Group 1: Job Opportunities - High-paying positions in the instrument industry are being highlighted, including roles such as nuclear materials sales representative, CRO industry expansion manager, and application engineer for online analysis instruments [2][3][4] - Specific job requirements include educational qualifications, industry experience, and technical skills relevant to the positions, such as knowledge of nuclear power projects, CRO operations, and online monitoring instruments [2][3][4][5][6][7][8] Group 2: Salary Ranges - Salary ranges for various positions are provided, with roles like nuclear materials sales representative offering 15k-20k per month, while CRO industry expansion manager positions range from 15k-30k [2][3] - Other positions, such as application engineers and sales engineers, have varying salary ranges, indicating a competitive compensation structure within the industry [4][9][10] Group 3: Required Skills and Experience - Most positions require a bachelor's degree or higher, with specific fields of study preferred, such as nuclear engineering, biotechnology, and mechanical engineering [2][3][4][5][6][11] - Experience in relevant industries is emphasized, with many roles requiring 2-8 years of experience, particularly in sales, technical support, or product management [3][4][11][12][15][16]

Core Insights - The article highlights high-paying job opportunities in the instrumentation sector, specifically targeting sales and engineering positions in various companies [2][3][4][5][6][7][8][9][10][11][12][13][14][15]. Job Opportunities - Agilent is seeking an Application Engineer for gas chromatography in Shanghai, offering a salary range of 25k-35k with 13 months of pay. Candidates should have over 7 years of relevant experience [2]. - Hitachi is looking for a Market Engineer for electron microscopes in Guangzhou, with a salary range of 10k-30k and 12 months of pay. A master's or doctoral degree and 2 years of experience are required [3]. - Anton Paar is hiring a Sales Engineer for laboratory instruments in Harbin, with a negotiable salary. Candidates need at least 3 years of industry experience and a relevant educational background [4]. - Baoche Bio is offering a position for a Mass Spectrometer Sales role in Hangzhou, with a salary range of 8k-12k and 12 months of pay [5]. - Pano is looking for a Sales Engineer in Hangzhou, with a salary range of 8k-12k and 13 months of pay [7]. - Shenghan is hiring an Application Development Expert in Qingdao, with a salary range of 12k-25k and 16 months of pay. A master's degree in analytical chemistry is required [9]. - Innovation Power is seeking a Quality Assurance Validation Expert in Beijing, with a salary range of 10k-15k and 12 months of pay. Experience in the pharmaceutical industry is necessary [10]. - Leibert Tech is looking for an ICP-MS Application Engineer in Shanghai, with a salary range of 8k-13k and 12 months of pay [11]. - Kailai is hiring a Chemical Analysis Engineer in Qingdao, with a salary range of 10k-15k and 14 months of pay [13]. - Haisi is seeking a Water Treatment Process Engineer in Shanghai, with a salary range of 10k-15k and 13 months of pay. Candidates should have over 3 years of experience in related fields [15].

[Special Note Regarding Forward-Looking Statements](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) [Forward-Looking Statements Overview](index=4&type=section&id=Forward-Looking%20Statements%20Overview) This section cautions that forward-looking statements are based on current expectations and projections, subject to risks and uncertainties, and actual results may differ materially - Forward-looking statements are identified by terms such as **'believes,' 'estimates,' 'anticipates,' 'expects,' 'intends,' 'plans,' 'may,' 'will,' 'potential,' 'projects,' 'predicts,' 'continue,' or 'should,'** or their negative variations[9](index=9&type=chunk) - These statements are based on current expectations and projections about future events and trends that may affect financial condition, results of operations, business strategy, and financial needs[10](index=10&type=chunk) - They are subject to known and unknown risks, uncertainties, and assumptions, including those described in the 'Risk Factors' section, and actual results may differ materially and adversely[10](index=10&type=chunk) - Specific areas covered include financial performance, funding, system development, sales/marketing, personnel, customer attraction, product development, competition, cybersecurity, AI risks, regulatory compliance, intellectual property rights, and future stock prices[11](index=11&type=chunk)[15](index=15&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Health In Tech, Inc.'s unaudited condensed consolidated financial statements for the periods ended June 30, 2025, and December 31, 2024, along with accompanying notes - The financial statements are unaudited and prepared in accordance with GAAP and SEC rules for interim financial information[35](index=35&type=chunk) - The section includes Condensed Consolidated Balance Sheets, Statements of Operations, Statements of Changes in Stockholders' Equity, and Statements of Cash Flows[7](index=7&type=chunk) - Notes to the financial statements provide context on the company's organization, significant accounting policies, loans receivable, stockholders' equity, commitments and contingencies, income taxes, and stock-based compensation[7](index=7&type=chunk)[32](index=32&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) Key Balance Sheet Data | Metric | June 30, 2025 | December 31, 2024 | Change | Change (%) | | :-------------------------------- | :-------------- | :---------------- | :----- | :--------- | | Total assets | $22,178,250 | $15,768,489 | +$6,409,761 | +40.65% | | Total liabilities | $5,754,647 | $2,599,461 | +$3,155,186 | +121.38% | | Total stockholders' equity | $16,423,603 | $13,169,028 | +$3,254,575 | +24.71% | | Cash and cash equivalents | $8,138,166 | $7,849,248 | +$288,918 | +3.68% | | Accounts receivable, net | $1,281,131 | $1,647,103 | -$365,972 | -22.22% | | Other receivables | $3,854,834 | $500,252 | +$3,354,582 | +670.58% | | Software | $5,519,110 | $3,962,461 | +$1,556,649 | +39.29% | | Accounts payable and accrued expenses | $4,327,475 | $1,858,840 | +$2,468,635 | +132.86% | | Other current liabilities | $955,743 | — | +$955,743 | N/A | - The increase in total assets was mainly driven by a significant rise in other receivables due to the purchase of Deferred Administrative Surplus and increased software capitalization[177](index=177&type=chunk)[178](index=178&type=chunk) - Total liabilities increased substantially, primarily due to a payable related to the Deferred Administrative Surplus purchase and higher accounts payable reflecting business expansion[179](index=179&type=chunk) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Key Statements of Operations Data | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $9,313,849 | $5,002,490 | $17,328,833 | $10,127,421 | | Cost of revenues | $3,003,979 | $974,727 | $5,663,564 | $1,964,638 | | Gross profit | $6,309,870 | $4,027,763 | $11,665,269 | $8,162,783 | | Total operating expenses | $5,584,800 | $3,492,827 | $10,459,541 | $7,295,425 | | Net income | $630,631 | $338,007 | $1,129,223 | $438,543 | | Basic EPS | $0.01 | $0.01 | $0.02 | $0.01 | | Diluted EPS | $0.01 | $0.01 | $0.02 | $0.01 | - Total revenues increased by **86.2%** for the three months ended June 30, 2025, and **71.1%** for the six months ended June 30, 2025, compared to the respective prior periods[181](index=181&type=chunk)[196](index=196&type=chunk) - Net income increased by **86.6%** for the three months ended June 30, 2025, and **157.5%** for the six months ended June 30, 2025, compared to the respective prior periods[23](index=23&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Stockholders' Equity Changes | Metric | As of Dec 31, 2024 | As of June 30, 2025 | | :-------------------------- | :----------------- | :----------------- | | Total stockholders' equity | $13,169,028 | $16,423,603 | | Class A Common Stock Shares | 42,914,870 | 44,679,664 | | Class B Common Stock Shares | 11,700,000 | 11,700,000 | - Total stockholders' equity increased by **$3,254,575** from December 31, 2024, to June 30, 2025, primarily due to net income and stock-based compensation[180](index=180&type=chunk) - A **1.5-for-1 stock split** was effected on June 4, 2024, with all share and per share data retroactively adjusted[19](index=19&type=chunk)[107](index=107&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Key Cash Flow Data | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Operating activities | $2,008,629 | $586,329 | | Investing activities | $(1,613,372) | $(227,356) | | Financing activities | $(106,339) | $(612,120) | | Increase (decrease) in cash | $288,918 | $(253,147) | | Cash and cash equivalents, end of period | $8,138,166 | $2,163,203 | - Net cash provided by operating activities increased by **$1.4 million (242%)** to **$2.0 million** for the six months ended June 30, 2025, compared to **$0.6 million** in the prior year, driven by revenue growth and AR system automation[214](index=214&type=chunk) - Cash used in investing activities increased by **$1.4 million (592%)** to **$1.6 million** for the six months ended June 30, 2025, primarily due to increased investment in internal-use software development[216](index=216&type=chunk) - Cash used in financing activities decreased by **$0.5 million (82.6%)** to **$0.1 million** for the six months ended June 30, 2025, mainly due to lower payments of deferred offering costs[217](index=217&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The notes provide detailed information on the company's organization, significant accounting policies, and specific financial items, including revenue recognition, stock-based compensation, and recent accounting pronouncements[32](index=32&type=chunk) - The company completed its Initial Public Offering (IPO) on **December 24, 2024**, issuing **2,300,000 shares of Class A common stock at $4.00 per share**, receiving net proceeds of **$8,214,000**[34](index=34&type=chunk) - The company manages its business activities as a single operating and reportable segment[38](index=38&type=chunk) [1. Organization](index=11&type=section&id=1.%20Organization) - Health in Tech, Inc. (HIT) was incorporated in November 2021 in Nevada, consolidating three subsidiaries: Stone Mountain Risk, LLC (SMR), Health Intelligence Card, LLC (Hi Card), and International Captive Exchange, LLC (ICE)[33](index=33&type=chunk) - The company completed its Initial Public Offering (IPO) on **December 24, 2024**, issuing **2,300,000 shares of Class A common stock at $4.00 per share**, with net proceeds of **$8,214,000**[34](index=34&type=chunk) [2. Summary of Significant Accounting Policies](index=11&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) - The company's financial statements are prepared in accordance with GAAP and SEC rules for interim financial information, with certain disclosures condensed or omitted[35](index=35&type=chunk) - Revenue recognition follows ASC 606, with revenue generally recognized over the defined contractual term as performance obligations are satisfied[68](index=68&type=chunk)[80](index=80&type=chunk) - For the six months ended June 30, 2025, one stop-loss insurance carrier (Carrier A) represented **28.3% of total revenues** and **32.8% of accounts receivable**[42](index=42&type=chunk) - Software development costs for internal-use software (Hi-Card, eDIYBS) are capitalized and amortized over an expected three-year period; **$1,828,615** was capitalized in the six months ended June 30, 2025[63](index=63&type=chunk) - A refund liability of **$955,743** was recorded as of June 30, 2025, related to estimated contra revenue from a variable consideration clause with one carrier, assessed based on updated information from policies completing their run-out stage[88](index=88&type=chunk) [3. Loans Receivable, Net](index=24&type=section&id=3.%20Loans%20Receivable%2C%20Net) - The company has an unsecured Promissory Note Agreement with Kang Youle Limited for **$800,000 principal**, bearing **8% interest per annum**, maturing October 10, 2026[105](index=105&type=chunk) - Accrued interest due and receivable was **$47,993** as of June 30, 2025[105](index=105&type=chunk) - The loan is considered a strategic investment to maximize risk-adjusted return and promote shareholder wealth, provided to an independent third party with access to international insurance sectors[106](index=106&type=chunk) [4. Stockholders' Equity](index=24&type=section&id=4.%20Stockholders'%20Equity) - A **1.5-for-1 stock split** of common stock was effected on June 4, 2024, with all share and per share information retroactively adjusted[107](index=107&type=chunk) - On August 9, 2024, **10,800,000 shares of Class B Common Stock** were converted into Class A Common Stock on a one-to-one basis[107](index=107&type=chunk) - The company completed its IPO on **December 24, 2024**, issuing **2,300,000 shares of Class A Common Stock at $4.00 per share**, generating net proceeds of **$8,214,000**[108](index=108&type=chunk) - As of June 30, 2025, **44,679,664 shares of Class A Common Stock** and **11,700,000 shares of Class B Common Stock** were issued and outstanding[115](index=115&type=chunk) - Holders of Class B Common Stock are entitled to **ten votes per share**, while Class A Common Stock holders are entitled to **one vote per share**[116](index=116&type=chunk) [5. Commitments and Contingencies](index=26&type=section&id=5.%20Commitments%20and%20Contingencies) - The company is not currently a party to any legal proceedings that would have a material adverse effect on its business or financial condition[118](index=118&type=chunk) - The principal commitments consist of obligations under a five-year operating lease for its corporate headquarters, commencing November 2022[119](index=119&type=chunk) Undiscounted Lease Liabilities (as of June 30, 2025) | Period | Amount | | :--- | :--- | | Less than 1 year | $85,046 | | 1 – 3 years | $109,657 | | Total undiscounted lease liabilities | $194,703 | [6. Income Taxes](index=27&type=section&id=6.%20Income%20Taxes) Income Tax Provision | Period | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Income tax expense | $202,637 | $63,268 | $388,468 | $154,466 | - The effective tax rate for the six months ended June 30, 2025, was **25.60%**, differing from the U.S. federal statutory rate of **21%** primarily due to state taxes (net of federal benefit) and permanent differences[126](index=126&type=chunk) - Net deferred tax liabilities were **$262,129** as of June 30, 2025, compared to **$328,676** as of December 31, 2024[124](index=124&type=chunk) [7. Stock-Based Compensation](index=28&type=section&id=7.%20Stock-Based%20Compensation) - The company has two equity incentive plans: the **2022 Plan** (governing **1,145,182 restricted stock** and **2,320,505 options outstanding** as of June 30, 2025) and the **2024 Plan** (adopted December 2024, with **1,288,000 unrestricted stock** and **933,954 restricted stock awards** granted as of June 30, 2025)[129](index=129&type=chunk)[130](index=130&type=chunk) - Stock-based compensation expense recognition began upon the completion of the IPO on **December 24, 2024**, as the IPO was a key vesting condition for many awards[94](index=94&type=chunk)[132](index=132&type=chunk) - As of June 30, 2025, unrecognized compensation cost for non-vested service-based RSAs was **$482,998** (expected to be recognized over **0.8 years**), and for non-vested service-based stock options was **$110,262** (expected over **0.9 years**)[135](index=135&type=chunk)[138](index=138&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of Health In Tech's business, recent developments, key performance drivers, and a detailed analysis of its financial results for the three and six months ended June 30, 2025, compared to 2024 - Health in Tech is an insurance technology platform company that simplifies sales, service processes, and reduces sales cycle time for third-party administrators and brokers[140](index=140&type=chunk) - As of June 30, 2025, the company had clients in **41 states**, with services utilized by **520 brokers, 10 TPAs, and 248 additional third-party agencies**, serving **942 business clients with 24,839 employees**[144](index=144&type=chunk) - The company achieved **71% year-over-year revenue growth** in the first half of 2025 while maintaining healthy profitability[144](index=144&type=chunk) - Recent developments include strategic partnerships with Verdegard Administrators, Unified Health Plans, HILB Group, and Baily Insurance, and the appointment of former U.S. Ambassador Edward T. McMullen Jr. to its advisory board[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) [Overview](index=30&type=section&id=Overview) - Health in Tech (HIT) is an insurance technology platform that aims to improve healthcare industry processes through vertical integration, simplification, and automation, streamlining underwriting, sales, and service for insurance companies, brokers, and TPAs[140](index=140&type=chunk) - The marketplace offers customizable self-funded benefits plans and stop-loss insurance, enabling quick medical underwriting and bindable quotes, typically within two minutes[141](index=141&type=chunk)[142](index=142&type=chunk) - The platform aims to deliver meaningful cost savings for low-risk, small employers and time savings for employers, brokers, TPAs, and carriers through digital medical underwriting and technology leverage[143](index=143&type=chunk) [Recent Developments](index=31&type=section&id=Recent%20Developments) - Partnerships include Verdegard Administrators (MedImpact) to reduce costs for small businesses, Unified Health Plans to bring healthcare insurance solutions to Kansas businesses, HILB Group to co-develop and distribute self-funded health benefit solutions, and Baily Insurance for faster underwriting, administration, and scalability[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Edward T. McMullen Jr., former U.S. Ambassador, was appointed to the advisory board on **April 30, 2025**, to support efforts in modernizing healthcare insurance infrastructure and advocating for efficient solutions[151](index=151&type=chunk) [Key Factors Affecting our Performance](index=31&type=section&id=Key%20Factors%20Affecting%20our%20Performance) - The company's success depends on its ability to retain and expand its network of brokers, TPAs, MGUs, and other third-party agents by providing innovation, client experience, competitive pricing, and quality providers[152](index=152&type=chunk) - Business growth is reliant on collaborating with diverse insurance carriers to expand product and service offerings and introduce innovative insurance products[153](index=153&type=chunk) - Accurate underwriting procedures are critical to avoid increased costs, pricing, and reputational harm to the eDIYBS platform[154](index=154&type=chunk)[155](index=155&type=chunk) - Continuous investment in technology and innovation is crucial for driving advancements in automation and enhancing operational efficiency[156](index=156&type=chunk) [Seasonality](index=32&type=section&id=Seasonality) - The business is generally affected by seasonal patterns of enrollment and medical expenses, with underwriting and quoting platform usage peaking around December and January due to health plan renewals[157](index=157&type=chunk) - Rapid growth has made seasonal fluctuations less detectable, but they may become more pronounced if the growth rate slows[157](index=157&type=chunk) [Key Financial and Operating Performance Metrics](index=32&type=section&id=Key%20Financial%20and%20Operating%20Performance%20Metrics) - The company monitors revenues, cost of revenues, operating expenses, and the number of enrolled employees (EEs) billed as key performance metrics[158](index=158&type=chunk)[159](index=159&type=chunk) Number of Enrolled Employees (EEs) Billed | Metric | June 30, 2025 | June 30, 2024 | Period-to-Period Change | Percentage Change | | :-------------------------- | :-------------- | :-------------- | :---------------------- | :---------------- | | Number of EEs billed (End of period) | 24,839 | 19,101 | 5,738 | 30% | - Adjusted EBITDA is utilized as a non-GAAP measure, calculated as net income before net interest expense, taxes, depreciation, amortization, and stock-based compensation, to provide a clearer view of underlying operational performance[162](index=162&type=chunk) [Components of Operating Results](index=33&type=section&id=Components%20of%20Operating%20Results) - Revenue is primarily generated from service fees (SMR and HI Card) and underwriting fees (ICE), with SMR and ICE services being interdependent[163](index=163&type=chunk) - SMR (Stone Mountain Risk) acts as a program manager for customized self-funded benefits programs for small businesses, generating revenue from a set fee charged per enrolled employee (EE) per month (PEPM)[163](index=163&type=chunk) - ICE (International Captive Exchange) develops and maintains underwriting models and risk services for insurance companies (Carriers), with revenue derived as a percentage of the premium received[163](index=163&type=chunk) - HI Card (Health Intelligence Card) provides optional medical claims access data and claims negotiation services to SMR's program members, generating revenue from a set PEPM fee[163](index=163&type=chunk) Revenue Breakdown by Subsidiary | Subsidiary | 3 Months Ended June 30, 2025 | % of Revenue (2025) | 3 Months Ended June 30, 2024 | % of Revenue (2024) | 6 Months Ended June 30, 2025 | % of Revenue (2025) | 6 Months Ended June 30, 2024 | % of Revenue (2024) | | :--------- | :----------------------------- | :------------------ | :----------------------------- | :------------------ | :----------------------------- | :------------------ | :----------------------------- | :------------------ | | ICE | $2,090,576 | 22.4% | $1,639,105 | 32.8% | $4,442,560 | 25.6% | $3,423,740 | 33.8% | | SMR | $7,223,273 | 77.6% | $2,595,545 | 51.9% | $12,886,273 | 74.4% | $5,128,467 | 50.6% | | HI Card | — | —% | $767,840 | 15.3% | — | —% | $1,575,214 | 15.6% | | Total | $9,313,849 | 100.0% | $5,002,490 | 100.0% | $17,328,833 | 100.0% | $10,127,421 | 100.0% | [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Consolidated Statements of Operations Summary | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $9,313,849 | $5,002,490 | $17,328,833 | $10,127,421 | | Gross profit | $6,309,870 | $4,027,763 | $11,665,269 | $8,162,783 | | Total operating expenses | $5,584,800 | $3,492,827 | $10,459,541 | $7,295,425 | | Net income | $630,631 | $338,007 | $1,129,223 | $438,543 | | Adjusted EBITDA | $1,569,016 | $669,723 | $2,797,227 | $1,136,932 | - Adjusted EBITDA increased significantly, reaching **$1.6 million** for Q2 2025 (**16.8% of revenue**) and **$2.8 million** for H1 2025 (**16.1% of revenue**), up from **$0.7 million (13.4%)** and **$1.1 million (11.2%)** respectively in the prior year periods[171](index=171&type=chunk)[195](index=195&type=chunk)[210](index=210&type=chunk) [Comparison of Three Months Ended June 30, 2025 and 2024](index=38&type=section&id=Comparison%20of%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) - Total revenues for Q2 2025 increased by **86.2%** to **$9.3 million**, driven by strong demand for new product offerings and a **30% increase** in billable enrolled employees[181](index=181&type=chunk)[182](index=182&type=chunk) - Revenues from fees (SMR) surged by **178.3%** to **$7.2 million**, while revenues from underwriting modeling (ICE) increased by **27.5%** to **$2.1 million**[181](index=181&type=chunk) - Cost of revenues increased by **$2.0 million** to **$3.0 million**, primarily due to higher captive management fees related to new products and channels[184](index=184&type=chunk)[185](index=185&type=chunk) - General and administrative expenses rose by **$2.0 million** to **$3.8 million**, mainly due to **$0.8 million** in public company costs and **$0.3 million** in stock-based compensation[187](index=187&type=chunk)[190](index=190&type=chunk) - Research and development expenses decreased by **$0.1 million** to **$0.6 million**, primarily due to the capitalization of development costs for eDIYBS 3.0[191](index=191&type=chunk)[192](index=192&type=chunk) [Comparison of Six Months Ended June 30, 2025 and 2024](index=41&type=section&id=Comparison%20of%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) - Total revenues for H1 2025 increased by **71.1%** to **$17.3 million**, driven by strong demand for new product offerings and a **30% increase** in billable enrolled employees[196](index=196&type=chunk)[197](index=197&type=chunk) - Revenues from fees (SMR) surged by **151.3%** to **$12.9 million**, while revenues from underwriting modeling (ICE) increased by **29.8%** to **$4.4 million**[196](index=196&type=chunk) - Cost of revenues increased by **$3.7 million** to **$5.7 million**, primarily due to higher captive management fees related to new products and channels[199](index=199&type=chunk)[200](index=200&type=chunk) - General and administrative expenses rose by **$3.2 million** to **$7.0 million**, mainly due to **$1.4 million** in public company costs and **$0.6 million** in stock-based compensation[202](index=202&type=chunk)[205](index=205&type=chunk) - Research and development expenses decreased by **$0.4 million** to **$1.1 million**, primarily due to the capitalization of development costs for eDIYBS 3.0[206](index=206&type=chunk)[207](index=207&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) - The company primarily funds its operations through cash from operating activities, short-term loans, and its IPO completed in December 2024[211](index=211&type=chunk) - Cash and cash equivalents increased to **$8,138,166** as of June 30, 2025, from **$7,849,248** as of December 31, 2024[175](index=175&type=chunk) - Net cash provided by operating activities increased by **$1.4 million** to **$2.0 million** for the six months ended June 30, 2025, driven by revenue growth and accounts receivable system automation[214](index=214&type=chunk) - Cash used in investing activities increased by **$1.4 million** to **$1.6 million** for the six months ended June 30, 2025, primarily due to continued investment in internal-use software development[216](index=216&type=chunk) - The company believes that cash generated from operating activities will allow it to continue as a going concern for at least twelve months from the report date[212](index=212&type=chunk) [Contractual Obligations and Commitments](index=45&type=section&id=Contractual%20Obligations%20and%20Commitments) - The company's principal commitments consist of obligations under its non-cancellable operating lease for its office[218](index=218&type=chunk) Contractual Obligations (as of June 30, 2025) | Type | Total | Less than 1 year | 1 – 3 years | 3 – 5 years | More than 5 years | | :------------------------ | :------ | :--------------- | :---------- | :---------- | :---------------- | | Operating lease obligations | $194,703 | $85,046 | $109,657 | — | — | [Recent Accounting Pronouncements](index=45&type=section&id=Recent%20Accounting%20Pronouncements) - The company is assessing the potential impact of ASU 2023-09 (Income Taxes), which enhances income tax disclosures and is applicable for the Annual Report on Form 10-K for the year ending December 31, 2025[102](index=102&type=chunk)[220](index=220&type=chunk) - The company is also assessing ASU 2024-03 (Expense Disaggregation Disclosures), which calls for enhanced disclosures about income statement expense captions and is effective for fiscal years beginning after December 15, 2026[104](index=104&type=chunk)[221](index=221&type=chunk) [JOBS Act](index=46&type=section&id=JOBS%20Act) - As an emerging growth company (EGC) under the JOBS Act, the company has elected to use the extended transition period for complying with new or revised accounting standards[223](index=223&type=chunk) - The company will remain an EGC until the earlier of (1) the last day of the fiscal year following the fifth anniversary of its IPO, (2) total annual gross revenue of at least **$1.235 billion**, (3) being deemed a large accelerated filer, or (4) issuing more than **$1.0 billion** in non-convertible debt securities during the prior three-year period[224](index=224&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Health In Tech is not required to provide quantitative and qualitative disclosures about market risk - The company is a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act, and is therefore not required to provide information regarding quantitative and qualitative disclosures about market risk[225](index=225&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Chief Executive Officer and Chief Financial Officer, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the period - Management, including the Certifying Officers (CEO and CFO), evaluated the effectiveness of the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025[227](index=227&type=chunk) - There were no changes in internal control over financial reporting during the period ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[228](index=228&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=46&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Disclosure controls and procedures are designed to ensure that information required for SEC reports is recorded, processed, summarized, and reported timely[226](index=226&type=chunk) - Based on management's evaluation, the disclosure controls and procedures were effective as of June 30, 2025[227](index=227&type=chunk) [Changes in Internal Control over Financial Reporting](index=46&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no changes in the company's internal control over financial reporting during the period ended June 30, 2025, that materially affected or are reasonably likely to materially affect it[228](index=228&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, though it may be involved in incidental litigation in the ordinary course of business - The company is not presently a party to any legal proceedings whose resolution would have a material adverse effect on its business, prospects, financial condition, liquidity, results of operation, cash flows, or capital levels[230](index=230&type=chunk) - The company may be involved in legal proceedings or subject to claims incidental to the ordinary course of business, which could have an adverse impact due to defense and settlement costs or diversion of resources[230](index=230&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the 'Risk Factors' discussed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent SEC filings - Risk factors that may affect the company's business and financial results are discussed in Item 1A 'Risk Factors' of its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent SEC filings[231](index=231&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On May 9, 2025, the company granted 1,250,000 shares of Class A Common Stock to Forza Business Development, LLC, for 24-month consulting services under its 2024 Plan, exempt from registration requirements - On May 9, 2025, the company granted **1,250,000 shares of Class A Common Stock** to third-party Forza Business Development, LLC, in exchange for its non-terminable 24-month consulting services[232](index=232&type=chunk) - These grants were made pursuant to the company's 2024 Plan and were exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) of the Securities Act[232](index=232&type=chunk) - There were no proceeds from unregistered sales of equity securities and no issuer purchases of equity securities[233](index=233&type=chunk)[234](index=234&type=chunk) [Item 3. Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - The company reported no defaults upon senior securities[235](index=235&type=chunk) [Item 4. Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[236](index=236&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No other information is reported under this item - No other information is reported under this item[237](index=237&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including organizational documents, certifications of principal executive and financial officers, and Inline XBRL documents - The exhibits include the Second Amended and Restated Articles of Incorporation, Third Amended and Restated Bylaws, Certifications of Principal Executive Officer and Principal Financial Officer (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act), and Inline XBRL documents[238](index=238&type=chunk) [Signatures](index=49&type=section&id=Signatures) The report is signed by the Chief Executive Officer (Tim Johnson) and Chief Financial Officer (LinLin Qian) of Health In Tech, Inc. on August 8, 2025 - The report is signed by Tim Johnson, Chief Executive Officer (Principal Executive Officer), and LinLin Qian, Chief Financial Officer (Principal Financial and Accounting Officer)[244](index=244&type=chunk) - The signing date for both officers is August 8, 2025[244](index=244&type=chunk)

Core Insights - Health In Tech has announced a collaboration with Verdegard Administrators to enhance the support provided to brokers and employer groups in the self-funded health insurance market [1][3] - The partnership aims to leverage Health In Tech's Enhanced Do It Yourself Benefit Systems (eDIYBS) platform to streamline operations and improve efficiency [1][3] Company Overview - Health In Tech is an Insurtech platform company that utilizes third-party AI technology to improve processes in the healthcare industry through vertical integration, process simplification, and automation [4] - Verdegard Administrators is a licensed third-party administrator owned by MedImpact, managing prescription benefits for over 20 million members and processing tens of billions in annual drug transactions [2] Collaboration Benefits - The collaboration allows Verdegard to access advanced digital tools and real-time quoting capabilities, which will enhance operational efficiency and provide greater control and transparency for brokers and employers [2][3] - Health In Tech's eDIYBS platform enables faster and more accurate quoting and implementation of self-funded health plans, benefiting brokers and employers with agility and cost savings [3] Market Positioning - Verdegard's scale and purchasing power help lower drug prices for employer groups, making it advantageous for cost-conscious small businesses [2] - The partnership emphasizes both companies' commitment to modernizing the self-funded insurance industry and delivering technology-driven solutions to stakeholders [3]

Group 1 - Health In Tech will host a half-day Summit on January 20, 2026, in Davos, Switzerland, coinciding with the World Economic Forum Annual Meeting [1][2] - The Summit aims to lead global dialogue on equitable, tech-powered healthcare infrastructure, showcasing Health In Tech's rising influence in the industry [2][4] - Over 75 global decision-makers from various sectors, including insurance and healthcare, will participate in discussions on next-generation underwriting and transformative financing models [3][4] Group 2 - The event represents a strategic opportunity for Health In Tech to contribute ideas and forge partnerships that can positively impact industries and societies [4][6] - This Summit continues Health In Tech's strong presence at the World Economic Forum, following its involvement in the 2024 and 2025 meetings [5] - The company emphasizes the importance of collaboration and strategic dialogue among industry stakeholders to drive innovation in healthcare and insurance [6][7]

Core Insights - Health In Tech has donated 60 new computers to the Diocese of Srikakulam, enhancing educational opportunities and promoting digital inclusion for children and families in the region [1][2] - The donation aligns with Health In Tech's commitment to community impact beyond health insurance and technology solutions, emphasizing the importance of technology in education [1][3] Company Overview - Health In Tech (Nasdaq: HIT) is an Insurtech platform company utilizing third-party AI technology to improve processes in the healthcare industry through vertical integration, process simplification, and automation [5] - The company aims to streamline the underwriting, sales, and service processes for insurance companies, licensed brokers, and third-party administrators (TPAs) [5] Community Impact - The Diocese of Srikakulam expressed gratitude for the donation, highlighting its potential to enhance learning and skill-building for vulnerable children [2] - The donated computers will support educational programs and digital literacy initiatives, addressing the digital divide in underserved areas [2][3] - Health In Tech's donation reflects its alignment with Environmental, Social, and Governance (ESG) values, particularly in promoting digital inclusion and social equity [3] Future Collaboration - Health In Tech is dedicated to fostering community partnerships and encourages collaboration with other organizations and individuals to create lasting positive change [4]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 reached $9.3 million, representing an 86% year-over-year increase [5][6] - First half revenues totaled $17.3 million, which is 89% of the entire 2024 fiscal year total of $19.54 million [6][23] - Adjusted EBITDA for Q2 was $1.6 million, a 134% year-over-year increase, with first half adjusted EBITDA reaching $2.8 million [24] - Pretax income for Q2 more than doubled year-over-year to $800,000, with first half pretax income at $1.5 million [24][25] - Cash flow from operating activities was positive $1.5 million in Q2, with total cash flow for all activities at positive $600,000 [29] Business Line Data and Key Metrics Changes - The company expanded its distribution network to 778 partners, an 87% increase year-over-year [7] - Billed enrolled employees increased by 30%, reaching 24,839 [7] - Sales and marketing expenses were $1.2 million for the quarter, a 6.3% reduction year-over-year [27] - General administrative expenses were $3.8 million, a 4.2% increase compared to the same period last year [28] Market Data and Key Metrics Changes - The company is focusing on small and mid-sized employers, with a significant market opportunity remaining as it has only captured a small fraction of the potential market [87] - The healthcare insurance market is characterized by uncertainty, presenting opportunities for the company to provide alternatives [89][90] Company Strategy and Development Direction - The company is broadening its market reach through strategic partnerships with third-party administrators and regional healthcare benefit providers [7][10] - The enhanced eDiP platform is set to launch fully in Q3, with new product offerings expected to be beta tested by the end of Q3 [11] - The company aims to maintain strong growth momentum through technology enhancement and product innovation [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain growth momentum despite the typically slow sales seasons [9] - The current healthcare market's challenges, including rising rates from ACA carriers, create opportunities for the company to offer solutions [91][92] Other Important Information - The company is actively working on the HiCard project, with expectations to see revenue from it in Q1 of the following year [66][67] - The company is exploring new product opportunities and will announce them as they approach completion [72][74] Q&A Session Summary Question: How is the company benefiting from partnerships? - Management noted that partnerships allow for more distribution opportunities and can lead to new employer clients [55] Question: How is the company targeting mid-sized employers? - The company is not actively marketing to large employers but is seeing an uptick in requests from larger groups through broker partners [42][44] Question: What is the company's approach to controlling expenses? - Management emphasized disciplined expense management and the expectation that revenue growth will outpace expense growth [63][64] Question: What is the outlook for the HiCard project? - The HiCard project is expected to be implemented by August, with revenue anticipated in Q1 of the following year [66][67] Question: How does the company view the current healthcare insurance market? - Management sees the current uncertainty in the market as a significant opportunity to provide alternatives and solutions [89][90]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 reached $9.3 million, representing an 86% year-over-year increase [6][26] - First half revenues of $17.3 million already account for 89% of the entire 2024 fiscal year total [7][26] - Adjusted EBITDA for Q2 was $1.6 million, a 134% increase year-over-year, with first half adjusted EBITDA reaching $2.8 million [27] - Pretax income for Q2 more than doubled year-over-year to $800,000, with first half pretax income at $1.5 million [27] Business Line Data and Key Metrics Changes - The company expanded its distribution network to 778 partners, an 87% increase year-over-year [8] - Billed enrolled employees increased by 30%, now totaling 24,839 [8] Market Data and Key Metrics Changes - The company is actively forging partnerships with third-party administrators and regional healthcare benefit providers, enhancing market reach [8][12] - The demand for differentiated services is evident in the growth of billed enrolled employees [8] Company Strategy and Development Direction - The company is focused on strategic partnership expansion, technology enhancement, and product innovation to maintain growth momentum [13] - The enhanced eDiP platform with automated large group underwriting tools is set to launch in Q3 [13] - The company aims to provide comprehensive solutions for small businesses through partnerships with influential players in the healthcare ecosystem [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain strong growth momentum despite typically slow sales seasons [11] - The current healthcare insurance market is characterized by uncertainty, presenting opportunities for the company to provide alternatives and solutions [91][93] Other Important Information - The company reported a positive cash flow from operating activities of $1.5 million in Q2, with total cash flow for all activities being positive $600,000 [31] - As of June 30, 2025, the company had $8.1 million in cash, demonstrating disciplined cash flow management [31] Q&A Session Summary Question: How is the company benefiting from partnerships and new business? - Management noted that opportunities in the fully insured market allow for flexibility in moving employees off effective dates, leading to more sales throughout the year [36][37] Question: How is the rollout of the AI-backed underwriting platform being managed? - The company is seeing an uptick in larger cases and is working with national agencies to build trust and bring in larger groups [43][44] Question: How do partnerships contribute to new employer acquisition? - Partnerships with TPAs are expected to bring in new business as they tap into distribution channels previously inaccessible to the company [62] Question: What is the company's approach to controlling expenses while growing revenue? - Management emphasized the importance of maintaining positive operating leverage and continuously reviewing internal efficiency [65][66] Question: What are the future plans for the HiCard program? - The company is on track to implement the HiCard program by August, with revenue expected in Q1 of the following year [70] Question: How does the company view the current healthcare insurance market? - Management highlighted the significant rate increases from ACA carriers as an opportunity for the company to provide alternative solutions [93][94]

Company Overview - Health In Tech (HIT) is an insurance exchange platform transforming the self-funded healthcare market through technology [6] - The company connects brokers, employers, and TPAs on a single platform to deliver customized self-funded plans [7] - As of Q2 2025, HIT has expanded its reach to 41 states, serving 942 business clients and collaborating with 778 brokers, TPAs, and agencies [9] Financial Performance (1H 2025) - HIT's revenue for the first half of 2025 reached $17.3 million, representing 89% of the full-year 2024 revenue of $19.5 million, with a year-over-year growth of 86% [10] - Adjusted EBITDA for 1H 2025 exceeded the full-year 2024 total, reaching $2.8 million compared to $2.3 million, demonstrating a 134% year-over-year increase [10] - In Q2 2025, the company achieved $9.3 million in revenue and $1.6 million in Adjusted EBITDA [10] - Cash and cash equivalents increased from $2.2 million in June 2024 to $8.1 million in June 2025 [53] Market Opportunity - The U S healthcare industry represents a $6.6 trillion total addressable market [11] - Small businesses, employing 59 million people, contribute 43.5% of the GDP, highlighting a significant market segment [12, 13] Technology and Innovation - HIT leverages AI across its platform to accelerate processes, enhance transparency, support smarter decision-making, deliver cost efficiency, and empower personalized care models [34, 36] - The company's proprietary eDIYBS technology simplifies the quoting process, presenting bindable proposals with 12 plans and 4 tier rates in approximately 2 minutes [40]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20Highlights%20for%20the%20Second%20Quarter%20and%20First-Half%20of%202025) Health In Tech reported strong Q2 2025 revenue and Adjusted EBITDA growth, driven by network expansion and increased employee enrollment Q2 2025 Key Performance Indicators (YoY) | Metric | Q2 2025 Value | YoY Growth | | :--- | :--- | :--- | | **Total Revenues** | $9.3 million | 86% | | **Adjusted EBITDA** | $1.6 million | 134% | | **Distribution Partners** | 778 | 87% | | **Billed Enrolled Employees** | 24,839 | 30% (5,738 increase) | - The company demonstrates strong growth momentum, with first-half 2025 revenues of **$17.3 million** already representing **89%** of the full-year 2024 revenue. Similarly, first-half adjusted EBITDA of **$2.8 million** is **1.2 times** the full-year 2024 figure[5](index=5&type=chunk)[6](index=6&type=chunk) - The company maintained a solid cash position with a balance of **$8.1 million** as of June 30, 2025[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strategic network expansion and AI-powered service bundling, alongside disciplined financial management and improved profitability - CEO Tim Johnson emphasized the strategic focus on expanding the distribution network beyond traditional brokers to include TPAs, regional healthcare providers, and small business service platforms[4](index=4&type=chunk) - Partners are increasingly using the company's AI-powered platform to bundle healthcare insurance with their existing services, creating integrated solutions for small business employers[4](index=4&type=chunk) - CFO Julia Qian noted that first-half pretax income as a percentage of revenue improved by nearly **300 basis points** year-over-year, demonstrating effective expense discipline and resource allocation[6](index=6&type=chunk) [Recent Business Developments](index=2&type=section&id=Recent%20Business%20Developments%20and%20Highlights) Health In Tech established key partnerships with TPAs and brokers to expand market reach and enhance service offerings - The company has formed strategic partnerships to broaden its distribution and service capabilities: - **Verdegard Administrators:** A TPA owned by MedImpact, aimed at reducing costs for small businesses - **Unified Health Plans:** A premier TPA in Kansas, providing access to its extensive provider network - **HILB Group:** A Top 25 U.S. insurance broker, partnering to co-develop and distribute self-funded health benefit solutions - **Baily Insurance:** An experienced agency and co-founder of Fusion Health Plans, leveraging HIT's platform for faster administration and scalability[11](index=11&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The unaudited consolidated financial statements for the period ended June 30, 2025, detail the company's financial performance and position [Consolidated Statements of Operations](index=3&type=section&id=Health%20In%20Tech,%20Inc.%20Consolidated%20Statements%20of%20Operations) This section presents the unaudited consolidated statements of operations, detailing revenues, expenses, and net income for the specified periods Statement of Operations Highlights (Unaudited) | Metric (in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $9.31 | $5.00 | $17.33 | $10.13 | | **Gross Profit** | $6.31 | $4.03 | $11.67 | $8.16 | | **Income Before Income Tax** | $0.83 | $0.40 | $1.52 | $0.59 | | **Net Income** | $0.63 | $0.34 | $1.13 | $0.44 | - The significant increase in total revenues was primarily driven by 'Revenues from fees', which more than doubled from **$3.4 million** in Q2 2024 to **$7.2 million** in Q2 2025[15](index=15&type=chunk) - Operating expenses increased from **$3.5 million** in Q2 2024 to **$5.6 million** in Q2 2025, mainly due to higher General and Administrative expenses[15](index=15&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Health%20In%20Tech,%20Inc.%20Consolidated%20Balance%20Sheets) This section presents the unaudited consolidated balance sheets, outlining assets, liabilities, and equity at specific points in time Balance Sheet Highlights (Unaudited) | Metric (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash** | $8.14 | $7.85 | | **Total Current Assets** | $14.85 | $10.78 | | **Total Assets** | $22.18 | $15.77 | | **Total Liabilities** | $5.75 | $2.60 | | **Total Stockholders' Equity** | $16.42 | $13.17 | - Total assets grew by **40.6%** from December 31, 2024, to June 30, 2025, primarily driven by increases in 'Other receivables' and 'Software'[18](index=18&type=chunk) - Total liabilities more than doubled, increasing from **$2.6 million** to **$5.75 million**, largely due to a significant rise in 'Accounts payable and accrued expenses'[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Health%20In%20Tech,%20Inc.%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited consolidated statements of cash flows, summarizing cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary for Six Months Ended June 30 (Unaudited) | Cash Flow (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $2.01 | $0.59 | | **Net cash used in investing activities** | ($1.61) | ($0.23) | | **Net cash used in financing activities** | ($0.11) | ($0.61) | | **Increase (decrease) in cash** | $0.29 | ($0.25) | - Cash from operating activities significantly improved in the first half of 2025, driven by higher net income and favorable changes in working capital, particularly accounts payable[20](index=20&type=chunk) - Cash used in investing activities increased substantially to **$1.6 million** in H1 2025 from **$0.2 million** in H1 2024, reflecting higher investment in software development[20](index=20&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Information) Adjusted EBITDA, a non-GAAP measure, clarifies operational performance by excluding specific non-cash and non-operating items - Adjusted EBITDA is defined as net income before net interest expense, taxes, depreciation, amortization, and adjusted to eliminate stock-based compensation expense[27](index=27&type=chunk) Adjusted EBITDA Reconciliation (Unaudited, in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $630.6 | $338.0 | $1,129.2 | $438.5 | | **Total Net Adjustments** | $938.4 | $331.7 | $1,668.0 | $698.4 | | **Adjusted EBITDA** | $1,569.0 | $669.7 | $2,797.2 | $1,136.9 | [Components of Operating Results](index=7&type=section&id=Components%20of%20Operating%20Results) Revenues are generated by streamlining processes for TPAs, MGUs, and Brokers, with costs covering platform, technology, and personnel - Revenue is driven by offering solutions that streamline sales and service for TPAs, MGUs, and Brokers. Services from subsidiaries SMR (program services) and ICE (MGU activities) are interdependent and sold as a combined offering[22](index=22&type=chunk) - Cost of revenues consists of platform infrastructure costs (hosting), fees for third-party technology, and amortization of capitalized internal-use software[23](index=23&type=chunk) - Operating expenses are broken down into: - **Sales and marketing:** Personnel costs, commissions, and advertising - **General and administrative:** Executive, finance, legal, and HR personnel costs, plus professional fees - **Research and development:** Personnel costs for R&D staff and expenses for platform enhancement[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)