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

Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments (Tables)

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

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 and cash equivalents and marketable securities as of March 31, 2018:


	Cost		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	4,590	$	—		$	4,590	$	4,590	$	—
Level 1:
Money market funds		16,436		—			16,436		16,436		—
Level 2:
U.S. government securities		4,501		(19	)		4,482		—		4,482
Commercial paper		2,992		(5	)		2,987		—		2,987
Corporate debt securities		26,196		(173	)		26,023		—		26,023

Corporate securities		33,689		(197	)		33,492		—		33,492

Total	$	54,715	$	(197	)	$	54,518	$	21,026	$	33,492

As of December 31, 2017, the Company’s cash and cash equivalents and marketable securities balances were as follows:


	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 paper		4,959		(5	)		4,954		—		4,954
Corporate debt securities		30,268		(112	)		30,156		—		30,156

Corporate securities		39,732		(134	)		39,598		—		39,598

Total	$	69,277	$	(134	)	$	69,143	$	29,545	$	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 that were used to value these stock warrants that were modified in the three months ended March 31, 2017. These inputs are categorized as Level 3 within the fair value hierarchy:


		March 31, 2017
Volatility		65%
Risk-free rate		0.92% - 1.64%
Discount for lack of marketability		10%

The following table summarizes quantitative information with respect to the significant unobservable inputs used for the valuation of the Company’s warrants which were issued to the Bridge Loan Lenders; these inputs are categorized as Level 3 within the fair value hierarchy:


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

Reconciliation of Level 3 Measurement of Company's Primary Warrant

The following table represents a rollforward of the fair value of the Primary Warrant in the three months ended March 31, 2017:


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

Balance, March 31, 2017	$	3,996