Good day and welcome to the iAccess Alpha Virtual Best Ideas Fall Investment Conference 2025. The next presenting company is Health In Tech Inc. If you'd like to ask a question during the webcast, you can do so at any point during the presentation by clicking on the Ask Question button on the left side of your screen. Type your question into the box and hit Send to submit. I'd now like to turn the floor over to today's host, Julia Qian, CFO of Health In Tech. Ma'am, the floor is yours. Thank you, Matthew. Good morning, everyone. I'm thrilled to be here to share the story of our company. Health In Tech is a digitally enabled insurtech platform company. We are changing the healthcare through digital innovation. Why do we want to do that? The lease is a huge market when we're looking at that $6.6 trillion market with healthcare $4.9 trillion and insurance $1.7 trillion, with very little innovation and transparency in the market. Our customer is the small business. Small business is 45% of the GDP and 99.9% of the U.S. business. They are small business. 34.8 million of the people work for the small business. It is a huge contribution for the country. However, it has been very challenging for the small business owner to shop for the medical insurance plan for their employees. It's lack of transparency. It's always expensive and it is slow. Our platform is here to provide alternative solutions. What does our platform do is anything the business needs for their healthcare plan. We qualify the vendor. We create the program. That's all in our platform. You can envision it's almost like Amazon-like. Anything you need is there on the platform. The business owner, employee, is able to customize the program based on their needs. At the same time, we are underwriting for the insurance company. Why does the insurance company need us? They don't need to have many human underwriters sitting in front of the desk to underwrite one group at a time. They give us a reasonable underwriting criteria, and they will create the program using machine learning and AI, and bundling the medical healthcare plan and the insurance together to become a medical insurance for the small business owner. That is how we can turn from a 14 days, three months purchasing cycle to just about 2 minutes to 10 days. This is a remarkable reduction, about 90% of the time for the business owner to shop for their employees' healthcare plan. How do we make that happen? There's a few pieces to it. One is we have tailored the coverage starting with SMO. One of our fully owned subsidiaries, we create the intelligent plan designed just for the small business employees, and you can customize that. It's very easy to do. The other one is when we look at it as underwriting capability, we turn from 12 or 14 days linear process to just about 2 minutes. You can see from the slides, traditionally through a broker gathering the information, sending it to the underwriter of the insurance company, then review, then they get involved in the internal divisions, then come back and forth with questions, then they go through the proposal process, and in the end, it takes about 12- 14 days. Once we get underwriting criteria from the insurance company, we make that a program. Everything to do with the logic is programmable. That's how we use machine learning and AI to make that very fast. In just about 2 minutes, we can produce four tiers and the 12 plans become a bindable proposal. That speed and the flexibility allowed us to be in the 50 states. We directly contract with over 8,000 hospitals, 1.4 million clinics. That also enables us to get the service at a much more affordable rate, and we are able to, as a platform, pass lease savings to the small business owner in the form of reducing the cost of the healthcare. Additionally, because of the way we distribute our product in the different states, we are very focused in those areas. We can get a better contract and better pricing. As of the second quarter of this year, we are in the 50 states, but just for the self-select, most of the customers in the 41 states, despite our business in the 50 states, some of the states, our contract rate is not as good as the other large insurance companies. Those are the states, the big insurance companies in the middle-price market. That's the reason we're in the 41 states. We have near 1,000 of the business customers, 24,000 of the enrolled employees. You can think about every business, they need to give the medical insurance to the employees, and the employees work around those businesses, about 24,000 employees. In terms of individuals, it's about 50,000 because we also, when we count the employees, if there's a family and a spouse, we count it as one enrolled employee. Through the 878 third-party agency, a broker, and the TPA, we are able to distribute our product very effectively through our platform. Look at the financials. In the second quarter, our revenue was $9.3 million, 86% year-over-year growth. For the first half of the year, our revenue was $17.3 million, compared with the entire last year, 2024, was $19.5 million. We achieved 89% of the revenue of the last year, just met about a half year. Meanwhile, we are able to accelerate our growth but keep the profitability and increase the profitability. In the second quarter, our adjusted EBITDA was $1.6 million, 134% year-over-year growth. In the first quarter, first half of the year, our adjusted EBITDA was $2.8 million, exceeding the entire year 2024. This performance is a good testimony of the acceptance of the product and how the technology disrupts insurance sectors. We are able to achieve that with a seasoned, good management team. If you look at our management team and start from Founder and CEO, Tim Johnson, Tim has been a long-term interested series of the entrepreneurs and worked in AIG and worked in the insurance sectors. Then you're looking at our technology, the Head of Tech, worked in Airbnb and eBay and HIPAA insurance, as well as the startups. We are able to bind the knowledge and the insurance and the technology together and create our platform. Our Chief Growth Officer, Dustin, is very well known in the sector. He is the editor of Forbes News and also Optimed Health, worked in various different brokerage firms for the insurance company. My background, I worked in Citigroup. I was in Citi Fintech, and I worked in manufacturing, Johnson & Johnson, General Motors, and the capital markets. What I see is the entire world is transitioning to the digital, to the AI. The insurance sector is about 10 years behind the banking. Banking probably is 10 years behind the manufacturing in terms of the system simplification and the digital disruption. The $6 trillion market, really, with very little innovation, is a huge opportunity for us to use AI, use technology, and simplify the business process to make healthcare insurance much more simple, easy, much more affordable for the small business. How do we make money? We make money in two ways. One is we generate revenue from the underwriting model, as I previously explained, and the insurance company gives us risk underwriting criteria. It's their risk, their criteria. We are the platform. We use the data. We use the calculation to make that much faster and simpler and reduce the human interactions. We make revenue from the underwriter as an underwriter from the insurance company as a percentage of premium. It's all success-based. We also make money, the revenue generated from the program. The program is our platform fee, and we're selecting the vendor. We qualify the vendor. We're building up the different customized program. Those are the fees charged based on the success as well. It's a flat fee per employee per month, PPM. These are the two factors. When we sell our platform, sell one medical insurance plan to a small business owner, we generate revenue from these two revenue streams: underwriting revenue and the program fee. Combined together, these become the key drivers for our business. The enrolled employee has become a leading indicator of our business. We've been growing very fast in different states through a different distribution model. Let's look at the financials. I highlighted a little bit of the financials before. In the slides, you can see the second quarter financials and the first half of the year. We grow both on the top line revenue and also bottom line, the income before income tax. You can see it's 1.9x or 1 point some times growth from 2025 versus 2024. We have a high-quality growth. The reason is being our income from before the income tax, we grow 2.6 times, increased from $0.6 million- $1.5 million for the first half of the year. The adjusted EBITDA also grew. Our adjusted EBITDA is about 16% of the revenue in terms of the percentage of revenue, increased 500 basis points from 11% of the first half of the last year. We generate $2.8 million of the adjusted EBITDA just for the first half of the year. The second quarter is $1.6 million. Cash and accounts receivables. Cash as of the second quarter in June, our cash position was $8.1 million cash, and versus last year in June, $2.2 million. We went public in December. We closed on Christmas Eve. We raised a little bit more than $9 million gross per seat. Net is near $6 million net per seat. You can see our cash flow is positive, and we generate more cash flow this year. Accounts receivable, despite the revenue growth, our accounts receivable reduced from $1.5 million- $1.3 million. Just to give you some idea, the second quarter of the revenue is $9.3 million. Our accounts receivable is only $1.3 million. With the solid financial performance and innovative solutions that disrupt the insurance and the medical healthcare sectors, we are able to have accelerated growth. Looking ahead, we are very confident our growth trajectory momentum will remain. That is part of the presentation. Now I'm open for questions. We're seeing a few questions from the audience. The first question we have is, do your competitors have the same revenue compensation business model? Yeah, that's just a great question. We don't have direct competitors. The reason being is some part of underwriting components today we see is part of the insurance company. The insurance company, they are not a platform. They don't provide the service for other insurance companies, number one. Number two is really we haven't seen the insurance company drastically use AI, reduce their underwriter, and pay based on success. That's why we have not seen that part. The second part is in terms of creating a healthcare plan, which is customizable and the employee can choose against an open platform. We have not seen that in the market. With this combined, we just do not see we have any company doing exactly what we do. There are certain other functions residing on the different small parts or some parts of the insurance company or some parts of brokers or some parts of other divisions, but no other company put that together, integrate together as the platform company like us. I hope that addressed your question. Okay. Another question we have is, you ended Q2 with $8.1 million cash and positive operating cash flow. How are you prioritizing between R&D, self-expansion, and new product launches? Yeah, that's a great question. As a tech company, we constantly evaluate the investment between the technology and the self-expansion. Currently, we have six major projects ongoing. We prioritize the short term, mid term, and the long term in terms of revenue. We were looking at some of the products we can push on the market. We would generate immediate revenue. For instance, in the first quarter earnings we're talking about, we are scaling up our capability to a group that has a medium to large size. It means the businesses have employees from 5- 150. We call that small business. The medium size of the business is 150 employees above towards 1,000 employees. In that space, when you reach to 300- 500 employees above, it takes about near three months just to shop for the medical insurance for the employees. The reason is HR needs to collect all the data, and the back and forth takes a lot of time. Our platform is able to reduce that time from three months to two weeks. We are able to get that platform to be enhanced and the project to launch in the third quarter. Now we're in September. Obviously, we are going to wrap up the third quarter. In October or November, when we do an earnings call, we will be able to announce the successful launch. That is a great example when we're looking at that because that will give us significant business when we can build up in Q4 and January. This is where most of the companies change their insurance plan. Yes, the question is, yes, we have a discipline, our management team. We have a weekly executive meeting. We continuously prioritize what is cash inflow, where is the market competition, how we want to invest in the software solution versus where the revenues come from. This will allow us to open up the next level of the growth, where it's targeting to the medium size of the company. Okay. Next question we have is, when you run a new business, what cost advantage do you have versus existing solutions? Sorry, can you repeat your questions? When you run a new business, what cost advantage do you have versus existing solutions in the market? Okay. When we win the business, number one is our platform is free to use. We give employees the opportunity to shop for their medical insurance plan. We don't force anybody to purchase our plan, and neither do we think that that will be a good idea for the company just to come to the platform, give the codes, not able to buy the plan. We make the experience very fast and simple. Unlike other places, it's aggregator. When you look at something, you like it, you click the buy button, you just receive many, many phone calls from the third party trying to sell you something, and you are not able to buy. One is the speed to market. The other is with a direct contract to the hospital and the clinic, we're able to pass through the benefits to the employee. When we win the business, it's really from the two fronts. One is speed to market and save tons of the time. Two, we're able to have our plans a little bit more affordable versus the other platform or versus the other insurance company because we have a direct contract. We're able to provide these benefits, and it's free to use. When the small business owner comes here, they look at the plan, they can get that response quickly and relatively cheaper. Obviously, that's how we win the business. Next questions? The next question we have is, what milestones over the next 12 to 18 months should investors track to measure execution on growth and profitability targets? We do not give a guidance to the market in terms of the target, because our company went public in December 2024. However, in every earnings call, we have a rate in our growth trajectory. This year, we look at 50%, 50, 50% year-over-year growth. We are very confident. When we enter into next year, in the beginning of the year, we always look at a few products and other priorities, and we will be able to give a much better communication to the market in terms of what the target will be. We are very confident with our current trajectory. This growth rate is expected to be maintained. Okay. Next question we have is, gross margin remains above 60%. How much leverage is left in operating expenses as revenue escalates? As a platform company, the good part of that is a platform company, most of our technology platforms, we are already in the deployment and started to depreciate. It is about how many of the customers we can generate from the platform. The initial starting, it's always the cost is always a little bit higher. With the continuous monetization that we have been seeing, we have positive operating leverage. Our revenue growth is way beyond the expenses growth. With the new product and solutions taking place, we think this trend will continue, and we're confident on that. Okay. Next question we have is, can you talk about some of the large partners like Marsh McLennan? More specifically, what size clients are they helping you get in for? Just more about our large partners and how they are getting the clients and the sizes of the clients. Thanks. We work with a broker and agency like Marsh, and we have many agencies who work with our partners, 778, and they are dispersed around the country. To us, we give the agency the tool to free to use. Whether you know it's a small size or a large size, it really makes no difference to our platform. We give them a much faster tool to win their business. Obviously, from the initial feedback, we know there's a sweet spot of the size of the customers. It means employees, the size 30 above, 30, 50. We also know 350. There are a few sweet spots. It's just the customers they're dealing with in terms of the data they have to deal with. If they would not work with our platform, it's a huge, massive manual process. Now, they just work with our platform. It's very simple. Just upload an Excel spreadsheet. Everything else is automated. We can tell you there are many, many partners who use our system because it's free. Everything is success-based. We are very happy, and we can be very helpful to improve their productivities. Okay. Next question we have is, distribution partners expanded 87% year-over-year to 778. How do you balance breadth versus depth in partner productivity? Is it easy to handle this kind of rapid growth? Yeah, that's a very good point in the questions. Our distribution partner, think about in the U.S., the small business is 38 million in terms of number of employees. There are many brokers and work with many different small businesses. For us, it gives them the tool for free, and they are able to manage their workflow. You think about the current process, they are doing that manually, right? Now you have a tool to simplify that manual process to become digitally enabled. It just takes about 2 minutes or 10 days to replace 2 minutes or 3 months' work. From our perspective, we drastically improve their productivity, and they are able to make fast moves and simplify their process and grow their top-line businesses much more. We don't manage that part for them, and we simply give them a tool to make their business much faster. Okay. I think that's all the questions we will address for today. If there are further questions, please reach out to ir@healthintech.com. Okay. Thank you, Julia. Thank you. That concludes Health In Tech's presentation. You may now disconnect.