American Well Corp 10-Q

Item 1. Financial Statements AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) March 31, 2021 December 31, 2020 Assets Current assets: Cash and cash equivalents $ 896,382 $ 941,616 Investments 99,997 99,963 Restricted cash 795 1,095 Accounts receivable ($1,182 and $12,053, from related parties and net of allowances of $1,514 and $1,556, respectively) 37,679 45,296 Inventories 9,366 9,128 Deferred contract acquisition costs 2,205 2,134 Prepaid expenses and other current assets 14,882 14,055 Total current assets 1,061,306 1,113,287 Property and equipment, net 3,383 3,836 Goodwill 193,877 193,877 Intangible assets, net 53,600 55,528 Operating lease right-of-use asset 4,999 6,609 Deferred contract acquisition costs, net of current portion 1,124 1,327 Other assets 1,391 1,430 Investment in minority owned joint venture 2,481 752 Total assets $ 1,322,161 $ 1,376,646 Liabilities, Convertible Preferred Stock and Stockholders’ Deficit Current liabilities: Accounts payable $ 6,797 $ 5,797 Accrued expenses and other current liabilities 23,386 42,135 Operating lease liability, current 4,931 6,357 Deferred revenue ($3,176 and $14,421 from related parties, respectively) 63,202 66,693 Total current liabilities 98,316 120,982 Other long-term liabilities 45 64 Operating lease liability, net of current portion 970 1,296 Deferred revenue, net of current portion ($32 and $486 from related parties, respectively) 7,455 8,107 Total liabilities 106,786 130,449 Commitments and contingencies (Note 11) Stockholders’ deficit: Preferred stock, $0.01 par value; 100,000,000 shares authorized, no shares issued or outstanding as of March 31, 2021 and as of December 31, 2020 — — Common stock, $0.01 par value; 1,000,000,000 Class A shares authorized, 207,540,807 and 201,488,097 shares issued, and 207,540,807 and 200,751,168 shares outstanding, respectively; 100,000,000 Class B shares authorized, 26,433,900 and 30,427,128 shares issued, and 26,433,900 and 29,297,382 shares outstanding, respectively; 200,000,000 Class C shares authorized 5,555,555 issued and outstanding as of March 31, 2021 and December 31, 2020 2,396 2,357 Treasury stock, no shares and 1,866,675 shares as of March 31, 2021 and as of December 31, 2020, respectively — (37,568 ) Additional paid-in capital 1,860,123 1,841,405 Accumulated other comprehensive income 279 297 Accumulated deficit (668,871 ) (582,359 ) Total American Well Corporation stockholders’ equity 1,193,927 1,224,132 Non-controlling interest 21,448 22,065 Total stockholders’ equity 1,215,375 1,246,197 Total liabilities, preferred stock and stockholders’ equity $ 1,322,161 $ 1,376,646 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share amounts) (unaudited) Three Months Ended March 31, 2021 2020 Revenue ($8,845 and $13,248 from related parties, respectively) $ 57,599 $ 53,714 Costs and operating expenses: Costs of revenue, excluding depreciation and amortization of intangible assets 35,705 33,027 Research and development 23,040 14,936 Sales and marketing 13,732 13,874 General and administrative 21,354 15,342 Depreciation and amortization expense 2,506 2,286 Total costs and operating expenses 96,337 79,465 Loss from operations (38,738 ) (25,751 ) Interest income and other income (expense), net 61 847 Loss before expense from income taxes and loss from equity method investment (38,677 ) (24,904 ) Expense from income taxes (309 ) — Loss from equity method investment (819 ) (320 ) Net loss (39,805 ) (25,224 ) Net loss attributable to non-controlling interest (617 ) (843 ) Net loss attributable to American Well Corporation $ (39,188 ) $ (24,381 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.16 ) $ (0.58 ) Weighted-average common shares outstanding, basic and diluted 243,544,647 42,383,251 Net loss $ (39,805 ) $ (25,224 ) Other comprehensive income (loss), net of tax: Unrealized gain on available-for-sale investments 34 43 Foreign currency translation (52 ) (171 ) Comprehensive loss (39,823 ) (25,352 ) Less: Comprehensive loss attributable to non-controlling interest (617 ) (843 ) Comprehensive loss attributable to American Well Corporation $ (39,206 ) $ (24,509 ) The accompanying notes are an integral part of these condensed consolidated financial statements. 4 AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (in thousands, except share amounts) (unaudited) Common Stock Treasury Additional Paid-In Accumulated Other Comprehensive Accumulated American Well Corporation Stockholders’ Noncontrolling Total Stockholders’ Shares Amount Stock Capital Income (Loss) Deficit Equity Interest Equity Balances as of December 31, 2020 235,604,105 $ 2,357 $ (37,568 ) $ 1,841,405 $ 297 $ (582,359 ) $ 1,224,132 $ 22,065 $ 1,246,197 Exercise of common stock options 3,474,375 34 — 10,096 — — 10,130 — 10,130 Vesting of restricted stock units 853,842 9 — (9 ) — — — — — Retirement of treasury stock purchased in 2020 — — 37,568 (15 ) — (37,553 ) — — — Shares withheld related to net share settlement and retired treasury stock in 2021 (402,060 ) (4 ) — 4 — (9,771 ) (9,771 ) — (9,771 ) Stock-based compensation expense — — — 8,642 — — 8,642 — 8,642 Currency translation adjustment — — — — (52 ) — (52 ) — (52 ) Unrealized gains on available-for-sale securities, net of tax — — — — 34 — 34 — 34 Net loss — — — — — (39,188 ) (39,188 ) (617 ) (39,805 ) Balances as of March 31, 2021 239,530,262 $ 2,396 $ — $ 1,860,123 $ 279 $ (668,871 ) $ 1,193,927 $ 21,448 $ 1,215,375 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (in thousands, except share amounts) (unaudited) Convertible Preferred Stock Common Stock Treasury Additional Paid-In Accumulated Other Comprehensive Accumulated American Well Corporation Stockholders’ Noncontrolling Total Stockholders’ Shares Amount Shares Amount Stock Capital Income (Loss) Deficit Deficit Interest (Deficit) Balances as of January 1, 2020 14,012,935 $ 655,799 42,302,845 423 $ (158 ) 50,289 $ 250 $ (357,927 ) $ (307,123 ) $ 26,259 $ (280,864 ) Issuance of Series C convertible preferred stock, net of issuance costs of $261 170,000 12,489 — — — — — — — — — Exercise of common stock options — — 7,392 — — 2 — — 2 — 2 Vesting of restricted stock units — — 146,969 1 — (1 ) — — — — — Stock-based compensation expense — — — — — 4,458 — — 4,458 — 4,458 Retirement of treasury stock — — — — 158 (158 ) — — — — — Currency translation adjustment — — — — — — (171 ) — (171 ) — (171 ) Unrealized gains on available-for -sale securities, net of tax — — — — — — 43 — 43 — 43 Net loss — — — — — — — (24,381 ) (24,381 ) (843 ) (25,224 ) Balances as of March 31, 2020 14,182,935 $ 668,288 42,457,206 $ 424 $ - $ 54,590 $ 122 $ (382,308 ) $ (327,172 ) $ 25,416 $ (301,756 ) The accompanying notes are an integral part of these condensed consolidated financial statements. 6 AMERICAN WELL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except share and per share amounts) (unaudited) Three Months Ended March 31, 2021 2020 Cash flows from operating activities: Net loss $ (39,805 ) $ (25,224 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 2,506 2,286 Provisions for doubtful accounts 260 165 Amortization of deferred contract acquisition costs 335 271 Amortization of deferred contract fulfillment costs 173 168 Stock-based compensation expense 8,642 4,458 Loss on equity method investment 819 320 Changes in operating assets and liabilities, net of acquisition: Accounts receivable 7,357 (1,710 ) Inventories (238 ) (612 ) Deferred contract acquisition costs (203 ) (458 ) Prepaid expenses and other current assets (167 ) (2,401 ) Other assets 39 (355 ) Accounts payable 1,023 (45 ) Accrued expenses and other current liabilities (17,666 ) (4,922 ) Other long-term liabilities (19 ) (254 ) Deferred revenue (4,195 ) (3,780 ) Net cash used in operating activities (41,139 ) (32,093 ) Cash flows from investing activities: Purchases of property and equipment (148 ) (1,254 ) Investment in less than majority owned joint venture (2,548 ) (2,940 ) Purchases of investments — (29,777 ) Proceeds from sales and maturities of investments — 39,611 Net cash (used in) provided by investing activities (2,696 ) 5,640 Cash flows from financing activities: Proceeds from issuance of Series C convertible preferred stock, net of issuance costs — 12,564 Proceeds from exercise of common stock options 9,297 2 Payments for the purchase of treasury stock (9,383 ) — Payment of deferred offering costs (1,613 ) — Net cash (used in) provided by financing activities (1,699 ) 12,566 Net decrease in cash, cash equivalents, and restricted cash (45,534 ) (13,887 ) Cash, cash equivalents, and restricted cash at beginning of period 942,711 138,816 Cash, cash equivalents, and restricted cash at end of period $ 897,177 $ 124,929 Cash, cash equivalents, and restricted cash at end of period: Cash and cash equivalents 896,382 123,834 Restricted cash 795 1,095 Total cash, cash equivalents, and restricted cash at end of period $ 897,177 $ 124,929 Supplemental disclosure of cash flow information: Cash paid for income taxes $ 741 $ — Supplemental disclosure of non-cash investing and financing activities: Additions to property and equipment included in accrued expenses and accounts payable $ 23 $ — Exercises of common stock $ 833 $ — Repurchase of common stock $ 388 $ — Common stock issuance costs $ — $ 143 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 AMERICAN WELL CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except share and per share amounts) (unaudited) 1. Organization and Description of Business Description of Business American Well Corporation (the “Company”) was incorporated under the laws of the State of Delaware in June 2006. The Company is headquartered in Boston, Massachusetts. The Company is a leading telehealth company that enables the digital distribution and delivery of care for healthcare’s key stakeholders. The Company’s scalable technology is deployed at the enterprise level of clients, embeds into existing offerings and workflows, spans the continuum of care and enables the delivery of this care across a wide variety of clinical, retail, school and home settings. Stock Split On August 28, 2020, the Company effected an 8.8-for-1.0 stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company’s then outstanding convertible preferred stock (see Note 11). The corresponding number of shares and exercise prices related to stock options and RSUs were also adjusted. The impact of the stock split has been applied retrospectively to all periods presented. Liquidity and Capital Resources The accompanying condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets, and the satisfaction of liabilities and commitments in the ordinary course of business. On September 21, 2020, the Company closed on the IPO raising $822,267 in gross proceeds. On September 21, 2020, the Company closed on a private placement with Google raising $100,000 in gross proceeds. Since inception, the Company has incurred recurring losses. As of March 31, 2021, the Company had an accumulated deficit of $668,871. The Company expects to continue to generate operating losses for the foreseeable future. The Company expects that its cash, cash equivalents and investments balance as of March 31, 2021 of $996,379 will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next twelve months. 8 2. Summary of Significant Accounting Policies There have been no material changes to the significant accounting policies described in the Company’s Form 10-K for the fiscal year ended December 31, 2020, that have had a material impact on the consolidated financial statements and related notes. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals and adjustments) necessary for the fair statement of the Company’s the financial position, results of operations and cash flows at the dates and for the periods indicated. The interim results for the three months ended March 31, 2021 are not necessarily indicative of results for the full 2021 calendar year or any other future interim periods. The information included in the interim financial statements should be read in conjunction with the annual consolidated financial statements and accompanying notes included in the Form 10-K. The unaudited condensed consolidated financial statements include the accounts of American Well Corporation, its wholly-owned subsidiaries, those of professional corporations, which represent variable interest entities in which American Well has an interest and is the primary beneficiary (“PC”), and National Telehealth Network (“NTN”), an entity in which American Well controls fifty percent or more of the voting shares (see Note 4). Intercompany accounts and transactions have been eliminated in consolidation. For substantially all of the Company’s subsidiaries, the functional currency is the U.S. dollar. Foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at current exchange rates and foreign currency denominated nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in interest income and other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. For consolidated entities where American Well owns or is exposed to less than 100% of the economics, the net loss attributable to noncontrolling interests is recorded in the condensed consolidated statements of operations and comprehensive loss equal to the percentage of the economic or ownership interest retained in each entity by the respective non-controlling party. The noncontrolling interests are presented as a separate component of stockholders’ deficit in the condensed consolidated balance sheets. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reported periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, the estimated customer relationship period that is used in the amortization of deferred contract acquisition costs, the valuation of assets and liabilities acquired in business combinations, the useful lives of intangible assets and property and equipment and the valuation of common stock. The Company bases its estimates on historical experience, known trends, and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. Due to the COVID-19 global pandemic, the global economy and financial markets have been disrupted and there is a significant amount of uncertainty about the length and severity of the consequences caused by the pandemic. The Company has considered information available to it as of the date of issuance of these financial statements and has not experienced any significant impact to its estimates and assumptions as a result of the COVID-19 pandemic. On an ongoing basis, the Company will continue to closely monitor the COVID-19 impact on its estimates and assumptions. Segment Information The Company’s chief operating decision makers (CODMs), its two Chief Executive Officers, review financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company operates and manages its business as one reportable and operating segment. In addition, substantially all of the Company’s revenue and long-lived assets are attributable to operations in the United States for all periods presented. 9 Variable Interest Entities The Company evaluates its ownership, contractual and other interests in entities to determine if it has any variable interest in a variable interest entity (“VIE”). These evaluations are complex and involve judgment. If the Company determines that an entity in which it holds a contractual or ownership interest is a VIE and that the Company is the primary beneficiary, the Company consolidates such entity in its condensed consolidated financial statements. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Management performs ongoing reassessments of whether changes in the facts and circumstances regarding the Company’s involvement with a VIE will cause the consolidation conclusion to change. Changes in consolidation status are applied prospectively. The aggregate carrying value of total assets and total liabilities included on the condensed consolidated balance sheets for the PCs after elimination of intercompany transactions were $29,178 and $2,028, respectively, as of March 31, 2021 and $22,682 and $1,998, respectively as of December 31, 2020. Total revenue included on the condensed consolidated statements of operations and comprehensive loss for the PCs after elimination of intercompany transactions was $17,569 and $18,670 for the three months ended March 31, 2021 and 2020, respectively. Net loss included on the condensed consolidated statements of operations and comprehensive loss was not material for the three months ended March 31, 2021 and 2020. Investment in Minority Owned Joint Venture The Company and Cleveland Clinic partnered to form a joint venture, under the name CCAW, JV LLC, to provide broad access to comprehensive and high acuity care services via telehealth. The Company does not have a controlling financial interest in CCAW, JV LLC, but it does have the ability to exercise significant influence over the operating and financial policies of CCAW, JV LLC. Therefore, the Company accounts for its investment in CCAW, JV LLC using the equity method of accounting. The joint venture is considered a variable interest entity under ASC 810-10, but the Company is not the primary beneficiary as it does not have the power to direct the activities of the joint venture that most significantly impact its performance. The Company’s evaluation of ability to impact performance is based on Cleveland Clinic’s managing directors and Cleveland Clinic’s ability to appoint and remove the chairperson who has the ability to cast the tie breaking vote on the most significant activities. In 2020 the Company contributed $2,940 as its 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 three months ended March 31, 2021, the Company made a capital contributed of $2,548, related to a portion of the phase one capital commitment. For the three months ended March 31, 2021 and 2020, the Company recognized a loss of $819 and $320 as its proportionate share of the joint venture’s results of operations, respectively. Accordingly, the carrying value of the equity method investment as of March 31, 2021 and December 31, 2020 was $2,481 and $752, respectively. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments and accounts receivable. The Company invests its excess cash with large financial institutions that the Company believes are of high credit quality. Cash and cash equivalents are invested in highly rated money market funds. At times, the Company’s cash balances with individual banking institutions are in excess of federally insured limits. The Company’s investments are invested in U.S. government agency bonds. The Company has not experienced any losses on its deposits of cash, cash equivalents or investments. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company performs ongoing assessments and credit evaluations of its customers to assess the collectability of the accounts based on a number of factors, including past transaction experience, age of the accounts receivable, review of the invoicing terms of the contracts, and recent communication with customers. The Company has not experienced significant credit losses from its accounts receivable. As of March 31, 2021, and December 31, 2020, one customer accounted for 30% and 19% or greater of outstanding accounts receivable. During the three months ended March 31, 2021 and 2020, sales to one customer (who was a related party during the periods noted) represented 25% and 23% of the Company’s total revenue, respectively. 10 Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with certain new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Requirements for Fair Value Measurement (‘‘ASU 2018-13’’), which modifies the existing disclosure requirements for fair value measurements in Topic 820. The new disclosure requirements include disclosure related to changes in unrealized gains or losses included in other comprehensive loss for recurring Level 3 fair value measurements held at the end of each reporting period and the explicit requirement to disclose the range and weighted-average of significant unobservable inputs used for Level 3 fair value measurements. The other provisions of ASU 2018-13 include eliminated and modified disclosure requirements. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. For all entities, this guidance is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The guidance was adopted effective January 1, 2020 and did not have a material impact on the condensed consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use-software. The standard is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The guidance was adopted effective January 1, 2020 and did not have a material impact on the condensed consolidated financial statements and disclosures. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions and clarifying and amending existing guidance. ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. For public entities that are Securities and Exchange Commission filers, excluding entities eligible to be smaller reporting companies, ASU 2019-12 is effective for annual periods beginning after December 15, 2020, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The guidance was adopted effective January 1, 2021 and did not have a material impact on the condensed consolidated financial statements and disclosures. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (‘‘ASU 2016-13’’), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes may result in earlier recognition of credit losses. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which narrowed the scope and changed the effective date for non-public entities for ASU 2016-13. The FASB subsequently issued supplemental guidance within ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief (‘‘ASU 2019-05’’). ASU 2019-05 provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For public entities that are Securities and Exchange Commission filers, excluding entities eligible to be smaller reporting companies, ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, ASU 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. This standard will be effective for the Company on January 1, 2023. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its condensed consolidated financial statements. 11 3. Revenue The following table presents the Company’s revenues disaggregated by revenue source: Three Months Ended March 31, 2021 2020 Platform subscription $ 24,596 $ 21,756 Visits 27,821 26,464 Other 5,182 5,494 Total Revenue $ 57,599 $ 53,714 Accounts Receivable, Net Accounts receivable primarily consist of amounts billed currently due from customers. Accounts receivable are presented net of an allowance for doubtful accounts, which is an estimate of amounts that may not be collectible. In determining the amount of the allowance at each reporting date, the Company makes judgments about general economic conditions, historical write-off experience and any specific risks identified in customer collection matters, including the aging of unpaid accounts receivable and changes in customer financial conditions. Account balances are written off after all means of collection are exhausted and the potential for non-recovery is determined to be probable. Adjustments to the allowance for doubtful accounts are recorded as general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. Changes in the allowance for doubtful accounts were as follows: Three Months Ended March 31, Year Ended December 31, 2020 Allowance for doubtful accounts, beginning of the period $ 1,556 $ 686 Provisions 260 1,646 Write-offs (302 ) (776 ) Allowance for doubtful accounts, end of the period $ 1,514 $ 1,556 The Company has rights to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer. The amount of unbilled accounts receivable was $3,091 and $3,376 as of March 31, 2021 and December 31, 2020, and has been included within accounts receivable on the condensed consolidated balance sheet. Deferred Revenue Contract liabilities consist of deferred revenue and include billings in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the three months ended March 31, 2021 and 2020, the Company recognized revenue of $17,908 and $22,746, respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented. Significant changes in the Company’s deferred revenue balance for the three months ended March 31, 2021 and the year ended December 31, 2020 were as follows: Three Months Ended March 31, Year Ended December 31, 2020 Total deferred revenue, beginning of the period $ 74,800 $ 77,386 Additions 22,683 109,542 Recognized (26,826 ) (112,128 ) Total deferred revenue, end of the period $ 70,657 $ 74,800 Current deferred revenue 63,202 66,693 Non-current deferred revenue 7,455 8,107 Total $ 70,657 $ 74,800 12 Transaction Price Allocated to Remaining Performance Obligations As of March 31, 2021 and December 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $194,523 and $192,238, respectively. The substantial majority of the unsatisfied performance obligations will be satisfied over the next three years. As it pertains to the March 31, 2021 amount, the Company expects to recognize 56% of the transaction price in the 12 month period ended March 31, 2022, in its condensed consolidated statement of operations and comprehensive loss with the remainder recognized thereafter. 4. National Telehealth Network In 2012, the Company and an affiliate of Anthem, Inc. formed NTN to expand the availability and adoption of telemedicine. The Company did not have a controlling financial interest in NTN, but it had the ability to exercise significant influence over the operating and financial policies of NTN. Therefore, the Company accounted for its investment in NTN using the equity method of accounting through December 31, 2015. On January 1, 2016, the Company made an additional investment in NTN, which increased its ownership percentage above 50%. The Company also obtained the right to elect the Chairman of NTN, who has the ability to cast the tie-breaking vote in all decisions. Therefore, on January 1, 2016, the Company obtained control over NTN and has the power to direct the activities that most significantly impact NTN’s economic performance. This step-acquisition was accounted for as a business combination and the results of the operations of NTN from January 1, 2016, have been included in the Company’s condensed consolidated financial statements. However, because the Company owns less than 100% of NTN, the Company recognizes net loss attributable to non-controlling interest in the condensed consolidated statements of operations and comprehensive loss equal to the percentage of the ownership interest retained in NTN by the respective non-controlling party. The proportionate share of the loss attributed to the non-controlling interest amounted to $617 and $843 for the three months ended March 31, 2021 and 2020, respectively. The carrying value of the non-controlling interest was $21,448 and $22,065 as of March 31, 2021 and December 31, 2020, respectively. 5. Fair Value Measurements Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The following tables presents the Company’s fair value hierarchy for its assets and liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value: March 31, 2021 Level 1 Level 2 Level 3 Total Money market funds $ 839,058 $ — $ — $ 839,058 Investments — 99,997 — $ 99,997 $ 839,058 $ 99,997 $ — $ 939,055 13 December 31, 2020 Level 1 Level 2 Level 3 Total Money market funds $ 892,934 $ — $ — $ 892,934 Investments — 99,963 — 99,963 $ 892,934 $ 99,963 $ — $ 992,897 The Company’s cash equivalents were invested in money market funds and were valued based on Level 1 inputs. The Company’s investments consisted of U.S. government agency bonds and were valued based on Level 2 inputs. In determining the fair value of its U.S. government agency bonds, the Company relied on quoted prices for similar securities in active markets or other inputs that are observable or can be corroborated by observable market data. During the three months ended March 31, 2021, there were no transfers between fair value measurement levels. 6. Investments As of March 31, 2021 and December 31, 2020, the fair value of the Company’s investments by type of security was as follows: March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Assets: U.S government securities $ 99,854 $ 143 $ — $ 99,997 $ 99,854 $ 143 $ — $ 99,997 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Assets: U.S government securities $ 99,854 $ 109 $ — $ 99,963 $ 99,854 $ 109 $ — $ 99,963 7. Goodwill and Intangible Assets Goodwill consisted of the following: Three Months Ended March 31, Year Ended December 31, 2020 Beginning Balance as of January 1 $ 193,877 $ 193,877 Goodwill acquired — — Ending Balance $ 193,877 $ 193,877 14 Identified intangible assets consisted of the following: Gross Amount Accumulated Amortization Carrying Value Weighted Average Remaining Life March 31, 2021 Customer relationships $ 38,782 $ (12,372 ) $ 26,410 6.8 Contractor relationships 535 (216 ) $ 319 7.8 Technology 37,063 (10,192 ) $ 26,871 7.3 $ 76,380 $ (22,780 ) $ 53,600 Gross Amount Accumulated Amortization Carrying Value Weighted Average Remaining Life December 31, 2020 Customer relationships $ 38,782 $ (11,380 ) $ 27,402 7.0 Contractor relationships 535 (206 ) 329 8.0 Trade name 300 (300 ) — — Technology 37,063 (9,266 ) 27,797 7.5 $ 76,680 $ (21,152 ) $ 55,528 Amortization expense related to intangible assets for the three months ended March 31, 2021 and 2020 was $1,928 and $1,939, respectively. Estimated future amortization expense of the identified intangible assets as of March 31, 2021, is as follows: 2021 $ 5,784 2022 7,712 2023 7,712 2024 7,712 2025 7,712 Thereafter 16,968 $ 53,600 8. Accrued Expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: Three Months Ended March 31, Year Ended December 31, 2020 Employee compensation and benefits $ 7,604 $ 20,521 Professional services 4,678 6,832 Provider services 4,283 4,632 Other 6,821 10,150 Total $ 23,386 $ 42,135 15 9. Line of Credit In January 2011, the Company entered into a credit agreement (the “Line of Credit”) with a financial institution that provides for maximum borrowings in one or more advances of an amount up to $5,000. Borrowings under the Line of Credit accrue interest at the London Interbank Offered Rate plus 1.25%. Borrowings are repayable immediately upon demand by the financial institution. In November 2017, the Line of Credit was amended to increase the maximum borrowings to $7,000. As of March 31, 2021 and December 31, 2020, the Company had no outstanding borrowings under the Line of Credit. During any period that the Line of Credit is in effect, the Company can request the financial institution issue a letter of credit with a maximum maturity not to exceed twelve months. Any letters of credit issued by the financial institution reduce the maximum borrowings available under the Line of Credit. As of March 31, 2021, the maximum borrowing available to the Company is $6,205 based on the outstanding letters of credit of $795 that have been issued by the financial institution. As of December 31, 2020, the maximum borrowing available to the Company was $5,905 based on the outstanding letters of credit of $1,095 that have been issued by the financial institution. 10. Stockholders’ Equity Convertible Preferred Stock The authorized, issued and outstanding shares, liquidation preference, and carrying value of the Company’s convertible preferred stock as of December 31, 2019 were as follows: Shares Authorized Shares Issued Shares Outstanding Liquidation Preference Carrying Value Series A 3,200,000 3,178,650 3,130,077 51,741 28,889 Series B 833,334 787,725 787,725 37,060 23,632 Series C 13,711,111 10,095,133 10,095,133 519,648 603,278 17,744,445 14,061,508 14,012,935 608,449 655,799 In February 2020, the Company issued and sold 170,000 shares of Series C preferred stock at a price of $75 per share for gross proceeds of $12,750. The Company incurred $261 of issuance costs in connection with the issuance of the Series C preferred stock In May 2020, the Company issued and sold 1,342,750 shares of Series C preferred stock at a price of $100 per share for gross proceeds of $134,275. The Company incurred $750 of issuance costs in connection with the issuance of the Series C preferred stock. In conjunction with the Company’s IPO in September 2020, all shares of convertible preferred stock then outstanding, totaling 15,525,685 shares (pre-split), were automatically converted into an equivalent number of shares of Class A common stock on an 8.8-to-1.0 basis pursuant to a stock split and their carrying value, totaling $801,813 was reclassified into stockholders’ equity on the condensed consolidated balance sheet. In connection with the IPO, the Company filed an Amended and Restated Certificate of Incorporation which authorizes the issuance of 100,000,000 shares of undesignated preferred stock, par value of $0.01 per share, with rights and preferences, including voting rights, designated from time to time by the board of directors. Common Stock In September 2020, upon completion of the IPO, the Company sold 45,681,499 shares of Class A common stock at an offering price of $18.00 per share, including 4,459,277 shares of Class A common stock pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The Company received net proceeds of $767,568, after deducting underwriting discounts and commissions of $49,336 and offering costs of approximately $4,906. In September 2020, the Company sold 5,555,555 shares of Class C common stock in connection with the stock purchase agreement with Google, LLC for net proceeds of $99,100, after deducting offering costs of $900. Concurrently with the IPO, the Company used $24,157 of the proceeds from the IPO to repurchase 1,340,354 shares of Class A and Class B common stock from certain executive officers and other employees, to permit such executive officers and other employees to pay taxes owed in connection with the vesting of equity awards, including the repayment of third-party loans incurred to finance the payment of such taxes. 16 In connection with the IPO, the Company filed an Amended and Restated Certificate of Incorporation which authorizes capital stock of 1,000,000,000 shares of Class A common stock, par value $ 0.01 per share, 100,000,000 shares of Class B common stock, par value $ 0.01 per share, and 200,000,000 shares of Class C common stock, par value $ 0.01 per share. Except for the rights noted below, each share of Class A, Class B and Class C common stock have the same rights, are equal in all respects and are treated by us as one class of shares. Each share of Class A and Class C common stock is entitled to one vote per share on all matters presented for a vote, except that Class C common stock does not have the right to vote for elections of directors. Subject to certain conditions, Class B common stock is collectively entitled to a number of votes equal to the product of (x) 1.0408163 and (y) the total number of votes that would be cast at such time by the holders of the Class A and Class C common stock and any other preferred stock entitled to vote under the certificate of incorporation at such time (resulting in the Class B common stock collectively holding 51% of the total outstanding voting power) , and each share of Class B common stock will be entitled to a number of votes equal to the total number of votes held by all Class B common stock divided by the total number of then outstanding shares of Class B common stock. Shares of Class B and Class C common stock will be converted into shares of Class A common stock on a one-for-one basis upon the occurrence of certain events. Shares of Class B common stock will automatically convert on the first business day (i) after the date on which the outstanding shares of Class B common stock constitutes less than 5% of the aggregate number of shares of common stock then outstanding, (ii) after the date on which neither founder is serving as an executive officer or (iii) following seven years after the date the amended and restate d certificate of incorporation becomes effective, provided that, such period may, to the extent permitted by law and applicable stock exchange rules, be extended for three years upon the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class A common stock entitled to vote thereon, voting separately as a class. Shares of Class C common stock will be convertible at the option of the holder upon determination that a Hart-Scott-Rodino Antitrust Improvements Act (“HSR”) filing is not necessary prior to the holder’s conversion of such shares or, if required, upon expiration or termination of the HSR waiting period. In the three months ended March 31, 2021, 3,128,274 shares of Class B common stock were converted to Class A common stock. As of March 31, 2021, the par value of the Class A, Class B and Class C shares was $2,076, $264, and $56, respectively. Shares Authorized Shares Issued Shares Outstanding Class A 1,000,000,000 207,540,807 207,540,807 Class B 100,000,000 26,433,900 26,433,900 Class C 200,000,000 5,555,555 5,555,555 1,300,000,000 239,530,262 239,530,262 As of March 31, 2021 and December 31, 2020, the Company had reserved 57,064,532 and 61,392,747 shares of common stock for the exercise of outstanding stock options, the vesting of restricted stock units and the number of shares remaining available for future grant, respectively. Stock Plans and Stock Options The Company maintains the 2006 Employee, Director and Consultant Stock Plan as amended and restated (the “2006 Plan”) and 2020 Equity Incentive Plan (the “2020 Plan” together, the “Plans”) under which it has granted incentive stock options, non-qualified stock options, and restricted stock units to employees, officers, and directors of the Company. In connection with the adoption of the 2020 Plan, the then-remaining shares of common stock reserved for grant or issuance under the 2006 Plan became available for issuance under the 2020 Plan, and no further grants will be made under the 2006 Plan. The 2020 Plan is administered by the board of directors with respect to awards to non-employee directors and by the compensation committee, with respect to other participants, are collectively, referred to as the plan administrator. The exercise prices, vesting and other restrictions are determined at the discretion of the plan administrator. Options issued under the Plans are exercisable for periods not to exceed ten years, and vest and contain such other terms and conditions as specified in the applicable award document. Options to buy common stock are issued under the Plans, with exercise prices equal to the closing price of shares of the Company’s common stock on the New York Stock Exchange on the date of award. 17 Activity under the Plans is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2021 23,167,514 $ 4.37 6.2 $ 487,758 Granted — $ — Forfeited (150,027 ) $ 5.59 Expired — $ — Exercised (3,474,375 ) $ 3.03 Outstanding as of March 31, 2021 19,543,112 $ 4.60 6.3 $ 251,770 Vested and expected to vest as of December 31, 2020 21,744,937 $ 4.14 6.0 $ 460,712 Vested and expected to vest as of March 31, 2021 18,411,730 $ 4.37 6.2 $ 239,307 Options exercisable as of December 31, 2020 17,640,827 $ 3.71 5.5 $ 381,511 Options exercisable as of March 31, 2021 14,982,168 $ 3.97 5.7 $ 200,762 No options were granted in the three months ended March 31, 2021. The weighted-average grant date fair value of common stock options granted during the three months ended March 31, 2020 was $3.88. The weighted-average of assumptions that the Company used to determine the fair value of the common stock options granted to employees and directors were as follows: Three Months Ended March 31, 2021 2020 Risk-free interest rate N/A 1.32 % Expected term (in years) N/A 6.1 Expected volatility N/A 51 % Expected dividend yield N/A 0 % Executive Equity Awards Each CEO has received restricted stock units, equaling 1.5% of the Company’s fully-diluted outstanding capital stock as a result of the IPO (“IPO RSUs”), 50% of the IPO RSUs (representing 0.75% of the Company’s fully diluted outstanding capital stock immediately prior to the IPO or 3,230,750 shares of Class A common stock) were granted on the closing date of the IPO based on the closing price per share on the IPO closing date, and 50% (representing 0.75% of the Company’s fully diluted outstanding capital stock immediately prior to the IPO or 3,230,750 shares of Class A common stock) was granted on the 180-day anniversary of the IPO, based on a specific range of the price per share of the Company’s publicly traded common stock prior March 16, 2021, and will vest over a three-year period, with one-third vesting on the first anniversary of the IPO’s closing date and the remaining vesting in equal quarterly installments thereafter. As the issuance of the second 50% tranche was based upon events that are probable the expense related to both tranches of the IPO RSUs was recognized in the three months ended September 30, 2020. The grant-date fair value of each of the awards issued on the IPO closing date and issued on the 180-day anniversary of the IPO was estimated using a binomial lattice approach. The main inputs to valuing the IPO RSUs include the fair value of Class A common stock ($9.96 post-split), expected volatility (60%) and the expected date of the IPO (September 30, 2020). The Company recognized a total of $23,644 in stock-based compensation expense, which included both tranches of the IPO RSUs for each CEO, on the date of the IPO as the requisite future service of the awards is not substantive for accounting purposes. Restricted Stock Units During the year ended December 31, 2020, the Company granted 13,816,885 restricted stock units which vest over the service period of one to four years. During the three months ended March 31, 2021, the Company granted 3,336,542 restricted stock units which vest over the service period of three to four years. 18 Activity for the restricted stock units is as follows: Shares Weighted Average Grant Date Fair Value Unvested as of January 1, 2021 11,014,450 $ 14.43 Granted 3,336,542 22.91 Vested (853,842 ) 9.65 Forfeited (31,422 ) 15.93 Unvested as of March 31, 2021 13,465,728 $ 16.83 The total grant date fair value of RSU’s granted for the three months ended March 31, 2021 was $76,447. During the three months ended March 31, 2020 the Company did not grant any restricted stock units. The aggregate intrinsic value of restricted stock units vested for the three months ended March 31, 2021 and 2020 was $22,288 and $847, respectively. 2020 Employee Stock Purchase Plan In July and August 2020, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2020 Employee Stock Purchase Plan (“ESPP”). A total of 3,084,218 shares of Class A common stock were reserved for issuance under the ESPP. The ESPP became effective March 1, 2021. Rights granted under the ESPP will be issued only with respect to shares of Class A common stock. The purchase price of the shares will not be less than 85% of the fair market value of Class A common stock on the lower of the purchase date, which will be the final trading day of the purchase period, or the enrollment date, which will be the first trading day of the offering period. As of March 31, 2021, the Company had not issued any shares under the ESPP and the total 3,084,218 shares remained available for issuance. For the three months ended March 31, 2021, the Company recorded stock-based compensation expense related to the ESPP of $103 based on elections made under the plan to-date, and there was none for the quarter ended March 31, 2020. Stock-Based Compensation Stock-based compensation expense was classified in the condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended March 31, 2021 2020 Cost of revenues $ 389 $ 191 Research and development 1,507 448 Selling and marketing 1,889 790 General and administrative 4,857 3,029 Total $ 8,642 $ 4,458 As of March 31, 2021, the unrecognized stock-based compensation expense related to unvested common stock-based awards was $56,707, which is expected to be recognized over a weighted-average period of 2.62 years. 11. Commitments and Contingencies Indemnification The Company’s arrangements generally include certain provisions for indemnifying customers against third-party claims asserting infringement of certain intellectual property rights in the ordinary course of business. The Company also regularly indemnifies customers against third-party claims that the company’s products or services breach applicable law or regulation or from claims resulting from a breach of the business associate agreement in place with the customer. In addition, the Company indemnifies its officers, directors and certain key employees while they are serving in good faith in their capacities. Through March 31, 2021 and December 31, 2020, there have been no claims under any indemnification provisions. Litigation 19 From time to time, and in the ordinary course of business, the Company may be subject to various claims, charges, and litigation. On September 14, 2020, the Company received a letter from Teladoc Health, Inc. alleging that certain of the Company’s cart products and associated peripherals infringe upon their patents. On October 12, 2020, Teladoc Health, Inc filed a claim against the Company related to these allegations. The Company believes that these claims lack merit and intends to defend against them vigorously. As of March 31, 2021 and December 31, 20 20 , the Company did no t have any pending claims, charges or litigation that it expects would have a material adverse effect on its consolidated financial position, results of operations or cash flows. 12. Income Taxes As a result of the Company’s history of net operating losses (“NOL”), the Company has provided for a full valuation allowance against its deferred tax assets. For the three months ended March 31, 2021, the Company recognized an income tax expense of $309, primarily due to estimated state and foreign income taxes related to equity awards issued in the first quarter. During the three months ended March 31, 2020, the Company recorded no income tax expense. 13. Related-Party Transactions Teva Pharmaceuticals, Industries Ltd Teva Pharmaceuticals, Industries Ltd (“Teva”) is a related party because a member of the Company’s board of directors is the Executive Vice President and Head of Teva Pharmaceuticals’ North America Commercial. In addition, Teva is a shareholder of the Company. As of March 31, 2021 and December 31, 2020, short-term and long-term deferred revenue from this customer was not material. As of March 31, 2021 and December 31, 2020, amounts due from Teva were not material. During the three months ended March 31, 2021 and 2020, revenues recognized from this customer were not material. Philips Holding USA, Inc. Philips Holding USA, Inc. (“Philips”) is a related party because a member of the Company’s board of directors is the Business Leader of Philips Population Health Management. In addition, Philips is a shareholder of the Company. As of March 31, 2021 and December 31, 2020, the Company held short-term and long-term deferred revenue of $1,439 and $2,549, respectively from contracts with this customer. As of March 31, 2021 and December 31, 2020, amounts due from Philips were $1,070 and $763, respectively. During the three months ended March 31, 2021 and 2020, the Company recognized revenue of $900 and $340, respectively from contracts with this customer. Anthem Inc. Anthem Inc. (“Anthem”) was determined to be a related party because a member of the Company’s board of directors served as the Vice President of Anthem through February 2021. In addition, Anthem is a shareholder of the Company. As of March 31, 2021 it was determined Anthem was no longer a related party. As of December 31, 2020, the Company held short-term and long-term deferred revenue of $11,347, from contracts with this customer. As of December 31, 2020, amounts due from Anthem were $8,391. Prior to the board member’s departure from Anthem in 2021 and during the three months ended 2020, the Company recognized revenue of $7,218 and $12,307, respectively from contracts with this customer. Cleveland Clinic Cleveland Clinic is a related party because a member of the Company’s board of directors is an executive advisor to Cleveland Clinic. As of March 31, 2021 and December 31, 2020, the Company held short-term and long-term deferred revenue of $668 and $606, respectively from contracts with this customer. As of March 31, 2021 and December 31, 2020, amounts due from Cleveland Clinic were $78 and $1,020, respectively. During the three months ended March 31, 2021 and 2020, the Company recognized revenue of $251 and $196, respectively, from contracts with this customer. CCAW, JV LLC CCAW, JV LLC is a related party because it is a joint venture formed between the Company and Cleveland Clinic for which the Company has a minority owned interest in. During the year ended December 31, 2020, the Company made an initial investment in 20 CCAW, JV LLC of $ 2,940 for its less than 50 % interest in the joint venture. During the three months ended March 31, 2021, the Company made a capital contributed of $ 2,548 , related to a portion of the phase one capital commitment. During the three months ended March 31, 2021 and 2020 the Company recognized revenue of $462 and $ 393 from contracts with this customer, respectively. As of March 31, 2021 and December 31 , 2020, the Company held short and long term deferred revenue of $1,101 and $ 1,496 , respectively, from contracts with this customer. As of March 31, 2021 and December 31 , 2020, amounts due from CCAW, JV LLC were no t material . Loans to Officers During 2020, the Company entered into secured promissory notes with executive officers in the amount of $16,441. These loans were to fund the taxes associated with the restricted stock units and were collateralized by all of the capital stock of the Company that the employee owned or would own in the future and the employees’ personal assets. These loans are recorded within prepaids and other current assets in the Company’s condensed consolidated balance sheet. All outstanding loans with officers were repaid in August 2020 prior to the Company’s IPO. 14. Net Loss per Share Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (39,805 ) $ (25,224 ) Net loss attributable to non-controlling interest (617 ) (843 ) Net loss attributable to American Well Corporation $ (39,188 ) $ (24,381 ) Denominator: Weighted-average common shares outstanding —basic and diluted 243,544,647 42,383,251 Net loss per share attributable to common stockholders—basic and diluted $ (0.16 ) $ (0.58 ) The Company’s potential dilutive securities, which include stock options, convertible preferred stock and unvested restricted stock units, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares equivalents presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended March 31, 2021 2020 Convertible preferred stock (as converted to common stock) — 124,809,828 Unvested restricted stock units 5,096,970 2,175,439 Options to purchase shares of common stock 19,543,112 26,044,295 24,640,082 153,029,562 21