(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||||||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||||||||||||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||||||||||||||||||||||||||||||||
Exhibit No | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
INNOVID CORP. | ||||||||||||||||||||||||||||||||||||||||||||
Date: November 8, 2023 | By: | /s/ Anthony Callini | ||||||||||||||||||||||||||||||||||||||||||
Name: | Anthony Callini | |||||||||||||||||||||||||||||||||||||||||||
Title: | Chief Financial Officer |
September 30, 2023 | December 31, 2022 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 47,680 | $ | 37,541 | |||||||
Short-term bank deposits | — | 10,000 | |||||||||
Trade receivables, net (allowance for credit losses of $270 and $65 at September 30, 2023, and December 31, 2022, respectively) | 43,559 | 43,653 | |||||||||
Prepaid expenses and other current assets | 3,905 | 2,640 | |||||||||
Total current assets | 95,144 | 93,834 | |||||||||
Long-term deposit | 253 | 277 | |||||||||
Long-term restricted deposits | 387 | 430 | |||||||||
Property and equipment, net | 18,097 | 14,322 | |||||||||
Goodwill | 102,473 | 116,976 | |||||||||
Intangible assets, net | 26,529 | 29,918 | |||||||||
Operating lease right of use asset | 1,559 | 2,910 | |||||||||
Other non-current assets | 787 | 938 | |||||||||
Total non-current assets | 150,085 | 165,771 | |||||||||
TOTAL ASSETS | $ | 245,229 | $ | 259,605 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Trade payables | 3,325 | 3,361 | |||||||||
Employees and payroll accruals | 11,935 | 10,165 | |||||||||
Lease liabilities - current portion | 1,325 | 2,186 | |||||||||
Accrued expenses and other current liabilities | 5,183 | 5,474 | |||||||||
Total current liabilities | 21,768 | 21,186 | |||||||||
Long-term debt | 20,000 | 20,000 | |||||||||
Lease liabilities - non-current portion | 814 | 1,636 | |||||||||
Other non-current liabilities | 9,113 | 6,554 | |||||||||
Warrants liability | 613 | 4,301 | |||||||||
Total non-current liabilities | 30,540 | 32,491 | |||||||||
TOTAL LIABILITIES | 52,308 | 53,677 | |||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | |||||||||||
Common stock: $0.0001 par value - Authorized: 500,000,000 at September 30, 2023, and December 31, 2022; Issued and outstanding: 140,136,905 and 133,882,414 at September 30, 2023, and December 31, 2022, respectively | 13 | 13 | |||||||||
Additional paid-in capital | 374,047 | 356,801 | |||||||||
Accumulated deficit | (181,139) | (150,886) | |||||||||
Total stockholders’ equity | 192,921 | 205,928 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 245,229 | $ | 259,605 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||
Revenues | $ | 36,234 | $ | 34,469 | $ | 101,265 | $ | 93,419 | |||||||||||||||
Cost of revenues (1) | 8,428 | 8,534 | 25,284 | 21,811 | |||||||||||||||||||
Research and development (1) | 6,486 | 7,312 | 20,479 | 24,276 | |||||||||||||||||||
Sales and marketing (1) | 11,175 | 13,726 | 34,272 | 38,397 | |||||||||||||||||||
General and administrative (1) | 9,753 | 9,046 | 28,327 | 30,456 | |||||||||||||||||||
Depreciation, amortization and long-lived assets impairment | 4,714 | 1,882 | 8,808 | 3,481 | |||||||||||||||||||
Goodwill impairment | — | — | 14,503 | — | |||||||||||||||||||
Operating loss | (4,322) | (6,031) | (30,408) | (25,002) | |||||||||||||||||||
Finance (income) expenses, net | (290) | 4,962 | (3,013) | (10,655) | |||||||||||||||||||
Loss before taxes | (4,032) | (10,993) | (27,395) | (14,347) | |||||||||||||||||||
Taxes on income | (1,301) | 839 | 2,858 | 634 | |||||||||||||||||||
Net loss | (2,731) | (11,832) | (30,253) | (14,981) | |||||||||||||||||||
Net loss attributable to common stockholders | $ | (2,731) | $ | (11,832) | $ | (30,253) | $ | (14,981) | |||||||||||||||
Net (loss) income per stock attributable to common stockholders | |||||||||||||||||||||||
Basic and diluted | $ | (0.02) | $ | (0.09) | $ | (0.22) | $ | (0.12) | |||||||||||||||
Weighted-average number of stock used in computing net (loss) income per stock attributable to common stockholders | |||||||||||||||||||||||
Basic and diluted | 139,607,389 | 132,959,511 | 137,826,099 | 129,768,724 |
Common stock | Additional paid-in capital | Accumulated deficit | Total stockholders’ equity | ||||||||||||||
Number | Amount | ||||||||||||||||
Balance as of December 31, 2021 | 119,017,380 | $ | 12 | $ | 293,719 | $ | (132,476) | $ | 161,255 | ||||||||
Common stock and equity awards issued for acquisition of TVS | 11,549,465 | 1 | 47,151 | — | 47,152 | ||||||||||||
Stock-based compensation | — | — | 1,496 | — | 1,496 | ||||||||||||
Stock options exercised | 1,521,927 | — | 462 | — | 462 | ||||||||||||
Net loss | — | — | — | (7,449) | (7,449) | ||||||||||||
Balance as of March 31, 2022 (unaudited) | 132,088,772 | $ | 13 | $ | 342,828 | $ | (139,925) | $ | 202,916 | ||||||||
Stock-based compensation | — | — | 4,628 | — | 4,628 | ||||||||||||
Stock options exercised | 322,943 | — | 174 | — | 174 | ||||||||||||
Net income | — | — | — | 4,300 | 4,300 | ||||||||||||
Balance as of June 30, 2022 (unaudited) | 132,411,715 | $ | 13 | $ | 347,630 | $ | (135,625) | $ | 212,018 | ||||||||
Stock-based compensation | — | — | 4,612 | — | 4,612 | ||||||||||||
Stock options exercised and RSUs vested | 1,080,799 | — | 181 | — | 181 | ||||||||||||
Net loss | — | — | — | (11,832) | (11,832) | ||||||||||||
Balance as of September 30, 2022 (unaudited) | 133,492,514 | $ | 13 | $ | 352,423 | $ | (147,457) | $ | 204,979 | ||||||||
Common stock | Additional paid-in capital | Accumulated deficit | Total stockholders’ equity | ||||||||||||||
Number | Amount | ||||||||||||||||
Balance as of December 31, 2022 | 133,882,414 | $ | 13 | $ | 356,801 | $ | (150,886) | $ | 205,928 | ||||||||
Stock-based compensation | — | — | 4,897 | — | 4,897 | ||||||||||||
Stock options exercised and RSUs vested | 2,734,320 | — | 250 | — | 250 | ||||||||||||
Net loss | — | — | — | (8,563) | (8,563) | ||||||||||||
Balance as of March 31, 2023 (unaudited) | 136,616,734 | $ | 13 | $ | 361,948 | $ | (159,449) | $ | 202,512 | ||||||||
Stock-based compensation | — | — | 5,658 | — | 5,658 | ||||||||||||
Stock options exercised and RSUs vested | 2,120,370 | — | 364 | — | 364 | ||||||||||||
Net loss | — | — | — | (18,959) | (18,959) | ||||||||||||
Balance as of June 30, 2023 (unaudited) | 138,737,104 | $ | 13 | $ | 367,970 | $ | (178,408) | $ | 189,575 | ||||||||
Stock-based compensation | — | — | 5,919 | — | 5,919 | ||||||||||||
Stock options exercised and RSUs vested | 1,399,801 | — | 158 | — | 158 | ||||||||||||
Net loss | — | — | — | (2,731) | (2,731) | ||||||||||||
Balance as of September 30, 2023 (unaudited) | 140,136,905 | $ | 13 | $ | 374,047 | $ | (181,139) | $ | 192,921 | ||||||||
Nine Months Ended September 30 | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | (Unaudited) | (Unaudited) | |||||||||
Net loss | $ | (30,253) | $ | (14,981) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation, amortization and long-lived assets impairment | 8,808 | 3,481 | |||||||||
Goodwill impairment | 14,503 | — | |||||||||
Stock-based compensation | 15,470 | 9,956 | |||||||||
Change in fair value of warrants | (3,688) | (11,382) | |||||||||
Changes in operating assets and liabilities | |||||||||||
Trade receivables, net | 94 | (1,294) | |||||||||
Prepaid expenses and other current assets | (1,167) | 514 | |||||||||
Operating lease right of use assets | 1,351 | 1,332 | |||||||||
Trade payables | (36) | (1,032) | |||||||||
Employees and payroll accruals | 1,770 | 2,227 | |||||||||
Operating lease liabilities | (1,683) | (1,782) | |||||||||
Accrued expenses and other current liabilities | 2,268 | 2,872 | |||||||||
Net cash provided by / (used in) operating activities | 7,437 | (10,089) | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of business, net of cash acquired | — | (99,568) | |||||||||
Internal use software capitalization | (7,795) | (6,975) | |||||||||
Purchase of property and equipment | (395) | (282) | |||||||||
Withdrawal of short-term bank deposits | 10,000 | — | |||||||||
Increase in deposits | 77 | 38 | |||||||||
Net cash provided by / (used in) investing activities | 1,887 | (106,787) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from loans | 20,000 | 9,000 | |||||||||
Repayment of loans | (20,000) | — | |||||||||
Payment of SPAC merger transaction costs | — | (3,185) | |||||||||
Proceeds from exercise of options | 772 | 817 | |||||||||
Net cash provided by financing activities | 772 | 6,632 | |||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | 10,096 | (110,243) | |||||||||
Cash, cash equivalents, and restricted cash at the beginning of the period | 37,971 | 157,158 | |||||||||
Cash, cash equivalents, and restricted cash at the end of the period | $ | 48,067 | $ | 46,915 | |||||||
Supplemental disclosure of cash flows activities: | |||||||||||
(1) Cash paid during the period for: | |||||||||||
Income taxes paid, net of tax refunds | $ | 1,129 | $ | 727 | |||||||
Interest | $ | 1,141 | $ | 371 | |||||||
(2) Non-cash transactions: | |||||||||||
Business combination consideration paid in stock | $ | — | $ | 47,152 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets | |||||||||||
Cash and cash equivalents | 47,680 | 46,509 | |||||||||
Long-term restricted deposits | 387 | 406 | |||||||||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ | 48,067 | $ | 46,915 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net loss | $ | (2,731) | $ | (11,832) | $ | (30,253) | $ | (14,981) | |||||||||||||||
Net loss margin | (8) | % | (34) | % | (30) | % | (16) | % | |||||||||||||||
Depreciation, amortization and long-lived assets impairment | 4,714 | 1,882 | 8,808 | 3,481 | |||||||||||||||||||
Goodwill impairment | — | — | 14,503 | — | |||||||||||||||||||
Stock-based compensation | 5,605 | 4,322 | 15,563 | 10,052 | |||||||||||||||||||
Finance (income) expenses, net (a) | (290) | 4,962 | (3,013) | (10,655) | |||||||||||||||||||
Transaction related expenses (b) | — | — | — | 392 | |||||||||||||||||||
Acquisition related expenses (c) | — | — | — | 4,971 | |||||||||||||||||||
Retention bonus expenses (d) | 119 | 1,290 | 564 | 2,290 | |||||||||||||||||||
Legal claims | 420 | 664 | 1,076 | 1,099 | |||||||||||||||||||
Severance cost (e) | — | — | 845 | — | |||||||||||||||||||
Other | (80) | 739 | 192 | 915 | |||||||||||||||||||
Taxes on income | (1,301) | 839 | 2,858 | 634 | |||||||||||||||||||
Adjusted EBITDA | $ | 6,456 | $ | 2,866 | $ | 11,143 | $ | (1,802) | |||||||||||||||
Adjusted EBITDA margin | 17.8 | % | 8.3 | % | 11.0 | % | (1.9) | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net cash provided by operating activities | 6,489 | 5,812 | 7,437 | (10,089) | |||||||||||||||||||
Capital expenditures | (2,410) | (3,520) | (8,190) | (7,257) | |||||||||||||||||||
Free Cash Flow | $ | 4,079 | $ | 2,292 | $ | (753) | $ | (17,346) |
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