10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-39314

 

TALKSPACE, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

84-4636604

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

Not applicable

Not applicable

(Address of principal executive offices)

(Zip Code)

(212) 284-7206

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common stock, par value $0.0001 per share

 

TALK

 

Nasdaq Stock Market

Warrants to purchase common stock

 

TALKW

 

Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

As of November 8, 2021, the registrant had 152,307,497 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

8

 

Condensed Consolidated Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020

8

 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) for the three and nine months ended September 30, 2021 and 2020

9

 

Condensed Consolidated Statements of Stockholder’s Equity (Deficit) (unaudited) for the three and nine months ended September 30, 2021 and 2020

10

 

Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2021 and 2020

11

 

Notes to Unaudited Condensed Consolidated Financial Statements

12

Item 2.

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

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

34

Item 4.

Controls and Procedures

34

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

37

Item 1A.

Risk Factors

37

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

73

Item 3.

Defaults Upon Senior Securities

73

Item 4.

Mine Safety Disclosures

73

Item 5.

Other Information

73

Item 6.

Exhibits

74

Signatures

75

 

 

 

2


 

basis of presentation

As used in this Quarterly Report, unless the context otherwise requires, references to:

2021 Plan” are to the Talkspace, Inc. 2021 Incentive Award Plan;
Business Combination” are to, together, (i) the First Merger and (ii) the Second Merger;
Bylaws” are to our bylaws dated June 22, 2021;
Certificate of Incorporation” are to the second amended and restated certificate of incorporation of Talkspace, Inc. dated June 22, 2021;
Closing” are to the consummation of the Business Combination;
DGCL” are to the Delaware General Corporation Law, as amended;
2021 ESPP” are to the Talkspace, Inc. 2021 Employee Stock Purchase Plan;
Exchange Act” are to the Securities Exchange Act of 1934, as amended;
First Merger” are to the merger of First Merger Sub with and into Old Talkspace;
First Merger Sub” are to Tailwind Merger Sub I, Inc.;
HEC” are to Hudson Executive Investment Corp., a Delaware corporation;
HEC Forward Purchase” are to the purchase by HEC Fund from HEC pursuant to the HEC Forward Purchase Agreement of 5,000,000 forward purchase units (the “Forward Purchase Units”), consisting of one share of Talkspace common stock and one-half of one warrant to purchase one share of Talkspace common stock, for $10.00 per unit, or an aggregate amount of $50,000,000, in a private placement closed concurrently with the Closing;
HEC Forward Purchase Agreement” are to the forward purchase agreement, entered into as of June 8, 2020, by and between HEC and HEC Fund, as amended by that certain First Amendment to Forward Purchase Agreement, dated January 12, 2021;
HEC Fund” are to HEC Master Fund LP, a Delaware limited partnership;
HEC IPO” are to the initial public offering by HEC which closed on June 11, 2020;
Merger Agreement” are to that certain Agreement and Plan of Merger, dated as of January 12, 2021, by and among HEC, Old Talkspace, First Merger Sub and Second Merger Sub;
Old Talkspace” are to Groop Internet Platform, Inc. (d/b/a “Talkspace”), a Delaware corporation;
PIPE Investment” are to the purchase of shares of Talkspace common stock pursuant to the Subscription Agreements;
private placement warrants” are to the warrants issued by HEC to the Sponsor in a private placement simultaneously with the closing of the HEC IPO and the warrants originally sold as part of the units in the HEC Forward Purchase;
public warrants” are to the warrants originally sold as part of the units in the HEC IPO (whether they were purchased in the HEC IPO or thereafter in the open market);
SEC” are to the United States Securities and Exchange Commission;
Second Merger Sub” are to Tailwind Merger Sub II, LLC;
Sponsor” are to HEC Sponsor LLC, a Delaware limited liability company;
Sponsor Support Agreement” are to that certain Support Agreement, dated as of January 12, 2021, by and among HEC, the HEC Insiders and Old Talkspace;
Subscription Agreements” are to the subscription agreements entered into by and between HEC and the PIPE Investors, in each case, dated as of January 12, 2021 and entered into in connection with the PIPE Investment;
Transactions” are to, collectively, the Business Combination and the other transactions contemplated by the Merger Agreement;

3


 

Warrant Agreement” are to that certain Warrant Agreement, dated as of June 8, 2020, by and between HEC and Continental Stock Transfer & Trust Company; and
warrants” are to the public warrants and the private placement warrants.

4


 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (the “Quarterly Report”) contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this Quarterly Report may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report include, but are not limited to statements regarding our future results of operations and financial position, industry and business trends, business strategy, expectations regarding the impact of COVID-19, our efforts to remediate our material weakness in internal control over financial reporting, and our objectives for future operations.

These forward-looking statements are based on information available as of the date of this Quarterly Report and current expectations, forecasts and assumptions, which involve a number of judgments, risks and uncertainties, including without limitation, risks related to:

our history of losses and our ability to achieve or sustain profitability;
the evolution of the markets in which we operate;
our ability to continue to grow our business;
our limited operating history;
our ability to raise additional capital;
factors relating to our business, operations and financial performance, including:
o
the impact of the COVID-19 pandemic;
o
our ability to maintain an effective system of internal controls over financial reporting;
o
our ability to grow market share in our existing markets or any new markets we may enter;
o
our ability to respond to general economic conditions;
o
the growth and evolution of the virtual behavioral health market;
o
risks associated with increased competition in the virtual behavioral health market;
o
our ability to maintain and enhance our products and brand, and to attract customers;
o
our ability to manage, develop and refine our technology platform;
o
our ability to grow our member base; and
other factors detailed under the section entitled “Risk Factors” in this Quarterly Report.

 

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

5


 

RISK FACTORS SUMMARY

Our business is subject to numerous risks and uncertainties, including those highlighted in the section entitled “Risk Factors” in Part II, Item 1A of this Quarterly Report, that represent challenges that we face in connection with the successful implementation of our strategy and the growth of our business. In particular, the following considerations, among others, may offset our competitive strengths or have a negative effect on our business strategy, which could cause a decline in the price of shares of our common stock or warrants and result in a loss of all or a portion of your investment:

We have a history of losses, which we expect to continue, and we may never achieve or sustain profitability.
Our business and the markets we operate in are new and rapidly evolving which makes it difficult to evaluate our future prospects and the risks and challenges we may encounter.
We may not grow at the rates we historically have achieved or at all, even if our key metrics may indicate growth, which could have a material adverse effect on the market price of our common stock.
The virtual behavioral health market is immature and volatile, and if it does not develop, if it develops more slowly than we expect, if it encounters negative publicity or if our services are not competitive, the growth of our business will be harmed.
The outbreak of the novel coronavirus (COVID-19) and its impact on business and economic conditions could adversely affect our business, results of operations and financial condition, and the extent and duration of those effects will be uncertain.
We operate in a competitive industry, and if we are not able to compete effectively, our business, financial condition and results of operations will be harmed.
If growth in the number of clients and members or providers on our platform decreases, or the number of products or services that we are able to sell to our clients and members decreases, due to legal, economic or business developments, our business, financial condition and results of operations will be harmed.
We may be unsuccessful in achieving broad market education and changing consumer purchasing habits.
Our growth depends in part on the success of our strategic relationships with third parties that we provide services to.
Our virtual behavioral healthcare strategies depend on our ability to maintain and expand our network of therapists, psychiatrists and other providers. If we are unable to do so, our future growth would be limited and our business, financial condition and results of operations would be harmed.
Developments affecting spending by the healthcare industry could adversely affect our business.
Our business could be adversely affected by legal challenges to our business model or by actions restricting our ability to provide the full range of our services in certain jurisdictions.
We are dependent on our relationships with affiliated professional entities, which we do not own, to provide physician and other professional services, and our business, financial condition and our ability to operate in certain jurisdictions would be adversely affected if those relationships were disrupted or if our arrangements with our providers or clients are found to violate state laws prohibiting the corporate practice of medicine or fee splitting.
The impact on us of recent healthcare legislation and other changes in the healthcare industry and in healthcare spending is currently unknown, but may adversely affect our business, financial condition and results of operations.

6


 

Changes in consumer sentiment or laws, rules or regulations regarding the use of cookies and other tracking technologies and other privacy matters could have a material adverse effect on our ability to generate net revenues and could adversely affect our ability to collect proprietary data on consumer behavior.
Our use and disclosure of personally identifiable information, including PHI, personal data, and other health information, is subject to state, federal or other privacy and security regulations, and our failure to comply with those regulations or to adequately secure the information we hold could result in significant liability or reputational harm and, in turn, a material adverse effect on our client base and member bases and revenue.
Any failure to protect, enforce or defend our intellectual property rights could impair our ability to protect our technology and our brand.
We may be subject to securities litigation, which is expensive and could divert management attention.

7


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

 

TALKSPACE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)

 

 

 

September 30, 2021

 

 

December 31, 2020

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 



 

CURRENT ASSETS:

 



 

 



 

Cash and cash equivalents

 

$

222,865

 

 

$

13,248

 

Accounts receivable, net

 

 

5,318

 

 

 

5,914

 

Other current assets

 

 

10,023

 

 

 

1,515

 

Total current assets

 

 

238,206

 

 

 

20,677

 

Property and equipment, net

 

 

658

 

 

 

175

 

Deferred issuance costs

 

 

-

 

 

 

692

 

Intangible assets, net

 

 

3,876

 

 

 

5,195

 

Goodwill

 

 

6,134

 

 

 

6,134

 

Other long-term assets

 

 

82

 

 

 

-

 

Total assets

 

$

248,956

 

 

$

32,873

 

 

 

 

 

 

 

 

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND
   STOCKHOLDERS’ DEFICIT

 



 

 



 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 



 

 



 

Accounts payable

 

$

14,039

 

 

$

7,901

 

Deferred revenues

 

 

8,302

 

 

 

5,172

 

Accrued expenses and other current liabilities

 

 

7,634

 

 

 

7,416

 

Total current liabilities

 

 

29,975

 

 

 

20,489

 

 

 

 

 

 

 

 

Warrant liabilities

 

 

12,012

 

 

 

-

 

Other long-term liabilities

 

 

86

 

 

 

-

 

Total liabilities

 

 

42,073

 

 

 

20,489

 

 

 

 

 

 

 

 

CONVERTIBLE PREFERRED STOCK:

 



 

 



 

 

 

 

 

 

 

 

Convertible preferred stock (Series Seed, Seed-1, Seed-2, A, B, C and D) of $0.0001 par value — Authorized: 100,000,000 and 95,709,146 shares at September 30, 2021 and December 31, 2020, respectively; Issued and outstanding: 0 and 94,582,550 shares at September 30, 2021 and December 31, 2020, respectively (1)

 

 

-

 

 

 

111,282

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY (DEFICIT):

 



 

 



 

 

 

 

 

 

 

 

Common stock of $0.0001 par value — Authorized: 1,000,000,000 and 129,397,278 shares at September 30, 2021 and December 31, 2020, respectively; Issued and outstanding: 152,293,298 and 13,413,431 shares at September 30, 2021 and December 31, 2020, respectively (1)

 

 

15

 

 

 

1

 

Additional paid-in capital (1)

 

 

357,330

 

 

 

9,889

 

Accumulated deficit

 

 

(150,462

)

 

 

(108,788

)

Total stockholders’ equity (deficit)

 

 

206,883

 

 

 

(98,898

)

Total liabilities, convertible preferred stock and stockholders’ equity (deficit)

 

$

248,956

 

 

$

32,873

 

 

(1) Prior period results have been adjusted to reflect the exchange of Old Talkspace’s common stock for Talkspace’s common stock at an exchange ratio of approximately 1.134140 in June 2021 as a result of the Business Combination. See Note 3, “Business Combination,” for further details.

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

 

8


 

TALKSPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)

U.S. dollars in thousands (except share and per share data)

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues

 

$

26,359

 

 

$

21,505

 

 

$

84,499

 

 

$

50,502

 

Cost of revenues

 

 

12,187

 

 

 

6,414

 

 

 

33,698

 

 

 

17,394

 

Gross profit

 

 

14,172

 

 

 

15,091

 

 

 

50,801

 

 

 

33,108

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development, net

 

 

4,278

 

 

 

2,199

 

 

 

12,023

 

 

 

7,327

 

Clinical operations

 

 

1,896

 

 

 

899

 

 

 

5,886

 

 

 

2,535

 

Sales and marketing

 

 

26,431

 

 

 

12,660

 

 

 

75,125

 

 

 

30,020

 

General and administrative

 

 

6,794

 

 

 

1,737

 

 

 

23,112

 

 

 

4,198

 

Total operating expenses

 

 

39,399

 

 

 

17,495

 

 

 

116,146

 

 

 

44,080

 

Operating loss

 

 

(25,227

)

 

 

(2,404

)

 

 

(65,345

)

 

 

(10,972

)

Financial income (expense), net

 

 

26,743

 

 

 

(285

)

 

 

23,700

 

 

 

(254

)

Income (loss) before taxes on income

 

 

1,516

 

 

 

(2,689

)

 

 

(41,645

)

 

 

(11,226

)

Taxes on income

 

 

11

 

 

 

3

 

 

 

29

 

 

 

12

 

Net income (loss)

 

 

1,505

 

 

 

(2,692

)

 

 

(41,674

)

 

 

(11,238

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

 

1,505

 

 

 

(2,692

)

 

 

(41,674

)

 

 

(11,238

)

Net income (loss) per share (1):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

 

$

(0.20

)

 

$

(0.64

)

 

$

(0.84

)

Diluted

 

$

0.01

 

 

$

(0.20

)

 

$

(0.64

)

 

$

(0.84

)

Weighted average number of common shares (1):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

152,267,870

 

 

 

13,375,193

 

 

 

64,638,182

 

 

 

13,348,522

 

Diluted

 

 

165,179,012

 

 

 

13,375,193

 

 

 

64,638,182

 

 

 

13,348,522

 

 

(1) Prior period results have been adjusted to reflect the exchange of Old Talkspace’s common stock for Talkspace’s common stock at an exchange ratio of approximately 1.134140 in June 2021 as a result of the Business Combination. See Note 3, “Business Combination,” for further details.

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

9


 

TALKSPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) (Unaudited)

U.S. dollars in thousands (except share data)

Nine months ended September 30, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Stock (1)

 

 

Common Stock (1)

 

 

 

 

 

 

 

 

 

 

 

 

Number of Shares
Outstanding

 

 

Amount

 

 

Number of Shares
Outstanding

 

 

Amount

 

 

Additional paid-in
capital (1)

 

 

Accumulated
deficit

 

 

Total

 

Balance as of December 31, 2019

 

 

94,582,550

 

 

$

111,282

 

 

 

13,223,673

 

 

$

1

 

 

$

6,818

 

 

$

(86,418

)

 

$

(79,599

)

Exercise of stock options

 

 

 

 

 

 

 

 

122,004

 

 

*)

 

 

 

54

 

 

 

 

 

 

54

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

401

 

 

 

 

 

 

401

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,900

)

 

 

(7,900

)

Balance as of March 31, 2020

 

 

94,582,550

 

 

 

111,282

 

 

 

13,345,677

 

 

 

1

 

 

 

7,273

 

 

 

(94,318

)

 

 

(87,044

)

Exercise of stock options

 

 

 

 

 

 

 

 

29,516

 

 

*)

 

 

 

8

 

 

 

 

 

 

8

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

332

 

 

 

 

 

 

332

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(646

)

 

 

(646

)

Balance as of June 30, 2020

 

 

94,582,550

 

 

 

111,282

 

 

 

13,375,193

 

 

 

1

 

 

 

7,613

 

 

 

(94,964

)

 

 

(87,350

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

336

 

 

 

 

 

 

336

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,692

)

 

 

(2,692

)

Balance as of September 30, 2020

 

 

94,582,550

 

 

$

111,282

 

 

 

13,375,193

 

 

$

1

 

 

$

7,949

 

 

$

(97,656

)

 

$

(89,706

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Stock (1)

 

 

Common Stock (1)

 

 

 

 

 

 

 

 

 

 

 

 

Number of Shares
Outstanding

 

 

Amount

 

 

Number of Shares
Outstanding

 

 

Amount

 

 

Additional paid-in
capital

 

 

Accumulated
deficit

 

 

Total

 

Balance as of December 31, 2020

 

 

94,582,550

 

 

$

111,282

 

 

 

13,413,431

 

 

$

1

 

 

$

9,889

 

 

$

(108,788

)

 

 

(98,898

)

Exercise of stock options

 

 

 

 

 

 

 

 

684,923

 

 

 *)

 

 

 

797

 

 

 

 

 

 

797

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,513

 

 

 

 

 

 

1,513

 

Issuance of warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

125

 

 

 

 

 

 

125

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,738

)

 

 

(12,738

)

Balance as of March 31, 2021

 

 

94,582,550

 

 

 

111,282

 

 

 

14,098,354

 

 

 

1

 

 

 

12,324

 

 

 

(121,526

)

 

 

(109,201

)

Exercise of stock options

 

 

 

 

 

 

 

 

2,617,908

 

 

 *)

 

 

 

1,128

 

 

 

 

 

 

1,128

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,196

 

 

 

 

 

 

15,196

 

Common stock issued related to exercise of warrants

 

 

 

 

 

 

 

 

98,871

 

 

 *)

 

 

 

609

 

 

 

 

 

 

609

 

Acquisition of warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,945

 

 

 

 

 

 

27,945

 

Preferred stock conversion

 

 

(94,582,550

)

 

 

(111,282

)

 

 

94,582,550

 

 

 

10

 

 

 

111,272

 

 

 

 

 

 

111,282

 

Issuance of common stock in connection with Business Combination and PIPE offering, net of issuance costs

 

 

 

 

 

 

 

 

40,858,053

 

 

 

4

 

 

 

185,739

 

 

 

 

 

 

185,743

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(30,441

)

 

 

(30,441

)

Balance as of June 30, 2021

 

 

 

 

 

 

 

 

152,255,736

 

 

 

15

 

 

 

354,213

 

 

 

(151,967

)

 

 

202,261

 

Exercise of stock options

 

 

 

 

 

 

 

 

37,562

 

 

 *)

 

 

 

45

 

 

 

 

 

 

45

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,875

 

 

 

 

 

 

3,875

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,505

 

 

 

1,505

 

Issuance costs in connection with Business Combination and PIPE offering

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(803

)

 

 

 

 

 

(803

)

Balance as of September 30, 2021

 

 

 

 

$

 

 

 

152,293,298

 

 

$

15

 

 

$

357,330

 

 

$

(150,462

)

 

$

206,883

 

 

*) Represents an amount lower than $1

(1) Prior period results have been adjusted to reflect the exchange of Old Talkspace’s common stock for Talkspace’s common stock at an exchange ratio of approximately 1.134140 in June 2021 as a result of the Business Combination. See Note 3, “Business Combination,” for further details.

The accompanying notes are an integral part of the condensed consolidated financial statements.

10


 

TALKSPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

U.S. dollars in thousands