Annual report pursuant to Section 13 and 15(d)

Consolidated Financial Statements Details

v3.20.1
Consolidated Financial Statements Details
12 Months Ended
Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Consolidated Financial Statements Details

NOTE 7. CONSOLIDATED FINANCIAL STATEMENTS DETAILS

Consolidated Balance Sheets Details

Accounts Receivable, Net

Accounts receivable consisted of the following:

 

 

 

As of

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Accounts receivable Advertising

 

$

19,184

 

 

$

26,226

 

Accounts receivable aiWARE SaaS Solutions

 

 

1,269

 

 

 

2,418

 

Accounts receivable aiWARE Content Licensing and Media Services

 

 

928

 

 

 

538

 

 

 

 

21,381

 

 

 

29,182

 

Less: allowance for doubtful accounts

 

 

(29

)

 

 

(40

)

Accounts receivable, net

 

$

21,352

 

 

$

29,142

 

 

The amount that the Company invoices and collects from advertising clients includes the cost of the advertisement placed for them with broadcasters 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 consisted of the following:

 

 

 

As of

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Property and equipment

 

$

2,247

 

 

$

2,019

 

Leasehold improvements

 

 

2,876

 

 

 

2,875

 

 

 

 

5,123

 

 

 

4,894

 

Less: accumulated depreciation

 

 

(1,909

)

 

 

(886

)

Property, equipment and improvements, net

 

$

3,214

 

 

$

4,008

 

 

Depreciation expense was $1,087 and $725 for the years ended December 31, 2019 and 2018, respectively.

Accounts Payable

Accounts payable consisted of the following:

 

 

 

As of

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Accounts payable Advertising

 

$

15,697

 

 

$

27,655

 

Accounts payable Other

 

 

1,299

 

 

 

1,059

 

Total

 

$

16,996

 

 

$

28,714

 

 

Accounts payable – Advertising reflects the amounts due to broadcasters for advertisements placed on behalf of the Company’s advertising clients.

 

Consolidated Statements of Operations and Comprehensive Loss Details

Net Revenues

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

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Advertising

 

$

24,364

 

 

$

17,146

 

aiWARE Content Licensing and Media Services

 

 

14,631

 

 

 

3,943

 

aiWARE SaaS Solutions

 

 

10,653

 

 

 

5,958

 

Total net revenues

 

$

49,648

 

 

$

27,047

 

 

During the years ended December 31, 2019 and 2018, the Company’s advertising business made $216,483 and $145,352 in gross media placements, of which $200,709 and $121,143, respectively, were billed directly to clients. Of the amounts billed directly to clients, $177,930 and $105,737 represented media-related costs netted against billings during the years ended December 31, 2019 and 2018, respectively.

 

Disaggregated Revenue in 2019

 

Net revenues disaggregated for the year ended December 31, 2019 were as follows:

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2019

 

Advertising

 

$

24,364

 

aiWARE Content Licensing and Media Services (by service type):

 

 

 

 

Content Licensing

 

 

13,738

 

Media Services

 

893

 

Sub-total

 

 

14,631

 

aiWARE SaaS Solutions (by market):

 

 

 

 

Media and Entertainment

 

 

9,735

 

Government, Legal and Compliance

 

918

 

Sub-total

 

 

10,653

 

Total net revenues

 

$

49,648

 

 

 

 

 

 

 

Other Income, Net

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

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Interest income, net

 

$

549

 

 

$

803

 

Change in fair value of warrant liability

 

 

16

 

 

 

184

 

Other

 

 

(24

)

 

 

(79

)

Other income, net

 

$

541

 

 

$

908