AMERICAN WELL CORPORATION UK LIMITED

Company Registration Number:
10960422 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2022

Period of accounts

Start date: 1 January 2022

End date: 31 December 2022

AMERICAN WELL CORPORATION UK LIMITED

Contents of the Financial Statements

for the Period Ended 31 December 2022

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

AMERICAN WELL CORPORATION UK LIMITED

Directors' report period ended 31 December 2022

The directors present their report with the financial statements of the company for the period ended 31 December 2022

Principal activities of the company

The principal activity of the company is that of software design and development to provide digital therapeutic solutions via tailored clinical programs that are hosted on a Software as a Service platform.In August 2021, American Well Corporation (“Amwell”) completed the acquisition of the SilverCloud Health Group. Amwell is headquartered in Boston, Massachusetts and is a leading telehealth company that enablesthe digital distribution and delivery of care for healthcare’s key stakeholders.In accordance with Section 414B of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, the company is exempt from preparing a Strategic Report.The company’s client base consists mainly of healthcare providers in the UK. In the short to medium term, the company will continue to focus on developing existing partner relationships and growing the business in theexisting market.

Political and charitable donations

The company did not make any political contributions during the current or preceding financial year

Additional information

Going concernThe Company reported a profit after tax of £804,093 (2021 - £200,700) for the financial year ended 31 December 2022, and at the year its net assets were of £1,044,660 (2021 - £165,410), and had cash on hand of£488,012 (2021 - £424,697). The company’s forecasts and projections, taking account of reasonably possible changes in trading performance and continued financial support from the ultimate parent company show that the company should be able to continue to operate. The directors have a reasonable expectation that the- company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.



Directors

The director shown below has held office during the whole of the period from
1 January 2022 to 31 December 2022

Bradford Fulton GAY


The director shown below has held office during the period of
1 January 2022 to 4 September 2022

Kevin HIGGINS


The directors shown below have held office during the period of
4 September 2022 to 31 December 2022

Kurtis Lee KNIGHT
Glen REID


Secretary Bradford Fulton GAY

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
31 October 2023

And signed on behalf of the board by:
Name: Bradford Fulton GAY
Status: Secretary

AMERICAN WELL CORPORATION UK LIMITED

Profit And Loss Account

for the Period Ended 31 December 2022

2022 2021


£

£
Turnover: 3,829,256 1,397,571
Cost of sales: ( 187,302 ) ( 81,596 )
Gross profit(or loss): 3,641,954 1,315,975
Distribution costs: ( 508,971 ) ( 49,341 )
Administrative expenses: ( 2,097,980 ) ( 1,020,219 )
Operating profit(or loss): 1,035,003 246,415
Profit(or loss) before tax: 1,035,003 246,415
Tax: ( 230,910 ) ( 45,715 )
Profit(or loss) for the financial year: 804,093 200,700

AMERICAN WELL CORPORATION UK LIMITED

Balance sheet

As at 31 December 2022

Notes 2022 2021


£

£
Fixed assets
Tangible assets: 3 1,944 3,888
Total fixed assets: 1,944 3,888
Current assets
Debtors: 4 3,112,357 728,269
Cash at bank and in hand: 488,012 424,697
Total current assets: 3,600,369 1,152,966
Creditors: amounts falling due within one year: 5 ( 2,557,653 ) ( 991,444 )
Net current assets (liabilities): 1,042,716 161,522
Total assets less current liabilities: 1,044,660 165,410
Total net assets (liabilities): 1,044,660 165,410
Capital and reserves
Called up share capital: 1 1
Other reserves: 75,157 0
Profit and loss account: 969,502 165,409
Total Shareholders' funds: 1,044,660 165,410

The notes form part of these financial statements

AMERICAN WELL CORPORATION UK LIMITED

Balance sheet statements

For the year ending 31 December 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 31 October 2023
and signed on behalf of the board by:

Name: Bradford Fulton GAY
Status: Director

The notes form part of these financial statements

AMERICAN WELL CORPORATION UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    TurnoverThe turnover of the company is attributable to digital therapeutic solutions via tailored clinical programs as well as intercompany revenue from the provision of services to other group undertakings.A segmental analysis of turnover (by geographic market) is not provided since, in the opinion of thedirectors, the disclosure of this information would be seriously prejudicial to the interests of the company.

    Tangible fixed assets depreciation policy

    Tangible assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.The estimated useful lives range as follows:Office equipment - 3 yearsThe assets' residual values, useful lives and depreciation methods are reviewed, and adjustedprospectively if appropriate, or if there is an indication of a significant change since the last reportingdate.Gains and losses on disposals are determined by comparing the proceeds with the carrying amountand are recognised in profit or loss.

    Other accounting policies

    Foreign currency translationFunctional and presentation currencyThe company's functional and presentational currency is Pound Sterling (£).Transactions and balancesForeign currency transactions are translated into the functional currency using the spot exchangerates at the dates of the transactions.At each period end foreign currency monetary items are translated using the closing rate. Nonmonetaryitems measured at historical cost are translated using the exchange rate at the date of thetransaction and non-monetary items measured at fair value are measured using the exchange ratewhen fair value was determined.Foreign exchange gains and losses resulting from the settlement of transactions and from thetranslation at period-end exchange rates of monetary assets and liabilities denominated in foreigncurrencies are recognised in profit or loss except when deferred in other comprehensive income asqualifying cash flow hedges.Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents arepresented in the Statement of Comprehensive Income within 'finance income or costs'. All otherforeign exchange gains and losses are presented in profit or loss within 'other operating income'.Operating leasesRentals paid under operating leases are charged to Statement of comprehensive income on astraight line basis over the lease term.Benefits received and receivable as an incentive to sign an operating lease are recognised on astraight line basis over the lease term, unless another systematic basis is representative of the timepattern of the lessee's benefit from the use of the leased asset.3.6 Share-based compensationThe company’s employees participate in a share-based payment arrangement established by theultimate parent company. The employees are granted restricted stock units over common stockshares of American Well Corporation. The fair value of the restricted stock units is measured at thegrant date. The company recognises a share-based payment expense in profit or loss, based onthe grant date fair value of the share options, on a straight-line basis over the vesting period, withadjustment to equity as share-based payment reserve.3.7 Current and deferred taxationIncome tax expense for the financial year comprises current and deferred tax recognised in thefinancial year. Income tax expense is presented in the same component of total comprehensiveincome (profit and loss account or other comprehensive income) or equity as the transaction orother event that resulted in the income tax expense.Current or deferred tax assets and liabilities are not discounted.Current taxCurrent tax is the amount of income tax payable in respect of the taxable profit for the financial yearor past financial years. Current tax is measured at the amount of current tax that is expected to bepaid using tax rates and laws that have been enacted or substantively enacted by the end of thefinancial year.The directors periodically evaluate positions taken in tax returns with respect to situations in whichapplicable tax regulation is subject to interpretation. A current tax liability is recognised whereappropriate and measured on the basis of amounts expected to be paid to the tax authorities.Deferred taxDeferred tax is recognised in respect of timing differences, which are differences between taxableprofits and total comprehensive income as stated in the financial statements. These timingdifferences arise from the inclusion of income and expenses in tax assessments in financial yearsdifferent from those in which they are recognised in financial statements.Deferred tax is recognised on all timing differences at the end of each financial year with certainexceptions. Deferred tax assets arising on unrelieved tax losses and other deferred tax assets arerecognised only when it is probable that they will be recovered against the reversal of deferred taxliabilities or other future taxable profits.Deferred tax is measured using tax rates and laws that have been enacted or substantively enactedby the end of each financial year end and that are expected to apply to the reversal of the timingdifference.DebtorsShort term debtors are measured at transaction price including transaction costs, less anyimpairment. Loans receivable are measured initially at fair value including transaction costs, and aremeasured subsequently at amortised cost using the effective interest method, less any impairment.Incremental sales commission paid on revenue contracts is amortised over the life of the relatedcontract and the unamortised portion is classified within debtors as "other debtors".3.9 Cash and cash equivalentsCash is represented by cash in hand and deposits with financial institutions repayable withoutpenalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments thatmature in no more than three months from the date of acquisition and that are readily convertible toknown amounts of cash with insignificant risk of change in value.3.10 CreditorsShort term creditors are measured at the transaction price including transaction costs, less anyimpairment. Other financial liabilities are measured initially at transaction price including transactioncosts, and are measured subsequently at amortised cost using the effective interest method.ImpairmentAt each reporting date the company assesses whether there is any indication of impairment. If suchindication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.Financial instrumentsThe company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from other third parties and investments in ordinary shares.Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

AMERICAN WELL CORPORATION UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

  • 2. Employees

    2022 2021
    Average number of employees during the period 26 14

AMERICAN WELL CORPORATION UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 January 2022 5,833 5,833
Additions
Disposals
Revaluations
Transfers
At 31 December 2022 5,833 5,833
Depreciation
At 1 January 2022 1,945 1,945
Charge for year 1,944 1,944
On disposals
Other adjustments
At 31 December 2022 3,889 3,889
Net book value
At 31 December 2022 1,944 1,944
At 31 December 2021 3,888 3,888

AMERICAN WELL CORPORATION UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

4. Debtors

2022 2021
£ £
Trade debtors 2,624,338 447,596
Prepayments and accrued income 199,824 148,361
Other debtors 288,195 132,312
Total 3,112,357 728,269
Debtors due after more than one year: 0

The figures listed under Debtors after more than one year , the right heading is Amounts owed by group undertakings-1,412,308

AMERICAN WELL CORPORATION UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2022

5. Creditors: amounts falling due within one year note

2022 2021
£ £
Trade creditors 4,489 37,067
Taxation and social security 466,330 120,527
Accruals and deferred income 2,062,121 749,497
Other creditors 24,713 84,353
Total 2,557,653 991,444