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

Provision for Income Taxes (Tables)

Provision for Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The provision for income taxes consisted of the following for the years ended December 31, 2017 and 2016:


	Year Ended December 31,
	2017			2016
Current:
Federal	$	—		$	—
State		6			6

Total current		6			6

Deferred:
Federal		(7,216	)		(6,658	)
State		(1,210	)		42

Total deferred		(8,426	)		(6,616	)

Change in valuation allowance		8,426			6,616

Total deferred		—			—

Provision for income taxes	$	6		$	6

Components of Deferred Income Tax Assets and Liabilities

The significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2017 and 2016 were as follows:


	As of December 31, 2017			As of December 31, 2016
Deferred tax assets:
Net operating loss carryforwards and credits	$	13,844		$	11,401
Stock-based compensation		3,416			—
Accrued expenses		445			301
Research credits		490			—
Other		83			66

		18,278			11,768

Deferred tax liabilities:
State taxes		—			—
Convertible note payable		—			(1,823	)
Stock-based compensation		—			(94	)

		—			(1,917	)

Valuation allowance		(18,278	)		(9,851	)

Total deferred tax liabilities	$	—		$	—

Difference Between Income Tax Expense at Federal Statutory Rate and Company's Effective Tax Rate

The difference between the income tax expense at the federal statutory rate and the Company’s effective tax rate from the Company’s continuing operations is as follows:


	December 31, 2017			December 31, 2016
Federal statutory rate		34.00	%		34.00	%
State income tax rate, net of Federal tax benefit		1.28			(0.14	)
Mark to market adjustment on stock warrants		4.06			1.22
Meals and entertainment and other		1.67			1.16
Debt discount amortization		(2.42	)		—
Loss on stock warrants issued		(3.30	)		—
Loss on write-off of deferred debt discount		(5.78	)		—
Change in valuation allowance		(12.61	)		(36.22	)
Rate change due to tax law change		(16.89	)		—

Effective tax rate		0.01	%		0.02	%