NOTE 6. RELATED PARTY TRANSACTIONS

In October 2014, the Company and Steel Ventures, LLC (“SVL”), an affiliated company whose shareholder has significant control over the Company, entered into an Intercompany Administrative Services Agreement (the “Service Agreement”) effective October 1, 2014 for a two-year period, with two two-year renewal options. Pursuant to the Service Agreement, SVL agreed to make its executive management, professional, technical and clerical employees available to the Company to assist in the operation and administration of the Company’s business. In addition, SVL agreed to make other services available to the Company through parties other than SVL’s personnel. In consideration for the above, SVL invoiced the Company allocable costs based on a predefined allocation methodology. During the three months ended March 31, 2016, the Company incurred fees of $413 for services received under the Service Agreement and as of December 31, 2016, the Company had a payable balance of $0 to SVL. This agreement expired by its term in September 2016, and so no fees were incurred under such agreement during the three months ended March 31, 2017.

In August 2016, the Company entered into an Investment Agreement with Acacia that provides for Acacia to invest up to $50,000 in Veritone consisting of both debt and equity components (refer to the Prospectus for the full discussion of the Investment Agreement). In addition, as discussed in Note 3, in March 2017, the Company and Acacia agreed to amend the terms of the Acacia Primary Warrant, the three $700 warrants related to the convertible notes payable, and the 10% Warrant such that the exercise price of such warrants will be equal to the lower of $13.6088 or the IPO price per share to the public. Acacia’s Chairman of the Board is a member of the Company’s Board of Directors.

As discussed in Note 3, in connection with the Bridge Loan, the Company entered into a Note Purchase Agreement with Acacia and VLOC. Acacia’s Chairman of the Board is a member of the Company’s Board of Directors and Chad Steelberg and Ryan Steelberg, who are executive officers of the Company, collectively own 50% of VLOC’s membership interests.

In March 2017, the Company entered into employment agreements with Chad Steelberg and Ryan Steelberg, who are executive officers of the Company (see Note 7 for the full discussions of the agreements).

The Company reimburses Chad Steelberg and Ryan Steelberg for the costs of their healthcare plans. For the three months ended March 31, 2017 and 2016, the Company expensed $14 and $30 for the cost of such plans, respectively. As of March 31, 2017 and December 31, 2016, the Company had recorded an accrual of $88 and $73, respectively, related to these healthcare plans.

There were no other related party balances and transactions as of and for the three months ended March 31, 2017.