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, compared to traditional 12–14 day cycles.

• Services are delivered through three subsidiaries: Stone Mountain Risk (SMR), International Captive Exchange (ICE), and HI Card, with SMR and ICE interdependent and HI Card as an optional add-on.

• Platform leverages machine learning and big data analytics, with proprietary technology and a modular approach to expand into medium-sized businesses (150–500 employees).

• Revenue is generated from service fees (per employee per month) and underwriting fees (percentage of premium), with a network of brokers, TPAs, MGUs, and carriers.

Financial performance and metrics

• Revenue grew 232% from 2022 to 2023, reaching $19.2 million in 2023; revenue for the first nine months of 2024 was $14.6 million, up 4.7% year-over-year.

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

• Net income attributable to common stockholders was $2.5 million in 2023 and $0.8 million for the first nine months of 2024.

• As of September 30, 2024, cash and cash equivalents were $1.7 million, with total assets of $9.7 million and total liabilities of $2.8 million.

• 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 from the IPO (estimated at $8.33 million) will fund system enhancements, new functionalities, business expansion, sales and distribution channel growth, talent development, and working capital.

• Management has broad discretion over use of proceeds, with no specific material acquisitions or investments currently planned.