Company: BLND
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001855747-25-000017
Chunk: 87

Company: Blend Labs, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 87
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,912 ____________(1) Performance conditions were not satisfied for the unvested performance stock awards as of December 31, 2024.

16. Strategic Partnership and Sale of Insurance Business

On September 30, 2024, the Company entered into a multi-element transaction with Covered Insurance Solutions which included a strategic partnership agreement as well as the sale of the Company’s insurance business. As part of the strategic partnership agreement, the Company granted a five-year term license allowing Covered Insurance Solutions to integrate its insurance solutions into the Company’s platform for an annual fixed fee plus variable charges. The Company also received $10.1 million in cash proceeds and the Covered Warrant. The Covered Warrant has a term of ten years and expires on September 30, 2034. The fair value of the Covered Warrant at the time of grant was approximately $0.7 million.The Company recognized a gain on the sale of insurance business of $9.2 million, net of transaction costs of $0.3 million, which is presented within other income (expense), net in the accompanying consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2024.

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Blend Labs, Inc.Notes to Consolidated Financial Statements

The Company has determined the five-year term license is a performance obligation under ASC 606, Revenue from Contracts with Customers. The deferred revenue liability related to the performance obligations recognized under the strategic partnership agreement was $1.0 million  as of December 31, 2024.

17. Segment Information

The Company’s CODM is the chief executive officer. The Company’s operating segments are defined in a manner consistent with how the Company manages its operations and how the CODM evaluates the results and allocates the Company’s resources. The Company’s operations are organized into two reportable segments: Blend Platform and Title.In 2023, the Company introduced Blend Builder, which gives customers the ability to easily configure or build custom workflows from a pre-built set of components. In connection with this development, the Company changed its reporting segments as previously reported on its Annual Report on Form 10-K for the fiscal years ended December 31, 2022 and 2021, to change the composition of the Blend Platform segment to exclude the Company’s digitally-enabled title component and instead report the digitally-enabled title component within the Title segment. This change reflects a corresponding change in how the CODM reviews financial information in order to allocate resources and assess performance. The comparative prior period amounts have been reclassified