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

6 Months Ended

Jun. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Consolidated Financial Statements Details

NOTE 6. CONSOLIDATED FINANCIAL STATEMENTS DETAILS

Consolidated Balance Sheets Details

Accounts Receivable, Net

Accounts receivable consisted of the following:

	As of
	June 30,			December 31,
	2020			2019
Accounts receivable — Advertising	$	21,748		$	19,184
Accounts receivable — aiWARE SaaS Solutions		2,426			1,269
Accounts receivable — aiWARE Content Licensing and Media Services		606			928
		24,780			21,381
Less: allowance for doubtful accounts		(245	)		(29	)
Accounts receivable, net	$	24,535		$	21,352

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, net consisted of the following:

	As of
	June 30,			December 31,
	2020			2019
Property and equipment	$	2,277		$	2,247
Leasehold improvements		2,876			2,876
		5,153			5,123
Less: accumulated depreciation		(2,421	)		(1,909	)
Property, equipment and improvements, net	$	2,732		$	3,214

Depreciation expense was $256 and $512 for the three and six months ended June 30, 2020, respectively. Depreciation expense was $263 and $555 for the three and six months ended June 30, 2019, respectively.

Accounts Payable

Accounts payable consisted of the following:

	As of
	June 30,		December 31,
	2020		2019
Accounts payable — Advertising	$	19,399	$	15,697
Accounts payable — Other		1,099		1,317
Total	$	20,498	$	17,014

Accounts payable – Advertising reflects the amounts due to broadcasters for advertisements placed 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				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Advertising	$	7,038	$	5,842	$	13,039	$	11,556
aiWARE SaaS Solutions		3,002		2,677		6,110		5,431
aiWARE Content Licensing and Media Services		3,228		3,751		6,023		7,408
Total net revenues	$	13,268	$	12,270	$	25,172	$	24,395

During the three and six months ended June 30, 2020, the Company made $54,524 and $109,248, respectively, in gross media placements, of which $50,697 and $100,743 respectively, were billed directly to clients. Of the amounts billed directly to clients, $45,011 and $89,646 represented media-related costs netted against billings during the three and six months ended June 30, 2020, respectively.

During the three and six months ended June 30, 2019, the Company made $52,973 and $103,755, respectively, in gross media placements, of which $48,676 and $97,744 respectively, were billed directly to clients. Of the amounts billed directly to clients, $43,125 and $86,712 represented media-related costs netted against billings during the three and six months ended June 30, 2019, respectively.

Disaggregated Revenue

Net revenues disaggregated were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Advertising (by service type):
Agency	$	6,140	$	5,842	$	12,021	$	11,556
VeriAds		898		-		1,018		-
Sub-total		7,038		5,842		13,039		11,556
aiWARE SaaS Solutions (by market):
Media and Entertainment		2,612		2,470		5,224		4,705
Government, Legal and Compliance	139		207			635	726
Other Markets	251			-		251		-
Sub-total		3,002		2,677		6,110		5,431
aiWARE Content Licensing and Media Services (by service type):
Content Licensing		3,228		3,454		6,023		7,108
Media Services		-	297			-	300
Sub-total		3,228		3,751		6,023		7,408
Total net revenues	$	13,268	$	12,270	$	25,172	$	24,395

Other Income (Expense), Net

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Interest income, net	$	5		$	160		$	82		$	329
Change in fair value of warrant liability		(202	)		(37	)		(200	)		(50	)
Other		(38	)		(72	)		14			(17	)
Other income (expense), net	$	(235	)	$	51		$	(104	)	$	262