Q1 2026 Health In Tech Inc Earnings Call

May 13, 2026

Operator 2: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Health In Tech, Inc. Q1 2026 earnings conference call. Currently, all participants are in listen only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please go ahead.

Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Health In Tech, Inc. Q1 2026 earnings conference call. Currently, all participants are in listen only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please go ahead.

Speaker #2: Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time.

Speaker #2: Now, I will turn the call over to Lori Babcock, Chief of Staff for the company. Ms. Babcock, please go ahead. Thank you, operator, and hello, everyone.

Lori Babcock: Thank you, operator, and hello, everyone. Welcome to Health In Tech, Inc.'s Q1 2026 Earnings Conference Call. Joining us today are Mr. Tim Johnson, Chief Executive Officer, Mr. Zain Hasan, Chief Growth Officer, and Ms. Julia Qian, Chief Financial Officer. Full details of our results can be found in our earnings press release and in our related Form 10-Q to be filed with the SEC. These documents will be available on our investor relations website at healthintech.investorroom.com. As a reminder, today's call is being recorded and a replay will be available on our IR website as well. Before we continue, please note that today's discussion includes forward-looking statements made pursuant to the Safe Harbor Provisions of the US Private Securities Litigation Reform Act of 1995.

Speaker #2: Welcome to Health In Tech's first quarter 2026 earnings conference call. Joining us today are Mr. Tim Johnson, Chief Executive Officer; Mr. Zane Hazan, Chief Growth Officer; and Ms. Julia Qian, Chief Financial Officer.

Speaker #2: Full details of our results can be found in our earnings press release and in our related form, 10Q, to be filed with the SEC.

Speaker #2: These documents will be available on our investor relations website at healthintech.investorroom.com. As a reminder, today's call is being recorded and a replay will be available on our IR website as well.

Speaker #2: Before we continue, please note that today's discussion includes forward-looking statements made pursuant to the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Speaker #2: These statements are based on information available as of today and involve risks, certainties, and assumptions that could cause actual results to differ materially from those expressed or implied, including those discussed in our quarterly report on Form 10-Q for the period ended March 31, 2026, to be filed with the SEC.

Lori Babcock: These statements are based on information available as of today and involve risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied, including those discussed in our quarterly report on Form 10-Q for the period ended 31 March 2026, to be filed with the SEC. Please review the forward-looking and cautionary statement section at the end of our earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. Except as expressly required by the federal securities laws, we undertake no obligation to update and expressly disclaim the obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events.

Speaker #2: Please review the forward-looking and cautionary statements section at the end of our earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today.

Speaker #2: Except as expressly required by the Federal Securities Laws, we undertake no obligation to update an expressly disclaimed obligation to update these forward-looking statements to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events.

Speaker #2: We may also refer to certain financial measures not in accordance with generally accepted accounting principles such as adjusted EBITDA for comparison purposes only. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release.

Lori Babcock: We may also refer to certain financial measures not in accordance with generally accepted accounting principles, such as adjusted EBITDA for comparison purposes only. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. With that, I will now turn the call over to our CEO, Mr. Tim Johnson.

Speaker #2: With that, I will now turn the call over to our CEO, Mr. Tim Johnson.

Speaker #3: Thank you, Lori. And good afternoon, everybody. We appreciate you joining us today. Before discussing the quarter, I want to take a step back and frame how we are thinking about 2026.

Tim Johnson: Thank you, Lori. Good afternoon, everybody. We appreciate you joining us today. Before discussing the quarter, I want to take a step back and frame how we are thinking about 2026. As we discussed during last quarter's call, we are operating within a massive, opaque, self-funded stop-loss insurance market. Excuse me. According to industry estimates, as of 2025, roughly 80% of large businesses had adopted self-funded health plans, while only about 27% of medium and small businesses had. Self-funded healthcare plans allow businesses to manage their costs better with a lot of flexibility. However, the complexity has made implementation nearly unrealistic for many businesses. Our AI-powered solutions remove barriers and make it simple and easy.

Speaker #3: As we discussed during last quarter's call, we are operating within a massive opaque self-funded stop-loss insurance market. Excuse me. According to industry estimates as of 2025, roughly 80% of large businesses had adopted self-funded health plans.

Speaker #3: While only about 27 of median 27% of medium and small businesses had. Self-funded healthcare plans allow businesses to manage their costs better with a lot of flexibility.

Speaker #3: However, the complexity has made implementation nearly unrealistic for many businesses. Our AI-powered solutions remove barriers and make it simple and easy. The self-funded healthcare market represents nearly $1 trillion stop-loss insurance premium a year, and the total number of insurance brokers exceeds 1 million according to industry estimates.

Tim Johnson: The self-funded healthcare market represents nearly $1 trillion stop-loss insurance premium a year, and the total number of insurance brokers exceeds 1 million, according to industry estimates. In comparison, today, just about 900 distribution partners, consisting primarily of insurance brokers, drive the sale of self-funded plans and stop-loss policies through Health In Tech. Our modern information technology, in other words, our penetration of the broker pool remains well below 0.1%, which highlights the significant runway potential ahead, especially given the substantial benefits that our platform aims to deliver: convenience, customization, cost effectiveness, clarity, and condensed time to quote. 2025 was a year in which, excuse me, we demonstrated that our model could scale meaningfully and achieve strong profitability.

Speaker #3: In comparison, today, just about 900 distribution partners, consisting primarily of insurance brokers, drive the sale of self-funded plans and stop-loss policies through Health In Tech.

Speaker #3: Our modern information technology and other words, our penetration of the broker pool remains well below one-tenth of 1%, which highlights the significant runway potential ahead.

Speaker #3: Especially given the substantial benefits that our platform aims to deliver, convenience, customization, cost-effectiveness, clarity, and condensed time to quote. 2025 was the year in which, excuse me, we demonstrated that our model could scale meaningfully and achieve strong profitability.

Speaker #3: And our plan is for 2026 to be a year of deliberate investment in sales distribution and technology development to build our roster of distribution partners and expand our market presence, enhance our technology for new features, deliver new solutions, and accelerate long-term revenue growth.

Tim Johnson: Our plan is for 2026 to be a year of deliberate investment in sales distribution and technology development to build our roster of distribution partners, expand our market presence, enhance our technology for new features, deliver new solutions, and accelerate long-term revenue growth. In March 2026, we completed a private investment in public equity, a PIPE, which brought us approximately $7 million in gross proceeds that will in part support our growth initiatives. To be clear, this capital raise was not driven by an immediate need for working capital in our view as our business remains strong from a fundamental balance sheet perspective. Rather, we identified an opportunity to broaden our shareholder base with new institutional investors through a modestly sized raise that limited dilution and provided incremental fuel for growth.

Speaker #3: In March 2026, we completed a private investment in public equity, a PIPE, which was which brought us approximately $7 million in gross proceeds that will in part support our growth initiatives.

Speaker #3: To be clear, this capital raise was not driven by an immediate need for working capital in our view as our business remains strong from a fundamental balance sheet perspective.

Speaker #3: Rather, we identified an opportunity to broaden our shareholder base with new institutional investors through a modestly sized raise that limited dilution and provided incremental fuel for growth.

Speaker #3: We intend to prudently deploy this new capital across several targeted areas, including expanding our sales distribution network, adding new carrier partners to our platform, enhancing our technology, architecture, and AI development.

Tim Johnson: We intend to prudently deploy this new capital across several targeted areas, including expanding our sales distribution network, adding new carrier partners to our platform, enhancing our technology architecture and AI development, and advancing our service offerings and product development. First, expanding sales distribution. Our business scales through distribution, with brokers serving as primary channels through which employers access self-funded health plans on eDIYBS, our innovative AI-powered marketplace. In 2026, we are increasing our investment in sales and marketing to expand our broker network, deepen engagement, and build a more proactive, scalable go-to-market strategy. Historically, much of our growth has been driven organically by word of mouth and through our relatively small in-house sales team. Going forward, we plan to build our sales team and complement their efforts with more structured outreach, marketing initiatives, and direct engagement within the broker community.

Speaker #3: And advancing our service offerings and product development. First, expanding sales distribution. Our business scales through distribution with brokers serving as primary channels through which employers access self-funded health plans on EDIBs, our innovative AI-powered marketplace.

Speaker #3: In 2026, we are increasing our investment in sales and marketing to expand our broker network, deepen engagement, and build a more proactive scalable go-to-market strategy.

Speaker #3: Historically, much of our growth has been driven organically by word of mouth and through our relatively small in-house sales team. Going forward, we plan to build our sales team and complement their efforts with more structured outreach, marketing initiatives, and direct engagement within the broker community.

Speaker #3: Our chief growth officer, Zane Hassan, has more than 15 years of experience in the employee benefits and insurance industry. He is a five-time founder and a former chief executive officer who has successfully built and exited multiple companies.

Tim Johnson: Our Chief Growth Officer, Zain Hasan, has more than 15 years of experience in the employee benefits and insurance industry. He is a 5-time founder and a former chief executive officer who has successfully built and exited multiple companies. He brings a proven background in scaling revenue, leading both organic and inorganic growth initiatives, executing strategic acquisitions, and driving disciplined value creation. We will expand on growth efforts in a bit later in the call. We believe these investments are critical to capturing a larger share of a huge market in which our current penetration remains very low despite the compelling value-added benefits of our platform. Second, new carrier partners. On the other side of the platform, we will be focused on increasing the number and diversity of participating insurance carriers. I want to spend a moment explaining why adding carriers is important.

Speaker #3: He brings a proven background in scaling revenue, leading both organic and inorganic growth initiatives executing strategic acquisitions and driving disciplined, well-disciplined, value creation. We will expand on growth efforts in a bit later in the call.

Speaker #3: We believe these investments are critical to capturing a larger share of a huge market in which our current penetration remains very low, despite the compelling value-added benefits of our platform.

Speaker #3: Second, new carrier partners. On the other side of the platform, we will be focused on increasing the number of diversity of participating insurance carriers.

Speaker #3: I want to spend a moment explaining why adding carriers is important. Today, our platform generates bindable execution-ready quotes for employer groups, through rapid underwriting that is based on career-specific carrier-specific risk criteria.

Tim Johnson: Today, our platform generates bindable, execution-ready quotes for employer groups through rapid underwriting that is based on career-specific, carrier-specific risk criteria. While our technology significantly improves the speed, consistency, and efficiency in the underwriting process, overall pricing to the employer reflects a combination of factors across the value chain, such as carrier's risk assessment, changes of underlying employees' health conditions, claims expense, and administrative costs. Cost variability for the employer at renewal generally boils down to the carrier's underwriting criteria and risk assessment, which can fluctuate based on changes in claims experience or shifts in carrier's risk appetite. These fluctuations can lead to less competitive pricing or limited options for the employer at renewal, even if the broker and the employer are otherwise delighted with our platform.

Speaker #3: While our technology significantly improves the speed, consistency and efficiency in the underwriting process, overall pricing to the employer reflects a combination of factors across the value chain, such as carrier's risk assessment, changes of underlying employees, health conditions, claims expense, and administrative costs.

Speaker #3: Cost variability for the employer at renewal generally boils down to the carrier's underwriting criteria and risk assessment, which can fluctuate based on changes in claims experience or shifts in carrier's risk appetite.

Speaker #3: These fluctuations can lead to less competitive pricing or limited options for the employer at renewal, even if the broker and the employer are otherwise delighted with our platform.

Speaker #3: By expanding our carrier network, we can provide brokers with greater underwriting perspectives for the same employer group, increasing the likelihood of finding a competitive and suitable option within our platform at renewal.

Tim Johnson: By expanding our carrier network, we can provide brokers greater underwriting perspectives for the same employer group, increasing the likelihood of finding a competitive and suitable option within our platform at renewal. In practical terms, more carriers means more choice for brokers, better alignment with employer needs, and ultimately a higher probability of successful placement, which we believe will drive greater platform utilization, enhanced employer stickiness, and stronger revenue growth for Health In Tech. Third, Health In Tech's next-generation technology architecture and AI development. Sri Rajagopalan, our Chief Technology Officer, has spent the majority of his career at SAP and IBM, two of the world's leading enterprise software companies, where he held senior leadership roles in enterprise architecture and large-scale platform engineering. His experience spans global mission-critical systems, serving complex enterprise clients across multiple industries.

Speaker #3: In practical terms, more carriers means more choice for brokers, better alignment with employer needs, and ultimately a higher probability of successful placement, which we believe will drive greater platform utilization and enhanced employer stickiness and stronger revenue growth for Health In Tech.

Speaker #3: Third, Health In Tech's next-generation technology architecture and AI development. Sri Rajmangalan, our chief executive excuse me, chief technology officer, has spent the majority of his career at SAP and IBM, two of the world's leading enterprise software companies, where he held senior leadership roles in enterprise architecture and large-scale platform engineering.

Speaker #3: His experience spans global mission-critical systems, serving complex enterprise clients across multiple industries. As we expand our AI-enabled underwriting and benefits administration platforms, Sri will strengthen our core technology foundation, enhancing scalability, data intelligence, cybersecurity, and operational resilience.

Tim Johnson: As we expand our AI-enabled underwriting and benefits administration platforms, Sri will strengthen our core technology foundation, enhancing scalability, data intelligence, cybersecurity, and operational resilience. Under Sri's leadership, we announced in March 2026, we engaged Ciklum, an Amazon Web Services advanced tier service partner, to expand both the front-end and back-end functionality of our technology platform. Our partnership with Ciklum is off to a strong start. Together, we are implementing a more integrated technology environment while streamlining data infrastructure and reporting processes.

Speaker #3: Under Sri's leadership, we announced in March 2026, we engaged Ciklam and Amazon web-based service advanced tier service partner to expand both the front and backend functionality of our technology platform.

Speaker #3: Our partnership with Ciklam is off to a strong start. Together, we are implementing a more integrated technology environment while streamlining data infrastructure and reporting processes.

Speaker #3: We expect to achieve enhanced platform capabilities, administrative functions that can aid our expansion into larger employer markets, improved integration of front- and back-end workflows, consolidating quoting, underwriting, administration, and analytics into a unified platform, and, lastly, advanced data and operational reporting capabilities to deliver deeper insights and improved decision-making for brokers.

Tim Johnson: We expect to achieve enhanced platform capabilities, administrative functions that can aid our expansion into larger employer markets, improved integration of front and back-end workflows, consolidating quoting, underwriting, administration, and analytics into a unified platform. Lastly, an advanced data and operational reporting capabilities to deliver deeper insights and improve decision-making for brokers, third-party administrators, TPAs, managing general underwriters, carriers, and employer end-to-end clients. Fourth, advancing services and product development. To begin, I'm pleased to highlight that starting in January, we expanded our service scope with the launch of our enhanced self-funded plan administration offering. This new model delivers pre-configured end-to-end self-funded health benefit solutions that bundle plan design, administration, and stop-loss coverage into a single streamlined framework.

Speaker #3: Third-party administrators, TPAs, managing general underwriters, carriers, and employer end-to-end clients. Fourth, advancing services and product development. To begin, I'm pleased to highlight that, starting in January, we expanded our service scope with the launch of our enhanced self-funded plan administration offering.

Speaker #3: This new model delivers pre-configured, end-to-end self-funded health benefit solutions that bundle plan design, administration, and stop-loss coverage into a single streamlined framework. With years of experience, we have developed a comprehensive suite of more than 100 designed, customized plans, and these create our curated bundle and are directly supported by a network of specialized administrative vendors, enabling us to deliver consistent, high-quality solutions while maintaining flexibility to meet specific employer needs.

Tim Johnson: With years of experience, we have developed a comprehensive suite of more than 100 designed customized plans, and these are curated, bundled, and directly supported by a network of specialized administrative vendors, enabling us to deliver consistent, high-quality solutions while maintaining flexibility to meet specific employer needs. This also reflects an evolution in how we engage with vendors. Historically, vendors primarily accessed our platform as independent participants, while our role was focused on providing infrastructure and selecting appropriate vendors. We are now moving toward a more integrated and actively managed model where we curate, bundle, and manage the vendors that comprise a self-funded health plan as part of a broader end-to-end solution. As of March 2026, these pre-configured options address the majority of employer use cases and can be rapidly deployed, significantly reducing plan design and administrative complexity.

Speaker #3: This also reflects an evolution in how we engage with vendors. Historically, vendors primarily accessed our platform as independent participants, while our role was focused on providing infrastructure and selecting appropriate vendors.

Speaker #3: We are now moving toward a more integrated and actively managed model, where we curate, bundle, and manage the vendors that comprise a self-funded health plan as part of a broader end-to-end solution.

Speaker #3: As of March 2026, these pre-configured options address the majority of employer use cases and can be rapidly deployed, significantly reducing plan design and administrative complexity.

Speaker #3: For our distribution partners, this translates into a more effective sales process. By taking a more hands-on approach to vendor management, we gain greater visibility into vendor performance, allowing us to continuously evaluate refine and improve the quality of our network.

Tim Johnson: For our distribution partners, this translates into a more effective sales process. By taking a more hands-on approach to vendor management, we gain greater visibility into vendor performance, allowing us to continuously evaluate, refine, and improve the quality of our network. Over time, we believe this will help us build a best-in-class vendor ecosystem, strengthen platform differentiation, and support higher conversion and retention across our marketplace. In addition to expanding our service model, we recently rolled out a significant update to our eDIYBS platform, designed to make the quoting, underwriting, and communication process faster, more transparent, and more efficient for brokers. This update includes a refreshed platform interface, improved workflow design, enhanced census insights, expanded large group quoting functionality, improved underwriting status visibility, automated experience data parsing, AI-driven risk insights, and broker-to-underwriter messaging directly within the platform.

Speaker #3: Over time, we believe this will help us build a best-in-class vendor ecosystem, strengthen platform differentiation, and support higher conversion and retention across our marketplace.

Speaker #3: In addition to expanding our service model, we recently rolled out a significant update to our EDIBS platform. Designed to make the quoting, underwriting, and communication process faster, more transparent, and more efficient for brokers.

Speaker #3: This update includes a refreshed platform interface, improved workflow design, enhanced census insights, expanded large group quoting functionality, improved underwriting status visibility, automated experience data parsing, AI-driven risk insights, and broker-to-underwriter messaging directly within the platform.

Speaker #3: These enhancements are important because they directly address many of the friction points that have historically slowed down the self-funded quoting and underwriting process. For example, our enhanced census insights capability helps brokers identify data quality and completeness issues before submission, which can reduce back-and-forth and help minimize underwriting delays.

Tim Johnson: These enhancements are important because they directly address many of the friction points that have historically slowed down the self-funded quoting and underwriting process. For example, our enhanced census insights capability helps brokers identify data quality and completeness issues before submission, which can reduce back and forth and help minimize underwriting delays. While our platform already supports large group quoting, the latest enhancements improve the workflow around larger and more complex cases, including better handling of census data, experience data, and underwriting communication. We have also introduced broker-to-underwrite messaging. This keeps communications, files, and updates tied directly to each opportunity rather than scattered across disconnected email threads. Early feedback from the brokers has been very positive, particularly around the new messaging feature and overall workflow improvements. Brokers have responded well to having communications, files, and updates tied directly to each opportunity rather than managed through disconnected email chains.

Speaker #3: While our platform already supports large group quoting, the latest enhancements improve the workflow around larger and more complex cases, including better handling of census data, experience data, and underwriting communication.

Speaker #3: We have also introduced broker-to-underwrite messaging. This keeps communications files and updates tied directly to each opportunity rather than scattered across disconnected email threads. Early feedback from the brokers has been very positive, particularly around the new messaging feature and overall workflow improvements.

Speaker #3: Brokers have responded well to having communications files and updates tied directly to each opportunity, rather than managed through disconnected email chains. We are also hearing positive feedback on the RFP, or request for proposal, and document upload automation functions.

Tim Johnson: We are also hearing positive feedback on the RFP or request for proposal and document upload automation functions, with brokers noting that the process feels smoother, requires less feedback, less feedback and forth, and reduces manual steps. While the enhanced Census Insight tool continues to be well-received, the strongest reaction so far has been around the broader efficiency improvements across the platform. Brokers are noticing the impact immediately in their day-to-day workflow, which we view as an encouraging sign for adoption and continued platform engagement. Overall, these updates reflect our broader strategy of continuously enhancing the eDIYBS platform to reduce manual work, improve visibility, and support faster, more accurate quoting and underwriting outcomes. We believe these capabilities will further strengthen broker adoption, improve partner productivity, and support scalability within our marketplace. Among new offerings currently under development, we're making significant progress with our 3-year rate stabilization program.

Speaker #3: With brokers noting that the process feels smoother, requires less feedback and forth, and reduces manual steps. While the enhanced Census Insight tool continues to be well received, the strongest reaction so far has been around the broader efficiency improvements across the platform.

Speaker #3: Brokers are noticing the impact immediately in their day-to-day workflow, which we view as an encouraging sign for adoption and continued platform engagement. Overall, these updates reflect our broader strategy of continuously enhancing the EDIBS platform to reduce manual work, improve visibility, and support faster more accurate quoting and underwriting outcomes.

Speaker #3: We believe these capabilities will further strengthen broker adoption, improve partner productivity, and support scalability within our marketplace. Among new offerings currently under development, we're making significant progress with our three-year rate stabilization program.

Speaker #3: We expect to complete market testing of this program late in the second quarter into the third quarter of 2026. This program is designed to address pricing volatility and provide greater cost predictability for employer groups, which we believe is a key differentiator in the market.

Tim Johnson: We expect to complete market testing of this program late in Q2 into Q3 of 2026. This program is designed to address pricing volatility and provide greater cost predictability for employer groups, which we believe is a key differentiator in the market. Governmental agencies and municipalities, among many others, stand out as a logical candidate for our three-year rate stabilization program. In Q2 of 2026, we anticipate commencing initial beta testing of a new data-driven solution that integrates psychological data and claims data to generate actionable value insights for partners in our ecosystem and business employer end-to-end clients. I am incredibly excited about the growth journey in front of us.

Speaker #3: Governmental agencies and municipalities, among many others, stand out as a logical candidate for our three-year rate stabilization program. In addition, in the second quarter of '26, we anticipate commencing initial beta testing of a new data-driven solution that integrates psychological data and claims data to generate actionable value insights for partners in our ecosystem and business employer end-to-end clients.

Speaker #3: I am incredibly excited about the growth journey in front of us. We are addressing a vast market opportunity in self-funded health insurance with a comprehensive strategy to expand our ecosystem and democratize self-funded health insurance for all employers regardless of size.

Tim Johnson: We are addressing a vast market opportunity in self-funded health insurance with a comprehensive strategy to expand our ecosystem and democratize self-funded health insurance for all employers, regardless of size. Based on our current operating momentum and growing pipeline, we are reiterating our guidance for full year 2026 revenue of between $45 million and $50 million, representing approximately 35% to 50% year-over-year growth. Before Julia reviews our Q1 financial results, I'll turn it over to Zain, who will provide some additional detail on how we are scaling our sales and distribution strategy.

Speaker #3: Based on our current operating momentum and growing pipeline, we are reiterating our guidance for full-year 2026 revenue of between $45 million and $50 million, representing approximately 35% to 50% year-over-year growth.

Speaker #3: Before Julia reviews our first quarter financial results, I'll turn it over to Zane, who will provide some additional data and additional detail on how we are scaling our sales and distribution strategy.

Speaker #2: Thank you, Tim. From a sales perspective, one of our largest opportunities remains the significant largely untapped broker and TPA distribution market. For many potential partners have yet to actively engage with our platform.

Zain Hasan: Thank you, Tim. From a sales perspective, one of our largest opportunities remains a significant, largely untapped broker and TPA distribution market, where many potential partners have yet to actively engage with our platform. We make it extremely easy for brokers and TPAs to join and onboard onto our platform, which they use at no cost. Unlike traditional models that rely on building large in-house sales teams, we leverage a capital-light, partner-driven distribution strategy. In 2025, with a relatively small in-house sales team of 6 professionals, we delivered $33 million in revenue. With the additional capital raised through our PIPE financing, we plan to further invest in and selectively expand our in-house sales team and broaden distribution partners to support continued growth.

Speaker #2: We make it extremely easy for brokers and TPAs to join and onboard onto our platform, which they use at no cost. Unlike traditional models that rely on building large in-house sales teams, we leverage a capital-light partner-driven distribution strategy.

Speaker #2: In 2025 and with a relatively small in-house sales team of six professionals, we delivered 33 million in revenue. With the additional capital raised through our pipe financing, we plan to further invest in and selectively expand our in-house sales team and broaden distribution partners to support continued growth.

Speaker #2: Importantly, our in-house sales team is primarily focused on onboarding and activating distribution partners, rather than directly selling into employer accounts. This allows us to scale efficiently without significant fixed cost expansion.

Zain Hasan: Importantly, our in-house sales team is primarily focused on onboarding and activating distribution partners rather than directly selling into employer accounts, which allows us to scale efficiently without significant fixed cost expansion. This efficiency is driven by our approach, which is empowering distribution partners with technology that significantly reduces their cost of doing business. By replacing a manual email-driven process with a fully digitized and streamlined workflow, we save brokers a substantial amount of time and improve their ability to serve clients. Adding more carriers and building an AI-driven solution to automate the length of manual processes continue to gain traction. As we continue to expand our technological capabilities, we intend to become the go-to marketplace for brokers to come to and offer a one-stop shop for the entire renewal process of a self-funded health plan.

Speaker #2: This efficiency is driven by our approach, which is empowering distribution partners with technology that significantly reduces their cost of doing business. By replacing a manual, email-driven process with a fully digitized and streamlined workflow, we save brokers a substantial amount of time and improve their ability to serve clients.

Speaker #2: In addition, adding more carriers and building an AI-driven solution to automate the length of manual processes continue to gain traction. As we continue to expand our technological capabilities, we intend to become the go-to marketplace for brokers to come to and offer a one-stop shop for the entire renewal process of a self-funded health plan.

Speaker #2: Scaling our expanded capabilities in the large employer accounts would increase our average contract value of a client. While bringing in additional carriers should improve close rates and renewal rates.

Zain Hasan: Scaling our expanded capabilities in the large employer accounts would increase our average contract value of a client, while bringing in additional carriers should improve close rates and renewal rates. At the same time, we are investing in analytics capabilities that provide brokers with greater visibility into their quoting pipeline, including win-loss trends, response times, and actionable opportunities. This represents a meaningful shift toward a more data-driven sales management. While the industry has historically been relationship-driven, we see a significant opportunity to scale beyond that through more structured engagement. Our go-to-market strategy focuses on increasing direct broker engagement through conferences, through targeted outreach, and brand awareness initiatives, creating a flywheel that drives more platform usage and increases deals per sales rep.

Speaker #2: At the same time, we are investing in analytics capabilities that provide brokers with greater visibility into their quoting pipeline. Including win-loss trends response times and actionable opportunities.

Speaker #2: This represents a meaningful shift toward a more data-driven sales management. While the industry has historically been relationship-driven, we see a significant opportunity to scale beyond that through more structured engagement.

Speaker #2: Our go-to-market strategy focuses on increasing direct broker engagement through conferences, targeted outreach, and brand awareness initiatives. We're creating a flywheel that drives more platform usage and increases deals per sales rep. We're working on building relationships whereby our tech stack becomes the infrastructure layer for how employee benefit brokers and TPAs serve their self-funded clients.

Zain Hasan: We're working on building relationships whereby our tech stack becomes the infrastructure layer for how employee benefit brokers and TPAs serve their self-funded clients, a new strategy for distribution that we are very optimistic about. We'll be active at key industry conferences where our target buyers are concentrated, using those as catalysts for executive-level engagement and pipeline generation. Overall, while we are still early in this process, we are encouraged by the consistency we are seeing, and we believe we are building a durable, scalable distribution engine that can support long-term growth without requiring a linear headcount expansion. I'll now turn it over to Julia.

Speaker #2: A new strategy for distribution that we are very optimistic about. We'll be active at key industry conferences where our target buyers are concentrated, using those as catalysts for executive-level engagement and pipeline generation.

Speaker #2: Overall, while we are still early in this process, we are encouraged by the consistency we are seeing. And we believe we are building a durable, skilled distribution engine that can support long-term growth without requiring linear headcount expansion.

Speaker #2: I'll now turn it over to Julia.

Speaker #3: Thank you, Zane. And good afternoon, everybody. I appreciate you joining us today. Before we move on, I'd like to highlight an important update on how we present our business metrics.

Julia Qian: Thank you, Zain. Good afternoon, everybody. I appreciate you joining us today. Before we move on, I'd like to highlight an important update on how we present our business metrics, which we believe better reflect the underlying growth and visibility of our platform. We are introducing a new KPIs, key performance indicator. I will first touch on contracted revenue, which represents contractually committed revenue on the active policies. As of measurement day, this is expected to be recognized in future periods. Our policy are typically written for terms of 12 months, and under GAAP accounting, the reported revenue is recognized over the lifetime of the policy. For example, if a new employer is on board and have a policy effect on 1 February 2026, under 12 months policy, we recognize the revenue from the contract months from February 26 through January 2027.

Speaker #3: Which we believe better reflected the underlying growth and visibility of our platform. We are introducing a new KPIs key performance indicator. I will first touch on contracted revenue, which represents contractually committed revenue under active policies.

Speaker #3: As our measurement day, this is expected to be recognized in future periods. Our policies are typically written for terms of 12 months. And on the GAAP accounting, the reported revenue is recognized over the lifetime of the policy.

Speaker #3: For example, if a new employee is onboard and has a policy effective on February 1, 2026, under a 12-month policy, we recognize the revenue from the contract months from February 2026 through January 2027.

Speaker #3: In this scenario, we are only two months on revenue and recognized in the first quarter 26 reporting period. The remaining 10 months of the contractual committed revenue will be recognized in the non-remaining months of 26 and the one month in 27.

Julia Qian: In this scenario, where only 2 months of revenue are recognized in the Q1 2026 reporting period, the remaining 10 months of the contractual committed revenue will be recognized in the 9 remaining months of 2026 and the 1 month in 2027. By reporting contracted revenue, we are providing investors and shareholder with the greater transparency and visibility into the future revenue that is already locked in, that is contractually secured but not yet recognized. We believe these changes aligns our disclosure more closely with how we manage the business internally and provides investors with a useful metric to evaluate the future revenue visibility. As of 31 March 2026, our contracted revenue for the remaining 3 quarters of this year total will be around $22.9 million. In addition to contracted revenue, we are now disclosing Platform Placed Plan Value or PPPV.

Speaker #3: By reporting contracted revenue, we are providing investors and shareholders with the greater transparency and visibility into the future revenue that is already locked in.

Speaker #3: That is contractually secured, but not yet recognized. We believe these changes align our disclosure more closely with how we manage the business internally and provide investors with a useful metric to evaluate the future revenue visibility.

Speaker #3: As of March 31st, our contract revenue for the remaining three quarters of this year total will be around 22.9 million. In addition to contract revenue, we are now disclosing platform-based plan value, or PPPV.

Speaker #3: PPPV represents the aggregate contractual value of self-funded health plan with the stop-loss insurance. That is self-funded stop-loss plans. Placed through the company's platform. That covering the duration of the plan's contractual term.

Julia Qian: PPPV represents the aggregate contractual value of self-funded health plan with the stop-loss insurance that is self-funded stop-loss plans placed through the company's platform covering the duration of the plan's contractual term. The contractual term is typical 12 months from the plan's effective date. In Q1 2026, our platform placed $82 million self-funded stop-loss plans. Platform placed the value reflected the full value of the active policies facilitated through our platform, including the premium claims fund and administrative fees. We believe that PPPV provides a consistent, comparable measurement of total ecosystem value flow through our platform. As our business continue to scale, particularly with expansion into larger employee groups and a more complex plan structure, we expect the platform placed value to increase with a faster rate, reflecting great depth of engagement in the higher value relationship.

Speaker #3: The contractual term is typically 12 months from the plan's effective day. In the first quarter of 2026, our platform placed 82 million self-funded stop-loss plans.

Speaker #3: Platform placed the value reflected the full value of the active policies facilitated through our platform, including the premium, cleanse fund, and administrative fees. We believe that PPPV provides a consistent comparable measurement of the total ecosystem value flow through our platform.

Speaker #3: As our business continues to scale, particularly with expansion into larger employee groups and the more complex plan structure, we expect the platform placed the value to increase with the fast rate reflecting great depth of engagement and the higher value relationship.

Julia Qian: Historically, we have disclosed enrolled employees as the operating metric. Enrolled employee represents individual or family cover under a company, the self-funded group plan. After careful consideration, we have decided to discontinue this metric as we believe Platform Placed Plan Value and the contracted revenue better represent our business. The carriers in our platform offer 4 type of coverages, employees only, employee plus spouse, employee plus children, and the family. We have different plans, bronze, silver, gold, and platinum. When previously calculate our now discontinued enrolled employee metric, a single individual employee versus a family, including an employee as well as their spouse and children, could each be count as 1 enrolled employee. Although the difference on the cost and the premium between these two can be 3 times or 4 times difference.

Speaker #3: Historically, we have disclosed enrolled employees as the operating metric. Enrolled employee represents individual or family cover under accompanied self-funded group plan. After careful consideration, we have decided to discontinue this metric.

Speaker #3: As we believe, platform placed the value and the contractual revenue better represent our business. As a carriers in our platform, offer four types of coverages.

Speaker #3: Employees only, employees plus spouse, employee plus children and the family, so then we have different plans bronze, silver, gold, and platinum. When previously calculated, our new discounting our now discontinued enrolled employee metric, a single individual employee versus a family including an employee as well as their spouse and children could each become as one enrolled employee.

Speaker #3: Although the difference on the cost and the premium between these two can be three times or four times difference. Furthermore, the employee can choose bronze where offer a lower monthly premium and a higher deductible cost.

Julia Qian: Furthermore, the employee can choose bronze will offer a lower monthly premium and a higher deductible cost, versus the platinum offer higher premium and the lowest deductible. These two enrolled employee will have dramatically different premium. Moreover, an employee's enrolled employee count can change during the period due to the factors such as resignation, layoff, new hire, family situation change, birth, and death. When we continue to expand our business into a large size of the employees and grow our footprint aggressively. We believe the enrolled employee metric could not fully present complexity and the dynamic of underlying business. Move on. As Tim mentioned, we intend for this to be a year of a target investment as we scale our distribution network, expand our product capability, and position the company for the long-term growth.

Speaker #3: Versus the platinum, offer a higher premium and the lowest deductible. These two enrolled employees will have genetically different premiums; moreover, an employee's enrolled employee count can change during the period due to the fact such as resignation, layoff, new hire, family situation change.

Speaker #3: Birth and the death, even with continued when we continue to expand our business into a large size of the employees. And the growth of footprint aggressively.

Speaker #3: We believe the enrolled employee metric could not fully present complexity and the dynamic of underlying business. Move on. As Tim mentioned, we intend for this to be a year of target investment as we scale our distribution network, expand our product capability, and position the company for the long-term growth.

Speaker #3: As a result, certain financial metrics in the near term reflect this intentional investment pace. Let me talk about the revenue. For the first quarter of 26, the total revenue was 8.8 million, representing approximately 9% growth year over year.

Julia Qian: As a result, certain financial metric in the near term reflect this intentional investment pace. Let me talk about the revenue. For the first quarter of 2026, the total revenue was $8.8 million, representing approximately 9% growth year over year. As of March, we estimated $31.7 million in revenue will be reported in the full year 2026 fiscal year. With $8.8 million reporting Q1 and $22.9 million will be recognized in the report in the remaining of 2026. This estimate figure is represented before monthly adjustments, so actually recognize the revenue for the remaining 2026 may differ slightly. While growth in the quarter was more moderate compared to the prior periods, this reflects the current stage of the scaling of the business rather than any change in underlying demand or platform scalability.

Speaker #3: As of March, we estimate $31.7 million in revenue will be reported in the full year '26 fiscal year. With $2.8 million reporting first quarter and the $22.9 million will be recognized in the report in the remaining of '26.

Speaker #3: These estimates figure is represented before monthly adjustment. So actually recognize the revenue for the remaining 2026 mid-year for slightly. While growth in the quarter was more moderate compared to the prior periods, this reflected the current stage of the scaling out the business rather than any change in underlying demand or platform scalability.

Speaker #3: At this stage, revenue growth is more close tied to the expansion of distribution network. The wrapping up of the broker activity and the conversion of the pipeline opportunity in which we are actively invested in during 26.

Julia Qian: At this stage, revenue growth is more close tied to the expansion of distribution network, the ramping up of the broker activity, and the conversion of the pipeline opportunity in which we are actively investing in during 2026. Turning to profitability. Adjusted EBITDA for the first quarter was -USD 1.3 million compared to +USD 1.2 million in the prior year period. The net loss was USD 1.6 million compared to the net income of the USD half million in the prior period. This reflect our planned increase in the investment across key growth initiatives, particularly in sales and the marketing and the product development. Turn to the operating expenses. Total operating expenses for the quarter was USD 6.7 million, approximately 76% of the revenue, compared to USD 4.9 million or 41% of the revenue in the prior year.

Speaker #3: Turning to profitability, adjusted EBITDA for the first quarter was negative $1.3 million, compared to positive $1.2 million in the prior year. The net loss was $1.6 million, compared to net income of half a million in the prior period.

Speaker #3: This reflects our planned increase in the investment across key growth initiatives, particularly in sales and the marketing and the product development. Thanks to the operating expenses.

Speaker #3: Total operating expenses for the quarter were $6.7 million, approximately 76% of revenue. Compared to $4.9 million, or 41% of revenue in the prior year, the breakdown here gives you further detail.

Julia Qian: The breakdown here gives you further detail. Sales and the marketing expenses were $2.3 million, representing approximately 26% of the revenue. The investment was doubled compared to $1.1 million or 14% of the revenue of the prior year 2025. This increase reflects our deliberate investment in expanding our sales distribution footprint, as Zain Hasan explained, including the broker marketing and building out a more scalable go-to-market infrastructure so we can really tap it on the massive broker e-ecosystem. General and administrative expenses were $3.5 million, representing approximately 39% of the revenue compared to $3.2 million or 41% of revenue in the prior year.

Speaker #3: Sales and marketing expenses were $2.3 million, representing approximately 26% of revenue. The investment was doubled compared to $1.1 million, or 14% of revenue, in the prior year 25.

Speaker #3: This increase reflects our deliberate investment in expanding our sales distribution footprint, as explained. Including the broker marketing and the building out a more scalable go-to-market infrastructure so we can massive broker ecosystem.

Speaker #3: General and administrative expenses were $3.5 million, representing approximately 39% of revenue, compared to $3.2 million, or 41% of revenue in the prior year.

Speaker #3: This increase primarily reflects we continue to build a stronger team and we did manage lower percentage of the revenue in to be more scalable when we grow.

Julia Qian: This increase primarily reflects we continue to build a stronger team. We did manage lower percentage of the revenue to be more scalable when we grow. Research and development expenses were $0.9 million, representing approximately 10% of the revenue compared to $0.5 million or 7% of revenue in the prior year. This increase reflects continued investment in our technology capability and the new product initiative, including data-driven solution as well as ongoing enhancement to our underwriting and the workflow platform. In addition to these expenses in R&D investment, we capitalized approximately $0.6 million of the software development during Q1.

Speaker #3: Research and the development expenses were 0.9 million, representing approximately 10% of the revenue compared to 0.5 million or 7% of the revenue in the prior year.

Speaker #3: This increase reflects continued investment in our technology capability and the new product initiative, including data-driven solution as well as ongoing enhancement to our underwriting and the workflow platform.

Speaker #3: In addition to these expenses in R&D investment, we capitalized approximately 0.6 million of the software development during the first quarter. That's approximately 1.5 million was spent related to tech, out of which 0.6 million was reflected to developing new feature and new solution.

Julia Qian: Thus, approximately $1.5 million was spent related to tech, out of which $0.6 million was reflected to developing new feature and new solution, compared to $1.4 million and the $0.9 million, respectively, in prior year. Overall, the increase in operating expenses reflect a purposeful shift in capital allocation towards growth initiative. We are investing ahead of the revenue to expand the distribution, enhance our product capabilities, and position the company to capture a large share of the significant market opportunity. Importantly, we expect this elevated level of investment to continue throughout 2026 as we execute on our strategy to scale the business and to build a more robust growth engine. Turning to our cash balance, we ended the quarter with $10.3 million cash and cash equivalent, reflecting the proceeds from our recent PIPE financing.

Speaker #3: Compared to 1.4 million and 0.9 million, respectively, in prior year. Overall, the increase in operating expenses reflects a purposeful shift in capital allocation towards growth initiative.

Speaker #3: We are investing ahead of the revenue to expand the distribution, enhance our product capabilities, and position the company to capture a large share of the significant market opportunity.

Speaker #3: Importantly, we expect this elevated level of investment to continue throughout 2026, as we execute on our strategy to scale the business and build a more robust growth engine.

Speaker #3: Turning to our cash balance, we ended the quarter with 10.3 million in cash and the cash equivalent. Reflecting the perceived from our recent pipeline financing.

Speaker #3: We continue to maintain a disciplined approach to capital allocation, with a focus on investing in the areas that we believe will deliver long-term growth and shareholder value.

Julia Qian: We continue to maintain a disciplined approach to capital allocation with a focus on investing in the area that we believe will deliver long-term growth and shareholder value. In summary, we continue to scale distribution, increase platform adoption, and expand our product offerings. We expect to drive high growth and improve operating leverage over time. We remain confident in the long-term trajectory of the business and our ability to scale to execute on our growth strategy. With that, now I turn it back to the operator for Q&A.

Speaker #3: In summary, we continue to scale distribution, increase platform adoption, and expand our product offerings. We expect to drive high growth and improve operating leverage over time.

Speaker #3: We remain confident in the long-term trajectory of the business and our ability to scale to execute on our growth strategy. With that, now I turn it back to the operator for Q&A.

Speaker #1: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad.

Operator 2: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star then two. The first question comes from George Sutton with Craig-Hallum. Please go ahead.

Operator: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star then two. The first question comes from George Sutton with Craig-Hallum. Please go ahead.

Speaker #1: If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star, then two.

Speaker #1: The first question comes from George Sutton with Craig Allen. Please go ahead.

Speaker #3: Thank you. And Jane, I'm excited to have you on the call. I wondered if you could walk through some of these key expansion areas, expanding sales, broadening the marketing activities, developing the new marketplace, and enhancing the tech architecture.

George Sutton: Thank you. Zain, I am excited to have you on the call. I wondered if you could walk through some of these key expansion areas, you know, expanding sales, broadening the marketing activities, developing the new marketplace, and enhancing the tech architecture. Can you just give us a picture of the progress that you are seeing? You had mentioned broker feedback that you have received thus far. I just wondered if you can go into more detail on those things.

Speaker #3: Can you just give us a picture of the progress that you're seeing? You had mentioned broker feedback that you've received thus far. I just wondered if you can go into more detail on those things.

Speaker #4: Yeah, sure. And I appreciate the kind remarks. Essentially, it's just a matter of—we're, like Tim mentioned, we've penetrated a very, very small portion of the overall broker market.

Zain Hasan: Yeah, sure, and I appreciate the kind remarks. Essentially, it's just a matter of we Like Tim mentioned, we penetrated a very, very small portion of the overall broker market. We've hired, our intentions to hire 2 to 3 sales reps that will focus on outbound, to just drive a overall marketing message that allows brokers to have a better understanding of what we do. If we increase the brokers that have visibility into our platform, we've gotten a lot of positive feedback and are very optimistic that that'll lead to the growth.

Speaker #4: And so we've hired our intentions to hire two to three sales reps that will focus on outbound and then to just drive overall marketing message that allows brokers to have a better understanding of what we do.

Speaker #4: And if we increase the brokers that have visibility into our platform, we've gotten a lot of positive feedback in a very optimistic that'll lead to the growth.

Speaker #3: So you mentioned you've rolled out this 100 preconfigured plan set of options. And I know that greatly increases the simplicity versus the complexity of the traditional platforms.

George Sutton: You mentioned, you've rolled out this 100 pre-configured plan set of options, and I know that greatly increases the simplicity versus the complexity of the traditional platforms. Can you just walk through with us kind of how that's working in the market thus far?

Speaker #3: Can you just walk through with us kind of how that's working in the market thus far?

Speaker #4: Sure. So, I mean, just taking a step back—for brokers, as they're looking at fully insured health plans or the health plans that we provide through self-funded—a lot of the brokers have a hard time with self-funded health plans through our platform, though.

Zain Hasan: Sure. I mean, just taking a step back for brokers, as they're looking at fully insured health plans or, you know, health plans that we provide through self-funded, a lot of the brokers have a hard time with self-funded health plans. Through our platform, though, it makes it extremely easy. The pre-configured health plan is, you know, it's a proven playbook for the health insurance world, where you have package plans that make it easier for then brokers to be able to evaluate those rates against whatever their employer's renewal is.

Speaker #4: It makes it extremely easy and the preconfigured health plans is a proven playbook for the health insurance world where you have package plans that make it easier for them brokers to be able to evaluate those rates against whatever their employer's renewal is.

Speaker #3: So Tim, our discussions with industry folks, there's a lot of potential excitement around your three-year rate stabilization plan. I know that's coming later in the year.

George Sutton: Tim, you know, our discussions with industry folks, there's a lot of potential excitement around your three-year rate stabilization plan. I know that's coming later in the year. I wondered if you could just address kind of the progress you've made there. Are you indeed seeing the kind of potential demand that we're hearing about? Julie, I wondered if you could just give us any sense if anything's built in for the back H2 of the year from that three-year plan.

Speaker #3: I wondered if you could just address kind of the progress you've made there. Are you indeed seeing the kind of potential demand that we're hearing about?

Speaker #3: And Julia, I wondered if you could just give us any sense if anything's built in for the back half of the year from that three-year plan.

Speaker #4: Yeah, thanks, George. Thanks for the question. As far as the demand, we're starting to see a lot of potential coming through. We have modified the program to where it's agnostic to, really, the carriers.

Julia Qian: Yeah. Thanks, George. Thanks for the question. As far as the demand, we're starting to see a lot of potential coming through. We have modified the program to where it's agnostic to really the carriers.

Tim Johnson: Yeah. Thanks, George. Thanks for the question. As far as the demand, we're starting to see a lot of potential coming through. We have modified the program to where it's agnostic to really the carriers.

Tim Johnson: We've changed some things in the plan to make it more open so that we can give a financial presentation or proposal to just about anybody who is self-funded now. It's even getting spread more broad. We are really just now getting out there. Understanding self-funded health plans, they look 3 months. The larger groups do. They look 3 to 6 months out. We're seeing a lot of people taking a look at it. We're starting to give our proposals on those groups now. I hope that we have one. We think we have one, but until the ink is wet on the paper, I will tell you that we are anticipating at least one in Q2.

Speaker #4: We've changed some things in the plan to make it more open for more open so that we can give a financial presentation or proposal to just about anybody who is self-funded now.

Speaker #4: So it's even getting spread more broad. We are really just now getting out there. I mean, understanding self-funded health plans, they look three months.

Speaker #4: The larger groups do. They look three to six months out. So we're seeing a lot of people taking a look at it. We're starting to give our proposals on those groups now.

Speaker #4: I hope that we have one. We think we have one, but until the ink is wet on the paper, I will tell you that we are anticipating at least one in the second quarter.

Speaker #5: Yeah. So, George, from the financial perspective, on our forecast, we're very conservative. We were thinking about only starting from the fourth quarter we will be able to generate some sort of sales because a large group usually, they purchase these types of plans toward the end of the year.

Julia Qian: Yeah. George, from the financial perspective on our forecast, we very conservative. We were thinking about only start from Q4, we will be able to generate some sort of the sales because a large group, usually they purchase these type of plans into the end of the year. We continues to make a progress, and the couple of quotes looks like we'll be able to get that done in Q2. As Tim said, before we make the ink, we do not know. We are very sure by the time we will make the press release and announce to the market. As we continue, just reiterate, it still is a test, still getting a lot of traction. That's why we continues to refine the program based on the feedback.

Speaker #5: But we continue to make progress, and they couple of quotes looks like will be able to get that done in the second quarter. But as Tim said, before we make the ink, we do not know.

Speaker #5: And then very sure by the time we will make the press release and announce to the market. So as we continue just reiterate, it still is a test.

Speaker #5: Still getting a lot of traction. That's why we continue to refine the program based on the feedback.

Speaker #3: I understand. Tim, I assume these are done electronically, so there really isn't any ink involved. But maybe I'm the... That's it for me. Thanks, guys.

George Sutton: I understand. Tim, I assume these are done electronically, so there really isn't any ink involved, but maybe I'm naive. That's it for me. Thanks, guys.

Speaker #4: Yeah. Good point. Yes.

Tim Johnson: Yeah, good point. Yes.

Operator 2: The next question comes from Allen Klee with Maxim Group. Please go ahead.

Operator: The next question comes from Allen Klee with Maxim Group. Please go ahead.

Speaker #1: The next question comes from Alan. Please, with Max and George, please go ahead.

Speaker #6: Yes. Hi. Could you expand a little on your new metric of platform place plan value of $82 million? How does that—and that's over, you said, something about the next 12 months.

Allen Klee: Yes, hi. Could you expand a little on your new metric of Platform Placed Plan Value of $82 million? That's over the, you said something about the next 12 months. How does that correlate to revenue? Is all that you guys capture or how do we think about that?

Speaker #6: How does that correlate to revenue? Is all that you guys capture, or how do we think about that?

Julia Qian: Allen, yes. It's a great question. When our platform facilitate place the self-funded plan, you think about self-funded, the one is the plan, the other stop-loss all combined. We bundle that together. Our revenue is just the sum of the portion of that value. When we're looking at the plan placement, every contract is 12 months, and our revenue, contractual revenue will be recognized over the 12 months period of time. Even we did $82 million, you can see our revenue, we report $8.8 million for Q1, the remaining $22.9 million, and total is $31.6 million. It's really the revenue mechanism because of GAAP accounting that's spread out. However, when we wrote and facilitated those plans through the platform, is for 12 months.

Speaker #5: Alan, yeah. So it's a great question. So when our platform facilitates, place the self-funded plan—you think about self-funded—when the other stop-loss all combined.

Speaker #5: So we bundle that together, and then our revenue—it's just the sum of the portion of that value. When we're looking at the plan placement, every contract is 12 months.

Speaker #5: And our contractual revenue will be recognized over the 12-month period of time, even though we did $82 million. You can see our revenue—we report $8.8 million for the first quarter.

Speaker #5: The remaining $20.2, $2.9, and total $31.6. So it's really the revenue mechanism because of GAAP accounting, the spread out, and however, when we wrote and facilitated those plans through the platform, it's for 12 months.

Speaker #5: So this gives everybody a much better flow and the plans and the revenue.

Julia Qian: This give everybody a much better understanding of the flows and the plans and the revenue.

Allen Klee: Does that mean if you have a plan on the books today, but it was actually written 6 months ago, in this number, you're including the 12-month value, not the 6 months left? Is that what you mean?

Speaker #6: Does that mean if you have a plan on the books today, but it was actually written six months ago, in this number you're including the 12-month value, not the six months left?

Speaker #6: Is that what you mean?

Speaker #5: Yeah. For instance, the January or just and I made an example. February, for instance, the February plan we wrote, our revenue will be recognized from the February to next year, January, over the months.

Julia Qian: Yeah. For instance, the January, or just the and, I made the example, February. For instance, the February plan we wrote, our revenue will be recognized from the February to next year, January, over the months. In the Q1, you will only have two months of revenue. However, we also reported the remaining revenue based on the contract will be recognized for the year, which is $22.9 million. People kind of will have a much better idea. Even today, we report Q1 is $8.8 million, but we know $22.9 million will be report in the remaining of the year, so you're adding on, is $32 million. That is, give much, much better visibility in terms of revenues.

Speaker #5: And the first quarter, you will only have two months of revenue. However, we also reported the remaining revenue based on the contract will be recognized for the year, which is 29.22.9 million.

Speaker #5: So people kind of will have a much better idea even today we report first quarter is 8.8, but we know 22.9 will be reported in the remaining of the year.

Speaker #5: So, you're adding on, it's $32 million. So that gives much, much better visibility in terms of revenue.

Speaker #6: Okay, thank you. In terms of the three-year rate plan, what happens if your underwriting performance is poor and it maxes out, and you have to use the excess of loss insurance policy?

Allen Klee: Okay. Thank you. In terms of the three-year rate plan, what happens if your underwriting performance is poor and it maxes out and you have to use the excess of loss insurance policy? It is maintained at What impact, what then happens for the remaining two years? It also seems to me like if you're testing it at the end of Q2 and early Q3, and it's gonna take people a while to understand it, you may have some risk of missing this year's renewal season or how do you think about that?

Speaker #6: It's maintained that what impact what then happens for the remaining two years? And it also seems to me like if you're testing it at the end of two Q in early three Q, and it's going to take people a while to understand it, you may have some risk of missing this year's renewal season or how do you think about

Tim Johnson: The renewal season typically isn't, you know, in large group, most of the renewals happen, whether it's July or January. There's obviously exceptions to that, but January's the biggest date of the year by far.

Speaker #4: The renewal season typically isn't in large group. Most of the renewals happen whether it's July or January. There are obviously exceptions to that, but January is the biggest date of the year by far.

Speaker #4: So we are testing it now so that we're ready to start the quoting. As I said, the demand's picking up. The brokers are looking right now at these kind of options.

Allen Klee: Right

Tim Johnson: We are testing it now so that we're ready to start the quoting. As I said, the demand's picking up. The brokers are looking right now at these kind of options. You can't finalize anything, but they'll give you a submission, and they want you to quote it, to start looking at it, so that by the time the end of the year comes around, they've tested it, they've had all their questions, and finally, when all the data comes in and we can quote it, to get a final, they're ready to have the entire conversation with their clients. Does that help answer your question?

Speaker #4: You can't finalize anything, but they'll give you a submission and they want you to quote it to start looking at it so that by the time the end of the year comes around, they've tested it, they've had all their questions, and finally when all the data comes in and we can quote it, to get a final, they're ready to have the entire conversation with their clients.

Speaker #4: So, does that help answer your question?

Speaker #6: Yeah. It seemed like at the end of last year, you had some good products, but it took longer for the brokers to figure out the new plan.

Allen Klee: It just, it seemed like at the end of last year you had some good products, but it took longer for the brokers to figure out the new plan. I was just afraid that might happen again. Let me One last question. It's on expenses for the quarter. Can you kind of give us an idea of how much the costs were associated with your Davos conference in Q1? Also, how much of costs in Q1 are more like first, just things associated with the beginning of the year, maybe the audit and different things like that maybe are not recurring going forward? Thank you.

Speaker #6: So it was just afraid that might happen again. But let me ask one last question. It's on expenses for the quarter. Can you kind of give us an idea of how much the costs were associated with your Davos conference in one Q?

Speaker #6: And also, how much of costs in one Q are more like just things associated with the beginning of the year—maybe the audit and different things like that—that maybe are not recurring going forward?

Speaker #6: Thank you.

Julia Qian: Davos approximately cost us about $200,000, and approximately, they are about $100,000, cost we probably will not carry forward going forward if we look at the just operating expenses perspective for the quarter.

Speaker #5: Davos approximately cost us about $200,000, and approximately there are about $100,000 in costs that we will probably not carry forward going forward, if we look at it just from an operating expenses perspective.

Speaker #5: For the quarter.

Speaker #6: Got it. Okay. Thank you so much.

Allen Klee: Got it. Okay, thank you so much.

Speaker #5: Thank you.

Julia Qian: Thank you.

Speaker #1: The next question comes from Anne Marin with Jack's. Please go ahead.

Operator 2: The next question comes from Marla Marin with Jacks. Please go ahead.

Operator: The next question comes from Marla Marin with Jacks. Please go ahead.

Speaker #7: Thank you. So, I'm curious. I was wondering if we could get a little bit more color on the three-year rate stabilization. Because, obviously, that seems like it would be very attractive to employers, brokers, etc.

Marla Marin: Thank you. I'm curious. I was wondering if we could get a little bit more color on the three-year rate stabilization feature, because obviously that seems like it would be very attractive to employers, brokers, et cetera. First of all, in terms of what you're seeing right now in terms of the level of interest, is it fair to think that there may be interest right now, but that would be a more extended sales cycle than what you've seen with prior plans that you've been selling, you know, traditionally?

Speaker #7: First of all, in terms of what you're seeing right now in terms of the level of interest, is it fair to think that there may be interest right now, but that it would be a more extended sales cycle than what you've seen with prior plans that you've been selling traditionally?

Speaker #4: Zane, do you want me to handle that one?

Tim Johnson: Zain, you want me to handle that one?

Zain Hasan: I can or you can. I have no problem.

Speaker #8: I can, or you can. I have no problem.

Zain Hasan: I can or you can. I have no problem.

Tim Johnson: Go ahead.

Speaker #4: Go ahead.

Speaker #8: Okay. Yeah. So I appreciate the question. Yes, it's fair to say—I mean, these are targeted towards larger employers. So there's typically a lot longer sales cycle with getting the employers and brokers comfortable and educated with the process.

Zain Hasan: Okay. Yeah. I appreciate the question. I mean, yes, it's fair to say. I mean, these are targeted towards larger employers, and there's typically a lot longer sales cycle of getting the employers and brokers comfortable and educated with the process. Yes, we are seeing a lot of interest in the program. It is also what was mentioned earlier where we iterated and got to the point to where we're now carrier agnostic. Being able to offer that to both new business and renewal opportunities makes it to where we feel like there's a tremendous opportunity.

Speaker #8: And yes, we are seeing a lot of really a lot of interest in the program. But it is also what was mentioned earlier, where we iterated and got to the point to where we're now carrier agnostic.

Speaker #8: And being able to offer that to both new business and renewal opportunities makes it so that we feel like there's a tremendous opportunity. It's a hard market in the stop-loss overall industry.

Zain Hasan: It's a hard market and a stop-loss, overall industry, and this is a very unique time to be able to have a program like a three-year rate stabilization that we can offer.

Speaker #8: And this is a very unique time to be able to have a program like a three-year rate stabilization that we can offer.

Marla Marin: Just in terms of the housekeeping, how would that work in terms of what kind of an upfront would we expect to see you know, place on your books? Then I'm guessing the mechanics of how you would recognize revenue would be similar to what Julia was describing before.

Speaker #7: And just in terms of the housekeeping, how would that work? In terms of what kind of an upfront would we expect to see you place on your books?

Speaker #7: And then I'm guessing the mechanics of how you would recognize revenue. Would be similar to what Julia was describing before.

Speaker #5: Yeah, I can address the question about the revenue, Marin. So we recognize in revenue monthly from the effective day. So even at the three years.

Julia Qian: Yeah, I can address the question about the revenue, Marla. We recognize the revenue monthly from the effective day, so even at the three years. When we have a three-year program, when we report contractual revenue, we will point out that belongs to three-year program. People will know the revenue will come in next 36 months. When we do earnings, which are called GAAP accounting revenue, we're based on every month from the effective day, so nothing changes. Just like the 1-year program, we recognize every month. We service the client every month. Revenue get reported. However, we give them more visibility about what is the remaining longevity of the program, how much revenue we would earn recognizing future.

Speaker #5: And if we have a three-year program, when we report contractual revenue, we'll point out that beyond the three-year program, means people will know the revenue will come in next 36 months.

Speaker #5: And when we do earnings, which are called GAAP accounting revenue, we're based on every month from the effective day. So nothing changes, just like the one-year program.

Speaker #5: We recognize every month. We service the client every month. Revenue gets reported. However, we give them more visibility about what is remaining longevity of the program, how much revenue we would earn recognizing future.

Speaker #7: Yes. But I guess what I'm also trying to get at is, given that, it would be—obviously, the benefit to you would be the extended visibility, and the benefit to the purchaser of the plan would be the locked-in rates.

Marla Marin: Yes. I guess what I'm also trying to get at is, given that it would be obviously the benefit to you would be the extended visibility and the benefit to the purchaser of the plan would be, you know, the locked-in rates. Would you, because it's going to be, you know, a business line over 3 years versus one for, you know, the typical plan, would you require some sort of an upfront deposit that would be different from, you know, your normal approach to taking on new business or taking on a new plan with an existing customer?

Speaker #7: Would you, because it's going to be a business line over three years versus one for the typical plan, would you require some sort of an upfront deposit that would be different from your normal approach to taking on new business or taking on a new plan with an existing customer?

Speaker #5: No, we don't require upfront.

Julia Qian: No, we don't require upfront.

Tim Johnson: We don't. Yeah.

Speaker #4: Yeah. I'm sorry.

Julia Qian: I'm sorry.

Speaker #8: We don't require an upfront deposit. Through the underwriting process, we float that across all three years. So you may have a—yeah. So if your first year would have been $10, we're going to float the overall increase and expand it across the three years.

Tim Johnson: We don't require an upfront deposit. Through the underwriting process, we float that across all three years.

Operator 1: Got it.

Marla Marin: Got it.

Tim Johnson: You, you may have, like yeah. If your first year would have been $10, you know, we're gonna float the overall increase and expand it across the 3 years. Your first year may be a little more, but your, you know, all things being equal, your third year would be less. At least you could budget to those numbers.

Speaker #8: So your first year may be a little more, but your all things being equal, your third year would be less. But at least you could budget to those numbers.

Speaker #7: Got it. Okay. Thanks. And then, switching topics, one final question. On the analytics—which I think could be extremely interesting—you talk specifically about specific things that you think the analytics could be applied to, but it seems to me that there could be a lot of opportunity to take data analytics and package the data in such a way that it could really potentially extend beyond the target market that you originally described.

Marla Marin: Got it. Okay, thanks. Switching topics, one final question on the analytics, which I think could be extremely interesting. You talk specifically about, you know, specific things that you think the analytics could be applied to, but it seems to me that there could be a lot of opportunity to take data analytics and, you know, package the data in such a way that it could really potentially extend beyond the target market that you originally described. Is it the first-

Speaker #4: Yeah, you're reading my mind. That's exactly what we're thinking.

Tim Johnson: Yeah. You're reading my mind. That's exactly what we're thinking.

Operator 1: Okay. This is the right way to think about it, is that this is your first step, but then there could be significant extension behind that, you know, once you've gotten in place with the first.

Marla Marin: Okay. This is the right way to think about it, is that this is your first step, but then there could be significant extension behind that, you know, once you've gotten in place with the first.

Speaker #7: Okay, so the right way to think about it is that this is your first step, but then there could be significant extension beyond that once you've gotten it in place.

Speaker #7: With the first. The first. Okay. Great. Thank you.

Tim Johnson: Significant.

Marla Marin: The first one. Okay, great. Thank you.

Speaker #4: Yeah. Thanks for the question.

Tim Johnson: Yeah. Thanks for the question.

Speaker #1: Zane, there are no more questions in the queue. Let me turn the call back to Mr. Johnson for closing remarks. Please go ahead.

Operator 2: Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks. Please go ahead.

Operator: Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks. Please go ahead.

Speaker #8: Sure. Thank you, operator. And thank you all. I appreciate everyone joining the call today. If anyone has any further questions, please do not hesitate to reach out to us.

Tim Johnson: Sure. Thank you, operator, and thank you all. I appreciate everyone joining the call today. If anyone has any further questions, please do not hesitate to reach out to us. We appreciate your interest and look forward to keeping the dialogue open. Thanks, everybody. Have a good day.

Speaker #8: We appreciate your interest and look forward to keeping the dialogue open. Thanks, everybody. Have a good day.

Operator 2: Thank you all again. This concludes the call. You may now disconnect.

Operator: Thank you all again. This concludes the call. You may now disconnect.