Health In Tech, Inc.

Previous wording

As of March 31, 2025, we had clients in 41 states, with our services and platforms actively utilized by 459 brokers, 12 Third-Party Administrators (TPAs), and 221 additional third-party agencies. Our stop loss insurance policies for self-funded benefits plans were sold to 936 business clients with 24,307 employees. In addition, we continued to maintain profitability while driving revenue growth of 56% year over year from the first quarter of 2024 to the first quarter of 2025.

Current wording

As of June 30, 2025, we had clients in 41 states, with our services and platforms actively utilized by 520 brokers, 10 Third-Party Administrators (TPAs), and 248 additional third-party agencies. Our stop loss insurance policies for self-funded benefits plans were sold to 942 business clients with 24,839 employees. Notably, in the first half of 2025, we achieved 71% year-over-year revenue growth compared to the same period in 2024, while maintaining healthy profitability.

Previous wording

Our primary customers are small businesses, which can have anywhere from 5 to 150 employees. Our service fee is billed to such business customers on a per enrolled employee (EE) per month (PEPM) basis, which ranges from $2 to $35 based on selected services for each small business, and our underwriting revenue is a percentage of monthly premium paid on a PEPM basis. Accordingly, we use the number of EEs as a key indicator of our market penetration and growth, as compared to simply tracking the total number of our business customers, which can vary depending on the number of employees (and their family) enrolled at the business customer. The number of EEs is an employment based count, and not only would include a single employee, but also an employee’s family (spouse and/or children), if the family is also insured on the plan.

Current wording

Our primary customer base consists of small business with 5 to 150 employees, and we have expanded to include medium-sized enterprises with more than 150 employees. Our service fee is billed to such business customers on a per enrolled employee (EE) per month (PEPM) basis, which ranges from $2 to $35 depending on selected services – and generates underwriting revenue as a percentage of the monthly premium paid on a PEPM basis. Accordingly, we use the number of EEs as a key indicator of our market penetration and growth, as compared to simply tracking the total number of our business customers, which can vary depending on the number of employees (and their family) enrolled at the business customer. The number of EEs is an employment-based count, and not only would include a single employee, but also an employee’s family (spouse and/or children), if the family is also insured on the plan.

Previous wording

As of March 31, 2025, the number of enrolled employees reached 24,307, representing a 17% increase from 20,802 in the same period of 2024. This growth reflects strong market demand and the expanded adoption of our self-funded health plan solutions. The increase was also supported by early traction from our large-group AI-assisted underwriting platform, which entered beta testing in late 2024.

Current wording

As of June 30, 2025, the number of enrolled employees reached 24,839, representing a 30% increase from 19,101 in the same period of 2024. This growth reflects strong market demand and the expanded adoption of our self-funded health plan solutions.

Previous wording

Adjusted EBITDA represents our net income before net interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense. Adjusted EBITDA is not a measure calculated in accordance with United States Generally Accepted Accounting Principles, or GAAP. Please refer to “Results of Operations*”*in this item for a discussion of the limitations of adjusted EBITDA and reconciliations of adjusted EBITDA to net income, the most comparable GAAP measurements, respectively, for the three months ended March 31, 2025 and 2024. 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.

Current wording

Adjusted EBITDA represents our net income before net interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense. Adjusted EBITDA is not a measure calculated in accordance with United States Generally Accepted Accounting Principles, or GAAP. Please refer to “Results of Operations*”*in this item for a discussion of the limitations of adjusted EBITDA and reconciliations of adjusted EBITDA to net income, the most comparable GAAP measurements, respectively, for the three and six months ended June 30, 2025 and 2024. 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.

Previous wording

As of March 31, 2025, the balance of cash and cash equivalents were $7,575,037, remaining relatively stable compared to $7,849,248 as of December 31, 2024.

Current wording

As of June 30, 2025, the balance of cash and cash equivalents was $8,138,166, representing a modest increase compared to $7,849,248 as of December 31, 2024.

Previous wording

As of March 31, 2025, the balance of other receivables increased by $3,489,536 to $3,989,788, from $500,252 as of December 31, 2024. This increase was mainly attributable to the purchase of Deferred Administrative Surplus for $3,481,684 on March 18, 2025.

Current wording

As of June 30, 2025, the balance of other receivables increased by $3,354,582 to $3,854,834, from $500,252 as of December 31, 2024. This increase was mainly attributable to the purchase of Deferred Administrative Surplus for $3,481,684 on March 18, 2025.

Previous wording

As of March 31, 2025, the balance of software increased by $773,632 to $4,736,093, from $3,962,461 as of December 31, 2024. This increase was mainly attributable to a $909,615 investment in new software development, partially offset by a $135,983 increase in accumulated amortization for the three months ended March 31, 2025.

Current wording

As of June 30, 2025, the balance of software increased by $1,556,649 to $5,519,110, from $3,962,461 as of December 31, 2024. This increase was mainly attributable to a $1,828,615 investment in new software development, partially offset by a $271,966 increase in accumulated amortization for the six months ended June 30, 2025.

Previous wording

As of March 31, 2025, the balance of total liabilities increased by $4,569,948 to $7,169,409, from $2,599,461 as of December 31, 2024. This increase was mainly attributable to the growth in accounts payable and accrued expenses, resulting from a $2,281,684 payable for the purchase of Deferred Administrative Surplus in March 2025, as well as the expansion of business scale.

Current wording

As of June 30, 2025, the balance of total liabilities increased by $3,155,186 to $5,754,647, from $2,599,461 as of December 31, 2024. This increase was driven by a $631,682 payable related to the purchase of Deferred Administrative Surplus in March 2025, as well as the increased accounts payable and accrued expenses reflecting the expansion of our business scale. Notably, the first-half 2025 revenues have reached approximately 89% of full-year 2024 revenues, which led to higher liabilities in line with operational growth.

Previous wording

As of March 31, 2025, the balance of total stockholders’ equity increased by $991,763 to $14,160,791, from $13,169,028 as of December 31, 2024. This increase was mainly attributable to our net income and stock-based compensation. Please refer to our Condensed Consolidated Statements of Changes in Stockholders’ Equity for additional information.

Current wording

As of June 30, 2025, the balance of total stockholders’ equity increased by $3,254,575 to $16,423,603, from $13,169,028 as of December 31, 2024. This increase was mainly attributable to our net income and stock-based compensation. Please refer to our Condensed Consolidated Statements of Changes in Stockholders’ Equity for additional information.

Previous wording

Total revenues for the three months ended March 31, 2025 reached $8.0 million, up 56.4% from $5.1 million in the same period of 2024. This growth was primarily driven by strong demand for our new product offerings and encouraging feedback from our ongoing beta testing with mid-to-large employers.

Current wording

Total revenues for the three months ended June 30, 2025 reached $9.3 million, up 86.2% from $5.0 million in the same period of 2024. This growth was primarily driven by strong demand for our new product offerings, bolstered by positive feedback from ongoing beta testing with mid-to-large employers starting from the fourth quarter of 2024.

Previous wording

Revenues from fees increased 69.5% to $5.7 million, compared to $3.3 million for the same period in 2024. Revenues from fees continue to outpace revenues from underwriting modeling as more employers prioritize higher-quality coverage and enhanced service offerings.

Current wording

Revenues from fees increased 114.8% to $7.2 million, compared to $3.4 million for the same period in 2024. Revenues from fees continue to outpace revenues from underwriting modeling as more employers prioritize higher-quality coverage and enhanced service offerings.

Previous wording

Cost of revenues increased by $1.7 million to $2.7 million for the three months ended March 31, 2025, from $1.0 million for the three months ended March 31, 2024. As a percentage of revenue, cost of revenues increased to 33.2% for the three months ended March 31, 2025, from 19.3% for the same period in 2024.

Current wording

Cost of revenues increased by $2.0 million to $3.0 million for the three months ended June 30, 2025, from $1.0 million for the three months ended June, 2024. As a percentage of revenue, cost of revenues increased to 32.3% for the three months ended June 30, 2025, from 19.5% for the same period in 2024.

Previous wording

General and administrative expenses increased by $1.2 million to $3.2 million for the three months ended March 31, 2025, from $2.0 million for the three months ended March 31, 2024. As a percentage of revenue, general and administrative expenses increased slightly to 40.5% for the three months ended March 31, 2025, from 39.0% for the same period in 2024.

Current wording

General and administrative expenses increased by $2.0 million to $3.8 million for the three months ended June 30, 2025, from $1.8 million for the three months ended June 30, 2024. As a percentage of revenue, general and administrative expenses increased slightly to 40.5% for the three months ended June 30, 2025, from 36.3% for the same period in 2024.

Previous wording

Operations division — The operations division mainly consists of payroll, stock-based compensation expense and benefits expenses incurred related to our underwriting, claims management, operations development, and enrollment personnel.

Current wording

Operations division — The operations division mainly consists of payroll, stock-based compensation expense and benefits expenses incurred related to our underwriting, claims management, operations development, enrollment, nursing and strategic program development personnel.

Previous wording

The overall increase in general and administrative expenses for the three months ended March 31, 2025 was primarily attributable to increased public company costs of $0.6 million, including audit, legal, and investor relations expenses etc. And an additional $0.3 million was associated with stock-based compensation expenses.

Current wording

The overall increase in general and administrative expenses for the three months ended June 30, 2025 was primarily attributable to the increased public company costs of $0.8 million, including audit, legal, and investor relations expenses etc. An additional $0.3 million was associated with stock-based compensation expenses, and the remainder of the increase reflected higher personal-related expenses.

Previous wording

Research and development expenses decreased by $0.2 million to $0.5 million for the three months ended March 31, 2025, from $0.7 million for the three months ended March 31, 2024. As a percentage of revenue, research and development expenses decreased to 6.7% for the three months ended March 31, 2025, from 14.8% for the same period in 2024.

Current wording

Research and development expenses decreased by $0.1 million to $0.6 million for the three months ended June 30, 2025, from $0.7 million for the three months ended June 30, 2024. As a percentage of revenue, research and development expenses decreased to 6.3% for the three months ended June 30, 2025, from 14.0% for the same period in 2024.

Previous wording

The decrease was primarily attributable to the capitalization of development costs related to the buildout of eDIYBS 3.0. During the three months ended March 31, 2025, our IT remains fully focused on enhancing features for this next-generation platform.

Current wording

The decrease was primarily attributable to the capitalization of development costs related to the buildout of eDIYBS 3.0. During the three months ended June 30, 2025, our IT remained focused on enhancing features for this next-generation platform.

Previous wording

Income before income tax expense increased by $0.5 million to $0.7 million for the three months ended March 31, 2025, from $0.2 million for the three months ended March 31, 2024. This increase was primarily attributable to growth in our revenues, driven by our strong revenue growth and disciplined cost management.*** ***

Current wording

Income before income tax expense increased by $0.4 million to $0.8 million for the three months ended June 30, 2025, from $0.4 million for the three months ended June 30, 2024. This increase was primarily attributable to our strong revenue growth and disciplined cost management.*** ***

Previous wording

Provision for income taxes increased by $0.1 million to $0.2 million for the three months ended March 31, 2025, from $0.1 million for the three months ended March 31, 2024. The increase in tax benefit was primarily attributable to the increased income before income taxes, primarily driven by our strong revenue growth and disciplined cost management.*** ***

Current wording

Provision for income taxes increased by $0.1 million to $0.2 million for the three months ended June 30, 2025, from $0.1 million for the three months ended June 30, 2024. The increase in provision for income taxes was attributable to the increased income before income taxes, primarily driven by our strong revenue growth and disciplined cost management.*** ***

Previous wording

Adjusted EBITDA increased by $0.8 million to $1.2 million for the three months ended March 31, 2025, from $0.4 million for the three months ended March 31, 2024. As a percentage of revenue, adjusted EBITDA improved to 15.3% for the three months ended March 31, 2025, from 9.1% for the same period in 2024. The increase in adjusted EBITDA was primarily attributable to strong revenue growth, driven by strong demand for our new product offerings and encouraging early results from beta testing with mid-to-large employers.

Current wording

Adjusted EBITDA increased by $0.9 million to $1.6 million for the three months ended June 30, 2025, from $0.7 million for the three months ended June 30, 2024. As a percentage of revenue, adjusted EBITDA improved to 16.8% for the three months ended June 30, 2025, from 13.4% for the same period in 2024. The increase in adjusted EBITDA was primarily attributable to robust revenue growth, driven by strong demand for our new product offerings, bolstered by positive feedback from ongoing beta testing with mid-to-large employers starting from the fourth quarter of 2024.

Previous wording

This growth was fueled in part by a 17% increase in total billable enrolled employees, which rose to 24,307 as of March 31, 2025, compared to 20,802 in the prior-year period. Revenues from underwriting modeling increased 31.8% to $2.4 million, compared to $1.8 million for the same period in 2024, reflecting rising adoption of our solutions, including the early traction from our AI-backed underwriting solution targeting employers with over 150 employees.

Current wording

This growth was supported by a 30% increase in total billable enrolled employees, which rose to 24,839 as of June 30, 2025, compared to 19,101 in the same prior last year. Revenues from underwriting modeling increased 29.8% to $4.4 million, compared to $3.4 million for the same period in 2024, reflecting expanding adoption of our solutions.

Previous wording

Net cash provided by operating activities was $0.5 million for the three months ended March 31, 2025, compared to net cash used of $0.7 million for the same period in 2024. The increase was primarily due to the growth in revenues and process improvements and the automation of our accounts receivable (AR) system. Cash provided by operating activities for the three months ended March 31, 2025, principally resulted from our net income of $0.5 million, $1.3 million in adjustments for non-cash items primarily related to amortization, provision for potential revenue reduction and stock-based compensation expense, and offset by $1.3 million of cash used to fund changes in working capital, including an increase in accounts receivable of $0.4 million, an increase in other receivables of $3.5 million, an increase in prepaid expenses and other current assets of $1.0 million, an increase in accounts payable and accrued expenses of $3.4 million and an increase in income taxes payable of $0.2 million.

Current wording

Net cash provided by operating activities increased by $1.4 million to $2.0 million for the six months ended June 30, 2025, compared to $0.6 million for the same period in 2024. The increase was primarily due to the growth in revenues and process improvements and the automation of our accounts receivable (AR) system. Cash provided by operating activities for the six months ended June 30, 2025, principally resulted from our net income of $1.1 million, $2.3 million in adjustments for non-cash items primarily related to amortization, provision for refund liability and stock-based compensation expense, and offset by $1.4 million of cash used to fund changes in working capital, including a decrease in accounts receivable of $0.4 million, an increase in other receivables of $3.4 million, an increase in prepaid expenses and other current assets of $0.2 million, an increase in long-term prepaid expenses of $0.4 million, an increase in accounts payable and accrued expenses of $2.3 million and a decrease in income taxes payable of $0.1 million.

Previous wording

Cash used in operating activities for the three months ended March 31, 2024, principally resulted from our net income of $0.1 million, $0.2 million in adjustments for non-cash items primarily related to amortization and amortization of debt discount, and offset by $1.0 million of cash used to fund changes in working capital, including a decrease in accounts receivable of $0.2 million, a decrease in other receivables of $0.2 million, a decrease in accounts payable and accrued expenses of $1.5 million and an increase in income taxes payable of $0.1 million.

Current wording

Cash provided by operating activities for the six months ended June 30, 2024, principally resulted from our net income of $0.4 million, $0.5 million in adjustments for non-cash items primarily related to amortization and amortization of debt discount, and offset by $0.3 million of cash used to fund changes in working capital, including a decrease in accounts receivable of $0.8 million, a decrease in other receivables of $0.6 million, a decrease in accounts payable and accrued expenses of $1.6 million and a decrease in income taxes payable of $0.1 million.

Previous wording

Cash used in investing activities increased by $0.6 million to $0.7 million for the three months ended March 31, 2025, compared to $0.1 million for the same period in 2024. The primary use of cash used in investing activities for the three months ended March 31, 2025 and 2024 were both related to the development of our internal-use software, reflecting our continued investment in enhancing all our technology platforms.

Current wording

Cash used in investing activities increased by $1.4 million to $1.6 million for the six months ended June 30, 2025, compared to $0.2 million for the same period in 2024. The primary use of cash used in investing activities for the six months ended June 30, 2025 and 2024 were both related to the development of our internal-use software, reflecting our continued investment in enhancing all our technology platforms.

Previous wording

Net cash used in financing activities was $0.1 million for the three months ended March 31, 2025, compared to $0.2 million for the same period in 2024. The primary use of cash used in financing activities for the three months ended March 31, 2025 and 2024 were both related to the payments of deferred offering cost for our IPO.

Current wording

Cash used in financing activities was $0.1 million for the six months ended June 30, 2025, compared to $0.6 million for the same period in 2024. The primary use of cash used in financing activities for the six months ended June 30, 2025 and 2024 were both related to the payments of deferred offering cost for our public offering.