Financial Performance - Total revenues for the three months ended March 31, 2025, were $8,014,984, representing a 56.5% increase from $5,124,931 in the same period of 2024[22] - Gross profit for the first quarter of 2025 was $5,355,399, up 29.5% from $4,135,020 in Q1 2024[22] - Net income for the three months ended March 31, 2025, was $498,592, compared to $100,536 in Q1 2024, marking a significant increase of 394.5%[22] - Adjusted EBITDA for the three months ended March 31, 2025, was $1,228,211, compared to $467,209 in the same period of 2024, indicating a growth of approximately 162.5%[162] - 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 same period in 2024[182] Cash and Assets - Cash and cash equivalents decreased to $7,575,037 as of March 31, 2025, from $7,849,248 at the end of 2024, a decline of 3.5%[30] - Total assets increased to $21,330,200 as of March 31, 2025, up from $15,768,489 at the end of 2024, reflecting a growth of 35.4%[18] - Accounts receivable, net increased by $463,498 to $2,110,601 as of March 31, 2025, primarily due to revenue growth[165] - The balance of software increased by $773,632 to $4.7 million as of March 31, 2025, from $4.0 million as of December 31, 2024, due to investment in new software development[167] Expenses - Operating expenses for Q1 2025 were $4,874,741, a 28.2% increase from $3,802,598 in Q1 2024[22] - 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 same period in 2024[176] - Research and development expenses decreased to $537,721 in Q1 2025 from $760,196 in Q1 2024, a reduction of 29.3%[22] Stockholders' Equity - Total stockholders' equity rose to $14,160,791 as of March 31, 2025, compared to $13,169,028 at the end of 2024, an increase of 7.5%[18] - The balance of total stockholders' equity increased by $991,763 to $14.2 million as of March 31, 2025, from $13.2 million as of December 31, 2024[169] Revenue Sources - Revenue from Carrier A accounted for 28.4% of total revenues for the three months ended March 31, 2025, compared to 0.0% for the same period in 2024[42] - Revenues from underwriting modeling (ICE) increased to $2,630,455 in Q1 2025 from $1,784,635 in Q1 2024, reflecting a growth of about 47.5%[83] - Revenues from fees rose significantly to $6,302,872 in Q1 2025, up from $3,425,040 in Q1 2024, marking an increase of approximately 83.5%[83] IPO and Stock Information - The company completed its IPO on December 24, 2024, raising net proceeds of $8,214,000 from the sale of 2,300,000 shares at $4.00 per share[33] - As of March 31, 2025, the Company had 54,619,858 weighted average shares outstanding for basic EPS, with a net income of $498,592, resulting in a basic EPS of $0.01[99] - The diluted net income per share for the three months ended March 31, 2025 was also $0.01, with a total dilutive effect of 2,377,078 outstanding equity awards[99] Tax and Compliance - For the three months ended March 31, 2025, the company incurred an income tax expense of $185,831, a significant increase from $91,198 in the same period of 2024, representing a year-over-year growth of 103.5%[119] - The company's effective tax rate for the three months ended March 31, 2025, was 27.15%, down from 47.56% in the same period of 2024, primarily due to state taxes and permanent differences[120] - The company received a notice from Nasdaq indicating that the closing bid price for its Class A common stock was below the minimum $1.00 requirement for continued listing[205] - The company has until October 27, 2025, to regain compliance with Nasdaq's minimum bid price rule[206] Strategic Developments - On March 25, 2025, the company announced a strategic collaboration with DialCare to integrate telehealth services into its health plan offerings[139] - The company appointed Sanjay Shrestha to its Board of Directors on April 8, 2025, bringing extensive experience in scaling platform-based businesses[140] Operational Insights - The Company has a diversified customer base with no small business employer accounting for more than 2.0% of total revenues for the three months ended March 31, 2025[44] - The Company recorded $0 collections under the Deferred Administrative Surplus during the three months ended March 31, 2025, due to human resource constraints[59] - The Company continues to evaluate its historical credit loss experience and market trends to assess collectability of receivables[61] - The Company operates under ASC 606, recognizing revenue based on the transfer of promised goods or services to customers[68]
Health In Tech Inc(HIT) - 2025 Q1 - Quarterly Report