Company: AMWL
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000950170-25-019024
Chunk: 151

Company: American Well Corp
Filing Date: 2025-02-12
Form: 10-K
Item: Item 1B
Chunk 151
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    $
    (212,638
    )
     
    $
    (679,171
    )
     
    $
    (272,072
    )

    Add:

    Depreciation and amortization

    32,975

    31,492

    26,153

    Interest and other income, net

    (10,757
    )

    (19,422
    )

    (6,123
    )

    Expense from income taxes

    2,751

    3,860

    64

    Goodwill impairment

    —

    436,479

    —

    Stock-based compensation

    47,505

    72,040

    69,144

    Severance and strategic transformation costs(1)

    20,892

    4,414

    —

    Noncash expenses and contingent consideration adjustments(2)

    —

    —

    12,153

    Capitalized software costs

    (15,102
    )

    (15,056
    )

    (10,155
    )

    Litigation expense(3)

    —

    —

    5,575

    Adjusted EBITDA
     
    $
    (134,374
    )
     
    $
    (165,364
    )
     
    $
    (175,261
    )

(1)Severance and strategic transformation costs include expenses associated with the termination of employees and expenses that focus on transforming the strategy of the Company’s sales and growth organization as well as our overall cost structure during the year ended  December 31, 2024 and 2023, as described below in “—Severance and strategic transformation costs.” 

(2)Noncash expenses and contingent consideration adjustments include, noncash compensation costs incurred by selling shareholders and adjustments made to the contingent consideration.

(3)Litigation expense relates to legal costs related to the Teladoc litigation which was dismissed pursuant to a confidential settlement between the parties in 2022.

60

Some of the limitations of adjusted EBITDA include (i) adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and adjusted EBITDA does not reflect these capital expenditures. Our public offering and acquisition-related expenses, including legal, accounting and other professional expenses, reflect cash