Veritone, Inc 8-K/A, filed Aug 28, 2023

Veritone, Inc. (VERI)

8-K/A 2023-08-28 For: 2023-06-13

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Added on April 10, 2026

About this 8-K/A

Veritone, Inc filed this 8-K/A on August 28, 2023, reporting on events of June 13, 2023.

Items reported

Item 9.01: Financial statements and exhibits

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Delaware	001-38093	47-1161641
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1615 Platte Street 2nd Floor
Denver, Colorado		80202
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	VERI	The Nasdaq Stock Market LLC


Exhibit No.	Description

2.1†	Securities and Asset Purchase Agreement, dated as of May 27, 2023, by and among Veritone, Inc., Veritone UK Ltd., CareerBuilder, LLC, CareerBuilder International Holding B.V. and CareerBuilder France Holding, LLC (incorporated by reference to Exhibit 2.1 to Veritone, Inc.’s Current Report on Form 8-K filed on May 31, 2023).
23.1	Consent of Ernst & Young LLP, independent auditors of Broadbean.
99.1	Audited combined financial statements of Broadbean as of and for the fiscal year ended December 31, 2022, together with the notes thereto and the report of independent registered public accounting firm thereon.
99.2	Unaudited condensed combined financial statements of Broadbean as of and for the three months ended March 31, 2023, together with the notes thereto.
99.3	Unaudited pro forma condensed combined balance sheet of the Company and its consolidated subsidiaries as of March 31, 2023 and unaudited statements of operations of the Company and its consolidated subsidiaries for the three months ended March 31, 2023 and for the year ended December 31, 2022, each giving effect to the Transaction, and the notes thereto.
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).


			Veritone, Inc.

Date:	August 28, 2023	By:	/s/ Michael L. Zemetra
			Michael L. Zemetra Executive Vice President, Chief Financial Officer and Treasurer


Report of Independent Auditors…………………….…...……………………….............................................................	2
Combined Balance Sheet………………………………....................................................................................................	3
Combined Statement of Operations……………………………………............................................................................	4
Combined Statement of Comprehensive Income………...................................................................................................	5
Combined Statement of Changes in Equity……………..………………………………………………………………..	6
Combined Statement of Cash Flows……….……………………………………………………………………………..	7
Notes to the Combined Financial Statements…………………………...………………………………………………..	8


	December 31,
	2022
Assets
Current assets:
Cash and cash equivalents	$	4,056
Accounts receivable, net of allowances of $253		10,193
Prepaid expenses		3,393
Other current assets		50
Total current assets		17,692
Non-current assets:
Property and equipment, net		4,089
Operating lease right-of-use assets		1,209
Goodwill		6,948
Intangible assets, net of accumulated amortization		1,647
Other non-current assets		173
Total assets	$	31,758

Liabilities and parents’ equity
Current liabilities:
Accounts payable	$	588
Accrued expenses and other current liabilities		3,845
Accrued compensation-related expenses		586
Deferred revenue		9,488
Operating lease liabilities, current portion		589
Total current liabilities		15,096
Non-current liabilities:
Deferred income taxes		748
Non-current operating lease liabilities		659
Total liabilities		16,503

Parents’ equity
Net parent investment		17,630
Accumulated other comprehensive loss		(2,375)
Total parents’ equity		15,255
Total liabilities and parents’ equity	$	31,758


	Year Ended December 31,
	2022

Revenue	$	32,617
Operating expenses:
Cost of revenue		6,301
Sales and marketing		13,740
Product development		1,952
General and administrative		6,229
Depreciation and amortization		5,411
Total operating expenses		33,633
Loss from operations		(1,016)
Other expense, net		(131)
Interest expense		(29)
Loss before income taxes		(1,176)
Income tax benefit		1,669
Net income	$	493


		Net parent investment		Accumulated other comprehensive income (loss)		Total parents’ equity
Balance, December 31, 2021	$	17,910	$	292	$	18,202
Net income		493		-		493
Foreign currency translation adjustment		-		(2,667)		(2,667)
Net transfers to parent		(773)		-		(773)
Balance, December 31, 2022	$	17,630	$	(2,375)	$	15,255


	Year Ended December 31,
	2022
Operating activities
Net income	$	493
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,411
Non-cash operating lease expense		655
Deferred income taxes		(202)
Provisions for doubtful accounts		58
Change in operating assets and liabilities:
Accounts receivable		(1,406)
Prepaid expenses		(3,131)
Other current assets		(16)
Accounts payable		211
Accrued compensation related expenses		(118)
Accrued expenses and other current liabilities		(640)
Operating lease liabilities		(719)
Deferred revenue		1,357
Other non-current liabilities		(172)
Net cash provided by operating activities		1,781
Investing activities
Purchases of property and equipment		(2,717)
Net cash used in investing activities		(2,717)
Financing activities
Net transfers to parent		(1,268)
Net cash used in financing activities		(1,268)
Effect of exchange rate fluctuation on cash		(299)
Net decrease in cash and cash equivalents		(2,503)
Cash and cash equivalents at beginning of period		6,559
Cash and cash equivalents at end of period	$	4,056

Supplemental Cash Flow Information
Income taxes paid		(2,699)
Non-cash recognition of new leases	$	1,992


	Year Ended December 31,
	2022
Subscription	$	29,015
Media		2,209
Implementation and customization		1,393
Total revenue	$	32,617


	December 31,
	2022
Computer software and hardware	$	12,888
Furniture and equipment		403
Leasehold improvements		1,381
Less: Accumulated depreciation		(10,583)
Total property and equipment, net	$	4,089


	December 31,
	2022
Ending balance, December 31, 2021	$	7,757
Currency translation adjustment		(809)
Ending balance, December 31, 2022	$	6,948


December 31, 2022	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization	Net Carrying Amount
Trade names	5 years	$	1,289	$	(1,289)	$	-
Technology	3 years		6,260		(6,260)		-
Customer relationships	6 years		16,938		(15,291)		1,647
Total		$	24,487	$	(22,840)	$	1,647


2023	$	1,647
2024		-
2025		-
2026		-
2027		-
Total future amortization expense	$	1,647


	December 31,
	2022
Deposits – short term	$	8
Sales tax receivable		42
Total other current assets	$	50


	Year Ended December 31,
	2022
Weighted-average remaining lease term (years)		2.5
Weighted average discount rate		2.3%


2027		-
Thereafter		-
Total lease payments		1,334
Less: imputed interest		(86)
Present value of operating lease liabilities	$	1,248


	Year Ended December 31,
	2022
Deferred tax assets/(liabilities):
Tax loss carryforwards	$	6,707
Depreciation and amortization		1,923
Right of use liability		312
Other		33
Valuation allowance		(7,719)
Total deferred tax assets		1,256

Research and development		(1,702)
Right of use asset		(302)
Total deferred tax liability		(2,004)
Net deferred tax liability	$	(748)


	Year Ended December 31,
	2022
Tax, computed at the federal statutory rate	$	(247)
State taxes, net of federal tax benefit		63
Impact of foreign operations		(652)
Global intangible low-taxed income		-
Meals, entertainment and other		1
Change in valuation allowance		(834)
Benefit from income taxes	$	(1,669)


	December 31,
	2022
Accrued liabilities	$	2,860
Accrued sales taxes		237
VAT taxes payable		748
Total accrued expenses and other current liabilities	$	3,845


	Year Ended December 31,
	2022
Related party transactions with Parent	$	7,111
General financing activities		1,270
Corporate allocations		(7,584)
Income tax benefit		(24)
Total net transfers to Parent per Combined Statement of Changes in Equity	$	773


	Year Ended December 31,
	2022
Operating lease cost	$	585
Overhead lease cost		238
Net lease cost	$	823


	Year Ended December 31,
	2022
U.S.	$	461
Foreign		(1,637)
Total	$	(1,176)


	Year Ended December 31,
	2022
Current income tax benefit:
U.S. – Federal	$	-
U.S. – State		-
Foreign		(1,473)
Total current income tax benefit	$	(1,473)

Deferred income tax benefit:
U.S. – Federal	$	-
U.S. – State		-
Foreign		(196)
Total current income tax benefit		(196)
Income tax benefit	$	(1,669)


Combined Balance Sheet (Unaudited)………………………….......................................................................................	3
Combined Statement of Operations (Unaudited)…………………………………….......................................................	4
Combined Statement of Comprehensive Income (Unaudited)………...............................................................................	5
Combined Statement of Changes in Equity (Unaudited)…………..…………………………………………………….	6
Combined Statement of Cash Flows (Unaudited)…………...………..………………………………………………….	7
Notes to the Combined Financial Statements (Unaudited)…………………………...…………………………………..	8


	March 31,
	2023
Assets
Current assets:
Cash and cash equivalents	$	5,753
Accounts receivable, net of allowances of $194		9,890
Prepaid expenses		1,796
Other current assets		53
Total current assets		17,492
Non-current assets:
Property and equipment, net		4,268
Operating lease right-of-use assets		1,062
Goodwill		7,100
Intangible assets, net of accumulated amortization		962
Other non-current assets		177
Total assets	$	31,061

Liabilities and parents’ equity
Current liabilities:
Accounts payable	$	1,257
Accrued expenses and other current liabilities		3,089
Accrued compensation-related expenses		587
Deferred revenue		10,484
Operating lease liabilities, current portion		507
Total current liabilities		15,924
Non-current liabilities:
Deferred income taxes		692
Non-current operating lease liabilities		577
Total liabilities		17,193

Parents’ equity
Net parent investment		15,792
Accumulated other comprehensive loss		(1,924)
Total parents’ equity		13,868
Total liabilities and parents’ equity	$	31,061


	Three Months Ended March 31,
	2023

Revenue	$	8,296
Operating expenses:
Cost of revenue		1,636
Sales and marketing		3,896
Product development		448
General and administrative		1,375
Depreciation and amortization		1,303
Total operating expenses		8,658
Loss from operations		(362)
Other expense, net		(309)
Loss before income taxes		(671)
Income tax benefit		159
Net loss	$	(512)


Subscription	$	7,452
Media		513
Implementation and customization		331
Total revenue	$	8,296


March 31, 2023	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization	Net Carrying Amount
Trade names	5 years	$	1,317	$	(1,317)	$	-
Technology	3 years		6,396		(6,396)		-
Customer relationships	6 years		17,308		(16,346)		962
Total		$	25,021	$	(24,059)	$	962


Corporate allocations		(1,848)
Income tax benefit		(1)
Total net transfers to Parent per Combined Statement of Changes in Equity	$	1,326



	Historical							Transaction Accounting Adjustments
	Veritone, Inc. (As reported)			Broadbean (Historical) After Reclassifications				Total PPA Step Up Adjustments				Total Pro Forma Adjustments				Pro Forma Combined
ASSETS
Cash and cash equivalents	$	139,707			5,753				(53,224	)	5(a)		-				92,236
Accounts receivable, net		54,071			9,890				-				-				63,961
Expenditures billable to clients		13,035			-				-				-				13,035
Prepaid expenses and other current assets		13,585			1,849		5(b)		-				-				15,434
Total current assets		220,398			17,492				(53,224	)			-				184,666
Property, equipment and improvements, net		6,394			4,268				-				-				10,662
Intangible assets, net		74,555			962				26,538		5(c)		-				102,055
Goodwill		46,460			7,100				19,185		5(d)		-				72,745
Long-term restricted cash		862			-				-				-				862
Other assets		13,901			1,239		5(e)		-				-				15,140
Total assets	$	362,570			31,061				(7,501	)			-				386,130
LIABILITIES AND STOCKHOLDERS' EQUITY									-				-
Accounts payable	$	38,015			1,257				-				-				39,272
Accrued media payments		82,407			-				-				-				82,407
Client advances		3,412			10,484		5(f)		-				-				13,896
Contingent consideration, current		190			-				-				-				190
Other accrued liabilities		28,123			4,183		5(g)		-				3,752		5(h)		36,058
Total current liabilities		152,147			15,924				-				3,752				171,823
Contingent consideration, non-current		137,982			-				-				-				137,982
Other non-current liabilities		11,721			1,269		5(i)		6,367		5(j)		-				19,357
Total liabilities		301,850			17,193				6,367				3,752				329,162
Commitments and contingencies
Stockholders' equity
Parents' equity		-			15,792				(15,792	)	5(k)		-				-
Common stock		37			-				-				-				37
Additional paid-in capital		455,759			-				-				-				455,759
Accumulated deficit / (retained earnings)		(394,234	)		-				-				(3,752	)	5(h)		(397,986	)
Accumulated other comprehensive loss		(842	)		(1,924	)			1,924		5(k)		-				(842	)
Total stockholders' equity		60,720			13,868				(13,868	)			(3,752	)			56,968
Total liabilities and stockholders' equity	$	362,570			31,061				(7,501	)			-				386,130


Acquisition Consideration:
Cash consideration at closing	$	53,224

Preliminary estimate of purchase price allocation:
Cash	$	5,753
Accounts receivable		9,890
Prepaid and other current assets		1,849
Property and equipment		4,268
Intangible assets		27,500
Other assets		1,239
Total assets acquired		50,499
Accounts payable		1,257
Accrued expenses and other current liabilities		4,183
Deferred revenue		10,484
Other non-current liabilities		7,636
Total liabilities assumed		23,560
Identifiable net assets acquired		26,939
Goodwill		26,285
Total preliminary purchase consideration	$	53,224


	Estimated Fair Value		Estimated Useful Lives (in years)
Customer relationships	$	17,200	5
Developed technology		10,300	4
Total intangible assets	$	27,500


	Three Months Ended March 31, 2023			Year Ended December 31, 2022
Numerator:
Pro forma net loss	$	(24,072	)	$	(30,105	)
Denominator:
Weighted average common shares outstanding		36,587,946			36,033,560
Pro forma basic and diluted net loss per share	$	(0.66	)	$	(0.84	)