
	September 30, 2025		December 31, 2024
	(As Restated)
Prepaid expenses	$	7,176	$	5,234
Indemnification escrow holdback	3,650		3,650
Other receivables	520		854
Other current assets	1,825		760
Prepaid expenses and other current assets	$	13,171	$	10,498

During the period ended September 30, 2025, the Company incurred approximately $1.5 million in costs related to debt refinancing that was recorded as a prepaid expense and included in other current assets as of September 30, 2025. As a result of the November 6, 2025 announcement to repurchase the Company’s senior secured debt and half of its convertible debt, these costs will be expensed during the quarter ended December 31, 2025.

In October 2025, the Company received the indemnification escrow holdback in full. Refer to Note 4, Discontinued Operations, Business Combinations, and Divestiture, for additional information.


	September 30, 2025		December 31, 2024
	(As Restated)
Fair value of earnout receivable	$	454	$	7,667
Investments	2,990		2,990
Deferred tax assets	865		1,773
Operating lease right-of-use assets	1,924		840
Other	1,506		2,315
Other assets	$	7,739	$	15,585


	September 30, 2025		December 31, 2024
	(As Restated)
Accrued compensation	$	4,213	$	4,504
Taxes payable	5,001		5,645
Current portion of operating lease liabilities	697		698
Royalties payable	7,747		3,199
Accrued trade payables	12,920		14,882
Accrued expenses and other current liabilities	$	30,578	$	28,928

Contract liabilities consist of deferred revenue. Deferred revenue represents billings under non-cancelable contracts before the related product or service is transferred to the customer. The portion of deferred revenue that is anticipated to be recognized as revenue during the succeeding twelve-month period is recorded as deferred revenue within the Company's condensed consolidated balance sheets. Deferred revenue was comprised of the following:


	Deferred Revenue
Balance as of December 31, 2024	$	12,056
Less: revenue recognized	(6,012)
Additions to deferred revenue	7,419
Balance as of March 31, 2025	13,463
Less: revenue recognized	(7,889)
Additions to deferred revenue	6,771
Balance as of June 30, 2025	12,345
Less: revenue recognized	(8,256)
Additions to deferred revenue	8,334
Balance as of September 30, 2025	$	12,423

The Company serves two customer groups: (1) Commercial Enterprise, which today consists of customers in the commercial sector, including media and entertainment customers, representation customers and Veritone Hire solutions customers (inclusive of Broadbean customers); and (2) Public Sector, which consists of customers in the public sector industries, including state, local and federal government, legal, and compliance customers.

Software Products & Services consists of revenue generated from the Company’s aiWARE platform, including its Veritone Data Refinery (“VDR”) product, and Veritone Hire talent acquisition solutions, any related support and maintenance services, and any related professional services associated with the deployment and/or implementation of such solutions.


	Three Months Ended
	September 30, 2025						September 30, 2024
	Commercial Enterprise		Public Sector		Total		Commercial Enterprise		Public Sector		Total
	(As Restated)		(As Restated)		(As Restated)
Software Products & Services	$	18,437	$	1,982	$	20,419	$	13,098	$	1,596	$	14,694

Managed Services:
Representation Services	1,426		—		1,426		2,730		—		2,730
Licensing	4,787		—		4,787		4,569		—		4,569
Total Managed Services	6,213		—		6,213		7,299		—		7,299

Total revenue	$	24,650	$	1,982	$	26,632	$	20,397	$	1,596	$	21,993


	Nine Months Ended
	September 30, 2025						September 30, 2024
	Commercial Enterprise		Public Sector		Total		Commercial Enterprise		Public Sector		Total
	(As Restated)		(As Restated)		(As Restated)
Software Products & Services	$	46,226	$	5,451	$	51,677	$	41,310	$	4,236	$	45,546

Managed Services:
Representation Services	5,601		—		5,601		9,763		—		9,763
Licensing	15,010		—		15,010		14,895		—		14,895
Total Managed Services	20,611		—		20,611		24,658		—		24,658

Total revenue	$	66,837	$	5,451	$	72,288	$	65,968	$	4,236	$	70,204

The $8,453 of other expense, net for the three months ended September 30, 2025 primarily consisted of a $7,997 loss on revaluation of the Veritone One earnout receivable and a $358 foreign currency and other impact. The $393 of other income, net for the three months ended September 30, 2024 consisted of a $393 foreign currency impact.

The $7,554 of other income, net for the nine months ended September 30, 2025 primarily consisted of a $7,213 loss on revaluation of the Veritone One earnout receivable. The $133 of other expense, net for the nine months ended September 30, 2024 consisted of a $172 loss on sale of GridBeyond, partially offset by a $37 foreign currency impact.

In accordance with ASC 740-270, Income Taxes, the provision or benefit from income taxes for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates the estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company records a cumulative adjustment. A separate estimated annual effective tax rate is applied for jurisdictions where an entity anticipates an ordinary loss or has an ordinary loss for the year to date for which no tax benefit can be recognized.

The Company’s effective tax rate was a benefit of 1.1% and 10.3% for the three months ended September 30, 2025 and 2024, respectively, and an expense of 0.4% and a benefit of 4.9% for the nine months ended September 30, 2025 and 2024, respectively. The difference between the effective tax rate and the U.S. federal statutory rate of 21% is primarily due to a valuation allowance established on the Company’s domestic federal and state net deferred tax assets, as well as the impact of foreign operations subject to tax in foreign jurisdictions. The change in the effective tax rates for the three and nine months ended September 30, 2025 as compared to the comparable prior year period is primarily due to the impact of taxes on foreign operations and valuation allowances against domestic net deferred tax assets.

As of September 30, 2025 and December 31, 2024, the Company had deferred tax assets of $865 and $1,773, respectively, and deferred tax liabilities of $4,897 and $6,387, respectively, which are included in other assets and other non-current liabilities, respectively, within the Company’s condensed consolidated balance sheets. As of September 30, 2025, the Company continues to provide a valuation allowance against deferred tax assets that are not expected to be realizable. The Company continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If the Company’s assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which the determination is made.

The Company is subject to taxation in the United States, Israel, the United Kingdom, France, and Australia. The United States, Israel, and the United Kingdom comprise the majority of the Company’s operations. In general, the U.S. federal statute of limitations is three years. However, the Internal Revenue Service may still adjust a tax loss or credit carryover in the year the tax loss or credit carryover is utilized. As such, the Company’s U.S. federal tax returns and state tax returns are open for examination since inception. The Israeli statute of limitations period is generally four years commencing at the end of the year in which the return was filed. The Company’s subsidiary, PandoLogic, Inc., concluded their U.S. Federal audit for the 2022 tax year with no adjustment. The Company is not currently under examination from income tax authorities in the jurisdictions in which the Company does business.