Company: AMWL
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000950170-25-019024
Chunk: 26

Company: American Well Corp
Filing Date: 2025-02-12
Form: 10-K
Item: Item 16
Chunk 26
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 initial investment for a 49% interest in CCAW, JV LLC. The agreement also requires aggregate total capital contributions by the Company up to an additional $11,800 in two phases, which is yet to be defined. During the years ended December 31, 2024, 2023  and 2022 the Company made a capital contribution of $3,430, $3,920 and $1,960, respectively, related to a portion of the phase one capital commitment. For the years ended December 31, 2024, 2023 and 2022, the Company recognized a loss of $3,110, $2,590 and $2,278 as its proportionate share of the joint ventures results of operations, respectively. Accordingly, the carrying value of the equity method investment as of December 31, 2024 and 2023 was $1,500 and $1,180, respectively.Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statement of operations and comprehensive loss. For the years ended December 31, 2024, 2023 and 2022, the Company’s advertising expenses were $3,935, $5,508 and $6,607, respectively. Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses include payroll, employee benefits and other expenses associated with product development. Internal-Use Software The Company evaluates development costs incurred to develop functionality in connection with its internal-use software for capitalization. Qualifying costs incurred to develop internal-use software are capitalized when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the completion of the project and (iii) it is probable that the project will be completed and performed as intended. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Capitalized internal-use software costs are included in intangible assets on the consolidated balance sheet for the years ended December 31, 2024 and 2023. There were no impairment charges related to capitalized software development costs during the years ended December 31, 2024, 2023 and 2022. Capitalized software development costs are amortized using the straight-line method over an estimated useful life of three to five years.Stock-Based Compensation The Company measures all stock options and other stock-based awards granted to employees and directors based on the fair value on the date of the grant