Talkspace, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Talkspace, Inc. filed its 2023 10-K, detailing financial performance, warrant information, and subsequent events including a share repurchase program.</b>

AI Summary

Talkspace, Inc. (TALKW) filed a Annual Report (10-K) with the SEC on March 13, 2024. Talkspace, Inc. filed its 2023 Form 10-K on March 13, 2024, reporting on its fiscal year ended December 31, 2023. The filing covers various financial statement items including Selling and Marketing Expense, General and Administrative Expense, and Accounts Receivable for the fiscal year 2023. It also details information on warrants, including Public Warrants and Private Placement Warrants, and their fair value measurements as of December 31, 2022 and 2023. The report includes data on revenue segments such as Payor Revenue and DTE Revenue for the years 2021, 2022, and 2023. Subsequent events noted include a Share Repurchase Program announced on February 22, 2024.

Why It Matters

For investors and stakeholders tracking Talkspace, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Talkspace's financial health and operational activities for the fiscal year 2023, crucial for investors assessing the company's current standing and future prospects. The inclusion of specific financial data, revenue breakdowns, and details on warrants offers insights into the company's revenue streams, cost management, and capital structure, which are key indicators for investment decisions.

Risk Assessment

Risk Level: medium — Talkspace, Inc. shows moderate risk based on this filing. The company's financial performance and operational details in the 10-K indicate a need for careful investor scrutiny due to the nature of the digital health market and the company's specific financial metrics.

Analyst Insight

Investors should analyze the detailed revenue segments and expense breakdowns in the 10-K to understand Talkspace's profitability drivers and cost structure.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-13 — Filing Date (Date of submission)
• 2021-2023 — Revenue Data Years (Payor Revenue and DTE Revenue reporting)
• 2022-12-31 — Warrant Fair Value Date (Valuation point for warrants)
• 2024-02-22 — Share Repurchase Program Date (Subsequent event)

Key Players & Entities

• Talkspace, Inc. (company) — Filer name
• TALKW (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-03-13 (date) — Filing date
• Hudson Executive Investment Corp. (company) — Former company name
• 622 THIRD AVENUE (location) — Business address
• 2578 BROADWAY #607 (location) — Mail address
• 2024-02-22 (date) — Share Repurchase Program announcement date

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces risk related to customer concentration, particularly with Accounts Receivable, as of December 31, 2023.

Key Financial Figures

• $0.0001 — ch registered Common stock, par value $0.0001 per share TALK The NASDAQ Stock Mar
• $1.27 — pany's common stock on June 30, 2023 of $1.27. The number of shares of common stock
• $150.0 million — ded December 31, 2023 our revenues were $150.0 million compared to $119.6 million for the year
• $119.6 million — evenues were $150.0 million compared to $119.6 million for the year ended December 31, 2022. A

Filing Documents

• talk-20231231.htm (10-K) — 2158KB
• talk-ex10_23.htm (EX-10.23) — 49KB
• talk-ex21_1.htm (EX-21.1) — 6KB
• talk-ex23_1.htm (EX-23.1) — 9KB
• talk-ex31_1.htm (EX-31.1) — 14KB
• talk-ex31_2.htm (EX-31.2) — 14KB
• talk-ex32_1.htm (EX-32.1) — 8KB
• talk-ex32_2.htm (EX-32.2) — 8KB
• talk-ex97_1.htm (EX-97.1) — 30KB
• img104969663_0.jpg (GRAPHIC) — 105KB
• 0000950170-24-030872.txt (&nbsp;) — 9019KB
• talk-20231231.xsd (EX-101.SCH) — 1435KB
• talk-20231231_htm.xml (XML) — 1358KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 40 Item 1C. Cybersecurity 41 Item 2.

Properties

Properties 43 Item 3.

Legal Proceedings

Legal Proceedings 43 Item 4. Mine Safety Disclosures 43 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 44 Item 6. Reserved 45 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 55 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 79 Item 9A.

Controls and Procedures

Controls and Procedures 79 Item 9B. Other Information 80 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 80 PART III Item 10. Directors, Executive Officers and Corporate Governance 81 Item 11.

Executive Compensation

Executive Compensation 81 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 81 Item 13. Certain Relationships and Related Transactions, and Director Independence 81 Item 14. Principal Accounting Fees and Services 81 PART IV Item 15. Exhibits and Financial Statement Schedules 82 Item 16. Form 10-K Summary 82 Exhibit Index 83

Signatures

Signatures 85 i Table of Contents PART I It em 1. BUSINESS Our Mission Our mission is to help people everywhere to heal. Overview Talkspace, Inc. together with its consolidated subsidiaries (referred to herein as the "Company", "we", "our", "us" or "Talkspace") is a leading behavioral healthcare company that offers convenient and affordable access to a fully-credentialed network of licensed therapists, psychologists, and psychiatrists. Founded in 2012, and enabled by a purpose-built technology platform, we have connected millions of patients, who we refer to as our "members" with licensed mental health providers through messaging, video and audio. Talkspace was originally incorporated as Hudson Executive Investment Corp. ("HEC"), a special purpose acquisition company, for the purpose of entering into a business combination with one or more businesses or entities. On January 12, 2021, HEC, entered into an Agreement and Plan of Merger, dated as of January 12, 2021 (the "Merger Agreement"), with Groop Internet Platform, Inc. ("Old Talkspace"), Tailwind Merger Sub I, Inc., a Delaware corporation and a direct wholly owned subsidiary of HEC ("First Merger Sub"), and Tailwind Merger Sub II, LLC, a Delaware limited liability company ("Second Merger Sub"). On June 22, 2021, as contemplated by the Merger Agreement, First Merger Sub merged with and into Old Talkspace (the "First Merger") with Old Talkspace surviving the First Merger, and immediately following the First Merger and as part of the same overall transaction as the First Merger, Old Talkspace merged with and into Second Merger Sub, with Second Merger Sub surviving the merger as a wholly owned subsidiary of HEC. The Company refers to this transaction as the Business Combination. In connection with the Business Combination, HEC filed the Certificate of Incorporation and changed its name to "Talkspace, Inc." Through our platform, we serve our payor clients ("Payor"), comprised of health plans and

View Full Filing

View this 10-K filing on SEC EDGAR