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

Quarterly report pursuant to Section 13 or 15(d)

Consolidated Financial Statements Details

Consolidated Financial Statements Details

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Consolidated Financial Statements Details

NOTE 7. CONSOLIDATED FINANCIAL STATEMENTS DETAILS

Consolidated Balance Sheets Details

Cash, cash equivalents, and restricted cash

Cash, cash equivalents, and restricted cash consisted of the following:

	As of
	September 30,		December 31,
	2019		2018
Cash and cash equivalents	$	49,188	$	37,539
Long-term restricted cash		1,156		1,237
Total cash, cash equivalents and restricted cash	$	50,344	$	38,776

The Company’s restricted cash is held as collateral for the Company’s stand-by letter of credit and credit cards.

Accounts Receivable, Net

Accounts receivable consisted of the following:

	As of
	September 30,			December 31,
	2019			2018
Accounts receivable — Advertising	$	25,777		$	26,226
Accounts receivable — aiWARE SaaS Solutions		2,721			2,418
Accounts receivable — aiWARE Content Licensing and Media Services		476			538
		28,974			29,182
Less: allowance for doubtful accounts		(42	)		(40	)
Accounts receivable, net	$	28,932		$	29,142

The amount that the Company invoices and collects from advertising clients includes the cost of the advertisement placed for them with media vendors and the amount of the commission earned by the Company. The average commission earned by the Company is less than 15% of the total amount invoiced and collected from the advertising clients.

Property, equipment and improvements, net

Property, equipment and improvements, net consisted of the following:

	As of
	September 30,			December 31,
	2019			2018
Property and equipment	$	2,232		$	2,019
Leasehold improvements		2,876			2,875
		5,108			4,894
Less: accumulated depreciation		(1,644	)		(886	)
Property, equipment and improvements, net	$	3,464		$	4,008

Depreciation expense was $271 and $822 for the three and nine months ended September 30, 2019, respectively. Depreciation expense was $236 and $451 for the three and nine months ended September 30, 2018, respectively.

Accounts Payable

Accounts payable consisted of the following:

	As of
	September 30,		December 31,
	2019		2018
Accounts payable — Advertising	$	20,820	$	27,655
Accounts payable — Other		2,612		1,059
Total	$	23,432	$	28,714

Accounts payable – Advertising reflects the cost of advertisements placed with media vendors on behalf of the Company’s advertising clients.

Consolidated Statement of Operations and Comprehensive Loss Details

Net Revenues

Net revenues for the periods presented were comprised of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Advertising	$	6,291	$	4,730	$	17,847	$	11,159
aiWARE SaaS Solutions		2,350		1,406		7,781		3,533
aiWARE Content Licensing and Media Services		4,164		1,409		11,572		1,409
Total net revenues	$	12,805	$	7,545	$	37,200	$	16,101

During the three and nine months ended September 30, 2019, the Company made $55,799 and $158,370, respectively, in gross media placements, of which $51,429 and $147,989 respectively, were billed directly to clients. Of the amounts billed directly to clients, $45,668 and $131,345 represented media-related costs netted against billings during the three and nine months ended September 30, 2019, respectively.

During the three and nine months ended September 30, 2018, the Company made $42,087 and $102,959, respectively, in gross media placements, of which $34,521 and $86,416, respectively, were billed directly to clients. Of the amounts billed directly to clients, $30,225 and $75,690 represented media-related costs netted against billings during the three and nine months ended September 30, 2018, respectively.

Other Income, Net

Other income, net for the periods presented was comprised of the following:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Interest income, net	$	133		$	246		$	462		$	596
Change in fair value of warrant liability		57			108			7			93
Other		(6	)		(25	)		(23	)		(44	)
Other income, net	$	184		$	329		$	446		$	645