Revenue Recognition

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

NOTE 4. REVENUE RECOGNITION

The Company is operating a virtual behavioral healthcare business that connects individuals and licensed therapists, psychologists and psychiatrists with an online platform for one-on-one therapy delivered via messaging, audio and video. Individuals access the company’s services through the Company’s website or mobile app.

The Company provides these services directly to individuals through a subscription plan. The Company also contracts with health plans and other enterprises to provide its services to individuals who are qualified to receive access to the Company’s services through the Company’s commercial arrangements.

The following table presents the Company’s revenues disaggregated by revenue source (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Revenues from sales to unaffiliated customers:
Consumers	$	18,631	$	16,923	$	58,286	$	42,208
Commercial		7,728		4,582		26,213		8,294
Total	$	26,359	$	21,505	$	84,499	$	50,502

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit loss. The allowance for credit loss is based on the Company’s assessment of historical collection experience, customer creditworthiness, current and future economic conditions and market conditions. The Company reviews the adequacy of the allowance for credit loss based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer, the financial condition of the customer, and the amount of any receivables in dispute. Accounts receivable deemed uncollectable are charged against the allowance for credit loss when identified. As of September 30, 2021, the allowance for credit losses mainly related to receivables from the Company’s health plan customers.

During the three months ended September 30, 2021, the Company recorded an increase in the allowance for credit losses of $3.4 million, with approximately 84% of this amount related to aged balances over 90 days outstanding. During the nine months ended September 30, 2021, the Company recorded an increase in the allowance for credit losses of $3.6 million, with approximately 27% of this amount related to aged balances prior to 2021.