Health In Tech (HIT) Registration Filing summary

Company overview and business model

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

• Utilizes AI-driven underwriting and quoting systems (eDIYBS) to streamline plan customization, quoting, and sales for brokers and TPAs, producing bindable quotes in about two minutes.

• Offers services through three subsidiaries: Stone Mountain Risk (SMR), International Captive Exchange (ICE), and HI Card, with integrated solutions for plan design, underwriting, and claims management.

• Revenue is generated from service fees (per employee per month) and underwriting fees, with a focus on digital process automation and cost savings for low-risk small employers.

• As of December 31, 2023, served 1,002 business clients with 21,213 employees in 42 states, leveraging a network of 192 brokers, 17 TPAs, and 118 agencies.

Financial performance and metrics

• Fiscal year 2023 revenue was $19.2 million, up 232% from $5.8 million in 2022; gross profit for 2023 was $16.8 million.

• Net income for 2023 was $4.0 million, compared to a net loss of $0.24 million in 2022; adjusted EBITDA for 2023 was $4.8 million (25.1% of revenue).

• For the six months ended June 30, 2024, revenue was $10.1 million, with net income of $0.44 million and adjusted EBITDA of $1.1 million.

• Cost of revenues increased in 2023 due to higher captive management and software amortization costs; operating expenses rose with headcount and public company readiness costs.

• As of June 30, 2024, cash and cash equivalents were $2.16 million, with total assets of $10.8 million and total stockholders' equity of $6.5 million.

Use of proceeds and capital allocation

• Net proceeds from the IPO (estimated at $8.18 million) will be used for system enhancements and new functionalities ($2.5M), business expansion ($4.0M), sales and distribution channel growth ($1.5M), talent development, and general corporate purposes.

• Management has broad discretion over the use of proceeds; pending use, funds may be invested in short-term, investment-grade instruments.