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

Annual report pursuant to Section 13 and 15(d)

Consolidated Financial Statements Details

Consolidated Financial Statements Details

12 Months Ended

Dec. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Consolidated Financial Statements Details

NOTE 6. CONSOLIDATED FINANCIAL STATEMENTS DETAILS

Consolidated Balance Sheets Details

Cash and cash equivalents

As of December 31, 2020 and December 31, 2019, the Company had cash and cash equivalents of $114,817 and $44,065, respectively, including $40,052 and $15,003, respectively, of cash received from advertising clients and content licensees for future payments to vendors.

Accounts Receivable, Net

Accounts receivable consisted of the following:

	As of
	December 31,			December 31,
	2020			2019
Accounts receivable — Advertising	$	12,641		$	19,184
Accounts receivable — Other		4,143			2,197
		16,784			21,381
Less: allowance for doubtful accounts		(118	)		(29	)
Accounts receivable, net	$	16,666		$	21,352

The amount that the Company invoices and collects from advertising clients includes the cost of the advertisements placed for them with media vendors and the amount of the fee earned by the Company. The average fees earned by the Company is typically 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,
	2020			2019
Property and equipment	$	2,365		$	2,247
Leasehold improvements		2,899			2,876
		5,264			5,123
Less: accumulated depreciation		(2,910	)		(1,909	)
Property, equipment and improvements, net	$	2,354		$	3,214

Depreciation expense was $1,025 and $1,087 for the years ended December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, the Company disposed of $34 in property, equipment, and improvements and recorded a $10 loss on disposal.

Accounts Payable

Accounts payable consisted of the following:

	As of
	December 31,		December 31,
	2020		2019
Accounts payable — Advertising	$	14,667	$	15,697
Accounts payable — Other		965		1,317
Total	$	15,632	$	17,014

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

Consolidated Statements of Operations and Comprehensive Loss Details

Revenue

Revenue for the periods presented were comprised of the following:

	Year Ended
	December 31,
	2020		2019
Advertising	$	31,550	$	24,364
aiWARE SaaS Solutions		13,863		10,653
aiWARE Content Licensing and Media Services		12,295		14,631
Total revenue	$	57,708	$	49,648

During the years ended December 31, 2020 and 2019, the Company’s advertising business made $257,817 and $216,483 in gross media placements, of which $237,883 and $200,709, respectively, were billed directly to clients. Of the amounts billed directly to clients, $212,273 and $177,930 represented media-related costs netted against billings during the years ended December 31, 2020 and 2019, respectively.

Disaggregated Revenue

Revenue disaggregated was as follows:

	Year Ended
	December 31,
	2020		2019
Advertising (by service type):
Agency	$	27,531	$	24,270
VeriAds		4,019		94
Sub-total		31,550		24,364
aiWARE SaaS Solutions (by market):
Media and Entertainment		10,804		9,735
Government, Legal and Compliance		1,944	918
Other Markets		1,115		-
Sub-total		13,863		10,653
aiWARE Content Licensing and Media Services (by service type):
Content Licensing		11,673		13,738
Media Services	622		893
Sub-total		12,295		14,631
Total revenue	$	57,708	$	49,648

Other (Expense) Income, Net

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

	Year Ended
	December 31,
	2020			2019
Interest income, net	$	85		$	549
Change in fair value of warrant liability		(200	)		16
Other		(12	)		(24	)
Other (expense) income, net	$	(127	)	$	541