Company: TIPT
Filing Date: 2025-10-31
Form Type: DEFM14A
Source: 0001140361-25-039949
Chunk: 230

Company: TIPTREE INC.
Filing Date: 2025-10-31
Form: DEFM14A
Chunk 230
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       |     |      $0.16 |

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TABLE OF CONTENTS

NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS

| 1. | BASIS OF PRESENTATION |

The unaudited pro forma combined financial statements have been derived from the historical consolidated financial statements of Tiptree, Fortegra, and Reliance in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and are presented in U.S. dollars. The Merger and the Reliance Transaction are each being accounted for as a deconsolidation of a subsidiary under ASC 810 Consolidations, which requires an entity to derecognize assets as of the date the parent ceases to have a controlling financial interest in that subsidiary. At the date of deconsolidation, each entity shall recognize a gain or loss in net income attributable to the parent, measured as the difference between (a) the aggregate of the (i) fair value of any consideration received; (ii) fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated; and (iii) carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated and (b) the carrying amount of the former subsidiary’s assets and liabilities. We expect both transactions will be accounted for as discontinued operations under ASC 205.

| 2. | PRELIMINARY DECONSOLIDATION ACCOUNTING FOR FORTEGRA |

The Merger is subject to, among other conditions to closing, approval by Tiptree shareholders and regulators. There can be no assurance the Merger will close as expected or at all. The Reliance Transaction is subject to, among other conditions to closing, approval by regulators. There can be no assurance the Reliance Transaction will close as expected or at all. A gain on the sale of Fortegra recorded in the unaudited pro forma condensed consolidated balance sheet for the period ended September 30, 2025, is as follows:

|                                       |     |              As of 
 September 30, 2025 |
|:--------------------------------------|:----|-------------------:|
| Consideration                         |     |        $ 1,650,000 |
| Less: transaction expenses            |     |             27,000 |
| Net consideration                     |     |          1,623,000 |