving Credit Facility requires the Company to comply with all covenants, primarily maintaining an adjusted quick ratio of at least 1.30 to 1.00. As defined in the 2022 A&R Agreement “adjusted quick ratio” is the ratio of (a) quick assets to (b) current liabilities minus the current portion of deferred revenue. “Quick assets” are determined as the Company’s unrestricted cash plus accounts receivable, net, and is determined according to US GAAP. The Company is also required to maintain the minimum quarterly adjusted EBITDA as defined in the 2022 A&R Agreement if the Company does not maintain the quarterly adjusted quick ratio of at least 1.50 to 1.00. As of December 31, 2022, the Company utilized $20,000 of the $50,000 credit line, $6,000 of which was drawn during 2020, $5,000 was drawn during the fourth quarter 2022 and $9,000 was drawn during the second quarter of 2022. In January 2023, the Company repaid $5,000 under the credit line. As of December 31, 2022, the Company is in compliance with all the covenants. Prior to the 2022 A&R Agreement, the credit installments bore US dollar denominated interest at an annual rate equal to 0.75%-1% plus a prime rate on the outstanding principal of each credit installment. FINANCE EXPENSES (INCOME), NETThe Company recognizes the gains and losses from the remeasurement of the warrants liability related to Public Warrants and Private Placement Warrants in “Finance expenses (income), net” in the consolidated statements of operations. The unrealized gain from changes in the fair value of the Company Warrants for the years ended December 31, 2022 and 2021 was $14,671 and $3,819, respectively.The Company also recognized interest expenses in “Finance expenses (income), net” in the consolidated statements of operations. Interest expenses for the years ended December 31, 2022, 2021 and 2020 were $675, $259 and $328, respectively.
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COMMITMENTS AND CONTINGENT LIABILITIES |
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Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Pledges and bank guarantees: 1.In conjunction with the 2022 A&R Agreement (see Note 12, Long-term Debt), Innovid LLC. pledged 65,000 common stocks of its Israeli Subsidiary, NIS 0.01 par value each. 2.The Israeli Subsidiary pledged bank deposits in an aggregate amount of $629 in connection with an office rent agreement and credit cards. 3.Innovid Inc. obtained bank guarantees in an aggregate amount of $231 in connection with its office lease agreements. Legal contingencies: On March 4, 2022, a lawsuit was filed in the United States District Court for the Western District of Texas on March 4, 2022, by Nielsen, LLC against TVS alleging infringement of US Patent No. 10,063,378. On January 18, 2023 the Texas Court granted TVS’s motion to transfer venue to the Southern District of New York. It is expected that the Southern District of New York will issue a scheduling order detailing the next steps in the case in March 2023. The plaintiff has not specified the amount sought in the litigation.
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STOCKHOLDERS’ EQUITY |
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Temporary Equity Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Stockholders’ equity:
The shares of the Company’s common stock, prior to the Transaction (as discussed in Note 3, Transaction) have been retrospectively adjusted to reflect the exchange ratio of 1.337 established in the Transaction. i.Common stocks: The rights and privileges of the common stocks are as follows: Voting Rights - The holders of the common stocks are entitled to one vote for each share of common stocks. Dividend Rights - Subject to preferences that may be applicable to dividends of any outstanding preferred stocks, dividends may be paid on the common stocks as and when declared by the Board of Directors. Such dividends will be distributed among the holders of common stocks pro rata in proportion of the number of common stocks held by each. Liquidation Rights - In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company’s affairs, the holders of the Company common stock are entitled to share ratably in all assets remaining after payment of the Company’s debts and other liabilities, subject to prior distribution rights of the Company preferred stock or any class or series of stock having a preference over the Company common stock, then outstanding, if any. Redemption Rights - The common stocks are not redeemable. Options outstanding and options available for future option grants have been retroactively adjusted to give effect to the exchange ratio. ii.Treasury stocks: As of December 31, 2022 there are no treasury stock issued or outstanding iii.Equity classified warrants: The Company issued 133,725 warrants to American Friends of Tmura, Inc. (the “Holder”) on February 25, 2010 to purchase an aggregate of 133,725 shares of the Company’s common stock, $0.001 par value each, with an exercise price of $0.07 which is subject to an adjustment on the occurrence of certain events. The warrants are exercisable until March 1, 2029. The warrants were recorded within equity based on their fair value on the date of issuance. These warrants are not remeasured. All equity classified warrants were exercised in November 2021 on a non-cash basis.
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STOCK-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Innovid Corp. Incentive Plan (“2021 Incentive Plan”) A total number of Company common stock equal to 10% of the fully-diluted shares outstanding following the closing of the Transaction will initially be authorized and reserved for issuance under the 2021 Incentive Plan, which is 15,617,049 shares of Company common stock. The number of shares authorized and reserved for issuance will be subject to an annual increase for 10 years on the first day of each calendar year beginning January 1, 2022, equal to the lesser of (A) 5% of the aggregate number of shares of Company common stock outstanding on the final day of the immediately preceding calendar year and (B) such smaller number of shares as is determined by the board of directors of Innovid Corp. The maximum number of shares of Company common stock that may be issued pursuant to the exercise of incentive stock options granted under the 2021 Incentive Plan will be equal to 30% of the total number of issued and outstanding shares of Company common stock on a fully diluted basis as of the closing of the Transaction, see Note 3, Transaction. If shares covered by an award are not purchased or are forfeited or expire, or otherwise terminate without delivery of any shares subject thereto, then such shares will, to the extent of any such forfeiture, termination, cash-settlement or expiration, be available for future grant under the 2021 Incentive Plan. The payment of dividend equivalent rights in cash in conjunction with any outstanding awards will not be counted against the shares available for issuance under the 2021 Incentive Plan, and shares tendered by a participant, repurchased by the Company using proceeds from the exercise of stock options or withheld by the Company in payment of the exercise price of a stock option or to satisfy any tax withholding obligation for an award will not again be available for future awards. Innovid Stock Plan (“Innovid Stock Plan") Under the Innovid Stock Plan, options may be granted to officers, directors, employees and non-employee consultants of the Company. Each option granted under the Plan expires no later than 10 years from the date of grant. The options vest usually over four years from commencement of employment or services. Any options, which are forfeited or not exercised before expiration, become available for future grants. From and after the effectiveness of the 2021 Incentive Plan, no additional awards will be granted under the Innovid Stock Plan. Upon the effectiveness of the Transaction, all outstanding stock options under the Innovid Stock Plan, whether vested or unvested, were converted into options to purchase a number of shares of common stock of the Company. Awards previously granted under the Innovid Stock Plan will continue to be subject to the provisions thereof. Stock-based compensation expense Stock-based compensation expense is related to awards issued to employees pursuant to the Innovid Stock Plan and the 2021 Incentive Plan, summarized as follows:
In connection with the options granted to service providers and non-employee consultants, during the twelve months ended December 31, 2022, 2021 and 2020, the Company recorded stock compensation expenses in the amount of $1,190, $262 and $162, respectively. The majority of these expenses were recorded in general and administrative. During the twelve months ended December 31, 2022 the Company capitalized stock-based compensation expense of $1,165 in internal-use software cost. The Company stock-based compensation expense related to internal-use software cost for the same period in 2021 were immaterial. Stock Options Stock options may be granted to officers, directors, employees, and non-employee consultants of the Company. Each option granted under the Plan expires no later than 10 years from the date of grant. The options vest usually over four years from commencement of employment or services. Any options, which are forfeited or not exercised before expiration, become available for future grants. In connection with the TVS acquisition, Innovid issued 949,893 stock options to holders of TVS options for replacement options. These options were fully vested upon issuance due to acceleration upon acquisition and therefore do not require future service for vesting. The Company attributed a total amount of $152 to post acquisition service and recorded it as stock compensation expenses immediately after the acquisition closed. See Note 4, Acquisition for further details. A summary of the employees’ stock option activity under the Innovid Stock Plan and the 2021 Incentive Plan for the years ended December 31, 2022 is as follows:
A summary of the consultants’ stock option activity under the Innovid Stock Plan for the year ended December 31, 2022 is as follows:
As of December 31, 2022, the Company had approximately $4,536 of total unrecognized compensation cost related to non-vested stock-based compensation. That cost is expected to be recognized over a weighted-average period of 1.8 years years. The Company estimated the fair value of each option on the date of grant using the Black-Scholes option pricing model applying the weighted-average assumptions in the following table:
Restricted Stock Units In connection with the Company’s transition to its next life-cycle stage post Transaction, Restricted Stock Units (“RSUs”) may be granted to officers, directors, employees, and non-employee consultants of the Company, and generally vest over a - or four-year period. A summary of the employees’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2022 is as follows:
A summary of the consultants’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2022 is as follows:
The weighted-average grant-date fair value of RSUs generally is determined based on the number of units granted and the quoted price of Innovid’s common stock on the date of grant. As of December 31, 2022, $33,165 of unrecognized compensation cost related to RSUs is expected to be recognized as expense over the weighted average period of 2.0 years. The Innovid Corp. Employee Stock Purchase Plan On November 30, 2021, the ESPP became effective. A total of 2,868,438 shares of Company common stock were initially reserved for issuance under the ESPP. The compensation committee of our board of directors is the plan administrator of the ESPP and has the authority to interpret the terms of the ESPP and determine eligibility of participants. On the first day of each calendar year beginning on January 1, 2022 and ending on (and including) January 1, 2031, the number of shares available for issuance under the ESPP will be increased by a number of shares equal to the lesser of (i) 1% of the shares outstanding on the final day of the immediately preceding calendar year, and (ii) such smaller number of shares as determined by the board of directors. If any right granted under the ESPP terminates for any reason without having been exercised, the shares subject thereto that are not purchased under such right will again be available for issuance under the ESPP. Notwithstanding the foregoing, no more than 17,383,002 shares of Company Common Stock may be issued under the Section 423 Component of the ESPP. As of December 31, 2022, the Company had not granted any options under the Innovid Corp. Employee Stock Purchase Plan.
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FINANCE EXPENSES (INCOME), NET |
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Other Income and Expenses [Abstract] | |
FINANCE EXPENSES (INCOME), NET | LONG-TERM DEBT 2022 A&R Agreement On August 4, 2022, two wholly owned subsidiaries of the Company, Innovid LLC and TV Squared Inc, entered an amended and restated loan and security agreement with Silicon Valley Bank (the “2022 A&R Agreement”), to increase the revolving line of credit from $15,000 to $50,000 (the “New Revolving Credit Facility”). The interest for the New Revolving Credit Facility is payable monthly in arrears. The New Revolving Credit Facility bears interest at an annual rate which is the greater of (a) WSJ Prime Rate plus 0.75% or (b) 4.25%, on the aggregate outstanding balance. Additional fees include fees in an amount of 0.20% per annum of the average unused portion of the New Revolving Credit Facility to be paid quarterly in arrears. The Company will also pay non-refundable commitment fees of $40 and $75 at inception and first anniversary date, respectively. The maturity date of the 2022 A&R Agreement is June 30, 2024. The New Revolving Credit Facility is subject to certain customary conditions precedent to the credit extension as stated in the 2022 A&R Agreement. The New Revolving Credit Facility requires the Company to comply with all covenants, primarily maintaining an adjusted quick ratio of at least 1.30 to 1.00. As defined in the 2022 A&R Agreement “adjusted quick ratio” is the ratio of (a) quick assets to (b) current liabilities minus the current portion of deferred revenue. “Quick assets” are determined as the Company’s unrestricted cash plus accounts receivable, net, and is determined according to US GAAP. The Company is also required to maintain the minimum quarterly adjusted EBITDA as defined in the 2022 A&R Agreement if the Company does not maintain the quarterly adjusted quick ratio of at least 1.50 to 1.00. As of December 31, 2022, the Company utilized $20,000 of the $50,000 credit line, $6,000 of which was drawn during 2020, $5,000 was drawn during the fourth quarter 2022 and $9,000 was drawn during the second quarter of 2022. In January 2023, the Company repaid $5,000 under the credit line. As of December 31, 2022, the Company is in compliance with all the covenants. Prior to the 2022 A&R Agreement, the credit installments bore US dollar denominated interest at an annual rate equal to 0.75%-1% plus a prime rate on the outstanding principal of each credit installment. FINANCE EXPENSES (INCOME), NETThe Company recognizes the gains and losses from the remeasurement of the warrants liability related to Public Warrants and Private Placement Warrants in “Finance expenses (income), net” in the consolidated statements of operations. The unrealized gain from changes in the fair value of the Company Warrants for the years ended December 31, 2022 and 2021 was $14,671 and $3,819, respectively.The Company also recognized interest expenses in “Finance expenses (income), net” in the consolidated statements of operations. Interest expenses for the years ended December 31, 2022, 2021 and 2020 were $675, $259 and $328, respectively.
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Income (loss) before taxes on income is comprised as follows:
Income taxes are comprised as follows:
A reconciliation of the U. S. statutory income tax rate to the Company’s effective income tax rate for continuing operations is as follows:
The Company’s effective tax rate is subject to significant variations due to several factors, including variability in pre-tax and taxable income (loss) and the mix of jurisdictions to which they relate, intercompany transactions, mergers and acquisitions, the applicability of special tax regimes, changes in the Company’s currently established valuation allowance, foreign currency gains (losses), and other laws and accounting rules in various jurisdictions. Significant factors that impacted the Company’s effective tax rate between 2022 and 2021 were related to the acquisition of TVS, GILTI, uncertain tax positions, and increase in valuation allowance. The Company’s effective tax rate between 2021 and 2020 was primarily reflects a pre-tax loss in 2021 compared to pre-tax income in 2020, offset by increases in non-deductible expenses, GILTI, uncertain tax positions and increase in valuation allowance. Deferred income taxes are provided for the effects of temporary differences between assets and liabilities recognized for financial reporting purposes and the amounts recognized for income tax purposes. Significant components of deferred tax assets and deferred tax liabilities consisted of the following:
A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company has established a valuation allowance to offset its deferred tax assets, excluding the newly acquired TVS UK which is in a net deferred tax liability position due primarily to acquisition accounting, at December 31, 2022 and 2021 due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. The Israeli corporate tax rate was 23% in 2022, 2021 and 2020. The Company’s production facilities in Israel have been granted the status of a “preferred enterprise” under the Law for the Encouragement of Capital Investments Law, 1959. According to the provisions of the Encouragement of Capital Investments Law, 1959, the Company has been granted a reduced tax rate for certain research and development activities the Company performs in Israel. A preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9%. The tax rate applicable to preferred enterprises located in other areas remains at 16%. Foreign withholding taxes and Internal Revenue Code Section 986(c) gains and losses have not been recorded on permanently reinvested earnings of certain subsidiaries aggregating $12,888 and $8,720 as of December 31, 2022 and 2021, respectively. The amount of deferred international withholding taxes and Internal Revenue Code Section 986(c) gains and losses relating to these subsidiaries is approximately $1,237 and $1,224 as of December 31, 2022 and 2021, respectively. The Company’s gross NOLs for tax return purposes are as follows:
Domestic (federal and state) NOLs expire in various year starting from 2030 through an indefinite period. Foreign NOLs expire starting from 2026 (Argentina) through an indefinite period (Germany, UK). A portion of domestic (federal and state) NOLs are subject to Internal Revenue Code Section 382 or similar provisions, but the net operating loss carryforwards are expected to be fully realized. The table above reflects gross NOLs for tax return purposes which are different than financial statement NOLs, as the Company’s intention is to settle additional income taxes from tax contingencies with NOLs. The other tax credit carryforwards expire in various years beginning in 2033. The Company’s intention is to settle the tax contingencies associated with the research and development credits with the attribute. The Company’s unrecognized tax benefits are reconciled as follows:
The balances of unrecognized tax benefits of $5,456 and $3,162 as of December 31, 2022 and 2021, respectively, represent amounts that, if recognized, would impact the effective income tax rate in future periods, of which $1,495 relates to the Company’s acquisition of TVS. The Company recognized interest and penalties related to unrecognized tax benefits in its income tax provision. The Company accrued $471 and $136 for interest and penalties as of December 31, 2022 and 2021, respectively. The Company is subject to income taxes in the US and several foreign jurisdictions including Australia, Argentina, Germany, the UK and Israel. Significant judgment is required in evaluating the Company’s tax positions and determining the Company’s provision for income taxes. During the ordinary course of business there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite the belief that the Company’s tax return positions are fully supportable. The Company adjusts these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. The Company’s Israeli Subsidiary is currently under examination by the taxing authorities for 2017 to 2019 tax periods. The last tax assessment that was received by the Company related to tax years through 2014 in Israel.
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SEGMENT REPORTING |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTINGThe Company operates as one operating segment, which primarily focuses on ad serving, measurement and creative services. Our CEO is the chief operating decision-maker, manages and allocates resources to the operations of the Company on an entity-wide basis. Revenue by geographical location are as follows:
The Company’s property and equipment, net and ROU assets commencing January 1, 2022 by geographical location are as follows:
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BASIC AND DILUTED NET LOSS PER SHARE |
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BASIC AND DILUTED NET LOSS PER SHARE | BASIC AND DILUTED NET LOSS PER SHARE Basic and diluted net loss per share attributable to common stockholders was calculated as follows:
Net loss per share calculations and potentially dilutive security amounts for all periods prior to the Transaction have been retrospectively adjusted to the equivalent number of shares outstanding immediately after the Transaction to effect the reverse recapitalization. Historically reported weighted average shares outstanding have been multiplied by the exchange ratio of 1.337. The Company’s potentially dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share attributable to common stockholders. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
Preferred stocks, options outstanding and warrant outstanding have been retroactively adjusted to give effect to the exchange ratio.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended |
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Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for annual financial information and the instructions to Form 10-K and Article 10 of Regulation S-X. The accompanying Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries; all intercompany activity and balances have been eliminated. The Consolidated Financial Statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of the consolidated balance sheets of the Company as of December 31, 2022 and 2021 and the consolidated results of operations and cash flows for the years ended December 31, 2022, 2021 and 2020. Prior Period Reclassification During the second quarter of 2022, we presented depreciation, amortization and impairment expenses as a separate line item on our consolidated statements of operations and all prior periods have been adjusted. Depreciation, amortization and impairment expenses were previously included in cost of sales and other operating expenses depending on the underlying asset’s function. Additionally, we no longer present gross profit as a subtotal on our consolidated statements of operations. The reclassification is to better reflect the financial performance of transactions with customers as our business has evolved and reflects a better representation of our current operations, which include those of our most recent acquisition. The change provides more clarity about changes in cost of revenue and other operating expenses exclusive of depreciation, amortization and impairment. In accordance with US GAAP, all periods presented below have been retrospectively adjusted to reflect the reclassification of cost of revenue and other operating expenses exclusive of depreciation and amortization. There was no net impact to loss from operations, net loss attributable to common stockholders or net loss per stock for any periods presented. The consolidated balance sheets, statements of changes in temporary equity and stockholders’ equity, and the consolidated statements of cash flows are not affected by this reclassification.
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Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company has considered the impact of these factors on its estimates and assumptions and determined that there were no material adverse impacts on the consolidated financial statements for the periods ended December 31, 2022, 2021, and 2020. As events continue to evolve and additional information becomes available, the Company’s estimates and assumptions may change materially in future periods.
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Functional currency | Functional currencyA majority of the Company’s revenues are generated in US dollars. In addition, a substantial portion of the Company’s costs are incurred in US dollars. The Company’s management believes that the US dollar is the currency of the primary economic environment in which the Company and each of its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the US dollar. Accordingly, accounts maintained in currencies other than the US dollar are re-measured into US dollars. All translation gains and losses resulting from the re-measurement of monetary assets and liabilities that are not denominated in the functional currency are recorded in Financial expenses, net on the consolidated statements of operations. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired.
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Short-term bank deposits | Short-term bank deposits The Company utilizes short-term deposits in order to maximize the use of cash on hand. |
Restricted deposits and restricted cash | Restricted deposits and restricted cashRestricted deposits presented in Prepaid expenses and other current assets and in Long-term restricted deposits are deposits used as security for the Company’s credit cards and for the rental of premises. |
Property and equipment, net | Property and equipment, netProperty and equipment are stated at cost, net of accumulated depreciation. |
Software development costs | Software development costs Software development costs, which are included in property and equipment, net, consists of capitalized costs related to purchase and develop internal-use software. The Company uses such software to provide services to its customers. The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended. These costs include personnel and personnel-related employee benefits for employees directly associated with the software development and external costs of the materials or services consumed in developing or obtaining the software. Any costs incurred for upgrades and functionality enhancements of the software are also capitalized. Once this software is ready for use in providing the Company's services, these costs are amortized on a straight-line basis over the three-year estimated useful life. The amortization is presented within depreciation and amortization in the consolidated statements of operations.
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Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for impairment whenever facts or circumstances either internally or externally may indicate that the carrying value of an asset may not be recoverable. If there are indications of an impairment, the Company tests for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of the asset to the carrying amount of the asset or asset group. If the asset or asset group is determined to be impaired, any excess of the carrying value of the asset or asset group over its estimated fair value is recognized as an impairment loss.
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Business combinations | Business combinations The Company accounts for business combinations by applying the provisions of ASC 805, “Business Combination” (“ASC 805”) and allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Acquisition-related expenses are expensed as incurred.
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Goodwill and acquired intangible assets | Goodwill and acquired intangible assets Goodwill and acquired intangible assets have been recorded in the Company's financial statements resulting from various business combinations. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed. Goodwill is subject to an annual impairment test. The Company allocates goodwill to reporting units based on the expected benefit from the business combination. Reporting units are evaluated when changes in the Company’s operating structure occur, and if necessary, goodwill is reassigned using a relative fair value allocation approach. The Company currently has one reporting unit. ASC 350, Intangibles—Goodwill and other (“ASC 350”) requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. The Company operates as one reporting unit. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. For the years ended December 31, 2022, 2021 and 2020 no impairments of goodwill were recorded. Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Customer relationships, acquired technology and trade name are being amortized over the estimated useful life of approximately 11 years, 6 years, and 4 years, respectively, using straight-line amortization method. The amortization of customer relationships, acquired technology and trade name is presented within depreciation, amortization and impairment in the consolidated statement of operations.
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Leases | Leases Innovid's lease portfolio primarily consists of real estate properties and cars. Short-term leases with a term of 12 months or less are not recorded on the balance sheet. Innovid does not separate lease components from non-lease components. The Company is a lessee in all its lease agreements. The Company records lease liabilities based on the present value of lease payments over the lease term. Innovid generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the Company's control. Innovid includes optional renewal periods in the lease term only when it is reasonably certain that Innovid will exercise its option. Variable lease payments are primarily related to payments to lessors for taxes, maintenance, insurance, and other operating costs. The Company's lease agreements do not contain any significant residual value guarantees or restrictive covenants.
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Fair value of financial instruments | Fair value of financial instruments The Company applies a fair value framework to measure and disclose its financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The Company’s financial instruments consist of cash and cash equivalents, short term deposits, restricted deposits, trade receivables, net, trade payables, employees and payroll accruals, accrued expenses and other current liabilities and current portion of long term debts. Their historical carrying amounts are approximate fair values due to the short-term maturities of these instruments. The Company measures its investments in money market funds classified as cash equivalents and warrants liability at fair value.
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Trade receivable, net | Trade receivable, netThe Company records trade receivable for amounts invoiced and yet unbilled invoices. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The expectation of collectability is based on a review of credit profiles of customers, contractual terms and conditions, current economic trends, and historical payment experience. The Company regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice and the collection history of each customer to determine the appropriate amount of allowance for doubtful accounts. Trade receivables deemed uncollectible are charged against the allowance for doubtful accounts when identified. |
Accrued post-employment benefits | Accrued post-employment benefits 401(k) profit sharing plans: The Company has a 401(k) retirement savings plan with a safe harbor employer match with a maximum of 4% employer contribution for its eligible employees in the US. During the years ended December 31, 2022, 2021 and 2020 the Company recorded expenses for matching contributions in the amount of $1,182, $961 and $705, respectively. Severance pay: The Israeli Severance Pay Law, 1963 (“Severance Pay Law”), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month salary for each year of employment, or a portion thereof. The Israeli Subsidiary’s liability for all of its Israeli employees is covered by the provisions of Section 14 of the Severance Pay Law (“Section 14”). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, continued on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company’s balance sheets.
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Income taxes and tax contingencies | Income taxes and tax contingencies Income taxes are computed using a balance sheet approach reflecting both current and deferred taxes. Current and deferred taxes reflect the tax impact of all of the events included in the financial statements. The basic principles employed in the balance sheet approach are to reflect a current tax liability or asset that is recognized for the estimated taxes payable or refundable on tax returns for the current and prior years, a deferred tax liability or asset that is recognized for the estimated future tax effects attributable to temporary differences and carryforwards, the measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law of which the effects of future changes in tax laws or rates are not anticipated, and the measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. There are certain situations in which deferred taxes are not provided. Some basis differences are not temporary differences because their reversals are not expected to result in taxable or deductible amounts. The Company regularly evaluates deferred tax assets for future realization and establishes a valuation allowance to the extent that a portion is not more likely than not to be realized. The Company considers whether it is more likely than not that the deferred tax assets will be realized, including existing cumulative losses in recent years, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates. ASC 740, Income Taxes (“ASC 740”) contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest related to unrecognized tax benefits in taxes on income. On December 20, 2017, Congress passed the “US Tax Act”. The US Tax Act requires complex computations to be performed that were not previously required by US tax law, significant judgments to be made in interpretation of the provisions of the US Tax Act, significant estimates in calculations, and the preparation and analysis of information not previously relevant or regularly produced the Act provides that a person who is a US shareholder of any CFC is required to include its GILTI in gross income for the tax year in a manner generally similar to that for Subpart F inclusions. The term “global intangible low-taxed income” is defined as the excess (if any) of the US shareholder’s net CFC tested income for that tax year, over the US shareholder’s net deemed tangible income return for that tax year. The Company’s policy is to treat GILTI as a period expense in the provision for income taxes.
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Concentration of credit risks | Concentrations of credit risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, deposits and trade receivables, net. The majority of the Company’s cash and cash equivalents are invested in deposits with major banks in US, Israel and UK. Generally, these investments may be redeemed upon demand and, therefore, bear minimal risk. The Company’s trade receivables, net are mainly derived from sales to customers located in the US, APAC, EMEA, and LATAM. The Company mitigates its credit risks by performing an ongoing credit evaluations of its customers’ financial conditions. The Company has no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements.
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Stock-based compensation | Stock-based compensation The Company estimates the fair value of stock-based awards on the date of grant. The fair value of stock options with only service conditions is determined using the Black-Scholes option pricing model. The grant date fair value of the stock-based awards with graded vesting is recognized on a straight-line basis over the requisite service period. The determination of the fair value of the Company’s stock option awards is based on a variety of factors including Company’s common stock price, risk-free interest rate, expected volatility, expected life of awards and dividend yield. The Company has limited option exercise history and has elected to estimate the expected life of the stock option awards using the “simplified method” with the continued use of this method extended until such time that the Company has sufficient exercise history. The expected volatility of the price of such stocks is based on volatility of similar companies whose stock prices are publicly available over a historical period equivalent to the option’s expected term. The dividend yield is based on the Company’s historical and future expectation of dividends payouts. Historically, the Company has not paid cash dividends. Risk-free interest rates are based on the yield from US Treasury zero-coupon bonds with a term equivalent to the expected term of the options. The Company accounts for forfeitures as they occur.
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Warrants | Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance. The assessment considers whether the warrants are freestanding financial instruments, meet the definition of a liability under ASC 480, and meet all of the requirements for equity classification, including whether the warrants are indexed to the Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent reporting period end date while the warrants are outstanding. Warrants that meet all the criteria for equity classification, are required to be recorded as a component of additional paid-in capital. Warrants that do not meet all the criteria for equity classification, are required to be recorded as liabilities at their initial fair value on the date of issuance and remeasured to fair value at each balance sheet date thereafter. The liability-classified warrants are recorded under non-current liabilities. Changes in the estimated fair value of the warrants are recognized in “Financial expenses, net” in the consolidated statements of operations.
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Revenue recognition and Cost of revenues | Revenue recognition The majority of Company’s revenues is derived from providing Ad serving services to advertisers, publishers, and media agencies. The services focus on standard, interactive and data driven digital video advertising. Ad serving services relate to utilizing Innovid’s platform to serve advertising impressions to various digital publishers across CTV, mobile TV, desktop TV, display, and other channels. The Company also provides measurement services to brand and agencies, enterprise clients (networks) and publishers. The measurement service provide analysis on and track performance of advertisement campaigns. The measurement service provides insights into the effectiveness of TV and digital advertising. Creative services relate to the design and development of interactive data-driven and dynamic ad formats by adding data, interactivity and dynamic features to standard ad units. The Company recognizes revenue when its customer obtains control of promised services in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from contracts with customers (“ASC 606”) and determines revenue recognition through the following steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct and are separately identifiable, the Company allocates the contract consideration to all distinct performance obligations based on their relative standalone selling price (“SSP”). SSP is typically estimated based on observable transactions when these services are sold on a standalone basis. Revenues related to ad serving services are recognized when impressions are delivered. The Company recognizes revenue from the display of impression-based ads in the contracted period in which the impressions are delivered. Impressions are considered delivered when an ad is displayed to users. Revenues related to the measurement services platform are recognized over time, since the customer simultaneously receives and consumes the benefits provided by the Company’s performance. Revenues for these measurement services are recognized over the service period. Revenues related to creative projects are recognized at a point in time when the Company delivers an ad unit. Creative services projects are usually delivered within a week. The Company’s accounts receivable, consist primarily of receivables related to providing ad serving, measurement and creative services, for which the Company’s contracted performance obligations have been satisfied, the amount has been billed and the Company has an unconditional right to payment. The Company typically bills customers monthly based on actual delivery. The payment terms vary, mainly with terms of 60 days or less. The typical contract term is 12 months or less for ASC 606 purposes. Most of the Company’s contracts can be cancelled without a cause. The Company has the unconditional right to payment for the services provided as of the date of the termination of the contracts. The Company applies the practical expedient in ASC 606 and does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Deferred revenues represent mostly unrecognized fees billed or collected for measurement platform services. Deferred revenues are recognized as (or when) we perform under the contract. Costs to obtain a contract Contract costs include commission programs to compensate sales employees for generating sales orders with new customers or for new services with existing customers. Most commissions are commensurate. The Company elected to apply the practical expedient and recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. If commissions are not commensurate, the Company capitalizes these commissions. The term of amortization of capitalized commissions is three years. The amount of commissions capitalized as of December 31, 2022 is immaterial. Cost of revenues Cost of revenues consists primarily of costs to run the ad serving, creative and measurement services. These costs include hosting fees, cost to access data and personnel costs including stock-based compensation, professional services costs and facility related costs. The Company allocates overhead including rent and other facility related costs, communication costs based on headcount.
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Research and development | Research and development Research and development expenses consist primarily of personnel costs, including stock-based compensation, professional services costs, hosting and facility related costs. We allocate overhead including rent and other facility related costs and communication costs based on headcount. We expect research and development expenses to increase in future periods to support our growth, including continuing to invest in optimization, accuracy and reliability of our platform and other technology improvements to support and drive efficiency in our operations. These expenses may vary from period to period as a percentage of revenue, depending primarily upon when we choose to make more significant investments. Research and development costs are charged to the consolidated statements of operations as incurred. ASC 350-40, Internal-Use Software (“ASC 350-40”), requires the capitalization of certain costs incurred only during the application development stage.
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Sales and marketing | Sales and marketingSales and marketing expenses consist primarily of personnel costs, including stock-based compensation, professional services costs and facility related costs as well as costs related to advertising, product management, promotional materials, public relations, other sales and marketing programs. The Company allocates overhead including rent and other facility related costs, communication costs based on headcount. |
General and administrative | General and administrativeGeneral and administrative expenses consist primarily of personnel costs, including stock-based compensation, for executive management, finance, accounting, human capital, legal and other administrative functions as well as professional services costs and facility related costs. The Company allocates overhead including rent and other facility related costs, communication costs based on headcount. |
Net loss per common stock | Net loss per common stock Prior to the Company’s SPAC merger, the Company computed net loss per stock using the two-class method required for participating securities. The two-class method requires income available to common stockholders for the period to be allocated between common stocks and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its preferred stocks to be participating securities as the holders of the preferred stocks would be entitled to dividends that would be distributed to the holders of common stocks, on a pro-rata basis assuming conversion of all preferred stocks into common stocks. These participating securities do not contractually require the holders of such stocks to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities. Following the SPAC merger, basic net loss per stock share is computed by dividing net income (loss) for each reporting period by the weighted-average number of ordinary shares outstanding during that period. Diluted net loss per stock is computed by dividing net income (loss) for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period. Diluted net loss per stock is the same as basic net loss per stock in periods when the effects of potentially dilutive stock of common stock are anti-dilutive. All outstanding warrants, options and RSUs for the years ended December 31, 2022, 2021 and 2020 have been excluded from the calculation of the diluted net loss per share, because all such securities are anti-dilutive for all periods presented. Preferred stocks were converted and treasury stocks were cancelled as of December 31, 2021. For further information see Note 19 Basic and Diluted Net Loss Per Share.
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Recently Adopted Accounting Pronouncements and Recently issued accounting pronouncements not yet adopted by the Company | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued the ASU No. 2016-02, Leases (Topic 842). The standard outlines a comprehensive lease accounting model that supersedes the previous lease guidance and requires lessees to recognize lease liabilities and corresponding right-of-use (“ROU”) assets for all leases with lease terms greater than 12 months. The guidance also changes the definition of a lease and expands the disclosure requirements of lease arrangements. Innovid adopted the standard in the first quarter of 2022 using the modified retrospective method. Results for reporting periods beginning after December 31, 2021, have been presented in accordance with the standard, while results for prior periods have not been adjusted and continue to be reported in accordance with the Company's historical accounting. The cumulative effect of initially applying the new leases standard was recognized as an adjustment to the opening consolidated balance sheet as of January 1, 2022. The Company elected a package of practical expedients for leases that commenced prior to January 1, 2022, and did not reassess historical conclusions on: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases; and (iii) initial direct costs capitalization for any existing leases. This standard has a significant impact on our consolidated balance sheet but did not have a significant impact on the Company’s consolidated statements of operations. The most significant effects relate to the recognition ROU assets and lease liabilities on interim consolidated balance sheet for real estate and cars operating leases. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. Innovid adopted the standard in the first quarter of 2022. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. This new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. The Company adopted the standard effective in the first quarter of 2022. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements not yet adopted by the Company As an “emerging growth company,” the JOBS Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election. In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The final guidance issued by the FASB for convertible instruments eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features. Separate accounting is still required in certain cases. Additionally, among other changes, the guidance eliminates some of the conditions for equity classification in ASC 815-40-25 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company evaluated the potential impact of this guidance on its consolidated financial statements and determined that it will not have an impact on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 requires enhanced qualitative and quantitative disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company has evaluated the impact of this accounting standard update and has determined that its adoption will impact how the Company assesses its estimates for credit losses, but will not have an impact on the consolidated financial statements. Other guidance that has been issued since the end of our previous reporting period is not expected to have an impact on the Company’s consolidated financial statements.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Income Statement | The effect of the change is as follows:
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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:
Property and equipment consist of the following:
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis:
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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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Schedule of Key Inputs for Valuation of Private Placement Warrants | The key inputs into the Black-Scholes model for the Private Warrants were as follows:
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Schedules of Concentration of Risk, by Risk Factor | During the years ended December 31, 2022, 2021 and 2020, two of the Company’s customers accounted for more than 10% of the Company’s total revenues as presented below:
* less than 10%
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Assets And Liabilities Lessee | 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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TRANSACTION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reverse Recapitalization | Upon the consummation of the Transaction all outstanding shares of Innovid Inc. common stock, Innovid Inc. redeemable convertible preferred stock, Innovid Inc. warrants, and Secondary Sale Transaction of 6,885,486 shares to PIPE investors, were exchanged for 93,787,278 shares of common stock in Innovid Corp.
The following table reconciles the elements of the Transaction to the Consolidated statement of cash flows and the Consolidated Statement of Changes in Temporary Equity and Stockholders’ Equity for the year ended December 31, 2021.
* These amounts were paid in 2022.
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ACQUISITION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date:
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Business Acquisition, Unaudited Pro Forma Information | The following table presents the unaudited pro forma combined results of Innovid and TVS for the year ended December 31, 2022, and 2021 as if the acquisition of TVS had occurred on January 1, 2021:
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INTANGIBLE ASSETS, NET (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The estimated useful life, gross carrying amounts and accumulated amortization totals related to our identifiable intangible assets are as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2022, estimated intangible asset amortization expense for each of the next five years and thereafter are as follows:
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PREPAID AND OTHER CURRENT ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid and Other Current Assets | Prepaid and other current assets consist of the following:
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PROPERTY AND EQUIPMENT, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [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:
Property and equipment consist of the following:
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LEASES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating ROU assets and lease liabilities | The Company has the following operating ROU assets and lease liabilities:
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Summary of Lease Cost | The following table summarizes the lease costs recognized in the consolidated statement of operations:
The following table presents supplementary cash flow information regarding the company's operating leases:
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Schedule of Operating Lease, Liability, Maturity | The following table summarizes the future payments of Innovid for its operating lease liabilities:
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Schedule of Future Minimum Lease Commitments | Future minimum lease commitments under non-cancelable operating leases as of December 31, 2021, are as follows:
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued expenses and other current liability consist of the following:
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OTHER NON-CURRENT LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Noncurrent Liabilities | Other non-current liabilities consist of the following:
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STOCKHOLDERS’ EQUITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | Stockholders’ equity:
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STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Share Based Compensation Expenses | Stock-based compensation expense is related to awards issued to employees pursuant to the Innovid Stock Plan and the 2021 Incentive Plan, summarized as follows:
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Schedule of Share Based Payment Arrangement, Option, Activity | A summary of the employees’ stock option activity under the Innovid Stock Plan and the 2021 Incentive Plan for the years ended December 31, 2022 is as follows:
A summary of the consultants’ stock option activity under the Innovid Stock Plan for the year ended December 31, 2022 is as follows:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Company estimated the fair value of each option on the date of grant using the Black-Scholes option pricing model applying the weighted-average assumptions in the following table:
A summary of the employees’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2022 is as follows:
A summary of the consultants’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2022 is as follows:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Income (loss) before taxes on income is comprised as follows:
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Schedule of Components of Income Tax Expense (Benefit) | Income taxes are comprised as follows:
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Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U. S. statutory income tax rate to the Company’s effective income tax rate for continuing operations is as follows:
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Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and deferred tax liabilities consisted of the following:
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Summary of Operating Loss Carryforwards | The Company’s gross NOLs for tax return purposes are as follows:
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Schedule of Unrecognized Tax Benefits Roll Forward | The Company’s unrecognized tax benefits are reconciled as follows:
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SEGMENT REPORTING (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue and Property and Equipment, by Geographical Areas | Revenue by geographical location are as follows:
The Company’s property and equipment, net and ROU assets commencing January 1, 2022 by geographical location are as follows:
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BASIC AND DILUTED NET LOSS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Net Loss Per Share | Basic and diluted net loss per share attributable to common stockholders was calculated as follows:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
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DESCRIPTION OF BUSINESS (Details) - USD ($) $ / shares in Units, $ in Thousands |
11 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Feb. 28, 2022 |
Nov. 30, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Business Acquisition [Line Items] | ||||
Secondary sale amount | $ 68,855 | $ 68,855 | ||
TV Squared | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 100,000 | |||
Shares issued as consideration (in shares) | 11,549,465 | |||
Share price (in dollars per share) | $ 3.80 | |||
Issued, fully vested stock option (in shares) | 949,893 | 949,893 | ||
Weighted average fair value (in dollars per share) | $ 3.49 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Reclassification (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of revenues | [1] | $ 30,187 | $ 17,698 | $ 12,311 | |
Operating expenses: | |||||
Research and development | [1] | 31,118 | 24,299 | 18,014 | |
Sales and marketing | [1] | 50,266 | 32,841 | 28,521 | |
General and administrative | [1] | 39,144 | 20,641 | 8,103 | |
Depreciation, amortization and impairment | 6,143 | 661 | 730 | ||
Previously reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of revenues | 33,265 | 17,785 | 12,365 | ||
Operating expenses: | |||||
Research and development | 31,932 | 24,619 | 18,283 | ||
Sales and marketing | 52,226 | 33,056 | 28,810 | ||
General and administrative | 39,435 | 20,680 | 8,221 | ||
Depreciation, amortization and impairment | 0 | 0 | 0 | ||
Effect of change | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of revenues | (3,078) | (87) | (54) | ||
Operating expenses: | |||||
Research and development | (814) | (320) | (269) | ||
Sales and marketing | (1,960) | (215) | (289) | ||
General and administrative | (291) | (39) | (118) | ||
Depreciation, amortization and impairment | $ 6,143 | $ 661 | $ 730 | ||
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
reportingUnit
$ / shares
|
Dec. 31, 2021
USD ($)
$ / shares
|
Dec. 31, 2020
USD ($)
|
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Summary of Significant Accounting Policies [Line Items] | ||||
Short-term bank deposit | $ 10,000,000 | $ 0 | ||
Weighted average interest rate of time deposits, three months or less | 4.10% | |||
Weighted average interest rate of time deposits, three months through six months | 4.10% | |||
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | recognized impairment expense | |||
Impairments of long-lived assets | $ 547,000 | 0 | $ 0 | |
Number of reporting units | reportingUnit | 1 | |||
Goodwill impairment | $ 0 | 0 | ||
Acquired finite-lived intangible assets, weighted average useful life | 7 years 7 months 20 days | |||
Severance costs | $ 946,000 | $ 755,000 | $ 600,000 | |
Payment term | 60 days | |||
Ad serving services | 76.70% | 93.60% | 96.50% | |
Measurement serving services | 19.70% | 1.60% | 0.70% | |
Creative serving services | 3.60% | 4.80% | 2.80% | |
Employee Severance | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of employee deposit, percent | 8.33% | |||
Postemployment Retirement Benefits | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Maximum annual contributions per employee, percent | 4.00% | 4.00% | ||
Defined contribution plan, cost | $ 1,182,000 | $ 961,000 | $ 705,000 | |
Public | Level 1 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Exercise price per share (in dollars per share) | $ / shares | $ 0.40 | $ 1.11 | ||
Fair value of warrant | $ 1,265,000 | $ 3,510,000 | ||
Customer relationships | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 11 years | |||
Technology | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 6 years | |||
Trade name | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | |||
Software development costs | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Useful lives (in years) | three-year | |||
Capitalization cost | $ 11,143,000 | 2,594,000 | ||
Asset impairment charges | $ 547,000 | $ 0 | $ 0 | |
Geographic Distribution, Foreign | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Weighted average interest rate | 0.01% | 0.01% |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property, Plant and Equipment) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Computers and peripheral equipment | |
Property, Plant and Equipment [Line Items] | |
Years | 3 years |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Years | 5 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Years | 7 years |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Liabilities: | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Warrants liability | Warrants liability |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Money market funds | $ 18,948 | $ 4,515 |
Certificates of deposit | 0 | |
Liabilities: | ||
Warrants liability | 1,265 | 3,510 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Money market funds | 0 | 0 |
Certificates of deposit | 20,000 | |
Liabilities: | ||
Warrants liability | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Money market funds | 0 | 0 |
Certificates of deposit | 0 | |
Liabilities: | ||
Warrants liability | $ 3,036 | $ 15,462 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) - Fair Value, Recurring - Warrants Liability - Level 3 - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning of the year | $ 15,462 | $ 499 |
Additions | 0 | 18,427 |
Change in fair value | (12,426) | 1,616 |
Conversion of Legacy Innovid Warrants on the Closing of the Transaction | 0 | (5,080) |
End of the year | $ 3,036 | $ 15,462 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Warrants Follows at Initial Measurement) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 4 years 3 months 21 days | 6 years 7 days | 6 years 1 month 9 days |
Expected volatility | 65.00% | 79.00% | |
Private Placement | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Risk-free interest rate | 4.07% | 1.24% | |
Expected dividends | 0.00% | 0.00% | |
Expected term (in years) | 3 years 10 months 24 days | 4 years 10 months 24 days | |
Expected volatility | 85.00% | 55.00% |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Concentration Risk) (Details) - Revenue Benchmark - Customer Concentration Risk |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2020 |
|
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.00% | |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Operating Lease Liabilities and ROU Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Jan. 01, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Summary of Significant Accounting Policies [Line Items] | |||
ROU assets | $ 2,910 | $ 0 | |
Lease liabilities | 3,822 | ||
Accounting Standards Update 2016-02 | |||
Summary of Significant Accounting Policies [Line Items] | |||
ROU assets | $ 3,978 | ||
Lease liabilities | 5,532 | ||
Real Estate | |||
Summary of Significant Accounting Policies [Line Items] | |||
ROU assets | 2,886 | ||
Lease liabilities | 3,801 | ||
Real Estate | Accounting Standards Update 2016-02 | |||
Summary of Significant Accounting Policies [Line Items] | |||
ROU assets | 3,928 | ||
Lease liabilities | 5,482 | ||
Cars | |||
Summary of Significant Accounting Policies [Line Items] | |||
ROU assets | 24 | ||
Lease liabilities | $ 21 | ||
Cars | Accounting Standards Update 2016-02 | |||
Summary of Significant Accounting Policies [Line Items] | |||
ROU assets | 50 | ||
Lease liabilities | $ 50 |
TRANSACTION - Narrative (Details) |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Nov. 30, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2020
USD ($)
shares
|
Dec. 01, 2021
shares
|
Jan. 01, 2021
shares
|
Dec. 31, 2019
shares
|
|
Related Party Transaction [Line Items] | |||||||
Goodwill | $ | $ 116,976,000 | $ 4,555,000 | |||||
Common stock, shares issued (in shares) | 133,882,414 | 119,017,380 | |||||
Common stock, shares outstanding (in shares) | 133,882,414 | 119,017,380 | |||||
Accrued transaction cost, not yet paid | $ | $ 0 | $ 3,185,000 | $ 0 | ||||
Exchange ratio | 1.337 | 1.337 | |||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Number of securities callable by warrants (in shares) | 1 | ||||||
Exercisable term from closing of business combination | 30 days | ||||||
Expiration term of warrant (in years) | 5 years | ||||||
Common stocks | |||||||
Related Party Transaction [Line Items] | |||||||
Per unit price (in dollars per share) | $ / shares | $ 11.50 | ||||||
Common stock, shares outstanding (in shares) | 119,017,380 | 16,275,609 | 15,969,260 | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||
Public Warrants | Common stocks | |||||||
Related Party Transaction [Line Items] | |||||||
Shares issued in transaction (in shares) | 3,162,500 | ||||||
Private Placement Warrants | Common stocks | |||||||
Related Party Transaction [Line Items] | |||||||
Shares issued in transaction (in shares) | 7,060,000 | ||||||
PIPE Investors | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares issued (in shares) | 118,941,618 | ||||||
Common stock, shares outstanding (in shares) | 118,941,618 | ||||||
PIPE Investors | Secondary Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Shares issued in transaction (in shares) | 6,885,486 | ||||||
ION | |||||||
Related Party Transaction [Line Items] | |||||||
Goodwill | $ | $ 0 | ||||||
Other intangible assets | $ | 0 | ||||||
Aggregate value | $ | $ 149,252,000 | ||||||
ION | IPO | |||||||
Related Party Transaction [Line Items] | |||||||
Shares issued in transaction (in shares) | 19,585,174 | ||||||
Per unit price (in dollars per share) | $ / shares | $ 10.00 | ||||||
Gross proceeds | $ | $ 195,888,000 | ||||||
Conversion of stock (in shares) | 12,039,826 | ||||||
Innovid Corp | |||||||
Related Party Transaction [Line Items] | |||||||
Exchanged into Innovid Corp. common stock on November 30, 2021 (in shares) | 93,787,278 | ||||||
Common stock, shares outstanding (in shares) | 16,275,609 | ||||||
Exercisable term from closing of business combination | 30 days | ||||||
Expiration term of warrant (in years) | 5 years |
TRANSACTION - Common Stock in Innovid Corp (Details) - shares |
Nov. 30, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Jan. 01, 2021 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Common stock, shares outstanding (in shares) | 133,882,414 | 119,017,380 | ||
Innovid Corp | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares outstanding (in shares) | 16,275,609 | |||
Warrant exercised (in shares) | 132,392 | |||
Stock options exercised (in shares) | 3,180,943 | |||
Conversion of redeemable convertible preferred stock into common stock (in shares) | 73,690,340 | |||
Conversion of Legacy Innovid warrants ( in shares) | 507,994 | |||
Exchanged into Innovid Corp. common stock on November 30, 2021 (in shares) | 93,787,278 |
TRANSACTION - Transaction to Cash Flow and Changes in Temporary Equity and Stockholders’ Equity (Details) - USD ($) $ in Thousands |
11 Months Ended | 12 Months Ended |
---|---|---|
Nov. 30, 2021 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | ||
Less: Transaction costs paid | $ (31,160) | |
Less: Deferred underwriting fee paid | (6,199) | |
Proceeds from reverse recapitalization, net | 149,252 | |
Less: Accrued transaction costs not yet paid | (3,185) | |
Less: Company Warrant assumed as part of the Transaction | (22,791) | |
Plus: Transaction costs allocated to Company Warrant | 2,750 | |
Reverse recapitalization, net | 126,026 | |
Secondary sale amount | $ 68,855 | 68,855 |
PIPE Investors | ||
Business Acquisition [Line Items] | ||
Cash - PIPE Investment, net of Secondary Sale Amount of $68,855 | 131,145 | |
ION | ||
Business Acquisition [Line Items] | ||
Cash - ION trust account and cash, net of redemptions | $ 55,466 |
ACQUISITION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Feb. 28, 2022 |
Dec. 31, 2022 |
|
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 7 years 7 months 20 days | |
Technology | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 6 years | |
Trade name | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 11 years | |
TV Squared | ||
Business Acquisition [Line Items] | ||
Payments to acquire business | $ 100,000 | |
Shares issued as consideration (in shares) | 11,549,465 | |
Share price (in dollars per share) | $ 3.80 | |
Issued, fully vested stock option (in shares) | 949,893 | 949,893 |
Weighted average fair value (in dollars per share) | $ 3.49 | |
Cash compensation arrangement for certain employees | $ 9,700 | |
Acquisition related costs | $ 5,000 | |
TV Squared | Technology | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 6 years | |
TV Squared | Trade name | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | |
TV Squared | Customer relationships | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 11 years |
ACQUISITION - Fair Values of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Feb. 28, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 116,976 | $ 4,555 | |
TV Squared | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 5,318 | ||
Accounts receivables | 4,186 | ||
Other current assets | 1,173 | ||
Property and equipment | 154 | ||
Total tangible assets | 10,831 | ||
Goodwill | 112,421 | ||
Total assets acquired | 157,027 | ||
Less: Deferred tax liabilities | (1,677) | ||
Less: Other assumed liabilities | (3,782) | ||
Net assets acquired | 151,568 | ||
TV Squared | Technology | |||
Business Acquisition [Line Items] | |||
Intangible assets | 15,075 | ||
TV Squared | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | 16,700 | ||
TV Squared | Trade name | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 2,000 |
ACQUISITION - Unaudited Pro Forma Financial Information (Details) - TV Squared - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | ||
Revenues | $ 131,433 | $ 112,147 |
Net losses | $ (14,634) | $ (37,195) |
INTANGIBLE ASSETS, NET - Intangible Assets (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 34,173 |
Accumulated Amortization | (4,254) |
Net Carrying Amount | $ 29,918 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 11 years |
Gross Carrying Amount | $ 16,898 |
Accumulated Amortization | (1,469) |
Net Carrying Amount | $ 15,429 |
Acquired technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 6 years |
Gross Carrying Amount | $ 15,275 |
Accumulated Amortization | (2,367) |
Net Carrying Amount | $ 12,907 |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 4 years |
Gross Carrying Amount | $ 2,000 |
Accumulated Amortization | (418) |
Net Carrying Amount | $ 1,582 |
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Acquired finite-lived intangible assets, weighted average (in years) | 7 years 7 months 20 days | ||
Amortization of intangible assets | $ 3,850 | $ 33 | $ 199 |
INTANGIBLE ASSETS, NET - Intangible Assets Amortization Expense (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 4,518 |
2024 | 4,518 |
2025 | 4,518 |
2026 | 4,081 |
2027 | 4,018 |
Thereafter | 8,265 |
Total | $ 29,918 |
PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 1,721 | $ 2,333 |
Deposits | 99 | 142 |
Government authorities | 204 | 153 |
Other current assets | 616 | 503 |
Total | $ 2,640 | $ 3,131 |
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 18,305 | $ 7,198 | |
Accumulated depreciation | (3,983) | (2,358) | |
Depreciated cost | 14,322 | 4,840 | |
Depreciation | 1,626 | 630 | $ 531 |
Software development costs | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 13,190 | 2,594 | |
Computers and peripheral equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 2,283 | 1,779 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 665 | 661 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 2,167 | $ 2,164 |
LEASES (Schedule of operating ROU assets and lease liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Leases Assets And Liabilities [Line Items] | ||
Operating lease right of use asset | $ 2,910 | $ 0 |
Lease liabilities | 3,822 | |
Real Estate | ||
Operating Leases Assets And Liabilities [Line Items] | ||
Operating lease right of use asset | 2,886 | |
Lease liabilities | 3,801 | |
Cars | ||
Operating Leases Assets And Liabilities [Line Items] | ||
Operating lease right of use asset | 24 | |
Lease liabilities | $ 21 |
LEASES (Schedule of lease liability) (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
Current lease liabilities | $ 2,186 | $ 0 |
Non-current lease liabilities | 1,636 | $ 0 |
Total lease liabilities | $ 3,822 |
LEASES (Schedule Of Lease Costs Recognized In The Consolidated Statement Of Earnings) (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Leases [Abstract] | |
Operating lease cost | $ 1,889 |
Short term lease cost | 973 |
Variable lease cost | 48 |
Total lease cost | $ 2,910 |
LEASES (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2022 |
|
Leases [Abstract] | |||
Operating lease, weighted average remaining lease term | 2 years 2 months 12 days | ||
Operating lease, weighted average discount rate, percent | 3.60% | ||
Operating lease expense | $ 2,072 | $ 2,215 |
LEASE (Supplementary Cash Flow Information) (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 2,162 |
Right of use assets obtained in exchange for operating lease liabilities upon lease modification | $ 610 |
LEASES (Schedule of Operating Lease Liability Maturities) (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
Leases [Abstract] | |
2023 | $ 2,219 |
2024 | 1,018 |
2025 | 669 |
Total undiscounted lease payments | 3,906 |
Less: Interest | (84) |
Total lease liabilities - operating | $ 3,822 |
LEASES (Schedule Of Commitments Under Non-Cancelable Operating Leases) (Details) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Rental of premises | |
Operating Leased Assets [Line Items] | |
2022 | $ 2,486 |
2023 | 1,844 |
2024 | 826 |
2025 | 770 |
Total | 5,926 |
Lease of motor vehicles | |
Operating Leased Assets [Line Items] | |
2022 | 8 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Total | $ 8 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 3,544 | $ 2,485 |
Tax payables | 1,325 | 39 |
Deferred revenue | 426 | 0 |
Accrued lease liability, current portion | 0 | 420 |
Other current liabilities | 179 | 138 |
Total | $ 5,474 | $ 3,082 |
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued lease liability | $ 0 | $ 996 |
Uncertain tax position | 3,865 | 2,459 |
Deferred tax liability | 489 | 0 |
Other non-current liabilities | 2,200 | 0 |
Other non-current liabilities | $ 6,554 | $ 3,455 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
WARRANTS (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 30, 2021 |
Nov. 30, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Class of Warrant or Right [Line Items] | ||||
Fractional shares issued upon exercise (in shares) | 0 | |||
Exercisable term from closing of business combination | 30 days | |||
Expiration term of warrant (in years) | 5 years | |||
Threshold period for not to transfer, assign or sell any shares or warrants after completion of initial business combination | 30 days | |||
Innovid Corp | ||||
Class of Warrant or Right [Line Items] | ||||
Exercisable term from closing of business combination | 30 days | |||
Exercisable term, from closing of public offering | 1 year | |||
Expiration term of warrant (in years) | 5 years | |||
Exercise price per share (in dollars per share) | $ 11.50 | |||
Public Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Outstanding warrants (in shares) | 3,162,500 | |||
Private Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Outstanding warrants (in shares) | 7,060,000 | |||
Redemption Of Warrant Price Per Share Equals Or Exceeds 18.00 | Innovid Corp | ||||
Class of Warrant or Right [Line Items] | ||||
Redemption of warrants, reference price (in dollars per share) | 18.00 | |||
Redemption price of warrants (in dollars per share) | $ 0.01 | |||
Number of consecutive trading days | 30 days | |||
Initial public offering per share (in dollars per share) | $ 18.00 | |||
Redemption of warrants, threshold trading days | 20 days | |||
Minimum threshold written notice period for redemption of warrants | 30 days | |||
Redemption Of Warrant Price Per Share Equals Or Exceeds 10.00 | Innovid Corp | ||||
Class of Warrant or Right [Line Items] | ||||
Redemption of warrants, reference price (in dollars per share) | $ 10.00 | |||
Redemption price of warrants (in dollars per share) | $ 0.10 | |||
Number of consecutive trading days | 30 days | |||
Initial public offering per share (in dollars per share) | $ 10.00 | |||
Redemption of warrants, threshold trading days | 20 days | |||
Minimum threshold written notice period for redemption of warrants | 30 days | |||
Private Placement Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Derivative liability fair value | $ 4,301 | $ 18,972 |
LONG-TERM DEBT (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Aug. 04, 2023 |
Aug. 04, 2022 |
Dec. 29, 2020 |
Jan. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Dec. 31, 2020 |
Aug. 03, 2022 |
|
Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Repayment of line of credit | $ 5,000 | |||||||
Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit outstanding | $ 50,000 | $ 50,000 | $ 15,000 | |||||
Debt instrument, prime rate | 0.75% | |||||||
Commitment fee percentage | 0.20% | |||||||
Commitment fee amount | $ 40 | |||||||
Line of credit quick ratio | 1.30 | |||||||
Quarterly adjusted quick ratio | 1.50 | |||||||
Revolving Credit Facility | Forecast | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee amount | $ 75 | |||||||
Revolving Credit Facility | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period | 4.25% | |||||||
Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Proceeds from line of credit | 5,000 | $ 6,000 | ||||||
Line of Credit | Amended Credit Agreement Maturing December 2020 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit outstanding | $ 20,000 | |||||||
Proceeds from line of credit | $ 9,000 | |||||||
Line of Credit | Maximum | Amended Credit Agreement Maturing October 2018 | Prime Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, variable rate | 1.00% | |||||||
Line of Credit | Minimum | Amended Credit Agreement Maturing October 2018 | Prime Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, variable rate | 0.75% |
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Commitments and Contingencies [Line Items] | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Bank guarantees | $ 231 | |
Israeli Subsidiary | ||
Commitments and Contingencies [Line Items] | ||
Bank deposits pledged | $ 629 | |
Subsidiaries | ||
Commitments and Contingencies [Line Items] | ||
Shares of subsidiary pledged (in shares) | 65 | |
Ordinary shares, par value (in dollars per share) | $ 0.01 |
STOCKHOLDERS’ EQUITY (Common Shares Activity) (Details) - $ / shares |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Temporary Equity Disclosure [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 133,882,414 | 119,017,380 |
Common stock, shares outstanding (in shares) | 133,882,414 | 119,017,380 |
STOCKHOLDERS’ EQUITY (Narrative) (Details) |
Dec. 31, 2022
vote
$ / shares
shares
|
Dec. 31, 2021
$ / shares
|
Nov. 30, 2021
$ / shares
shares
|
Feb. 25, 2010
$ / shares
shares
|
---|---|---|---|---|
Temporary Equity [Line Items] | ||||
Exchange ratio | 1.337 | 1.337 | ||
Number of securities callable by warrants (in shares) | 1 | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Holder | ||||
Temporary Equity [Line Items] | ||||
Warrants issued (in shares) | 133,725 | |||
Number of securities callable by warrants (in shares) | 133,725 | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.001 | |||
Exercise price per share (in dollars per share) | $ / shares | $ 0.07 | |||
Common stocks | ||||
Temporary Equity [Line Items] | ||||
Number of votes for each share | vote | 1 | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
Treasury stocks | ||||
Temporary Equity [Line Items] | ||||
Shares issued (in shares) | 0 | |||
Shares outstanding (in shares) | 0 |
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Feb. 28, 2022 |
Nov. 30, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expenses | $ 152 | ||||
Capitalized stock-based compensation expense | 1,165 | ||||
Cost not yet recognized | $ 4,536 | ||||
Period for cost yet to be recognized | 1 year 9 months 18 days | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cost not yet recognized | $ 33,165 | ||||
Period for cost yet to be recognized | 2 years | ||||
TV Squared | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Issued, fully vested stock option (in shares) | 949,893 | 949,893 | |||
Consultants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | ||||
Stock based compensation expenses | $ 1,190 | $ 262 | $ 162 | ||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Minimum | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Maximum | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock equal to the fully-diluted shares outstanding | 10.00% | ||||
Options available for future option grants (in shares) | 15,617,049 | ||||
Annual increase period | 10 years | ||||
Aggregate number of shares of common stock outstanding | 5.00% | ||||
Number of issued and outstanding shares of common stock fully diluted basis | 30.00% | ||||
Legacy Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Granted (in shares) | 0 | ||||
Legacy Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options available for future option grants (in shares) | 2,868,438 | ||||
Shares outstanding on the final day of the immediately preceding | 1.00% | ||||
Shares issued under ESPP (in shares) | 0 | ||||
Employee Stock Purchase Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options available for future option grants (in shares) | 17,383,002 |
STOCK-BASED COMPENSATION ( Stock Option Activity Under Plan) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock based compensation expenses | $ 152 | ||
Stock Option Plan | Employees | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock based compensation expenses | 12,687 | $ 3,011 | $ 420 |
Cost of goods sold | Stock Option Plan | Employees | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock based compensation expenses | 1,171 | 43 | 11 |
Research and development | Stock Option Plan | Employees | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock based compensation expenses | 3,489 | 501 | 121 |
Sales and marketing | Stock Option Plan | Employees | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock based compensation expenses | 4,685 | 470 | 196 |
General and administrative | Stock Option Plan | Employees | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock based compensation expenses | $ 3,342 | $ 1,997 | $ 92 |
STOCK-BASED COMPENSATION ( Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Employees | ||
Number of options | ||
Outstanding at the beginning of the period (in shares) | 11,122,648 | |
Transfer between employee and consultant (in shares) | 40,118 | |
Granted (in shares) | 2,105,258 | |
Granted in acquisition (in shares) | 949,893 | |
Forfeited (in shares) | (355,998) | |
Expired (in shares) | (26,089) | |
Exercised (in shares) | (3,149,387) | |
Outstanding at the end of the period (in shares) | 10,686,443 | 11,122,648 |
Exercisable options at the end of the period (in shares) | 6,687,488 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding at the beginning of the period (in USD per share) | $ 0.82 | |
Transfer between employee and consultant (in USD per share) | 0.64 | |
Granted (in USD per share) | 2.10 | |
Granted in acquisition (in USD per share) | 0.31 | |
Forfeited (in USD per share) | 1.60 | |
Expired (in USD per share) | 1.37 | |
Exercised (in USD per share) | 0.30 | |
Outstanding at the end of the period (in USD per share) | 1.15 | $ 0.82 |
Exercisable exercise price at the end of the period (in USD per share) | $ 0.75 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | ||
Outstanding option, weighted average remaining contractual term (in years) | 6 years 10 months 6 days | 6 years 10 months 13 days |
Outstanding exercisable, weighted average remaining contractual term (in years) | 5 years 9 months 7 days | |
Outstanding intrinsic value at the beginning of the period | $ 64,818 | |
Outstanding intrinsic value at the end of the period | 5,923 | $ 64,818 |
Outstanding exercisable intrinsic value at the end of the period | $ 6,409 | |
Consultants | ||
Number of options | ||
Outstanding at the beginning of the period (in shares) | 179,627 | |
Transfer between employee and consultant (in shares) | 40,118 | |
Granted (in shares) | 0 | |
Forfeited (in shares) | (460) | |
Expired (in shares) | (209) | |
Exercised (in shares) | (69,298) | |
Outstanding at the end of the period (in shares) | 69,542 | 179,627 |
Exercisable options at the end of the period (in shares) | 64,524 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding at the beginning of the period (in USD per share) | $ 0.31 | |
Transfer between employee and consultant (in USD per share) | 0.64 | |
Granted (in USD per share) | 0 | |
Forfeited (in USD per share) | 2.81 | |
Expired (in USD per share) | 2.81 | |
Exercised (in USD per share) | 0.30 | |
Outstanding at the end of the period (in USD per share) | 0.47 | $ 0.31 |
Exercisable exercise price at the end of the period (in USD per share) | $ 0.46 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | ||
Outstanding option, weighted average remaining contractual term (in years) | 4 years 2 months 15 days | 2 years 4 months 2 days |
Outstanding exercisable, weighted average remaining contractual term (in years) | 3 years 11 months 4 days | |
Outstanding intrinsic value at the beginning of the period | $ 1,139 | |
Outstanding intrinsic value at the end of the period | 86 | $ 1,139 |
Outstanding exercisable intrinsic value at the end of the period | $ 81 |
STOCK-BASED COMPENSATION ( Fair Value of Each Option on The Date of Grant) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 65.00% | 79.00% | |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 4 years 3 months 21 days | 6 years 7 days | 6 years 1 month 9 days |
Risk free interest rate, minimum | 2.84% | 1.06% | 0.62% |
Risk free interest rate, maximum | 3.81% | 1.11% | 0.82% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 69.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 71.00% |
STOCK-BASED COMPENSATION - Restricted Stock Unit Activity (Details) - RSUs outstanding |
12 Months Ended |
---|---|
Dec. 31, 2022
$ / shares
shares
| |
Employees | |
Number of share units | |
Outstanding at the beginning of the year (in shares) | shares | 0 |
Granted (in shares) | shares | 9,329,639 |
Released (in shares) | shares | (96,884) |
Forfeited (in shares) | shares | (1,246,382) |
Outstanding at the ending of the year (in shares) | shares | 7,986,373 |
Weighted average grant date fair value | |
Outstanding at the beginning of the year (in USD per share) | $ / shares | $ 0 |
Granted (in USD per share) | $ / shares | 5.65 |
Released (in USD per share) | $ / shares | 5.90 |
Forfeited (in USD per share) | $ / shares | 5.97 |
Outstanding at the ending of the year (in USD per share) | $ / shares | $ 5.60 |
Consultants | |
Number of share units | |
Outstanding at the beginning of the year (in shares) | shares | 0 |
Granted (in shares) | shares | 176,151 |
Forfeited (in shares) | shares | (45,883) |
Outstanding at the ending of the year (in shares) | shares | 130,268 |
Weighted average grant date fair value | |
Outstanding at the beginning of the year (in USD per share) | $ / shares | $ 0 |
Granted (in USD per share) | $ / shares | 6.52 |
Forfeited (in USD per share) | $ / shares | 6.28 |
Outstanding at the ending of the year (in USD per share) | $ / shares | $ 6.60 |
FINANCE EXPENSES (INCOME), NET (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Paycheck Protection Program | |||
Short-Term Debt [Line Items] | |||
Debt related interest expense | $ 675 | $ 259 | $ 328 |
Warrant | |||
Short-Term Debt [Line Items] | |||
Unrealized gain (loss) from changes in the fair value | $ 14,671 | $ 3,819 |
INCOME TAXES - Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ (7,910) | $ (11,098) | $ 1,241 |
Foreign | (8,483) | 863 | (853) |
(Loss) profit before taxes | $ (16,393) | $ (10,235) | $ 388 |
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Current income tax provision (benefit): | |||
Domestic | $ 1,048 | $ (8) | $ 96 |
Foreign | 2,129 | 1,245 | 1,104 |
Total current income tax (benefit) provision | 3,177 | 1,237 | 1,200 |
Deferred income tax provision (benefit): | |||
Domestic | 0 | 0 | 0 |
Foreign | (1,160) | 0 | 0 |
Total deferred income tax (benefit) provision | (1,160) | 0 | 0 |
Total income tax (benefit) provision | $ 2,017 | $ 1,237 | $ 1,200 |
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Total income (loss) before income taxes | $ (16,393) | $ (10,235) | $ 388 |
US statutory rate | 21.00% | 21.00% | 21.00% |
Income taxed computed at U. S. federal statutory rate | $ (3,443) | $ (2,149) | $ 81 |
Foreign rate differential | 101 | (14) | (155) |
State and local income taxes, net | (239) | (359) | 207 |
Other non-deductible items | 546 | (37) | 140 |
GILTI | 2,892 | 308 | 0 |
Change in valuation allowance | 2,305 | 1,493 | 159 |
Tax credits | (474) | (338) | (469) |
Changes in uncertain tax positions | 1,202 | 881 | 956 |
Transaction costs | 1,427 | 578 | 0 |
Warrants - MTM | (3,081) | 160 | (5) |
Other | 781 | 714 | 286 |
Total income tax (benefit) provision | $ 2,017 | $ 1,237 | $ 1,200 |
Effective income tax rate | (12.30%) | (12.10%) | 309.00% |
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Deferred tax assets | ||
Loss carryforwards | $ 11,093 | $ 10,201 |
Tax credits | 1,271 | 1,128 |
Interest limitation carryforwards | 0 | 25 |
R&D capitalization costs | 7,497 | 0 |
Accrued expenses | 1,157 | 597 |
Share-based compensation | 4,398 | 127 |
Fixed assets | 147 | 180 |
Lease liabilities | 700 | 0 |
Other | 28 | 187 |
Total deferred tax assets, gross | 26,291 | 12,445 |
Valuation allowance | (18,697) | (12,445) |
Total deferred tax assets, net | 7,594 | 0 |
Deferred tax liabilities | ||
Intangibles | (7,239) | 0 |
Right-of-use asset | (654) | 0 |
Other | (190) | 0 |
Total deferred tax liability, net | (8,083) | 0 |
Total deferred tax asset (liability) | $ (489) | |
Total deferred tax asset (liability) | $ 0 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Operating Loss Carryforwards [Line Items] | ||||
Undistributed foreign subsidiaries | $ 12,888 | $ 8,720 | ||
Amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 1,237 | 1,224 | ||
Unrecognized tax benefits | 5,456 | 3,162 | $ 2,373 | $ 1,438 |
Interest on income taxes accrued | 471 | $ 136 | ||
TV Squared | ||||
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits | $ 1,495 |
INCOME TAXES - Operating Loss Carryforwards (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 53,677 | $ 74,198 |
Domestic NOLs (federal) | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 11,881 | 36,817 |
Domestic NOLs (state and local) | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 10,992 | 36,245 |
Foreign NOLs | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 30,804 | $ 1,136 |
INCOME TAXES - Income Tax Contingencies (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits, beginning balance | $ 3,162 | $ 2,373 | $ 1,438 |
Increases - prior year tax positions | 60 | 508 | 0 |
Decreases - prior year tax positions | (231) | (410) | 0 |
Increases - current year tax positions | 2,562 | 691 | 935 |
Position expiration | (97) | 0 | 0 |
Gross unrecognized tax benefits, ending balance | $ 5,456 | $ 3,162 | $ 2,373 |
SEGMENT REPORTING - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
SEGMENT REPORTING (Revenue and Property and Equipment, by Geographical Areas) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 127,117 | $ 90,291 | $ 68,801 |
Long-lived tangible assets | 17,232 | 4,840 | |
US | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 114,528 | 81,882 | 62,760 |
Long-lived tangible assets | 14,065 | 3,051 | |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,266 | 1,039 | 518 |
APAC | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 4,249 | 3,151 | 2,636 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 6,030 | 2,515 | 1,463 |
LATAM | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,044 | 1,704 | $ 1,424 |
Israel | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived tangible assets | 2,707 | 1,495 | |
Rest of the World | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived tangible assets | $ 460 | $ 294 |
BASIC AND DILUTED NET LOSS PER SHARE (Basic and Diluted Net loss Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
Numerator: | |||||
Net loss | $ (18,410) | $ (11,472) | $ (812) | ||
Accretion of preferred stocks to redemption value | 0 | (77,063) | (7,297) | ||
Net loss attributable to common stockholders, basic | (18,410) | (88,535) | (8,109) | ||
Net loss attributable to common stockholders, diluted | $ (18,410) | $ (88,535) | $ (8,109) | ||
Denominator: | |||||
Weighted-average number of stocks used in computing net loss per stock attributable to common stockholders, basic (in shares) | [1] | 130,756,484 | 26,745,020 | 16,028,560 | |
Weighted-average number of stocks used in computing net loss per stock attributable to common stockholders, diluted (in shares) | [1] | 130,756,484 | 26,745,020 | 16,028,560 | |
Net loss per stock attributable to common stockholders – basic (in dollars per share) | [1] | $ (0.14) | $ (3.31) | $ (0.51) | |
Net loss per stock attributable to common stockholders – diluted (in dollars per share) | [1] | $ (0.14) | $ (3.31) | $ (0.51) | |
|
BASIC AND DILUTED NET LOSS PER SHARE (Narrative) (Details) |
Dec. 31, 2022 |
Nov. 30, 2021 |
---|---|---|
Earnings Per Share [Abstract] | ||
Exchange ratio | 1.337 | 1.337 |
BASIC AND DILUTED NET LOSS PER SHARE (Securities Excluded from Computation of Earnings Per Share) (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Preferred stocks | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 0 | 0 | 73,690,340 |
Options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 10,755,985 | 11,302,275 | 13,204,528 |
RSUs outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 8,116,641 | 0 | 0 |
Warrants outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from computation of earnings per share (in shares) | 10,222,500 | 10,222,500 | 680,271 |
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