Company: TALK
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000950170-25-038107
Chunk: 137

Company: Talkspace, Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 137
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Financial income, net includes the impact from (i) interest earned on cash equivalents invested in money market accounts, U.S. treasury securities and commercial paper, and investments in marketable securities, (ii) non-cash changes in the fair value of our warrant liabilities, and (iii) other financial expenses in connection with bank charges.

47

Taxes on income 

Taxes on income consists primarily of foreign income taxes related to income generated by our subsidiary organized under the laws of Israel. Taxes on income were immaterial for the years ended December 31, 2024, 2023 and 2022.

We have a full valuation allowance for our U.S. deferred tax assets, including federal and state NOLs. We expect to maintain this valuation allowance until it becomes more likely than not that the benefit of our federal and state deferred tax assets will be realized through expected future taxable income in the United States.

Results of Operations 

The following table presents the results of operations for the years ended December 31, 2024 and 2023 and the dollar and percentage change between the respective years:

    Year EndedDecember 31,

    Variance

    2024

    2023

    $

    %

    (in thousands, except percentages)

       Payor revenue
     
    $
    124,339

    $
    80,823

    $
    43,516

    53.8

       DTE revenue

    38,466

    $
    33,614

    4,852

    14.4

       Consumer revenue

    24,788

    35,608

    (10,820
    )

    (30.4
    )

    Total revenue

    187,593

    150,045

    37,548

    25.0

    Cost of revenues

    101,757

    75,665

    26,092

    34.5

    Gross profit

    85,836

    74,380

    11,456

    15.4

    Operating expenses:

       Research and development

    10,510

    17,571

    (7,061
    )

    (40.2
    )

       Clinical operations, net

    6,542

    6,159

    383