Company: TALK
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0000950170-25-038107
Chunk: 101

Company: Talkspace, Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1B
Chunk 101
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 statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the periods presented.Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the consolidated financial statements. The Company’s significant estimates and assumptions used in these consolidated financial statements include, but are not limited to, the recognition of revenue, stock-based compensation awards and internal-use software costs. The Company bases its estimates on historical factors, current circumstances and the experience and judgment of management. The Company evaluates its assumptions on an ongoing basis. The Company’s management believes that the estimates, judgments, and assumptions used are reasonable based on information available at the time they are made. Estimates, by their nature, are based on judgment and available information, therefore, actual results could be materially different from these estimates.Consolidation The Company consolidates all subsidiaries in which it has a controlling financial interest, as well as any VIEs where the Company is deemed to be the primary beneficiary. Intercompany transactions and balances have been eliminated in the preparation of the consolidated financial statements.Operating Segments Talkspace provides virtual behavioral healthcare services through its online platform for one-on-one therapy delivered via messaging, audio and video. The Company's the chief operating decision maker (“CODM”) is the Chief  Executive Officer, who manages the Company by reviewing consolidated results. Accordingly, the Company operates as one operating and reportable segment.The CODM uses the Company’s consolidated net income (loss) to assess the financial performance of the Company and allocate resources. Since the Company operates in one operating segment, financial information, including consolidated net income (loss) information evaluated by the CODM can be found in the consolidated statements of income. Other financial information regarding the Company's operating segment is presented elsewhere in the consolidated financial statements.

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The Company's assets are managed on a consolidated basis. For total asset information please refer to the consolidated balance sheets included within the consolidated financial statements. Most of the Company's long-lived tangible assets, as well as the Company's operating lease right-of-use asset are located in the United States with an immaterial portion located in Israel.For the years ended December 31, 2024, 2023 and 2022, all of the Company’s revenues were generated from customers located in the United States. For the types of services from which the reportable segment derives its revenues please refer to