Company: AMWL
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000950170-25-019024
Chunk: 232

Company: American Well Corp
Filing Date: 2025-02-12
Form: 10-K
Item: Item 7
Chunk 232
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On January 8, 2025, we, Aligned Telehealth, LLC ("Aligned"), one of our wholly owned subsidiaries, and Avel eCare, LLC (the “Buyer”) entered into an asset purchase agreement (the “Agreement”) relating to the sale to the Buyer of all property and assets owned, leased or licensed by the Seller that are primarily used or held for use in connection with our business of providing telepsychiatry services to hospitals and correctional programs (the “Business”), subject to certain specified exclusions such as cash. 

In connection with such purchase and sale, the Buyer assumed specified contracts and the related accounts receivable and all accounts payable and accrued expenses of the Business. The purchase price is comprised of (i) an upfront cash payment of $20.7 million, which is equal to 1.1x the Business’ trailing twelve-month revenue, excluding on-site revenue attributable to certain of the Business’ contracts, subject to customary adjustments and (ii) an additional cash payment (the “Additional Payment”) equal to 0.4x the Buyer and its affiliates’ aggregate revenues arising from the provision of the Business to current customers and potential customers in the sales pipeline during the twelve-month period immediately following the closing, excluding revenues arising from the provision of on-site psychiatric services to certain of the Business’ contracts and other specified revenues, which Additional Payment is payable within ten days following the final determination of the Additional Payment amount. 

The Company divested our APC business as it was determined the offering no longer fit our goals around profitability and growth.  Streamlining our service offerings will enable us to focus our resources on the Converge platform, strategic customers, and our path to profitability.

57

Key Metrics and Factors Affecting Our Performance 

We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions: 

Health Systems: 

    Years Ended December 31,

    2024

    2023

    2022

    Average Number of Health System Clients

    107

    129

    153

    Total Health System Subscription Revenue
     
    $
    52.0 million

    $
    53.5 million

    $
    61.2 million

    Average Annual Contract Value
     
    $
    488 thousand

    $
    415 thousand

    $
    401 thousand

Health System: A health system is an enterprise platform client whose