Veritone, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Financial Instruments (Tables)

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Investments, All Other Investments [Abstract]

Schedule of Cash and Available-For-Sale Securities' Cost, Gross Unrealized Losses and Fair Value by Significant Investment Category

The following table shows the cost, gross unrealized losses and fair value, with a breakdown by significant investment category, of the Company’s cash, cash equivalents and marketable securities as of December 31, 2017:


	Cost		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	8,925	$	—		$	8,925	$	8,925	$	—
Level 1:
Money market funds		20,620		—			20,620		20,620		—
Level 2:
U.S. government securities		4,505		(17	)		4,488		—		4,488
Commercial papers		4,959		(5	)		4,954		—		4,954
Corporate debt securities		30,268		(112	)		30,156		—		30,156

Subtotal		39,732		(134	)		39,598		—		39,598

Total	$	69,277	$	(134	)	$	69,143	$	29,545	$	39,598

Schedule of Maturities of Marketable Securities

As of December 31, 2017, the respective maturities of the Company’s marketable securities were as follows:


	Cost		Fair Value
Due in one year or less	$	26,004	$	25,950
Due after one year through five years		13,728		13,648

Total	$	39,732	$	39,598

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 Primary Warrant that is categorized within the Level 3 fair value hierarchy:


	December 31, 2016
Volatility		80	%
Risk free rate		1.84	%
Discount for lack of marketability		20	%

The following table summarizes quantitative information with respect to the significant unobservable inputs used for the Company’s Acacia Note Warrants that are categorized within the Level 3 fair value hierarchy as of December 31, 2016:


	First Tranche			Second Tranche
Volatility		80	%		80	%
Risk free rate		1.61	%		1.68	%
Discount for lack of marketability		20	%		20	%

As a result, the following quantitative information was used to determine the fair value of the Company’s Acacia Note Warrants as of March 31, 2017:


	First Tranche			Second Tranche
Volatility		65	%		65	%
Risk free rate		1.58	%		1.64	%
Discount for lack of marketability		10	%		10	%

The following table summarizes quantitative information with respect to the significant unobservable inputs used for the Company’s Bridge Loan Warrants which were issued to the Bridge Loan Lenders in March 2017, April 2017 and May 2017 that are categorized within the Level 3 fair value hierarchy:


Volatility			70%
Risk free rate			2.40%
Discount for lack of marketability			10%

The following table summarizes quantitative information with respect to the significant unobservable inputs used for the Company’s 10% Warrant that is also categorized as Level 3 within the fair value hierarchy:


	May 17, 2017
Volatility		70	%
Risk free rate		1.44	%
Discount for lack of marketability		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:


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

Balance, December 31, 2017	$	—