Innovid (CTV) 10-K 29 Feb 24 2023 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Feb. 23, 2024	Jun. 30, 2023
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-40048
Entity Registrant Name	Innovid Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-3769599
Entity Address, Address Line One	30 Irving Place,
Entity Address, Address Line Two	12th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10003
City Area Code	212
Local Phone Number	966-7555
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction	false
Entity Shell Company	false
Entity Public Float			$ 116
Entity Common Stock, Shares Outstanding		141,823,352
Documents Incorporated by Reference	Portions of the registrant’s definitive Proxy Statement for its 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K.
Entity Central Index Key	0001835378
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Common stock, par value $0.0001 per share
Document Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	CTV
Security Exchange Name	NYSE
Warrant
Document Information [Line Items]
Title of 12(b) Security	Warrants to purchase one share of common stock, each at an exercise price of $11.50 per share
Trading Symbol	CTVWS
Security Exchange Name	NYSE

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	1281
Auditor Location	Tel-Aviv, Israel
Auditor Name	KOST FORER GABBAY & KASIERER

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 49,585	$ 37,541
Short-term bank deposits	165	10,000
Trade receivables, net (allowance for credit losses of $321 at December 31, 2023 and $65 at December 31, 2022, respectively)	46,420	43,653
Prepaid expenses and other current assets	5,450	2,640
Total current assets	101,620	93,834
Long-term deposit	264	277
Long-term restricted deposits	412	430
Property and equipment, net	18,419	14,322
Goodwill	102,473	116,976
Operating lease right of use asset	1,435	2,910
Intangible assets, net	24,318	29,918
Other non-current assets	1,014	938
Total non-current assets	148,335	165,771
TOTAL ASSETS	249,955	259,605
LIABILITIES AND STOCKHOLDER’ EQUITY
Trade payables	2,810	3,361
Employees and payroll accruals	14,060	10,165
Lease liabilities - current portion	1,200	2,186
Accrued expenses and other current liabilities	7,426	5,474
Total current liabilities	25,496	21,186
Long-term debt	20,000	20,000
Lease liabilities - non-current portion	634	1,636
Other non-current liabilities	7,528	6,554
Warrants liability	307	4,301
Total non-current liabilities	28,469	32,491
TOTAL LIABILITIES	53,965	53,677
COMMITMENTS AND CONTINGENT LIABILITIES (Note 12)
STOCKHOLDERS’ EQUITY:
Common stock: $0.0001 par value - Authorized: 500,000,000 at December 31, 2023 and December 31, 2022; Issued and outstanding: 141,194,179 and 133,882,414 at December 31, 2023, and December 31, 2022, respectively	13	13
Additional paid-in capital	378,774	356,801
Accumulated deficit	(182,797)	(150,886)
TOTAL STOCKHOLDERS’ EQUITY	195,990	205,928
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 249,955	$ 259,605

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Trade receivables, allowance for doubtful receivables	$ 321	$ 65
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	141,194,179	133,882,414
Common stock, shares outstanding (in shares)	141,194,179	133,882,414

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenue		$ 139,882,000	$ 127,117,000	$ 90,291,000
Cost of revenues	[1]	33,805,000	30,187,000	17,698,000
Research and development	[1]	26,878,000	31,118,000	24,299,000
Sales and marketing	[1]	45,571,000	50,266,000	32,841,000
General and administrative	[1]	39,086,000	39,144,000	20,641,000
Depreciation, amortization and long-lived assets impairment		12,996,000	6,143,000	661,000
Goodwill impairment		14,503,000	0	0
Operating loss		(32,957,000)	(29,741,000)	(5,849,000)
Finance (income) expenses, net		(3,420,000)	(13,348,000)	4,386,000
Loss before taxes		(29,537,000)	(16,393,000)	(10,235,000)
Taxes on income		2,374,000	2,017,000	1,237,000
Net loss		(31,911,000)	(18,410,000)	(11,472,000)
Accretion of preferred stock to redemption value		0	0	(77,063,000)
Net loss attributable to common stockholders, basic		(31,911,000)	(18,410,000)	(88,535,000)
Net loss attributable to common stockholders, diluted		$ (31,911,000)	$ (18,410,000)	$ (88,535,000)
Net loss per stock attributable to common stockholders
Net loss per share attributable to common stockholders – basic (in dollars per share)	[2]	$ (0.23)	$ (0.14)	$ (3.31)
Net loss per share attributable to common stockholders – diluted (in dollars per share)	[2]	$ (0.23)	$ (0.14)	$ (3.31)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic (in shares)	[2]	138,577,786	130,756,484	26,745,020
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	[2]	138,577,786	130,756,484	26,745,020
[1] (1) Exclusive of depreciation, amortization and long-lived assets impairment. (2) 2021 results have been adjusted to reflect the exchange of Innovid Inc’s common stock for Innovid Corp’s common stock at an exchange ratio of approximately 1.337 because of the Transaction.

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Nov. 30, 2021
Income Statement [Abstract]
Exchange ratio	1.337	1.337	1.337	1.337

STATEMENTS OF CHANGES IN TEMPOR

STATEMENTS OF CHANGES IN TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands		Total	Common stock	Treasury stock	Additional paid-in capital	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2020		73,690,340
Beginning balance at Dec. 31, 2020		$ 86,997
Increase (Decrease) in Temporary Equity [Roll Forward]
Accretion of preferred stocks to redemption value		$ 77,063
Conversion of redeemable convertible preferred stock into common stock (in shares)		(73,690,340)
Conversion of redeemable convertible preferred stock into common stock		$ (164,060)
Ending balance (in shares) at Dec. 31, 2021		0
Ending balance at Dec. 31, 2021		$ 0
Beginning balance (in shares) at Dec. 31, 2020			16,275,609
Balance at Dec. 31, 2020		(49,730)	$ 2	$ (1,629)	$ 10	$ (48,113)
Beginning balance (in shares) at Dec. 31, 2020				1,914,328
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of preferred stocks to redemption value		(77,063)			(4,172)	(72,891)
Conversion of redeemable convertible preferred stock into common stock (in shares)			73,690,340
Conversion of redeemable convertible preferred stock into common stock		164,060	$ 7		164,053
Reverse recapitalization, net (in shares)			25,154,340	(1,914,328)
Reverse recapitalization, net		126,026	$ 3	$ 1,629	124,394
Conversion of Legacy Innovid warrants (in shares)			507,994
Conversion of Legacy Innovid Warrants		5,080			5,080
Warrant exercised (in shares)	[1]		132,392
Stock-based compensation		3,273			3,273
Stock options exercised (in shares)			3,256,705
Stock options exercised		1,081			1,081
Net loss		(11,472)				(11,472)
Ending balance (in shares) at Dec. 31, 2021			119,017,380
Balance at Dec. 31, 2021		$ 161,255	$ 12	$ 0	293,719	(132,476)
Ending balance (in shares) at Dec. 31, 2021				0
Ending balance (in shares) at Dec. 31, 2022		0
Ending balance at Dec. 31, 2022		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock and equity awards issued for acquisition of TVS (in shares)			11,549,465
Common stock and equity awards issued for acquisition of TVS		47,152	$ 1		47,151
Stock-based compensation		14,945			14,945
Stock options exercised and RSUs vested, including tax effects (in shares)			3,315,569
Stock options exercised and RSUs vested		986			986
Net loss		$ (18,410)				(18,410)
Ending balance (in shares) at Dec. 31, 2022		133,882,414	133,882,414
Balance at Dec. 31, 2022		$ 205,928	$ 13	$ 0	356,801	(150,886)
Ending balance (in shares) at Dec. 31, 2022				0
Ending balance (in shares) at Dec. 31, 2023		0
Ending balance at Dec. 31, 2023		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		21,179			21,179
Stock options exercised and RSUs vested, including tax effects (in shares)			7,311,765
Stock options exercised and RSUs vested		794			794
Net loss		$ (31,911)				(31,911)
Ending balance (in shares) at Dec. 31, 2023		141,194,179	141,194,179
Balance at Dec. 31, 2023		$ 195,990	$ 13	$ 0	$ 378,774	$ (182,797)
Ending balance (in shares) at Dec. 31, 2023				0
[1]The warrant was exercised in November 2021 and was net share settled.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net loss	$ (31,911,000)	$ (18,410,000)	$ (11,472,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and long-lived assets impairment	12,996,000	6,143,000	661,000
Goodwill impairment	14,503,000	0	0
Stock-based compensation	20,000,000	13,781,000	3,273,000
Change in fair value of warrants	(3,994,000)	(14,671,000)	762,000
Founders notes forgiven	0	0	459,000
Transaction costs allocated to warrants	0	0	2,750,000
Loss on foreign exchange, net	729,000	0	0
Changes in operating assets and liabilities
Trade receivables, net	(2,767,000)	(4,045,000)	(618,000)
Prepaid expenses and other assets	(2,872,000)	755,000	(1,823,000)
Operating lease right of use assets	1,764,000	1,831,000	0
Trade payables	(551,000)	(622,000)	1,500,000
Employees and payroll accruals	3,895,000	1,710,000	1,236,000
Operating lease liabilities	(2,277,000)	(2,335,000)	0
Accrued expenses and other liabilities	2,925,000	4,302,000	851,000
Net cash provided by / (used in) operating activities	12,440,000	(11,561,000)	(2,421,000)
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	0	(99,097,000)	0
Internal use software capitalization	(9,630,000)	(9,961,000)	(2,594,000)
Purchase of property and equipment	(684,000)	(488,000)	(549,000)
Founders’ note receivable	0	0	(459,000)
Investment in short-term bank deposits	(165,000)	(10,000,000)	0
Withdrawal of short-term bank deposits	10,000,000	0	0
Other deposits	0	120,000	(85,000)
Net cash used in) investing activities	(479,000)	(119,426,000)	(3,687,000)
Cash flows from financing activities:
Proceeds from reverse recapitalization, net	0	0	149,252,000
Proceeds from loans	35,000,000	14,000,000	0
Loan repayment	(35,000,000)	0	(3,033,000)
Repayment of acquisition liability	0	0	(126,000)
Payment of SPAC merger transaction costs	0	(3,185,000)	0
Proceeds from exercise of options	794,000	985,000	1,081,000
Net cash provided by financing activities	794,000	11,800,000	147,174,000
Effect of exchange rates on cash, cash equivalent and restricted cash	(729,000)	0	0
Increase (decrease) in cash, cash equivalents and restricted cash	12,026,000	(119,187,000)	141,066,000
Cash, cash equivalents and restricted cash, beginning of the year	37,971,000	157,158,000	16,092,000
Cash, cash equivalents and restricted cash, end of the year	49,997,000	37,971,000	157,158,000
Supplemental disclosures:
Income taxes paid, net of tax refunds	1,508,000	785,000	535,000
Interest paid	1,451,000	675,000	259,000
Non-cash transactions
Conversion of redeemable convertible preferred stock into common stock	0	0	164,060,000
Conversion of Legacy Innovid Warrants	0	0	5,080,000
Accretion of preferred stocks to redemption value	0	0	77,063,000
Accrued transaction cost, not yet paid	0	0	3,185,000
Business combination consideration paid in stock	0	47,152,000	0
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents	49,585,000	37,541,000	156,696,000
Long-term restricted deposits	412,000	430,000	462,000
Total cash, cash equivalents, and restricted cash	$ 49,997,000	$ 37,971,000	$ 157,158,000

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Innovid Corp. together with its consolidated subsidiaries, the “Company” or “Innovid”, is an enterprise software platform for the creation, delivery, measurement, and optimization of advertising across connected TV (“CTV”), mobile and desktop environments. We provide critical technology infrastructure for many of the world’s largest brands, agencies, and publishers, and empower them to create ad-supported TV experiences people love. Our cloud-based platform tightly integrates with the highly fragmented advertising technology and media ecosystem, and includes three key solutions: ad serving, creative personalization, and measurement. Innovid Corp. was originally incorporated as ION Acquisition Corp. 2 Ltd. (“ION”), a special purpose acquisition company, on November 23, 2020 and Innovid, Inc. was the surviving entity following the completion of the merger with ION on November 30, 2021 (the “Transaction”) as described below. On November 30, 2021, ION consummated a series of merger transactions, whereby it acquired the business of Innovid Inc. Immediately following these mergers, ION changed its name to “Innovid Corp.” In addition, ION entered into certain subscription agreements (“PIPE Investment”). Further, in connection with the closing of the Transaction, PIPE investors purchased equity securities of Innovid Inc. stockholders (the “Secondary Sale Transaction”) for an aggregate purchase price of $68,855. Upon the consummation of the Transaction. all outstanding shares of Innovid Inc. common stock, Innovid Inc. redeemable convertible preferred stock, Innovid Inc. warrants, and Secondary Sale Transaction were exchanged for 93,787,278 shares of common stock in Innovid Corp. Each share of Innovid Inc. redeemable convertible preferred stock and common stock was converted into the right to receive approximately 1.337 shares of the common stock of the Company. Innovid Corp. received approximately $149,252 in cash proceeds, net of transaction costs paid. As a result of the Transaction, the Company assumed the outstanding Public Warrants to purchase 3,162,500 shares of the Company’s common stock and the outstanding Private Warrants to purchase 7,060,000 shares of the Company’s common stock. Refer to Note 11, Warrants for further details. On February 28, 2022, the Company completed the acquisition of all outstanding shares of TVSquared (“TVS”), an independent global measurement and attribution platform for converged TV and a private company limited by shares incorporated under the laws of the Scotland in a combination of cash and stock and stock option issuances. See Note 3, Acquisition for further details. Innovid Corp.’s common stock and warrants have been traded on the NYSE under the symbols “CTV” and “CTV.WS,” respectively, since December 1, 2021.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements and notes to the consolidated financial statements included in this Annual Report on Form 10-K are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for annual financial information and the instructions to Form 10-K and Article 10 of Regulation S-X. The accompanying consolidated financial statements include its accounts and those of its wholly-owned subsidiaries; all intercompany activity and balances have been eliminated. The consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of the consolidated balance sheets of the Company as of December 31, 2023 and 2022 and the consolidated results of operations and cash flows for the years ended December 31, 2023, 2022 and 2021. Prior Period Reclassification In the second quarter of 2022, the Company reclassified amounts recorded for depreciation, amortization and impairment expenses and presented them as a separate line item on its consolidated statements of operations. Additionally, the Company no longer presents gross profit as a subtotal on its consolidated statements of operations. All prior periods have been adjusted. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to income tax uncertainties, deferred taxes, share-based compensation, as well as the fair value of assets acquired, and liabilities assumed in business combinations. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Global Events A number of Company’s employees, including some senior employees and two of our directors are residents of Israel. As of today, the Company’s business operations have not been disrupted to any significant extent and the Company does not anticipate any material impact to operations going forward amidst the war in Israel. All of our infrastructure and internal networks are cloud-based and are located outside of Israel. Key systems and IT functions are distributed globally, and our customer care and sales teams are situated mainly in the US, the UK and Argentina. Our office in Israel is primarily a research and development facility and is one of three of our worldwide research and development facilities. Accounting Policies Functional currency A majority of the Company’s revenue is generated in US dollars. A substantial portion of the Company’s costs are incurred in US dollars. The Company’s management believes that the US dollar is the currency of the primary economic environment in which the Company and each of its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the US dollar. Accordingly, accounts maintained in currencies other than the US dollar are re-measured into US dollars. All translation gains and losses resulting from the re-measurement of monetary assets and liabilities that are not denominated in the functional currency are recorded in finance (income) expenses, net on the consolidated statements of operations. Cash and cash equivalents Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. Short-term bank deposits The Company utilizes short-term deposits in order to maximize the use of cash on hand. As of December 31, 2023, the Company’s foreign subsidiary held deposits in local financial institutions with earnings that align with the country’s rate of inflation. As of December 31, 2022, the Company had deposits of $10,000 with original maturities greater than 90 days at 4.1% interest held with a US financial institution. Restricted deposits Restricted deposits, presented in prepaid expenses and other current assets and in long-term restricted deposits, are deposits used as security for the Company’s credit cards and for the rental of premises, respectively. As of December 31, 2023 and 2022, the Company’s restricted deposits are denominated in New Israeli Shekels (“NIS”) and bore interest at weighted average interest rates of 4.4% and 0.01%, respectively. Restricted deposits are presented at their cost, including accrued interest. Trade receivable, net The Company records trade receivables for amounts invoiced and yet unbilled invoices. The Company’s expected loss allowance methodology for trade receivables is based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses on the Company's consolidated statements of operations. Property and equipment, net Property and equipment are stated at cost, net of accumulated depreciation and impairment loss. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Years Computers and peripheral equipment 3 Office furniture and equipment 5-7 Leasehold improvements The shorter of the lease term or the useful life of the asset Internal-use software 3 Software development costs Software development costs, which are included in property and equipment, net, consist of capitalized costs related to purchase and develop internal-use software. The Company uses such software to provide services to its customers. The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended. These costs include personnel and personnel-related employee benefits for employees directly associated with the software development and external costs of the materials or services consumed in developing or obtaining the software. Any costs incurred for upgrades and functionality enhancements of the software are also capitalized. Once this software is ready for use in providing the Company's services, these costs are amortized on a straight-line basis over the three-year estimated useful life. The amortization is presented within depreciation and amortization in the consolidated statements of operations. During the years ended December 31, 2023 and 2022, the Company capitalized internal-use software cost of $10,809 an d $11,143, respectively. During the year ended December 31, 2022, the Company recorded impairment charges included in depreciation, amortization and long-lived assets impairment in the consolidated statement of operations of $547 due to the abandonment of certain internal use software projects. Business combinations The Company accounts for business combinations by applying the provisions of ASC 805, Business Combination (“ASC 805”) and allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair value of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Acquisition-related expenses are expensed as incurred. Goodwill and acquired intangible assets Goodwill and acquired intangible assets recorded in the Company's financial statements result from various business combinations. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized as it is estimated to have an indefinite life. As such, goodwill is subject to an annual impairment test. The Company allocates goodwill to reporting units based on the expected benefit from the business combination. Reporting units are evaluated when changes in the Company’s operating structure occur, and if necessary, goodwill is reassigned using a relative fair value allocation approach. The Company operates in one operating segment, and this segment is the only reporting unit. ASC 350, Intangibles—Goodwill and Other (“ASC 350”) requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. During the second quarter of 2023, the Company experienced a decline in its stock price resulting in its market capitalization being less than the carrying value of its reporting unit. As a result, the Company performed a quantitative assessment of its reporting unit. The fair value was determined based on the market approach. The market approach utilizes the Company's market capitalization plus an appropriate control premium. Market capitalization is determined by multiplying the number of common stock outstanding by the market price of its common stock. The control premium is determined by utilizing publicly available data from studies for similar transactions of public companies. As a result of this assessment, the Company recorded a goodwill impairment charge of $14,503. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. The Company performed its annual goodwill impairment test on October 1, 2023, and the Company concluded that no additional goodwill impairment should be recorded. There were no impairments of goodwill during the years ended December 31, 2022 and 2021. Refer to Note 6, Goodwill and Intangible Assets for further details. Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Customer relationships and acquired technology are amortized on a straight-line basis over the estimated useful life of the assets; approximately 11 years and 6 years, respectively. Amortization of customer relationships and acquired technology is presented within depreciation, amortization and long-lived assets impairment in the consolidated statement of operations. During the year ended December 31, 2023, the Company decided to stop using the trade name. As a result, the Company reassessed the amortization period of the trade name. As of December 31, 2023, the trade name was fully amortized. Impairment of long-lived assets Long-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for impairment whenever facts or circumstances either internally or externally may indicate that the carrying value of an asset may not be recoverable. If there are indications of an impairment, the Company tests for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of the asset to the carrying amount of the asset or asset group. If the asset or asset group is determined to be impaired, any excess of the carrying value of the asset or asset group over its estimated fair value is recognized as an impairment loss. The development of the Company’s measurement product in 2023, prompted the Company to assess whether an impairment loss should be recorded on its measurement legacy product. As result of this assessment, the Company has concluded that its legacy measurement product is not recoverable and that an impairment loss should be recognized. The Company used the income approach to measure the impairment loss and for the year ended December 31, 2023, recorded an impairment loss of $2,253. Leases Innovid's lease portfolio primarily consists of real estate properties. Short-term leases with a term of 12 months or less are not recorded on the balance sheet. Innovid does not separate lease components from non-lease components. The Company is a lessee in all its lease agreements. The Company records lease liabilities based on the present value of lease payments over the lease term. Innovid generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the Company's control. Optional renewal periods are included in the lease term when it is reasonably certain that the Company will exercise its option. Variable lease payments are primarily related to payments to lessors for taxes, maintenance, insurance, and other operating costs. The Company's lease agreements do not contain any significant residual value guarantees or restrictive covenants. Fair value of financial instruments The Company applies a fair value framework to measure its financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The Company’s financial instruments consist of cash and cash equivalents, restricted deposits, trade receivables, net, trade payables, employees and payroll accruals, accrued expenses and other current liabilities and current portions of long term debt. Their historical carrying amounts are approximate fair values due to the short-term maturities of these instruments. The Company’s investments in money market funds are classified as cash equivalents and measured at fair value. The Company measures its warrants liability at fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The goodwill impairment recorded in the year ended December 31, 2023 was estimated using the Company's stock price, a Level 1 input, adjusted for an estimated control premium. The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, 2023 Level 1 Level 2 Level 3 Assets: Money market funds $ 32,264 $ — $ — Liabilities: Warrants liability $ 307 $ — $ — December 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds $ 18,948 $ — $ — Certificates of deposit $ — $ 20,000 $ — Liabilities: Warrants liability $ 1,265 $ — $ 3,036 The change in the fair value of the Level 3 warrant liability is summarized below: December 31, 2023 2022 Beginning of the year $ 3,036 $ 15,462 Change in fair value (2,330) (12,426) Transfer to level 1 (706) — End of the year $ — $ 3,036 Certificates of deposit represented deposits with certain financial institutions with maturities up to 180 days. These amounts are included in cash equivalents and short-term bank deposits on our consolidated balance sheet and are carried at cost, which approximates fair value. As of December 31, 2023, the Company’s warrant liability represents the warrants that were assumed in the Transaction, which were originally issued in connection with ION’s initial public offering (refer to Note 11, Warrants ). The Company’s warrants are recorded on the balance sheet at fair value. This valuation is subject to re-measurement at each balance sheet date. The Company determines the fair value of the warrants by using the closing price of the Company’s warrants. As of December 31, 2023, almost all of the Company’s private warrants were transferred by the original holders and therefore are no longer classified as Level 3. Gains and losses from the remeasurement of the warrants liability are recognized in finance (income) expenses, net in the consolidated statements of operations. As of December 31, 2022, the Company’s private warrants were classified as Level 3 and were valued based on a Black-Scholes option pricing model for the private warrants were as follows: December 31, 2022 Risk-free interest rate 4.07 % Expected dividends — % Expected term (years) 3.9 Expected volatility 85 % Accrued employee benefits 401(k) profit sharing plan The Company has a 401(k) retirement savings plan with a safe harbor employer match with a maximum of 4% employer contribution for its eligible employees in the US. During the years ended December 31, 2023, 2022 and 2021 the Company recorded expenses for matching contributions in the amount of $1,204, $1,182 and $961, respectively. Severance pay The Israeli Severance Pay Law, 1963 (“Severance Pay Law”), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month salary for each year of employment, or a portion thereof. The Israeli Subsidiary’s liability for all of its Israeli employees is covered by the provisions of Section 14 of the Severance Pay Law (“Section 14”). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.3% of their monthly salary, continued on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company’s balance sheets. Severance pay expenses for the years ended December 31, 2023, 2022 and 2021, amounted to approximately $830, $946 and $755, respectively. Income taxes and tax contingencies Income taxes are computed using a balance sheet approach reflecting both current and deferred taxes. Current and deferred taxes reflect the tax impact of all of the events included in the financial statements. The basic principles employed in the balance sheet approach are to reflect a current tax liability or asset that is recognized for the estimated taxes payable or refundable on tax returns for the current and prior years, a deferred tax liability or asset that is recognized for the estimated future tax effects attributable to temporary differences and carryforwards, the measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law of which the effects of future changes in tax laws or rates are not anticipated, and the measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. There are certain situations in which deferred taxes are not provided. Some basis differences are not temporary differences because their reversals are not expected to result in taxable or deductible amounts. The Company regularly evaluates deferred tax assets for future realization and establishes a valuation allowance to the extent that a portion is not more likely than not to be realized. The Company considers whether it is more likely than not that the deferred tax assets will be realized, including existing cumulative losses in recent years, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates. ASC 740, Income Taxes (“ASC 740”) contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest related to unrecognized tax benefits in taxes on income. On December 20, 2017, Congress passed the (“US Tax Act”). The US Tax Act requires complex computations to be performed that were not previously required by US tax law, significant judgments to be made in interpretation of the provisions of the US Tax Act, significant estimates in calculations, and the preparation and analysis of information not previously relevant or regularly produced the Act provides that a person who is a US shareholder of any controlled foreign corporation (“CFC”) is required to include its Global Intangible Low-Taxed Income (“GILTI”) in gross income for the tax year in a manner generally similar to that for Subpart F inclusions. The term “global intangible low-taxed income” is defined as the excess (if any) of the US shareholder’s net CFC tested income for that tax year, over the US shareholder’s net deemed tangible income return for that tax year. The Company’s policy is to treat GILTI as a period expense in the provision for income taxes. Concentrations of credit risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, deposits and trade receivables, net. The majority of the Company’s cash and cash equivalents are invested in deposits with major banks in US, Israel and UK. The Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. Generally, these investments may be redeemed upon demand and, therefore, bear minimal risk. The Company’s trade receivables, net are mainly derived from sales to customers located in the US, APAC, EMEA, and LATAM. The Company mitigates its credit risk by performing an ongoing credit evaluations of its customers’ financial conditions. The Company has no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. During the years ended December 31, 2023, 2022 and 2021, two of the Company’s customers accounted for more than 10% of the Company’s total revenue as presented below: Year ended December 31, 2023 2022 2021 Customer A 16 % 11 % *) Customer B *) 10 % *) * less than 10% Stock-based compensation The Company estimates the fair value of stock-based awards on the date of grant. The fair value of stock options with service conditions is calculated using a Black-Scholes option pricing model. The grant date fair value of stock-based awards with graded vesting is recognized on a straight-line basis over the requisite service period. The determination of the fair value of the Company’s stock option awards is based on a variety of factors including Company’s common stock price, risk-free interest rate, expected volatility, expected life of awards and dividend yield. The Company has limited option exercise history and has elected to estimate the expected life of the stock option awards using the “simplified method” with the continued use of this method extended until such time that the Company has sufficient exercise history. The expected volatility of the price of such stock is based on volatility of similar companies whose stock prices are publicly available over a historical period equivalent to the option’s expected term. The dividend yield is based on the Company’s historical and future expectation of dividends payouts. Historically, the Company has not paid cash dividends. Risk-free interest rates are based on the yield from US Treasury zero-coupon bonds with a term equivalent to the expected term of the options. The Company accounts for forfeitures as they occur. Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance. The assessment considers whether the warrants are freestanding financial instruments, meet the definition of a liability under ASC 480, and meet all of the requirements for equity classification, including whether the warrants are indexed to the Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent reporting period end date while the warrants are outstanding. Warrants that meet all the criteria for equity classification, are required to be recorded as a component of additional paid-in capital. Warrants that do not meet all the criteria for equity classification, are required to be recorded as liabilities at their initial fair value on the date of issuance and remeasured to fair value at each balance sheet date thereafter. The liability-classified warrants are recorded under non-current liabilities. Changes in the estimated fair value of the warrants are recognized in financial (income) expenses, net in the consolidated statements of operations. Revenue recognition The majority of the Company’s revenue is derived from digital ad solutions, where the Company provides a cloud based ad serving platform for use by advertisers, media agencies and publishers. Standard, interactive and data driven digital video ads are delivered through this ad serving platform. Advertising impressions are served via the Company’s cloud based ad serving platform to various digital publishers across CTV, mobile TV, desktop TV, display, and other channels. InnovidXP, the Company’s cloud based cross-platform TV Ad measurement solution, measures the efficiency of CTV advertising and in-flight optimizations for TV marketers. The customers get insights into the effectiveness of their TV and digital advertising. The Company also provides creative services for the design and development of interactive data-driven and dynamic ad formats by adding data, interactivity and dynamic features to standard ad units. The Company recognizes revenue when its customer obtains control of promised services in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) and determines revenue recognition through the following steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct and are separately identifiable, the Company allocates the contract consideration to all distinct performance obligations based on their relative standalone selling price (“SSP”). SSP is typically estimated based on observable transactions when these services are sold on a standalone basis. Revenue related to ad serving is recognized when impressions are delivered via the Company’s ad serving platform. The Company recognizes revenue from the display of impression-based ads in the contracted period in which the impressions are delivered. Impressions are considered delivered when an ad is displayed to users. Revenue related to Innovid XP solution is recognized over time, since the customer simultaneously receives and consumes the benefits provided by the Company’s performance. Revenue for these measurement services is recognized over the service period. Revenue related to creative projects is recognized when the Company delivers an ad unit. Creative services projects are usually delivered within a week. The Company’s accounts receivable, consist primarily of receivables related to products and services, for which the Company’s contracted performance obligations have been satisfied, the amount has been billed and the Company has an unconditional right to payment. The Company typically bills customers monthly based on actual delivery. The payment terms vary, mainly with terms of 60 days or less. The typical contract term is 12 months or less for ASC 606 purposes. Most of the Company’s contracts can be cancelled without cause. The Company has the unconditional right to payment for the services provided as of the date of the termination of the contracts. The Company applies the practical expedient in ASC 606 and does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Deferred revenue represent mostly unrecognized fees billed or collected for measurement platform services. Deferred revenue is recognized as (or when) the Company performs under the contract. Revenue from ad serving solutions via Innovid’s ad serving platform were 73.3%, 76.7%, and 93.6% of the Company’s revenue for the years ended December 31, 2023, 2022 and 2021, respectively. Revenue from measurement subscriptions were 23.1%, 19.7% and 1.6% for the years ended December 31, 2023, 2022 and 2021, respectively. Creative services were 3.6%, 3.6% and 4.8% of the Company’s revenue for the years ended December 31, 2023, 2022 and 2021, respectively. Costs to obtain a contract Contract costs include commission programs to compensate sales employees for generating sales orders with new customers or for new services with existing customers. The Company elected to apply the practical expedient and recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. Most of the Company’s commissions are commensurate. If commissions are not eligible for the practical expedient, the Company capitalizes these commissions. Capitalized commissions are amortized over three years. As of December 31, 2023 and 2022, capitalized commissions costs were immaterial. Cost of revenue Cost of re

ACQUISITION

ACQUISITION	12 Months Ended
	Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]
ACQUISITION	ACQUISITION On February 28, 2022, the Company completed the acquisition of TVS. TVS is an independent global measurement and attribution platform for converged TV and a private company limited by shares incorporated under the laws of Scotland. The Company acquired all the equity of TVS for an aggregate amount of approximately $100,000 in cash, 11,549,465 shares of the Company common stock at fair value of $3.80 per share, and the issuance of 949,893 fully vested stock option of the Company at weighted average fair value of $3.49, subject to certain adjustments as defined in the Stock Purchase Agreement. The Company, through this acquisition, added a real-time, cross-platform service to its offerings, including measurement outcomes such as frequency and unique unduplicated reach and performance metrics. The combination of ad serving, and cross-platform measurement enables the buy- and sell-sides to solve fragmentation by unlocking a complete picture of advertising across the linear TV, CTV and digital video marketplaces. The acquisition of TVS has been accounted for as a business combination using the acquisition method of accounting. The Company finalized the purchase accounting for the TVS acquisition during the fourth quarter of 2022. The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date: Total value Cash and cash equivalents $ 5,318 Accounts receivables 4,186 Other current assets 1,173 Property and equipment 154 Total tangible assets 10,831 Technology 15,075 Customer relationships 16,700 Trade name 2,000 Goodwill 112,421 Total assets acquired 157,027 Less: deferred tax liabilities (1,677) Less: other assumed liabilities (3,782) Net assets acquired $ 151,568 Intangible assets related to technology and customer relationship and trade name were amortized over the estimated useful lives of approximately 6 years, 11 years and 4 years, respectively. During the year ended December 31, 2023, the Company decided to stop using the trade name, see Note 2, Summary of Significant Accounting Policies. The estimated fair values of identifiable intangible assets were determined using the "income approach", which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. Some of the more significant assumptions inherent in the development of these asset valuations include the estimated net cash flows for each year for the appropriate discount rate necessary to measure the risk inherent in each future cash flow stream, the life cycle of each asset, competitive trends impacting the asset and each cash flow stream, as well as other factors. Goodwill recognized from the acquisition of TVS represents the value of additional growth potential of the revenue base from the creation of a single combined global organization and synergies related to combined IT efforts for enhancement of the existing and acquired technologies. The goodwill is not deductible for tax purposes. In addition to the purchase consideration, the Company entered into cash compensation arrangements with certain employees, which amounted to $9,700 in aggregate and are subject to certain performance and employment conditions following the acquisition date. As of December 31, 2023, the actual pay out under this arrangement is expected to be $3,905 of which $2,805 were paid and remainder will be paid in the first quarter of 2024. The Company incurred approximately $5,000 in total transaction costs for the acquisition. Acquisition related transaction costs include legal, accounting fees and other professional costs directly related to the acquisition and were recognized in general and administrative in the consolidated statements of operations. Unaudited Pro Forma Financial Informa ti on The following table presents the unaudited pro forma combined results of Innovid and TVS for the year ended December 31, 2022, and 2021 as if the acquisition of TVS had occurred on January 1, 2021: Year ended December 31, 2022 2021 Revenue $ 131,433 $ 112,147 Net loss (14,634) (37,195) The unaudited pro forma combined financial information was prepared using the acquisition method of accounting and was based on the historical financial information of Innovid and TVS. In order to reflect the occurrence of the acquisition on January 1, 2021, the unaudited pro forma financial information includes adjustments to reflect incremental amortization expense to be incurred based on the current preliminary fair values of the identifiable intangible assets acquired and the reclassification of acquisition-related costs incurred during the year ended December 31, 2022 and December 31, 2021. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2021. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company.

PREPAID AND OTHER CURRENT ASSET

PREPAID AND OTHER CURRENT ASSETS	12 Months Ended
	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID AND OTHER CURRENT ASSETS	PREPAID AND OTHER CURRENT ASSETS Prepaid and other current assets consist of the following: December 31, 2023 2022 Prepaid expenses $ 4,027 $ 1,721 Deposits 127 99 Government authorities 193 204 Other current assets 1,103 616 Total $ 5,450 $ 2,640

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: December 31, 2023 2022 Software development costs $ 23,999 $ 13,190 Computers and peripheral equipment 1,814 2,283 Office furniture and equipment 705 665 Leasehold improvements 2,168 2,167 Total cost 28,686 18,305 Accumulated depreciation and impairment (10,267) (3,983) Property and equipment, net $ 18,419 $ 14,322 Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $4,850, $1,626 and $630, respectively.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS Goodwill Changes in the carrying amount of goodwill are as follows: Amount Balance at December 31, 2021 4,555 Acquisitions 112,421 Balance at December 31, 2022 116,976 Impairment (14,503) Balance at December 31, 2023 102,473 During the second quarter of 2023, the Company recorded a goodwill impairment charge of $14,503. See Note 2, Summary of Significant Accounting Policies for details. Intangible assets Intangible assets are amortized on a straight line basis over their estimated useful lives. Intangible assets are as follows: December 31, 2023 December 31, 2022 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 9.2 16,898 (2,987) 13,911 $ 16,898 $ (1,469) $ 15,429 Acquired technology 4.2 15,275 (4,868) 10,407 15,275 (2,367) 12,907 Trade name — — — 2,000 (418) $ 1,582 Total $ 32,173 $ (7,855) $ 24,318 $ 34,173 $ (4,254) $ 29,918 The weighted average useful life of our intangible assets at December 31, 2023 was 7.0 years. As described in Note 3, Acquisition, the Company acquired several intangible assets as part of the TVS acquisition. The intangible assets have no assigned residual values. Amortization expense was $5,601, $3,850, and $33 during the years 2023, 2022, and 2021, respectively. As of December 31, 2023, estimated future intangible amortization expense was as follows: Amortization Expense 2024 $ 4,018 2025 4,018 2026 4,018 2027 4,018 2028 1,925 Thereafter 6,321 Total $ 24,318

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2023
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: December 31, 2023 2022 Accrued expenses $ 3,269 $ 3,544 Tax payables 2,590 1,325 Deferred revenue and advances from customers 1,506 426 Other current liabilities 61 179 Total $ 7,426 $ 5,474

LEASES

LEASES	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
LEASES	LEASES The Company has the following operating right-of-use (“ROU”) assets and lease liabilities: December 31, 2023 December 31, 2022 ROU assets Lease liabilities ROU assets Lease liabilities Real estate $ 1,435 $ 1,834 $ 2,886 $ 3,801 Vehicles — — 24 21 Total operating leases $ 1,435 $ 1,834 $ 2,910 $ 3,822 December 31, 2023 December 31, 2022 Lease liabilities Lease liabilities Current lease liabilities $ 1,200 $ 2,186 Non-current lease liabilities 634 1,636 Total lease liabilities $ 1,834 $ 3,822 Lease expense components recognized in the consolidated statement of operations was as follows: Year ended December 31, 2023 2022 Operating lease cost $ 1,897 $ 1,889 Short term lease cost 993 973 Variable lease cost 103 48 Total lease cost $ 2,993 $ 2,910 As of December 31, 2023, the weighted-average remaining lease term and weighted-average discount rate for operating leases are 1.6 years and 5.5%, respectively. Supplemental cash flow information regarding the company's operating leases was as follow: Year ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 2,161 $ 2,162 ROU assets obtained in exchange for operating lease liabilities upon lease modification $ 289 $ 610 Future minimum commitments under the Company’s operating lease were are follows: December 31, 2023 2024 $ 1,220 2025 649 Thereafter — Total undiscounted lease payments $ 1,869 Less: imputed interest (35) Total operating lease liabilities $ 1,834 Lease Disclosures Related to Periods Prior to the Adoption of ASU 2016-02 are as follows: Operating lease expense for the year ended December 31, 2021 was $2,072. Future minimum lease commitments under non-cancelable operating leases as of December 31, 2021, were as follows: Rental of premises Lease of vehicles 2022 $ 2,486 $ 8 2023 1,844 — 2024 826 — 2025 770 — Total $ 5,926 $ 8

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT On August 4, 2022, two wholly owned subsidiaries of the Company, Innovid LLC and TV Squared Inc, entered an amended and restated loan and security agreement with Silicon Valley Bank (the “2022 A&R Agreement”), to increase the revolving line of credit from $15,000 to $50,000 (the “New Revolving Credit Facility”). The 2022 A&R Agreement and the New Revolving Credit Facility were amended by a First Loan Modification Agreement dated August 2, 2023 (the “2023 Modification Agreement”). The interest for the New Revolving Credit Facility is payable monthly in arrears. The New Revolving Credit Facility bears interest at an annual rate which is the greater of (a) WSJ Prime Rate plus 0.25% or (b) 4.25%, on the aggregate outstanding balance. Additional fees include fees in an amount of 0.20% per annum of the average unused portion of the New Revolving Credit Facility to be paid quarterly in arrears. The Company paid non-refundable commitment fees of $40 and $75 at inception and each subsequent anniversary of the modification date, respectively. A modification fee of $20 was paid on the date of the 2023 Modification Agreement. The maturity date of the 2022 A&R Agreement, as amended by the 2023 Modification Agreement, is June 30, 2025. The New Revolving Credit Facility is subject to certain customary conditions precedent to the credit extension as stated in the 2022 A&R Agreement and is secured by substantially all of the Company’s assets and continues to place limitations on indebtedness, liens, distributions, investments, asset sales, transactions with affiliates and acquisitions and conduct of business, all as defined in the agreement. Prior to the 2023 Modification Agreement, the New Revolving Credit Facility bore interest at an annual rate which was the greater of (a) WSJ Prime Rate plus 0.75% or (b) 4.25%. The New Revolving Credit Facility requires the Company to comply with all covenants, primarily maintaining an adjusted quick ratio of at least 1.30 to 1.00. As defined in the 2022 A&R Agreement “adjusted quick ratio” is the ratio of (a) quick assets to (b) current liabilities minus the current portion of deferred revenue. “Quick assets” are determined as the Company’s unrestricted cash plus accounts receivable, net, and is determined according to US GAAP. The Company is also required to maintain the minimum quarterly adjusted EBITDA as defined in the 2022 A&R Agreement if the Company does not maintain the quarterly adjusted quick ratio of at least 1.50 to 1.00. Throughout the reporting period, the Company utilizes the credit line on an as needed basis. The amounts drawn and repaid range from $5,000 to $15,000. As of December 31, 2023 and December 31, 2022, the Company utilized $20,000 of the $50,000 credit line and on January 11, 2024, the amount was repaid. See Note 15, Finance Expense (Income), Net for interest expense. As of December 31, 2023, the Company was in compliance with all the covenants. The Company recognizes gains and losses from the remeasurement of its warrants liability in finance (income) expenses, net in the consolidated statements of operations. The unrealized gain from changes in the fair value of the Company warrants for the years ended December 31, 2023, 2022 and 2021 was $3,994, $14,671 and $3,819, respectively. The Company also recognized interest expenses in finance (income) expenses, net in the consolidated statements of operations. Interest expense for the years ended December 31, 2023, 2022 and 2021 was $1,451, $675 and $259, respectively. Interest income for the years ended December 31, 2023, 2022 and 2021, was $1,523, $747 and $15, respectively.

OTHER NON-CURRENT LIABILITIES

OTHER NON-CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
OTHER NON-CURRENT LIABILITIES	OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of the following: December 31, 2023 2022 Uncertain tax position 4,122 3,865 Deferred tax liability — 489 Other non-current liabilities 3,406 2,200 Total $ 7,528 $ 6,554

WARRANTS

WARRANTS	12 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
WARRANTS	WARRANTS As of December 31, 2023, the Company had 3,162,500 public warrants and 7,060,000 private warrants outstanding. During the year ended December 31, 2023, the majority of the private warrants (the “Transferred Private Warrants”) had been transferred from their initial holder to other transferees, making the Transferred Private Warrants terms now identical to the public warrants resulting in use of the same price for valuation purposes. The remaining amount of private warrants are immaterial. The public warrants are exercisable in whole share increments; no fractional shares will be issued. The public warrants were exercisable on the later of (a) 30 after the completion of the Transaction and (b) one year from the closing of the Initial Public Offering. The public warrants expire five years from the completion of the Transaction or earlier upon redemption or liquidation. The public warrants may be redeemed by the Company at a price of $0.01 per warrant if the Company’s stock price equals or exceeds $18.00 during any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. If the Company issues a notice of redemption of the warrants, each warrant holder will be entitled to exercise the warrant prior to the scheduled redemption date. The public warrants may be redeemed by the Company at a price of $0.10 per warrant if the Company’s stock price upon a minimum of 30 days’ prior written notice of redemption; if holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares determined based on the redemption date and the fair market value of the Innovid Corp. common stock equals or exceeds $10.00 during any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. Upon a minimum of 30 days’ prior written notice of redemption; the warrant holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares determined based on the redemption date and the fair market value of the Company’s common stock. The Company evaluated the warrants in accordance with ASC 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity and concluded that the warrants do not meet all the conditions to be classified as equity pursuant to ASC 815-40. As the warrants do not meet all the requirements for equity classification, the Company warrants are recorded as liabilities o n the balance sheets an d measured at fair value with changes in fair value recognized in earnings. Refer to Note 2, Summary of Significant Accounting Policies, for details regarding the fair value of the Company’s warrants and see Note 15, Finance Expense (Income), Net

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	COMMITMENTS AND CONTINGENT LIABILITIES Pledges and bank guarantees: 1. In conjunction with the 2022 A&R Agreement (see Note 9, Long-term Debt ), Innovid LLC. pledged 65,000 common stocks of its Israeli Subsidiary, NIS 0.01 par value each. 2. The Israeli Subsidiary pledged bank deposits in an aggregate amount of $620 in connection with an office rent agreement and credit cards. 3. Innovid Inc. obtained bank guarantees in an aggregate amount of $231 in connection with its office lease agreements. Other commitments: As of December 31, 2023, the Company had accrued a total of $1,006 for future cash payments related to executive transition, of which $307 will be paid during the first quarter of 2024 and the remainder, or $699, will be paid during the second quarter of 2024. Legal contingencies: On March 4, 2022, a lawsuit was filed in the United States District Court for the Western District of Texas by the Nielsen Company (US) LLC against TV Squared, alleging infringement of US Patent No. 10.063.078. On June 1, 2022, TV Squared moved to transfer the case to the Southern District of New York, which was granted on January 18, 2023. On March 23, 2023, TV Squared moved for judgment on the pleadings that the asserted claims of the Nielsen patent are invalid because they are patent ineligible under 35 U.S.C. 101. The Court has not yet ruled on TV Squared’s motion. Meanwhile, discovery commenced while the motion has been pending. The Court conducted a hearing to construe the patent claims on January 10, 2024, but has not issued a ruling yet following that hearing. The close of fact discovery is currently set for April 8, 2024 and the date for close of expert discovery as June 28, 2024. However, the parties are in the process of submitting a request to the Court to extend those dates in light of several factors, including the lack of the Court’s ruling on the pending motions. No trial date has yet been set and the plaintiff has not specified the amount sought in the litigation. Given the uncertainty of litigation and the preliminary stage of the lawsuit, the Company is unable at this time to give an estimate of the amount or range of potential loss, if any, which might result to the Company if the outcome in such litigation was unfavorable. As of December 31, 2023, the Company did not record a loss contingency.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	12 Months Ended
	Dec. 31, 2023
Temporary Equity Disclosure [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY Stockholders’ equity Shares of the Company’s common stock have been retrospectively adjusted to reflect the exchange ratio of 1.337 established in the Transaction. Common stock Rights and privileges of the Company’s common stock are as follows: Voting Rights - The holders of the common stock are entitled to one vote for each share of common stock. Dividend Rights - Subject to preferences that may be applicable to dividends of any outstanding preferred stock, dividends may be paid on the common stock as and when declared by the Board of Directors. Such dividends will be distributed among the holders of common stock pro rata in proportion of the number of common stock held by each. Liquidation Rights - In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company’s affairs, the holders of the Company common stock are entitled to share ratably in all assets remaining after payment of the Company’s debts and other liabilities, subject to prior distribution rights of the Company preferred stock or any class or series of stock having a preference over the Company common stock, then outstanding, if any. Redemption Rights - None. Options outstanding and options available for future option grants were retroactively adjusted to give effect to the exchange ratio. Treasury stock As of December 31, 2023 there is no treasury stock issued or outstanding.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock Compensation Plans The Innovid Corp. Incentive Plan (“2021 Incentive Plan”) On November 30, 2021, the 2021 Incentive Plan was approved by the Company’s shareholders. A total number of common stock equal to 10% of the fully-diluted shares outstanding following the closing of the Transaction was initially authorized and reserved for issuance under the 2021 Incentive Plan, which amounted to 15,617,049 shares. The number of shares authorized and reserved for issuance will be subject to an annual increase for 10 years on the first day of each calendar year beginning January 1, 2022, equal to the lesser of (A) 5% of the aggregate number of shares of Company common stock outstanding on the final day of the immediately preceding calendar year and (B) such smaller number of shares as is determined by the board of directors of the Company. The maximum number of shares of common stock that may be issued pursuant to the exercise of incentive stock options granted under the 2021 Incentive Plan will be equal to 30% of the total number of issued and outstanding shares of Company common stock on a fully diluted basis as of the closing of the Transaction. If shares covered by an award are not purchased or are forfeited or expire, or otherwise terminate without delivery of any shares subject thereto, then such shares will, to the extent of any such forfeiture, termination, cash-settlement or expiration, be available for future grant under the 2021 Incentive Plan. Payment of dividend equivalent rights in cash in conjunction with any outstanding awards will not be counted against the shares available for issuance under the 2021 Incentive Plan, and shares tendered by a participant, repurchased by the Company using proceeds from the exercise of stock options or withheld by the Company in payment of the exercise price of a stock option or to satisfy any tax withholding obligation for an award will not again be available for future awards. Under the 2021 Incentive Plan, stock options and restricted stock units (“RSUs”) may be granted to officers, directors, employees, and non-employee consultants of the Company. Stock options granted have a maximum term of 10 years from the date of grant and generally vest over four years from commencement of employment or services. Any options, which are forfeited or not exercised before expiration, become available for future grants. RSUs generally vest over three Innovid Stock Plan (“Innovid Stock Plan" ) Under the Innovid Stock Plan, stock options may be granted to officers, directors, employees and non-employee consultants of the Company. Stock options granted under the Innovid Stock Plan have a maximum term of 10 years from the date of grant. The options generally vest over four years from commencement of employment or services. Stock options that are forfeited or not exercised before expiration, are available for future grants under the Innovid Stock Plan. Since the effective date of the 2021 Incentive Plan, there are no future grants of awards from the Innovid Stock Plan. Upon the effectiveness of the Transaction, all outstanding stock options under the Innovid Stock Plan, whether vested or unvested, were converted into options to purchase a number of shares of common stock of the Company. Awards previously granted under the Innovid Stock Plan will continue to be subject to the provisions thereof. Stock-based Compensation Stock-based compensation expense under all plans was as follows: Year ended December 31, 2023 2022 2021 Cost of goods sold $ 1,801 $ 1,207 $ 43 Research and development 4,544 3,690 558 Sales and marketing 6,142 4,699 486 General and administrative 7,513 4,281 2,186 Total expensed $ 20,000 $ 13,877 $ 3,273 Internal use software capitalization 1,179 1,165 — Total stock-based compensation $ 21,179 $ 15,042 $ 3,273 In connection with stock options granted to service providers and non-employee consultants, during the year ended December 31, 2023, 2022 and 2021, the Company recorded stock-based compensation expense in the amount of $304, $1,190 and $262, respectively. The majority of the expense was recorded in general and administrative. During the years ended December 31, 2023 and 2022, the Company capitalized stock-based compensation expense as part of internal software development projects and these amounts are included in property and equipment, net in our consolidated balance sheets. Stock-based compensation expense related to internal-use software projects for 2021 was immaterial. Stock Options Employees’ stock option activity under all plans was as follows: Year ended Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2022 10,686,443 $ 1.15 6.9 $ 5,923 Granted 1,432,232 $ 1.33 Forfeited (474,934) $ 1.62 Expired (278,998) $ 1.81 Exercised (1,907,402) $ 0.46 Outstanding at December 31, 2023 9,457,341 $ 1.28 6.8 $ 4,908 Exercisable options at December 31, 2023 6,658,327 $ 1.09 6.0 $ 4,423 Vested and expected to vest at December 31, 2023 9,457,341 $ 1.28 6.8 $ 4,908 The aggregate intrinsic value of exercised options in the year ended December 31, 2023 was $1,824, calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options on the respective date of exercise. Consultants’ stock option activity under the Innovid Stock Plan was as follows: Year ended Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2022 69,542 $ 0.47 4.2 $ 86 Outstanding at December 31, 2023 69,542 $ 0.47 3.2 $ 72 Exercisable options at December 31, 2023 67,869 $ 0.47 3.1 $ 70 Vested and expected to vest at December 31, 2023 69,542 $ 0.47 3.2 $ 72 The fair value of options was estimated on the grant date using a Black-Scholes option pricing model with the following weighted-average assumptions: Year ended December 31, 2023 2022 2021 Expected volatility 70.9% - 71.4% 69.0%-71.0% 65.0 % Expected dividend yield — % — % — % Expected term (in years) 6.4 4.3 6.0 Risk free interest rate 3.6%-4.9% 2.8%-3.8% 1.1% Weighted-average fair value per option $ 0.90 $ 0.95 $ 2.31 As of December 31, 2023, the Company had $2,822 of unrecognized compensation expense related to unvested stock options that are expected to be recognized over a weighted-average period of 2.2 years. Restricted Stock Units The grant date fair value of RSUs generally is determined based on the closing price of Innovid’s common stock on the date of grant. Employees’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2023 was as follows: Number of units Weighted average grant date fair value Weighted Aggregate instrisic value (in thousands) Outstanding at December 31, 2022 7,986,373 $ 5.60 $ 13,657 Granted 13,132,596 $ 1.27 Vested (5,376,805) $ 4.73 Forfeited (2,626,094) $ 3.37 Outstanding at December 31, 2023 13,116,070 $ 2.06 0.98 $ 19,674 Expected to vest at December 31, 2023 13,116,070 $ 2.06 $ 19,674 The fair value of shares vested during 2023 was $7,840. Consultants’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2023 was as follows: Number of units Weighted average grant date fair value Weighted Aggregate instrisic value (in thousands) Outstanding at December 31, 2022 130,268 $ 6.60 $ 223 Granted 107,343 $ 1.18 Vested (72,781) $ 6.60 Forfeited (10,308) 5.89 Outstanding at December 31, 2023 154,522 $ 2.88 0.85 $ 232 Expected to vest at December 31, 2023 154,522 $ 2.88 $ 232 The fair value of consultants’ RSUs vested during 2023 was $118. In the year ended December 31, 2023, a total of 45,223 RSUs were withheld for taxes by the Company in satisfaction of tax withholding obligations in respect of RSUs vested in 2023. The weighted-average grant-date fair value of RSUs generally is determined based on the number of units granted and the quoted price of Innovid’s common stock on the date of grant. As of December 31, 2023, the Company had $22,288 of unrecognized compensation expense related to unvested restricted stock units that are expected to be recognized over a weighted-average period of 1.9 years. The Innovid Corp. Employee Stock Purchase Plan (“ESPP”) On November 30, 2021, the ESPP was approved by shareholders. A total of 2,868,438 shares of common stock were initially reserved for issuance under the ESPP. The compensation committee of our board of directors is the plan administrator of the ESPP and has the authority to interpret the terms of the ESPP and determine eligibility of participants. On the first day of each calendar year beginning on January 1, 2022 and ending on (and including) January 1, 2031, the number of shares available for issuance under the ESPP will be increased by the number of shares equal to the lesser of (i) 1% of the shares outstanding on the final day of the immediately preceding calendar year, and (ii) such smaller number of shares as determined by the board of directors. If any right granted under the ESPP terminates for any reason without having been exercised, the shares subject thereto that are not purchased under such right will again be available for issuance under the ESPP. Notwithstanding the foregoing, no more than 17,383,002 shares of common stock may be issued under the ESPP. As of December 31, 2023, there were no shares issued under the ESPP .

FINANCE (INCOME) EXPENSES, NET

FINANCE (INCOME) EXPENSES, NET	12 Months Ended
	Dec. 31, 2023
Other Income and Expenses [Abstract]
FINANCE (INCOME) EXPENSES, NET	LONG-TERM DEBT On August 4, 2022, two wholly owned subsidiaries of the Company, Innovid LLC and TV Squared Inc, entered an amended and restated loan and security agreement with Silicon Valley Bank (the “2022 A&R Agreement”), to increase the revolving line of credit from $15,000 to $50,000 (the “New Revolving Credit Facility”). The 2022 A&R Agreement and the New Revolving Credit Facility were amended by a First Loan Modification Agreement dated August 2, 2023 (the “2023 Modification Agreement”). The interest for the New Revolving Credit Facility is payable monthly in arrears. The New Revolving Credit Facility bears interest at an annual rate which is the greater of (a) WSJ Prime Rate plus 0.25% or (b) 4.25%, on the aggregate outstanding balance. Additional fees include fees in an amount of 0.20% per annum of the average unused portion of the New Revolving Credit Facility to be paid quarterly in arrears. The Company paid non-refundable commitment fees of $40 and $75 at inception and each subsequent anniversary of the modification date, respectively. A modification fee of $20 was paid on the date of the 2023 Modification Agreement. The maturity date of the 2022 A&R Agreement, as amended by the 2023 Modification Agreement, is June 30, 2025. The New Revolving Credit Facility is subject to certain customary conditions precedent to the credit extension as stated in the 2022 A&R Agreement and is secured by substantially all of the Company’s assets and continues to place limitations on indebtedness, liens, distributions, investments, asset sales, transactions with affiliates and acquisitions and conduct of business, all as defined in the agreement. Prior to the 2023 Modification Agreement, the New Revolving Credit Facility bore interest at an annual rate which was the greater of (a) WSJ Prime Rate plus 0.75% or (b) 4.25%. The New Revolving Credit Facility requires the Company to comply with all covenants, primarily maintaining an adjusted quick ratio of at least 1.30 to 1.00. As defined in the 2022 A&R Agreement “adjusted quick ratio” is the ratio of (a) quick assets to (b) current liabilities minus the current portion of deferred revenue. “Quick assets” are determined as the Company’s unrestricted cash plus accounts receivable, net, and is determined according to US GAAP. The Company is also required to maintain the minimum quarterly adjusted EBITDA as defined in the 2022 A&R Agreement if the Company does not maintain the quarterly adjusted quick ratio of at least 1.50 to 1.00. Throughout the reporting period, the Company utilizes the credit line on an as needed basis. The amounts drawn and repaid range from $5,000 to $15,000. As of December 31, 2023 and December 31, 2022, the Company utilized $20,000 of the $50,000 credit line and on January 11, 2024, the amount was repaid. See Note 15, Finance Expense (Income), Net for interest expense. As of December 31, 2023, the Company was in compliance with all the covenants. The Company recognizes gains and losses from the remeasurement of its warrants liability in finance (income) expenses, net in the consolidated statements of operations. The unrealized gain from changes in the fair value of the Company warrants for the years ended December 31, 2023, 2022 and 2021 was $3,994, $14,671 and $3,819, respectively. The Company also recognized interest expenses in finance (income) expenses, net in the consolidated statements of operations. Interest expense for the years ended December 31, 2023, 2022 and 2021 was $1,451, $675 and $259, respectively. Interest income for the years ended December 31, 2023, 2022 and 2021, was $1,523, $747 and $15, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income (loss) before taxes on income was comprised as follows: Year ended December 31, 2023 2022 2021 Domestic $ (29,047) $ (7,910) $ (11,098) Foreign (490) (8,483) 863 Total loss before income taxes $ (29,537) $ (16,393) $ (10,235) Income taxes are comprised as follows: Year ended December 31, 2023 2022 2021 Current income tax provision: Domestic 1,251 1,048 (8) Foreign 1,613 2,129 1,245 Total current income tax provision: $ 2,864 $ 3,177 $ 1,237 Deferred income tax benefit: Domestic — — — Foreign (490) (1,160) — Total deferred income tax benefit $ (490) $ (1,160) $ — Total income tax provision $ 2,374 $ 2,017 $ 1,237 A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate for continuing operations was as follows: Year ended December 31, 2023 2022 2021 Total loss before income taxes $ (29,537) $ (16,393) $ (10,235) US statutory rate 21 % 21 % 21 % Income taxed computed at U.S. federal statutory rate $ (6,203) $ (3,443) $ (2,149) State and local taxes, net of federal tax benefit (1,934) (239) (359) Foreign rate differential (75) 101 (14) GILTI 298 2,892 308 Change in valuation allowance 4,869 2,305 1,493 Changes in uncertain tax positions 517 1,202 881 Tax credits (617) (474) (338) Transaction costs — 1,427 578 Remeasurement of warrant liability (839) (3,081) 160 Equity-based compensation 3,319 471 — Goodwill impairment 3,046 — — Other (7) 856 677 Total income tax provision $ 2,374 $ 2,017 $ 1,237 Effective income tax rate (8.0) % (12.3) % (12.1) % The Company’s effective tax rate for the year ended December 31, 2023 was primarily derived from the Company’s foreign earnings, the capitalization of R&D costs in the US (Section 174), provision to return adjustments, non-deductible stock based compensation, R&D tax credits, changes in uncertain tax positions and the non-deductible nature of the goodwill impairment. The Company’s effective tax rate for the year ended December 31, 2022 was primarily derived from the Company’s foreign earnings, the capitalization of R&D costs in the US (Section 174), the global intangible low tax income (GILTI) adjustment, research and development tax credits, changes in uncertain tax positions, and deductible mark-to-market expenses. Deferred income taxes are provided for the effects of temporary differences between assets and liabilities recognized for financial reporting purposes and the amounts recognized for income tax purposes. Significant components of deferred tax assets and deferred tax liabilities consisted of the following: December 31, 2023 2022 Deferred tax assets: Loss carryforwards $ 8,906 $ 11,093 Tax credits 1,765 1,271 R&D capitalization costs 18,201 8,150 Accrued expenses 1,660 1,157 Stock-based compensation 1,900 4,398 Intangibles 742 141 Fixed assets 262 147 Lease liabilities 453 700 Other 5 28 Total deferred tax assets, gross $ 33,894 $ 27,085 Valuation allowance (26,791) (18,697) Total deferred tax assets, net $ 7,103 $ 8,388 Deferred tax liabilities: Intangibles $ (5,980) $ (7,380) R&D capitalization costs (525) (653) Right-of-use asset (431) (654) Other (167) (190) Total deferred tax liabilities $ (7,103) $ (8,877) Total deferred tax asset, net $ — $ (489) A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. Due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets, the Company has a valuation allowance to offset its deferred tax assets. The Israeli corporate tax rate was 23% in 2023, 2022 and 2021. The Company’s production facilities in Israel have been granted the status of a “preferred enterprise” under the Law for the Encouragement of Capital Investments Law, 1959. According to the provisions of the Encouragement of Capital Investments Law, 1959, the Company has been granted a reduced tax rate for certain research and development activities the Company performs in Israel. A preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9%. The tax rate applicable to preferred enterprises located in other areas remains at 16%. Foreign withholding taxes and Internal Revenue Code Section 986(c) gains and losses have not been recorded on permanently reinvested earnings of certain subsidiaries aggregating $18,626 and $12,888 as of December 31, 2023 and 2022, respectively. The amount of deferred international withholding taxes and Internal Revenue Code Section 986(c) gains and losses relating to these subsidiaries is approximately $2,419 and $1,237 as of December 31, 2023 and 2022, respectively. The Company’s gross NOLs for tax return purposes were as follows: Year ended December 31, 2023 2022 US Federal NOLs $ 697 $ 11,881 State and local NOLs 14,465 10,992 Foreign NOLs 27,163 30,804 Total $ 42,325 $ 53,677 Domestic (federal and state) NOLs expire in various years starting from 2030 through an indefinite period. Foreign NOLs expire starting from 2026 (Argentina) through an indefinite period (Germany, UK). A portion of domestic (federal and state) NOLs are subject to Internal Revenue Code Section 382 or similar provisions, but the net operating loss carryforwards are expected to be fully realized. The table above reflects gross NOLs for tax return purposes which are different than financial statement NOLs, as the Company’s intention is to settle additional income taxes from tax contingencies with NOLs. The other tax credit carryforwards expire in various years beginning in 2033. The Company’s intention is to settle the tax contingencies associated with the research and development credits with the attribute. The Company’s unrecognized tax benefits were reconciled as follows: December 31, 2023 2022 2021 Gross unrecognized tax benefits as of January 1 $ 5,456 $ 3,162 $ 2,373 Increases - prior year tax positions 582 60 508 Decreases - prior year tax positions (292) (231) (410) Increases - current year tax positions 753 2,562 691 Lapse of statute of limitations (123) (97) — Gross unrecognized tax benefits as of December 31 $ 6,376 $ 5,456 $ 3,162 The balances of unrecognized tax benefits of $6,376 and $5,456 as of December 31, 2023 and 2022, respectively, represent amounts that, if recognized, would impact the effective income tax rate in future periods. The Company recognized interest and penalties related to unrecognized tax benefits in its income tax provision. The Company accrued $594 and $471 for interest and penalties as of December 31, 2023 and 2022, respectively. The Company is subject to income taxes in the US and several foreign jurisdictions including Australia, Argentina, Germany, the UK and Israel. Significant judgment is required in evaluating the Company’s tax positions and determining the Company’s provision for income taxes. During the ordinary course of business there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite the belief that the Company’s tax return positions are fully supportable. The Company adjusts these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. As of December 31, 2023, the Israeli subsidiary’s tax years through December 31, 2017 are subject to statute of limitation in Israel.

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Company operates and manages its business as one segment, which primarily focuses on the software platform for ad serving, measurement and creative. Our CEO is the chief operating decision-maker, and manages and allocates resources to the operations of the Company on an entity-wide basis. Revenue by geographic location was as follows: December 31, 2023 2022 2021 US $ 127,551 $ 114,528 $ 81,882 Canada 1,848 1,266 $ 1,039 APAC 3,363 4,249 $ 3,151 EMEA 6,411 6,030 $ 2,515 LATAM 709 1,044 $ 1,704 Total revenue $ 139,882 $ 127,117 $ 90,291 Property and equipment, net and ROU assets by geographic location was as follows: Year ended December 31, 2023 2022 Israel $ 2,154 $ 2,707 US 17,144 14,065 Rest of the World 556 460 Total $ 19,854 $ 17,232

BASIC AND DILUTED NET LOSS PER

BASIC AND DILUTED NET LOSS PER SHARE	12 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
BASIC AND DILUTED NET LOSS PER SHARE	BASIC AND DILUTED NET LOSS PER SHARE Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Year ended December 31, 2023 2022 2021 Numerator: Net loss $ (31,911) $ (18,410) $ (11,472) Accretion of preferred stock to redemption value — — (77,063) Net loss attributable to common stockholders - basic and diluted $ (31,911) $ (18,410) $ (88,535) Denominator: Weighted-average number of common shares used in computing basic and diluted net loss per share 138,577,786 130,756,484 26,745,020 Net loss per share attributable to common stockholders – basic and diluted $ (0.23) $ (0.14) $ (3.31) The following potential common shares, presented based on amounts outstanding at each period end, have been excluded from the computation of diluted net loss per share attributable to common stockholders for the periods indicated as their effect would have been anti-dilutive: Year ended December 31, 2023 2022 2021 Options outstanding 7,349,681 10,755,985 11,302,275 RSUs outstanding 5,847,905 8,116,641 — Warrants outstanding 10,222,500 10,222,500 10,222,500

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Leases On February 7, 2024, the Company amended its principal lease agreement extending the term to 2034. The lease contains a one time option to lease additional space and a one time five year renewal option. The Company expects to pay approximately $15,381 in rent over the lease term. Long-term Debt

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net loss	$ (31,911)	$ (18,410)	$ (11,472)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements and notes to the consolidated financial statements included in this Annual Report on Form 10-K are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for annual financial information and the instructions to Form 10-K and Article 10 of Regulation S-X. The accompanying consolidated financial statements include its accounts and those of its wholly-owned subsidiaries; all intercompany activity and balances have been eliminated. The consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of the consolidated balance sheets of the Company as of December 31, 2023 and 2022 and the consolidated results of operations and cash flows for the years ended December 31, 2023, 2022 and 2021.
Prior Period Reclassification	Prior Period Reclassification In the second quarter of 2022, the Company reclassified amounts recorded for depreciation, amortization and impairment expenses and presented them as a separate line item on its consolidated statements of operations. Additionally, the Company no longer presents gross profit as a subtotal on its consolidated statements of operations. All prior periods have been adjusted.
Use of Estimates	Use of Estimates
Functional currency	Functional currency
Cash and cash equivalents	Cash and cash equivalents Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired.
Short-term bank deposits	Short-term bank deposits
Restricted deposits	Restricted deposits
Trade receivable, net	Trade receivable, net
Property and equipment, net	Property and equipment, net
Software development costs	Software development costs Software development costs, which are included in property and equipment, net, consist of capitalized costs related to purchase and develop internal-use software. The Company uses such software to provide services to its customers. The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended. These costs include personnel and personnel-related employee benefits for employees directly associated with the software development and external costs of the materials or services consumed in developing or obtaining the software.
Business combinations	Business combinations The Company accounts for business combinations by applying the provisions of ASC 805, Business Combination (“ASC 805”) and allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair value of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets.
Goodwill and acquired intangible assets	Goodwill and acquired intangible assets Goodwill and acquired intangible assets recorded in the Company's financial statements result from various business combinations. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized as it is estimated to have an indefinite life. As such, goodwill is subject to an annual impairment test. The Company allocates goodwill to reporting units based on the expected benefit from the business combination. Reporting units are evaluated when changes in the Company’s operating structure occur, and if necessary, goodwill is reassigned using a relative fair value allocation approach. The Company operates in one operating segment, and this segment is the only reporting unit. ASC 350, Intangibles—Goodwill and Other (“ASC 350”) requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. During the second quarter of 2023, the Company experienced a decline in its stock price resulting in its market capitalization being less than the carrying value of its reporting unit. As a result, the Company performed a quantitative assessment of its reporting unit. The fair value was determined based on the market approach. The market approach utilizes the Company's market capitalization plus an appropriate control premium. Market capitalization is determined by multiplying the number of common stock outstanding by the market price of its common stock. The control premium is determined by utilizing publicly available data from studies for similar transactions of public companies. As a result of this assessment, the Company recorded a goodwill impairment charge of $14,503. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. The Company performed its annual goodwill impairment test on October 1, 2023, and the Company concluded that no additional goodwill impairment should be recorded. There were no impairments of goodwill during the years ended December 31, 2022 and 2021. Refer to Note 6, Goodwill and Intangible Assets for further details. Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Customer relationships and acquired technology are amortized on a straight-line basis over the estimated useful life of the assets; approximately 11 years and 6 years, respectively. Amortization of customer relationships and acquired technology is presented within depreciation, amortization and long-lived assets impairment in the consolidated statement of operations.
Impairment of long-lived assets	Impairment of long-lived assets Long-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for impairment whenever facts or circumstances either internally or externally may indicate that the carrying value of an asset may not be recoverable. If there are indications of an impairment, the Company tests for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of the asset to the carrying amount of the asset or asset group. If the asset or asset group is determined to be impaired, any excess of the carrying value of the asset or asset group over its estimated fair value is recognized as an impairment loss.
Leases	Leases Innovid's lease portfolio primarily consists of real estate properties. Short-term leases with a term of 12 months or less are not recorded on the balance sheet. Innovid does not separate lease components from non-lease components. The Company is a lessee in all its lease agreements. The Company records lease liabilities based on the present value of lease payments over the lease term. Innovid generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the Company's control. Optional renewal periods are included in the lease term when it is reasonably certain that the Company will exercise its option. Variable lease payments are primarily related to payments to lessors for taxes, maintenance, insurance, and other operating costs. The Company's lease agreements do not contain any significant residual value guarantees or restrictive covenants.
Fair value of financial instruments	Fair value of financial instruments The Company applies a fair value framework to measure its financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The Company’s financial instruments consist of cash and cash equivalents, restricted deposits, trade receivables, net, trade payables, employees and payroll accruals, accrued expenses and other current liabilities and current portions of long term debt. Their historical carrying amounts are approximate fair values due to the short-term maturities of these instruments. The Company’s investments in money market funds are classified as cash equivalents and measured at fair value. The Company measures its warrants liability at fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates.
Accrued employee benefits	Accrued employee benefits 401(k) profit sharing plan The Company has a 401(k) retirement savings plan with a safe harbor employer match with a maximum of 4% employer contribution for its eligible employees in the US. During the years ended December 31, 2023, 2022 and 2021 the Company recorded expenses for matching contributions in the amount of $1,204, $1,182 and $961, respectively. Severance pay The Israeli Severance Pay Law, 1963 (“Severance Pay Law”), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month salary for each year of employment, or a portion thereof. The Israeli Subsidiary’s liability for all of its Israeli employees is covered by the provisions of Section 14 of the Severance Pay Law (“Section 14”). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.3% of their monthly salary, continued on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company’s balance sheets.
Income taxes and tax contingencies	Income taxes and tax contingencies Income taxes are computed using a balance sheet approach reflecting both current and deferred taxes. Current and deferred taxes reflect the tax impact of all of the events included in the financial statements. The basic principles employed in the balance sheet approach are to reflect a current tax liability or asset that is recognized for the estimated taxes payable or refundable on tax returns for the current and prior years, a deferred tax liability or asset that is recognized for the estimated future tax effects attributable to temporary differences and carryforwards, the measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law of which the effects of future changes in tax laws or rates are not anticipated, and the measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. There are certain situations in which deferred taxes are not provided. Some basis differences are not temporary differences because their reversals are not expected to result in taxable or deductible amounts. The Company regularly evaluates deferred tax assets for future realization and establishes a valuation allowance to the extent that a portion is not more likely than not to be realized. The Company considers whether it is more likely than not that the deferred tax assets will be realized, including existing cumulative losses in recent years, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates. ASC 740, Income Taxes (“ASC 740”) contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest related to unrecognized tax benefits in taxes on income. On December 20, 2017, Congress passed the (“US Tax Act”). The US Tax Act requires complex computations to be performed that were not previously required by US tax law, significant judgments to be made in interpretation of the provisions of the US Tax Act, significant estimates in calculations, and the preparation and analysis of information not previously relevant or regularly produced the Act provides that a person who is a US shareholder of any controlled foreign corporation (“CFC”) is required to include its Global Intangible Low-Taxed Income (“GILTI”) in gross income for the tax year in a manner generally similar to that for Subpart F inclusions. The term “global intangible low-taxed income” is defined as the excess (if any) of the US shareholder’s net CFC tested income for that tax year, over the US shareholder’s net deemed tangible income return for that tax year. The Company’s policy is to treat GILTI as a period expense in the provision for income taxes.
Concentrations of credit risks	Concentrations of credit risks
Stock-based compensation	Stock-based compensation The Company estimates the fair value of stock-based awards on the date of grant. The fair value of stock options with service conditions is calculated using a Black-Scholes option pricing model. The grant date fair value of stock-based awards with graded vesting is recognized on a straight-line basis over the requisite service period. The determination of the fair value of the Company’s stock option awards is based on a variety of factors including Company’s common stock price, risk-free interest rate, expected volatility, expected life of awards and dividend yield. The Company has limited option exercise history and has elected to estimate the expected life of the stock option awards using the “simplified method” with the continued use of this method extended until such time that the Company has sufficient exercise history. The expected volatility of the price of such stock is based on volatility of similar companies whose stock prices are publicly available over a historical period equivalent to the option’s expected term. The dividend yield is based on the Company’s historical and future expectation of dividends payouts. Historically, the Company has not paid cash dividends. Risk-free interest rates are based on the yield from US Treasury zero-coupon bonds with a term equivalent to the expected term of the options.
Warrants	Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance. The assessment considers whether the warrants are freestanding financial instruments, meet the definition of a liability under ASC 480, and meet all of the requirements for equity classification, including whether the warrants are indexed to the Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent reporting period end date while the warrants are outstanding.
Revenue recognition and Cost of revenue	Revenue recognition The majority of the Company’s revenue is derived from digital ad solutions, where the Company provides a cloud based ad serving platform for use by advertisers, media agencies and publishers. Standard, interactive and data driven digital video ads are delivered through this ad serving platform. Advertising impressions are served via the Company’s cloud based ad serving platform to various digital publishers across CTV, mobile TV, desktop TV, display, and other channels. InnovidXP, the Company’s cloud based cross-platform TV Ad measurement solution, measures the efficiency of CTV advertising and in-flight optimizations for TV marketers. The customers get insights into the effectiveness of their TV and digital advertising. The Company also provides creative services for the design and development of interactive data-driven and dynamic ad formats by adding data, interactivity and dynamic features to standard ad units. The Company recognizes revenue when its customer obtains control of promised services in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) and determines revenue recognition through the following steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct and are separately identifiable, the Company allocates the contract consideration to all distinct performance obligations based on their relative standalone selling price (“SSP”). SSP is typically estimated based on observable transactions when these services are sold on a standalone basis. Revenue related to ad serving is recognized when impressions are delivered via the Company’s ad serving platform. The Company recognizes revenue from the display of impression-based ads in the contracted period in which the impressions are delivered. Impressions are considered delivered when an ad is displayed to users. Revenue related to Innovid XP solution is recognized over time, since the customer simultaneously receives and consumes the benefits provided by the Company’s performance. Revenue for these measurement services is recognized over the service period. Revenue related to creative projects is recognized when the Company delivers an ad unit. Creative services projects are usually delivered within a week. The Company’s accounts receivable, consist primarily of receivables related to products and services, for which the Company’s contracted performance obligations have been satisfied, the amount has been billed and the Company has an unconditional right to payment. The Company typically bills customers monthly based on actual delivery. The payment terms vary, mainly with terms of 60 days or less. The typical contract term is 12 months or less for ASC 606 purposes. Most of the Company’s contracts can be cancelled without cause. The Company has the unconditional right to payment for the services provided as of the date of the termination of the contracts. The Company applies the practical expedient in ASC 606 and does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Costs to obtain a contract Contract costs include commission programs to compensate sales employees for generating sales orders with new customers or for new services with existing customers. The Company elected to apply the practical expedient and recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. Most of the Company’s commissions are commensurate. If commissions are not eligible for the practical expedient, the Company capitalizes these commissions. Capitalized commissions are amortized over three years. As of December 31, 2023 and 2022, capitalized commissions costs were immaterial. Cost of revenue Cost of revenue consists primarily of costs to run the cloud based ad serving and measurement platform and provide creative services. These costs include hosting fees, and ad serving fees, data costs, and personnel costs including stock-based compensation, professional services costs and facility related costs. The Company allocates overhead, including rent and other facility related costs, communication costs based on headcount.
Research and development	Research and development Research and development expenses consist primarily of personnel costs, including stock-based compensation, professional services costs, hosting and facility related costs. The Company allocatea overhead including rent and other facility related costs and communication costs based on headcount. These expenses may vary from period to period as a percentage of revenue, depending primarily upon when the Company chooses to make more significant investments. Research and development costs are expensed as incurred. ASC 350-40, Internal-Use Software (“ASC 350-40”), requires the capitalization of certain costs incurred during the application development stage. Any costs incurred for upgrades and functionality enhancements of the software are also capitalized.
Sales and marketing	Sales and marketing
General and administrative	General and administrative
Net loss per common stock	Net loss per common stock Prior to the Transaction, the Company computed net loss per share using the two-class method as required for participating securities. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its preferred stock to be participating securities as the holders of the preferred stock would be entitled to dividends that would be distributed to the holders of common stock, on a pro-rata basis assuming conversion of all preferred stock into common stock. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities. Following the Transaction, basic net income (loss) for each reporting period is computed by divided net income (loss) by the weighted-average number of ordinary shares outstanding during that period. Diluted net loss per share is computed by dividing net income (loss) for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period. Diluted net loss per share is the same as basic net loss per share in periods when the effects of potentially dilutive stock of common stock are anti-dilutive.
Recently adopted accounting pronouncements and Recently issued accounting pronouncements not yet adopted by the Company	Recently adopted accounting pronouncements Credit Losses In June 2016, the Financial Accounting Standards Board, (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 requires enhanced qualitative and quantitative disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company adopted the standard on January 1, 2023 and there was no material impact on our consolidated financial statements. Leases In February 2016, the FASB issued the ASU No. 2016-02, Leases (Topic 842) . The standard outlines a comprehensive lease accounting model that supersedes the previous lease guidance and requires lessees to recognize lease liabilities and corresponding right-of-use (“ROU”) assets for all leases with lease terms greater than 12 months. The guidance also changes the definition of a lease and expands the disclosure requirements of lease arrangements. Innovid adopted the standard in the first quarter of 2022 using the modified retrospective method. Results for reporting periods beginning after December 31, 2021, have been presented in accordance with the standard, while results for prior periods have not been adjusted and continue to be reported in accordance with the Company's historical accounting. The cumulative effect of initially applying the new lease standard was recognized as an adjustment to the opening consolidated balance sheet as of January 1, 2022. The Company elected a package of practical expedients for leases that commenced prior to January 1, 2022, and did not reassess historical conclusions on: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases; and (iii) initial direct costs capitalization for any existing leases. This standard had a significant impact on our consolidated balance sheet but did not have a significant impact on the Company’s consolidated statements of operations. The most significant effects relate to the recognition ROU assets and lease liabilities on interim consolidated balance sheet for real estate and vehicle operating leases. Recently issued accounting pronouncements not yet adopted by the Company As an “emerging growth company,” the JOBS Act allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election. Income taxes In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 is intending to improve transparency of income tax disclosure by requiring income tax disclosures to contain consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. This standard affects the disclosure of income taxes not the accounting for income taxes. This standard is effective for the Company for the annual period beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2023-09. Segments In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires public entities to disclose information about their reportable segments’ significant expense and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. This standard is effective for the Company for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The Company is currently evaluating the impact of the adoption of ASU 2023-07. Other guidance that has been issued since the end of our previous reporting period is not expected to have an impact on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Schedule of Property, Plant and Equipment	Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Years Computers and peripheral equipment 3 Office furniture and equipment 5-7 Leasehold improvements The shorter of the lease term or the useful life of the asset Internal-use software 3 Property and equipment consist of the following: December 31, 2023 2022 Software development costs $ 23,999 $ 13,190 Computers and peripheral equipment 1,814 2,283 Office furniture and equipment 705 665 Leasehold improvements 2,168 2,167 Total cost 28,686 18,305 Accumulated depreciation and impairment (10,267) (3,983) Property and equipment, net $ 18,419 $ 14,322
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, 2023 Level 1 Level 2 Level 3 Assets: Money market funds $ 32,264 $ — $ — Liabilities: Warrants liability $ 307 $ — $ — December 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds $ 18,948 $ — $ — Certificates of deposit $ — $ 20,000 $ — Liabilities: Warrants liability $ 1,265 $ — $ 3,036
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The change in the fair value of the Level 3 warrant liability is summarized below: December 31, 2023 2022 Beginning of the year $ 3,036 $ 15,462 Change in fair value (2,330) (12,426) Transfer to level 1 (706) — End of the year $ — $ 3,036
Schedule of Key Inputs for Valuation of Private Placement Warrants	As of December 31, 2022, the Company’s private warrants were classified as Level 3 and were valued based on a Black-Scholes option pricing model for the private warrants were as follows: December 31, 2022 Risk-free interest rate 4.07 % Expected dividends — % Expected term (years) 3.9 Expected volatility 85 %
Schedule of Concentration of Risk, by Risk Factor	During the years ended December 31, 2023, 2022 and 2021, two of the Company’s customers accounted for more than 10% of the Company’s total revenue as presented below: Year ended December 31, 2023 2022 2021 Customer A 16 % 11 % *) Customer B *) 10 % *) * less than 10%
Schedule of Assets and Liabilities Lessee	Upon adoption, the Company recognized lease liabilities and corresponding ROU assets, adjusted for the accrued rent and remaining lease incentives received on the adoption date, as follows: January 1, 2022 ROU assets Lease liabilities Real estate $ 3,928 $ 5,482 Vehicles 50 50 Total operating leases $ 3,978 $ 5,532 The Company has the following operating right-of-use (“ROU”) assets and lease liabilities: December 31, 2023 December 31, 2022 ROU assets Lease liabilities ROU assets Lease liabilities Real estate $ 1,435 $ 1,834 $ 2,886 $ 3,801 Vehicles — — 24 21 Total operating leases $ 1,435 $ 1,834 $ 2,910 $ 3,822 December 31, 2023 December 31, 2022 Lease liabilities Lease liabilities Current lease liabilities $ 1,200 $ 2,186 Non-current lease liabilities 634 1,636 Total lease liabilities $ 1,834 $ 3,822

ACQUISITION (Tables)

ACQUISITION (Tables)	12 Months Ended
	Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed	The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date: Total value Cash and cash equivalents $ 5,318 Accounts receivables 4,186 Other current assets 1,173 Property and equipment 154 Total tangible assets 10,831 Technology 15,075 Customer relationships 16,700 Trade name 2,000 Goodwill 112,421 Total assets acquired 157,027 Less: deferred tax liabilities (1,677) Less: other assumed liabilities (3,782) Net assets acquired $ 151,568
Schedule of Unaudited Pro Forma Information	The following table presents the unaudited pro forma combined results of Innovid and TVS for the year ended December 31, 2022, and 2021 as if the acquisition of TVS had occurred on January 1, 2021: Year ended December 31, 2022 2021 Revenue $ 131,433 $ 112,147 Net loss (14,634) (37,195)

PREPAID AND OTHER CURRENT ASS_2

PREPAID AND OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid and Other Current Assets	Prepaid and other current assets consist of the following: December 31, 2023 2022 Prepaid expenses $ 4,027 $ 1,721 Deposits 127 99 Government authorities 193 204 Other current assets 1,103 616 Total $ 5,450 $ 2,640

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Years Computers and peripheral equipment 3 Office furniture and equipment 5-7 Leasehold improvements The shorter of the lease term or the useful life of the asset Internal-use software 3 Property and equipment consist of the following: December 31, 2023 2022 Software development costs $ 23,999 $ 13,190 Computers and peripheral equipment 1,814 2,283 Office furniture and equipment 705 665 Leasehold improvements 2,168 2,167 Total cost 28,686 18,305 Accumulated depreciation and impairment (10,267) (3,983) Property and equipment, net $ 18,419 $ 14,322

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Changes in the carrying amount of goodwill are as follows: Amount Balance at December 31, 2021 4,555 Acquisitions 112,421 Balance at December 31, 2022 116,976 Impairment (14,503) Balance at December 31, 2023 102,473
Schedule of Finite-Lived Intangible Assets	Intangible assets are as follows: December 31, 2023 December 31, 2022 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 9.2 16,898 (2,987) 13,911 $ 16,898 $ (1,469) $ 15,429 Acquired technology 4.2 15,275 (4,868) 10,407 15,275 (2,367) 12,907 Trade name — — — 2,000 (418) $ 1,582 Total $ 32,173 $ (7,855) $ 24,318 $ 34,173 $ (4,254) $ 29,918
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of December 31, 2023, estimated future intangible amortization expense was as follows: Amortization Expense 2024 $ 4,018 2025 4,018 2026 4,018 2027 4,018 2028 1,925 Thereafter 6,321 Total $ 24,318

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued expenses and other current liabilities consist of the following: December 31, 2023 2022 Accrued expenses $ 3,269 $ 3,544 Tax payables 2,590 1,325 Deferred revenue and advances from customers 1,506 426 Other current liabilities 61 179 Total $ 7,426 $ 5,474

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Schedule of Operating ROU Assets and Lease Liabilities	Upon adoption, the Company recognized lease liabilities and corresponding ROU assets, adjusted for the accrued rent and remaining lease incentives received on the adoption date, as follows: January 1, 2022 ROU assets Lease liabilities Real estate $ 3,928 $ 5,482 Vehicles 50 50 Total operating leases $ 3,978 $ 5,532 The Company has the following operating right-of-use (“ROU”) assets and lease liabilities: December 31, 2023 December 31, 2022 ROU assets Lease liabilities ROU assets Lease liabilities Real estate $ 1,435 $ 1,834 $ 2,886 $ 3,801 Vehicles — — 24 21 Total operating leases $ 1,435 $ 1,834 $ 2,910 $ 3,822 December 31, 2023 December 31, 2022 Lease liabilities Lease liabilities Current lease liabilities $ 1,200 $ 2,186 Non-current lease liabilities 634 1,636 Total lease liabilities $ 1,834 $ 3,822
Schedule of Lease Expenses	Lease expense components recognized in the consolidated statement of operations was as follows: Year ended December 31, 2023 2022 Operating lease cost $ 1,897 $ 1,889 Short term lease cost 993 973 Variable lease cost 103 48 Total lease cost $ 2,993 $ 2,910 Supplemental cash flow information regarding the company's operating leases was as follow: Year ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 2,161 $ 2,162 ROU assets obtained in exchange for operating lease liabilities upon lease modification $ 289 $ 610
Schedule of Operating Lease, Liability, Maturity	Future minimum commitments under the Company’s operating lease were are follows: December 31, 2023 2024 $ 1,220 2025 649 Thereafter — Total undiscounted lease payments $ 1,869 Less: imputed interest (35) Total operating lease liabilities $ 1,834
Schedule of Future Minimum Lease Commitments	Future minimum lease commitments under non-cancelable operating leases as of December 31, 2021, were as follows: Rental of premises Lease of vehicles 2022 $ 2,486 $ 8 2023 1,844 — 2024 826 — 2025 770 — Total $ 5,926 $ 8

OTHER NON-CURRENT LIABILITIES (

OTHER NON-CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Schedule of Other Noncurrent Liabilities	Other non-current liabilities consist of the following: December 31, 2023 2022 Uncertain tax position 4,122 3,865 Deferred tax liability — 489 Other non-current liabilities 3,406 2,200 Total $ 7,528 $ 6,554

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-based Compensation Expenses	Stock-based compensation expense under all plans was as follows: Year ended December 31, 2023 2022 2021 Cost of goods sold $ 1,801 $ 1,207 $ 43 Research and development 4,544 3,690 558 Sales and marketing 6,142 4,699 486 General and administrative 7,513 4,281 2,186 Total expensed $ 20,000 $ 13,877 $ 3,273 Internal use software capitalization 1,179 1,165 — Total stock-based compensation $ 21,179 $ 15,042 $ 3,273
Schedule of Share Based Payment Arrangement, Option, Activity	Employees’ stock option activity under all plans was as follows: Year ended Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2022 10,686,443 $ 1.15 6.9 $ 5,923 Granted 1,432,232 $ 1.33 Forfeited (474,934) $ 1.62 Expired (278,998) $ 1.81 Exercised (1,907,402) $ 0.46 Outstanding at December 31, 2023 9,457,341 $ 1.28 6.8 $ 4,908 Exercisable options at December 31, 2023 6,658,327 $ 1.09 6.0 $ 4,423 Vested and expected to vest at December 31, 2023 9,457,341 $ 1.28 6.8 $ 4,908 Consultants’ stock option activity under the Innovid Stock Plan was as follows: Year ended Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2022 69,542 $ 0.47 4.2 $ 86 Outstanding at December 31, 2023 69,542 $ 0.47 3.2 $ 72 Exercisable options at December 31, 2023 67,869 $ 0.47 3.1 $ 70 Vested and expected to vest at December 31, 2023 69,542 $ 0.47 3.2 $ 72
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of options was estimated on the grant date using a Black-Scholes option pricing model with the following weighted-average assumptions: Year ended December 31, 2023 2022 2021 Expected volatility 70.9% - 71.4% 69.0%-71.0% 65.0 % Expected dividend yield — % — % — % Expected term (in years) 6.4 4.3 6.0 Risk free interest rate 3.6%-4.9% 2.8%-3.8% 1.1% Weighted-average fair value per option $ 0.90 $ 0.95 $ 2.31 Employees’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2023 was as follows: Number of units Weighted average grant date fair value Weighted Aggregate instrisic value (in thousands) Outstanding at December 31, 2022 7,986,373 $ 5.60 $ 13,657 Granted 13,132,596 $ 1.27 Vested (5,376,805) $ 4.73 Forfeited (2,626,094) $ 3.37 Outstanding at December 31, 2023 13,116,070 $ 2.06 0.98 $ 19,674 Expected to vest at December 31, 2023 13,116,070 $ 2.06 $ 19,674 Consultants’ RSU activity under the 2021 Incentive Plan for the year ended December 31, 2023 was as follows: Number of units Weighted average grant date fair value Weighted Aggregate instrisic value (in thousands) Outstanding at December 31, 2022 130,268 $ 6.60 $ 223 Granted 107,343 $ 1.18 Vested (72,781) $ 6.60 Forfeited (10,308) 5.89 Outstanding at December 31, 2023 154,522 $ 2.88 0.85 $ 232 Expected to vest at December 31, 2023 154,522 $ 2.88 $ 232

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of Income (Loss) Before Income Tax, Domestic and Foreign	Income (loss) before taxes on income was comprised as follows: Year ended December 31, 2023 2022 2021 Domestic $ (29,047) $ (7,910) $ (11,098) Foreign (490) (8,483) 863 Total loss before income taxes $ (29,537) $ (16,393) $ (10,235)
Schedule of Components of Income Tax Expense (Benefit)	Income taxes are comprised as follows: Year ended December 31, 2023 2022 2021 Current income tax provision: Domestic 1,251 1,048 (8) Foreign 1,613 2,129 1,245 Total current income tax provision: $ 2,864 $ 3,177 $ 1,237 Deferred income tax benefit: Domestic — — — Foreign (490) (1,160) — Total deferred income tax benefit $ (490) $ (1,160) $ — Total income tax provision $ 2,374 $ 2,017 $ 1,237
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate for continuing operations was as follows: Year ended December 31, 2023 2022 2021 Total loss before income taxes $ (29,537) $ (16,393) $ (10,235) US statutory rate 21 % 21 % 21 % Income taxed computed at U.S. federal statutory rate $ (6,203) $ (3,443) $ (2,149) State and local taxes, net of federal tax benefit (1,934) (239) (359) Foreign rate differential (75) 101 (14) GILTI 298 2,892 308 Change in valuation allowance 4,869 2,305 1,493 Changes in uncertain tax positions 517 1,202 881 Tax credits (617) (474) (338) Transaction costs — 1,427 578 Remeasurement of warrant liability (839) (3,081) 160 Equity-based compensation 3,319 471 — Goodwill impairment 3,046 — — Other (7) 856 677 Total income tax provision $ 2,374 $ 2,017 $ 1,237 Effective income tax rate (8.0) % (12.3) % (12.1) %
Schedule of Deferred Tax Assets and Liabilities	Significant components of deferred tax assets and deferred tax liabilities consisted of the following: December 31, 2023 2022 Deferred tax assets: Loss carryforwards $ 8,906 $ 11,093 Tax credits 1,765 1,271 R&D capitalization costs 18,201 8,150 Accrued expenses 1,660 1,157 Stock-based compensation 1,900 4,398 Intangibles 742 141 Fixed assets 262 147 Lease liabilities 453 700 Other 5 28 Total deferred tax assets, gross $ 33,894 $ 27,085 Valuation allowance (26,791) (18,697) Total deferred tax assets, net $ 7,103 $ 8,388 Deferred tax liabilities: Intangibles $ (5,980) $ (7,380) R&D capitalization costs (525) (653) Right-of-use asset (431) (654) Other (167) (190) Total deferred tax liabilities $ (7,103) $ (8,877) Total deferred tax asset, net $ — $ (489)
Schedule of Operating Loss Carryforwards	The Company’s gross NOLs for tax return purposes were as follows: Year ended December 31, 2023 2022 US Federal NOLs $ 697 $ 11,881 State and local NOLs 14,465 10,992 Foreign NOLs 27,163 30,804 Total $ 42,325 $ 53,677
Schedule of Unrecognized Tax Benefits Roll Forward	The Company’s unrecognized tax benefits were reconciled as follows: December 31, 2023 2022 2021 Gross unrecognized tax benefits as of January 1 $ 5,456 $ 3,162 $ 2,373 Increases - prior year tax positions 582 60 508 Decreases - prior year tax positions (292) (231) (410) Increases - current year tax positions 753 2,562 691 Lapse of statute of limitations (123) (97) — Gross unrecognized tax benefits as of December 31 $ 6,376 $ 5,456 $ 3,162

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
Schedule of Revenue and Property and Equipment, by Geographical Areas	Revenue by geographic location was as follows: December 31, 2023 2022 2021 US $ 127,551 $ 114,528 $ 81,882 Canada 1,848 1,266 $ 1,039 APAC 3,363 4,249 $ 3,151 EMEA 6,411 6,030 $ 2,515 LATAM 709 1,044 $ 1,704 Total revenue $ 139,882 $ 127,117 $ 90,291 Property and equipment, net and ROU assets by geographic location was as follows: Year ended December 31, 2023 2022 Israel $ 2,154 $ 2,707 US 17,144 14,065 Rest of the World 556 460 Total $ 19,854 $ 17,232

BASIC AND DILUTED NET LOSS PE_2

BASIC AND DILUTED NET LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Share	Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Year ended December 31, 2023 2022 2021 Numerator: Net loss $ (31,911) $ (18,410) $ (11,472) Accretion of preferred stock to redemption value — — (77,063) Net loss attributable to common stockholders - basic and diluted $ (31,911) $ (18,410) $ (88,535) Denominator: Weighted-average number of common shares used in computing basic and diluted net loss per share 138,577,786 130,756,484 26,745,020 Net loss per share attributable to common stockholders – basic and diluted $ (0.23) $ (0.14) $ (3.31)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potential common shares, presented based on amounts outstanding at each period end, have been excluded from the computation of diluted net loss per share attributable to common stockholders for the periods indicated as their effect would have been anti-dilutive: Year ended December 31, 2023 2022 2021 Options outstanding 7,349,681 10,755,985 11,302,275 RSUs outstanding 5,847,905 8,116,641 — Warrants outstanding 10,222,500 10,222,500 10,222,500

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details) $ in Thousands		11 Months Ended
	Nov. 30, 2021 USD ($) shares	Nov. 30, 2021 USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Secondary sale amount | $		$ 68,855
Exchange ratio	1.337	1.337	1.337	1.337	1.337
Common stock | Public Warrants
Business Acquisition [Line Items]
Shares issued in transaction (in shares)	3,162,500
Common stock | Private Placement Warrants
Business Acquisition [Line Items]
Shares issued in transaction (in shares)	7,060,000
ION
Business Acquisition [Line Items]
Aggregate value | $	$ 149,252
ION | Secondary Sale
Business Acquisition [Line Items]
Shares issued in transaction (in shares)	93,787,278

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	3 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Summary of Significant Accounting Policies [Line Items]
Short-term bank deposits		$ 165,000	$ 10,000,000
Weighted average interest rate of time deposits, three months through six months (in percent)			4.10%
Impairments of long-lived assets		$ 2,253,000	$ 547,000
Number of operating segments | segment		1
Number of reporting units | segment		1
Goodwill impairment	$ 14,503,000	$ 14,503,000	0	$ 0
Acquired finite-lived intangible assets, weighted average useful life (in years)		7 years
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag		impairment loss
Certificates of deposit maturity duration maximum (in days)		180 days
Severance costs		$ 830,000	$ 946,000	$ 755,000
Payment term		60 days
Ad serving services (in percent)		73.30%	76.70%	93.60%
Measurement serving services (in percent)		23.10%	19.70%	1.60%
Creative serving services (in percent)		3.60%	3.60%	4.80%
Capitalized commission costs		$ 0	$ 0
Employee Severance
Summary of Significant Accounting Policies [Line Items]
Number of employee deposit (in percent)		8.30%
Postemployment Retirement Benefits
Summary of Significant Accounting Policies [Line Items]
Maximum annual contributions per employee, percent (in percent)		4%	4%	4%
Defined contribution plan, cost		$ 1,204,000	$ 1,182,000	$ 961,000
Customer relationships
Summary of Significant Accounting Policies [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)		11 years
Technology
Summary of Significant Accounting Policies [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)		6 years
Software development costs
Summary of Significant Accounting Policies [Line Items]
Useful life		3 years
Capitalization cost		$ 10,809,000	$ 11,143,000
Geographic Distribution, Foreign
Summary of Significant Accounting Policies [Line Items]
Weighted average interest rate (in percent)		4.40%	0.01%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property, Plant and Equipment (Details)	Dec. 31, 2023
Computers and peripheral equipment
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years
Office furniture and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	5 years
Office furniture and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	7 years
Internal-use software
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)	3 years

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Liabilities:
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Warrants liability	Warrants liability
Fair Value, Recurring | Level 1
Assets:
Money market funds	$ 32,264	$ 18,948
Certificates of deposit		0
Liabilities:
Warrants liability	307	1,265
Fair Value, Recurring | Level 2
Assets:
Money market funds	0	0
Certificates of deposit		20,000
Liabilities:
Warrants liability	0	0
Fair Value, Recurring | Level 3
Assets:
Money market funds	0	0
Certificates of deposit		0
Liabilities:
Warrants liability	$ 0	$ 3,036

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Fair Value, Recurring - Warrants Liability - Level 3 - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning of the year	$ 3,036	$ 15,462
Change in fair value	(2,330)	(12,426)
Transfers out of Level 3	(706)	0
End of the year	$ 0	$ 3,036

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Warrants Follows at Initial Measurement (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected dividends	0%	0%	0%
Expected term (years)	6 years 4 months 24 days	4 years 3 months 18 days	6 years
Expected volatility			65%
Private Placement
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk-free interest rate		4.07%
Expected dividends		0%
Expected term (years)		3 years 10 months 24 days
Expected volatility		85%

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Concentration Risk (Details) - Revenue Benchmark - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Customer A
Concentration Risk [Line Items]
Concentration risk (in percent)	16%	11%
Customer B
Concentration Risk [Line Items]
Concentration risk (in percent)		10%

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Operating Lease Liabilities and ROU Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Jan. 01, 2022
Summary of Significant Accounting Policies [Line Items]
ROU assets	$ 1,435	$ 2,910
Lease liabilities	1,834	3,822
Accounting Standards Update 2016-02
Summary of Significant Accounting Policies [Line Items]
ROU assets			$ 3,978
Lease liabilities			5,532
Real estate
Summary of Significant Accounting Policies [Line Items]
ROU assets	1,435	2,886
Lease liabilities	1,834	3,801
Real estate | Accounting Standards Update 2016-02
Summary of Significant Accounting Policies [Line Items]
ROU assets			3,928
Lease liabilities			5,482
Vehicles
Summary of Significant Accounting Policies [Line Items]
ROU assets	0	24
Lease liabilities	$ 0	$ 21
Vehicles | Accounting Standards Update 2016-02
Summary of Significant Accounting Policies [Line Items]
ROU assets			50
Lease liabilities			$ 50

ACQUISITION - Narrative (Detail

ACQUISITION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
	Feb. 28, 2022	Mar. 31, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)			7 years
Technology
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)			6 years
Customer relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)			11 years
TV Squared
Business Acquisition [Line Items]
Payments to acquire business	$ 100,000
Shares issued as consideration (in shares)	11,549,465
Share price (in dollars per share)	$ 3.80
Issued, fully vested stock option (in shares)	949,893
Weighted average fair value (in dollars per share)	$ 3.49
Cash compensation arrangement for certain employees	$ 9,700		$ 3,905
Acquisition related costs	$ 5,000
TV Squared | Forecast
Business Acquisition [Line Items]
Cash compensation arrangement for certain employees		$ 2,805
TV Squared | Technology
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	6 years
TV Squared | Customer relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	11 years
TV Squared | Trade name
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	4 years

ACQUISITION - Fair Values of th

ACQUISITION - Fair Values of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Feb. 28, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill	$ 102,473	$ 116,976		$ 4,555
TV Squared
Business Acquisition [Line Items]
Cash and cash equivalents			$ 5,318
Accounts receivables			4,186
Other current assets			1,173
Property and equipment			154
Total tangible assets			10,831
Goodwill			112,421
Total assets acquired			157,027
Less: deferred tax liabilities			(1,677)
Less: other assumed liabilities			(3,782)
Net assets acquired			151,568
TV Squared | Technology
Business Acquisition [Line Items]
Intangible assets			15,075
TV Squared | Customer relationships
Business Acquisition [Line Items]
Intangible assets			16,700
TV Squared | Trade name
Business Acquisition [Line Items]
Intangible assets			$ 2,000

ACQUISITION - Unaudited Pro For

ACQUISITION - Unaudited Pro Forma Financial Information (Details) - TV Squared - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Revenue	$ 131,433	$ 112,147
Net loss	$ (14,634)	$ (37,195)

PREPAID AND OTHER CURRENT ASS_3

PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 4,027	$ 1,721
Deposits	127	99
Government authorities	193	204
Other current assets	1,103	616
Total	$ 5,450	$ 2,640

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total cost	$ 28,686	$ 18,305
Accumulated depreciation and impairment	(10,267)	(3,983)
Property and equipment, net	18,419	14,322
Depreciation	4,850	1,626	$ 630
Software development costs
Property, Plant and Equipment [Line Items]
Total cost	23,999	13,190
Computers and peripheral equipment
Property, Plant and Equipment [Line Items]
Total cost	1,814	2,283
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Total cost	705	665
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total cost	$ 2,168	$ 2,167

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Goodwill, beginning balance		$ 116,976,000	$ 4,555,000
Acquisitions			112,421,000
Impairment	$ (14,503,000)	(14,503,000)	0	$ 0
Goodwill, ending balance		$ 102,473,000	$ 116,976,000	$ 4,555,000

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 14,503,000	$ 14,503,000	$ 0	$ 0
Acquired finite-lived intangible assets, weighted average (in years)		7 years
Amortization of intangible assets		$ 5,601,000	$ 3,850,000	$ 33,000

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 32,173	$ 34,173
Accumulated Amortization	(7,855)	(4,254)
Net Carrying Amount	$ 24,318	29,918
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Years)	9 years 2 months 12 days
Gross Carrying Amount	$ 16,898	16,898
Accumulated Amortization	(2,987)	(1,469)
Net Carrying Amount	$ 13,911	15,429
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (Years)	4 years 2 months 12 days
Gross Carrying Amount	$ 15,275	15,275
Accumulated Amortization	(4,868)	(2,367)
Net Carrying Amount	10,407	12,907
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	0	2,000
Accumulated Amortization	0	(418)
Net Carrying Amount	$ 0	$ 1,582

GOODWILL AND INTANGIBLE ASSET_5

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 4,018
2025	4,018
2026	4,018
2027	4,018
2028	1,925
Thereafter	6,321
Total	$ 24,318	$ 29,918

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued expenses	$ 3,269	$ 3,544
Tax payables	2,590	1,325
Deferred revenue and advances from customers	1,506	426
Other current liabilities	61	179
Total	$ 7,426	$ 5,474

LEASES - Schedule of Operating

LEASES - Schedule of Operating ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Operating Leases Assets And Liabilities [Line Items]
Operating lease right of use asset	$ 1,435	$ 2,910
Lease liabilities	1,834	3,822
Real estate
Operating Leases Assets And Liabilities [Line Items]
Operating lease right of use asset	1,435	2,886
Lease liabilities	1,834	3,801
Vehicles
Operating Leases Assets And Liabilities [Line Items]
Operating lease right of use asset	0	24
Lease liabilities	$ 0	$ 21

LEASES - Schedule of lease liab

LEASES - Schedule of lease liability (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Current lease liabilities	$ 1,200	$ 2,186
Non-current lease liabilities	634	1,636
Total lease liabilities	$ 1,834	$ 3,822

LEASES - Lease Costs Recognized

LEASES - Lease Costs Recognized in the Condensed Consolidated Statement of Earnings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease cost	$ 1,897	$ 1,889
Short term lease cost	993	973
Variable lease cost	103	48
Total lease cost	$ 2,993	$ 2,910

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2023
Leases [Abstract]
Operating lease, weighted average remaining lease term (in years)		1 year 7 months 6 days
Operating lease, weighted average discount rate (in percent)		5.50%
Operating lease expense	$ 2,072

LEASES - Supplementary Cash Flo

LEASES - Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 2,161	$ 2,162
ROU assets obtained in exchange for operating lease liabilities upon lease modification	$ 289	$ 610

LEASES - Schedule of Operatin_2

LEASES - Schedule of Operating Lease Liability Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2024	$ 1,220
2025	649
Thereafter	0
Total undiscounted lease payments	1,869
Less: imputed interest	(35)
Total operating lease liabilities	$ 1,834	$ 3,822

LEASES - Schedule Of Commitment

LEASES - Schedule Of Commitments Under Non-Cancelable Operating Leases (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Rental of premises
Operating Leased Assets [Line Items]
2022	$ 2,486
2023	1,844
2024	826
2025	770
Total	5,926
Lease of vehicles
Operating Leased Assets [Line Items]
2022	8
2023	0
2024	0
2025	0
Total	$ 8

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) $ in Thousands			12 Months Ended
	Aug. 04, 2023 USD ($)	Aug. 04, 2022 USD ($) subsidiary	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Aug. 03, 2022 USD ($)
Line of Credit Facility [Line Items]
Number of wholly owned subsidiaries | subsidiary		2
Maximum
Line of Credit Facility [Line Items]
Proceeds from line of credit			$ 15,000
Repayment of line of credit			15,000
Minimum
Line of Credit Facility [Line Items]
Proceeds from line of credit			5,000
Repayment of line of credit			5,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit		$ 50,000	50,000	$ 50,000	$ 15,000
Prime rate (in percent)		0.25%
Average annual fee unused portion (in percent)		0.20%
Non-refundable commitment fees	$ 75	$ 40
Line of credit quick ratio		1.30
Quarterly adjusted quick ratio		1.50
Revolving Credit Facility | 2023 Modification Agreement
Line of Credit Facility [Line Items]
Modification fee amount	$ 20
Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Annual interest rate (in percent)		4.25%
New Revolving Credit Facility | Prime Rate
Line of Credit Facility [Line Items]
Debt instrument, variable rate (in percent)				0.75%
Line of Credit | Amended Credit Agreement Maturing December 2020
Line of Credit Facility [Line Items]
Line of credit			$ 20,000	$ 20,000

OTHER NON-CURRENT LIABILITIES_2

OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Uncertain tax position	$ 4,122	$ 3,865
Deferred tax liability	0	489
Other non-current liabilities	3,406	2,200
Total	$ 7,528	$ 6,554

WARRANTS (Details)

WARRANTS (Details)	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Class of Warrant or Right [Line Items]
Fractional shares issued upon exercise (in shares) | shares	0
Innovid Corp
Class of Warrant or Right [Line Items]
Exercisable term from closing of business combination	30 days
Exercisable term, from closing of public offering (in years)	1 year
Expiration term of warrant (in years)	5 years
Public Warrants
Class of Warrant or Right [Line Items]
Outstanding warrants (in shares) | shares	3,162,500
Private Warrants
Class of Warrant or Right [Line Items]
Outstanding warrants (in shares) | shares	7,060,000
Redemption Of Warrant Price Per Share Equals Or Exceeds 18.00 | Innovid Corp
Class of Warrant or Right [Line Items]
Redemption price of warrants (in dollars per share)	$ 0.01
Redemption of warrants, reference price (in dollars per share)	$ 18
Redemption of warrants, threshold trading days	20 days
Minimum threshold written notice period for redemption of warrants	30 days
Redemption Of Warrant Price Per Share Equals Or Exceeds 10.00 | Innovid Corp
Class of Warrant or Right [Line Items]
Redemption price of warrants (in dollars per share)	$ 0.10
Redemption of warrants, threshold trading days	20 days
Minimum threshold written notice period for redemption of warrants	30 days
Number of consecutive trading days	30 days
Initial public offering per share (in dollars per share)	$ 10

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies [Line Items]
Ordinary shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Bank guarantees	$ 231
Other commitment	1,006
Other commitment, to be paid, in first quarter, year one	307
Other commitment, to be paid, in second quarter, year one	699
Israeli Subsidiary
Commitments and Contingencies [Line Items]
Bank deposits pledged	$ 620
Subsidiaries
Commitments and Contingencies [Line Items]
Shares of subsidiary pledged (in shares)	65,000
Ordinary shares, par value (in dollars per share)	$ 0.01

STOCKHOLDERS_ EQUITY (Details)

STOCKHOLDERS’ EQUITY (Details)	Dec. 31, 2023 vote shares	Dec. 31, 2022	Dec. 31, 2021	Nov. 30, 2021
Temporary Equity [Line Items]
Exchange ratio	1.337	1.337	1.337	1.337
Common stock
Temporary Equity [Line Items]
Number of votes for each share | vote	1
Treasury stock
Temporary Equity [Line Items]
Shares issued (in shares)	0
Shares outstanding (in shares)	0

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		4 years
Exercises intrinsic value		$ 1,824
Cost not yet recognized		$ 2,822
Period for cost yet to be recognized (in years)		2 years 2 months 12 days
Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total expensed		$ 304	$ 1,190	$ 262
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		1,432,232
Fair value of shares vested		$ 7,840
RSUs outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost not yet recognized		$ 22,288
Period for cost yet to be recognized (in years)		1 year 10 months 24 days
Shares withheld for tax (in shares)		45,223
RSUs outstanding | Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares vested		$ 118
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)		10 years
Maximum | RSUs outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		4 years
Minimum | RSUs outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock equal to the fully-diluted shares outstanding (in percent)	10%
Options available for future option grants (in shares)	15,617,049
Annual increase period (in years)	10 years
Aggregate number of shares of common stock outstanding (in percent)	5%
Number of issued and outstanding shares of common stock fully diluted basis (in percent)	30%
Legacy Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		4 years
Granted (in shares)		0
Legacy Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)		10 years
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options available for future option grants (in shares)	2,868,438
Shares outstanding on the final day of the immediately preceding (in percet)	1%
Shares issued under ESPP (in shares)		0
Employee Stock Purchase Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options available for future option grants (in shares)	17,383,002

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Option Activity Under Plan (Details) - Legacy Plan and 2021 Plan - Employees - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total expensed	$ 20,000	$ 13,877	$ 3,273
Internal use software capitalization	1,179	1,165	0
Total stock-based compensation	21,179	15,042	3,273
Cost of goods sold
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total expensed	1,801	1,207	43
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total expensed	4,544	3,690	558
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total expensed	6,142	4,699	486
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total expensed	$ 7,513	$ 4,281	$ 2,186

STOCK-BASED COMPENSATION - St_2

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Employees
Number of options
Outstanding, beginning balance (in shares)	10,686,443
Granted (in shares)	1,432,232
Forfeited (in shares)	(474,934)
Expired (in shares)	(278,998)
Exercised (in shares)	(1,907,402)
Outstanding, ending balance (in shares)	9,457,341	10,686,443
Exercisable options (in shares)	6,658,327
Vested and expected to vest (in shares)	9,457,341
Weighted average exercise price
Outstanding, beginning balance (in dollars per share)	$ 1.15
Granted (in dollars per share)	1.33
Forfeited (in dollars per share)	1.62
Expired (in dollars per share)	1.81
Exercised (in dollars per share)	0.46
Outstanding, ending balance (in dollars per share)	1.28	$ 1.15
Exercisable options exercise price (in dollars per share)	1.09
Vested and expected to vest (in dollars per share)	$ 1.28
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures
Outstanding option, weighted average remaining contractual term (in years)	6 years 9 months 18 days	6 years 10 months 24 days
Outstanding exercisable, weighted average remaining contractual term (in years)	6 years
Vested and expected to vest at end of period (in years)	6 years 9 months 18 days
Outstanding intrinsic value, beginning of the period	$ 5,923
Outstanding intrinsic value, end of the period	4,908	$ 5,923
Outstanding exercisable options intrinsic value	4,423
Vested and expected to vest	$ 4,908
Consultants
Number of options
Outstanding, beginning balance (in shares)	69,542
Outstanding, ending balance (in shares)	69,542	69,542
Exercisable options (in shares)	67,869
Vested and expected to vest (in shares)	69,542
Weighted average exercise price
Outstanding, beginning balance (in dollars per share)	$ 0.47
Outstanding, ending balance (in dollars per share)	0.47	$ 0.47
Exercisable options exercise price (in dollars per share)	0.47
Vested and expected to vest (in dollars per share)	$ 0.47
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures
Outstanding option, weighted average remaining contractual term (in years)	3 years 2 months 12 days	4 years 2 months 12 days
Outstanding exercisable, weighted average remaining contractual term (in years)	3 years 1 month 6 days
Vested and expected to vest at end of period (in years)	3 years 2 months 12 days
Outstanding intrinsic value, beginning of the period	$ 86
Outstanding intrinsic value, end of the period	72	$ 86
Outstanding exercisable options intrinsic value	70
Vested and expected to vest	$ 72

STOCK-BASED COMPENSATION - Fair

STOCK-BASED COMPENSATION - Fair Value of Each Option on the Date of Grant (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			65%
Expected dividend yield	0%	0%	0%
Expected term (in years)	6 years 4 months 24 days	4 years 3 months 18 days	6 years
Risk free interest rate, minimum	3.60%	2.80%
Risk free interest rate, maximum	4.90%	3.80%	1.10%
Weighted-average fair value per option (in dollars per share)	$ 0.90	$ 0.95	$ 2.31
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	70.90%	69%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	71.40%	71%

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Employees
Number of units
Outstanding, beginning balance (in shares)	7,986,373
Granted (in shares)	13,132,596
Vested (in shares)	(5,376,805)
Forfeited (in shares)	(2,626,094)
Outstanding, ending balance (in shares)	13,116,070
Expected to vest (in shares)	13,116,070
Weighted average grant date fair value
Outstanding, beginning balance (in dollars per share)	$ 5.60
Granted (in dollars per share)	1.27
Vested (in dollars per share)	4.73
Forfeited (in dollars per share)	3.37
Outstanding, ending balance (in dollars per share)	2.06
Expected to vest (in dollars per share)	$ 2.06
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (in years)	11 months 23 days
Outstanding expect to convert intrinsic value	$ 19,674	$ 13,657
Expected to vest	$ 19,674
Consultants
Number of units
Outstanding, beginning balance (in shares)	130,268
Granted (in shares)	107,343
Vested (in shares)	(72,781)
Forfeited (in shares)	(10,308)
Outstanding, ending balance (in shares)	154,522
Expected to vest (in shares)	154,522
Weighted average grant date fair value
Outstanding, beginning balance (in dollars per share)	$ 6.60
Granted (in dollars per share)	1.18
Vested (in dollars per share)	6.60
Forfeited (in dollars per share)	5.89
Outstanding, ending balance (in dollars per share)	2.88
Expected to vest (in dollars per share)	$ 2.88
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (in years)	10 months 6 days
Outstanding expect to convert intrinsic value	$ 232	$ 223
Expected to vest	$ 232

FINANCE (INCOME) EXPENSES, NET

FINANCE (INCOME) EXPENSES, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Short-Term Debt [Line Items]
Debt related interest expense	$ 1,451
Interest income	1,523	$ 747	$ 15
Paycheck Protection Program
Short-Term Debt [Line Items]
Debt related interest expense		675	259
Warrant
Short-Term Debt [Line Items]
Unrealized gain from changes in the fair value	$ 3,994	$ 14,671	$ 3,819

INCOME TAXES - Income before In

INCOME TAXES - Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Domestic	$ (29,047)	$ (7,910)	$ (11,098)
Foreign	(490)	(8,483)	863
Loss before taxes	$ (29,537)	$ (16,393)	$ (10,235)

INCOME TAXES - Income Tax Expen

INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current income tax provision:
Domestic	$ 1,251	$ 1,048	$ (8)
Foreign	1,613	2,129	1,245
Total current income tax provision:	2,864	3,177	1,237
Deferred income tax benefit:
Domestic	0	0	0
Foreign	(490)	(1,160)	0
Total deferred income tax benefit	(490)	(1,160)	0
Total income tax provision	$ 2,374	$ 2,017	$ 1,237

INCOME TAXES - Effective Income

INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Total loss before income taxes	$ (29,537)	$ (16,393)	$ (10,235)
US statutory rate	21%	21%	21%
Income taxed computed at U.S. federal statutory rate	$ (6,203)	$ (3,443)	$ (2,149)
State and local taxes, net of federal tax benefit	(1,934)	(239)	(359)
Foreign rate differential	(75)	101	(14)
GILTI	298	2,892	308
Change in valuation allowance	4,869	2,305	1,493
Changes in uncertain tax positions	517	1,202	881
Tax credits	(617)	(474)	(338)
Transaction costs	0	1,427	578
Remeasurement of warrant liability	(839)	(3,081)	160
Equity-based compensation	3,319	471	0
Goodwill impairment	3,046	0	0
Other	(7)	856	677
Total income tax provision	$ 2,374	$ 2,017	$ 1,237
Effective income tax rate	(8.00%)	(12.30%)	(12.10%)

INCOME TAXES - Deferred Tax Ass

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Loss carryforwards	$ 8,906	$ 11,093
Tax credits	1,765	1,271
R&D capitalization costs	18,201	8,150
Accrued expenses	1,660	1,157
Stock-based compensation	1,900	4,398
Intangibles	742	141
Fixed assets	262	147
Lease liabilities	453	700
Other	5	28
Total deferred tax assets, gross	33,894	27,085
Valuation allowance	(26,791)	(18,697)
Total deferred tax assets, net	7,103	8,388
Deferred tax liabilities:
Intangibles	(5,980)	(7,380)
R&D capitalization costs	(525)	(653)
Right-of-use asset	(431)	(654)
Other	(167)	(190)
Total deferred tax liabilities	(7,103)	(8,877)
Total deferred tax asset, net	$ 0	$ (489)

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Undistributed foreign subsidiaries	$ 18,626	$ 12,888
Amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries	2,419	1,237
Unrecognized tax benefits	6,376	5,456	$ 3,162	$ 2,373
Interest on income taxes accrued	$ 594	$ 471

INCOME TAXES - Operating Loss C

INCOME TAXES - Operating Loss Carryforwards (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 42,325	$ 53,677
US Federal NOLs
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	697	11,881
State and local NOLs
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	14,465	10,992
Foreign NOLs
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 27,163	$ 30,804

INCOME TAXES - Income Tax Conti

INCOME TAXES - Income Tax Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefits, beginning balance	$ 5,456	$ 3,162	$ 2,373
Increases - prior year tax positions	582	60	508
Decreases - prior year tax positions	(292)	(231)	(410)
Increases - current year tax positions	753	2,562	691
Lapse of statute of limitations	(123)	(97)	0
Gross unrecognized tax benefits, ending balance	$ 6,376	$ 5,456	$ 3,162

SEGMENT REPORTING - Narrative (

SEGMENT REPORTING - Narrative (Details)	12 Months Ended
	Dec. 31, 2023 segment
Segment Reporting [Abstract]
Number of operating segments	1

SEGMENT REPORTING - Revenue and

SEGMENT REPORTING - Revenue and Property and Equipment, by Geographical Areas (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 139,882	$ 127,117	$ 90,291
Long-lived tangible assets	19,854	17,232
US
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	127,551	114,528	81,882
Long-lived tangible assets	17,144	14,065
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,848	1,266	1,039
APAC
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	3,363	4,249	3,151
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	6,411	6,030	2,515
LATAM
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	709	1,044	$ 1,704
Israel
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	2,154	2,707
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	$ 556	$ 460

BASIC AND DILUTED NET LOSS PE_3

BASIC AND DILUTED NET LOSS PER SHARE - Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net loss		$ (31,911)	$ (18,410)	$ (11,472)
Accretion of preferred stock to redemption value		0	0	(77,063)
Net loss attributable to common stockholders, basic		(31,911)	(18,410)	(88,535)
Net loss attributable to common stockholders, diluted		$ (31,911)	$ (18,410)	$ (88,535)
Denominator:
Weighted-average number of common shares used in computing basic net loss per share (in shares)	[1]	138,577,786	130,756,484	26,745,020
Weighted-average number of common shares used in computing diluted net loss per share (in shares)	[1]	138,577,786	130,756,484	26,745,020
Net loss per share attributable to common stockholders – basic (in dollars per share)	[1]	$ (0.23)	$ (0.14)	$ (3.31)
Net loss per share attributable to common stockholders – diluted (in dollars per share)	[1]	$ (0.23)	$ (0.14)	$ (3.31)
[1] (2) 2021 results have been adjusted to reflect the exchange of Innovid Inc’s common stock for Innovid Corp’s common stock at an exchange ratio of approximately 1.337 because of the Transaction.

BASIC AND DILUTED NET LOSS PE_4

BASIC AND DILUTED NET LOSS PER SHARE - Securities Excluded from Computation of Earnings Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Options outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	7,349,681	10,755,985	11,302,275
RSUs outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	5,847,905	8,116,641	0
Warrants outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	10,222,500	10,222,500	10,222,500

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	Feb. 07, 2024	Jan. 11, 2024	Dec. 31, 2023	Dec. 31, 2022	Aug. 04, 2022	Aug. 03, 2022
Revolving Credit Facility
Subsequent Event [Line Items]
Line of credit			$ 50,000	$ 50,000	$ 50,000	$ 15,000
Subsequent Event
Subsequent Event [Line Items]
Renewal term (in years)	5 years
Lease term payment	$ 15,381
Subsequent Event | Revolving Credit Facility
Subsequent Event [Line Items]
Line of credit		$ 20,000