# EDGAR Filing Document

**Accession Number:** 0002019505
**File Stem:** 0001213900-25-066154
**Filing Date:** 2025-7
**Character Count:** 29962
**Document Hash:** 0c1272ee03f9e964268edc76e2d77b92
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-066154.hdr.sgml**: 20250721

**ACCESSION NUMBER**: 0001213900-25-066154

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250721

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250721

**DATE AS OF CHANGE**: 20250721

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Health In Tech, Inc.
- **CENTRAL INDEX KEY:** 0002019505
- **STANDARD INDUSTRIAL CLASSIFICATION:** INSURANCE AGENTS BROKERS & SERVICES [6411]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42449
- **FILM NUMBER:** 251137642

**BUSINESS ADDRESS:**
- **STREET 1:** 701 S. COLORADO AVE
- **STREET 2:** SUITE 1
- **CITY:** STUART
- **STATE:** FL
- **ZIP:** 34994
- **BUSINESS PHONE:** 888-373-0333

**MAIL ADDRESS:**
- **STREET 1:** 701 S. COLORADO AVE
- **STREET 2:** SUITE 1
- **CITY:** STUART
- **STATE:** FL
- **ZIP:** 34994

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549** 

**FORM 8-K**

**Current Report**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

**July 21, 2025**

Date of Report (Date of earliest event reported)

**<u>Health In Tech, Inc.</u>**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-42449** | **87-3545722** |
| (State or other jurisdiction<br> of incorporation) | (Commission File Number) | (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **701 S. Colorado Ave, Suite 1**<br> **Stuart, FL** | **34994** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(888) 373-0333**

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Class A Common Stock, $0.001 par value per share | HIT | The Nasdaq Stock Market LLC<br> (Nasdaq Capital Market) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02. Results of Operations and Financial Condition.**

On July 21, 2025, Health In Tech, Inc., a Nevada corporation (the "Company") issued a press release announcing its results of operations for the quarter ended June 30, 2025, attached hereto as Exhibit 99.1.

**Item 7.01. Regulation FD Disclosure.**

As disclosed in Item 2.02 above, on July 21, 2025, the Company issued a press release announcing its results of operations for the quarter ended June 30, 2025, attached hereto as Exhibit 99.1. The information set forth in Item 7.01 of this Current Report on Form 8-K and in the attached Exhibit 99.1 are deemed to be "furnished" and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information set forth in Items 2.02 and 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing.

*Forward-Looking Statements*

Certain statements in this Current Report on Form 8-K are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company's actual results to differ materially from those presented in its forward-looking statements are set forth in the "Risk Factors" section in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent reports. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press release dated July 21, 2025.](ea024971501ex99-1_health.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 21, 2025

HEALTH IN TECH, INC.

---

| | |
|:---|:---|
| By: | */s/ Tim Johnson* |
| Name: | Tim Johnson |
| Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Health In Tech Announces Second Quarter 2025 Financial Results**

● Revenues of $9.3 million, up 86% YoY; The first-half year revenues of $17.3 million, 89% of full year 2024.

● Adjusted EBITDA of $1.6 million, up 134% YoY; The first-half year adjusted EBITDA of $2.8 million, 1.2 times full year 2024.

● Cash balance of $8.1 million.

Stuart, FL., July 21, 2025 /PRNewswire/ — Health In Tech (Nasdaq: HIT), an Insurtech platform company backed by third-party AI technology, today announced its financial results for the second quarter ended June 30, 2025.

**<u>Financial Highlights for the Second Quarter and First-Half of 2025:</u>**

● **Revenues.** Total revenues were $9.3 million, up 86% YoY. The first-half year revenues of $17.3 million, 89% of FY2024 total.

● **Billed Enrolled Employees.** The number of billed enrolled employees (EEs) was 24,839, an increase of 5,738 EEs YoY.

● **Distribution.** The number of Brokers, Third-party Administrator ("TPAs") and Agencies expanded to 778 partners, up 87% YoY.

● **Pre-tax income.** Pre-tax income was $0.8 million, more than doubled YoY; The first-half year pre-tax income of $1.5 million, 1.7x of FY2024.

● **Adjusted EBITDA.** Adjusted EBITDA was $1.6 million, up 134% YoY; The first-half year adjusted EBITDA of $2.8 million, 1.2x of FY2024.

● **Cash.** Cash balance was $8.1 million as of June 30, 2025.

● **Accounts receivable, net.** Accounts receivable balance was $1.3 million as of June 30, 2025, reduced $0.2 million YoY.

"We delivered another strong quarter of profitable growth, with total revenue reaching $9.3 million—up 86% year over year—and first-half revenues already at 89% of our full-year 2024 total," said Tim Johnson, CEO of Health In Tech. "Our distribution network has expanded to 778 partners—an 87% increase year over year—reflecting our strategic focus on growing beyond traditional broker channels. We've established partnerships with TPAs offering technology-driven solutions, regional healthcare benefit providers, and service platforms that support small businesses. This approach is broadening our market reach and delivering greater value to our customers. The 30% increase in billed enrolled employees and strong adoption across our network underscore the demand for our differentiated services and offering."

Mr. Johnson added, "What's particularly exciting is that many of our partners are now using our platform to bundle healthcare insurance with their existing services, enabling them to serve small business employer better by offering integrated, end-to-end solutions. Our AI-powered platform is easy to implement and highly intuitive, making it an ideal tool for partners seeking efficiency and scalability. With a broader distribution footprint and multiple new relationships in place, we're confident in our ability to maintain strong growth momentum through the rest of the year."

"We're pleased with our second quarter results, which reflect strong execution and disciplined financial management across the business," said Julia Qian, CFO of Health In Tech. "Q2 revenue reached $9.3 million, bringing first-half revenue to $17.3 million—already 89% of our full-year 2024 total—driven by continued strategic expansion of our distribution network and strong customer acquisition. Adjusted EBITDA for the quarter was $1.6 million, up 134% year over year, with first-half adjusted EBITDA reaching $2.8 million—1.2 times our full-year 2024 result. First-half pretax income represented 8.8% of revenue, a nearly 300 basis point improvement year over year, demonstrating our ability to maintain expense discipline and allocate resources effectively to drive top-line growth. Supported by a solid $8.1 million cash position, we remain focused on investing in high-impact initiatives and advanced technology solutions that scale efficiently and sustain profitable growth.".

**<u>Recent Business Developments and Highlights</u>**

● **Verdegard Administrators:** an integrated, concierge-level TPA, owned by MedImpact, the largest independent pharmacy benefit manager (PBM) in the U.S., managing prescription benefits for over 20 million members and processing tens of billions in annual drug transactions. This partnership will enable us to reduce costs for small businesses.

● **Unified Health Plans:** a premier TPA recognized for its extensive provider network across Kansas. It has extensive provider network and focuses on controlling cost drivers and improving care quality. Unified dominates several niche business sectors in Kansas. The partnership with HIT will bring healthcare insurance solutions to the business members.

● **HILB Group,** one of Insurance Journal's Top 25 ranked U.S. insurance brokers with over 2400 employee across more than 125+ branch locations in all 50 States. It partners with HIT to co-develop and distribute smarter, more transparent self-funded health benefit solutions to a much broader base of small and mid-size employers.

● **Baily Insurance**, established in 1880, in its fourth -generation ownership. The agency has over 200 years of combined team experience. Licensed advisors partnering with multiple Carriers. Baily is a co-founder and key broker partner in Fusion Health Plans that provides better care services and tech-enabled solution. The collaboration with HIT will deliver faster underwriting, administration, and scalability.

**Conference Call Details**

Health In Tech will host a conference call to discuss the financial results for the second quarter of 2025 on July 21, 2025, at 5:00 p.m. (ET). To participate in our live conference call and webcast, please dial 1-888-346-8982 or 1-412-902-4272 (for international participants).

A live audio webcast will be available via the Investor Relations page of Health In Tech's website at **https://healthintech.com/.** A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

**Non-GAAP Financial Information**

This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.

**Use of Forward-Looking Statements**

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech's possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech's control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech's operations, results of operations, growth strategy and liquidity.

**About Health In Tech** 

Health In Tech (Nasdaq: "HIT") is an Insurtech platform company backed by third-party AI technology, which offers a marketplace that aims to improve processes in the healthcare industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the underwriting, sales and service process for insurance companies, licensed brokers, and TPAs. Learn more at healthintech.com.

**Health In Tech, Inc.**

**Consolidated Statements of Operations**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** <br> **June 30,** | **Three Months Ended** <br> **June 30,** | **Six Months Ended**<br> **June 30,** | **Six Months Ended**<br> **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenues** |  |  |  |  |
| **Revenues from underwriting modeling (ICE)** | $2090576 | $1639105 | $4442560 | $3423740 |
| **Revenues from fees** | 7223273 | 3363385 | 12886273 | 6703681 |
| &nbsp;&nbsp;&nbsp;**SMR** | 7223273 | 2595545 | 12886273 | 5128467 |
| &nbsp;&nbsp;&nbsp;**HI Card** | - | 767840 | - | 1575214 |
| **Total revenues** | **9313849** | **5002490** | **17328833** | **10127421** |
| **Cost of revenues** | **3003979** | **974727** | **5663564** | **1964638** |
| **Gross profit** | **6309870** | **4027763** | **11665269** | **8162783** |
| **Operating expenses** |  |  |  |  |
| **Sales and marketing expenses** | 1226738 | 974522 | 2316993 | 2017730 |
| **General and administrative expenses** | 3775453 | 1816679 | 7022218 | 3815873 |
| **Research and development expenses** | 582609 | 701626 | 1120330 | 1461822 |
| **Total operating expenses** | **5584800** | **3492827** | **10459541** | **7295425** |
| **Other income (expense):** |  |  |  |  |
| **Interest income** | 108198 | 31339 | 193564 | 55651 |
| **Interest expenses** |  | (165000) |  | (330000) |
| **Other income** | - | - | 118399 | - |
| **Total other income (expense), net** | **108198** | **(133661)** | **311963** | **(274349)** |
| **Income before income tax expense** | $**833268** | $**401275** | $**1517691** | $**593009** |
| **Provision for income taxes** | (202637) | (63268) | (388468) | (154466) |
| **Net income** | $**630631** | $**338007** | $**1129223** | $**438543** |
| **Net income per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Basic** | $**0.01** | $**0.01** | $**0.02** | $**0.01** |
| &nbsp;&nbsp;&nbsp;**Diluted** | $**0.01** | $**0.01** | $**0.02** | $**0.01** |
| **Weighted average common stocks outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Basic** | **55382395** | **51769358** | **55003233** | **51769358** |
| &nbsp;&nbsp;&nbsp;**Diluted** | **55632357** | **51769358** | **57004070** | **51769358** |

---

**Health In Tech, Inc.**

**Consolidated Balance Sheets**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31, 2024** |
| **Assets** | | |
| **Current assets** | | |
| &nbsp;&nbsp;&nbsp;**Cash** | $8138166 | $7849248 |
| &nbsp;&nbsp;&nbsp;**Accounts receivable, net** | 1281131 | 1647103 |
| &nbsp;&nbsp;&nbsp;**Other receivables** | 3854834 | 500252 |
| &nbsp;&nbsp;&nbsp;**Deferred offering costs** | 66500 |  |
| &nbsp;&nbsp;&nbsp;**Prepaid expenses and other current assets** | 1513017 | 787161 |
| **Total current assets** | 14853648 | 10783764 |
| **Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;**Software** | 5519110 | 3962461 |
| &nbsp;&nbsp;&nbsp;**Loans receivable, net** | 847993 | 815995 |
| &nbsp;&nbsp;&nbsp;**Operating lease - right of use assets** | 173896 | 206269 |
| &nbsp;&nbsp;&nbsp;**Long-term prepaid expenses** | 783603 |  |
| **Total non-current assets** | 7324602 | 4984725 |
| **Total assets** | $**22178250** | $**15768489** |
| **Liabilities and stockholders' equity** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;**Accounts payable and accrued expenses** | $4327475 | $1858840 |
| &nbsp;&nbsp;&nbsp;**Income taxes payable** | 34944 | 205253 |
| &nbsp;&nbsp;&nbsp;**Operating lease liabilities - current** | 71418 | 66881 |
| &nbsp;&nbsp;&nbsp;**Other current liabilities** | 955743 | - |
| **Total current liabilities** | 5389580 | 2130974 |
| **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;**Deferred tax liabilities** | 262129 | 328676 |
| &nbsp;&nbsp;&nbsp;**Operating lease liabilities - non-current** | 102938 | 139811 |
| **Total non-current liabilities** | 365067 | 468487 |
| **Total liabilities** | **5754647** | **2599461** |
| **Stockholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;**Common stock, $0.001 par value; Class A Common stock 150,000,000 shares authorized, 44,679,664 and 42,914,870 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively** | 44679 | 42915 |
| &nbsp;&nbsp;&nbsp;**Common stock, $0.001 par value; Class B Common stock 50,000,000 shares authorized, 11,700,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively** | 11700 | 11700 |
| &nbsp;&nbsp;&nbsp;**Additional paid-in capital** | 11296605 | 9173017 |
| &nbsp;&nbsp;&nbsp;**Retained earnings** | 5070619 | 3941396 |
| **Total stockholders' equity** | **16423603** | **13169028** |
| **Total liabilities and stockholders' equity** | $**22178250** | $**15768489** |

---

**Health In Tech, Inc.**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** <br> **June 30,** | **Three Months Ended** <br> **June 30,** | **Six Months Ended** <br> **June 30,** | **Six Months Ended** <br> **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |  |  |
| **Net income** | $630631 | $338007 | $1129223 | $438543 |
| **Adjustments to reconcile net income to net cash provided by operating activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Write-off of accounts receivable** | 5990 |  | 5990 |  |
| &nbsp;&nbsp;&nbsp;**Amortization expense** | 135983 | 134787 | 271966 | 269574 |
| &nbsp;&nbsp;&nbsp;**Provision for refund liability** | 175698 |  | 955743 |  |
| &nbsp;&nbsp;&nbsp;**Deferred tax expenses (benefits)** | (32074) | 754 | (66547) | (59316) |
| &nbsp;&nbsp;&nbsp;**Amortization of debt discount** |  | 165000 |  | 330000 |
| &nbsp;&nbsp;&nbsp;**Interest income** | (15999) | (15999) | (31998) | (31998) |
| &nbsp;&nbsp;&nbsp;**Stock-based compensation expense** | 707963 |  | 1201134 |  |
| &nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accounts receivable, net** | 823480 | 556793 | 359982 | 777895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other receivables** | 134954 | 382279 | (3354582) | 619372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Prepaid expenses and other current assets** | 813510 | (1737) | (204241) | (91725) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Long-term prepaid expenses** | (357666) |  | (357666) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Operating lease right of use assets and liabilities, net** | 18 | 623 | 37 | 1247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accounts payable and accrued expenses** | (1150600) | (70229) | 2269897 | (1555558) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income taxes payable** | (390612) | (223737) | (170309) | (111705) |
| **Net cash provided by operating activities** | **1481276** | **1266541** | **2008629** | **586329** |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |  |  |
| **Development of software** | (909897) | (93962) | (1613372) | (227356) |
| **Net cash used in investing activities** | **(909897)** | **(93962)** | **(1613372)** | **(227356)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |  |  |
| **Payments of deferred offering costs** | (8250) | (368910) | (106339) | (612120) |
| **Net cash used in financing activities** | **(8250)** | **(368910)** | **(106339)** | **(612120)** |
| **Increase (decrease) in cash** | 563129 | 803669 | 288918 | (253147) |
| **Cash, beginning of the period** | 7575037 | 1359534 | 7849248 | 2416350 |
| **Cash, end of the period** | 8138166 | 2163203 | 8138166 | 2163203 |
| **Supplemental disclosures of cash flow information:** |  |  |  |  |
| **Cash paid for interest** | $- | $- | $- | $- |
| **Cash paid for income taxes** | $625323 | $286252 | $625323 | $325487 |
| **Summary of noncash investing and financing activities:** |  |  |  |  |
| **Accrued deferred offering costs included in accounts payable and accrued expenses** | $- | $220961 | $- | $220961 |
| **Accrued development of software included in accounts payable and accrued expenses** | $265243 | $25817 | $265243 | $25817 |
| **Issuance of Class A common stock for service** | $1037984 | $- | $1037984 | $- |

---

**Adjusted EBITDA Reconciliation**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For Three Months Ended June 30,** | **For Three Months Ended June 30,** | **For Six Months Ended June 30,** | **For Six Months Ended June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Net income | $338007 | $630631 | $438543 | $1129223 |
| Interest (income) expenses | 133661 | (108198) | 274349 | (193564) |
| Depreciation and amortization | 134787 | 135983 | 269574 | 271966 |
| Income tax expense | 63268 | 202637 | 154466 | 388468 |
| Stock-based compensation expense |  | 707963 |  | 1201134 |
| Total net adjustments | 331716 | 938385 | 698389 | 1668004 |
| **Adjusted EBITDA** | $**669723** | $**1569016** | $**1136932** | $**2797227** |

---

**Components of Operating Results**

*Revenues*

While we generate our revenue primarily from small employers and insurance carriers, we grow our business primarily from offering solutions that streamline sales processes, enhance service delivery, and reduce the sales cycle duration for TPAs, MGUs, and Brokers. We offer our services through our three subsidiaries. Program services provided by SMR and MGU activities provided by ICE (including eDIYBS) are interdependent, as they cannot function effectively without being combined. Services provided by HI Card are an optional add-on to our other services, and cannot be offered on a standalone basis. Brokers that utilize the program services on behalf of the small employer provided by SMR and MGU activities provided by ICE, are not obligated to utilize our HI Card service. Currently ICE does not offer underwriting services as a standalone service. In the future, we may consider offering it as a standalone service.

*Cost of revenues*

 

Cost of revenues primarily consists of infrastructure costs to operate our platform such as hosting fees and fees paid to various third-party partners for access to their technology, services and amortization expenses of our capitalized internal-use software related to our platform. We mainly outsource captive management services and data services from the third-party companies. Our internal proprietary system seeks to consistently improve underwriting and services results through machine learning and data feeds. The captive management activities include introducing new carriers, conducting due diligence on carriers, conducting feasibility studies to determine the viability to be a stop-loss carrier on the platform, negotiating terms and contracts, coordinating audit requests, managing relationship with unrelated carriers and their regulators and auditor firms to ensure that our risk associated with our service offerings is minimized.

*Sales and marketing expenses*

 

Sales and marketing expenses primarily consist of personnel-related costs including salaries, stock-based compensation expense, benefits and commissions cost for our sales and marketing personnel. Sales and marketing expenses also include the costs for advertising, promotional and other marketing activities, as well as certain fees paid to various third-party for sales and customer acquisition.

*General and administrative expenses*

General and administrative expenses primarily consist of personnel-related costs and related expenses for our executives, finance, legal, human resources, technical support, and administrative personnel as well as the costs associated with professional fees for external legal, accounting and other consulting services, insurance premiums.

*Research and development expenses*

 

Research and development expenses primarily consist of personnel-related costs, including salaries, stock-based compensation expense and benefits for our research and development personnel. Additional expenses include costs related to the software development, quality assurance, and testing of new technology, and enhancement of our existing platform technology.

*Adjusted EBITDA*

 

Adjusted EBITDA represents our net income before net interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense. Adjusted EBITDA is not a measure calculated in accordance with United States Generally Accepted Accounting Principles, or GAAP. We exclude certain non-recurring or non-cash items when calculating Adjusted EBITDA, and we believe this approach provides a more meaningful measure by offering a clearer view of our underlying operational performance.

**Financial Results Summary**

**(Unaudited）**

($ in millions)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| Total revenues | $9.3 | $5.0 | 86.2% | $17.3 | $10.1 | 71.1% |
| GAAP gross margin | 67.7% | 80.5% | -12.8% | $67.3% | $80.6% | -13.3% |
| Income before income tax expense | $0.8 | $0.4 | 107.7% | $1.5 | $0.6 | 155.9% |
| Adjusted EBITDA | $1.6 | $0.7 | 134.3% | $2.8 | $1.1 | 146.0% |

---

**Investor Contact**

Investor Relations:<br> ir@healthintech.com