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 underwriting and quoting, enabling bindable proposals in about two minutes, streamlining a process that traditionally takes up to two weeks.

• 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.

• Revenue is generated from service fees (per employee per month) and underwriting fees (percentage of premium), with a focus on digital automation and process simplification.

• As of June 30, 2024, active in 42 states, with 242 brokers, 16 TPAs, and 159 agencies, serving 953 business clients and 19,101 enrolled employees.

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, up from $1.3 million in 2022.

• For the six months ended June 30, 2024, revenue was $10.1 million (up 16.5% year-over-year), with net income of $0.44 million and adjusted EBITDA of $1.1 million.

• Cost of revenues increased in 2023 and 2024 due to higher captive management and software amortization costs; operating expenses rose with headcount and technology investment.

• 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, or $9.61 million if the over-allotment is exercised) will fund system enhancements, new functionalities, business expansion, sales and distribution growth, talent development, and working capital.

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