American Well Corp Commitments Disclosure
15. Commitments and Contingencies
Leases
The Company’s primary lease represents the lease for its corporate headquarters in Boston, Massachusetts. The Company modified the corporate headquarter lease during the third quarter of 2021. Rent expense for the years ended December 31, 2025, 2024 and 2023 was $4,077, $3,746 and $4,292. The carrying value of the Company’s right-of-use assets are substantially concentrated in real estate as the Company primarily leases office space. The Company’s policy is not to record leases with an original lease term of one year or less on the consolidated balance sheets. The Company does not have any lease contracts with the option to purchase as of December 31, 2025.
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Years Ended December 31, |
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2025 |
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2024 |
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2023 |
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The components of lease cost under ASC 842 were as follows: |
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Operating lease cost |
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$ |
3,147 |
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$ |
3,390 |
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$ |
3,495 |
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Short-term lease cost |
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— |
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— |
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— |
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Variable lease cost |
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— |
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— |
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— |
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Total lease cost |
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$ |
3,147 |
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$ |
3,390 |
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$ |
3,495 |
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Years Ended December 31, |
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2025 |
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2024 |
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2023 |
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Supplemental cash flow information: |
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Cash paid for amounts included in measurement |
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Operating cash flows from operating leases |
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$ |
3,590 |
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$ |
3,690 |
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$ |
3,527 |
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Non-cash lease activity: |
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Right-of-use lease assets obtained in exchange for new operating lease liability: |
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Operating leases |
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$ |
— |
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$ |
— |
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$ |
— |
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As of December 31, |
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2025 |
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2024 |
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Supplemental balance sheet information related to |
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Operating leases |
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Operating lease right-of-use assets |
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$ |
3,930 |
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$ |
7,203 |
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Total operating right-of-use lease assets |
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$ |
3,930 |
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$ |
7,203 |
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Operating lease liabilities, current |
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3,632 |
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3,690 |
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Operating lease liabilities, net of current portion |
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892 |
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4,511 |
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Total operating lease liabilities |
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$ |
4,524 |
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$ |
8,201 |
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Weighted-average remaining lease term (in years) |
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1.2 years |
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2.2 years |
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Weighted-average discount rate |
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1.1 |
% |
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1.2 |
% |
As of December 31, 2025, minimum future lease payments for these operating leases were as follows:
Years ending December 31, |
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2026 |
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$ |
3,660 |
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2027 |
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893 |
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2028 |
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— |
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2029 |
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— |
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2030 |
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— |
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Thereafter |
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— |
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Total lease payments |
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$ |
4,553 |
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Less imputed interest |
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(29 |
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Total present value of lease liabilities |
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$ |
4,524 |
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Indemnification
The Company’s arrangements generally include certain provisions for indemnifying clients against third-party claims asserting infringement of certain intellectual property rights in the ordinary course of business. The Company also regularly indemnifies clients 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 client. In addition, the Company indemnifies its officers, directors and certain key employees while they are serving in good faith in their capacities. Through December 31, 2025, there have been no claims under any indemnification provisions.
Litigation
From time to time, and in the ordinary course of business, the Company may be subject to various claims, charges, and litigation. As of December 31, 2025 and 2024, the Company did not 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.
Historical Timeline
| Fiscal Year | Filed | |
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| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 15, 2024 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.