Veritone Inc (VERI) Options

Now thinking it is
a possibility that Esousa bought Chad's shares, and if this deal closes, then Chad gets his shares back. If it does not close because someone were to come forward with a better offer, then Esousa keeps Chad's shares. Speculation, but think it is reasonable to think there was some enticement or incentive for Esousa to participate in this.

Yeah, and why announce a 35M ATM offering, which tanked the price, and announce that BEFORE pursuing this registered direct offering.

And Chad's sale right in the middle of all this. Looks like they were pursuing the exact opposite of a road show.

And still say, Chad has a fiduciary responsibility as a Board member. So if the sale was purely for selfish reasons, then the timing was absolutely contrary to responsibility as a Board member. But if the sale was somehow strategic to the company, then understandable.

Seems to me that their marketing plans at the beginning of the year were all about going to market with AWS. Working with top AWS partners, co-marketing webinars, etc.

Any co-marketing with AWS and/or AWS partners has been non-existent to date, with the exception that there was a public sector webinar with an AWS rep a couple months ago. And even in that webinar, AWS wasn't really pounding the table for Veritone.

But they have this SCA with AWS, and launching consulting business based on AWS. So it could be that the delays are on AWS end.

And the biggest surprising delay with AWS is their postponed plans for the new AI infused Alexa, which was expected in August or September, but now pushed into 2025.

I'm sure that caused a huge missed opportunity for increased sales of Alexa devices this Christmas.

But another coincidence that Veritone was expecting things to ramp in the second half of 2024, and at the same time new Alexa was expected to launch in second half of 2024.

Yes, wild speculation to assume aiWARE has anything to do with Alexa. But Alexa has to do with voice, and also Alexa needs to combine domain specific data with LLM's in order to provide relevant contextual information. So it is not entirely out of the question that AWS could be interested in aiWARE capabilities as part of their Alexa plans.

And one of the things you could probably do with Alexa in the future is apply for, inquire about and even interview for jobs. Could be a possible Veritone Hire integration with Alexa to be able to match job openings with candidate experience.

But agree, all speculation until something tangible appears.

Still have no idea why no road or pr shows to beef of price. Makes no sense.

We shall see. I guess if both sold at same time the stock would have surely tanked.

You are right. Chad exceeds the 9.99% even after the 500K sale. But if Chad did not sell his 500K shares, he would be over the 9.99% on a shared voting and dispositive basis, assuming the Esousa deal goes through. With the Esousa deal, he would now be under the 9.99%.

But what about RS. Why does he stay above. Or is there a pending transaction involving some RS shares.

Well at this point they have nothing left except to hang their hat on Aiware. It's all or nothing and up to now has been nothing. Would love to know why marketing is such a revolving door.

I think the overall market for a commercial grade enterprise AI platform is still up for grabs.


Even as Veritone has struggled, revenues declining, balance sheet deteriorating, they still hang their hat on aiWARE. By now, they could have thrown in the towel on aiWARE, and just integrated all their applications onto another AI platform. But appears they continue to be all in with aiWARE.

One would think that a major player would have invested in Veritone by now. Instead, Veritone dealing with the likes of Esousa.

So even though no apparent interest in aiWARE, Veritone still hanging their hat on aiWARE and even willing to go through major dilution to stay alive and keep with the aiWARE plan. And if it is all incompetence, then Esousa must be incompetent as well.

I think there may be interest in aiWARE and Veritone, but looks to me like Veritone wants to remain autonomous. For example, AWS may be interested in aiWARE, but not willing to do a strategic transaction with Veritone unless AWS gets full control. Probably none of these companies like Palantir or C3 would be interested in dealing with Veritone, unless Veritone gets absorbed into their own company. Looks to me like Veritone not willing to do this.

So it is possible that this deal with Esousa, if nothing else, keeps Veritone alive and on a standalone basis for a while. And maybe it keeps them alive long enough for a big player to finally step in and do a deal that keeps Veritone intact. Who knows, but I think the next week or two is going to be interesting.

What I find strange too is both sales/ purchases were a odd # of shares.

Yes what a coincidence. And may be Chad sale puts him under the 9.99%.

Esousa could sell shares, and then exercise warrants in order stay under the 9.99% shares outstanding.

I speculated earlier that Esousa may have bought the 500K shares from Chad. But now don't think so because it would put them over 9.99%.

But interesting to me that Chad's sale at 2.51 aligned so close to the share price concerning the Esousa deal.

Correct last post the 30 mil in lost inorganic revenues should be on a net basis.

From a revenue standpoint of 100 mil in revenues at least 70 mil from inorganic sources. And BTW they probably purchased 100 mil in revenues so not only they didn't grow their inorganic revenues but probably lost 30 mil of them. So have 30 mil in organic revenues. Over 10 years very impressive for Ai leader. And took at least 600 mil from investors and debt to achieve that 30 mil. Those are basicly the facts. For me a mismanaged co if tech is good if not than a tech issue.

Right now there are thousands of companies that do what Veri does all making hundreds of millions of dollars from existing customers. None seem to need or want Aiware for their tech or otherwise. To me Veri has missed the Ai opportunities that have presented themselves over passed couple of years. They say Aiware unmatched and very well may be but if nobody wants or needs it what's the point. This company had tunnel vision for 10 years and was mismanaged for 10 years. Unless something major develops in next 6 months which to me doesn't look like Veri will be on way to pink sheets. Every other Ai company gets major Fed contracts except for Veri. I know they are coming but shouldn't take years or delays or whatever their excuses are to sign. They have major employee turnover especially in marketing so their has to be major internal problems either with management or technology or both. Just don't see them being a factor. All competitors are their lunch on initiatives including voice etc and even Aiware. Ideas good but execution pathetic. JMO

So in order for Esousa to exercise all 3 mil + warrants that they already paid for Veri would need 80 mil outstanding shares. So another 30 mil issued shares above 50 mil already outstanding. So in the future more dilution. So question is why would Esousa go for that. Either Veri BSed them which is their status quo or even if stock was to rise wouldn't matter as far as warrants goes cause those are based on further dilution. Or paid $5 a share for shares already issued.

My guess is if the deal closed today, we would see an 8-k filed soon. If not, Monday could be interesting.

good question

Like you say, Veritone did little to nothing as far as any road show to support the stock. Even announced the 35M offering which tanked the stock. RS at Needham conferece even said they need to raise cash, and will do it again if necessary. Chad's sale tanked the stock initially, and then they do this offering with Esousa. So almost looks like they wanted the stock low.

I don't know. Maybe Veri has some sort of opportunity through Esousa?

Another thought I had is that it could have been Esousa that bought the shares from Chad. Maybe it was enticement for Esousa to execute the larger deal. So this deal gets the ball rolling, but has not closed yet. Could close between today and 5 days from today. So maybe someone comes with a better offer? If so, then Esousa still has the 500k shares from Chad.

But just generally speaking, and based on what RS said at Needham, looks like they want to meet funding requirements for certain opportunities ahead. So maybe in RS mind, the low stock price and resulting dilution is worth it considering the opportunity. I don't know.

And why is the stock still staying considerably above the 2.53 deal price.

I guess expect stock to rise so getting in on the cheap. Guess like any warrant, you expect stock to rise.But more importantly what was Veri incentive to sell so cheaply.

Agree

But since Esousa is paying upfront for the warrants, and are restricted from exercising them all, what is the advantage of this investment from Esousa's perspective.

And only way to exercise those warrants and not go over 9.9% is for very to issue more shares. So even more dilution coming.

U are right but Esousa paid for 8 mil shs up front so in theory own 8 mil shs even though did not exercise warrants of 3 mil +

Again good luck to all.

It's my understanding that Esousa is not allowed to exceed 9.9% of the company. So they can only exercise the pre-funded warrants only to the extent that they remain under the 9.9%


Also see that assuming the transaction closes today, Veritone cannot issue more stock for 75 days, except that upon the 60th day, Veritone can go to the ATM, but cannot use ATM unless the stock is at least 3 bucks a share. But after the 75 day period, these restrictions do not apply.

So my question is why would u sell 16.67% of co for 20 mil without a road show if didn't need the funds immediately. Only thing comes to mind is incompetence or things are so bad u get the 20 mil before stock tanks for lack of revenues, partnerships or technology. To me it's quite apparent with revolving employee door, revenue declines and lack of major partnerships that Veri is done and holding on for dear life.

So Esousas 8 mil shares represents 16.67% of outstanding shares of Veri. If not for shenanigans with prefunded warrants would control Veri. And got that all for a measley 20 mil which represents a mv of 120 mil. Not bad for Ai leader. Banta and even Steelberg ownership interests are now irrelevant.

They also had a big announcement with Iron Dome. Hopefully Veritone releases news about the partnership with an LLM developer like they mentioned last Earnings call.

Esousa filed a 13G concerning company called Nukkleus Inc. Ticker NUKK. Acquired 4M shares on 12/18. Own 9.99% of company.

https://www.sec.gov/Archives/edgar/data/1787518/000110465924131196/xslSCHEDULE_13G_X01/primary_doc.xml

Check out what happened to the stock around that time.

Couldn't get major player. Chad sells at 2.5 a share and Eousa buys at 2.5 a share. See a scam in the making.

He also said he could not be more excited about what is to come.


I guess Esousa Group buying shares at 2.5 is exciting. Wonder if RS still says grossly undervalued.

He also said would need nominal amount of money sometime during the year. Not on the first day of the year. 

Yeah, it may not be an investment

by a Nvidia, Deloitte, or Amazon. But not many companies out there can say they have an investment from Esousa Group. lol

As RS said,

he is being mindful of dilution. lol

Looks like in Nov and Dec sold another 1.7 mil shares probably for pennies on top of the 8 mil in 2025. No PR campaign no nothing. Disgusting

In early stages of announcing all these great and exciting partnerships. That was 2 months ago. Nada. Yes Deet another lie.

Couldn't even come up with a marketing campaign to lift stock price. We'll now they can take the rest of 2025 off and reflect on their accomplishments.

I'm out of here. Good luck to all.

You still bias. No partnership deal. Stock offering at 33% discount. Great piece of paper Zemetra and C suite. Guarantee in 6 months will be doing another stock offering at 1.00 a share. And how does 20 mil alleviate any debt.

You are 100% correct and I am wrong. Was not sold to the Trust. I got footnotes mixed up. Any way seems like a very odd transaction. Apparently wasn't done for cash since took a promissory note. Odd # of shares sold and why do it at all at these low prices. Would on the surface appear to be someone he knows since they got a great deal. No cash outlay and already up a $1. Still from my perspective somehow tax related since done at year end.

Where do you see that
Chad's sale involved his kids or a trust?

All possible but don't understand logic with Chad. He sold to a related party his kids indirectly thru a trust.So what that has to do with Veri and their so called strategic plan. Hopefully get answers soon but have been saying that for 10 years.

Obviously I'm biased but
I think 2025 is shaping up to be big for Veritone.

There was no reason for the stock to go up on Friday, and with high volume. Yes playing catch up with other AI stocks, but coming on the heels of Chad selling at 2.51. No PRs since Chad sold. Think there is more to this.

Small apparently struggling company spent the wad on Broadbean at a time when hiring was heading south. You would think it would be all hands on deck with respect to getting Veritone Hire off the ground. But to them, just another vertical. Go on to launch a consulting business. Now coming out with several healthcare offerings. Launched Data Refinery, and also running M&E content licensing business as well as public sector. A lot on their plate for one small financially struggling company. Think partners are strategically involved.

Think this has all been strategically planned since 2022 when Chad stepped down. Been working with strategic partners for the last couple years on the commercialization of aiWARE, getting it to enterprise grade. Have not been growing revenues on aiWARE because it has been in development, therefore all trial based with customers. Yeah, they sell various applications like Redact. But applications like Redact are a means to get aiWARE in the hands of customers while development of aiWARE is ongoing. Think they mean just what they say. In the future, AWS and Veritone will announce scalable cloud architecture for AI/ML. And that's just with AWS. Might also be bringing to market aiWARE instances with other cloud providers. For example, NCAA uses Google Cloud. Think it all comes to head in 2025. And actually think sooner rather than later since they are currently looking to improve balance sheet in near term. Think Chad's sale is part of those efforts. Think the enterprise grade aiWARE is getting ready to be launched, but have to hash out the ownership structure of Veritone before going forward. Think it is obviously strategic capital that they are pursuing vs. going to the public for capital. Otherwise they would be aggressively courting the public market with hype. They have been indifferent about the stock price, and actually look like they have been purposefully avoiding hype to keep the stock low while discussions/negotiations ongoing. But think things come to a head soon. Just my speculation.

Interesting volume up to 3 mil and 6 mil for last 2 days. We will see if any follow thru next week and beginning of year. Don't think get any significant PRs until EC
 Hopefully I'm wrong

Maybe because for the past year Veri didn't participate in Ai frenzy and has a year of catching up to do.

AI stocks in the red today.

Wonder why VERI didn't correct

Well all Ai stocks were up nicely yesterday so don't think it was specific to Veri

Also how do they currently have the manpower to adequately launch this consulting business, data refinery, etc.
Again, suggest strategic discussions going on.

Well IMO, if we are to rely on the info and narrative provided by Veritone,
back in 2022 when RS took over, they said they were going to focus and double down on ecosystem, and anything outside of ecosystem would
be pursued via partnerships.

So now that they are positioning themselves to start pushing healthcare solutions, suggests to me that there may be some type of merger or strategic transaction involving one or more of the strategic partners that might have been building out aiWARE in verticals outside Veritone's normal ecosystem of verticals.

Also makes me think that Chad's recent sale was strategic. Combined, Ryan and Chad own about 20% of the company, so reasonable to think that if there are strategic discussions going on with respect to a tie-up, then they may have to tweak the ownership percentages to make a deal work for all parties involved. Speculation, I know, but very strange to see the stock fly 50% less than 10 days after Chad sold 500K shares at 2.51 for a promissory note in a private transaction.

This is completely new. Don't understand why never marketed this before and all the different problems it' solves. Very odd
 
 
 
 

Looks like getting more into healthcare
but guess it's better to keep it a secret.

Veritone, can help your organization:

Revolutionize patient care with AI-powered predictive diagnostics.
Enhance accuracy and speed in medical imaging with AI analysis.
Optimize healthcare staffing with AI-powered scheduling.
Optimize clinical trials for faster, more efficient results.
Accelerate drug discovery and development through AI innovation.
Personalize patient treatments with AI-driven precision medicine.
https://unlock.veritone.com/ai-assessment-healthcare

They have every opportunity to move the stock much higher
but instead stay silent. RS has not cared about the stock price since he took over.