Financial Performance - Total revenues for the three months ended September 30, 2025, were $8,490,093, a 90.5% increase from $4,458,921 in the same period of 2024[22] - Gross profit for the nine months ended September 30, 2025, was $16,809,085, compared to $11,642,076 for the same period in 2024, reflecting a 44.1% increase[22] - Net income for the three months ended September 30, 2025, was $452,176, up from $376,086 in the same period of 2024, representing a 20.2% increase[22] - Net income for the nine months ended September 30, 2025, was $1,581,399, a significant increase from $814,629 in the same period of 2024, representing a growth of 94%[30] - Total revenues for the nine months ended September 30, 2025, were $25,818,926, compared to $14,586,342 for the same period in 2024[170] - Adjusted EBITDA for the three months ended September 30, 2025, was $999,056, reflecting an increase of 49.3% from $668,863 in 2024[178] Cash and Assets - Cash and cash equivalents increased to $8,023,613 as of September 30, 2025, compared to $7,849,248 as of December 31, 2024[18] - Total assets grew to $22,755,844 as of September 30, 2025, up from $15,768,489 as of December 31, 2024, marking a 44.2% increase[18] - Total stockholders' equity reached $17,158,963 as of September 30, 2025, compared to $13,169,028 as of December 31, 2024, indicating a 30.1% increase[19] Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $15,109,834, compared to $10,335,836 for the same period in 2024, a 46.1% increase[22] - Research and development expenses for the three months ended September 30, 2025, were $235,819, down from $718,424 in the same period of 2024, a decrease of 67.2%[22] - General and administrative expenses increased by $4.8 million to $10.4 million for the nine months ended September 30, 2025, with a slight increase in percentage to 40.6% of revenue[213] - Sales and marketing expenses for the nine months ended September 30, 2025, increased by $0.8 million to $3.3 million, but declined to 12.7% of revenue[209] Revenue Sources - Revenues from fees for the three months ended September 30, 2025, were $7,100,489, significantly up from $2,930,470 in the same period of 2024, reflecting a 142.5% increase[22] - Revenues from underwriting modeling (ICE) reached $2,802,949 for the three months ended September 30, 2025, compared to $1,528,451 in 2024, marking an 83.5% increase[82] - Revenue from service fees for the nine months ended September 30, 2025, was $19,986,762, representing 77.4% of total revenues[170] Shareholder Information - The weighted average common shares outstanding for the three months ended September 30, 2025, were 56,432,407, compared to 51,769,358 for the same period in 2024, an increase of 9.5%[22] - As of September 30, 2025, the Company had 44,785,771 shares of Class A Common Stock issued and outstanding, an increase from 42,914,870 shares as of December 31, 2024[116] - The total dilutive effect of outstanding equity awards for the three months ended September 30, 2025, was 2,341,927 shares[101] Taxation - The company incurred an income tax expense of $148,046 for the three months ended September 30, 2025, compared to $30,653 for the same period in 2024, representing a 383% increase[125] - For the nine months ended September 30, 2025, the income tax expense was $536,514, up from $185,119 in 2024, indicating a 189% increase[125] - The effective tax rate for the three months ended September 30, 2025, was 24.67%, significantly higher than the 7.54% effective tax rate for the same period in 2024[126] Strategic Initiatives - A non-binding strategic Letter of Intent was signed with AlphaTON Capital to co-develop HITChain, a blockchain-powered claims platform targeting the $300B+ U.S. claims market[155] - The company showcased its upgraded eDIYBS at the SIIA 2025 Conference, reinforcing its reputation as a leader in AI-powered self-funding solutions[157] - The company’s growth strategy relies on collaborations with insurance carriers to expand its portfolio of products and services[159] Employee Metrics - The number of enrolled employees reached 25,248, representing a 44% increase from 17,594 in the same period of 2024[167] - The total billable enrolled employees increased by 44% to 25,248 as of September 30, 2025, compared to 17,594 in the same prior year[203]
Health In Tech Inc(HIT) - 2025 Q3 - Quarterly Report