Exhibit 99.1. |
Otonomo Technology Ltd.’s Interim Unaudited Consolidated Financial Statements as of June 30, 2022 and for the Six Months Ended June 30, 2022 and June 30, 2021.
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Exhibit 99.2. |
Operating and Financial Review and Prospects
|
Otonomo Technologies Ltd.
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By:
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/s/ Ben Volkow | ||
Name: Ben Volkow
|
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Title: Chief Executive Officer and Director
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Exhibit No.
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Document Description
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Exhibit 99.1
Otonomo Technologies Ltd.
Interim Unaudited Condensed
Consolidated Financial Statements
As at June 30, 2022
(Unaudited)
Otonomo Technologies Ltd.
Contents | Page |
F - 2 | |
F - 3 | |
F - 4 | |
F - 5 | |
F - 6 |
June 30 |
December 31
|
|||||||
2022
|
2021
|
|||||||
Unaudited |
Audited |
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
||||||||
Short-term restricted cash
|
||||||||
Short-term investments
|
||||||||
Account receivables, net
|
||||||||
Other receivables and prepaid expenses
|
||||||||
Total current assets
|
||||||||
Non-current assets
|
||||||||
Other long-term assets
|
||||||||
Property and equipment, net
|
||||||||
Operating lease right-of-use assets |
||||||||
Intangible assets, net
|
||||||||
Goodwill
|
||||||||
Total non-current assets
|
||||||||
Total assets
|
||||||||
Liabilities and Shareholders' Equity
|
||||||||
Current liabilities
|
||||||||
Account payables
|
||||||||
Other payables and accrued expenses
|
||||||||
Deferred revenue
|
||||||||
Current portion of operating lease liabilities |
||||||||
Current portion of contingent consideration |
||||||||
Total current liabilities
|
||||||||
Non-current liabilities
|
||||||||
Warrants for ordinary shares |
||||||||
Operating lease liabilities, less current portion |
||||||||
Contingent consideration, less current portion |
||||||||
Total non-current liabilities
|
||||||||
Shareholders’ equity:
|
||||||||
Ordinary shares,
|
||||||||
|
||||||||
respectively
|
|
|
||||||
Additional paid-in capital
|
||||||||
Accumulated other comprehensive loss |
( |
) | ||||||
Accumulated deficit
|
( |
)
|
( |
)
|
||||
Total shareholders’ equity
|
|
|||||||
Total liabilities and shareholders’ equity
|
|
|
The accompanying notes are an integral part of the interim unaudited condensed consolidated financial statements.
Six-month
|
Six-month
|
|||||||
period ended
|
period ended
|
|||||||
June 30
2022
|
June 30
2021
|
|||||||
Revenue
|
||||||||
Costs and operating expenses:
|
||||||||
Cost of services
|
|
|
||||||
Cloud infrastructure
|
|
|
||||||
Research and development
|
|
|
||||||
Sales and marketing
|
|
|
||||||
General and administrative
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Contingent consideration income |
( |
) | ||||||
Impairment of Goodwill |
||||||||
Impairment of intangible assets |
||||||||
Total costs and operating expenses
|
|
|
|
|
||||
Operating loss
|
( |
)
|
( |
)
|
||||
Financial income (expenses), net
|
|
( |
) | |||||
Loss before income tax expense
|
( |
)
|
( |
)
|
||||
Income tax expense
|
( |
)
|
( |
)
|
||||
Net loss for the period |
( |
)
|
( |
)
|
||||
Net loss per share attributable to ordinary shareholders, basic and diluted
|
( |
)
|
( |
)
|
||||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted *
|
||||||||
Other comprehensive loss: |
||||||||
Foreign currency translation adjustments |
( |
) | ||||||
Total comprehensive loss for the period |
( |
) |
( |
) |
*
The accompanying notes are an integral part of the interim unaudited condensed consolidated financial statements.
Redeemable Convertible preferred shares |
Ordinary shares |
Additional paid-in capital |
Accumulated
other
comprehensive loss |
Accumulated deficit |
Total |
|||||||||||||||||||||||||||
Number of
|
USD
|
Number of
|
USD
|
USD |
USD
|
USD
|
USD
|
|||||||||||||||||||||||||
Shares*
|
thousands
|
Shares*
|
thousands
|
thousands |
thousands
|
thousands
|
thousands
|
|||||||||||||||||||||||||
Balance at December 31, 2021 |
( |
)
|
|
|||||||||||||||||||||||||||||
Shares issued related to the business acquisitions
|
-
|
-
|
|
|
|
|
||||||||||||||||||||||||||
Exercise of public warrants |
- | - | ||||||||||||||||||||||||||||||
Exercise of share options
|
-
|
-
|
||||||||||||||||||||||||||||||
Exercise of RSU | - | - | ||||||||||||||||||||||||||||||
Share-based compensation |
-
|
-
|
-
|
|
|
|
|
|||||||||||||||||||||||||
Net loss for the period |
-
|
-
|
-
|
|
|
( |
)
|
( |
)
|
|||||||||||||||||||||||
Other comprehensive loss | - | - |
- |
|
|
( |
) | ( |
) | |||||||||||||||||||||||
Balance at June 30, 2022 | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Balance at December 31, 2020
|
( |
)
|
( |
)
|
||||||||||||||||||||||||||||
Exercise of warrants for redeemable convertible preferred shares
|
|
|
-
|
-
|
- |
-
|
- | - | ||||||||||||||||||||||||
Exercise of share options
|
-
|
-
|
|
|
|
|
|
|||||||||||||||||||||||||
Share-based compensation |
-
|
-
|
-
|
|
|
|
|
|||||||||||||||||||||||||
Net loss for the period |
-
|
-
|
-
|
( |
)
|
( |
)
|
|||||||||||||||||||||||||
Balance at June 30, 2021
|
( |
)
|
( |
) |
The accompanying notes are an integral part of the interim unaudited condensed consolidated financial statements.
Six-month
|
Six-month
|
|||||||
period ended |
period ended |
|||||||
June 30
|
June 30
|
|||||||
2022
|
2021
|
|||||||
Cash flows from operating activities
|
||||||||
Net loss
|
( |
)
|
( |
)
|
||||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
||||||||
Share-based compensation
|
||||||||
Revaluation of warrants
|
( |
)
|
||||||
Impairment of Goodwill |
||||||||
Impairment of intangible assets |
||||||||
Contingent consideration income |
( |
) | ||||||
Deferred tax expense (benefit)
|
( |
)
|
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Account receivables
|
( |
)
|
( |
)
|
||||
Other receivables and prepaid expenses
|
( |
) | ||||||
Other payables and accrued expenses
|
|
|||||||
Account payables
|
|
|||||||
Deferred revenue |
( |
) | ( |
) | ||||
Other assets and liabilities |
( |
) | ( |
) | ||||
Net cash used in operating activities
|
( |
)
|
( |
)
|
||||
Cash flows from investing activities
|
||||||||
Purchases of property and equipment
|
( |
)
|
( |
)
|
||||
Short-term investments, net
|
( |
) |
|
|||||
Other long-term assets, net
|
( |
) | ( |
)
|
||||
Payments for business acquisitions, net of cash acquired
|
( |
)
|
||||||
Net cash provided by (used in) investing activities
|
( |
) |
|
|||||
Cash flows from financing activities
|
||||||||
Proceeds from exercise of share options and warrants
|
||||||||
Net cash provided by financing activities
|
||||||||
Foreign currency effect on cash and cash equivalents and short-term restricted cash |
( |
) | ||||||
|
||||||||
Net decrease in cash and cash equivalents and short-term restricted
cash equivalents |
( |
) |
(
|
) | ||||
Cash and cash equivalents and short-term restricted cash equivalents at
the beginning of the period |
|
|||||||
Cash and cash equivalents and Short-term restricted cash equivalents
as at end of the period |
|
|||||||
Appendix A – Material non-cash financing activities:
|
||||||||
Conversion of warrants to redeemable convertible preferred shares
|
|
|||||||
Shares issued related to the business acquisitions
|
|
Otonomo Technologies Ltd. (together with its subsidiaries, “Otonomo”, or the “Company”) was incorporated as an Israeli corporation in December 2015. The Company provides an automotive data service platform enabling car manufacturers, drivers, and service providers to be part of a connected ecosystem as well as mobility intelligence which transforms vast amounts of anonymized data and activity signals into actionable, impactful, and valuable insights. The Company’s solutions are designed to run in public clouds.
|
F - 6
F - 7
A summary of RSU activity and related information under the Company's equity incentive plan and the RSU award is as follows:
Weighted
Average
|
||||||||
Number of
|
grant date
|
|||||||
Options
|
Fair Value
|
|||||||
Unvested Balance at January 1, 2022
|
||||||||
Granted *
|
$
|
|||||||
Vested
|
( |
)
|
$
|
|||||
Forfeited
|
( |
)
|
$
|
|||||
Unvested Balance at June 30, 2022
|
* The RSU awards generally vest over four years, with no exercise price.
The share-based compensation expenses by line item in the accompanying condensed consolidated statements of comprehensive loss is summarized as follows:
Six-months
|
Six-months
|
|||||||
period ended
|
period ended
|
|||||||
June 30 |
June 30 |
|||||||
2022
|
2021
|
|||||||
USD thousand
|
USD thousand
|
|||||||
Cost of Services |
||||||||
Research and development
|
|
|||||||
Sales and marketing
|
|
|||||||
General and administrative
|
|
|||||||
|
June 30
|
December 31
|
|||||||
2022
|
2021
|
|||||||
Value of warrant per share
|
$
|
|
$
|
|
||||
Number of ordinary shares issuable upon exercise of warrants |
|
|
||||||
Fair value of warrant liability (in USD thousand)
|
$
|
|
$
|
|
F - 8
Note 4 - Warrants for ordinary shares (cont'd)
June 30
|
December 31
|
|||||||
2022
|
2021
|
|||||||
Volatility
|
|
|
% |
|
|
% | ||
Risk-free interest rate
|
|
% | % | |||||
Expected dividends
|
|
|
% |
|
% | |||
Expected life (in years) |
The Company leases its headquarters in Israel. The lease agreement will expire in December 2022, and contains a renewal option of
The following table presents the maturity of lease liabilities under the Company’s non-cancelable operating leases as Follows:
|
USD thousand
|
||
Six months ending December 31, 2022
|
|||
2023
|
|||
2024 | |||
2025 | |||
2026 |
|
||
Thereafter | |
||
|
|||
Total undiscounted minimum lease payments | |||
Less: Imputed interest | ( |
) |
|
F - 9
Note 6 - Business Combinations
Fair Value
|
Useful life
|
|||||||
USD thousand
|
In years
|
|||||||
Net tangible assets and liabilities assumed (current and non-current) |
( |
) | ||||||
Customer Relationships
|
|
|||||||
Technology |
|
|
||||||
Trademark | ||||||||
Goodwill |
|
|||||||
F - 10
Note 6 - Business Combinations (cont'd)
The Floow acquisition (cont'd)
Contingent Consideration
As part of the purchase agreement, and as mentioned above, the Company is obligated to pay additional consideration to the former shareholders of The Floow (the "Sellers"), contingent upon achievement of certain future revenue of The Floow.
The Sellers will have 24 months following July 1, 2022 (the "Completion Date"), to earn the additional consideration of up to $
As of acquisition, the Company evaluated the contingent consideration accrual related to the earnout provision in the amount of $
Pro Forma on acquisitions
Six-month |
Six-month |
|||||||
Period ended |
Period ended |
|||||||
June 30 |
June 30 |
|||||||
2022 |
2021 |
|||||||
USD thousands
|
USD thousands
|
|||||||
Revenue
|
|
|
||||||
Net loss
|
|
|
|
|
The pro forma financial information for all periods presented above has been calculated after adjusting the results of Neura and The Floow to reflect the business combination accounting effects resulting from these acquisitions, including the amortization expense from acquired intangible assets and the share-based compensation expenses for unvested share options as though the acquisition had been completed on January 1, 2021. The historical consolidated financial statements have been adjusted in the pro forma combined financial statements to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2021.
F - 11
Six-month
|
Six-month
|
|||||||
period ended
|
period ended
|
|||||||
June 30 |
June 30 |
|||||||
2022
|
2021*
|
|||||||
In USD thousands, except share data
|
||||||||
Numerator:
|
||||||||
Net loss
|
(
|
)
|
( |
)
|
||||
Denominator:
|
||||||||
Weighted-average shares used in computing net loss per share
|
||||||||
attributable to ordinary shareholders, basic and diluted
|
|
|||||||
Net loss per share attributable to ordinary shareholders, basic |
||||||||
and diluted
|
(
|
)
|
( |
)
|
The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows:
Six-month
|
Six-month
|
|||||||
period ended
|
period ended
|
|||||||
June 30 |
June 30 |
|||||||
2022
|
2021*
|
|||||||
In USD thousands, except share data
|
||||||||
Convertible redeemable preferred shares
|
||||||||
Warrants to convertible redeemable preferred shares
|
||||||||
Unvested RSU
|
||||||||
Outstanding share options
|
||||||||
Total
|
*The Company effected a share split as of the Recapitalization, all ordinary share and redeemable convertible preferred shares amounts were adjusted retroactively for all periods. See also Note 7 in Company’s audited consolidated financial statements for the year ended December 31, 2021.
F - 12
F - 13
• |
identification of the contract, or contracts, with a customer;
|
• |
identification of the performance obligations in the contract;
|
• |
determination of the transaction price;
|
• |
allocation of the transaction price to the performance obligations in the contract; and
|
• |
recognition of revenue when, or as, Otonomo satisfies a performance obligation.
|
Six-month period ended June 30,
|
||||||||
2022
|
2021
|
|||||||
(Unaudited)
|
||||||||
Revenue
|
2,951
|
496
|
||||||
Costs and operating expenses:
|
||||||||
Cost of services
|
1,341
|
423
|
||||||
Cloud infrastructure
|
2,492
|
953
|
||||||
Research and development
|
10,656
|
4,383
|
||||||
Sales and marketing
|
10,503
|
2,682
|
||||||
General and administrative
|
11,072
|
1,896
|
||||||
Depreciation and amortization
|
1,728
|
64
|
||||||
Contingent consideration income
|
(1,541
|
)
|
—
|
|||||
Impairment of Goodwill
|
37,000
|
—
|
||||||
Impairment of intangible assets
|
8,785
|
—
|
||||||
Total costs and operating expenses
|
82,036
|
10,401
|
||||||
Operating loss
|
(79,085
|
)
|
(9,905
|
)
|
||||
Financial income (expenses), net
|
428
|
(3,142
|
)
|
|||||
Loss before income tax expense
|
(78,657
|
)
|
(13,047
|
)
|
||||
Income tax expense
|
(280
|
)
|
(57
|
)
|
||||
Net loss for the period
|
(78,937
|
)
|
(13,104
|
)
|
||||
Net loss per share attributable to ordinary shareholders, basic and diluted
|
(0.58
|
)
|
(0.42
|
)
|
||||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted
|
135,725,885
|
31,517,618
|
||||||
Other comprehensive loss:
|
||||||||
Foreign currency translation adjustments
|
(2,388
|
)
|
—
|
|||||
Total comprehensive loss for the period
|
(81,325
|
)
|
(13,104
|
)
|
Six Months Ended June 30,
|
Change
|
Change
|
||||||||||||||
2022
|
2021
|
$ |
%
|
|||||||||||||
(USD in thousand)
|
||||||||||||||||
Total
|
$
|
2,951
|
$
|
496
|
$
|
2,455
|
495
|
%
|
Six Months Ended June 30,
|
Change
|
Change
|
||||||||||||||
2022
|
2021
|
$
|
% | |||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Cost of services
|
$
|
1,341
|
$
|
423
|
$
|
918
|
217
|
%
|
||||||||
Cloud infrastructure
|
$
|
2,492
|
$
|
953
|
$
|
1,539
|
161
|
%
|
||||||||
Research and development
|
$
|
10,656
|
$
|
4,383
|
$
|
6,273
|
143
|
%
|
||||||||
Sales and marketing
|
$
|
10,503
|
$
|
2,682
|
$
|
7,821
|
292
|
%
|
||||||||
General and administrative
|
$
|
11,072
|
$
|
1,896
|
$
|
9,176
|
484
|
%
|
||||||||
Depreciation and amortization
|
$
|
1,728
|
$
|
64
|
$
|
1,664
|
2,600
|
%
|
||||||||
Contingent consideration income
|
$
|
(1,541
|
)
|
$
|
—
|
$
|
(1,541
|
)
|
100
|
%
|
||||||
Impairment of Goodwill and intangible assets
|
$
|
45,785
|
$
|
—
|
$
|
45,785
|
100
|
%
|
||||||||
Total costs of services and operating expenses
|
$
|
82,036
|
$
|
10,401
|
$
|
71,635
|
689
|
%
|
Six Months Ended June 30,
|
Change
|
Change
|
||||||||||||||
2022
|
2021
|
$ |
%
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Financial (Expense) Income, Net
|
$
|
428
|
$
|
(3,142
|
)
|
$
|
3,570
|
114
|
%
|
Six Months Ended June 30,
|
||||||||
(dollars in thousands)
|
2022
|
2021
|
||||||
Net cash used in operating activities
|
$
|
(27,311
|
)
|
$
|
(9,718
|
)
|
||
Net cash provided by (used in) investing activities
|
$
|
(11,350
|
)
|
$
|
7,909
|
|||
Net cash provided by financing activities
|
$
|
135
|
$
|
27
|
||||
Foreign currency effect on cash and cash equivalents and short-term restricted cash
|
$
|
(82
|
)
|
$
|
-
|
|||
Net change in cash and cash equivalents and short-term restricted cash equivalents
|
$
|
(38,608
|
)
|
$
|
(1,782
|
)
|
Six-months Period Ended
|
||||||||
June 30,
|
||||||||
(in $ thousands)
|
2022
|
2021
|
||||||
GAAP operating Loss
|
(79,085
|
)
|
(9,905
|
)
|
||||
Share-based compensation (1)
|
4,881
|
1,048
|
||||||
Contingent liability income
|
(1,541
|
)
|
-
|
|||||
Impairment of goodwill and intangible assets
|
45,785
|
-
|
||||||
Amortization and depreciation (2)
|
1,728
|
64
|
||||||
|
50,853
|
1,112
|
||||||
Non-GAAP operating Loss
|
(28,232
|
)
|
(8,793
|
)
|
||||
|
||||||||
1. Share-based compensation:
|
||||||||
|
||||||||
Cost of Revenues
|
13
|
-
|
||||||
Research and development
|
1,138
|
534
|
||||||
Sales and marketing
|
1,467
|
200
|
||||||
General and administrative
|
2,263
|
314
|
||||||
|
4,881
|
1,048
|
||||||
2. Amortization and depreciation:
|
||||||||
|
||||||||
Amortization of intangible assets
|
1,617
|
-
|
||||||
Depreciation of property and equipment
|
111
|
64
|
||||||
|
1,728
|
64
|
Cover Page |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Entity Addresses [Line Items] | |
Entity Registrant Name | OTONOMO TECHNOLOGIES LTD. |
Document Type | 6-K |
Amendment Flag | false |
Entity Central Index Key | 0001842498 |
Document Period End Date | Jun. 30, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Address, Address Line One | 16 Abba Eban Blvd. |
Entity Address, Country | IL |
Entity Address, City or Town | Herzliya Pituach |
Entity Address, Postal Zip Code | 467256 |
Entity File Number | 001-40744 |
Interim Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 450,000,000 | 450,000,000 |
Common Stock, Shares, Issued | 139,933,636 | 132,214,733 |
Common Stock, Shares, Outstanding | 139,933,636 | 132,214,733 |
Interim Unaudited Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Shares and Shareholders' Equity (Deficit) - USD ($) $ in Thousands |
Preferred Stock [Member]
Convertible redeemable preferred shares [Member]
|
Ordinary shares [Member] |
Additional paid-in capital [Member] |
Accumulated other comprehensive loss [Member] |
Accumulated deficit [Member] |
Total |
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Beginning at Dec. 31, 2020 | $ 77,702 | |||||||||||
Balance at Beginning (in Shares) at Dec. 31, 2020 | [1] | 62,926,410 | ||||||||||
Balance at Beginning at Dec. 31, 2020 | $ 0 | $ 10,357 | $ 0 | $ (70,128) | $ (59,771) | |||||||
Balance at Beginning (in Shares) at Dec. 31, 2020 | [1] | 31,488,921 | ||||||||||
Exercise of warrants for redeemable convertible preferred shares | $ 10,896 | |||||||||||
Exercise of warrants for redeemable convertible preferred shares (in Shares) | [1] | 1,179,456 | ||||||||||
Exercise of share options | $ 0 | 27 | 0 | 0 | 27 | |||||||
Exercise of share options (in Shares) | [1] | 43,520 | ||||||||||
Share-based compensation | $ 0 | 1,048 | 0 | 0 | 1,048 | |||||||
Net loss for the period | 0 | 0 | 0 | (13,104) | (13,104) | [1] | ||||||
Balance at Ending at Jun. 30, 2021 | $ 0 | 11,432 | 0 | (83,232) | (71,800) | |||||||
Balance at Ending (in Shares) at Jun. 30, 2021 | [1] | 31,532,441 | ||||||||||
Balance at Ending at Jun. 30, 2021 | $ 88,598 | |||||||||||
Balance at Ending (in Shares) at Jun. 30, 2021 | [1] | 64,105,866 | ||||||||||
Balance at Beginning at Dec. 31, 2021 | $ 0 | |||||||||||
Balance at Beginning (in Shares) at Dec. 31, 2021 | [1] | 0 | ||||||||||
Balance at Beginning at Dec. 31, 2021 | $ 0 | 349,825 | 0 | (101,062) | 248,763 | |||||||
Balance at Beginning (in Shares) at Dec. 31, 2021 | 132,214,733 | |||||||||||
Shares issued related to the business acquisitions | $ 0 | 10,691 | 0 | 0 | 10,691 | |||||||
Shares issued related to the business acquisitions (in Shares) | [1] | 6,462,086 | ||||||||||
Exercises of public warrants | $ 0 | [2] | 0 | 0 | [2] | |||||||
Exercises of public warrants (in Shares) | [1] | 20 | ||||||||||
Exercise of share options | $ 0 | 135 | 0 | 0 | 135 | |||||||
Exercise of share options (in Shares) | [1] | 794,436 | ||||||||||
Exercise of RSU | $ 0 | 0 | 0 | 0 | 0 | |||||||
Exercise of RSU (in Shares) | [1] | 462,361 | ||||||||||
Share-based compensation | $ 0 | 4,881 | 0 | 0 | 4,881 | |||||||
Net loss for the period | 0 | 0 | 0 | (78,937) | (78,937) | |||||||
Other comprehensive loss | 0 | 0 | (2,388) | 0 | (2,388) | |||||||
Balance at Ending at Jun. 30, 2022 | $ 0 | $ 365,532 | $ (2,388) | $ (179,999) | $ 183,145 | |||||||
Balance at Ending (in Shares) at Jun. 30, 2022 | [1] | 139,933,636 | ||||||||||
Balance at Ending at Jun. 30, 2022 | $ 0 | |||||||||||
Balance at Ending (in Shares) at Jun. 30, 2022 | [1] | 0 | ||||||||||
|
Interim Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
||||
Cash flows from operating activities | |||||
Net loss | $ (78,937) | $ (13,104) | [1] | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 1,728 | 64 | |||
Share-based compensation | 4,881 | 1,048 | |||
Revaluation of warrants | (1,451) | 3,165 | |||
Impairment of Goodwill | 37,000 | 0 | |||
Impairment of intangible assets | 8,785 | 0 | |||
Contingent consideration income | (1,541) | 0 | |||
Deferred tax expense (benefit) | (12) | 0 | |||
Changes in operating assets and liabilities: | |||||
Account receivables | (141) | (109) | |||
Other receivables and prepaid expenses | 1,279 | (887) | |||
Other payables and accrued expenses | 1,085 | 176 | |||
Account payables | 319 | 120 | |||
Deferred revenue | (35) | (190) | |||
Other assets and liabilities | (271) | (1) | |||
Net cash used in operating activities | (27,311) | (9,718) | |||
Cash flows from investing activities | |||||
Purchases of property and equipment | (137) | (90) | |||
Short-term investments, net | (98) | 8,000 | |||
Other long-term assets, net | (95) | (1) | |||
Payments for business acquisitions, net of cash acquired | (11,020) | 0 | |||
Net cash provided by (used in) investing activities | (11,350) | 7,909 | |||
Cash flows from financing activities | |||||
Proceeds from exercise of share options and warrants | 135 | 27 | |||
Net cash provided by financing activities | 135 | 27 | |||
Foreign currency effect on cash and cash equivalents and short-term restricted cash | (82) | 0 | |||
Net decrease in cash and cash equivalents and short-term restricted cash equivalents | (38,608) | (1,782) | |||
Cash and cash equivalents and Short-term restricted cash equivalents at the beginning of the period | 208,079 | 14,984 | |||
Cash and cash equivalents and Short-term restricted cash equivalents as at end of the period | 169,471 | 13,202 | |||
Appendix A – Material non-cash financing activities: | |||||
Conversion of warrants to redeemable convertible preferred shares | 0 | 10,896 | |||
Shares issued related to the business acquisitions | $ 10,691 | $ 0 | |||
|
General |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
General |
Note 1 - General
|
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies |
Note 2 - Summary of Significant Accounting Policies
A. Basis of Preparation
The accompanying interim unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In management’s opinion, the interim financial data presented includes all adjustments necessary for a fair presentation. All intercompany accounts and transactions have been eliminated. Operating results for the six months ended June 30, 2022, are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2022.
These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2021.
B. Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the fair value of assets acquired and liabilities assumed in business combinations, goodwill and purchased intangible assets valuation and impairment, useful lives of intangible assets, the fair value of contingent consideration, value of warrants to redeemable convertible preferred shares, warrants to ordinary shares and share based compensation including the determination of the fair value of the Company’s ordinary shares. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.
C. Significant Accounting Policies
The Company’s significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report for the year ended December 31, 2021.
D. Foreign currencies
The currency of the primary economic environment in which the operations of the Company are conducted is the U.S. dollar (“dollar” or “$”), thus; the dollar is the functional currency of the Company. In addition, the functional currency of the Company’s major foreign subsidiaries is generally U.S. dollar. For entities which their functional currency is their respective local currency, assets and liabilities are translated into U.S. Dollars at exchange rates in effect at each period end. Amounts classified in shareholders’ equity are translated at historical exchange rates. Revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive loss as a component of shareholders’ equity.
E. Leases
In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842),” which requires lessees to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets, and to recognize on the statements of operations the expenses in a manner similar to prior practice. The Company adopted Topic 842 using the modified retrospective method as of January 1, 2022 and elected the transition option that allows the Company not to restate the comparative periods in the financial statements in the year of adoption.
The Company determines if an arrangement is a lease at inception. The Company currently does not have any finance leases.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. Operating lease ROU assets include any prepaid lease payments. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and are not subsequently adjusted. For short-term leases with a term of 12 months or less, operating lease ROU assets and liabilities are not recognized and the Company records lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term.
The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the ROU asset and lease liability when it is reasonably certain that the Company will exercise the option. Operating lease expense is recognized on a straight-line basis over the lease term.
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Share Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Based Compensation |
Note 3 - Share-Based Compensation
Restricted Share Units ("RSU")
A summary of RSU activity and related information under the Company's equity incentive plan and the RSU award is as follows:
* The RSU awards generally vest over four years, with no exercise price. The share-based compensation expenses by line item in the accompanying condensed consolidated statements of comprehensive loss is summarized as follows:
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Warrants for ordinary shares |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants for ordinary shares | Note 4 - Warrants for ordinary shares
The Fair value of the Warrants:
For the period ended June 30, 2022, the Company recorded a financial income of $1,451 thousand to the condensed consolidated statements of comprehensive loss as part of the financial income (expenses), net, relating to the warrant’s fair value decreased in the period.
The Black-Scholes assumptions used to value the private warrants are as follows:
|
Operating Lease |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease, Liability [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease |
Note 5 - Operating Lease
The Company leases its headquarters in Israel. The lease agreement will expire in December 2022, and contains a renewal option of 2 years, which are reasonably certain to be exercised and therefore are factored into our determination of lease payments. In Addition, the Company acquired operating lease right-of-use assets and liabilities in Sheffield, UK, through the recent business combination of The Floow, which their lease agreements will expire in September 2027 and December 2029.
The following table presents the maturity of lease liabilities under the Company’s non-cancelable operating leases as Follows:
|
Business Combinations |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations |
Note 6 - Business Combinations Neura acquisition
In respect of the Neura acquisition, during the six-month period ended June 30, 2022, the Company completed the issuance of 98,450 shares of the Company’s ordinary shares that was subject to Neura's working capital adjustments, which were finalized during the period.
The Floow acquisition
On April 14, 2022, the Company acquired 100% of the share capital of The Floow Limited (“The Floow”), a privately held company in the United Kingdom, a SaaS provider of connected insurance technology for major carriers globally.
The total purchase consideration transferred for The Floow acquisition was approximately $31.3 million, comprised of approximately $10.8 million in cash, $10.7 million in equity for the fair value of 6,363,636 shares of the Company’s ordinary shares issued, and a contingent consideration of up to $12 million in cash and up to 6,545,454 of the Company’s ordinary shares, based on performance condition, which was evaluated at a fair value of the amount of $9.8 million as of the acquisition date.
The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the date of acquisition:
The Company is in the process of completing the valuation of the net tangible and intangible assets acquired and liabilities assumed, and its estimate of these values was still preliminary on June 30, 2022. Therefore, these provisional amounts are subject to change as the Company completes the valuation throughout the measurement period, which will be completed within 12 months of the acquisition date.
Goodwill is primarily attributable to expected synergies arising from customer relationships, the expanded product availability to the Company’s existing and new customers, technology integration, and trademark, and the benefits from combining the activity of The Floow with the Company. Goodwill is not deductible for income tax purposes.
In addition to the purchase consideration, the Company awarded performance based RSUs to certain key employees and expected to be released to these employees in one to two years from June 30, 2022, subject to their continued service.
The results of the operations of The Floow have been included in the consolidated financial statements since the date of the acquisition. Additionally, the Company incurred transaction costs of $1,092 thousand during the six-month period ended June 30, 2022, which were included in general and administrative expenses in the interim unaudited condensed consolidated statements of comprehensive loss.
Contingent Consideration
As part of the purchase agreement, and as mentioned above, the Company is obligated to pay additional consideration to the former shareholders of The Floow (the "Sellers"), contingent upon achievement of certain future revenue of The Floow.
The Sellers will have 24 months following July 1, 2022 (the "Completion Date"), to earn the additional consideration of up to $12,000 thousand in cash and up to 6,545,454 of the Company’s ordinary shares in 2 tranches paid every 12 months.
As of acquisition, the Company evaluated the contingent consideration accrual related to the earnout provision in the amount of $9,864 thousand, which is reported in Current and Non-current contingent consideration in the accompanying condensed consolidated balance sheets. The Company used a probability-weighted future cash flows approach to estimate the contingent consideration. The amount accrued was discounted to include the present value of the liability. During the quarter ended June 30, 2022, the contingent consideration accrual decreased by $1,541 thousand that recorded under the contingent consideration income in the interim unaudited condensed consolidated statements of comprehensive loss.
The following unaudited pro forma financial information summarizes the combined results of operations for the Company, Neura and The Floow, as if the acquisitions of Neura and The Floow had been completed on January 1, 2021. The unaudited pro forma financial information was as follows:
The pro forma financial information for all periods presented above has been calculated after adjusting the results of Neura and The Floow to reflect the business combination accounting effects resulting from these acquisitions, including the amortization expense from acquired intangible assets and the share-based compensation expenses for unvested share options as though the acquisition had been completed on January 1, 2021. The historical consolidated financial statements have been adjusted in the pro forma combined financial statements to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2021. |
Impairment of Goodwill and Intangible assets |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Goodwill and Intangible assets |
Note 7 - Impairment of Goodwill and Intangible assets
Goodwill is not amortized but rather tested for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination.
As a result of the decrease in the Company’s market capitalization during the second quarter of 2022, the Company performed an impairment test at June 30, 2022. The Company concluded that goodwill and the intangibles assets associated with the acquisition of Neura in 2021 had been impaired, and the Company fully wrote off the goodwill and intangible assets in the total amount of $45,785 thousand, comprised of impairment of goodwill in the amount of $37,000 thousand and technology in the amount of $8,785 thousand.
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Net Loss Per Share Attributable to Ordinary Shareholders |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share Attributable to Ordinary Shareholders |
Note 8 - Net Loss Per Share Attributable to Ordinary Shareholders
The following table sets forth the computation of basic and diluted net loss per share attributable to ordinary shareholders for the periods presented:
The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows:
*The Company effected a share split as of the Recapitalization, all ordinary share and redeemable convertible preferred shares amounts were adjusted retroactively for all periods. See also Note 7 in Company’s audited consolidated financial statements for the year ended December 31, 2021. |
Contingent liability |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent liability |
Note 9 - Contingent liability
On April 11, 2022, plaintiff Saman Mollaei filed a putative class action complaint against the Company in the Superior Court of the State of California for the County of San Francisco, which the Company then removed to the United States District Court for the Northern District of California. The complaint alleges that the Company violated Section 637.7 of the California Penal Code by allegedly using electronic tracking devices to determine the location or movements of people without their consent, and plaintiff purports to sue for damages and injunctive relief on behalf of a putative class of California vehicle owners and lessees whose location was allegedly tracked. The Company believes that the case is meritless and moved to dismiss the complaint in its entirety on June 13, 2022. At this preliminary stage, the Company is unable to assess the lawsuit's chances of success but intends to defend it vigorously. Thus, no provision has been made in the financial statements in respect of this claim.
|
Subsequent Events |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events |
Note 10 - Subsequent Events
On August 23, 2022, the Company received written notification from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") dated August 23, 2022, indicating that the Company no longer satisfies Nasdaq Listing Rule 5450(a)(1) based upon a closing bid price of less than $1.00 per share for the Company’s ordinary shares for the prior 30 consecutive business day period. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided with a grace period of 180 days, or until February 20, 2023, to meet the minimum bid price requirement under the Nasdaq Listing Rules. If at any time during the 180-day grace period, the closing bid price of the ordinary shares is $1.00 per share or higher for at least ten consecutive business days, Nasdaq will provide the Company written confirmation of compliance and the matter will be closed. In the event the Company does not regain compliance within the 180-day grace period, and it meets all other listing standards and requirements, the Company may be eligible for an additional 180-day grace period, subject to determination by the staff of Nasdaq. During this time, our ordinary shares will continue to be listed and trade on the Nasdaq Capital Market. However, if the Company do not regain compliance with the Nasdaq’s continued listing standards and delist from the Nasdaq and our ordinary shares are not subsequently listed and registered on another national securities exchange, the Company will be unable to meet certain transaction requirements that would effectively prevent the selling shareholders from offering and selling ordinary shares under this registration statement.
|
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Preparation |
A. Basis of Preparation
The accompanying interim unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In management’s opinion, the interim financial data presented includes all adjustments necessary for a fair presentation. All intercompany accounts and transactions have been eliminated. Operating results for the six months ended June 30, 2022, are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2022.
These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2021.
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Use of Estimates |
B. Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the fair value of assets acquired and liabilities assumed in business combinations, goodwill and purchased intangible assets valuation and impairment, useful lives of intangible assets, the fair value of contingent consideration, value of warrants to redeemable convertible preferred shares, warrants to ordinary shares and share based compensation including the determination of the fair value of the Company’s ordinary shares. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.
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Significant Accounting Policies |
C. Significant Accounting Policies
The Company’s significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report for the year ended December 31, 2021.
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Foreign currencies |
D. Foreign currencies
The currency of the primary economic environment in which the operations of the Company are conducted is the U.S. dollar (“dollar” or “$”), thus; the dollar is the functional currency of the Company. In addition, the functional currency of the Company’s major foreign subsidiaries is generally U.S. dollar. For entities which their functional currency is their respective local currency, assets and liabilities are translated into U.S. Dollars at exchange rates in effect at each period end. Amounts classified in shareholders’ equity are translated at historical exchange rates. Revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive loss as a component of shareholders’ equity.
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Leases |
E. Leases
In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842),” which requires lessees to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets, and to recognize on the statements of operations the expenses in a manner similar to prior practice. The Company adopted Topic 842 using the modified retrospective method as of January 1, 2022 and elected the transition option that allows the Company not to restate the comparative periods in the financial statements in the year of adoption.
The Company determines if an arrangement is a lease at inception. The Company currently does not have any finance leases.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. Operating lease ROU assets include any prepaid lease payments. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and are not subsequently adjusted. For short-term leases with a term of 12 months or less, operating lease ROU assets and liabilities are not recognized and the Company records lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term.
The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the ROU asset and lease liability when it is reasonably certain that the Company will exercise the option. Operating lease expense is recognized on a straight-line basis over the lease term.
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Share Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of RSU activity |
* The RSU awards generally vest over four years, with no exercise price. |
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Schedule of share based compensation expenses |
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Warrants for ordinary shares (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of the warrants |
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Schedule of assumptions of warrants for ordinary shares |
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Operating Lease (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease, Liability [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of maturities of lease liabilities |
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Business Combinations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of business acquisitions estimated useful lives |
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Schedule of pro forma financial information |
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Net Loss Per Share Attributable to Ordinary Shareholders (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted net loss per share |
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Schedule of antidilutive ordinary shares excluded from computation of earnings per share |
*The Company effected a share split as of the Recapitalization, all ordinary share and redeemable convertible preferred shares amounts were adjusted retroactively for all periods. See also Note 7 in Company’s audited consolidated financial statements for the year ended December 31, 2021. |
Share Based Compensation - Schedule of restricted share units ("RSU") (Details) - Restricted Stock Units (RSUs) [Member] - Equity Incentive Plan [Member] |
6 Months Ended | |||
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Jun. 30, 2022
$ / shares
shares
| ||||
Number of Options | ||||
Unvested Balance at January 1, 2022 | 3,838,865 | |||
Granted | 5,898,662 | [1] | ||
Vested | (403,024) | |||
Forfeited | (130,234) | |||
Unvested Balance at June 30, 2022 | 9,204,269 | |||
Weighted average exercise price | ||||
Granted | $ / shares | $ 2.08 | [1] | ||
Vested | $ / shares | 5.46 | |||
Forfeited | $ / shares | $ 3.87 | |||
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Share Based Compensation - Schedule of share based compensation expenses (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
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Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share based compensation expenses | $ 4,881 | $ 1,048 |
Cost Of Services [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share based compensation expenses | 13 | 0 |
Research and development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share based compensation expenses | 1,138 | 534 |
Sales and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share based compensation expenses | 1,467 | 200 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share based compensation expenses | $ 2,263 | $ 314 |
Warrants for ordinary shares - Schedule of fair value of the warrants (Details) - USD ($) $ / shares in Units, $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
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Financial Liabilities Fair Value Disclosure [Abstract] | ||
Value of warrant per share | $ 0.09 | $ 0.37 |
Number of redeemable convertible preferred shares issuable upon exercise of warrants | 5,200,000 | 5,200,000 |
Fair value of warrant liability | $ 473 | $ 1,924 |
Warrants for ordinary shares - Schedule of assumptions (Details) |
6 Months Ended | 12 Months Ended |
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Jun. 30, 2022 |
Dec. 31, 2021 |
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Stockholders' Equity Note [Abstract] | ||
Volatility | 68.50% | 41.00% |
Risk-free interest rate | 3.01% | 1.20% |
Expected dividends | 0.00% | 0.00% |
Expected life (in years) | 4 years 1 month 13 days | 4 years 7 months 6 days |
Warrants for ordinary shares (Detail Textuals) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
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Stockholders' Equity Note [Abstract] | ||
Financial income (expenses), net, relating to the warrants | $ 1,451 | $ (3,165) |
Operating Lease - Schedule of maturity of lease liabilities (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
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Operating Lease, Liability [Abstract] | |
Six months ending December 31, 2022 | $ 538 |
2023 | 1,076 |
2024 | 1,076 |
2025 | 185 |
2026 | 185 |
Thereafter | 260 |
Total undiscounted minimum lease payments | 3,320 |
Less: Imputed interest | (191) |
Non-cancelable operating leases | $ 3,129 |
Operating Lease (Detail Textuals) |
Jun. 30, 2022 |
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Operating Lease, Liability [Abstract] | |
Weighted average renewal option term | 2 years |
Business Combinations - Schedule of estimated useful lives as of date of acquisition (Details) $ in Thousands |
6 Months Ended |
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Jun. 30, 2022
USD ($)
| |
Business Acquisition [Line Items] | |
Net tangible assets and liabilities assumed (current and non-current | $ (1,355) |
Fair value of identifiable intangible assets | 31,349 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Fair value of identifiable intangible assets | $ 9,454 |
Useful life | 8 years |
Technology [Member] | |
Business Acquisition [Line Items] | |
Fair value of identifiable intangible assets | $ 7,881 |
Useful life | 5 years |
Trademark [Member] | |
Business Acquisition [Line Items] | |
Fair value of identifiable intangible assets | $ 435 |
Useful life | 2 years |
Goodwill [Member] | |
Business Acquisition [Line Items] | |
Fair value of identifiable intangible assets | $ 14,934 |
Business Combinations - Schedule of pro forma financial information (Details) - Floow Ltd [Member] - USD ($) $ in Thousands |
6 Months Ended | |
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Jun. 30, 2022 |
Jun. 30, 2021 |
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Business Acquisition [Line Items] | ||
Revenue | $ 4,550 | $ 4,935 |
Net loss | $ 80,458 | $ 19,334 |
Business Combinations (Detail Textuals) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Apr. 14, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Business Acquisition [Line Items] | |||
Current and Non-current contingent liability | $ 9,864 | ||
Contingent liability expenses | $ 1,541 | $ 0 | |
Neura Inc's [Member] | |||
Business Acquisition [Line Items] | |||
Number of shares acquisition issued | 98,450 | ||
Floow Ltd [Member] | |||
Business Acquisition [Line Items] | |||
Number of shares acquisition issued | 6,363,636 | ||
Percentage of voting interests acquired | 100.00% | ||
Total purchase consideration transferred | $ 31,300 | ||
Value of shares acquisition issued | 10,700 | ||
Acquisition fair value | 9,800 | ||
Transaction costs | $ 10,800 | ||
Floow Ltd [Member] | General and Administrative Expense [Member] | |||
Business Acquisition [Line Items] | |||
Transaction costs | $ 1,092 | ||
Maximum [Member] | Floow Ltd [Member] | |||
Business Acquisition [Line Items] | |||
Number of shares acquisition issued | 6,545,454 | 6,545,454 | |
Total purchase consideration transferred | $ 12,000 | $ 12,000 |
Impairment of Goodwill and Intangible assets (Detail Textuals) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill and intangible assets | $ 45,785 | |
Impairment of goodwill | 37,000 | $ 0 |
Impairment of intangible assets | $ 8,785 | $ 0 |
Net Loss Per Share Attributable to Ordinary Shareholders - Schedule of basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
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Numerator: | |||||
Net loss | $ (78,937) | $ (13,104) | [1] | ||
Denominator: | |||||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic | [1] | 135,725,885 | 31,517,618 | ||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted | 135,725,885 | 31,517,618 | |||
Net loss per share attributable to ordinary shareholders, basic | $ (0.58) | $ (0.42) | |||
Net loss per share attributable to ordinary shareholders, diluted | $ (0.58) | $ (0.42) | [1] | ||
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Net Loss Per Share Attributable to Ordinary Shareholders - Schedule of antidilutive ordinary shares excluded from computation of earnings per share (Details) - shares |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
[1] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,966,185 | 73,820,408 | |||
Convertible redeemable preferred shares [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 63,387,656 | |||
Warrants to convertible redeemable preferred shares [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 1,081,168 | |||
Unvested RSUs [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,241,041 | 0 | |||
Outstanding share options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,725,144 | 9,351,584 | |||
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Subsequent Events (Detail Textuals) |
1 Months Ended |
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Aug. 23, 2022 | |
Subsequent Event [Member] | Listing Qualifications Department [Member] | Nasdaq Stock Market Llc [Member] | |
Subsequent Event [Line Items] | |
Description of subsequent event | the Company no longer satisfies Nasdaq Listing Rule 5450(a)(1) based upon a closing bid price of less than $1.00 per share for the Company’s ordinary shares for the prior 30 consecutive business day period. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided with a grace period of 180 days, or until February 20, 2023, to meet the minimum bid price requirement under the Nasdaq Listing Rules. If at any time during the 180-day grace period, the closing bid price of the ordinary shares is $1.00 per share or higher for at least ten consecutive business days, Nasdaq will provide the Company written confirmation of compliance and the matter will be closed. In the event the Company does not regain compliance within the 180-day grace period, and it meets all other listing standards and requirements, the Company may be eligible for an additional 180-day grace period, subject to determination by the staff of Nasdaq. |
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