Health In Tech (HIT) Registration Filing summary

Company overview and business model

• Operates an insurance technology platform offering a digital marketplace for self-funded health benefits and stop-loss insurance, targeting small businesses with 5–150 employees.

• Provides rapid, AI-driven medical underwriting and quoting, enabling bindable proposals in about two minutes.

• Services delivered through three subsidiaries: Stone Mountain Risk (SMR), International Captive Exchange (ICE), and HI Card, with interdependent offerings.

• Revenue streams include program management fees (SMR), underwriting fees (ICE), and optional data/claims services (HI Card).

• As of September 30, 2024, active in 42 states, with 342 brokers, 13 TPAs, and 186 agencies using the platform.

Financial performance and metrics

• Revenue grew 232% from 2022 to 2023, reaching $19.2M in 2023; 5% year-over-year growth for the first nine months of 2024.

• Net income for 2023 was $4.0M, up from a loss of $0.2M in 2022; net income for the first nine months of 2024 was $0.8M.

• Adjusted EBITDA for 2023 was $4.8M (25.1% margin); for the first nine months of 2024, $1.8M (12.4% margin).

• As of September 30, 2024, cash and equivalents were $1.7M; total assets $9.7M; total liabilities $2.8M; equity $6.9M.

• Number of enrolled employees billed declined 17% to 17,594 as of September 30, 2024, but revenue increased due to higher program fees from A-rated carriers.

Use of proceeds and capital allocation

• Net proceeds of ~$8.33M (or $9.76M if over-allotment exercised) expected, based on a $4.50/share midpoint.

• Planned allocation: $2.5M for system enhancements, $4.0M for business expansion, $1.5M for sales/distribution, remainder for talent and working capital.

• Management has broad discretion over use of funds; no material acquisition commitments at this time.