Full Press Release Details
Health In Tech Announces Fourth Quarter and
Full Year 2024 Financial Results
Stuart, FL., March 17, 2025 /PRNewswire/ -
Health In Tech (Nasdaq: HIT), an Insurtech platform company backed by third-party AI technology, today announced its financial results
for the fourth quarter and full year ended December 31, 2024.
Financial Highlights for the Full Year 2024:
Financial Highlights for the Fourth Quarter
was a transformative year for Health In Tech as we successfully completed our IPO, expanded our product offerings, and made strategic
investments in technology and infrastructure." said Tim Johnson, CEO of Health In Tech. "These initiatives have strengthened
our foundation and positioned us for scalable growth. While we took a deliberate approach to moderating growth this year, we made significant
progress in enhancing our platform, improving cybersecurity, and developing innovative solutions tailored to meet the evolving needs of
Mr. Johnson continued: "In 2025, we are accelerating
execution and expanding our reach. We are set to fully launch our mid-sized business underwriting solution, extending coverage to employers
with more than 150 employees, expanding beyond our traditional focus on small businesses (5-150 employees). Our new Spec & Agg
stop-loss product further enhances efficiency by streamlining claims processing for TPAs and carriers. These advancements will drive revenue
growth and significantly expand our total addressable market."
"We are entering 2025 with strong momentum
and a clear path for growth. With the strategic groundwork laid in 2024, we anticipate continuing to invest in automation, and expand
into new markets, we remain committed to delivering innovative, value-driven solutions that transform self-funded healthcare." As
we scale, invest in automation, and enter new markets, we remain committed to delivering innovative, value-driven solutions that transform
self-funded healthcare" Tim concluded.
Recent Developments and Business Highlights
Conference Call Details
Health In Tech will host a conference call to
discuss the financial results for the fourth quarter and full year of 2024 on March 17, 2024, at 5:00 p.m. (ET). To participate in our
live conference call and webcast, please dial 1-888-346-8982 or 1-412-902-4272 (for international participants).
live audio webcast will be available via the Investor Relations page of Health In Tech's website at https://healthintech.com/.
A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and
will remain available for approximately 90 days.
Non-GAAP Financial Information
This release presents Adjusted EBITDA, a non-GAAP
financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted
in the United States of America ("GAAP"). A reconciliation of historical non-GAAP financial information to the most directly
comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.
Use of Forward-Looking Statements
Certain statements in this press release are forward-looking
statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition,
business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In
some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design,"
"target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate,"
"estimate," "believe," "continue," "predict," "project," "potential," "goal,"
or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's
future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual
results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements
because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control
and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement
reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions
relating to Health In Tech's operations, results of operations, growth strategy and liquidity.
About Health In Tech
Health In Tech (Nasdaq: "HIT") is
an Insurtech platform company backed by third-party AI technology, which offers a marketplace that aims to improve processes in the healthcare
industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the
underwriting, sales and service process for insurance companies, licensed brokers, and TPAs. Learn more at healthintech.com.
Health In Tech, Inc.
Consolidated Statements of Operations
| Three Months Ended December 31, | Fiscal Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Revenues from underwriting modeling (ICE) | $ | 1,697,080 | $ | 2,011,060 | $ | 6,649,271 | $ | 8,226,852 | ||||||||
| Revenues from fees | 3,207,484 | 3,205,223 | 12,841,635 | 10,924,650 | ||||||||||||
| SMR | 2,470,284 | 2,405,622 | 9,849,300 | 8,085,596 | ||||||||||||
| HI Card | 737,200 | 799,601 | 2,992,335 | 2,839,054 | ||||||||||||
| Total revenues | 4,904,564 | 5,216,283 | 19,490,906 | 19,151,502 | ||||||||||||
| Cost of revenues | 1,107,173 | 951,967 | 4,051,439 | 2,303,911 | ||||||||||||
| Gross profit | 3,797,391 | 4,264,316 | 15,439,467 | 16,847,591 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing expenses | 632,060 | 873,893 | 3,158,257 | 3,380,375 | ||||||||||||
| General and administrative expenses | 2,848,014 | 1,261,594 | 8,477,407 | 8,079,329 | ||||||||||||
| Research and development expenses | 633,653 | 673,444 | 2,813,899 | 2,004,796 | ||||||||||||
| Total operating expenses | 4,113,727 | 2,808,931 | 14,449,563 | 13,464,500 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 28,774 | 26,132 | 122,885 | 40,857 | ||||||||||||
| Interest expenses | - | (1,104 | ) | (495,000 | ) | (2,052 | ) | |||||||||
| Other income | 114,055 | - | 271,211 | - | ||||||||||||
| Other expense | 62,759 | - | - | - | ||||||||||||
| Total other income (expense), net | 205,588 | 25,028 | (100,904 | ) | 38,805 | |||||||||||
| Income (loss) before income tax expense | $ | (110,748 | ) | $ | 1,480,413 | $ | 889,000 | $ | 3,421,896 | |||||||
| Provision for income taxes | (33,404 | ) | (478,113 | ) | (218,523 | ) | (945,236 | ) | ||||||||
| Income (loss) from continuing operations, net of income taxes | (144,152 | ) | 1,002,300 | 670,477 | 2,476,660 | |||||||||||
| Income from discontinued operations, net of income taxes | - | - | - | 1,481,254 | ||||||||||||
| Net income (loss) | $ | (144,152 | ) | $ | 1,002,300 | $ | 670,477 | $ | 3,957,914 | |||||||
| Net income attributable to noncontrolling interests | - | - | - | $ | 1,481,254 | |||||||||||
| Net income (loss) attributable to common stockholders | $ | (144,152 | ) | $ | 1,002,300 | $ | 670,477 | $ | 2,476,660 |
Health In Tech, Inc.
Consolidated Balance Sheets
| December 31, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,849,248 | $ | 2,416,350 | ||||
| Accounts receivable, net | 1,647,103 | 2,235,666 | ||||||
| Other receivables | 500,252 | 1,681,100 | ||||||
| Deferred offering costs | - | 261,769 | ||||||
| Prepaid expenses and other current assets | 787,161 | 264,382 | ||||||
| Total current assets | 10,783,764 | 6,859,267 | ||||||
| Non-current assets | ||||||||
| Software | 3,962,461 | 3,561,385 | ||||||
| Loans receivable, net | 815,995 | 815,999 | ||||||
| Operating lease - right of use assets | 206,269 | 266,641 | ||||||
| Total non-current assets | 4,984,725 | 4,644,025 | ||||||
| Total assets | $ | 15,768,489 | $ | 11,503,292 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities | ||||||||
| Notes payable | $ | - | $ | 1,650,000 | ||||
| Accounts payable and accrued expenses | 1,858,840 | 2,620,965 | ||||||
| Income taxes payable | 205,253 | 451,946 | ||||||
| Operating lease liabilities - current | 66,881 | 58,482 | ||||||
| Total current liabilities | 2,130,974 | 4,781,393 | ||||||
| Non-current liabilities | ||||||||
| Deferred tax liabilities | 328,676 | 421,980 | ||||||
| Operating lease liabilities - non-current | 139,811 | 206,693 | ||||||
| Total non-current liabilities | 468,487 | 628,673 | ||||||
| Total liabilities | 2,599,461 | 5,410,066 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $0.001 par value; Class A Common stock 150,000,000 shares authorized, 42,914,870 and 29,269,358 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively | 42,915 | 29,269 | ||||||
| Common stock, $0.001 par value; Class B Common stock 50,000,000 shares authorized, 11,700,000 and 22,500,000 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively | 11,700 | 22,500 | ||||||
| Additional paid-in capital | 9,173,017 | 2,770,538 | ||||||
| Retained earnings | 3,941,396 | 3,270,919 | ||||||
| Total stockholders' equity | 13,169,028 | 6,093,226 | ||||||
| Total liabilities and stockholders' equity | $ | 15,768,489 | $ | 11,503,292 |
Health In Tech, Inc.
Consolidated Statements of Cash Flows
| Fiscal Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 670,477 | $ | 3,957,914 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Write-off of accounts receivable | 1,878 | - | ||||||
| Amortization expense | 541,141 | 339,300 | ||||||
| Deferred tax expenses (benefits) | (93,304 | ) | 133,980 | |||||
| Amortization of debt discount | 495,000 | - | ||||||
| Interest income | (63,996 | ) | (15,999 | ) | ||||
| Stock-based compensation expense | 468,489 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 586,685 | (1,279,324 | ) | |||||
| Other receivables | 1,180,848 | (1,678,823 | ) | |||||
| Other receivables-related party | - | 18,242 | ||||||
| Prepaid expenses and other current assets | (514,242 | ) | (211,097 | ) | ||||
| Operating lease right of use assets and liabilities, net | 1,889 | 4,259 | ||||||
| Accounts payable and accrued expenses | (851,963 | ) | 2,146,570 | |||||
| Income taxes payable | (246,693 | ) | 332,047 | |||||
| Assets and liabilities of discontinued operations | - | (2,218,191 | ) | |||||
| Net cash provided by operating activities | 2,176,209 | 1,528,878 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Development of software | (900,755 | ) | (1,144,361 | ) | ||||
| Funds provided for loans receivable | - | (800,000 | ) | |||||
| Interest received from loans receivable | 64,000 | - | ||||||
| Net cash used in investing activities | (836,755 | ) | (1,944,361 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions | 8,214,000 | - | ||||||
| Payments of deferred offering costs | (1,975,556 | ) | (261,769 | ) | ||||
| Payment of distributions | - | (44,351 | ) | |||||
| Proceeds from notes payable | - | 1,650,000 | ||||||
| Repayments of notes payable | (2,145,000 | ) | - | |||||
| Net cash provided by financing activities | 4,093,444 | 1,343,880 | ||||||
| Increase in cash and cash equivalents | 5,432,898 | 928,397 | ||||||
| Cash and cash equivalents, beginning of year | 2,416,350 | 1,487,953 | ||||||
| Cash and cash equivalents, end of year | 7,849,248 | 2,416,350 | ||||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | - | $ | 2,052 | ||||
| Cash paid for income taxes | $ | 558,521 | $ | 479,209 | ||||
| Summary of noncash investing and financing activities: | ||||||||
| Accrued deferred offering costs included in accounts payable and accrued expenses | $ | 39,839 | $ | - | ||||
| Accrued development of software included in accounts payable and accrued expenses | $ | 50,000 | $ | - | ||||
| Conversion of Series A convertible preferred stock to Class A common stock | $ | - | $ | 2,566,038 | ||||
| Reclassification of deferred offering costs to additional paid-in capital upon initial public offering | $ | 2,277,164 | $ | - |
Components of Operating Results
While we generate our revenue primarily from small
employers and insurance carriers, we grow our business primarily from offering solutions that streamline sales processes, enhance service
delivery, and reduce the sales cycle duration for TPAs, MGUs, and Brokers. We offer our services through our three subsidiaries. Program
services provided by SMR and MGU activities provided by ICE (including eDIYBS) are interdependent, as they cannot function effectively
without being combined. Services provided by HI Card is an optional add-on to our other services, and it cannot be offered on a standalone
basis. Brokers that utilize the program services on behalf of the small employer provided by SMR and MGU activities provided by ICE, are
not obligated to utilize our HI Card service. Currently ICE does not offer underwriting services as a standalone service. In the future,
we may consider offering it as a standalone service.
Cost of revenues primarily consists of infrastructure
costs to operate our platform such as hosting fees and fees paid to various third-party partners for access to their technology, services
and amortization expenses of our capitalized internal-use software related to our platform. We mainly outsource captive management services
and data services from the third-party companies. Our internal proprietary system seeks to consistently improve underwriting and services
results through machine learning and data feeds. The captive management activities include introducing new carriers, conducting due diligence
on carriers, conducting feasibility studies to determine the viability to be a stop-loss carrier on the platform, negotiating terms and
contracts, coordinating audit requests, managing relationship with unrelated carriers and their regulators and auditor firms to ensure
that our risk associated with our service offerings is minimized.
Sales and marketing expenses
Sales and marketing expenses primarily consist of
personnel-related costs including salaries, benefits and commissions cost for our sales and marketing personnel. Sales and marketing expenses
also include the costs for advertising, promotional and other marketing activities, as well as certain fees paid to various third-party
for sales and customer acquisition.
General and administrative expenses
General and administrative expenses primarily consist
of personnel-related costs and related expenses for our executives, finance, legal, human resources, technical support, and administrative
personnel as well as the costs associated with professional fees for external legal, accounting and other consulting services, insurance
Research and development expenses
Research and development expenses primarily consist
of personnel-related costs, including salaries and benefits for our research and development personnel. Additional expenses include costs
related to the software development, quality assurance, and testing of new technology, and enhancement of our existing platform technology.
Adjusted EBITDA represents our earnings from continuing
operations before net interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation
expense and public company readiness costs not deemed capitalizable. Adjusted EBITDA is not a measure calculated in accordance with United
States Generally Accepted Accounting Principles, or GAAP. We exclude certain non-recurring or non-cash items when calculating Adjusted
EBITDA, and we believe this approach provides a more meaningful measure by offering a clearer view of our underlying operational performance.
Financial Results Summary