Health In Tech achieves 132% revenue growth year-over-year, launches innovative underwriting capabilities to capture larger employers and enhance market presence.

UNKNOWN - (00:00:00)

Revenue to 25.8 million compared to 19.5 million for the full year of 2024. This momentum was driven by the continued expansion of our sales distribution network. The Number of brokers, TPAs and agencies grew to 849 partners, up 57% year over year. As more brokers and agencies adopt our EDIBS platform, we're seeing more quotes bound and sold in real time. By the end of the third quarter, the number of billed enrolled employees reached 25,248, an increase of 7,654 employees year over year. The third quarter is typically a development and deployment period for us, a time to introduce new programs and features. Most notably, we completed beta testing and officially launched the large employer underwriting capability with our enhanced EDIBS platform. This is a major milestone that scales our reach across the full employer spectrum, positioning Health In Tech as a true insurance marketplace for business of all sizes. The new capability enables brokers to generate fully bindable quotes for groups of 150 more employees in as little as two weeks compared to the industry norm of about three months. This advancement dramatically expands our addressable market and establishes Health In Tech among the few platforms serving both small and large employers seamlessly. Soon after the launch, we showcased this innovation at the SIIA national conference in October 2025, one of the most influential events in the self insurance industry. Our participation there helped accelerate national exposure and strengthen broker relationships, key catalysts for future growth as we look to the fourth quarter and into Q1 2026 we're entering our peak enrollment period when employers review or switch their health care coverage. Recent market uncertainty and rising health care costs have created mixed timing patterns, with some employers making early planned selections in late Q3 while others are delaying decisions into January. As a result, we delivered much better year over year growth in Q3 and anticipating sales volume shift from Q4 into Q1 but still expect healthy year over year overall growth. To help employers navigate cost volatility, we're testing a new program offering a three year rate hold, a solution that provides predictable stable pricing over a multi year period. The program allows groups with 150 or more employees to lock in health care costs for three years through a fixed remittance model backed by an A rated stop loss carrier. It brings real time, excuse me, real value to clients looking for cost stability amid rising medical expenses, while also strengthening our relationships with brokers and TPAs. By providing cost certainty amid rising medical expenses, we're giving brokers and TPAs Powerful retention tools and helping employers plan long term with greater confidence. We completed initial testing in October and plan to fully launch the program in the first quarter of 2026. We believe it represents an innovative concept for broader healthcare insurance market and we're optimistic about its reception as we enter 2026. Beyond underwriting innovation, we're setting our sights on one of the largest inefficiencies in the US health in US healthcare claims processing, which consumes more than 300 billion annually in administrative costs and delays. This quarter we announced a non binding letter of intent with AlphaTon Capital Corp to co develop HiChain, a blockchain enabled platform designed to bring real time visibility, accuracy and accountability to claims workflows across the ecosystem. Under this loi, both companies plan to contribute distinct strengths. Health and Tech brings domain expertise in insurance and healthcare data standards, established broker and carrier relationships, proven go to market channels, and leadership in health technology design. Alphaton Capital contributes blockchain development expertise on the open Network smart contract architecture, cybersecurity, stablecoin integration for secure payments and capital resources for enterprise scale deployment. Together with Alphaton's blockchain infrastructure and Brittany Kaiser's leadership in data ethics, we are building HiChain, a decentralized and verifiable claims system aimed at compressing timelines, eliminating duplication, reducing costs and creating a transparent system of record for payers and providers alike. By combining insurance domain expertise with blockchain innovation, Health In Tech is positioned at the forefront of decentralized healthcare insurance technology infrastructure, a market opportunity of meaningful scale and long term impact. Lastly, we're thrilled to share that Health and Tech will host the InsureTech Summit at Davos during the World Economic Forum Week in January 2026. This event will convene global thought leaders to discuss AI technology and transformation of critical business sectors, including healthcare and insurance. With that, I will now turn it over to Dustin who will walk through our latest marketing and partnership innovations in greater detail.

Dustin - (00:05:54)

Dustin thank you Tim and good afternoon everyone. As Tim mentioned, we will take Health and Tech to the center of the global Innovation stage by hosting our very first independent InsurTech summit on January 20, 2026 during the week of the annual World Economic Forum in Davos, Switzerland. You know, it's interesting because the World Economic Forum, which is held each year in Davos, is really considered one of the world's most prestigious gatherings of global leaders across business, government, academia and civil society. It serves as a powerful platform for shaping global, regional and industry agendas. And this year, Health and Tech will be among the organizations leading that dialogue. Our summit will feature a curated lineup of panels on artificial intelligence, digital transformation in healthcare and blockchain enabled system reform, all focused on redefining how technology can drive transparency, efficiency and equity across the 4.5 trillion healthcare economy. The first session we've announced AI and institutional resistance CEOs driving change in legacy sectors brings together time CEO Jessica Sibley alongside our very own CEO Tim Johnson for a dynamic discussion on how top executives are embedding AI within large traditional organizations. This dialogue won't be just about innovation, it's going to highlight the leadership, mindset and operational courage required to modernize industries that have historically resisted change. Our second session, First Backing Women who Build, will feature Lady Sherry Blair, founder of the Sherry Blair foundation for Women. The panel will spotlight global leaders advancing women's entrepreneurship, leadership and access to capital across industries, exploring how innovation, education and technology can close gender gaps in business creation and economic opportunity. And this aligns perfectly with health and Tech's broader mission of expanding access and inclusion through technology driven ecosystems. Additional sessions focusing on other strategic themes will be announced in the next weeks and months ahead. Together, these sessions are going to elevate Health In Tech visibility among insurers, investors and yes, even policymakers, reinforcing our leadership in shaping conversations at the intersection of AI, healthcare and financial inclusion. For investors, Davos represents a strategic inflection point, amplifying our institutional reach, strengthening our brand presence on the world stage, and showcasing how our technology and partnerships are modernizing the healthcare system here in the United States. As I've often said, legacy sectors like healthcare, finance and insurance are where AI meets its toughest tests and delivers its greatest rewards. By leading these discussions, Health and Tech is demonstrating that responsible data driven innovation can scale sustainably while earning trust from both partners and regulators. With that, I'll turn the call over to our Chief Financial Officer Julia Kwon to walk you through the financial results in more detail.

Julia - (00:09:50)

Julia thanks Dustin and good afternoon everyone. It's my pleasure to talk you through the financial results that underpin the strong operational achievement Tim just discussed. Our third quarter and the first nine months of 2025 reflect continued execution across all the business fronts from expansion our self distribution network to launch new platform features while maintaining disciplined management and operational efficiency. Revenue performance for the third quarter, total revenue reached 8.5 million, bringing year to year revenue growth to 25.8 million, presenting 132% of our full year 2024 total. These growth clearly demonstrate our accelerated momentum and effectiveness of strategy channel expansion through the broker, TPA and agencies combined with our strong customer acquisition activities, profitability and operating leverage beyond the top line, our profitability matrix shows significant operating leverage. Adjusted EBITDA for the quarter was 1 million, up 49% year over year. For the first nine months, adjusted EBITDA reached 3.8 million or 167% of the full year 2024 total. This strong EBITDA performance demonstrates our ability to skew efficiency while maintaining the cost discipline. Pre tax income for the quarter was 0.6 million, a 48% increase year over year. For the first nine months, pre tax income totaled 2.1 million or 2.4 times of for year 2024. Importantly, pre tax income present around 8% of the revenue. It's 135 basis point improved year over year reflect our consistent balance between the resource allocation for growth and the bottom line profitability. Expenses Management on the expenses side, we continue to improve operating efficiency as we skill. Total operating expenses for the third quarter was 3.7 million, 55% of revenue down from 68% in the same period last year. For the first nine months, operating expenses represent 59% of revenue, improvement of 12 basis points from 71% of the year ago. We continue to integrate AI driven internal solution to enhance process automation and reduce administration burden. Break this further down Sales and marketing expenses were 1 million or 11.3% of the revenue essentially flat year over year. Our channel partner model continued to drive revenue growth without the need a large in house sales force. Generally, administrative expenses were 3.5 million consists of 1.3 million in operating cost, 14.9% of revenue and the 2.2 million in admin cost 25.8% of revenue. The higher admin cost reflects the expenses associated with being a public company including D&O insurance, board composition, investor relations and median outreach. So the research and the development expenses declined to 2.8% of the revenue from 16% of the year ago. Our tech results have shifted from the preliminary project maintenance phase research phase to heavy development phase deployment. So thus the tech costs associated with the software development are capitalized. That's why you see the expenses reduced cash flow and the balance sheet. For the first nine months we generated 2.7 million of the positive cash flow from operations. We invested 2.4 million in technology development and 0.1 million in the capital markets activity resulting in net positive cash flow of 0.2 million. We ended the quarter with a solid 8 million in cash and cash equivalent. Our collaboration with Alpha Tone Capital also provides additional capital leverage for the HiChain initiative with AlphaTon investment contribution. We expect to build these transformative blockchain enabled first platform with minimum cash requirement from our end which maximizing our capital efficiency. As we enter the fourth quarter we are navigating a period of the market uncertainties related to rising health care costs and evolving regulation regulatory dynamics. Some in prior years accelerated their plan selection decision into late Q3 which contributed to stronger than expected performance in the quarter. At the same time, other employees are shifting the purchase decision into January and early Q1 2026. Q4 is typically when we launch our major marketing broker initiatives and the PR campaigns to build a momentum for the pixel sell season. In line with the strategy, we are intentionally reinvested a portion of gross profit into the market expansion activity to support continued long term growth. We anticipate Q4 revenue growth of around 50% year over year which reflect a solid performance. Given these timing shifts for the full year 2025 we expecting to deliver around 70% year over year revenue growth reaching an estimated 32 to 33 million in revenue. Importantly, full year net income growth is expected to be near 90% outpacing the revenue growth on percentage basis as we balancing disciplined profitability with purposeful reinvestment. Given our market share is less than 0.01% of the market potential, the long term growth Runway remains very substantial. Our strategy is to thoughtfully redeploy a portion of earning to skill distribution, drive product adoption and deepening our competitive position. As Tim mentioned, we began pilot test our 3 year rate hold program in late October early November. This offering is very innovative and designed to provide portability for the employees and for them to manage the healthcare costs more effectively. This is very appealing to the companies with large number of employees. We will share more details with you upon full launch in Q1 2026. In summary, the third quarter marked the pivotal point of the technology progress and the product innovation. The fourth quarter is focused on the market activities, program testing and our year end sales championship with all which position us for accelerated momentum heading into 2026. We are laying the foundation for an AI enabled multi program health care insurance marketplace that we can serve our employees with all size and segment. I now turn it back to the operator for Q and A.

UNKNOWN - (00:18:05)

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 are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please Press Star then 2. At this time, we will pause momentarily to assemble our roster.. Our first question today is from Marla Marin with Zacks. Please go ahead.

Marla Marin - (00:18:43)

Thank you. Good afternoon everyone. So this was obviously, you know, strong quarter growth. I know you talked a little bit about some pull forward and maybe some, you know, timing differences versus general patterns in past years. But, you know, still we're seeing very strong growth. You've been operating now for a very brief period in the large employer market. Is, is the response that you're seeing tracking along the lines that you had anticipated? And are there any things that you're seeing in that market that distinguish it from the small and medium market that you have traditionally looked at or focused on?

Tim - (00:19:31)

Yeah. Hey Marlo, thanks for the question. This is Tim. You're right. We really just got started. We haven't been able to see a trend yet because the process usually takes from for our brokers to get established and trained on the system to where they're starting to use it. And an effective date is usually about at a minimum at 60. It's usually 90 to 120 days out. So although the process has sped up and helped everybody help our distribution sources get their proposals and their quotes faster, we haven't seen them start to really bind anything yet because they're quoting groups, that are further out from when we started, if that makes sense. Yes, but we are seeing a lot more activity. We're seeing it started at about two quotes a day. Now we're up to five quotes a day that our underwriter is able to get out. So big, big improvement from where it was.

Marla Marin - (00:20:29)

Okay, understood. Okay. So switching gears a little bit, your enrolled employees, that metric, which is one that, you know, I look at, you know, from quarter to quarter, as I'm sure others do, it continues to increase. I think in the past you've talked about there's a level of stickiness with that number just because of difficulty sometimes in switching to other, you know, other coverage providers or other, you know, solutions. Can you give us any color on whether or not you think that is true?

Julia - (00:21:10)

Yeah, that's Molly, It's Julia. I think that is a great question. question, That's why when we look at the three year rate hold program, we're either further to enhance the retention because with these uncertainties, when the business can have a product with flat rate for the three years and really, you know, significantly change how the dynamic on the market. Yeah, the health care product, insurance product itself is already pretty sticky and you know, with the speed and the benefits we offer. That's how we see we adding on more products, make that even more sticky.

Marla Marin - (00:21:57)

Okay, got it. And then last question from the blockchain initiative, I think is very interesting, you know, as you continue to innovate in this space and you continue to use technology to streamline processes and make things, you know, simpler for the customer base. In terms of blockchain right now, is there anyone else in the space that is using blockchain or will this be something that you're, you know, you're going to be relatively amongst, you know, the lead innovators.

UNKNOWN - (00:22:34)

I would like the team to address that.

Dustin - (00:22:37)

Yeah, Dustin, you can address that if you want. That'd be a good one for you. I would, Yeah, I would love to. So it's interesting, you know, the space of healthcare and now putting these records on chain, but doing it in a way that it still remains de identified so we don't have any compliance issues. We will really be the first at the scale that we will be launching the HiChain, bringing in an entire ecosystem over the next 12, 24, 36 months into HiChain. So it has not been done at that level ever because of all the moving pieces that are involved. And when we look at the problem, the friction point, Tim and I, our CEO, he and I discussed friction. The friction our providers feel, the friction that the hospital systems feel, even the friction at times the patients are feeling to be able to have a real time ledger that they can track. So I'm excited. Over the next number of months, Mr. Tim Johnson will be rolling out some of the areas that we see help in tech, being able to receive revenue opportunities and also strategic growth, not just in North America. Our plan would be long term, that HiChain would be all over the planet, that we would become the number one in the healthcare blockchain, even at some point, tokenization. So I'll throw it back to Mr. Tim Johnson, our CEO, because I can't reveal too much.

Tim - (00:24:18)

Yeah, Marla, we. This type of product has been tried and failed by other people with considerably larger recognition than we are. We have brought though a much broader base of people that understand the A to Z effect of this. Everybody at Health In Tech and Alpha Ton, they have experience in every function that that has started from when somebody goes to the doctor to where that bill gets paid. And believe me, there are multiple entities in the middle of that and transactions that have to take place. And by streamlining all that, as Dustin said, the decentralization of that, where anybody can join this thing, this blockchain that we're calling HiChain. It has not been done before in such a scale. It has been done by single hospitals do it to manage their processes internally but nothing where you decentralize it to the public like we are.

Marla Marin - (00:25:23)

Okay, thanks so much for the responses. I'll get back in queue or let someone else jump in.

UNKNOWN - (00:25:29)

Thanks Boyle.

James Lieberman - (00:25:31)

The next question is from James Lieberman with American Trust Investment Services. Please go ahead. Thank you. I want to congratulate you on a. Terrific year of execution and the vision that you're putting in place. And I wonder, can you share a. Little bit more about this three year luck program for healthcare? How do you manage to do that? Or is that your secret sauce and. You'D rather not say it this time?

Tim - (00:25:58)

Yeah, I can't since this is public. You're right. We really don't want others to know how we're going about it from an underwriting perspective. I will tell you though that there has been a year's worth of work with multiple different financial institutions, bankers, underwriters, insurance carriers, distribution sources in order for everybody to get comfortable with this. It has taken a lot of effort on everybody's part and over a year now we've been working on it. So apologize. I can't give you much more than that but I think it's kind of.

James Lieberman - (00:26:34)

Extraordinary and I commend you that you've been able to bring all the players together to even present that vision.

Tim - (00:26:40)

Congratulations. Yeah, thank you.

UNKNOWN - (00:26:44)

Yeah.

Julia - (00:26:44)

Jim, you just turn up to watching for the full launch news then we will have more detail than the time we do official full launch and you know it's really we combine these insurance-sector expertise with carrier with various investment bank funds. It's just a lot to put together I would say. And you will find they are all renowned institution to join force to make this happen and we're very excited but we will have more details to share with everybody and Q1 full launch..

James Lieberman - (00:27:23)

Thank you very much again.

Alan Klee - (00:27:27)

The next question is from Alan Klee with Maxim Group. Please go ahead. Hi. It's really great to see your degree of innovation following up on the three year rate hold product. I think this could be really very powerful for employers to want this. I'm actually it's kind of surprising that an insurance company would take that risk with given the challenges and the changes that can happen with underwriting results. Was that maybe the hardest part to get over how an insurance company could get comfortable to take a three year risk?

Tim - (00:28:20)

Yeah, Alan, it was very challenging but there's two sides to look at. Here. So what insurance carriers like to do is get profitable business and hold it. In this case, that's what we're trying to do, is make it profitable by implementing these medical management programs, some very strategically targeted programs where we're trying to manage every possible instance that can come up. So if somebody has diabetes, we have a program for that. If somebody has another condition, we have very specific programs that manage these. Because, Alan, what you find is that and a carrier will pick somebody up for a year and try to implement these things. But 12 months isn't enough to make an impact. If something happens, they don't have enough time, say it happens six months into the program, they don't have enough time to really make an impact and try to manage that condition, whatever it is, to get it back to where one, where it probably is not. Maybe it's not a profitable program, but it could be over time, if you get enough time to get it under control. And that's what we sold our carriers on, is the ability for us to manage those over time better than what we're able to do today.

Alan Klee - (00:29:39)

That makes a lot of sense. And then for the claims processing, who you're selling this, who is your customer in this?

Tim - (00:29:55)

Customers are large employers, larger employers, 150 lives on their plan, greater. So you know, people like municipalities, for example, I use municipalities because they don't have a lot of money from their tax base, whatever that is, but they try to budget, their budgeting money is very tight. And when we can give them a three year rate guarantee. Municipalities and government entities love this type of product.

Alan Klee - (00:30:23)

Right, okay. And then for the. I'm sorry, I didn't ask my question. I meant for the, for the blockchain opportunity to manage claims processing. Who are you selling that to?

Tim - (00:30:40)

Well, that's going to be sold to everybody. You know, if you've heard me speak in the past, Alan, everybody that touches health care and which is from the hospitals to the patients, the employers, the brokers, the third party administrators, the networks, everybody in, not to use the term or beat the term up in the chain of events, everybody will participate in this, the program. And again, I can't go into, I don't know where my line is drawn, I've given too much information. But everybody that touches it will benefit. There's a win, win in this for everybody. It'll drive, you know, I have asked, people have asked me the question, how's that going to drive health care costs? Well, a large part of the healthcare cost is the administrative costs and they're Huge. As we talked about in this presentation, it was 300 billion. We're trying to cut that down dramatically and we hope that that savings reflects back in the term of healthcare expenses paid out over time.

Dustin - (00:31:43)

Yeah. And I'd like to also kind of add to that Tim and great, great explanation. You know, I think that for those that have ever experienced issues when it comes to claims, you know our ideal deal kind of customer client that we see partnering with us are going to be insurance carriers, health plans, benefit administrators, companies that are processing potentially millions of claims a year or thousands or tens of thousands of claims. They're going to win with hitchain because of fewer fraudulent claims, faster processing, fewer disputes, faster collection, less overhead expenses, meaning we're driving operationally their costs down and ultimately happier providers which means health and tech wins, those that are within the ecosystem wins. And so I can't give everything. I don't want to get ahead of myself and but we have an enormous opportunity here and we're hearing from large organizations around the world, including large hospital system that we are onto something. So I'm excited to go on this journey with all of you in the future.

Julia - (00:32:59)

Yeah Ellen, once we work with AlphaTon to turn to from non binding letter intent into the definitive agreement at that point in time we will be able to give an update in terms of the more detailed business model and all these above fronts and both Tim and Dustin mentioned but it's just some of the very initial identified area we can benefit from. There are much more area when we continue to discuss and discover the benefits. Not only just transparency, the speed, remove the redundancy, especially you know one client get a process once, not multiple times get reviewed different people, different organization, manual work back and forth. But also there's opportunity think about how the money movement get paid, the payment part side of process. So there's really a lot of things we can do. The most benefit for us for overall is both parties contribute their strength and that has really minimal cash requirement from our end. We contribute our knowledge and they have the funds, they have the technology and blockchain. Combine these both parties we're going to create something very unique and big and benefit every participant on the chain.

Dustin - (00:34:31)

And Julian, I think it's good to note because we have mentioned it in press releases regarding ask Tim, our AI driven benefits counselor that also will be unveiled in 2026 with a little bit of under the hood in Davos on January 20, 2026.

UNKNOWN - (00:34:56)

Yes, very good.

Alan Klee - (00:35:02)

You guys had mentioned in the last few months of some stuff that you're doing with pharmacy benefit management side to try to get lower drug costs and any update on that.

Julia - (00:35:22)

Julian? Oh, Alan, I think we really do not have much more build out in terms of pharmacy benefit. And our focus on this year is enhance the system, produce the new program, new product. And while the PBM side of the opportunity has been evolving these very much to do with the market condition and who we partner with and just present additional opportunity. But for this year, and we enter into the November when we look at really the enhanced E dips and the three year rate hold and the end to the large size of the employee market is important for us. When we look into 2026, we might go back to check on what else we can build in terms of additional opportunities.

Tim - (00:36:28)

Yeah, the administration, the current administration and the White House has you recently heard the press release and the conference that they had. They're looking for serious solutions. So putting our time and energy into it, if the government is going to step in as as much as they are and good for them could have been more of a waste of time. We thought our efforts would be better off focusing on the underwriting and claims piece that we just talked about.

Alan Klee - (00:37:00)

Okay, thank you. One of the things that you guys have focused on is your broker, your partners and how that's been helping to drive sales. Basically you're getting your distribution through your partners. And I think last quarter one of the things that struck me as you were getting some of the larger insurance brokers also. So maybe if you could talk a. Little about.

Tim - (00:37:36)

Your broker relationships and how like for the big renewal season, how you go about the process of focusing on that. Yeah, we are growing our distribution sources because once they get it, see the system, it's so convenient, so easy to use that it's making their lives easier so they can make more sales. But the what we term as our alpha houses, the bigger brokerage firms around the country, products just like what we talked about with the three year rate guarantee they have, some of them have only focused on larger groups. Some of them do larger and smaller groups, but their primary focus is the larger group. And with bringing a program like this three year rate guarantee, rate stability program that we call it, that's what they're focused on. So they are more excited than ever to get access to some of these products that we're bringing for the larger segment. The group segment.

Julia - (00:38:44)

Yeah, Ellen. Also, you know we very aggressively start to train the brokers and with all the large broker agency, they have regional office, they have, you know, they intend to just Have a pilot office so testing out and then, then they roll out to rest of the agencies in their different state. So to us it's not only just the numbers, but once we started with one agency and our sales team really go down to the implementation, the training. So we should be able to see these things is getting ramped up. Not only just the number, actually one agency can have hundreds, thousands, the other agency, you know, handful. So not only the agencies but also how can we deepening the relationship. And our sales team has done great job of providing a training and look at how the system, how easy system is. So we will see this continue accelerating our outreach. Additionally, the event we do in Davos and led by Dustin and all other primary will continue give us very good visibility in the market, attract more large agencies.

Alan Klee - (00:40:15)

That's a good point. So the audience for the, for the Davos conference will be kind of bigger players in the, in the insurance tech area.

Julia - (00:40:27)

That's right. By default. I think when the agency was a certain size and they are looking for more the peers and where there's significant event and the forum, they all can exchange their thoughts. And also it's a perfect venue for us to improve our visibility without burning a lot of marketing dollars. So we have been very disciplined in terms of the marketing and the pr. But we think this is a great opportunity for us.

Alan Klee - (00:41:03)

Okay, those are my questions. Thank you so much and congrats.

UNKNOWN - (00:41:09)

Thanks Al. Thank you. The next question is a follow up. Excuse me. Pardon me. Thank you. Seeing no more questions in the queue, let me turn the call back to Mr. Johnson for closing remarks.

Tim - (00:41:22)

Thank you operator and thank you all. I appreciate everyone joining the call today. If anyone has any follow up questions, please do not hesitate to reach out to us. We appreciate your interest and look forward to keeping the dialogue open. Thanks everyone.

UNKNOWN - (00:41:36)

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