Veritone, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2017

Net revenues for the three-month periods presented were comprised of the following:


	Three Months Ended March 31,
	2017		2016
Media agency revenues	$	2,899	$	2,036
AI platform revenues		209		40

Total net revenues	$	3,108	$	2,076

Computation of Basic and Diluted Net Loss Per Common Share

The following table presents the computation of basic and diluted net loss per common share:


	Three Months Ended March 31,
	2017			2016
Historical net loss per share
Numerator
Net loss	$	(5,847	)	$	(3,963	)
Accretion of redeemable convertible preferred stock		(1,073	)		(794	)

Net loss attributable to common stockholders	$	(6,920	)	$	(4,757	)

Denominator
Weighted-average common shares outstanding		2,577,919			1,305,866
Less: Weighted-average shares subject to repurchase		(338,527	)		(74,641	)

Denominator for basic and diluted net loss per share attributable to common stockholders		2,239,392			1,231,225

Basic and diluted net loss per share attributable to common stockholders	$	(3.09	)	$	(3.86	)

Effect of Anti-dilutive Securities

Potentially dilutive securities that were not included in the calculation of diluted net loss per share attributable to common stockholders because their effect would be anti-dilutive are as follows (in common equivalent shares):


	Three Months Ended March 31,
	2017		2016
Common stock subject to repurchase		175,555		70,076
Common stock options		656,116		756,128
Warrants to purchase common stock		2,383,815		—
Shares issuable upon conversion of the Acacia Note		1,512,392		—
Shares issuable upon conversion of Bridge Loan		147,302		—
Shares issuable upon conversion of redeemable convertible preferred stock		5,181,416		4,798,613

		10,056,596		5,624,817

Summary of Quantitative Information with Respect to Significant Unobservable Inputs

The following table summarizes quantitative information with respect to the significant unobservable inputs used for the Company’s stock warrants that are categorized as Level 3 within the fair value hierarchy:


	March 31, 2017
Volatility		65.0	%
Risk free rate		0.92	%
Discount for lack of marketability		10.0	%

Reconciliation of Level 3 Measurement of Company's Primary Warrant

The following table represents a reconciliation of the Level 3 measurement of the Company’s Primary Warrant (see related discussion in Note 3):


Balance, December 31, 2016	$	7,114
Less: Change in fair value of warrant liability		(3,118	)

Balance, March 31, 2017	$	3,996