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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 12/28/21 Lemonade, Inc. S-4/A 4:8.8M Toppan Merrill/FA |
Document/Exhibit Description Pages Size 1: S-4/A Pre-Effective Amendment to Registration Statement HTML 4.29M - Securities for a Merger 2: EX-5.1 Opinion of Counsel re: Legality HTML 13K 3: EX-23.1 Consent of Expert or Counsel HTML 5K 4: EX-23.2 Consent of Expert or Counsel HTML 5K
tm2134571-3_s4a - none - 93.2660852s |
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Delaware
(State of Incorporation) |
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32-0469673
(IRS Employer Identification No.) |
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Large accelerated filer
☐
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Accelerated filer
☐
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Non-accelerated filer
☒
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Smaller reporting company
☐
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Emerging growth company
☒
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Title of each class of securities to be registered
|
| | |
Amount to be
registered(1) |
| | |
Proposed
maximum offering price per share(2) |
| | |
Proposed
maximum aggregate offering price(2) |
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Amount of
registration fee(3)(4) |
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Common Stock, $0.00001 par value per share
|
| | | | | 6,748,318 | | | | | | | N/A | | | | | | $ | 314,784,727.68 | | | | | | $ | 29,180.54 | | |
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For Lemonade stockholders:
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| |
For Metromile stockholders:
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Page
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| | | | 231 | | | |
| | | | F-1 | | |
Proposal
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| |
Required Vote
|
| |
Effects of Certain Actions
|
|
Proposal 1:
Merger proposal |
| | Approval requires (i) a quorum and (ii) the affirmative vote of the holders of a majority of the voting power of the outstanding shares of Metromile common stock entitled to vote at the Metromile special meeting on the merger proposal. | | | An abstention or other failure to vote on the merger proposal will have the same effect as a vote “AGAINST” the merger proposal. | |
Proposal
|
| |
Required Vote
|
| |
Effects of Certain Actions
|
|
Proposal 2:
Adjournment proposal |
| | Approval requires the affirmative vote of the holders of a majority of the voting power of the outstanding shares of Metromile common stock virtually present via the Metromile special meeting website or represented by proxy and entitled to vote at the Metromile special meeting. | | |
Any shares not virtually present or represented by proxy (including due to the failure of a Metromile stockholder who holds shares in “street name” through a bank, broker or other nominee to provide voting instructions to such bank, broker or other nominee) will have no effect on the outcome of the adjournment proposal.
An abstention or other failure of any shares virtually present or represented by proxy and entitled to vote at the Metromile special meeting on the adjournment proposal to vote on the adjournment proposal will have the same effect as a vote “AGAINST” the adjournment proposal.
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Metromile Selected
Growth Insurance Companies |
| |
Metromile Selected
Mature Insurance Companies |
|
|
•
Hippo Holdings, Inc.
•
Kinsale Capital Group, Inc.
•
Lemonade
•
Palomar Holdings, Inc.
•
Root, Inc.
•
Trupanion, Inc.
|
| |
•
Aflac Incorporated
•
Chubb Limited
•
The Allstate Corporation, Inc.
•
The Progressive Corporation
•
The Travelers Companies, Inc.
|
|
|
Lemonade Selected
Growth Insurance Companies |
| |
Lemonade Selected
Mature Insurance Companies |
| |
Lemonade Selected Growth
Financial Technology Companies |
|
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• Hippo Holdings, Inc.
• Kinsale Capital Group, Inc.
• Palomar Holdings, Inc.
• Trupanion, Inc.
|
| |
• Aflac Incorporated
• Chubb Limited
• The Allstate Corporation, Inc.
• The Progressive Corporation
• The Travelers Companies, Inc.
|
| |
• Adyen N.V.
• Affirm Holdings, Inc.
• Lending Club Corporation
• Shopify Inc.
• SoFi Technologies, Inc.
• Upstart Holdings, Inc.
|
|
|
Implied Exchange Ratio Reference Range
Based on Calendar Year 2022E Gross Earned Premium for Metromile and Lemonade |
| |
Implied Exchange Ratio Reference Range
Based on Calendar Year 2022E Gross Earned Premium for Metromile and 2023E Adjusted Gross Profit for Lemonade |
| |
Exchange Ratio
|
|
|
0.044x – 0.080x
|
| |
0.031x – 0.057x
|
| |
0.05263x
|
|
|
Announcement Date
|
| |
Acquiror
|
| |
Target
|
|
| February 2021 | | |
•
The Progressive Corporation
|
| |
•
Protective Insurance Corporation
|
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| January 2021 | | |
•
TowerBrook Capital Partners, L.P.; Further Global Capital Management L.P.
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| |
•
Prosight Global, Inc.
|
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| October 2020 | | |
•
Arch Capital Group Ltd.
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| |
•
Watford Holdings Ltd.
|
|
| August 2018 | | |
•
Apollo Global Management LLC
|
| |
•
Aspen Insurance Holdings Limited
|
|
| August 2018 | | |
•
The Hartford Financial Services Group, Inc.
|
| |
•
The Navigators Group, Inc.
|
|
| February 2018 | | |
•
Kemper Corporation
|
| |
•
Infinity Property and Casualty Corporation
|
|
| July 2017 | | |
•
Markel Corporation
|
| |
•
State National Companies, Inc.
|
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| March 2015 | | |
•
Endurance Specialty Holdings Ltd.
|
| |
•
Montpelier Re Holdings Ltd.
|
|
|
Implied Exchange Ratio Reference Range
|
| |
Exchange Ratio
|
|
|
0.027x – 0.050x
|
| |
0.05263x
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|
(Dollars in millions)
|
| |
Fiscal Year Ending December 31,
|
| |||||||||||||||||||||||||||
|
2022E
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
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Direct Earned Premium
|
| | | $ | 160 | | | | | $ | 275 | | | | | $ | 470 | | | | | $ | 743 | | | | | $ | 1,138 | | |
Insurance Revenue(1)
|
| | | $ | 162 | | | | | $ | 281 | | | | | $ | 484 | | | | | $ | 766 | | | | | $ | 1,176 | | |
Contribution Profit(2)
|
| | | $ | 7 | | | | | $ | 31 | | | | | $ | 79 | | | | | $ | 151 | | | | | $ | 269 | | |
Operating Income(3)
|
| | | $ | (133) | | | | | $ | (140) | | | | | $ | (130) | | | | | $ | (97) | | | | | $ | (19) | | |
(Dollars in millions)
|
| |
Fiscal Year Ending December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
2022E
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
| |
2027E
|
| |
2028E
|
| |
2029E
|
| |
2030E
|
| |
2031E
|
| ||||||||||||||||||||||||||||||||
Direct Earned Premium
|
| | | $ | 131 | | | | | $ | 183 | | | | | $ | 272 | | | | | $ | 385 | | | | | $ | 512 | | | | | $ | 644 | | | | | $ | 780 | | | | | $ | 924 | | | | | $ | 1,075 | | | | | $ | 1,235 | | |
Insurance Revenue
|
| | | $ | 132 | | | | | $ | 187 | | | | | $ | 281 | | | | | $ | 397 | | | | | $ | 530 | | | | | $ | 665 | | | | | $ | 807 | | | | | $ | 955 | | | | | $ | 1,111 | | | | | $ | 1,277 | | |
Contribution Profit(1)
|
| | | $ | 0 | | | | | $ | 12 | | | | | $ | 31 | | | | | $ | 57 | | | | | $ | 93 | | | | | $ | 136 | | | | | $ | 187 | | | | | $ | 245 | | | | | $ | 304 | | | | | $ | 350 | | |
Operating Income
|
| | | $ | (126) | | | | | $ | (130) | | | | | $ | (132) | | | | | $ | (127) | | | | | $ | (102) | | | | | $ | (69) | | | | | $ | (28) | | | | | $ | 22 | | | | | $ | 74 | | | | | $ | 109 | | |
Unlevered Free Cash
Flow(2) |
| | | $ | (111) | | | | | $ | (104) | | | | | $ | (100) | | | | | $ | (124) | | | | | $ | (108) | | | | | $ | (84) | | | | | $ | (60) | | | | | $ | (25) | | | | | $ | 8 | | | | | $ | 78 | | |
(Dollars in millions)
|
| |
Fiscal Year Ending December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
2022E
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
| |
2027E
|
| |
2028E
|
| |
2029E
|
| |
2030E
|
| |
2031E
|
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In Force Premium
|
| | | $ | 632 | | | | | $ | 864 | | | | | $ | 1,248 | | | | | $ | 1,693 | | | | | $ | 2,235 | | | | | $ | 2,838 | | | | | $ | 3,520 | | | | | $ | 4,224 | | | | | $ | 5,000 | | | | | $ | 5,750 | | |
Gross Earned Premium
|
| | | $ | 458 | | | | | $ | 692 | | | | | $ | 1,024 | | | | | $ | 1,400 | | | | | $ | 1,869 | | | | | $ | 2,414 | | | | | $ | 3,026 | | | | | $ | 3,685 | | | | | $ | 4,389 | | | | | $ | 5,116 | | |
Adjusted Gross Profit(1)
|
| | | $ | 91 | | | | | $ | 147 | | | | | $ | 212 | | | | | $ | 303 | | | | | $ | 414 | | | | | $ | 547 | | | | | $ | 701 | | | | | $ | 872 | | | | | $ | 1,061 | | | | | $ | 1,262 | | |
EBITDA(2)
|
| | | $ | (235) | | | | | $ | (196) | | | | | $ | (173) | | | | | $ | (117) | | | | | $ | (39) | | | | | $ | 57 | | | | | $ | 171 | | | | | $ | 299 | | | | | $ | 442 | | | | | $ | 594 | | |
Unlevered Free Cash Flow(3)
|
| | | $ | (249) | | | | | $ | (180) | | | | | $ | (121) | | | | | $ | (22) | | | | | $ | 94 | | | | | $ | 227 | | | | | $ | 374 | | | | | $ | 546 | | | | | $ | 729 | | | | | $ | 942 | | |
(In thousands except shares)
|
| |
For the nine months ended
|
| |
For the years ended
|
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| | | | | | | | ||||||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| | | | | | | | | | | | | ||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 75,375 | | | | | $ | 24,359 | | | | | $ | 35,064 | | | | | $ | 52,755 | | |
Cost of services exclusive of depreciation and amortization
|
| | | | (210,206) | | | | | | (44,247) | | | | | | (62,880) | | | | | | (93,957) | | |
Loss from operations
|
| | | | (147,354) | | | | | | (32,391) | | | | | | (44,820) | | | | | | (56,853) | | |
Interest expense
|
| | | | (15,974) | | | | | | (3,453) | | | | | | (6,067) | | | | | | (247) | | |
Income tax provision/(benefit)
|
| | | | — | | | | | | (67) | | | | | | (84) | | | | | | 37 | | |
Net loss
|
| | | $ | (171,644) | | | | | $ | (36,417) | | | | | $ | (120,097) | | | | | $ | (57,229) | | |
Unrealized net gain (loss) on marketable securities
|
| | | | (26) | | | | | | (33) | | | | | | (49) | | | | | | 61 | | |
Total comprehensive loss
|
| | | $ | (171,670) | | | | | $ | (36,450) | | | | | $ | (120,146) | | | | | $ | (57,168) | | |
Per Share Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding
|
| | | | 109,988,189 | | | | | | 8,882,040 | | | | | | 8,890,631 | | | | | | 8,489,372 | | |
Net loss per share, basic and diluted
|
| | | $ | (1.56) | | | | | $ | (4.10) | | | | | $ | (13.51) | | | | | $ | (6.74) | | |
Balance Sheet Data (as period end): | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 159,157 | | | | | $ | 20,991 | | | | | $ | 19,150 | | | | | $ | 18,687 | | |
Total assets
|
| | | | 332,044 | | | | | | 202,774 | | | | | | 202,164 | | | | | | 210,494 | | |
Total liabilities
|
| | | | 114,989 | | | | | | 176,721 | | | | | | 259,191 | | | | | | 149,034 | | |
Total convertible preferred stock
|
| | | | — | | | | | | 304,469 | | | | | | 304,469 | | | | | | 304,469 | | |
Total stockholder’s equity/(deficit)
|
| | | | 217,055 | | | | | | (278,416) | | | | | | (361,496) | | | | | | (243,009) | | |
Consolidated Statement of Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in operating activities
|
| | | $ | (70,331) | | | | | $ | (19,336) | | | | | $ | (32,193) | | | | | $ | (30,741) | | |
Net cash (used in) provided by investment activities
|
| | | | (43,265) | | | | | | 4,588 | | | | | | 1,805 | | | | | | (63,288) | | |
Net cash provided by financing activities
|
| | | | 273,503 | | | | | | 25,728 | | | | | | 37,689 | | | | | | 24,109 | | |
| | | | | | | | | | | | | | |
Transaction Accounting Adjustments
|
| | | ||||||||||||||||
| | |
Lemonade
Historical |
| |
Metromile
Historical |
| |
Reclassification
Adjustments — Note 3 |
| |
Pro Forma
Adjustments — Note 6 |
| | | | |
Pro Forma
Combined |
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| | |
(in millions, except per share amounts)
|
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Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed maturities available-for-sale, at fair value
|
| | | | 697.6 | | | | | | 49.8 | | | | | | — | | | | | | — | | | | | | | | | 747.4 | | |
Short-term investments
|
| | | | 107.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 107.5 | | |
Total investments
|
| | | | 805.1 | | | | | | 49.8 | | | | | | — | | | | | | — | | | | | | | | | 854.9 | | |
Cash, cash equivalents and restricted cash
|
| | | | 319.6 | | | | | | 210.7 | | | | | | 0.1 | | | | | | — | | | | | | | | | 530.4 | | |
Premium receivable, net
|
| | | | 129.2 | | | | | | 18.7 | | | | | | — | | | | | | — | | | | | | | | | 147.9 | | |
Reinsurance recoverable
|
| | | | 70.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 70.8 | | |
Prepaid reinsurance premium
|
| | | | 150.2 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 150.2 | | |
Prepaid expenses and other assets
|
| | | | — | | | | | | 7.9 | | | | | | (7.9) | | | | | | — | | | | | | | | | — | | |
Deferred acquisition costs
|
| | | | 6.0 | | | | | | 1.6 | | | | | | — | | | | | | (1.6) | | | | (B) | | | | | 6.0 | | |
Property and equipment, net
|
| | | | 10.8 | | | | | | 13.0 | | | | | | — | | | | | | — | | | | | | | | | 23.8 | | |
Intangible assets
|
| | | | 0.6 | | | | | | 29.5 | | | | | | — | | | | | | 62.9 | | | | (A) | | | | | 93.0 | | |
Value of business acquired
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.7 | | | | (B) | | | | | 0.7 | | |
Goodwill
|
| | | | — | | | | | | — | | | | | | — | | | | | | 42.3 | | | | (H) | | | | | 42.3 | | |
Other assets
|
| | | | 29.4 | | | | | | 0.8 | | | | | | 7.8 | | | | | | — | | | | | | | | | 38.0 | | |
Total assets
|
| | | | 1,521.7 | | | | | | 332.0 | | | | | | — | | | | | | 104.3 | | | | | | | | | 1,958.0 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unpaid loss and loss adjustment expense
|
| | | | 74.0 | | | | | | 70.8 | | | | | | — | | | | | | 4.5 | | | | (C) | | | | | 149.3 | | |
Unearned premium
|
| | | | 203.2 | | | | | | 17.4 | | | | | | — | | | | | | — | | | | | | | | | 220.6 | | |
Deferred revenue
|
| | | | — | | | | | | 4.6 | | | | | | — | | | | | | — | | | | | | | | | 4.6 | | |
Trade payables
|
| | | | 3.0 | | | | | | 8.9 | | | | | | — | | | | | | — | | | | | | | | | 11.9 | | |
Notes payable
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
Warrant liability
|
| | | | — | | | | | | 6.7 | | | | | | — | | | | | | (5.8) | | | | (D) | | | | | 0.9 | | |
Funds held for reinsurance treaties
|
| | | | 97.1 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 97.1 | | |
Deferred ceding commission
|
| | | | 36.1 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 36.1 | | |
Ceded premium payable
|
| | | | 24.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 24.8 | | |
Other liabilities and accrued expenses
|
| | | | 35.5 | | | | | | 6.6 | | | | | | — | | | | | | 9.2 | | | |
(E), (G)
|
| | | | 51.3 | | |
Total liabilities
|
| | | | 473.7 | | | | | | 115.0 | | | | | | — | | | | | | 7.9 | | | | | | | | | 596.6 | | |
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | (F) | | | | | — | | |
Additional paid-in capital
|
| | | | 1,539.5 | | | | | | 755.2 | | | | | | — | | | | | | (428.1) | | | | (F) | | | | | 1,866.6 | | |
Accumulated deficit
|
| | | | (491.6) | | | | | | (538.2) | | | | | | — | | | | | | 524.5 | | | |
(E), (F)
|
| | | | (505.3) | | |
Accumulated other comprehensive income
|
| | | | 0.1 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 0.1 | | |
Total stockholders’ equity
|
| | | | 1,048.0 | | | | | | 217.0 | | | | | | — | | | | | | 96.4 | | | | | | | | | 1,361.4 | | |
Total liabilities and stockholders’ equity
|
| | | | 1,521.7 | | | | | | 332.0 | | | | | | — | | | | | | 104.3 | | | | | | | | | 1,958.0 | | |
| | | | | | | | | | | | | | |
Transaction Accounting
|
| | | ||||||||||||||||
| | |
Lemonade
Historical |
| |
Metromile
Historical |
| |
Reclassification
Adjustments — Note 3 |
| |
Pro Forma
Adjustments — Note 7 |
| | | | |
Pro Forma
Combined |
| |||||||||||||||
| | |
(in millions, except per share amounts)
|
| ||||||||||||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earned premium
|
| | | | 51.6 | | | | | | 47.3 | | | | | | — | | | | | | — | | | | | | | | | 98.9 | | |
Ceding commission income
|
| | | | 31.9 | | | | | | — | | | | | | 24.0 | | | | | | — | | | | | | | | | 55.9 | | |
Net investment income
|
| | | | 1.0 | | | | | | 0.1 | | | | | | — | | | | | | — | | | | | | | | | 1.1 | | |
Commission and other income
|
| | | | 2.9 | | | | | | — | | | | | | 4.0 | | | | | | — | | | | | | | | | 6.9 | | |
Other revenue
|
| | | | — | | | | | | 28.0 | | | | | | (28.0) | | | | | | — | | | | | | | | | — | | |
Total revenue
|
| | | | 87.4 | | | | | | 75.4 | | | | | | — | | | | | | — | | | | | | | | | 162.8 | | |
Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss and loss adjustment expense, net
|
| | | | 47.0 | | | | | | 62.4 | | | | | | — | | | | | | — | | | | | | | | | 109.4 | | |
Other insurance expense
|
| | | | 16.3 | | | | | | 15.2 | | | | | | 3.5 | | | | | | (2.3) | | | |
(A), (B)
|
| | | | 32.7 | | |
Sales and marketing
|
| | | | 104.4 | | | | | | — | | | | | | 85.4 | | | | | | — | | | | | | | | | 189.8 | | |
Sales, marketing and other acquisition
costs |
| | | | — | | | | | | 85.6 | | | | | | (85.6) | | | | | | — | | | | | | | | | — | | |
Technology development
|
| | | | 35.4 | | | | | | 11.9 | | | | | | — | | | | | | — | | | | | | | | | 47.3 | | |
Amortization of capitalized software
|
| | | | — | | | | | | 8.2 | | | | | | (8.2) | | | | | | — | | | | | | | | | — | | |
Other operating expenses
|
| | | | — | | | | | | 39.5 | | | | | | (39.5) | | | | | | — | | | | | | | | | — | | |
General and administrative
|
| | | | 49.5 | | | | | | — | | | | | | 44.4 | | | | | | 6.0 | | | |
(C), (D)
|
| | | | 99.9 | | |
Interest expense
|
| | | | — | | | | | | 16.0 | | | | | | — | | | | | | — | | | | | | | | | 16.0 | | |
Impairment on digital assets
|
| | | | — | | | | | | 0.1 | | | | | | — | | | | | | — | | | | | | | | | 0.1 | | |
(Decrease) increase in fair value of stock warrant liability
|
| | | | — | | | | | | 8.1 | | | | | | — | | | | | | — | | | | | | | | | 8.1 | | |
Total expense
|
| | | | 252.6 | | | | | | 247.0 | | | | | | — | | | | | | 3.7 | | | | | | | | | 503.3 | | |
Loss before income taxes
|
| | | | (165.2) | | | | | | (171.6) | | | | | | — | | | | | | (3.7) | | | | | | | | | (340.5) | | |
Income tax expense
|
| | | | 5.8 | | | | | | — | | | | | | — | | | | | | — | | | | (F) | | | | | 5.8 | | |
Net loss
|
| | | | (171.0) | | | | | | (171.6) | | | | | | — | | | | | | (3.7) | | | | | | | | | (346.3) | | |
Other comprehensive income, net of tax | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized (loss) gain on investments
|
| | | | (1.2) | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | (1.2) | | |
Foreign currency translation adjustment
|
| | | | (0.5) | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | (0.5) | | |
Comprehensive loss
|
| | | | (172.7) | | | | | | (171.6) | | | | | | — | | | | | | (3.7) | | | | | | | | | (348.0) | | |
Per share data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share attributable to common stockholders – basic and diluted
|
| | | $ | (2.80) | | | | | $ | (1.56) | | | | | | | | | | | | | | | | (G) | | | | $ | (5.06) | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 61,086,238 | | | | | | 109,988,189 | | | | | | | | | | | | | | | | (G) | | | | | 68,376,472 | | |
| | | | | | | | | | | | | | |
Transaction Accounting Adjustments
|
| | | ||||||||||||||||
| | |
Lemonade
Historical |
| |
Metromile
Historical |
| |
Reclassification
Adjustments — Note 3 |
| |
Pro Forma
Adjustments — Note 7 |
| | | | |
Pro Forma
Combined |
| |||||||||||||||
| | |
(in millions, except per share amounts)
|
| ||||||||||||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earned premium
|
| | | | 77.3 | | | | | | 12.5 | | | | | | — | | | | | | — | | | | | | | | | 89.8 | | |
Ceding commission income
|
| | | | 15.3 | | | | | | — | | | | | | 14.9 | | | | | | — | | | | | | | | | 30.2 | | |
Net investment income
|
| | | | 1.5 | | | | | | 0.5 | | | | | | — | | | | | | — | | | | | | | | | 2.0 | | |
Commission and other income
|
| | | | 0.3 | | | | | | — | | | | | | 7.2 | | | | | | — | | | | | | | | | 7.5 | | |
Other revenue
|
| | | | — | | | | | | 22.1 | | | | | | (22.1) | | | | | | — | | | | | | | | | — | | |
Total revenue
|
| | | | 94.4 | | | | | | 35.1 | | | | | | — | | | | | | — | | | | | | | | | 129.5 | | |
Expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss and loss adjustment expense, net
|
| | | | 54.7 | | | | | | 21.2 | | | | | | — | | | | | | — | | | | | | | | | 75.9 | | |
Other insurance expense
|
| | | | 14.4 | | | | | | 16.8 | | | | | | 4.7 | | | | | | (2.8) | | | |
(A), (B)
|
| | | | 33.1 | | |
Sales and marketing
|
| | | | 80.4 | | | | | | — | | | | | | 4.6 | | | | | | — | | | | | | | | | 85.0 | | |
Sales, marketing and other acquisition costs
|
| | | | — | | | | | | 5.5 | | | | | | (5.5) | | | | | | — | | | | | | | | | — | | |
Technology development
|
| | | | 19.4 | | | | | | 8.2 | | | | | | — | | | | | | — | | | | | | | | | 27.6 | | |
Amortization of capitalized software
|
| | | | — | | | | | | 11.2 | | | | | | (11.2) | | | | | | — | | | | | | | | | — | | |
Other operating expenses
|
| | | | — | | | | | | 17.0 | | | | | | (17.0) | | | | | | — | | | | | | | | | — | | |
General and administrative
|
| | | | 46.3 | | | | | | — | | | | | | 24.4 | | | | | | 10.3 | | | |
(C), (D)
|
| | | | 94.7 | | |
| | | | | | | | | | | | | | | | | | | | | | | 13.7 | | | | (E) | | | | | | | |
Interest expense
|
| | | | — | | | | | | 6.1 | | | | | | — | | | | | | — | | | | | | | | | 6.1 | | |
Increase in fair value of stock warrant
liability |
| | | | — | | | | | | 69.3 | | | | | | — | | | | | | — | | | | | | | | | 69.3 | | |
Total expense
|
| | | | 215.2 | | | | | | 155.3 | | | | | | — | | | | | | 21.2 | | | | | | | | | 391.7 | | |
Loss before income taxes
|
| | | | (120.8) | | | | | | (120.2) | | | | | | — | | | | | | (21.2) | | | | | | | | | (262.2) | | |
Income tax expense
|
| | | | 1.5 | | | | | | (0.1) | | | | | | — | | | | | | — | | | | (F) | | | | | 1.4 | | |
Net loss
|
| | | | (122.3) | | | | | | (120.1) | | | | | | — | | | | | | (21.2) | | | | | | | | | (263.6) | | |
Other comprehensive income, net of tax | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized (loss) gain on investments
|
| | | | 0.1 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 0.1 | | |
Foreign currency translation adjustment
|
| | | | 1.6 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 1.6 | | |
Comprehensive loss
|
| | | | (120.6) | | | | | | (120.1) | | | | | | — | | | | | | (21.2) | | | | | | | | | (261.9) | | |
Per share data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share attributable to common stockholders – basic and diluted
|
| | | $ | (3.63) | | | | | $ | (13.51) | | | | | | | | | | | | | | | | (G) | | | | $ | (6.48) | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 33,654,828 | | | | | | 8,890,631 | | | | | | | | | | | | | | | | (G) | | | | | 40,652,405 | | |
| Preliminary Merger Consideration (in millions except per share amount) | | | | | | | |
|
Shares of LMND common stock to be issued to existing MILE common stockholders
|
| | | | 7,016,749 | | |
|
Closing price per share of LMND common stock(1)
|
| | | $ | 45.83 | | |
|
Merger consideration to be paid in shares of LMND common stock
|
| | | $ | 321.6 | | |
|
Fair value of MILE equity awards exchanged for LMND equity awards
|
| | | | 5.4 | | |
|
Contingent consideration
|
| | | | 0.1 | | |
|
Total Preliminary Merger Consideration
|
| | | $ | 327.1 | | |
Change in Stock Price
|
| |
Stock Price
|
| |
Estimated Merger
Consideration |
| |
Estimated Goodwill
(Bargain Purchase Gain) |
| |||||||||
| | | | | | | | |
(in millions)
|
| |
(in millions)
|
| ||||||
As presented in the pro forma condensed combined results
|
| | | $ | 45.83 | | | | | $ | 327.1 | | | | | $ | 42.3 | | |
10% increase in stock price
|
| | | | 50.41 | | | | | | 360.1 | | | | | | 75.3 | | |
30% increase in stock price
|
| | | | 59.58 | | | | | | 426.2 | | | | | | 141.4 | | |
10% decrease in stock price
|
| | | | 41.25 | | | | | | 294.2 | | | | | | 9.4 | | |
30% decrease in stock price
|
| | | | 32.08 | | | | | | 228.6 | | | | | | (56.2) | | |
| | |
Preliminary
Purchase Price Allocation |
| |||
| | |
(in millions)
|
| |||
Assets Acquired | | | |||||
Fixed maturities available-for-sale, at fair value
|
| | | $ | 49.8 | | |
Cash, cash equivalents and restricted cash
|
| | | | 229.4 | | |
Value of business acquired (“VOBA”)
|
| | | | 0.7 | | |
Property and equipment, net
|
| | | | 13.0 | | |
Goodwill
|
| | | | 42.3 | | |
Intangible assets
|
| | | | 92.4 | | |
Other assets
|
| | | | 8.7 | | |
Total assets to be acquired
|
| | | $ | 436.3 | | |
Liabilities Assumed | | | | | | | |
Unpaid loss and loss adjustment expense
|
| | | $ | 75.3 | | |
Unearned premium
|
| | | | 17.4 | | |
Deferred revenue
|
| | | | 4.6 | | |
Trade payables
|
| | | | 8.9 | | |
Warrant liability
|
| | | | 0.9 | | |
Other liabilities and accrued expenses
|
| | | | 2.1 | | |
Total liabilities to be assumed
|
| | | $ | 109.2 | | |
Net assets to be acquired
|
| | | $ | 327.1 | | |
| | |
Estimated
fair value |
| |
Estimated
average useful life (in years) |
| |
Estimated
Annual Amortization Expense |
| |||||||||
| | |
($ in millions)
|
| | | | | | | |
($ in millions)
|
| ||||||
Technology Assets
|
| | | | 85.0 | | | | | | 7 | | | | | | 12.1 | | |
State Insurance Licenses
|
| | | | 7.4 | | | | | | Indefinite | | | | | | — | | |
Total
|
| | | $ | 92.4 | | | | | | | | | | | $ | 12.1 | | |
(in millions, except for shares and per share amounts)
|
| |
Nine Months Ended
September 30, 2021 |
| |
Year Ended
December 31, 2020 |
| ||||||
Numerator: | | | | | | | | | | | | | |
Net loss attributable to common shareholders – Lemonade
|
| | | $ | (171.0) | | | | | $ | (122.3) | | |
Net loss attributable to common shareholders – Metromile
|
| | | | (171.6) | | | | | | (120.1) | | |
Pro forma transaction adjustments
|
| | | | (3.7) | | | | | | (21.2) | | |
Pro forma net loss attributable to common shareholders
|
| | | $ | (346.3) | | | | | $ | (263.6) | | |
Denominator: | | | | | | | | | | | | | |
Pro forma weighted average common shares – basic and diluted
|
| | | | 68,376,472 | | | | | | 40,652,405 | | |
Pro forma loss per share – basic and diluted
|
| | | $ | (5.06) | | | | | $ | (6.48) | | |
| | |
Metromile
|
| |
Lemonade
|
| |
Pro Forma
Combined |
| |||||||||
| | | | | | | | ||||||||||||
Book value per ordinary share(1)
|
| | | $ | 1.70 | | | | | $ | 17.01 | | | | | $ | 19.57 | | |
Book value per share (basic and diluted)(2)
|
| | | $ | 1.97 | | | | | $ | 17.16 | | | | | $ | 19.64 | | |
Net loss per share (basic and diluted)
|
| | | $ | (1.56) | | | | | $ | (2.80) | | | | | $ | (5.06) | | |
| | |
Metromile
|
| |
Lemonade
|
| |
Pro Forma
Combined |
| |||||||||
| | | | | | | | ||||||||||||
Book value per ordinary share(1)
|
| | | $ | (0.04) | | | | | $ | 9.53 | | | | | | N/A | | |
Book value per share (basic and diluted)(2)
|
| | | $ | (0.04) | | | | | $ | 16.07 | | | | | | N/A | | |
Net loss per share (basic and diluted)
|
| | | $ | (13.51) | | | | | $ | (3.63) | | | | | $ | (6.46) | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
| | |
($ in millions, except for
Direct Earned Premium per Policy) |
| |
($ in millions, except for
Direct Earned Premium per Policy) |
| ||||||||||||||||||
Policies in Force (end of period)
|
| | | | 95,238 | | | | | | 92,318 | | | | | | 95,238 | | | | | | 92,318 | | |
Direct Earned Premium per Policy (annualized)
|
| | | $ | 1,197 | | | | | $ | 1,128 | | | | | $ | 1,160 | | | | | $ | 1,082 | | |
Direct Written Premium
|
| | | $ | 29.1 | | | | | $ | 28.1 | | | | | $ | 83.4 | | | | | $ | 76.4 | | |
Direct Earned Premium
|
| | | $ | 28.5 | | | | | $ | 26.7 | | | | | $ | 82.1 | | | | | $ | 74.1 | | |
Gross Profit/(Loss)
|
| | | $ | (6.0) | | | | | $ | (3.3) | | | | | $ | (10.4) | | | | | $ | (8.9) | | |
Gross Margin
|
| | | | (20.0)% | | | | | | (41.3)% | | | | | | (13.8)% | | | | | | (36.5)% | | |
Accident Period Contribution Profit/(Loss)
|
| | | $ | (3.0) | | | | | $ | 6.2 | | | | | $ | (1.1) | | | | | $ | 14.0 | | |
Accident Period Contribution Margin
|
| | | | (10.4)% | | | | | | 22.6% | | | | | | (1.3)% | | | | | | 18.6% | | |
Contribution Profit/(Loss)
|
| | | $ | (2.1) | | | | | $ | 4.7 | | | | | $ | (5.1) | | | | | $ | 11.1 | | |
Contribution Margin
|
| | | | (7.3)% | | | | | | 17.2% | | | | | | (6.2)% | | | | | | 14.8% | | |
Direct Loss Ratio
|
| | | | 81.3% | | | | | | 58.2% | | | | | | 79.5% | | | | | | 59.1% | | |
Direct LAE Ratio
|
| | | | 14.4% | | | | | | 12.9% | | | | | | 13.9% | | | | | | 13.1% | | |
Accident Period Loss Ratio
|
| | | | 81.6% | | | | | | 56.7% | | | | | | 73.7% | | | | | | 58.6% | | |
Accident Period LAE Ratio
|
| | | | 17.3% | | | | | | 8.8% | | | | | | 14.9% | | | | | | 9.6% | | |
| | |
Three Months Ended
September 30, |
| | | | | | | | | | | | | |||||||||
| | | | |
2020
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||
Revenue
|
| |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Premiums earned, net
|
| | | $ | 28,142 | | | | | $ | 3,139 | | | | | $ | 25,003 | | | | | | 797% | | |
Investment income
|
| | | | 30 | | | | | | 81 | | | | | | (51) | | | | | | (63)% | | |
Other revenue
|
| | | | 1,829 | | | | | | 4,731 | | | | | | (2,902) | | | | | | (61)% | | |
Total revenue
|
| | | | 30,001 | | | | | | 7,951 | | | | | | 22,050 | | | | | | 277% | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | | 27,480 | | | | | | 4,443 | | | | | | 23,037 | | | | | | 519% | | |
Policy servicing expense and other
|
| | | | 5,674 | | | | | | 4,119 | | | | | | 1,555 | | | | | | 38% | | |
Sales, marketing and other acquisition costs
|
| | | | 12,332 | | | | | | 28 | | | | | | 12,304 | | | | | | 43943% | | |
Research and development
|
| | | | 5,130 | | | | | | 1,832 | | | | | | 3,298 | | | | | | 180% | | |
Amortization of capitalized software
|
| | | | 2,838 | | | | | | 2,815 | | | | | | 23 | | | | | | 1% | | |
Other operating expenses
|
| | | | 14,207 | | | | | | 3,924 | | | | | | 10,283 | | | | | | 262% | | |
Total costs and expenses
|
| | | | 67,661 | | | | | | 17,161 | | | | | | 50,500 | | | | | | 294% | | |
Loss from operations
|
| | | | (37,660) | | | | | | (9,210) | | | | | | (28,450) | | | | | | 309% | | |
Other expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | 1,513 | | | | | | (1,513) | | | | | | (100)% | | |
Impairment on digital assets
|
| | | | 117 | | | | | | — | | | | | | 117 | | | | | | NM | | |
Decrease in fair value of stock warrant liability
|
| | | | (11,020) | | | | | | (26) | | | | | | (10,994) | | | | | | 42285% | | |
Total other expense
|
| | | | (10,903) | | | | | | 1,487 | | | | | | (12,390) | | | | | | (833)% | | |
Loss before taxes
|
| | | | (26,757) | | | | | | (10,697) | | | | | | (16,060) | | | | | | 150% | | |
Income tax benefit
|
| | | | — | | | | | | (67) | | | | | | 67 | | | | | | (100)% | | |
Net loss
|
| | | $ | (26,757) | | | | | $ | (10,630) | | | | | $ | (16,127) | | | | | | 152% | | |
| | |
Nine Months Ended
September 30, |
| | | | | | | | | | | | | |||||||||
| | | | |
2020
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||
Revenue
|
| |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Premiums earned, net
|
| | | $ | 47,316 | | | | | $ | 9,360 | | | | | $ | 37,956 | | | | | | 406% | | |
Investment income
|
| | | | 85 | | | | | | 500 | | | | | | (415) | | | | | | (83)% | | |
Other revenue
|
| | | | 27,974 | | | | | | 14,499 | | | | | | 13,475 | | | | | | 93% | | |
Total revenue
|
| | | | 75,375 | | | | | | 24,359 | | | | | | 51,016 | | | | | | 209% | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | | 62,383 | | | | | | 12,214 | | | | | | 50,169 | | | | | | 411% | | |
Policy servicing expense and other
|
| | | | 15,172 | | | | | | 12,803 | | | | | | 2,369 | | | | | | 19% | | |
Sales, marketing and other acquisition costs
|
| | | | 85,552 | | | | | | 3,616 | | | | | | 81,936 | | | | | | 2266% | | |
Research and development
|
| | | | 11,898 | | | | | | 6,668 | | | | | | 5,230 | | | | | | 78% | | |
Amortization of capitalized software
|
| | | | 8,190 | | | | | | 8,311 | | | | | | (121) | | | | | | (1)% | | |
Other operating expenses
|
| | | | 39,534 | | | | | | 13,138 | | | | | | 26,396 | | | | | | 201% | | |
Total costs and expenses
|
| | | | 222,729 | | | | | | 56,750 | | | | | | 165,979 | | | | | | 292% | | |
| | |
Nine Months Ended
September 30, |
| | | | | | | | | | | | | |||||||||
| | | | |
2020
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||
Revenue
|
| |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Loss from operations
|
| | | | (147,354) | | | | | | (32,391) | | | | | | (114,963) | | | | | | 355% | | |
Other expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 15,974 | | | | | | 3,453 | | | | | | 12,521 | | | | | | 363% | | |
Impairment on digital assets
|
| | | | 183 | | | | | | — | | | | | | 183 | | | | | | NM | | |
Increase in fair value of stock warrant liability
|
| | | | 8,133 | | | | | | 640 | | | | | | 7,493 | | | | | | 1171% | | |
Total other expense
|
| | | | 24,290 | | | | | | 4,093 | | | | | | 20,197 | | | | | | 493% | | |
Net loss before taxes
|
| | | | (171,644) | | | | | | (36,484) | | | | | | (135,160) | | | | | | 370% | | |
Income tax provision (benefit)
|
| | | | — | | | | | | (67) | | | | | | 67 | | | | | | (100)% | | |
Net loss after taxes
|
| | | $ | (171,644) | | | | | $ | (36,417) | | | | | $ | (135,227) | | | | | | 371% | | |
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
| | |
($ in millions)
|
| |
($ in millions)
|
| ||||||||||||||||||
Total revenue
|
| | | | 30.0 | | | | | | 8.0 | | | | | | 75.4 | | | | | | 24.4 | | |
Losses and LAE
|
| | | | (27.5) | | | | | | (4.4) | | | | | | (62.4) | | | | | | (12.2) | | |
Policy servicing expense and other
|
| | | | (5.7) | | | | | | (4.1) | | | | | | (15.2) | | | | | | (12.8) | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
| | |
($ in millions)
|
| |
($ in millions)
|
| ||||||||||||||||||
Amortization of capitalized software
|
| | | | (2.8) | | | | | | (2.8) | | | | | | (8.2) | | | | | | (8.3) | | |
Gross profit/(loss)
|
| | | | (6.0) | | | | | | (3.3) | | | | | | (10.4) | | | | | | (8.9) | | |
Gross margin
|
| | | | (20.0)% | | | | | | (41.3)% | | | | | | (13.8)% | | | | | | (36.5)% | | |
Less revenue adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue Adjustments Related to Reinsurance
|
| | | | — | | | | | | 19.6 | | | | | | 9.5 | | | | | | 52.7 | | |
Revenue from Enterprise Segment
|
| | | | (1.5) | | | | | | (1.1) | | | | | | (3.7) | | | | | | (3.6) | | |
Interest Income and Other
|
| | | | 0.3 | | | | | | 0.9 | | | | | | 1.7 | | | | | | 1.7 | | |
Less costs and expense adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss and LAE Adjustments Related to Reinsurance
|
| | | | — | | | | | | (14.5) | | | | | | (14.7) | | | | | | (41.2) | | |
Loss and LAE Adjustments Related to Prior Period
Development |
| | | | (0.9) | | | | | | 1.5 | | | | | | 4.0 | | | | | | 2.9 | | |
Bad Debt, Report Costs and Other Expenses
|
| | | | 0.5 | | | | | | (0.6) | | | | | | 0.3 | | | | | | (0.8) | | |
Amortization of Internally Developed Software
|
| | | | 2.8 | | | | | | 2.8 | | | | | | 8.2 | | | | | | 8.3 | | |
Devices
|
| | | | 1.8 | | | | | | 0.9 | | | | | | 4.0 | | | | | | 2.9 | | |
Accident period contribution profit/(loss)
|
| | | $ | (3.0) | | | | | $ | 6.2 | | | | | $ | (1.1) | | | | | $ | 14.0 | | |
Prior Period Development
|
| | | $ | 0.9 | | | | | $ | (1.5) | | | | | $ | (4.0) | | | | | $ | (2.9) | | |
Contribution profit/(loss)
|
| | | $ | (2.1) | | | | | $ | 4.7 | | | | | $ | (5.1) | | | | | $ | 11.1 | | |
Total revenue
|
| | | $ | 30.0 | | | | | $ | 8.0 | | | | | $ | 75.4 | | | | | $ | 24.4 | | |
Revenue adjustments
|
| | | | (1.2) | | | | | | 19.4 | | | | | | 7.5 | | | | | | 50.8 | | |
Adjusted revenue
|
| | | $ | 28.8 | | | | | $ | 27.4 | | | | | $ | 82.9 | | | | | $ | 75.2 | | |
Accident period contribution margin
|
| | | | (10.4)% | | | | | | 22.6% | | | | | | (1.3)% | | | | | | 18.6% | | |
Contribution margin
|
| | | | (7.3)% | | | | | | 17.2% | | | | | | (6.2)% | | | | | | 14.8% | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | | | |
2020
|
| |||||||
| | |
($ in millions)
|
| |||||||||
Net cash used in operating activities
|
| | | $ | (70.3) | | | | | $ | (19.3) | | |
Net cash (used in) provided by investing activities
|
| | | | (43.3) | | | | | | 4.6 | | |
Net cash provided by financing activities
|
| | | | 273.5 | | | | | | 25.7 | | |
| | |
Total
|
| |
2021 (remaining
three months) |
| |
2022 – 2023
|
| |
2024 – 2025
|
| |
Thereafter
|
| |||||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||||||||
Long-term debt
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Interest on long-term debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Operating Leases
|
| | | | 23.9 | | | | | | 0.8 | | | | | | 6.3 | | | | | | 5.6 | | | | | | 11.2 | | |
Purchase Commitments
|
| | | | 1.1 | | | | | | 1.1 | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 25.0 | | | | | $ | 1.9 | | | | | $ | 6.3 | | | | | $ | 5.6 | | | | | $ | 11.2 | | |
Name
|
| |
Cash
($)(1) |
| |
Equity
($)(2)(3) |
| |
Perquisites/
Benefits ($)(4) |
| |
Total
($) |
| ||||||||||||
| | | | 450,000 | | | | | | 5,403,754 | | | | | | 19,924 | | | | | | 5,873,678 | | | |
Mark Gundacker(5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Paw Anderson
|
| | | | 300,000 | | | | | | 173,604 | | | | | | — | | | | | | 473,604 | | |
Name
|
| |
Metromile
Stock Options ($) |
| |
Metromile
Performance- Based RSU Awards ($) |
| |
Metromile
Time-Based RSU Awards ($) |
| |||||||||
| | | | — | | | | | | — | | | | | | 3,815,004 | | | |
Mark Gundacker
|
| | | | — | | | | | | — | | | | | | — | | |
Paw Anderson
|
| | | | 18,913 | | | | | | — | | | | | | 154,691 | | |
Name
|
| |
Lemonade
Stock Options ($) |
| |
Lemonade
RSU Awards ($) |
| ||||||
| | | | — | | | | | | 1,588,750 | | |
|
Lemonade
|
| |
Metromile
|
|
|
Authorized and Outstanding Capital Stock
|
| |||
|
Lemonade is authorized to issue 210,000,000 shares of stock, consisting of 200,000,000 shares of common stock, par value $0.00001 per share, and 10,000,000 shares of preferred stock, par value $0.00001 per share.
As of the close of business on the record date, there were shares of Lemonade common stock and no shares of preferred stock issued and outstanding.
|
| |
Metromile is authorized to issue 650,000,000 shares of stock, consisting of 640,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share.
As of the close of business on the record date, there were shares of Metromile common stock and no shares of preferred stock issued and outstanding.
|
|
|
Rights of Preferred Stock
|
| |||
|
Lemonade is authorized to issue preferred stock in one or more series. The Lemonade board of directors may fix by resolution or resolutions the designation, powers (which may include, without limitation, full, limited or no voting power), preferences, and rights of the shares and any qualifications, limitations or restrictions thereof, as may be permitted by the DGCL.
The number of authorized shares of preferred stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of a majority of the voting power of the stock of Lemonade entitled to vote thereon, irrespective of the provisions of Section 242(b)(2) of the DGCL.
|
| |
Metromile is authorized to issue preferred stock in one or more series. The Metromile board of directors may fix by resolution the number of shares of preferred stock and determine or alter for each series, such voting powers, full or limited, or no voting powers, the designations, preferences, and relative, participating, optional, or other rights, and the qualifications, limitations and restrictions thereof, as may be permitted by the DGCL.
The Metromile board of directors is further authorized to increase (but not above the total number of authorized shares of the class) or decrease (but not below the number of shares of any such series then outstanding) the number of shares of any series of preferred stock. If the number of shares of any series of preferred stock is so decreased, then the shares constituting such decrease shall resume the status which they had prior to the adoption of the resolution originally fixing the number of shares of such series. The number of authorized shares of preferred stock may be increased or decreased (but not below the number of shares of any such series then
|
|
|
Lemonade
|
| |
Metromile
|
|
| | | | outstanding) by the affirmative vote of the holders of a majority of the voting power of the stock of Metromile entitled to vote thereon. | |
|
Voting Rights
|
| |||
|
Subject to the paragraph below, each share of Lemonade common stock entitles the holder to one vote on each matter properly submitted to the stockholders of Lemonade for their vote; provided, however, that except as otherwise required by law, holders of shares of Lemonade common stock shall not be entitled to vote on any amendment to the Lemonade charter that relates solely to the terms of the outstanding preferred stock if the holders of such affected preferred stock are entitled to vote thereon pursuant to the Lemonade charter or pursuant to the DGCL.
Any person who acquires Lemonade common stock and/or Lemonade preferred stock, either directly or beneficially through an agent, broker, transfer agent or the like, that would result in such person having the power to vote over 9.90% of the total number of votes that may be cast by all the then issued and outstanding shares of Lemonade entitled to vote on any matter, shall first obtain an approval or determination of non-control, as applicable, from the Superintendent of the New York Department of Financial Services and any other applicable state insurance regulatory authority, as provided in all applicable laws and regulations.
Other than with respect to the election of directors, for all matters as to which no other voting requirement is specified by the DGCL, Lemonade’s charter or bylaws, the affirmative vote required for stockholder action is that of a majority of the shares present in person, by remote communication, if applicable, or represented by proxy duly authorized at the meeting and entitled to vote on the subject matter.
|
| |
Each share of Metromile common stock entitles the holder to one vote on each matter properly submitted to the stockholders of Metromile for their vote; provided however, that, holders of common stock are not entitled to vote on any amendment to Metromile’s charter that relates to the terms of one or more outstanding series of preferred stock if the holders of such affected series are entitled to vote thereon by law or pursuant to the charter.
Other than with respect to the election of directors, for all matters as to which no other voting requirement is specified by the DGCL, Metromile’s charter or bylaws, the affirmative vote required for stockholder action is that of a majority of the shares present in person, by remote communication, if applicable, or represented by proxy duly authorized at the meeting and entitled to vote on the subject matter.
|
|
|
Distributions and Dividends
|
| |||
| The Lemonade board of directors may declare and pay dividends upon the shares of Lemonade capital stock. Dividends may be paid in cash, in property or in shares of stock. The Lemonade board of directors may set apart any funds available for dividends a reserve or reserves for any proper purpose and may abolish any such reserve, at its discretion. Such purposes shall include, but not be limited to, equalizing dividends, repairing or maintaining any property of Lemonade, and meeting contingencies. | | | The Metromile board of directors may declare and pay dividends upon the shares of Metromile capital stock. Dividends may be paid in cash, in property or in shares of stock. The Metromile board of directors may set apart out of any of the funds of Metromile available for dividends a reserve or reserves for any proper purpose and may modify or abolish such reserve. | |
|
Lemonade
|
| |
Metromile
|
|
|
Quorum
|
| |||
| The Lemonade bylaws provide that the presence (in person, by remote communication, if applicable, or by proxy duly authorized) of the holders of a majority of the voting power of the outstanding shares entitled to vote at the meeting constitutes a quorum. | | | The Metromile bylaws provide that the presence (in person, by remote communication, if applicable, or by proxy duly authorized) of the holders of a majority of the voting power of the outstanding shares entitled to vote at the meeting constitutes a quorum. | |
|
Record Date
|
| |||
|
The Lemonade board of directors may fix a record date for purposes of, among other things, determining the rights of stockholders to notice of or to vote at such meeting.
In the case of determining stockholders entitled to notice of any meeting of stockholder or any adjournment thereof, or to vote at such meeting, the record date cannot be less than ten or more than 60 days preceding the date of any meeting of stockholders, unless the Lemonade board of directors determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination.
If no record date is fixed, the record date for determining stockholders entitled to notice of and to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or if notice is waived, at the close of business on the day next preceding the day on which the meeting is held.
|
| |
The Metromile Board may fix a record date for purposes of, among other things, determining the rights of stockholders to notice of or to vote at such meeting.
In the case of determining stockholders entitled to notice of any meeting of stockholder or any adjournment thereof, or to vote at such meeting, the record date cannot be less than ten or more than 60 days preceding the date of any meeting of stockholders, unless, for the purpose of determining the stockholders entitled to vote, the Metromile Board determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination.
If no record date is fixed, the record date for determining stockholders entitled to notice of and to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or if notice is waived, at the close of business on the day next preceding the day on which the meeting is held.
|
|
|
Number of Directors
|
| |||
| The Lemonade charter provides that the number of directors on Lemonade’s board of directors shall be fixed exclusively by resolutions adopted by a majority of the Lemonade board of directors. There are currently seven Lemonade directors. | | | The Metromile charter provides that the number of directors on Metromile’s board of directors shall be fixed exclusively by resolutions adopted by a majority of the Metromile Board. There are currently seven Metromile directors. | |
|
Election of Directors
|
| |||
|
Pursuant to the Lemonade charter, directors serve three year terms and are divided into three classes designated as either Class I, Class II or Class III. The election of each class of directors is staggered such that each year, the term of only one class expires and stockholders vote only to elect directors with respect to such class.
Pursuant to the Lemonade bylaws, directors are elected at each annual meeting of stockholders by a plurality of the votes of the shares present in person, by remote communication, if applicable, or represented by proxy duly authorized at the meeting and entitled to vote generally on the election of
|
| |
Pursuant to the Metromile charter, directors serve three year terms and are divided into three classes designated as either Class I, Class II or Class III. The election of each class of directors is staggered such that each year, the term of only one class expires and stockholders vote only to elect directors with respect to such class.
Pursuant to the Metromile bylaws, directors are elected at each annual meeting of stockholders by a plurality of the votes of the shares present in person, by remote communication, if applicable, or represented by proxy duly authorized at the meeting and entitled to vote generally on the election of
|
|
|
Lemonade
|
| |
Metromile
|
|
|
directors.
Newly created directorships resulting from any increase in the authorized number of directors or any vacancies resulting from death, resignation, disqualification, removal or other causes are filled by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of Lemonade’s board of directors, or by the sole remaining director.
|
| |
directors.
Newly created directorships resulting from any increase in the authorized number of directors or any vacancies resulting from death, resignation, disqualification, removal or other causes are filled by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of Metromile’s board of directors, or by the sole remaining director.
|
|
|
Cumulative Voting
|
| |||
| Lemonade stockholders have cumulative voting rights. | | | Metromile stockholders do not have cumulative voting rights. | |
|
Removal of Directors
|
| |||
| The Lemonade directors may be removed with cause by the affirmative vote of the holders of two-thirds of the voting power of all then-outstanding shares of Lemonade capital stock entitled to vote generally at an election of directors. | | | The Metromile directors may be removed with cause by the affirmative vote of the holders of a majority of the voting power of all then-outstanding shares of Metromile capital stock entitled to vote generally at an election of directors. | |
|
Director Nominations by Stockholders
|
| |||
|
The Lemonade bylaws provide that stockholders who comply with the notice provisions set forth in the Lemonade bylaws, are stockholders of record on the date of giving such notice and are entitled to vote at an annual meeting of stockholders may nominate a candidate to the Lemonade board of directors for election at such meeting. These notice requirements generally require that, among other things, the stockholder deliver a notice of any such nomination containing specified information no less than 90 days and no more than 120 days prior to the anniversary of the date of the immediately preceding annual meeting of stockholders.
Lemonade does not have a proxy access provision in its bylaws.
|
| |
The Metromile bylaws provide that stockholders who comply with the notice provisions set forth in the Metromile bylaws, are stockholders of record on the date of giving such notice and are entitled to vote at an annual meeting of stockholders may nominate a candidate to the Metromile Board for election at such meeting. These notice requirements generally require that, among other things, the stockholder deliver a notice of any such nomination containing specified information no less than 90 days and no more than 120 days prior to the anniversary of the date of the immediately preceding annual meeting of stockholders.
Metromile does not have a proxy access provision in its bylaws.
|
|
|
Stockholder Proposals
|
| |||
|
Business may be properly brought before an annual meeting by any stockholder so long as he or she is a stockholder of record at the time of giving the written notice provided in the Lemonade bylaws, is entitled to vote at the meeting and complies with the notice requirements set forth in the Lemonade bylaws.
To be timely, a stockholder’s notice must generally be delivered to Lemonade’s Secretary no less than 90 days and no more than 120 days prior to the first anniversary of the preceding year’s annual meeting of stockholders.
|
| |
Business may be properly brought before an annual meeting by any stockholder so long as he or she is a stockholder of record at the time of giving the written notice provided in the Metromile bylaws, is entitled to vote at the meeting and complies with the notice requirements set forth in the Metromile bylaws.
To be timely, a stockholder’s notice must generally be delivered to Metromile’s Secretary no less than 90 days and no more than 120 days prior to the first anniversary of the preceding year’s annual meeting of stockholders.
|
|
|
Lemonade
|
| |
Metromile
|
|
|
Stockholder Action by Written Consent
|
| |||
| The Lemonade charter prohibits stockholder action by written consent or electronic transmission and requires that any action taken by Lemonade stockholders be taken at an annual or special meeting of stockholders. | | | The Metromile charter prohibits stockholder action by written consent or electronic transmission and requires that any action taken by Metromile stockholders be taken at an annual or special meeting of stockholders. | |
|
Special Stockholder Meetings
|
| |||
| A special meeting of stockholders may be called only by the chairperson of the Lemonade board of directors, the chief executive officer, the president, the secretary or a majority of the total number of directors constituting the Lemonade board of directors at the written request of two directors. The only matters to be brought before a special meeting are those specified in the meeting notice. | | | A special meeting of stockholders may be called only by the chairperson of the Metromile board of directors, Metromile’s chief executive officer, or the Metromile Board pursuant to a resolution. The only matters to be brought before a special meeting are those specified in the meeting notice. | |
|
Notice of Stockholder Meetings
|
| |||
| Whenever stockholders are required or permitted to take any action at a meeting, they must be given notice that states the place, if any, date and hour of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Notice must be given no less than ten and no more than 60 days before the date of the meeting. | | | Whenever stockholders are required or permitted to take any action at a meeting, they must be given notice that states the place, date and time of the meeting, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at any such meeting. Notice must be given no less than ten and no more than 60 days before the date of the meeting. | |
|
Adjournment of Stockholder Meetings
|
| |||
| When a meeting is adjourned to another time or place, if any, notice need not be given of the adjourned meeting if the time, place, if any, thereof, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting are announced at the meeting at which the adjournment is taken. At any adjourned meeting, Lemonade may transact any business which might have been transacted at the original meeting. | | |
Any meeting of the stockholders may be adjourned by the person who called the meeting or the chairperson of the meeting, or by the vote of the holders of a majority of the voting power of shares present in person, by remote communication, if applicable, or represented by proxy duly authorized at the meeting and entitled vote at the meeting.
When a meeting is adjourned to another time or place, notice is not required if the time and place are announced at the meeting at which the adjournment is taken; provided that notice must be given to any stockholder entitled to vote at the adjourned meeting if the adjournment is longer than 30 days or if a new record date is fixed for the adjourned meeting. At the adjourned meeting, Metromile may transact any business that might have been transacted at the original meeting.
|
|
|
Lemonade
|
| |
Metromile
|
|
|
Limitation of Personal Liability of Directors
|
| |||
| The Lemonade charter provides that no Lemonade director will be personally liable to Lemonade or its stockholders for monetary damages for breach of his or her fiduciary duty as a director to the fullest extent permitted by the DGCL, except for liability (i) for any breach of the director’s duty of loyalty to this corporation or its stockholders, (ii) for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the DGCL, or (iv) for any transaction from which the director derived any improper personal benefit. | | | The Metromile charter provides that no Metromile director will be personally liable to Metromile or its stockholders for monetary damages for breach of his or her fiduciary duty as a director to the fullest extent permitted by the DGCL. | |
|
Indemnification of Directors and Officers
|
| |||
|
The Lemonade charter and bylaws provide that Lemonade will indemnify its directors and officers who was or is a party or is made or is threatened to be made a party or is otherwise involved in proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of the corporation, against all liability and loss suffered and expenses (including attorneys’ fees, judgments, fines ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred by such person.
Lemonade is also obligated, to the fullest extent not prohibited by applicable law, to pay the expenses (including attorneys’ fees) incurred by any officer or director of Lemonade, and may pay the expenses incurred by any employee or agent of the Corporation, in defending any proceeding in advance of its final disposition; provided, however, that, to the extent required by law, such payment of expenses in advance of the final disposition of the proceeding shall be made only upon receipt of an undertaking by the person being indemnified to repay all amounts advanced if it should be ultimately determined that such person is not entitled to be indemnified.
Metromile has also entered into indemnification agreements with certain directors and officers. These agreements, among other things, indemnify Lemonade directors and officers for certain expenses (including attorneys’ fees), judgments, fines and settlement payments incurred in any action in connection with the good faith performance of their duties as a director or officer.
|
| |
The Metromile charter and bylaws provide that Metromile will indemnify its directors and executive officers who was or is a party or is made or is threatened to be made a party or is otherwise involved in proceeding, by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of the corporation, against all liability and loss suffered and expenses (including attorneys’ fees) reasonably incurred by person.
Metromile is also obligated to advance to any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person is or was a director or executive officer of Metromile, or is or was serving at the request of Metromile as a director or executive officer of another corporation, partnership, joint venture, trust or other enterprise, all expenses incurred by any director or executive officer in connection with such proceeding; provided, however, that, no advance shall be made if such person acted in bad faith or in a manner that such person did not believe to be in or not opposed to the best interests of the corporation.
Metromile has also entered into indemnification agreements with certain directors and executive officers. These agreements, among other things, indemnify Metromile directors and executive officers for certain expenses (including attorneys’ fees), judgments, fines and settlement payments incurred in any action in connection with the good faith performance of their duties as a director or executive officer.
|
|
|
Lemonade
|
| |
Metromile
|
|
|
Rights Upon Liquidation
|
| |||
| Upon the liquidation, dissolution or winding up of Lemonade, after payment or provision for payment of the debts and other liabilities of Lemonade and subject to the rights, if any, of the holders of any outstanding preferred stock or any class of stock having a preference over or the right to participate with the common stock with respect to the distribution of assets of Lemonade upon such dissolution, liquidation or winding up of Lemonade, the holders of Lemonade common stock shall be entitled to receive the remaining assets of Lemonade available for distribution to its stockholders ratably in proportion to the number of shares held by them. | | | Metromile’s charter and bylaws do not provide for shareholder rights upon liquidation. | |
|
Stockholder Rights Plan
|
| |||
| The DGCL does not include a statutory provision expressly validating stockholder rights plans. However, such plans have generally been upheld by the decisions of courts applying Delaware law. Lemonade does not have a stockholder rights plan currently in effect. | | | The DGCL does not include a statutory provision expressly validating stockholder rights plans. However, such plans have generally been upheld by the decisions of courts applying Delaware law. Metromile does not have a stockholder rights plan currently in effect. | |
|
Certain INSU SPAC transactions
|
| |||
|
Section 203 of the DGCL generally prohibits a Delaware corporation from engaging in a business combination with an “interested stockholder” that acquires more than 15% but less than 85% of the corporation’s outstanding voting stock for three years following the time that person becomes an “interested stockholder” (generally defined as a holder who (a) together with its affiliates and associates, owns or (b) is an affiliate or associate of the corporation and, together with that person’s affiliates and associates, has owned at any time within the previous three years, at least 15% of the corporation’s outstanding shares), unless prior to the date the person becomes an interested stockholder, the corporation’s board of directors approves either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder or the business combination is approved by the corporation’s board of directors
and by the affirmative vote of at least two-thirds of the corporation’s outstanding voting stock that is not owned by the interested stockholder at a meeting of stockholders (and not by written consent) or other specified exceptions are met.
Lemonade’s charter expressly provides that it shall not be governed by Section 203 of the DGCL (or any successor provision thereto), and that the
|
| | Section 203 of the DGCL generally prohibits a Delaware corporation from engaging in a business combination with an “interested stockholder” that acquires more than 15% but less than 85% of the corporation’s outstanding voting stock for three years following the time that person becomes an “interested stockholder” (generally defined as a holder who (a) together with its affiliates and associates, owns or (b) is an affiliate or associate of the corporation and, together with that person’s affiliates and associates, has owned at any time within the previous three years, at least 15% of the corporation’s outstanding shares), unless prior to the date the person becomes an interested stockholder, the corporation’s board of directors approves either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder or the business combination is approved by the corporation’s board of directors and by the affirmative vote of at least two-thirds of the corporation’s outstanding voting stock that is not owned by the interested stockholder at a meeting of stockholders (and not by written consent) or other specified exceptions are met. The DGCL allows a corporation’s certificate of incorporation to contain a provision expressly electing not to be governed by Section 203, but the Metromile charter has not opted out of Section 203. | |
|
Lemonade
|
| |
Metromile
|
|
| restrictions contained in Section 203 shall not apply until immediately following the time at which both of the following conditions exist (if ever): (a) Section 203 by its terms would apply to Lemonade as required by law; and (b) Daniel Schreiber and Shai Wininger do not beneficially own shares of capital stock of Lemonade representing at least fifteen percent (15%) of the voting power of all the then outstanding shares of capital stock of Lemonade, and Lemonade shall thereafter be governed by Section 203 if and for so long as Section 203 by its terms shall apply to Lemonade. Although the DGCL permits a Delaware corporation’s certificate of incorporation to provide for a greater vote for a merger, consolidation or sale of substantially all the assets of a corporation than the vote described above, the Lemonade charter does not require a greater vote. | | | Although the DGCL permits a Delaware corporation’s certificate of incorporation to provide for a greater vote for a merger, consolidation or sale of substantially all the assets of a corporation than the vote described above, the Metromile charter does not require a greater vote. | |
Name of Beneficial Owner (>5%)
|
| |
Shares of Lemonade
Common Stock Owned |
| |
Percentage of Total
Outstanding Lemonade Common Stock (%)(1) |
| ||||||
5% Stockholders | | | | | | | | | | | | | |
SoftBank Group Capital Ltd.(1)
|
| | | | 11,983,384 | | | | | | 19.4% | | |
Baillie Gifford & Co(2)
|
| | | | 3,282,302 | | | | | | 5.3% | | |
Directors and Executive Officers | | | | | | | | | | | | | |
| | | | 14,683,543 | | | | | | 23.8% | | | |
| | | | 15,367,043 | | | | | | 24.9% | | | |
Tim Bixby(5)
|
| | | | 382,150 | | | | | | * | | |
John Peters(6)
|
| | | | 188,787 | | | | | | * | | |
Jorge Espinel(7)
|
| | | | 230,000 | | | | | | * | | |
Adina Eckstein(8)
|
| | | | 38,750 | | | | | | * | | |
Joel Cutler(9)
|
| | | | 1,519,590 | | | | | | 2.5% | | |
Michael Eisenberg(10)
|
| | | | 1,829,446 | | | | | | 3.0% | | |
Silvija Martincevic
|
| | | | — | | | | | | * | | |
Irina Novoselsky
|
| | | | — | | | | | | * | | |
Mwashuma Nyatta(11)
|
| | | | 11,983,384 | | | | | | 19.4% | | |
Caryn Seidman-Becker(12)
|
| | | | 96,875 | | | | | | * | | |
All executive officers and directors as a group (11 persons)(13)
|
| | | | 22,352,800 | | | | | | 36.3% | | |
Name of Beneficial Owner (>5%)(1)
|
| |
Shares of
Metromile Common Stock Owned |
| |
Percentage of Total
Outstanding Metromile Common Stock (%) |
| ||||||
5% Stockholders | | | | | | | | | | | | | |
China Pacific Property Insurance Co. Ltd.(2)
|
| | | | 13,694,416 | | | | | | 10.6% | | |
New Enterprise Associates 13, L.P.(3)
|
| | | | 10,451,259 | | | | | | 8.1% | | |
Miller Value Partners, LLC(4)
|
| | | | 8,003,265 | | | | | | 6.2% | | |
The Vanguard Group, Inc.(5)
|
| | | | 7,568,668 | | | | | | 5.9% | | |
Entities Affiliated with Hudson Structured Capital Management Ltd.(6)
|
| | | | 7,666,839 | | | | | | 6.0% | | |
Entities Affiliated with Index Ventures(7)
|
| | | | 7,201,738 | | | | | | 5.6% | | |
Magnetar Financial LLC(8)
|
| | | | 6,802,234 | | | | | | 5.3% | | |
Directors and Executive Officers | | | | | | | | | | | | | |
David Friedberg(9)
|
| | | | 4,190,978 | | | | | | 3.2% | | |
Dan Preston(10)
|
| | | | 2,225,603 | | | | | | 1.7% | | |
Paw Andersen(11)
|
| | | | 516,432 | | | | | | * | | |
Colin Bryant
|
| | | | — | | | | | | — | | |
Vikas Singhal(6)
|
| | | | 7,666,839 | | | | | | 6.0% | | |
Ryan Graves(12)
|
| | | | 3,551,267 | | | | | | 2.8% | | |
Sandra Clarke
|
| | | | — | | | | | | — | | |
John Butler
|
| | | | 117,500 | | | | | | * | | |
Mark Gundacker(13)
|
| | | | 116,975 | | | | | | * | | |
Directors and Executive Officers as a Group (12 in total)(14)
|
| | | | 18,877,706 | | | | | | 14.3% | | |
| LEMONADE, INC. | | | | |
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| METROMILE, INC. | | | | |
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | |
| | |
As of
|
| |||||||||
| | | | | | ||||||||
| | |
(Unaudited)
|
| | | | | | | |||
Assets | | | | | | | | | | | | | |
Investments
|
| | | | | | | | | | | | |
Fixed maturities available-for-sale, at fair value (amortized cost: $698.6 million and $6.4 million as of September 30, 2021 and December 31, 2020)
|
| | | $ | 697.6 | | | | | $ | 6.6 | | |
Short-term investments (cost: $107.5 million)
|
| | | | 107.5 | | | | | | — | | |
Total investments
|
| | | | 805.1 | | | | | | 6.6 | | |
Cash, cash equivalents and restricted cash
|
| | | | 319.6 | | | | | | 571.4 | | |
Premium receivable, net of allowance for doubtful accounts of $1.0 million and $0.5 million as of September 30, 2021 and December 31, 2020
|
| | | | 129.2 | | | | | | 86.1 | | |
Reinsurance recoverable
|
| | | | 70.8 | | | | | | 49.0 | | |
Prepaid reinsurance premium
|
| | | | 150.2 | | | | | | 91.3 | | |
Deferred acquisition costs
|
| | | | 6.0 | | | | | | 3.5 | | |
Property and equipment, net
|
| | | | 10.8 | | | | | | 5.7 | | |
Intangible assets
|
| | | | 0.6 | | | | | | 0.6 | | |
Other assets
|
| | | | 29.4 | | | | | | 14.5 | | |
Total assets
|
| | | $ | 1,521.7 | | | | | $ | 828.7 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Unpaid loss and loss adjustment expense
|
| | | $ | 74.0 | | | | | $ | 46.3 | | |
Unearned premium
|
| | | | 203.2 | | | | | | 123.8 | | |
Trade payables
|
| | | | 3.0 | | | | | | 1.4 | | |
Funds held for reinsurance treaties
|
| | | | 97.1 | | | | | | 62.1 | | |
Deferred ceding commission
|
| | | | 36.1 | | | | | | 22.4 | | |
Ceded premium payable
|
| | | | 24.8 | | | | | | 13.0 | | |
Other liabilities and accrued expenses
|
| | | | 35.5 | | | | | | 18.7 | | |
Total liabilities
|
| | | | 473.7 | | | | | | 287.7 | | |
Commitments and contingencies (Note 14) | | | | | | | | | | | | | |
Stockholders’ equity | | | | | | | | | | | | | |
Common stock, $0.00001 par value, 200,000,000 shares authorized; 61,615,624 and 56,774,294 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 1,539.5 | | | | | | 859.8 | | |
Accumulated deficit
|
| | | | (491.6) | | | | | | (320.6) | | |
Accumulated other comprehensive income
|
| | | | 0.1 | | | | | | 1.8 | | |
Total stockholders’ equity
|
| | | | 1,048.0 | | | | | | 541.0 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 1,521.7 | | | | | $ | 828.7 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Net earned premium
|
| | | $ | 21.5 | | | | | $ | 10.5 | | | | | $ | 51.6 | | | | | $ | 65.0 | | |
Ceding commission income
|
| | | | 12.3 | | | | | | 7.0 | | | | | | 31.9 | | | | | | 7.4 | | |
Net investment income
|
| | | | 0.6 | | | | | | 0.2 | | | | | | 1.0 | | | | | | 1.3 | | |
Commission and other income
|
| | | | 1.3 | | | | | | 0.1 | | | | | | 2.9 | | | | | | 0.2 | | |
Total revenue
|
| | | | 35.7 | | | | | | 17.8 | | | | | | 87.4 | | | | | | 73.9 | | |
Expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss and loss adjustment expense, net
|
| | | | 17.5 | | | | | | 6.7 | | | | | | 47.0 | | | | | | 45.4 | | |
Other insurance expense
|
| | | | 6.3 | | | | | | 3.5 | | | | | | 16.3 | | | | | | 10.8 | | |
Sales and marketing
|
| | | | 42.2 | | | | | | 22.2 | | | | | | 104.4 | | | | | | 57.5 | | |
Technology development
|
| | | | 14.3 | | | | | | 5.3 | | | | | | 35.4 | | | | | | 13.0 | | |
General and administrative
|
| | | | 19.6 | | | | | | 10.6 | | | | | | 49.5 | | | | | | 34.6 | | |
Total expense
|
| | | | 99.9 | | | | | | 48.3 | | | | | | 252.6 | | | | | | 161.3 | | |
Loss before income taxes
|
| | | | (64.2) | | | | | | (30.5) | | | | | | (165.2) | | | | | | (87.4) | | |
Income tax expense
|
| | | | 2.2 | | | | | | 0.4 | | | | | | 5.8 | | | | | | 1.0 | | |
Net loss
|
| | | $ | (66.4) | | | | | $ | (30.9) | | | | | $ | (171.0) | | | | | $ | (88.4) | | |
Other comprehensive income, net of tax | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized (loss) gain on investments
|
| | | | (0.8) | | | | | | 0.4 | | | | | | (1.2) | | | | | | 0.6 | | |
Foreign currency translation adjustment
|
| | | | — | | | | | | — | | | | | | (0.5) | | | | | | — | | |
Comprehensive loss
|
| | | $ | (67.2) | | | | | $ | (30.5) | | | | | $ | (172.7) | | | | | $ | (87.8) | | |
Per share data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share attributable to common stockholders – basic and diluted
|
| | | $ | (1.08) | | | | | $ | (0.57) | | | | | $ | (2.80) | | | | | $ | (3.41) | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 61,580,145 | | | | | | 53,997,315 | | | | | | 61,086,238 | | | | | | 25,935,362 | | |
| | |
Convertible Preferred Stock
|
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020
|
| | | | — | | | | | $ | — | | | | | | | 56,774,294 | | | | | $ | — | | | | | $ | 859.8 | | | | | $ | (320.6) | | | | | $ | 1.8 | | | | | | 541.0 | | |
Issuance of common stock upon closing of Follow-on Offering, net of underwriting discounts and commissions and offering costs of $22.8 million
|
| | | | — | | | | | | — | | | | | | | 4,018,647 | | | | | | — | | | | | | 640.3 | | | | | | — | | | | | | — | | | | | | 640.3 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 577,162 | | | | | | — | | | | | | 6.1 | | | | | | — | | | | | | — | | | | | | 6.1 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 6.1 | | | | | | — | | | | | | — | | | | | | 6.1 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (49.0) | | | | | | — | | | | | | (49.0) | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (0.8) | | | | | | (0.8) | | |
Balance as of March 31, 2021
|
| | | | — | | | | | $ | — | | | | | | | 61,370,103 | | | | | $ | — | | | | | $ | 1,512.3 | | | | | $ | (369.6) | | | | | $ | 1.0 | | | | | $ | 1,143.7 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 162,024 | | | | | | — | | | | | | 1.7 | | | | | | — | | | | | | — | | | | | | 1.7 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 11.9 | | | | | | — | | | | | | — | | | | | | 11.9 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (55.6) | | | | | | — | | | | | | (55.6) | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (0.1) | | | | | | (0.1) | | |
Balance as of June 30, 2021
|
| | | | — | | | | | $ | — | | | | | | | 61,532,127 | | | | | $ | — | | | | | $ | 1,525.9 | | | | | $ | (425.2) | | | | | $ | 0.9 | | | | | $ | 1,101.6 | | |
Exercise of stock options and distribution of restricted stock units
|
| | | | — | | | | | | — | | | | | | | 83,497 | | | | | | — | | | | | | 0.9 | | | | | | — | | | | | | — | | | | | | 0.9 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 12.7 | | | | | | — | | | | | | — | | | | | | 12.7 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (66.4) | | | | | | — | | | | | | (66.4) | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (0.8) | | | | | | (0.8) | | |
Balance as of September 30, 2021
|
| | | | — | | | | | $ | — | | | | | | | 61,615,624 | | | | | $ | — | | | | | $ | 1,539.5 | | | | | $ | (491.6) | | | | | $ | 0.1 | | | | | $ | 1,048.0 | | |
| | |
Convertible Preferred Stock
|
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019
|
| | | | 31,557,107 | | | | | $ | 480.2 | | | | | | | 11,271,228 | | | | | $ | — | | | | | $ | 15.7 | | | | | $ | (198.3) | | | | | $ | 0.1 | | | | | $ | (182.5) | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 54,374 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2.2 | | | | | | — | | | | | | — | | | | | | 2.2 | | |
Contribution to the Lemonade Foundation
|
| | | | — | | | | | | — | | | | | | | 500,000 | | | | | | — | | | | | | 12.2 | | | | | | — | | | | | | — | | | | | | 12.2 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (36.5) | | | | | | — | | | | | | (36.5) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance as of March 31, 2020
|
| | | | 31,557,107 | | | | | $ | 480.2 | | | | | | | 11,825,602 | | | | | $ | — | | | | | $ | 30.1 | | | | | $ | (234.8) | | | | | $ | 0.1 | | | | | $ | (204.6) | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 30,562 | | | | | | — | | | | | | 0.1 | | | | | | — | | | | | | — | | | | | | 0.1 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2.4 | | | | | | — | | | | | | — | | | | | | 2.4 | | |
Release of shares upon repayment
|
| | | | — | | | | | | — | | | | | | | 513,537 | | | | | | — | | | | | | 1.3 | | | | | | — | | | | | | — | | | | | | 1.3 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (21.0) | | | | | | — | | | | | | (21.0) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.2 | | | | | | 0.2 | | |
Balance as of June 30, 2020
|
| | | | 31,557,107 | | | | | $ | 480.2 | | | | | | | 12,369,701 | | | | | $ | — | | | | | $ | 33.9 | | | | | $ | (255.8) | | | | | $ | 0.3 | | | | | $ | (221.6) | | |
Conversion of convertible preferred
stock to common stock upon closing of Initial Public Offering (IPO) |
| | | | (31,557,107) | | | | | | (480.2) | | | | | | | 31,557,107 | | | | | | — | | | | | | 480.2 | | | | | | — | | | | | | — | | | | | | 480.2 | | |
Issuance of common stock upon closing
of IPO, net of issuance costs and underwriting fees of $28.9 million |
| | | | — | | | | | | — | | | | | | | 12,650,000 | | | | | | — | | | | | | 338.0 | | | | | | — | | | | | | — | | | | | | 338.0 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 7,221 | | | | | | — | | | | | | 0.2 | | | | | | — | | | | | | — | | | | | | 0.2 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2.7 | | | | | | — | | | | | | — | | | | | | 2.7 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (30.9) | | | | | | — | | | | | | (30.9) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.4 | | | | | | 0.4 | | |
Balance as of September 30, 2020
|
| | | | — | | | | | $ | — | | | | | | | 56,584,029 | | | | | $ | — | | | | | $ | 855.0 | | | | | $ | (286.7) | | | | | $ | 0.7 | | | | | $ | 569.0 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | | | |
2020
|
| |||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (171.0) | | | | | $ | (88.4) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation
|
| | | | 2.5 | | | | | | 1.1 | | |
Stock-based compensation
|
| | | | 30.7 | | | | | | 7.3 | | |
Amortization of discount on bonds
|
| | | | (1.5) | | | | | | (0.4) | | |
Provision for bad debts
|
| | | | 3.8 | | | | | | 1.4 | | |
Common shares contribution to the Lemonade Foundation
|
| | | | — | | | | | | 12.2 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Premium receivable
|
| | | | (46.9) | | | | | | (30.1) | | |
Reinsurance recoverable
|
| | | | (21.8) | | | | | | (21.9) | | |
Prepaid reinsurance premium
|
| | | | (58.9) | | | | | | (85.2) | | |
Deferred acquisition costs
|
| | | | (2.5) | | | | | | (1.5) | | |
Other assets
|
| | | | (15.0) | | | | | | (11.4) | | |
Unpaid loss and loss adjustment expense
|
| | | | 27.7 | | | | | | 11.5 | | |
Unearned premium
|
| | | | 79.4 | | | | | | 47.3 | | |
Trade payables
|
| | | | 1.6 | | | | | | 0.3 | | |
Funds held for reinsurance treaties
|
| | | | 35.0 | | | | | | 52.4 | | |
Deferred ceding commissions
|
| | | | 13.7 | | | | | | 20.9 | | |
Ceded premium payable
|
| | | | 11.8 | | | | | | 14.0 | | |
Other liabilities and accrued expenses
|
| | | | 16.7 | | | | | | (0.5) | | |
Net cash used in operating activities
|
| | | | (94.7) | | | | | | (71.0) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Proceeds from short-term investments sold or matured
|
| | | | — | | | | | | 55.0 | | |
Proceeds from bonds sold or matured
|
| | | | 7.9 | | | | | | 2.2 | | |
Cost of short-term investments acquired
|
| | | | (107.5) | | | | | | (14.9) | | |
Cost of bonds acquired
|
| | | | (700.1) | | | | | | (2.9) | | |
Purchases of property and equipment
|
| | | | (7.4) | | | | | | (3.1) | | |
Net cash (used in) provided by investing activities
|
| | | | (807.1) | | | | | | 36.3 | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from Initial Public Offering and Follow-on Offering, net of underwriting
discounts and commissions and offering costs |
| | | | 640.3 | | | | | | 338.0 | | |
Proceeds from release of shares upon repayment
|
| | | | — | | | | | | 1.3 | | |
Proceeds from stock exercises
|
| | | | 8.7 | | | | | | 0.3 | | |
Net cash provided by financing activities
|
| | | | 649.0 | | | | | | 339.6 | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
| | | | 1.0 | | | | | | 0.5 | | |
Net (decrease) increase in cash, cash equivalents and restricted cash
|
| | | | (251.8) | | | | | | 305.4 | | |
Cash, cash equivalents and restricted cash at beginning of period
|
| | | | 571.4 | | | | | | 270.3 | | |
Cash, cash equivalents and restricted cash at end of period
|
| | | $ | 319.6 | | | | | $ | 575.7 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 2.1 | | | | | $ | 1.1 | | |
| | | | | | ||||||||
Cash and cash equivalents
|
| | | $ | 319.4 | | | | | $ | 570.8 | | |
Restricted cash
|
| | | | 0.2 | | | | | | 0.6 | | |
Total cash, cash equivalents and restricted cash
|
| | | $ | 319.6 | | | | | $ | 571.4 | | |
| | |
Cost or
Amortized Cost |
| |
Gross
Unrealized |
| |
Fair
Value |
| |||||||||||||||
|
Gains
|
| |
Losses
|
| ||||||||||||||||||||
September 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | 588.0 | | | | | $ | — | | | | | $ | (0.9) | | | | | $ | 587.1 | | |
U.S. Government obligations
|
| | | | 110.0 | | | | | | 0.1 | | | | | | (0.2) | | | | | | 109.9 | | |
Municipal securities
|
| | | | 0.6 | | | | | | — | | | | | | — | | | | | | 0.6 | | |
Total
|
| | | $ | 698.6 | | | | | $ | 0.1 | | | | | $ | (1.1) | | | | | $ | 697.6 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
U.S. Government obligations
|
| | | | 6.4 | | | | | | 0.2 | | | | | | — | | | | | | 6.6 | | |
Municipal securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 6.4 | | | | | $ | 0.2 | | | | | $ | — | | | | | $ | 6.6 | | |
| | | | ||||||||||
| | |
Cost or
Amortized Cost |
| |
Fair Value
|
| ||||||
Due in one year or less
|
| | | $ | 31.0 | | | | | $ | 31.0 | | |
Due after one year through five years
|
| | | | 667.6 | | | | | | 666.6 | | |
Due after five years through ten years
|
| | | | — | | | | | | — | | |
Due after ten years
|
| | | | — | | | | | | — | | |
Total
|
| | | $ | 698.6 | | | | | $ | 697.6 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
Interest on cash and cash equivalents
|
| | | $ | 0.1 | | | | | $ | 0.1 | | | | | $ | 0.4 | | | | | $ | 0.9 | | |
Fixed maturities
|
| | | | 0.6 | | | | | | 0.1 | | | | | | 0.7 | | | | | | 0.1 | | |
Short-term investments
|
| | | | — | | | | | | — | | | | | | — | | | | | | 0.3 | | |
| | | | | 0.7 | | | | | $ | 0.2 | | | | | | 1.1 | | | | | | 1.3 | | |
Investment expense
|
| | | | 0.1 | | | | | | — | | | | | | 0.1 | | | | | | — | | |
Net investment income
|
| | | $ | 0.6 | | | | | $ | 0.2 | | | | | $ | 1.0 | | | | | $ | 1.3 | | |
| | |
Less than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| ||||||||||||||||||
September 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | 504.8 | | | | | $ | (0.9) | | | | | $ | — | | | | | $ | — | | | | | $ | 504.8 | | | | | $ | (0.9) | | |
U.S. Government obligations
|
| | | | 103.9 | | | | | | (0.2) | | | | | | — | | | | | | — | | | | | | 103.9 | | | | | | (0.2) | | |
Municipal securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 608.7 | | | | | $ | (1.1) | | | | | $ | — | | | | | $ | — | | | | | $ | 608.7 | | | | | $ | (1.1) | | |
| | |
Less than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| ||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
U.S. Government obligations
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Municipal securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | | ||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | — | | | | | $ | 587.1 | | | | | $ | — | | | | | $ | 587.1 | | |
U.S. Government obligations
|
| | | | — | | | | | | 109.9 | | | | | | — | | | | | | 109.9 | | |
Municipal securities
|
| | | | — | | | | | | 0.6 | | | | | | — | | | | | | 0.6 | | |
Fixed maturities
|
| | | | — | | | | | $ | 697.6 | | | | | | — | | | | | $ | 697.6 | | |
Short term investments
|
| | | | — | | | | | | 107.5 | | | | | | — | | | | | | 107.5 | | |
Total
|
| | | $ | — | | | | | $ | 805.1 | | | | | $ | — | | | | | $ | 805.1 | | |
| | | | ||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
U.S. Government obligations
|
| | | | — | | | | | | 6.6 | | | | | | — | | | | | | 6.6 | | |
Municipal securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fixed maturities
|
| | | | — | | | | | | 6.6 | | | | | | — | | | | | | 6.6 | | |
Short term investments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | — | | | | | $ | 6.6 | | | | | $ | — | | | | | $ | 6.6 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | | | |
2020
|
| |||||||
Unpaid loss and LAE at beginning of period
|
| | | $ | 46.3 | | | | | $ | 28.2 | | |
Less: Reinsurance recoverable at beginning of period(1)
|
| | | | 36.3 | | | | | | 18.5 | | |
Net unpaid loss and LAE at beginning of period
|
| | | | 10.0 | | | | | | 9.7 | | |
Add: Incurred loss and LAE, net of reinsurance, related to: | | | | | | | | | | | | | |
Current year
|
| | | | 47.3 | | | | | | 44.1 | | |
Prior years
|
| | | | (0.3) | | | | | | 1.3 | | |
Total incurred
|
| | | | 47.0 | | | | | | 45.4 | | |
Deduct: Paid loss and LAE, net of reinsurance, related to: | | | | | | | | | | | | | |
Current year
|
| | | | 32.3 | | | | | | 36.4 | | |
Prior years
|
| | | | 6.3 | | | | | | 11.0 | | |
Total paid
|
| | | | 38.6 | | | | | | 47.4 | | |
Unpaid loss and LAE, net of reinsurance recoverable, at end of period
|
| | | | 18.4 | | | | | | 7.7 | | |
Reinsurance recoverable at end of period(1)
|
| | | | 55.6 | | | | | | 32.0 | | |
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period
|
| | | $ | 74.0 | | | | | $ | 39.7 | | |
| | | | | | ||||||||
Accrued advertising costs
|
| | | $ | 9.9 | | | | | $ | 6.8 | | |
Payable for securities
|
| | | | 4.6 | | | | | | — | | |
Premium taxes payable
|
| | | | 4.3 | | | | | | 3.2 | | |
Employee compensation payable
|
| | | | 4.2 | | | | | | 3.7 | | |
Income tax payable
|
| | | | 3.9 | | | | | | 0.3 | | |
Advance premium
|
| | | | 2.7 | | | | | | — | | |
Accrued professional fees
|
| | | | 2.7 | | | | | | 2.6 | | |
VAT payable
|
| | | | 0.2 | | | | | | 0.2 | | |
Other payables
|
| | | | 3.0 | | | | | | 1.9 | | |
Total other liabilities and accrued expenses
|
| | | $ | 35.5 | | | | | $ | 18.7 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | | | |
2020
|
| |||||||
Weighted average expected term (years)
|
| | | | 6.1 | | | | | | 6.1 | | |
Risk-free interest rate
|
| | | | 1.3% | | | | | | 0.8% | | |
Volatility
|
| | | | 49% | | | | | | 40% | | |
Expected dividend yield
|
| | | | 0% | | | | | | 0% | | |
| | |
Number of
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding as of December 31, 2020
|
| | | | 4,944,711 | | | | | $ | 20.50 | | | | | | 8.30 | | | | | $ | 506.58 | | |
Granted
|
| | | | 2,319,085 | | | | | | 91.13 | | | | | | | | | | | | | | |
Exercised
|
| | | | (810,575) | | | | | | 10.68 | | | | | | | | | | | | | | |
Cancelled
|
| | | | (420,423) | | | | | | 49.50 | | | | | | | | | | | | | | |
Outstanding as of September 30, 2021
|
| | | | 6,032,798 | | | | | $ | 46.58 | | | | | | 8.38 | | | | | $ | 177.06 | | |
Options exercisable as of September 30, 2021
|
| | | | 1,953,806 | | | | | $ | 15.52 | | | | | | 7.21 | | | | | $ | 101.42 | | |
Options unvested as of September 30, 2021
|
| | | | 4,078,992 | | | | | $ | 61.45 | | | | | | 8.94 | | | | | $ | 75.64 | | |
| | |
Number of
shares |
| |
Grant Date
Fair Value |
| ||||||
Outstanding as of December 31, 2020
|
| | | | — | | | | | $ | — | | |
Granted
|
| | | | 144,254 | | | | | | 109.50 | | |
Vested
|
| | | | (12,108) | | | | | | 159.02 | | |
Cancelled
|
| | | | (1,905) | | | | | | 157.76 | | |
Outstanding as of September 30, 2021
|
| | | | 130,241 | | | | | $ | 104.19 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Loss and loss adjustment expense, net
|
| | | $ | 0.3 | | | | | $ | 0.1 | | | | | $ | 1.0 | | | | | $ | 0.2 | | |
Other insurance expense
|
| | | | 0.4 | | | | | | 0.1 | | | | | | 0.8 | | | | | | 0.5 | | |
Sales and marketing
|
| | | | 1.4 | | | | | | 0.8 | | | | | | 3.8 | | | | | | 2.1 | | |
Technology development
|
| | | | 5.3 | | | | | | 0.8 | | | | | | 12.8 | | | | | | 2.1 | | |
General and administrative
|
| | | | 5.3 | | | | | | 0.9 | | | | | | 12.3 | | | | | | 2.4 | | |
Total stock-based compensation expense
|
| | | $ | 12.7 | | | | | $ | 2.7 | | | | | $ | 30.7 | | | | | $ | 7.3 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Stock options
|
| | | $ | 12.0 | | | | | $ | 2.7 | | | | | $ | 28.0 | | | | | $ | 7.3 | | |
RSUs
|
| | | | 0.7 | | | | | | — | | | | | | 2.7 | | | | | | — | | |
Total stock-based compensation expense
|
| | | $ | 12.7 | | | | | $ | 2.7 | | | | | $ | 30.7 | | | | | $ | 7.3 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss attributable to common stockholders
($ in millions) |
| | | $ | (66.4) | | | | | $ | (30.9) | | | | | $ | (171.0) | | | | | $ | (88.4) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 61,580,145 | | | | | | 53,997,315 | | | | | | 61,086,238 | | | | | | 25,935,362 | | |
Net loss per share attributable to common stockholders – basic and diluted
|
| | | $ | (1.08) | | | | | $ | (0.57) | | | | | $ | (2.80) | | | | | $ | (3.41) | | |
|
2021 (remaining three months)
|
| | | $ | 1.3 | | |
|
2022
|
| | | | 5.0 | | |
|
2023
|
| | | | 2.8 | | |
|
2024
|
| | | | 2.8 | | |
|
2025 and thereafter
|
| | | | 4.2 | | |
| | | | | $ | 16.1 | | |
Jurisdiction
|
| |
Three Months Ended September 30,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||||||||||||||||||||||||||||
|
Amount
|
| |
% of GWP
|
| |
Amount
|
| |
% of GWP
|
| |
Amount
|
| |
% of GWP
|
| |
Amount
|
| |
% of GWP
|
| ||||||||||||||||||||||||||
California
|
| | | $ | 29.0 | | | | | | 24.8% | | | | | $ | 15.6 | | | | | | 21.9% | | | | | $ | 70.4 | | | | | | 25.0% | | | | | $ | 34.9 | | | | | | 22.4% | | |
Texas
|
| | | | 21.7 | | | | | | 18.6% | | | | | | 15.9 | | | | | | 22.3% | | | | | | 55.4 | | | | | | 19.6% | | | | | | 36.5 | | | | | | 23.4% | | |
New York
|
| | | | 14.3 | | | | | | 12.2% | | | | | | 8.6 | | | | | | 12.1% | | | | | | 35.2 | | | | | | 12.5% | | | | | | 18.8 | | | | | | 12.1% | | |
Georgia
|
| | | | 4.9 | | | | | | 4.2% | | | | | | 3.8 | | | | | | 5.3% | | | | | | 12.9 | | | | | | 4.6% | | | | | | 8.7 | | | | | | 5.6% | | |
Illinois
|
| | | | 5.0 | | | | | | 4.3% | | | | | | 3.4 | | | | | | 4.8% | | | | | | 12.1 | | | | | | 4.3% | | | | | | 7.6 | | | | | | 4.9% | | |
New Jersey
|
| | | | 5.3 | | | | | | 4.5% | | | | | | 3.0 | | | | | | 4.2% | | | | | | 12.1 | | | | | | 4.3% | | | | | | 6.1 | | | | | | 3.9% | | |
Pennsylvania
|
| | | | 3.3 | | | | | | 2.8% | | | | | | 2.0 | | | | | | 2.8% | | | | | | 7.4 | | | | | | 2.6% | | | | | | 3.8 | | | | | | 2.4% | | |
Colorado
|
| | | | 3.1 | | | | | | 2.7% | | | | | | 1.5 | | | | | | 2.1% | | | | | | 6.5 | | | | | | 2.3% | | | | | | 3.0 | | | | | | 1.9% | | |
Virginia
|
| | | | 2.6 | | | | | | 2.2% | | | | | | 1.4 | | | | | | 2.0% | | | | | | 6.0 | | | | | | 2.1% | | | | | | 2.7 | | | | | | 1.7% | | |
Michigan
|
| | | | 2.4 | | | | | | 2.1% | | | | | | 2.0 | | | | | | 2.8% | | | | | | 5.9 | | | | | | 2.1% | | | | | | 4.4 | | | | | | 2.8% | | |
All other
|
| | | | 25.2 | | | | | | 21.6% | | | | | | 14.0 | | | | | | 19.7% | | | | | | 58.2 | | | | | | 20.6% | | | | | | 29.5 | | | | | | 18.9% | | |
| | | | $ | 116.8 | | | | | | 100.0% | | | | | $ | 71.2 | | | | | | 100.0% | | | | | $ | 282.1 | | | | | | 100.0% | | | | | $ | 156.0 | | | | | | 100.0% | | |
| | | | | F-2 | | | |
| Consolidated Financial Statements | | | | | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-24 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Assets | | | | | | | | | | | | | |
Investments
|
| | | | | | | | | | | | |
Fixed maturities available-for-sale, at fair value (amortized cost: $6.4 million and
$5.8 million as of December 31, 2020 and 2019) |
| | | $ | 6.6 | | | | | $ | 5.9 | | |
Short-term investments
|
| | | | — | | | | | | 54.7 | | |
Total investments
|
| | | | 6.6 | | | | | | 60.6 | | |
Cash, cash equivalents and restricted cash
|
| | | | 571.4 | | | | | | 270.3 | | |
Premium receivable, net of allowance for doubtful accounts of $0.5 million and $0.2 million as of December 31, 2020 and 2019
|
| | | | 86.1 | | | | | | 54.1 | | |
Reinsurance recoverable
|
| | | | 49.0 | | | | | | 20.3 | | |
Prepaid reinsurance premium
|
| | | | 91.3 | | | | | | 1.0 | | |
Deferred acquisition costs
|
| | | | 3.5 | | | | | | 1.8 | | |
Property and equipment, net
|
| | | | 5.7 | | | | | | 3.1 | | |
Intangible assets
|
| | | | 0.6 | | | | | | 0.6 | | |
Other assets
|
| | | | 14.5 | | | | | | 2.5 | | |
Total assets
|
| | | $ | 828.7 | | | | | $ | 414.3 | | |
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit) | | | | | | | | | | | | | |
Unpaid losses and loss adjustment expenses
|
| | | $ | 46.3 | | | | | $ | 28.2 | | |
Unearned premium
|
| | | | 123.8 | | | | | | 68.0 | | |
Trade payables
|
| | | | 1.4 | | | | | | 0.7 | | |
Funds held for reinsurance treaties
|
| | | | 62.1 | | | | | | — | | |
Other liabilities and accrued expenses
|
| | | | 54.1 | | | | | | 19.7 | | |
Total liabilities
|
| | | | 287.7 | | | | | | 116.6 | | |
Commitments and contingencies (Note 20) | | | | | | | | | | | | | |
Convertible preferred stock (Series Seed, A, B, C, and D), $0.00001 par value; no shares
issued, authorized and outstanding as of December 31, 2020; 31,557,107 shares authorized, issued and outstanding as of December 31, 2019; aggregate liquidation preference of $0.0 million and $480.8 million on as of December 31, 2020 and 2019, respectively |
| | | | — | | | | | | 480.2 | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | |
Common stock, $0.00001 par value, 200,000,000 shares and 52,000,000 shares
authorized as of December 31, 2020 and 2019 , respectively; 56,774,294 shares and 11,784,765 shares issued and 56,774,294 shares and 11,271,228 shares outstanding as of December 31, 2020 and 2019, respectively |
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 859.8 | | | | | | 15.7 | | |
Accumulated deficit
|
| | | | (320.6) | | | | | | (198.3) | | |
Accumulated other comprehensive income
|
| | | | 1.8 | | | | | | 0.1 | | |
Total stockholders’ equity (deficit)
|
| | | | 541.0 | | | | | | (182.5) | | |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)
|
| | | $ | 828.7 | | | | | $ | 414.3 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | |
Net earned premium
|
| | | $ | 77.3 | | | | | $ | 63.8 | | | | | $ | 21.2 | | |
Ceding commission income
|
| | | | 15.3 | | | | | | — | | | | | | — | | |
Net investment income
|
| | | | 1.5 | | | | | | 3.4 | | | | | | 1.3 | | |
Commission and other income
|
| | | | 0.3 | | | | | | 0.1 | | | | | | — | | |
Total revenue
|
| | | | 94.4 | | | | | | 67.3 | | | | | | 22.5 | | |
Expense | | | | | | | | | | | | | | | | | | | |
Loss and loss adjustment expense, net
|
| | | | 54.7 | | | | | | 45.8 | | | | | | 15.2 | | |
Other insurance expense
|
| | | | 14.4 | | | | | | 9.6 | | | | | | 4.2 | | |
Sales and marketing
|
| | | | 80.4 | | | | | | 88.5 | | | | | | 41.7 | | |
Technology development
|
| | | | 19.4 | | | | | | 9.8 | | | | | | 4.7 | | |
General and administrative
|
| | | | 46.3 | | | | | | 21.5 | | | | | | 9.3 | | |
Total expense
|
| | | | 215.2 | | | | | | 175.2 | | | | | | 75.1 | | |
Loss before income taxes
|
| | | | (120.8) | | | | | | (107.9) | | | | | | (52.6) | | |
Income tax expense
|
| | | | 1.5 | | | | | | 0.6 | | | | | | 0.3 | | |
Net loss
|
| | | $ | (122.3) | | | | | $ | (108.5) | | | | | $ | (52.9) | | |
Other comprehensive income, net of tax | | | | | | | | | | | | | | | | | | | |
Unrealized gain on investments
|
| | | | 0.1 | | | | | | 0.1 | | | | | | — | | |
Foreign currency translation adjustment
|
| | | | 1.6 | | | | | | — | | | | | $ | — | | |
Comprehensive loss
|
| | | $ | (120.6) | | | | | $ | (108.4) | | | | | $ | (52.9) | | |
Per share data: | | | | | | | | | | | | | | | | | | | |
Net loss per share attributable to common stockholders – basic
and diluted |
| | | $ | (3.63) | | | | | $ | (9.75) | | | | | $ | (4.84) | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 33,654,828 | | | | | | 11,124,397 | | | | | | 10,931,776 | | |
| | |
Convertible Preferred Stock
|
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017
|
| | | | 15,671,730 | | | | | $ | 60.4 | | | | | | | 10,887,059 | | | | | $ | — | | | | | $ | 8.5 | | | | | $ | (36.9) | | | | | $ | — | | | | | $ | (28.4) | | |
Issuance of Series C Preferred stock,
net of issuance costs of $0.2 million |
| | | | 8,700,224 | | | | | | 119.8 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 34,125 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Repayment of partial recourse
loan |
| | | | — | | | | | | — | | | | | | | 62,500 | | | | | | — | | | | | | 0.1 | | | | | | — | | | | | | — | | | | | | 0.1 | | |
Exercise of Series A Preferred stock
warrants |
| | | | 73,601 | | | | | | 0.6 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2.1 | | | | | | — | | | | | | — | | | | | | 2.1 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (52.9) | | | | | | — | | | | | | (52.9) | | |
Balance as of December 31, 2018
|
| | | | 24,445,555 | | | | | | 180.8 | | | | | | | 10,983,684 | | | | | | — | | | | | | 10.7 | | | | | | (89.8) | | | | | | — | | | | | | (79.1) | | |
Issuance of Series C Preferred stock,
net of issuance costs of $0.0 million |
| | | | 3,622 | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of Series D Preferred stock,
net of issuance costs of $0.6 million |
| | | | 7,107,930 | | | | | | 299.4 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Repayment of partial recourse
loan |
| | | | — | | | | | | — | | | | | | | 105,487 | | | | | | — | | | | | | 0.2 | | | | | | — | | | | | | — | | | | | | 0.2 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 182,057 | | | | | | — | | | | | | 0.5 | | | | | | — | | | | | | — | | | | | | 0.5 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 4.3 | | | | | | — | | | | | | — | | | | | | 4.3 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (108.5) | | | | | | — | | | | | | (108.5) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.1 | | | | | | 0.1 | | |
Balance as of December 31, 2019
|
| | | | 31,557,107 | | | | | $ | 480.2 | | | | | | | 11,271,228 | | | | | $ | — | | | | | $ | 15.7 | | | | | $ | (198.3) | | | | | $ | 0.1 | | | | | $ | (182.5) | | |
| | |
Convertible Preferred Stock
|
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019
|
| | | | 31,557,107 | | | | | $ | 480.2 | | | | | | | 11,271,228 | | | | | $ | — | | | | | $ | 15.7 | | | | | $ | (198.3) | | | | | $ | 0.1 | | | | | $ | (182.5) | | |
Conversion of convertible preferred
stock to common stock upon closing of initial public offering |
| | | | (31,557,107) | | | | | | (480.2) | | | | | | | 31,557,107 | | | | | | — | | | | | | 480.2 | | | | | | — | | | | | | — | | | | | | 480.2 | | |
Issuance of common stock upon
closing of initial public offering, net of issuance costs and underwriting fees of $31.3 million |
| | | | — | | | | | | — | | | | | | | 12,650,000 | | | | | | — | | | | | | 338.0 | | | | | | — | | | | | | — | | | | | | 338.0 | | |
Contribution to the Lemonade Foundation
|
| | | | — | | | | | | — | | | | | | | 500,000 | | | | | | — | | | | | | 12.2 | | | | | | — | | | | | | — | | | | | | 12.2 | | |
Release of shares upon repayment
|
| | | | — | | | | | | — | | | | | | | 513,537 | | | | | | | | | | | | 1.3 | | | | | | | | | | | | | | | | | | 1.3 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 282,422 | | | | | | — | | | | | | 1.8 | | | | | | — | | | | | | — | | | | | | 1.8 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 10.6 | | | | | | — | | | | | | — | | | | | | 10.6 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (122.3) | | | | | | — | | | | | | (122.3) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1.7 | | | | | | 1.7 | | |
Balance as of December 31, 2020
|
| | | | — | | | | | $ | — | | | | | | | 56,774,294 | | | | | $ | — | | | | | $ | 859.8 | | | | | $ | (320.6) | | | | | $ | 1.8 | | | | | $ | 541.0 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (122.3) | | | | | $ | (108.5) | | | | | $ | (52.9) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | | | | | | | |
Depreciation
|
| | | | 1.7 | | | | | | 0.6 | | | | | | 0.1 | | |
Stock-based compensation
|
| | | | 10.6 | | | | | | 4.3 | | | | | | 2.1 | | |
Change in fair value of warrant liability
|
| | | | — | | | | | | — | | | | | | 0.2 | | |
Amortization of discount on bonds
|
| | | | (0.4) | | | | | | (0.5) | | | | | | — | | |
Provision for bad debt
|
| | | | 2.2 | | | | | | 0.9 | | | | | | — | | |
Common shares contribution to Lemonade Foundation
|
| | | | 12.2 | | | | | | — | | | | | | — | | |
Unrealized loss on money market funds
|
| | | | 0.1 | | | | | | — | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | | | | | | | |
Premium receivable
|
| | | | (34.2) | | | | | | (29.1) | | | | | | (20.0) | | |
Reinsurance recoverable
|
| | | | (28.7) | | | | | | (8.5) | | | | | | (8.9) | | |
Prepaid reinsurance premium
|
| | | | (90.3) | | | | | | 0.5 | | | | | | (0.8) | | |
Deferred acquisition costs
|
| | | | (1.7) | | | | | | (1.2) | | | | | | (0.5) | | |
Other assets
|
| | | | (12.0) | | | | | | (1.1) | | | | | | (0.4) | | |
Unpaid losses and loss adjustment expenses
|
| | | | 18.1 | | | | | | 15.1 | | | | | | 11.0 | | |
Unearned premium
|
| | | | 55.8 | | | | | | 40.3 | | | | | | 21.4 | | |
Trade payables
|
| | | | 0.7 | | | | | | (0.8) | | | | | | 0.2 | | |
Funds held for reinsurance treaties
|
| | | | 62.1 | | | | | | — | | | | | | — | | |
Other liabilities and accrued expenses
|
| | | | 34.4 | | | | | | 9.9 | | | | | | 7.7 | | |
Net cash used in operating activities
|
| | | | (91.7) | | | | | | (78.1) | | | | | | (40.8) | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from short-term investments sold or matured
|
| | | | 70.0 | | | | | | 21.0 | | | | | | 20.9 | | |
Proceeds from bonds sold or matured
|
| | | | 2.3 | | | | | | 1.0 | | | | | | — | | |
Cost of short-term investments acquired
|
| | | | (14.9) | | | | | | (69.2) | | | | | | (13.8) | | |
Cost of bonds acquired
|
| | | | (2.9) | | | | | | (3.5) | | | | | | — | | |
Purchases of property and equipment
|
| | | | (4.4) | | | | | | (2.7) | | | | | | (0.7) | | |
Purchases of intangible assets
|
| | | | — | | | | | | (0.6) | | | | | | — | | |
Net cash provided by (used in) investing activities
|
| | | | 50.1 | | | | | | (54.0) | | | | | | 6.4 | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from initial public offering, net of underwriting discount and offering costs
|
| | | | 338.0 | | | | | | — | | | | | | — | | |
Proceeds from release of shares upon repayment
|
| | | | 1.3 | | | | | | — | | | | | | — | | |
Issuance of Preferred stock, net
|
| | | | — | | | | | | 299.4 | | | | | | 119.8 | | |
Proceeds from stock exercises
|
| | | | 1.8 | | | | | | 0.7 | | | | | | 0.1 | | |
Net cash provided by financing activities
|
| | | | 341.1 | | | | | | 300.1 | | | | | | 119.9 | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
| | | | 1.6 | | | | | | (0.1) | | | | | | — | | |
Net increase in cash, cash equivalents and restricted cash
|
| | | | 301.1 | | | | | | 167.9 | | | | | | 85.5 | | |
Cash, cash equivalents and restricted cash at beginning of year
|
| | | | 270.3 | | | | | | 102.4 | | | | | | 16.9 | | |
Cash, cash equivalents and restricted cash at end of year
|
| | | $ | 571.4 | | | | | $ | 270.3 | | | | | $ | 102.4 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 1.6 | | | | | $ | 0.5 | | | | | $ | 0.2 | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Cash and cash equivalents
|
| | | $ | 570.8 | | | | | $ | 270.0 | | |
Restricted cash
|
| | | | 0.6 | | | | | | 0.3 | | |
Total cash, cash equivalents and restricted cash
|
| | | $ | 571.4 | | | | | $ | 270.3 | | |
| | |
Years
|
|
Computers and electronic equipment
|
| |
3
|
|
Furniture and equipment
|
| |
6
|
|
Leasehold improvements
|
| |
Shorter of lease term or useful life
|
|
| | |
Cost or
Amortized Cost |
| |
Gross
Unrealized |
| |
Fair
Value |
| |||||||||||||||
|
Gains
|
| |
Losses
|
| ||||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government obligations
|
| | | $ | 6.4 | | | | | $ | 0.2 | | | | | $ | — | | | | | $ | 6.6 | | |
Total
|
| | | $ | 6.4 | | | | | $ | 0.2 | | | | | $ | — | | | | | $ | 6.6 | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government obligations
|
| | | $ | 5.8 | | | | | $ | 0.1 | | | | | $ | — | | | | | $ | 5.9 | | |
Total
|
| | | $ | 5.8 | | | | | $ | 0.1 | | | | | $ | — | | | | | $ | 5.9 | | |
| | | | ||||||||||
|
Cost or
Amortized Cost |
| |
Fair Value
|
| ||||||||
Due in one year or less
|
| | | $ | — | | | | | $ | — | | |
Due after one year through five years
|
| | | | 6.4 | | | | | | 6.6 | | |
Due after five years through ten years
|
| | | | — | | | | | | — | | |
Due after ten years
|
| | | | — | | | | | | — | | |
Total
|
| | | $ | 6.4 | | | | | $ | 6.6 | | |
| | |
Less than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||
|
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| ||||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government obligations
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government obligations
|
| | | $ | 0.2 | | | | | $ | — | | | | | $ | 2.2 | | | | | $ | — | | | | | $ | 2.4 | | | | | $ | — | | |
Total
|
| | | $ | 0.2 | | | | | $ | — | | | | | $ | 2.2 | | | | | $ | — | | | | | $ | 2.4 | | | | | $ | — | | |
U.S. State
|
| | | ||||||||||
| | |
2019
|
| |||||||||
New York
|
| | | $ | 2.8 | | | | | $ | 2.1 | | |
Washington
|
| | | | 1.2 | | | | | | 1.1 | | |
Colorado
|
| | | | 1.1 | | | | | | 1.1 | | |
North Carolina
|
| | | | 0.3 | | | | | | 0.3 | | |
New Mexico
|
| | | | 0.3 | | | | | | 0.3 | | |
Virginia
|
| | | | 0.3 | | | | | | 0.3 | | |
Florida
|
| | | | 0.2 | | | | | | — | | |
Nevada
|
| | | | 0.2 | | | | | | 0.2 | | |
Arkansas
|
| | | | — | | | | | | 0.1 | | |
Massachusetts
|
| | | | 0.1 | | | | | | 0.1 | | |
Total
|
| | | $ | 6.5 | | | | | $ | 5.6 | | |
| | | | ||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
Interest on cash and cash equivalents
|
| | | $ | 1.0 | | | | | $ | 2.8 | | | | | $ | 1.0 | | |
Bonds
|
| | | | 0.1 | | | | | | 0.1 | | | | | | 0.1 | | |
Short-term investments
|
| | | | 0.4 | | | | | | 0.5 | | | | | | 0.2 | | |
Net investment income
|
| | | $ | 1.5 | | | | | $ | 3.4 | | | | | $ | 1.3 | | |
| | |
Fair Value Measurements as of December 31, 2020
|
| |||||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government obligations
|
| | | $ | — | | | | | $ | 6.6 | | | | | $ | — | | | | | $ | 6.6 | | |
Total
|
| | | $ | — | | | | | $ | 6.6 | | | | | $ | — | | | | | $ | 6.6 | | |
| | |
Fair Value Measurements as of December 31, 2019
|
| |||||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government obligations
|
| | | $ | — | | | | | $ | 5.9 | | | | | $ | — | | | | | $ | 5.9 | | |
Total
|
| | | $ | — | | | | | $ | 5.9 | | | | | $ | — | | | | | $ | 5.9 | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Reinsurance recoverable on paid losses
|
| | | $ | 12.7 | | | | | $ | 1.8 | | |
Ceded unpaid loss and LAE
|
| | | | 36.3 | | | | | | 18.5 | | |
Total reinsurance recoverable
|
| | | $ | 49.0 | | | | | $ | 20.3 | | |
|
AM Best Rating
|
| |
Reinsurer
|
| | | ||||||||||
| | |
2019
|
| |||||||||||||
|
A+
|
| |
Hannover Rueck SE
|
| | | $ | 22.2 | | | | | $ | 2.3 | | |
|
A
|
| |
MAPFRE Re, Compania De Reaseguros S.A.
|
| | | | 6.8 | | | | | | — | | |
|
A+
|
| |
Swiss Reinsurance America Corporation
|
| | | | 5.8 | | | | | | — | | |
|
A++
|
| |
Tokio Marine & Nichido Fire Insurance Company Limited
|
| | | | 3.9 | | | | | | — | | |
|
NR
|
| |
Lloyd’s Underwriter Syndicate no. 1084 CSL
|
| | | | 3.0 | | | | | | 0.8 | | |
|
A+
|
| |
Arch Reinsurance Limited
|
| | | | 2.7 | | | | | | — | | |
|
A+
|
| |
Munich Reinsurance America Inc
|
| | | | 1.6 | | | | | | 1.7 | | |
|
A
|
| |
Lloyd’s Underwriter Syndicate no. 0033 HIS
|
| | | | 1.6 | | | | | | 1.7 | | |
|
A
|
| |
Lloyd’s Underwriter Syndicate no. 2357 NCL
|
| | | | 1.6 | | | | | | 1.7 | | |
|
A
|
| |
Hiscox Insurance Company (Bermuda) Ltd
|
| | | | 1.2 | | | | | | 1.3 | | |
|
NR
|
| |
Lloyd’s Underwriter Syndicate no. 2001 AML
|
| | | | 1.2 | | | | | | 1.3 | | |
| | | | | | | | | 51.6 | | | | | | 10.8 | | |
| | | |
Other reinsurers
|
| | | | 5.1 | | | | | | 3.7 | | |
| | | | | | | | $ | 56.7 | | | | | $ | 14.5 | | |
| | | | ||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
Premium written: | | | | | | | | | | | | | | | | | | | |
Direct
|
| | | $ | 214.4 | | | | | $ | 115.8 | | | | | $ | 46.8 | | |
Ceded
|
| | | | (171.7) | | | | | | (11.2) | | | | | | (5.6) | | |
Net premium written
|
| | | $ | 42.7 | | | | | $ | 104.6 | | | | | $ | 41.2 | | |
Premium earned: | | | | | | | | | | | | | | | | | | | |
Direct
|
| | | $ | 158.7 | | | | | $ | 75.5 | | | | | $ | 25.3 | | |
Ceded
|
| | | | (81.4) | | | | | | (11.7) | | | | | | (4.1) | | |
Net premium earned
|
| | | $ | 77.3 | | | | | $ | 63.8 | | | | | $ | 21.2 | | |
Loss and LAE incurred: | | | | | | | | | | | | | | | | | | | |
Direct
|
| | | $ | 113.4 | | | | | $ | 59.7 | | | | | $ | 28.6 | | |
Ceded
|
| | | | (58.7) | | | | | | (13.9) | | | | | | (13.4) | | |
Net loss and LAE incurred
|
| | | $ | 54.7 | | | | | $ | 45.8 | | | | | $ | 15.2 | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Deferred Acquisition Costs | | | | | | | | | | | | | |
Balance, January 1
|
| | | $ | 1.8 | | | | | $ | 0.6 | | |
Add: | | | | | | | | | | | | | |
Premium taxes and other acquisition costs
|
| | | | 5.8 | | | | | | 3.2 | | |
Direct commissions
|
| | | | 0.8 | | | | | | 0.1 | | |
Less: | | | | | | | | | | | | | |
Amortization of net deferred acquisition costs
|
| | | | (4.9) | | | | | | (2.1) | | |
Balance, December 31
|
| | | $ | 3.5 | | | | | $ | 1.8 | | |
Other Insurance Expense | | | | | | | | | | | | | |
Amortization of net deferred acquisition costs
|
| | | $ | 4.9 | | | | | $ | 2.1 | | |
Period costs
|
| | | | 9.5 | | | | | | 7.5 | | |
Total other insurance expense
|
| | | $ | 14.4 | | | | | $ | 9.6 | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Computer equipment and software
|
| | | $ | 4.8 | | | | | $ | 1.9 | | |
Leasehold improvements
|
| | | | 2.2 | | | | | | 1.2 | | |
Furniture and equipment
|
| | | | 1.1 | | | | | | 0.7 | | |
| | | | | 8.1 | | | | | | 3.8 | | |
Accumulated depreciation
|
| | | | (2.4) | | | | | | (0.7) | | |
Property and equipment, net
|
| | | $ | 5.7 | | | | | $ | 3.1 | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Prepaid expenses
|
| | | $ | 7.5 | | | | | $ | 0.9 | | |
Ceding commissions receivable
|
| | | | 5.4 | | | | | | — | | |
Investment income due and accrued
|
| | | | 0.9 | | | | | | 0.4 | | |
Security deposits
|
| | | | 0.7 | | | | | | 0.5 | | |
VAT receivable
|
| | | | — | | | | | | 0.2 | | |
Funds on deposit with claims administrator
|
| | | | — | | | | | | 0.2 | | |
Prepaid income taxes
|
| | | | — | | | | | | 0.1 | | |
Other
|
| | | | — | | | | | | 0.2 | | |
Total other assets
|
| | | $ | 14.5 | | | | | $ | 2.5 | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Unpaid loss and LAE as of January 1
|
| | | $ | 28.2 | | | | | $ | 13.1 | | |
Less: Reinsurance recoverable(1)
|
| | | | 18.5 | | | | | | 11.3 | | |
Net unpaid loss and LAE as of January 1
|
| | | | 9.7 | | | | | | 1.8 | | |
Add: Incurred losses and LAE, net of reinsurance, related to: | | | | | | | | | | | | | |
Current year
|
| | | | 54.8 | | | | | | 47.3 | | |
Prior years
|
| | | | (0.1) | | | | | | (1.5) | | |
Total incurred
|
| | | | 54.7 | | | | | | 45.8 | | |
Deduct: Paid losses and LAE, net of reinsurance, related to: | | | | | | | | | | | | | |
Current year
|
| | | | 44.6 | | | | | | 37.7 | | |
Prior years
|
| | | | 9.8 | | | | | | 0.2 | | |
Total paid
|
| | | | 54.4 | | | | | | 37.9 | | |
Unpaid loss and LAE, net of reinsurance recoverable, as of December 31
|
| | | | 10.0 | | | | | | 9.7 | | |
Reinsurance recoverable as of December 31(1)
|
| | | | 36.3 | | | | | | 18.5 | | |
Unpaid loss and LAE, gross of reinsurance recoverable, as of December 31
|
| | | $ | 46.3 | | | | | $ | 28.2 | | |
| | | | | | | | |||||||||||||||||||||||||||||||||||||||
| | |
December 31
|
| | | | | | | |
Cumulative
Number of Reported Claims |
| | ||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2017
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
IBNR
|
| | ||||||||||||||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Accident Year | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2016
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | 8 | | | | | |
2017
|
| | | | — | | | | | | 1.7 | | | | | | 1.7 | | | | | | 1.7 | | | | | | 1.7 | | | | | | — | | | | | | 1,758 | | | | | |
2018
|
| | | | — | | | | | | — | | | | | | 15.0 | | | | | | 13.5 | | | | | | 13.4 | | | | | | — | | | | | | 10,532 | | | | | |
2019
|
| | | | — | | | | | | — | | | | | | — | | | | | | 46.0 | | | | | | 46.0 | | | | | | — | | | | | | 19,440 | | | | | |
2020
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 53.5 | | | | | | 5.1 | | | | | | 45,162 | | | | | |
Total incurred losses and ALAE, net
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 114.6 | | | | | $ | 5.1 | | | | | | 76,900 | | | | | |
| | | | ||||||||||||||||||||||||||||
| | |
2017
|
| |
2018
|
| |
2019
|
| |
2020
|
| ||||||||||||||||||
|
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| | | | | | | ||||||||||||||
Accident Year | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2016
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
2017
|
| | | | — | | | | | | 1.6 | | | | | | 1.7 | | | | | | 1.7 | | | | | | 1.7 | | |
2018
|
| | | | — | | | | | | — | | | | | | 13.2 | | | | | | 13.4 | | | | | | 13.4 | | |
2019
|
| | | | — | | | | | | — | | | | | | — | | | | | | 36.4 | | | | | | 46.1 | | |
2020
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 43.4 | | |
Total paid losses and ALAE, net
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 104.6 | | |
Total unpaid loss and ALAE reserves, net
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 10.0 | | |
Ceded unpaid loss and LAE
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 36.3 | | |
Gross unpaid loss and LAE
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 46.3 | | |
| | |
2020 Current Accident Year
|
| |
2020 Prior Accident Year
|
| ||||||||||||||||||
|
Incurred
|
| |
Paid
|
| |
Incurred
|
| |
Paid
|
| ||||||||||||||
Rollforward table
|
| | | $ | 54.8 | | | | | $ | 44.6 | | | | | $ | (0.1) | | | | | $ | 9.8 | | |
Development table
|
| | | | 53.5 | | | | | | 43.4 | | | | | | — | | | | | | 9.7 | | |
Variance
|
| | | $ | 1.3 | | | | | $ | 1.2 | | | | | $ | (0.1) | | | | | $ | 0.1 | | |
Unallocated loss adjustment expense
|
| | | $ | 1.3 | | | | | $ | 1.2 | | | | | | | | | | | | | | |
| | |
1
|
| |
2
|
| |
3
|
| |||||||||
Property & Casualty
|
| | | | 78% | | | | | | 16% | | | | | | 5% | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Deferred ceding commission
|
| | | $ | 22.4 | | | | | $ | — | | |
Ceded premium payable
|
| | | | 13.0 | | | | | | 3.9 | | |
Accrued advertising costs
|
| | | | 6.8 | | | | | | 7.9 | | |
Employee compensation payable
|
| | | | 3.7 | | | | | | 1.0 | | |
Premium taxes payable
|
| | | | 3.2 | | | | | | 2.6 | | |
Accrued professional fees
|
| | | | 2.6 | | | | | | 2.8 | | |
Income tax payable
|
| | | | 0.3 | | | | | | 0.5 | | |
VAT payable
|
| | | | 0.2 | | | | | | 0.4 | | |
Other payables
|
| | | | 1.9 | | | | | | 0.6 | | |
Total other liabilities and accrued expenses
|
| | | $ | 54.1 | | | | | $ | 19.7 | | |
| | | | ||||||||||||||||||||||||||||
|
Preferred
Stock Authorized |
| |
Preferred
Stock Issued and Outstanding |
| |
Carrying
Value |
| |
Liquidation
Preference |
| |
Common Stock
Issuable Upon Conversion |
| |||||||||||||||||
Series Seed Preferred stock
|
| | | | 7,905,140 | | | | | | 7,905,140 | | | | | $ | 12.9 | | | | | $ | 13.0 | | | | | | 7,905,140 | | |
Series A Preferred stock
|
| | | | 3,328,774 | | | | | | 3,328,774 | | | | | | 14.0 | | | | | | 13.6 | | | | | | 3,328,774 | | |
Series B Preferred stock
|
| | | | 4,511,417 | | | | | | 4,511,417 | | | | | | 34.1 | | | | | | 34.1 | | | | | | 4,511,417 | | |
Series C Preferred Stock
|
| | | | 8,703,846 | | | | | | 8,703,846 | | | | | | 119.8 | | | | | | 120.1 | | | | | | 8,703,846 | | |
Series D Preferred Stock
|
| | | | 7,107,930 | | | | | | 7,107,930 | | | | | | 299.4 | | | | | | 300.0 | | | | | | 7,107,930 | | |
| | | | | 31,557,107 | | | | | | 31,557,107 | | | | | $ | 480.2 | | | | | $ | 480.8 | | | | | | 31,557,107 | | |
| | | | ||||
| | |
2019
|
| |||
Weighted average expected term (years)
|
| |
6.09
|
| |
6.06
|
|
Risk-free interest rate
|
| |
0.7%
|
| |
1.7%
|
|
Volatility
|
| |
40%
|
| |
45%
|
|
Expected dividend yield
|
| |
0%
|
| |
0%
|
|
| | |
Number of
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding as of December 31, 2019
|
| | | | 4,048,802 | | | | | $ | 13.27 | | | | | | 8.83 | | | | | $ | 42.20 | | |
Granted
|
| | | | 1,325,030 | | | | | | 38.32 | | | | | | | | | | | | | | |
Exercised
|
| | | | (282,422) | | | | | | 6.86 | | | | | | | | | | | | | | |
Cancelled
|
| | | | (146,699) | | | | | | 23.68 | | | | | | | | | | | | | | |
Outstanding as of December 31, 2020
|
| | | | 4,944,711 | | | | | $ | 20.50 | | | | | | 8.30 | | | | | $ | 506.58 | | |
Options exercisable as of December 31, 2020
|
| | | | 1,766,466 | | | | | $ | 9.64 | | | | | | 7.35 | | | | | $ | 199.37 | | |
Options unvested as of December 31, 2020
|
| | | | 3,178,245 | | | | | $ | 25.84 | | | | | | 8.82 | | | | | $ | 307.22 | | |
| | |
Years Ended December 31
|
| |||||||||||||||
|
2020
|
| |
2019
|
| |
2018
|
| |||||||||||
Loss and loss adjustment expense, net
|
| | | $ | 0.4 | | | | | $ | — | | | | | $ | — | | |
Other insurance expense
|
| | | | 0.7 | | | | | | 0.6 | | | | | | 0.2 | | |
Sales and marketing
|
| | | | 2.7 | | | | | | 1.1 | | | | | $ | 0.3 | | |
Technology development
|
| | | | 3.1 | | | | | | 1.4 | | | | | $ | 0.1 | | |
General and administrative
|
| | | | 3.7 | | | | | | 1.2 | | | | | $ | 1.5 | | |
Total stock-based compensation expense
|
| | | $ | 10.6 | | | | | $ | 4.3 | | | | | $ | 2.1 | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards
|
| | | $ | 92.7 | | | | | $ | 62.1 | | |
Deferred ceding commission
|
| | | | 4.8 | | | | | | — | | |
Charitable contribution
|
| | | | 4.7 | | | | | | 0.3 | | |
Stock-based compensation
|
| | | | 3.8 | | | | | | 0.4 | | |
Net unearned premium
|
| | | | 1.4 | | | | | | 2.9 | | |
Startup costs
|
| | | | 0.9 | | | | | | 1.0 | | |
Other
|
| | | | 0.3 | | | | | | 0.1 | | |
Total gross deferred tax assets
|
| | | | 108.6 | | | | | | 66.8 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Deferred acquisition costs
|
| | | | (0.8) | | | | | | (0.4) | | |
Depreciation and amortization
|
| | | | (0.9) | | | | | | (0.4) | | |
Total gross deferred tax liabilities
|
| | | | (1.7) | | | | | | (0.8) | | |
Valuation allowance
|
| | | | (106.9) | | | | | | (66.0) | | |
Total deferred tax assets, net
|
| | | $ | — | | | | | $ | — | | |
| | | | ||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
United States
|
| | | $ | (123.6) | | | | | $ | (109.5) | | | | | $ | (53.0) | | |
Foreign
|
| | | | 2.8 | | | | | | 1.6 | | | | | | 0.4 | | |
Total
|
| | | $ | (120.8) | | | | | $ | (107.9) | | | | | $ | (52.6) | | |
| | | | ||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | | | | | — | | |
Foreign
|
| | | | 1.5 | | | | | | 0.6 | | | | | | 0.3 | | |
Total current
|
| | | | 1.5 | | | | | | 0.6 | | | | | | 0.3 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | | | | | — | | |
State
|
| | | | — | | | | | | — | | | | | | — | | |
Foreign
|
| | | | — | | | | | | — | | | | | | — | | |
Total deferred
|
| | | | — | | | | | | — | | | | | | — | | |
Total income tax expense
|
| | | $ | 1.5 | | | | | $ | 0.6 | | | | | $ | 0.3 | | |
| | | | ||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
Income at US statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit
|
| | | | 12.8% | | | | | | 13.9% | | | | | | 12.0% | | |
Permanent differences
|
| | | | (1.2)% | | | | | | (1.7)% | | | | | | (1.4)% | | |
Tax law change
|
| | | | —% | | | | | | — | | | | | | 0.5% | | |
Foreign rate differential
|
| | | | 0.2% | | | | | | 0.1% | | | | | | —% | | |
Valuation allowance
|
| | | | (33.9)% | | | | | | (33.9)% | | | | | | (33.6)% | | |
Other
|
| | | | (0.1)% | | | | | | — | | | | | | 0.9% | | |
Total income taxes
|
| | | | (1.2)% | | | | | | (0.6)% | | | | | | (0.6)% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Net loss attributable to common stockholders (in millions)
|
| | | $ | (122.3) | | | | | $ | (108.5) | | | | | $ | (52.9) | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 33,654,828 | | | | | | 11,124,397 | | | | | | 10,931,776 | | |
Net loss per share attributable to common stockholders – basic
and diluted |
| | | $ | (3.63) | | | | | $ | (9.75) | | | | | $ | (4.84) | | |
| | | | ||||||||||
| | |
2019
|
| |||||||||
Options to purchase common stock
|
| | | | 4,944,711 | | | | | | 4,048,802 | | |
Convertible preferred stock (as converted to common stock)
|
| | | | — | | | | | | 31,557,107 | | |
| | | | | 4,944,711 | | | | | | 35,605,909 | | |
|
2021
|
| | | $ | 4.8 | | |
|
2022
|
| | | | 5.0 | | |
|
2023
|
| | | | 2.8 | | |
|
2024
|
| | | | 2.8 | | |
|
2025 and thereafter
|
| | | | 4.4 | | |
| | | | | $ | 19.8 | | |
Jurisdiction
|
| |
Years ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||||||||||||||||||||
|
Amount
|
| |
% of GWP
|
| |
Amount
|
| |
% of GWP
|
| |
Amount
|
| |
% of GWP
|
| ||||||||||||||||||||
California
|
| | | $ | 49.8 | | | | | | 23.2% | | | | | $ | 29.0 | | | | | | 25.0% | | | | | $ | 12.5 | | | | | | 26.7% | | |
Texas
|
| | | | 47.8 | | | | | | 22.3% | | | | | | 28.6 | | | | | | 24.7% | | | | | | 13.4 | | | | | | 28.6% | | |
New York
|
| | | | 26.7 | | | | | | 12.5% | | | | | | 15.8 | | | | | | 13.6% | | | | | | 7.3 | | | | | | 15.6% | | |
Georgia
|
| | | | 11.6 | | | | | | 5.4% | | | | | | 6.2 | | | | | | 5.4% | | | | | | 2.2 | | | | | | 4.7% | | |
Illinois
|
| | | | 9.8 | | | | | | 4.6% | | | | | | 5.2 | | | | | | 4.5% | | | | | | 2.5 | | | | | | 5.3% | | |
New Jersey
|
| | | | 8.6 | | | | | | 4.0% | | | | | | 4.7 | | | | | | 4.1% | | | | | | 1.7 | | | | | | 3.6% | | |
Michigan
|
| | | | 6.0 | | | | | | 2.8% | | | | | | 3.2 | | | | | | 2.8% | | | | | | 0.9 | | | | | | 1.9% | | |
Ohio
|
| | | | 5.2 | | | | | | 2.4% | | | | | | 2.9 | | | | | | 2.5% | | | | | | 1.3 | | | | | | 2.8% | | |
Pennsylvania
|
| | | | 5.1 | | | | | | 2.4% | | | | | | 2.7 | | | | | | 2.3% | | | | | | 1.1 | | | | | | 2.4% | | |
Arizona
|
| | | | 4.6 | | | | | | 2.1% | | | | | | 2.5 | | | | | | 2.2% | | | | | | 0.8 | | | | | | 1.7% | | |
All other
|
| | | | 39.2 | | | | | | 18.3% | | | | | | 15.0 | | | | | | 12.9% | | | | | | 3.1 | | | | | | 6.7% | | |
| | | | $ | 214.4 | | | | | | 100.0% | | | | | $ | 115.8 | | | | | | 100.0% | | | | | $ | 46.8 | | | | | | 100.0% | | |
($ in millions)
|
| |
Balance at
beginning of period |
| |
Additions
|
| |
(Deductions)
|
| |
Balance at
end of period |
| ||||||||||||||||||
|
Charged to
costs and expenses |
| |
Charge
to other accounts |
| ||||||||||||||||||||||||||
Year Ended December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Valuation allowance for deferred tax assets
|
| | | $ | 66.0 | | | | | $ | 40.9 | | | | | $ | — | | | | | $ | — | | | | | $ | 106.9 | | |
Allowance for premium receivables
|
| | | $ | 0.2 | | | | | $ | 2.2 | | | | | $ | — | | | | | $ | (1.9) | | | | | $ | 0.5 | | |
Year Ended December 31, 2019
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Valuation allowance for deferred tax assets
|
| | | $ | 29.4 | | | | | $ | 36.6 | | | | | $ | — | | | | | $ | — | | | | | $ | 66.0 | | |
Allowance for premium receivables
|
| | | $ | — | | | | | $ | 0.9 | | | | | $ | — | | | | | $ | (0.7) | | | | | $ | 0.2 | | |
| | |
Page
|
| |||
| | | | F-89 | | | |
| | | | F-90 | | | |
| | | | F-91 | | | |
| | | | F-92 | | | |
| | | | F-93 | | | |
| | | | F-94 | | | |
| | | | F-96 | | |
| | | | | | ||||||||
| | |
(unaudited)
|
| | | | | | | |||
Assets | | | | | | | | | | | | | |
Investments | | | | | | | | | | | | | |
Marketable securities – restricted
|
| | | $ | 49,792 | | | | | $ | 24,651 | | |
Total investments
|
| | | | 49,792 | | | | | | 24,651 | | |
Cash and cash equivalents
|
| | | | 159,157 | | | | | | 19,150 | | |
Restricted cash and cash equivalents
|
| | | | 50,938 | | | | | | 31,038 | | |
Receivable for securities
|
| | | | 624 | | | | | | — | | |
Premiums receivable
|
| | | | 18,655 | | | | | | 16,329 | | |
Reinsurance recoverable on paid loss
|
| | | | — | | | | | | 8,475 | | |
Reinsurance recoverable on unpaid loss
|
| | | | — | | | | | | 33,941 | | |
Prepaid reinsurance premium
|
| | | | — | | | | | | 13,668 | | |
Prepaid expenses and other assets
|
| | | | 7,973 | | | | | | 12,058 | | |
Deferred transaction costs
|
| | | | — | | | | | | 3,581 | | |
Deferred policy acquisition costs, net
|
| | | | 1,569 | | | | | | 656 | | |
Telematics devices, improvements and equipment, net
|
| | | | 13,025 | | | | | | 12,716 | | |
Website and software development costs, net
|
| | | | 22,008 | | | | | | 18,401 | | |
Digital assets, net
|
| | | | 803 | | | | | | — | | |
Intangible assets
|
| | | | 7,500 | | | | | | 7,500 | | |
Total assets
|
| | | $ | 332,044 | | | | | $ | 202,164 | | |
Liabilities, Convertible Preferred Stock and Stockholders’ Deficit | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | |
Loss and loss adjustment expense reserves
|
| | | $ | 70,798 | | | | | $ | 57,093 | | |
Ceded reinsurance premium payable
|
| | | | — | | | | | | 27,000 | | |
Payable to carriers – premiums and LAE, net
|
| | | | 299 | | | | | | 849 | | |
Unearned premium reserve
|
| | | | 17,393 | | | | | | 16,070 | | |
Deferred revenue
|
| | | | 4,597 | | | | | | 5,817 | | |
Accounts payable and accrued expenses
|
| | | | 8,907 | | | | | | 8,222 | | |
Notes payable
|
| | | | — | | | | | | 51,934 | | |
Warrant liability
|
| | | | 6,693 | | | | | | 83,652 | | |
Other liabilities
|
| | | | 6,302 | | | | | | 8,554 | | |
Total liabilities
|
| | | | 114,989 | | | | | | 259,191 | | |
Commitments and contingencies (Note 10) | | | | | | | | | | | | | |
Convertible preferred stock, $0.0001 par value; 10,000,000 and 89,775,268 shares authorized as of September 30, 2021, and December 31, 2020, respectively; 0 and 68,776,614 shares issued and outstanding as of September 30, 2021, and December 31, 2020, respectively; liquidation preference of $0 and $302,397 as of September 30, 2021, and December 31, 2020, respectively
|
| | | | — | | | | | | 304,469 | | |
Stockholders’ equity (deficit) | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 640,000,000 and 111,702,628 shares
authorized as of September 30, 2021, and December 31, 2020, respectively; 127,737,209 and 8,992,039 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively |
| | | | 13 | | | | | | 1 | | |
Accumulated paid-in capital
|
| | | | 755,276 | | | | | | 5,482 | | |
Note receivable from executive
|
| | | | — | | | | | | (415) | | |
Accumulated other comprehensive (loss) income
|
| | | | (15) | | | | | | 11 | | |
Accumulated deficit
|
| | | | (538,219) | | | | | | (366,575) | | |
Total stockholders’ equity (deficit)
|
| | | | 217,055 | | | | | | (361,496) | | |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)
|
| | | $ | 332,044 | | | | | $ | 202,164 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums earned, net
|
| | | $ | 28,142 | | | | | $ | 3,139 | | | | | $ | 47,316 | | | | | $ | 9,360 | | |
Investment income
|
| | | | 30 | | | | | | 81 | | | | | | 85 | | | | | | 500 | | |
Other revenue
|
| | | | 1,829 | | | | | | 4,731 | | | | | | 27,974 | | | | | | 14,499 | | |
Total revenue
|
| | | | 30,001 | | | | | | 7,951 | | | | | | 75,375 | | | | | | 24,359 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | | 27,480 | | | | | | 4,443 | | | | | | 62,383 | | | | | | 12,214 | | |
Policy servicing expense and other
|
| | | | 5,674 | | | | | | 4,119 | | | | | | 15,172 | | | | | | 12,803 | | |
Sales, marketing and other acquisition costs
|
| | | | 12,332 | | | | | | 28 | | | | | | 85,552 | | | | | | 3,616 | | |
Research and development
|
| | | | 5,130 | | | | | | 1,832 | | | | | | 11,898 | | | | | | 6,668 | | |
Amortization of capitalized software
|
| | | | 2,838 | | | | | | 2,815 | | | | | | 8,190 | | | | | | 8,311 | | |
Other operating expenses
|
| | | | 14,207 | | | | | | 3,924 | | | | | | 39,534 | | | | | | 13,138 | | |
Total costs and expenses
|
| | | | 67,661 | | | | | | 17,161 | | | | | | 222,729 | | | | | | 56,750 | | |
Loss from operations
|
| | | | (37,660) | | | | | | (9,210) | | | | | | (147,354) | | | | | | (32,391) | | |
Other expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | 1,513 | | | | | | 15,974 | | | | | | 3,453 | | |
Impairment on digital assets
|
| | | | 117 | | | | | | — | | | | | | 183 | | | | | | — | | |
(Decrease) increase in fair value of stock warrant liability
|
| | | | (11,020) | | | | | | (26) | | | | | | 8,133 | | | | | | 640 | | |
Total other expense
|
| | | | (10,903) | | | | | | 1,487 | | | | | | 24,290 | | | | | | 4,093 | | |
Loss before taxes
|
| | | | (26,757) | | | | | | (10,697) | | | | | | (171,644) | | | | | | (36,484) | | |
Income tax benefit
|
| | | | — | | | | | | (67) | | | | | | — | | | | | | (67) | | |
Net loss
|
| | | $ | (26,757) | | | | | $ | (10,630) | | | | | $ | (171,644) | | | | | $ | (36,417) | | |
Net loss per share, basic and diluted
|
| | | $ | (0.21) | | | | | $ | (1.20) | | | | | $ | (1.56) | | | | | $ | (4.10) | | |
Weighted-average shares used in computing basic and diluted net loss per share
|
| | | | 127,166,524 | | | | | | 8,888,099 | | | | | | 109,988,189 | | | | | | 8,882,040 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Net loss
|
| | | $ | (26,757) | | | | | $ | (10,630) | | | | | $ | (171,644) | | | | | $ | (36,417) | | |
Unrealized net loss on marketable securities
|
| | | | — | | | | | | (64) | | | | | | (26) | | | | | | (33) | | |
Total comprehensive loss
|
| | | $ | (26,757) | | | | | $ | (10,694) | | | | | $ | (171,670) | | | | | $ | (36,450) | | |
| | |
Convertible
Preferred Stock |
| |
Common Stock
|
| |
APIC
|
| |
Note
Receivable |
| |
Accumulated
Other Comprehensive Income |
| |
Accumulated
Deficit |
| |
Total
|
| |||||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019
|
| | | | 67,728,286 | | | | | $ | 304,469 | | | | | | 8,730,377 | | | | | $ | 1 | | | | | $ | 3,816 | | | | | $ | (408) | | | | | $ | 60 | | | | | $ | (246,478) | | | | | $ | (243,009) | | |
Retroactive application of recapitalization
|
| | | | 1,048,328 | | | | | | — | | | | | | 135,133 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
As adjusted, beginning of period
|
| | |
|
68,776,614
|
| | | |
|
304,469
|
| | | |
|
8,865,510
|
| | | |
|
1
|
| | | |
|
3,816
|
| | | |
|
(408)
|
| | | |
|
60
|
| | | |
|
(246,478)
|
| | | |
|
(243,009)
|
| |
Exercises and vested portion of stock options
|
| | | | — | | | | | | — | | | | | | 20,452 | | | | | | — | | | | | | 50 | | | | | | — | | | | | | — | | | | | | — | | | | | | 50 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 555 | | | | | | — | | | | | | — | | | | | | — | | | | | | 555 | | |
Interest on stock purchase promissory
note |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6) | | | | | | — | | | | | | — | | | | | | (6) | | |
Unrealized net gain on marketable securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 31 | | | | | | — | | | | | | 31 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (25,787) | | | | | | (25,787) | | |
Balance as of June 30, 2020
|
| | | | 68,776,614 | | | | | $ | 304,469 | | | | | | 8,885,962 | | | | | $ | 1 | | | | | $ | 4,421 | | | | | $ | (414) | | | | | $ | 91 | | | | | $ | (272,265) | | | | | | (268,166) | | |
Exercises and vested portion of stock options
|
| | | | — | | | | | | — | | | | | | 7,630 | | | | | | — | | | | | | 20 | | | | | | — | | | | | | — | | | | | | — | | | | | | 20 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 426 | | | | | | — | | | | | | — | | | | | | — | | | | | | 426 | | |
Interest on stock purchase promissory
note |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2) | | | | | | — | | | | | | — | | | | | | (2) | | |
Unrealized net gain on marketable securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (64) | | | | | | — | | | | | | (64) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,630) | | | | | | (10,630) | | |
Balance as of September 30, 2020
|
| | | | 68,776,614 | | | | | $ | 304,469 | | | | | | 8,893,592 | | | | | $ | 1 | | | | | $ | 4,867 | | | | | $ | (416) | | | | | $ | 27 | | | | | $ | (282,895) | | | | | $ | (278,416) | | |
Balance as of December 31, 2020
|
| | | | 67,728,286 | | | | | $ | 304,469 | | | | | | 8,854,978 | | | | | $ | 1 | | | | | $ | 5,482 | | | | | $ | (415) | | | | | $ | 11 | | | | | $ | (366,575) | | | | | $ | (361,496) | | |
Retroactive application of recapitalization
|
| | | | 1,048,328 | | | | | | | | | | | | 137,061 | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
As adjusted, beginning of period
|
| | | | 68,776,614 | | | | | $ | 304,469 | | | | | $ | 8,992,039 | | | | | $ | 1 | | | | | $ | 5,482 | | | | | $ | (415) | | | | | $ | 11 | | | | | $ | (366,575) | | | | | $ | (361,496) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,021 | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,021 | | |
Exercises and vested portion of stock options
|
| | | | — | | | | | | — | | | | | | 1,089,670 | | | | | | — | | | | | | 2,175 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,175 | | |
Conversion of promissory note
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (415) | | | | | | 415 | | | | | | — | | | | | | — | | | | | | — | | |
RSUs withheld for tax purposes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (422) | | | | | | — | | | | | | — | | | | | | — | | | | | | (422) | | |
Unrealized net loss on marketable securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (26) | | | | | | — | | | | | | (26) | | |
Exercise of convertible preferred stock
warrants |
| | | | 3,974,655 | | | | | | 132,718 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
Conversion of preferred stock to common
|
| | | | (72,751,269) | | | | | | (437,187) | | | | | | 72,751,269 | | | | | | 7 | | | | | | 437,187 | | | | | | — | | | | | | — | | | | | | — | | | | | | 437,194 | | |
Business Combination and PIPE financing
|
| | | | — | | | | | | — | | | | | | 43,894,156 | | | | | | 4 | | | | | | 290,953 | | | | | | — | | | | | | — | | | | | | — | | | | | | 290,957 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (144,887) | | | | | | (144,887) | | |
Balance as of June 30, 2021
|
| | | | — | | | | | $ | — | | | | | | 126,727,134 | | | | | $ | 12 | | | | | $ | 746,981 | | | | | $ | — | | | | | $ | (15) | | | | | $ | (511,462) | | | | | $ | 235,516 | | |
401K match with MILE stock
|
| | | | — | | | | | | — | | | | | | 37,170 | | | | | | — | | | | | | 321 | | | | | | — | | | | | | — | | | | | | — | | | | | | 321 | | |
Exercises and vested portion of stock options
|
| | | | — | | | | | | — | | | | | | 5,968 | | | | | | — | | | | | | 46 | | | | | | — | | | | | | — | | | | | | — | | | | | | 46 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 966,937 | | | | | | 1 | | | | | | 7,928 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,929 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (26,757) | | | | | | (26,757) | | |
Balance as of September 30, 2021
|
| | | | — | | | | | $ | — | | | | | | 127,737,209 | | | | | $ | 13 | | | | | $ | 755,276 | | | | | $ | — | | | | | $ | (15) | | | | | $ | (538,219) | | | | | $ | 217,055 | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2020
|
| |||||||||
| | |
(unaudited)
|
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (171,644) | | | | | $ | (36,417) | | |
Adjustments to reconcile net loss to cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 12,523 | | | | | | 12,503 | | |
Stock-based compensation
|
| | | | 19,949 | | | | | | 981 | | |
Change in fair value of warrant liability
|
| | | | 8,133 | | | | | | 640 | | |
Telematics devices unreturned
|
| | | | 1,616 | | | | | | 684 | | |
Amortization of debt issuance costs
|
| | | | 11,695 | | | | | | 796 | | |
Noncash interest and other expense
|
| | | | 4,388 | | | | | | 8,344 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Premiums receivable
|
| | | | (2,326) | | | | | | (1,171) | | |
Accounts receivable
|
| | | | 3,526 | | | | | | 692 | | |
Reinsurance recoverable on paid loss
|
| | | | 8,475 | | | | | | 4,752 | | |
Reinsurance recoverable on unpaid loss
|
| | | | 33,941 | | | | | | (4,746) | | |
Prepaid reinsurance premium
|
| | | | 13,668 | | | | | | (1,899) | | |
Prepaid expenses and other assets
|
| | | | 456 | | | | | | 3,636 | | |
Deferred transaction costs
|
| | | | 3,581 | | | | | | — | | |
Deferred policy acquisition costs, net
|
| | | | (1,951) | | | | | | (482) | | |
Digital assets, net
|
| | | | (986) | | | | | | — | | |
Accounts payable and accrued expenses
|
| | | | 476 | | | | | | (2,115) | | |
Ceded reinsurance premium payable
|
| | | | (27,000) | | | | | | (8,683) | | |
Loss and loss adjustment expense reserves
|
| | | | 13,705 | | | | | | 1,157 | | |
Payable to carriers – premiums and LAE, net
|
| | | | (550) | | | | | | (1,558) | | |
Unearned premium reserve
|
| | | | 1,323 | | | | | | 2,234 | | |
Deferred revenue
|
| | | | (1,220) | | | | | | 249 | | |
Deferred tax liability
|
| | | | — | | | | | | (67) | | |
Other liabilities
|
| | | | (2,109) | | | | | | 1,134 | | |
Net cash used in operating activities
|
| | | | (70,331) | | | | | | (19,336) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of telematics devices, improvements, and equipment
|
| | | | (5,220) | | | | | | (6,269) | | |
Payments relating to capitalized website and software development costs
|
| | | | (12,077) | | | | | | (10,320) | | |
Net change in payable/(receivable) for securities
|
| | | | (624) | | | | | | 225 | | |
Purchase of securities
|
| | | | (44,828) | | | | | | (18,088) | | |
Sales and maturities of marketable securities
|
| | | | 19,484 | | | | | | 39,040 | | |
Net cash (used in) provided by investing activities
|
| | | | (43,265) | | | | | | 4,588 | | |
Cash flow from financing activities: | | | | | | | | | | | | | |
Proceeds from notes payable
|
| | | | 2,015 | | | | | | 25,880 | | |
Payment on notes payable
|
| | | | (69,351) | | | | | | (222) | | |
Proceeds from merger with INSU II, net of issuance costs
|
| | | | 336,469 | | | | | | — | | |
Proceeds from exercise of common stock options and warrants
|
| | | | 4,370 | | | | | | 70 | | |
Net cash provided by financing activities
|
| | | | 273,503 | | | | | | 25,728 | | |
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents
|
| | | | 159,907 | | | | | | 10,980 | | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period
|
| | | | 50,188 | | | | | | 42,887 | | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of
period |
| | | $ | 210,095 | | | | | $ | 53,867 | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2020
|
| |||||||||
| | |
(unaudited)
|
| |||||||||
Supplemental cash flow data: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 3,164 | | | | | $ | 2,233 | | |
Non-cash investing and financing transactions: | | | | | | | | | | | | | |
Net liabilities assumed in the Business Combination
|
| | | $ | 45,516 | | | | | $ | — | | |
Net exercise of preferred stock warrants
|
| | | $ | 56,160 | | | | | $ | — | | |
Net exercise of promissory note
|
| | | $ | 415 | | | | | $ | — | | |
Capitalized website and software development costs included in accrued liabilities
|
| | | $ | 280 | | | | | $ | 125 | | |
Capitalized stock-based compensation
|
| | | $ | 639 | | | | | $ | 336 | | |
Reclassification of liability to equity for vesting of stock options
|
| | | $ | 169 | | | | | $ | — | | |
Preferred stock warrant issued in conjunction with note payable
|
| | | $ | — | | | | | $ | 12,464 | | |
| | |
Fair Value Measurement at
September 30, 2021 (unaudited) |
| |||||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||||
Cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 154,111 | | | | | $ | — | | | | | $ | — | | | | | $ | 154,111 | | |
Total cash equivalents
|
| | | $ | 154,111 | | | | | $ | — | | | | | $ | — | | | | | $ | 154,111 | | |
Restricted cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 31,254 | | | | | $ | — | | | | | $ | — | | | | | $ | 31,254 | | |
Certificates of deposits
|
| | | | 3,331 | | | | | | — | | | | | | — | | | | | | 3,331 | | |
Total restricted cash equivalents
|
| | | $ | 34,585 | | | | | $ | — | | | | | $ | — | | | | | $ | 34,585 | | |
Marketable securities – restricted | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | — | | | | | $ | 3,356 | | | | | $ | — | | | | | $ | 3,356 | | |
U.S. treasury and agency securities
|
| | | | 23,273 | | | | | | 1,995 | | | | | | — | | | | | | 25,268 | | |
Commercial paper
|
| | | | — | | | | | | 12,088 | | | | | | — | | | | | | 12,088 | | |
Asset backed securities
|
| | | | — | | | | | | 9,080 | | | | | | — | | | | | | 9,080 | | |
Total marketable securities – restricted
|
| | | $ | 23,273 | | | | | $ | 26,519 | | | | | $ | — | | | | | $ | 49,792 | | |
| | |
Fair Value Measurement at
December 31, 2020 |
| |||||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||||
Cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 6,771 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,771 | | |
Total cash equivalents
|
| | | $ | 6,771 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,771 | | |
Restricted cash equivalents
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 6,201 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,201 | | |
Certificates of deposits
|
| | | | 3,331 | | | | | | — | | | | | | — | | | | | | 3,331 | | |
Total restricted cash equivalents
|
| | | $ | 9,532 | | | | | $ | — | | | | | $ | — | | | | | $ | 9,532 | | |
Marketable securities – restricted
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | — | | | | | $ | 5,955 | | | | | $ | — | | | | | $ | 5,955 | | |
U.S. treasury securities
|
| | | | 6,994 | | | | | | — | | | | | | — | | | | | | 6,994 | | |
Commercial paper
|
| | | | — | | | | | | 8,791 | | | | | | — | | | | | | 8,791 | | |
Asset backed securities
|
| | | | — | | | | | | 2,911 | | | | | | — | | | | | | 2,911 | | |
Total marketable securities – restricted
|
| | | $ | 6,994 | | | | | $ | 17,657 | | | | | $ | — | | | | | $ | 24,651 | | |
|
Balance at December 31, 2019
|
| | | $ | 1,738 | | |
|
Issuance of warrant on Series E convertible preferred stock
|
| | | | 12,620 | | |
|
Increase in fair value of warrant
|
| | | | 69,294 | | |
|
Balance at December 31, 2020
|
| | | $ | 83,652 | | |
|
Increase in fair value of warrants
|
| | | | 47,061 | | |
|
Exercise of preferred stock warrants prior to Business Combination
|
| | | | (130,714) | | |
|
Public and Private placement Warrants acquired in Business Combination
|
| | | | 45,623 | | |
|
Decrease in fair value of Public and Private placement Warrants
|
| | | | (38,929) | | |
|
Balance at September 30, 2021
|
| | | $ | 6,693 | | |
| | | | |
Exercise
Price (in whole dollars) |
| |
Dividend
Yield |
| |
Volatility
|
| |
Risk-Free
Interest Rate |
| |
Expected
Term (in years) |
| |||||||||||||||||||
Private placement warrants
|
| | | $ | 176 | | | | | $ | 11.50 | | | | | | 0% | | | | | | 70% | | | | | | 0.84% | | | | | | 4.4 | | |
| | |
As of September 30, 2021 (Unaudited)
|
| |||||||||||||||||||||
|
Amortized
Cost |
| |
Unrealized
Gain |
| |
Unrealized
Loss |
| |
Estimated
Fair Value |
| ||||||||||||||
Marketable securities – restricted
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | 3,356 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,356 | | |
U.S. treasury and agency securities
|
| | | | 25,274 | | | | | | — | | | | | | (6) | | | | | | 25,268 | | |
Commercial paper
|
| | | | 12,088 | | | | | | — | | | | | | — | | | | | | 12,088 | | |
Asset backed securities
|
| | | | 9,083 | | | | | | — | | | | | | (3) | | | | | | 9,080 | | |
Total marketable securities – restricted
|
| | | $ | 49,801 | | | | | $ | — | | | | | $ | (9) | | | | | $ | 49,792 | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
|
Amortized
Cost |
| |
Unrealized
Gain |
| |
Unrealized
Loss |
| |
Estimated
Fair Value |
| ||||||||||||||
Marketable securities – restricted | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | 5,938 | | | | | $ | 17 | | | | | $ | — | | | | | $ | 5,955 | | |
U.S. treasury securities
|
| | | | 6,994 | | | | | | — | | | | | | — | | | | | | 6,994 | | |
Commercial paper
|
| | | | 8,791 | | | | | | — | | | | | | — | | | | | | 8,791 | | |
Asset backed securities
|
| | | | 2,911 | | | | | | — | | | | | | — | | | | | | 2,911 | | |
Total marketable securities — restricted
|
| | | $ | 24,634 | | | | | $ | 17 | | | | | $ | — | | | | | $ | 24,651 | | |
| | | | ||||||||||
|
Amortized
Cost |
| |
Estimated
Fair Value |
| ||||||||
Due within one year
|
| | | $ | 29,171 | | | | | $ | 29,193 | | |
Due between one to five years
|
| | | | 20,630 | | | | | | 20,599 | | |
| | | | $ | 49,801 | | | | | $ | 49,792 | | |
| | | | ||||||||||
|
Amortized
Cost |
| |
Estimated
Fair Value |
| ||||||||
Due within one year
|
| | | $ | 21,603 | | | | | $ | 21,629 | | |
Due between one to five years
|
| | | | 3,031 | | | | | | 3,022 | | |
| | | | $ | 24,634 | | | | | $ | 24,651 | | |
| | |
Recapitalization
|
| |||
Cash – INSU’s trust and cash (net of redemptions)
|
| | | $ | 229,925 | | |
Cash – PIPE
|
| | | | 170,000 | | |
Less transaction costs and advisory fees paid
|
| | | | 31,456 | | |
Less cash payments to Metromile Operating Company stockholders
|
| | | | 32,000 | | |
Net Business Combination and PIPE financing
|
| | | | 336,469 | | |
Less non-cash net liabilities assumed from INSU
|
| | | | 45,516 | | |
Net contributions from Business Combination and PIPE Financing
|
| | | $ | 290,953 | | |
| | |
Number of Shares
|
| |||
INSU Class A Common stock, outstanding prior to Business Combination
|
| | | | 23,540,000 | | |
INSU Class B Common stock, outstanding prior to Business Combination
|
| | | | 6,669,667 | | |
Less redemption of INSU shares
|
| | | | 8,372 | | |
Common stock of INSU
|
| | | | 30,201,295 | | |
Shares issued in PIPE
|
| | | | 17,000,000 | | |
Business Combination and PIPE financing shares
|
| | | | 47,201,295 | | |
Metromile Operating Company shares(1)
|
| | | | 79,525,839 | | |
Total shares of common stock immediately after Business Combination
|
| | | | 126,727,134 | | |
| | | | | | ||||||||
| | |
(unaudited)
|
| | | | | | | |||
Deferred policy acquisition costs
|
| | | $ | 11,363 | | | | | $ | 10,511 | | |
Deferred ceding commission(1)
|
| | | | (104) | | | | | | (1,202) | | |
Accumulated amortization
|
| | | | (9,690) | | | | | | (8,653) | | |
Deferred policy acquisition costs, net
|
| | | $ | 1,569 | | | | | $ | 656 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | | | |
2020
|
| |||||||
| | |
(unaudited)
|
| |||||||||
Balance at January 1
|
| | | $ | 57,093 | | | | | $ | 52,222 | | |
Less reinsurance recoverable
|
| | | | (33,941) | | | | | | (28,837) | | |
Net balance at January 1
|
| | | | 23,152 | | | | | | 23,385 | | |
Incurred related to: | | | | | | | | | | | | | |
Current year
|
| | | | 60,940 | | | | | | 10,774 | | |
Prior years
|
| | | | 1,332 | | | | | | 1,214 | | |
Total incurred
|
| | | | 62,272 | | | | | | 11,988 | | |
Paid related to: | | | | | | | | | | | | | |
Current year
|
| | | | 26,648 | | | | | | 4,155 | | |
Prior years
|
| | | | (12,022) | | | | | | 11,422 | | |
Total paid
|
| | | | 14,626 | | | | | | 15,577 | | |
Net balance at end of period
|
| | | | 70,798 | | | | | | 19,796 | | |
Plus reinsurance recoverable
|
| | | | — | | | | | | 33,583 | | |
Balance at end of period
|
| | | $ | 70,798 | | | | | $ | 53,379 | | |
| | |
September 30, 2021 (unaudited)
|
| |||||||||||||||||||||||||||
|
Premium
Written |
| |
Premium
Earned |
| |
Unearned
Premium |
| |
Losses and LAE
Incurred |
| |
Loss and LAE
Reserves |
| |||||||||||||||||
Direct
|
| | | $ | 83,396 | | | | | $ | 82,073 | | | | | $ | 17,393 | | | | | $ | 76,973 | | | | | $ | 70,798 | | |
Ceded
|
| | | | (19,411) | | | | | | (33,080) | | | | | | — | | | | | | (14,701) | | | | | | — | | |
Net
|
| | | $ | 63,985 | | | | | $ | 48,993 | | | | | $ | 17,393 | | | | | $ | 62,272 | | | | | $ | 70,798 | | |
| | | | ||||||||||||||||||||||||||||
|
Premium
Written |
| |
Premium
Earned |
| |
Unearned
Premium |
| |
Losses and LAE
Incurred |
| |
Loss and LAE
Reserves |
| |||||||||||||||||
Direct
|
| | | $ | 100,611 | | | | | $ | 99,712 | | | | | $ | 16,070 | | | | | $ | 74,943 | | | | | $ | 57,093 | | |
Ceded
|
| | | | (85,504) | | | | | | (84,740) | | | | | | (13,668) | | | | | | (54,010) | | | | | | (33,941) | | |
Net
|
| | | $ | 15,107 | | | | | $ | 14,972 | | | | | $ | 2,402 | | | | | $ | 20,933 | | | | | $ | 23,152 | | |
| | | | | | ||||||||
| | |
(unaudited)
|
| | | | | | | |||
2019 Loan and Security Agreement
|
| | | $ | — | | | | | $ | 25,000 | | |
Subordinated Note Purchase and Security Agreement
|
| | | | — | | | | | | 32,461 | | |
Paycheck Protection Program Loan
|
| | | | — | | | | | | 5,880 | | |
Principal Amount Due
|
| | | | — | | | | | | 63,341 | | |
Less: Unamortized debt issuance costs and discounts
|
| | | | — | | | | | | (11,407) | | |
Notes payable, net
|
| | | $ | — | | | | | $ | 51,934 | | |
As of September 30, 2021 (unaudited)
|
| |
Purchase
Obligations |
| |
Leases
|
| |
Total
|
| |||||||||
2021 (remaining three months)
|
| | | $ | 1,045 | | | | | $ | 825 | | | | | $ | 1,870 | | |
2022
|
| | | | — | | | | | | 3,093 | | | | | | 3,093 | | |
2023
|
| | | | — | | | | | | 3,181 | | | | | | 3,181 | | |
2024
|
| | | | — | | | | | | 3,190 | | | | | | 3,190 | | |
2025
|
| | | | — | | | | | | 2,433 | | | | | | 2,433 | | |
Thereafter
|
| | | | — | | | | | | 11,186 | | | | | | 11,186 | | |
Total minimum lease payments
|
| | | $ | 1,045 | | | | | $ | 23,908 | | | | | $ | 24,953 | | |
| | |
Number of RSUs
|
| |
Weighted-Average
FairValue |
| ||||||
Balance at December 31, 2020
|
| | | | — | | | | | $ | — | | |
Granted
|
| | | | 9,848,048 | | | | | | 9.38 | | |
Vested
|
| | | | (2,267,295) | | | | | | 10.47 | | |
Forfeited
|
| | | | (127,507) | | | | | | 8.61 | | |
Balance at September 30, 2021
|
| | | | 7,453,246 | | | | | $ | 9.07 | | |
| | |
2021
|
|
Expected volatility
|
| |
65% – 70%
|
|
Expected term (years)
|
| |
0.60 – 1.90
|
|
Expected dividend yield
|
| |
n/a
|
|
Risk-free interest rate
|
| |
.3% – .6%
|
|
| | | | ||||
Forfeiture rate
|
| | | | 26.2% | | |
Volatility
|
| | | | 62.00% | | |
Expected term (years)
|
| | | | 5.33 | | |
Risk-free interest rate
|
| | | | 0.53% | | |
Expected dividends
|
| | | | — | | |
| | |
Year ended
December 31, 2020 |
|
Forfeiture rate
|
| |
19.60% – 25.76%
|
|
Volatility
|
| |
47.00% – 62.00%
|
|
Expected term (years)
|
| |
4.95 – 7.00
|
|
Risk-free interest rate
|
| |
0.26% – 1.73%
|
|
Expected dividends
|
| |
—
|
|
| | |
Stock
Number of Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value (in thousands) |
| ||||||||||||
Outstanding as of December 31, 2020
|
| | | | 5,931,024 | | | | | $ | 2.61 | | | | | | 8.10 | | | | | $ | 70,192 | | |
Options granted
|
| | | | 4,231 | | | | | $ | 14.45 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (1,095,567) | | | | | $ | 2.21 | | | | | | | | | | | | | | |
Options cancelled or expired and returned to plan
|
| | | | (1,987,158) | | | | | $ | 2.24 | | | | | | | | | | | | | | |
Outstanding as of September 30, 2021 (unaudited)
|
| | | | 2,852,530 | | | | | $ | 3.00 | | | | | | 8.48 | | | | | $ | 1,611 | | |
Vested and exercisable to vest as of September 30, 2021
|
| | | | 643,414 | | | | | $ | 2.96 | | | | | | 8.22 | | | | | $ | 400 | | |
Vested and expected as of September 30, 2021 (unaudited)
|
| | | | 1,986,567 | | | | | $ | 2.99 | | | | | | 8.36 | | | | | $ | 1,146 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Cost of revenues
|
| | | $ | 343 | | | | | $ | 39 | | | | | $ | 568 | | | | | $ | 53 | | |
Research and development
|
| | | | 1,691 | | | | | | 219 | | | | | | 2,321 | | | | | | 455 | | |
Sales and marketing
|
| | | | 693 | | | | | | 41 | | | | | | 832 | | | | | | 44 | | |
Other operating expenses
|
| | | | 5,201 | | | | | | 127 | | | | | | 16,228 | | | | | | 429 | | |
Total stock-based compensation
|
| | | $ | 7,928 | | | | | $ | 426 | | | | | $ | 19,949 | | | | | $ | 981 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance services
|
| | | $ | 28,470 | | | | | $ | 6,810 | | | | | $ | 71,686 | | | | | $ | 20,753 | | |
Enterprise business solutions
|
| | | | 1,531 | | | | | | 1,141 | | | | | | 3,689 | | | | | | 3,606 | | |
Total revenue
|
| | |
$
|
30,001
|
| | | |
$
|
7,951
|
| | | |
$
|
75,375
|
| | | | $ | 24,359 | | |
Contribution: | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance services
|
| | | $ | (2,097) | | | | | $ | 4,480 | | | | | $ | (5,133) | | | | | $ | 10,981 | | |
Enterprise business solutions
|
| | | | (786) | | | | | | (546) | | | | | | (2,383) | | | | | | (716) | | |
Total contribution
|
| | | $ | (2,883) | | | | | $ | 3,934 | | | | | $ | (7,516) | | | | | $ | 10,265 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Total segment contribution
|
| | | $ | (2,883) | | | | | $ | 3,934 | | | | | $ | (7,516) | | | | | $ | 10,265 | | |
Ceded premium, losses and LAE
|
| | | | — | | | | | | 5,134 | | | | | | (5,242) | | | | | | 11,548 | | |
Other income
|
| | | | 345 | | | | | | 901 | | | | | | 1,672 | | | | | | 1,699 | | |
Policy services expenses and other
|
| | | | 2,242 | | | | | | 200 | | | | | | 4,305 | | | | | | 1,999 | | |
Sales, marketing, and other acquisition costs
|
| | | | 12,092 | | | | | | (89) | | | | | | 84,975 | | | | | | 3,299 | | |
Research and development
|
| | | | 3,060 | | | | | | 261 | | | | | | 6,427 | | | | | | 2,662 | | |
Amortization of capitalized software
|
| | | | 2,838 | | | | | | 2,815 | | | | | | 8,190 | | | | | | 8,311 | | |
Other operating expenses
|
| | | | 14,200 | | | | | | 3,922 | | | | | | 39,511 | | | | | | 13,138 | | |
Loss from operations
|
| | | $ | (37,660) | | | | | $ | (9,210) | | | | | $ | (147,354) | | | | | $ | (32,391) | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||||||||
California
|
| | | $ | 16,352 | | | | | $ | 15,737 | | | | | $ | 47,832 | | | | | $ | 43,343 | | |
Washington
|
| | | | 3,567 | | | | | | 3,086 | | | | | | 9,931 | | | | | | 8,410 | | |
New Jersey
|
| | | | 2,853 | | | | | | 2,475 | | | | | | 8,061 | | | | | | 6,718 | | |
Oregon
|
| | | | 1,821 | | | | | | 1,862 | | | | | | 5,330 | | | | | | 5,466 | | |
Illinois
|
| | | | 1,133 | | | | | | 1,179 | | | | | | 3,193 | | | | | | 3,381 | | |
Arizona
|
| | | | 1,410 | | | | | | 1,170 | | | | | | 3,923 | | | | | | 3,332 | | |
Pennsylvania
|
| | | | 735 | | | | | | 792 | | | | | | 2,133 | | | | | | 2,197 | | |
Virginia
|
| | | | 622 | | | | | | 459 | | | | | | 1,670 | | | | | | 1,284 | | |
Total premiums earned
|
| | | $ | 28,493 | | | | | $ | 26,760 | | | | | $ | 82,073 | | | | | $ | 74,131 | | |
| | |
Three months ended
September 30, |
| |
Nine months ended
September 30, |
| ||||||||||||||||||
| | | | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Numerator: | | | | | | ||||||||||||||||||||
Net loss attributable to common stockholders ($ in thousands)
|
| | | $ | (26,757) | | | | | $ | (10,630) | | | | | $ | (171,644) | | | | | $ | (36,417) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 127,166,524 | | | | | | 8,888,099 | | | | | | 109,988,189 | | | | | | 8,882,040 | | |
Net loss per share attributable to common stockholders – basic and diluted
|
| | |
$
|
(0.21)
|
| | | | $ | (1.20) | | | | | $ | (1.56) | | | | | $ | (4.10) | | |
| | |
As of September 30,
|
| |||||||||
| | | | |
2020
|
| |||||||
| | |
(unaudited)
|
| |||||||||
Convertible preferred stock
|
| | | | — | | | | | | 68,776,612 | | |
Outstanding stock options – Stock Plan
|
| | | | 2,852,530 | | | | | | 6,149,668 | | |
Warrants for preferred stock
|
| | | | — | | | | | | 9,570,649 | | |
Warrants for common stock
|
| | | | 7,846,646 | | | | | | — | | |
Restricted stock units
|
| | | | 11,506,230 | | | | | | — | | |
Total anti-dilutive securities
|
| | | | 22,205,406 | | | | | | 84,496,929 | | |
| | | | | | ||||||||
Assets | | | | | | | | | | | | | |
Investments | | | | | | | | | | | | | |
Marketable securities
|
| | | $ | 9,352 | | | | | $ | — | | |
Marketable securities – restricted
|
| | | | 36,963 | | | | | | 24,651 | | |
Total investments
|
| | | | 46,315 | | | | | | 24,651 | | |
Cash and cash equivalents
|
| | | | 18,687 | | | | | | 19,150 | | |
Restricted cash and cash equivalents
|
| | | | 24,200 | | | | | | 31,038 | | |
Receivable for securities
|
| | | | 225 | | | | | | — | | |
Premiums receivable
|
| | | | 16,602 | | | | | | 16,329 | | |
Accounts receivable
|
| | | | 5,590 | | | | | | 4,999 | | |
Reinsurance recoverable on paid loss
|
| | | | 12,541 | | | | | | 8,475 | | |
Reinsurance recoverable on unpaid loss
|
| | | | 28,837 | | | | | | 33,941 | | |
Prepaid reinsurance premium
|
| | | | 12,904 | | | | | | 13,668 | | |
Prepaid expenses and other assets
|
| | | | 8,621 | | | | | | 7,059 | | |
Deferred transaction costs
|
| | | | — | | | | | | 3,581 | | |
Deferred policy acquisition costs, net
|
| | | | 1,421 | | | | | | 656 | | |
Telematics devices, improvements and equipment, net
|
| | | | 10,570 | | | | | | 12,716 | | |
Website and software development costs, net
|
| | | | 16,481 | | | | | | 18,401 | | |
Intangible assets
|
| | | | 7,500 | | | | | | 7,500 | | |
Total assets
|
| | | $ | 210,494 | | | | | $ | 202,164 | | |
Liabilities, Convertible Preferred Stock and Stockholders’ Deficit | | | | | | | | | | | | | |
Loss and loss adjustment expense reserves
|
| | | $ | 52,222 | | | | | $ | 57,093 | | |
Ceded reinsurance premium payable
|
| | | | 36,864 | | | | | | 27,000 | | |
Payable to carriers – premiums and LAE, net
|
| | | | 2,553 | | | | | | 849 | | |
Unearned premium reserve
|
| | | | 15,171 | | | | | | 16,070 | | |
Deferred revenue
|
| | | | 5,200 | | | | | | 5,817 | | |
Accounts payable and accrued expenses
|
| | | | 5,911 | | | | | | 8,222 | | |
Note payable
|
| | | | 24,102 | | | | | | 51,934 | | |
Deferred tax liability
|
| | | | 84 | | | | | | — | | |
Warrant liability
|
| | | | 1,738 | | | | | | 83,652 | | |
Other liabilities
|
| | | | 5,189 | | | | | | 8,554 | | |
Total liabilities
|
| | | | 149,034 | | | | | | 259,191 | | |
Commitments and contingencies (Note 11) | | | | | | | | | | | | | |
Convertible preferred stock, $0.0001 par value; 78,697,118, and 89,775,268 shares
authorized as of December 31, 2019, and 2020, respectively; 68,776,614 shares issued and outstanding as of December 31, 2019 and 2020; liquidation preference of $302,397 as of December 31, 2019 and 2020 |
| | | | 304,469 | | | | | | 304,469 | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 97,485,929 and 111,702,628 shares authorized as of December 31, 2019 and 2020, respectively; 8,865,510 and 8,992,039 shares issued and outstanding as of December 31, 2019 and 2020
|
| | | | 1 | | | | | | 1 | | |
Accumulated paid-in capital
|
| | | | 3,816 | | | | | | 5,482 | | |
Note receivable from executive
|
| | | | (408) | | | | | | (415) | | |
Accumulated other comprehensive gain/(loss)
|
| | | | 60 | | | | | | 11 | | |
Accumulated deficit
|
| | | | (246,478) | | | | | | (366,575) | | |
Total stockholders’ deficit
|
| | | | (243,009) | | | | | | (361,496) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit
|
| | | $ | 210,494 | | | | | $ | 202,164 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | | | |
2020
|
| |||||||
Revenue | | | | | | | | | | | | | |
Premiums earned, net
|
| | | $ | 23,807 | | | | | $ | 12,464 | | |
Investment income
|
| | | | 1,898 | | | | | | 523 | | |
Other revenue
|
| | | | 27,050 | | | | | | 22,077 | | |
Total revenue
|
| | | | 52,755 | | | | | | 35,064 | | |
Costs and expenses | | | | | | | | | | | | | |
Losses and loss adjustment expenses
|
| | | | 30,758 | | | | | | 21,208 | | |
Policy servicing expense and other
|
| | | | 16,297 | | | | | | 16,813 | | |
Sales, marketing and other acquisition costs
|
| | | | 23,954 | | | | | | 5,483 | | |
Research and development
|
| | | | 9,055 | | | | | | 8,211 | | |
Amortization of capitalized software
|
| | | | 10,648 | | | | | | 11,188 | | |
Other operating expenses
|
| | | | 18,896 | | | | | | 16,981 | | |
Total costs and expenses
|
| | | | 109,608 | | | | | | 79,884 | | |
Loss from operations
|
| | | | (56,853) | | | | | | (44,820) | | |
Other expense | | | | | | | | | | | | | |
Interest expense
|
| | | | 247 | | | | | | 6,067 | | |
Increase in fair value of stock warrant liability
|
| | | | 92 | | | | | | 69,294 | | |
Total other expense
|
| | | | 339 | | | | | | 75,361 | | |
Net loss before taxes
|
| | | | (57,192) | | | | | | (120,181) | | |
Income tax provision/(benefit)
|
| | | | 37 | | | | | | (84) | | |
Net loss after taxes
|
| | | $ | (57,229) | | | | | $ | (120,097) | | |
Net loss per share, basic and diluted
|
| | | $ | (6.74) | | | | | $ | (13.51) | | |
Weighted-average shares used in computing basic and diluted net loss per share
|
| | | | 8,489,372 | | | | | | 8,890,631 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | | | |
2020
|
| |||||||
Net loss
|
| | | $ | (57,229) | | | | | $ | (120,097) | | |
Unrealized net gain (loss) on marketable securities
|
| | | | 61 | | | | | | (49) | | |
Total comprehensive loss
|
| | | $ | (57,168) | | | | | $ | (120,146) | | |
| | |
Convertible
Preferred Stock |
| |
Common Stock
|
| |
APIC
|
| |
Note
Receivable |
| |
Accumulated
Other Comprehensive Income |
| |
Accumulated
Deficit |
| |
Total
|
| |||||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2018
|
| | | | 67,728,286 | | | | | $ | 304,469 | | | | | | 7,942,833 | | | | | $ | 1 | | | | | $ | 1,030 | | | | | $ | (387) | | | | | $ | (1) | | | | | $ | (189,249) | | | | | $ | (188,606) | | |
Retroactive application of recapitalization
|
| | | | 1,048,328 | | | | | | — | | | | | | 122,943 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
As adjusted, beginning of period
|
| | | | 68,776,614 | | | | | | 304,469 | | | | | | 8,065,776 | | | | | | 1 | | | | | | 1,030 | | | | | | (387) | | | | | | (1) | | | | | | (189,249) | | | | | | (188,606) | | |
Vested portion of common stock
options |
| | | | — | | | | | | — | | | | | | 799,734 | | | | | | — | | | | | | 1,359 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,359 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,427 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,427 | | |
Interest on stock purchase promissory note
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (21) | | | | | | — | | | | | | — | | | | | | (21) | | |
Unrealized net gain on marketable securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 61 | | | | | | — | | | | | | 61 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (57,229) | | | | | | (57,229) | | |
Balances as of December 31, 2019
|
| | | | 68,776,614 | | | | | $ | 304,469 | | | | | | 8,865,510 | | | | | $ | 1 | | | | | $ | 3,816 | | | | | $ | (408) | | | | | $ | 60 | | | | | $ | (246,478) | | | | | $ | (243,009) | | |
Vested portion of common stock
options |
| | | | — | | | | | | — | | | | | | 126,529 | | | | | | — | | | | | | 209 | | | | | | — | | | | | | — | | | | | | — | | | | | | 209 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,457 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,457 | | |
Interest on stock purchase promissory note
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7) | | | | | | — | | | | | | — | | | | | | (7) | | |
Unrealized net loss on marketable
securities |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (49) | | | | | | — | | | | | | (49) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (120,097) | | | | | | (120,097) | | |
Balances as of December 31, 2020
|
| | | | 68,776,614 | | | | | $ | 304,469 | | | | | | 8,992,039 | | | | | $ | 1 | | | | | $ | 5,482 | | | | | $ | (415) | | | | | $ | 11 | | | | | $ | (366,575) | | | | | $ | (361,496) | | |
| | |
Years Ended December 31,
|
| |||||||||
| | | | |
2020
|
| |||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (57,229) | | | | | $ | (120,097) | | |
Adjustments to reconcile net loss to cash used in operating activities | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 15,651 | | | | | | 17,004 | | |
Stock-based compensation
|
| | | | 1,427 | | | | | | 1,457 | | |
Change in fair value of warrant liability
|
| | | | 92 | | | | | | 69,294 | | |
Telematic devices unreturned
|
| | | | 989 | | | | | | 682 | | |
Amortization of debt issuance costs
|
| | | | 30 | | | | | | 687 | | |
Noncash interest and other (expense)/income
|
| | | | (181) | | | | | | 1,136 | | |
Changes in operating assets and liabilities
|
| | | | | | | | | | | | |
Premiums receivable
|
| | | | (1,041) | | | | | | 273 | | |
Accounts receivable
|
| | | | 64 | | | | | | 591 | | |
Reinsurance recoverable on paid loss
|
| | | | (5,017) | | | | | | 4,066 | | |
Reinsurance recoverable on unpaid loss
|
| | | | (11,194) | | | | | | (5,104) | | |
Prepaid reinsurance premium
|
| | | | (4,070) | | | | | | (764) | | |
Prepaid expenses and other assets
|
| | | | (3,984) | | | | | | 2,920 | | |
Deferred transaction costs
|
| | | | — | | | | | | (3,581) | | |
Deferred policy acquisition costs, net
|
| | | | (1,508) | | | | | | (976) | | |
Accounts payable and accrued expenses
|
| | | | 484 | | | | | | 2,119 | | |
Ceded reinsurance premium payable
|
| | | | 13,821 | | | | | | (9,864) | | |
Loss and loss adjustment expense reserves
|
| | | | 11,037 | | | | | | 4,871 | | |
Payable to carriers – premiums and LAE, net
|
| | | | (435) | | | | | | (1,704) | | |
Unearned premium reserve
|
| | | | 1,042 | | | | | | 899 | | |
Deferred revenue
|
| | | | 4,400 | | | | | | 617 | | |
Deferred tax liability
|
| | | | 37 | | | | | | (84) | | |
Other liabilities
|
| | | | 4,844 | | | | | | 3,365 | | |
Net cash used in operating activities
|
| | | | (30,741) | | | | | | (32,193) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of telematics devices, improvements, and equipment
|
| | | | (7,970) | | | | | | (6,903) | | |
Payments relating to capitalized website and software development costs
|
| | | | (12,167) | | | | | | (13,108) | | |
Purchase of securities
|
| | | | (204,044) | | | | | | (26,646) | | |
Sales and maturities of marketable securities
|
| | | | 160,893 | | | | | | 48,462 | | |
Net cash (used in) provided by investing activities
|
| | | | (63,288) | | | | | | 1,805 | | |
Cash flow from financing activities: | | | | | | | | | | | | | |
Proceeds from notes payable
|
| | | | 24,441 | | | | | | 37,480 | | |
Payment on notes payable
|
| | | | (1,653) | | | | | | — | | |
Repurchase of unvested common stock options
|
| | | | (22) | | | | | | — | | |
Proceeds from exercise of common stock options and warrants
|
| | | | 1,343 | | | | | | 209 | | |
Net cash provided by financing activities
|
| | | | 24,109 | | | | | | 37,689 | | |
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents
|
| | | | (69,920) | | | | | | 7,301 | | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period
|
| | | | 112,807 | | | | | | 42,887 | | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
|
| | | $ | 42,887 | | | | | $ | 50,188 | | |
| | |
Years Ended
December 31, |
| |||||||||
| | | | |
2020
|
| |||||||
Supplemental cash flow data: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 212 | | | | | $ | 2,797 | | |
Non-cash investing and financing transactions: | | | | | | | | | | | | | |
Purchases of telematics devices, improvements and equipment included in accounts payable at year end
|
| | | $ | 1 | | | | | $ | — | | |
Capitalized stock-based compensation
|
| | | $ | 400 | | | | | $ | 522 | | |
Preferred stock warrant issued in conjunction with note payable
|
| | | $ | 499 | | | | | $ | 12,620 | | |
Reclassification of liability to equity for vesting of stock options
|
| | | $ | 38 | | | | | $ | — | | |
| | |
Fair Value Measurement at
December 31, 2019 |
| |||||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||||
Cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 5,275 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,275 | | |
Total cash equivalents
|
| | | | 5,275 | | | | | | — | | | | | | — | | | | | | 5,275 | | |
Restricted cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | | 1,896 | | | | | | — | | | | | | — | | | | | | 1,896 | | |
Repurchase agreements
|
| | | | — | | | | | | 2,000 | | | | | | — | | | | | | 2,000 | | |
Certificates of deposits
|
| | | | 3,771 | | | | | | — | | | | | | — | | | | | | 3,771 | | |
Total restricted cash equivalents
|
| | | | 5,667 | | | | | | 2,000 | | | | | | — | | | | | | 7,667 | | |
Marketable securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | | — | | | | | | 7,852 | | | | | | — | | | | | | 7,852 | | |
Asset backed securities
|
| | | | — | | | | | | 1,500 | | | | | | — | | | | | | 1,500 | | |
Total marketable securities
|
| | | | — | | | | | | 9,352 | | | | | | — | | | | | | 9,352 | | |
Marketable securities – restricted | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | | — | | | | | | 12,505 | | | | | | — | | | | | | 12,505 | | |
U.S. treasury securities
|
| | | | 10,627 | | | | | | 1,055 | | | | | | — | | | | | | 11,682 | | |
Commercial paper
|
| | | | — | | | | | | 6,273 | | | | | | — | | | | | | 6,273 | | |
Asset backed securities
|
| | | | — | | | | | | 6,503 | | | | | | — | | | | | | 6,503 | | |
Total marketable securities – restricted
|
| | | $ | 10,627 | | | | | $ | 26,336 | | | | | $ | — | | | | | $ | 36,963 | | |
| | |
Fair Value Measurement at
December 31, 2020 |
| |||||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||||
Cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | $ | 6,771 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,771 | | |
Total cash equivalents
|
| | | | 6,771 | | | | | | — | | | | | | — | | | | | | 6,771 | | |
Restricted cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market accounts
|
| | | | 6,201 | | | | | | — | | | | | | — | | | | | | 6,201 | | |
Certificates of deposits
|
| | | | 3,331 | | | | | | — | | | | | | — | | | | | | 3,331 | | |
Total restricted cash equivalents
|
| | | | 9,532 | | | | | | — | | | | | | — | | | | | | 9,532 | | |
Marketable securities – restricted | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | | — | | | | | | 5,955 | | | | | | — | | | | | | 5,955 | | |
U.S. treasury securities
|
| | | | 6,994 | | | | | | — | | | | | | — | | | | | | 6,994 | | |
Commercial paper
|
| | | | — | | | | | | 8,791 | | | | | | — | | | | | | 8,791 | | |
Asset backed securities
|
| | | | — | | | | | | 2,911 | | | | | | — | | | | | | 2,911 | | |
Total marketable securities – restricted
|
| | | $ | 6,994 | | | | | $ | 17,657 | | | | | $ | — | | | | | $ | 24,651 | | |
|
Balance at December 31, 2018
|
| | | $ | 1,147 | | |
|
Issuance of warrant on Series E convertible preferred stock
|
| | | | 499 | | |
|
Increase in fair value of warrant
|
| | | | 92 | | |
|
Balance at December 31, 2019
|
| | | | 1,738 | | |
|
Issuance of warrant on Series E convertible preferred stock
|
| | | | 12,620 | | |
|
Increase in fair value of warrant
|
| | | | 69,294 | | |
|
Balance at December 31, 2020
|
| | | $ | 83,652 | | |
| | | | |
Exercise
Price |
| |
Dividend
Yield |
| |
Volatility
|
| |
Risk-Free
Interest Rate |
| |
Expected
Term (in Years) |
| |||||||||||||||||||
Series A
|
| | | $ | 972 | | | | | $ | 0.5909 | | | | | | 0% | | | | | | 66.00% | | | | | | 1.60% | | | | | | 2.42 | | |
Series C
|
| | | $ | 127 | | | | | $ | 4.3189 | | | | | | 0% | | | | | | 44.00% | | | | | | 1.60% | | | | | | 2.33 | | |
Series D
|
| | | $ | 140 | | | | | $ | 5.0763 | | | | | | 0% | | | | | | 40.00% | | | | | | 1.59% | | | | | | 1.42 | | |
Series E
|
| | | $ | 499 | | | | | $ | 6.2894 | | | | | | 0% | | | | | | 34.00% | | | | | | 1.62% | | | | | | 3.13 | | |
| | | | |
Exercise
Price |
| |
Dividend
Yield |
| |
Volatility
|
| |
Risk-Free
Interest Rate |
| |
Expected
Term (in Years) |
| |||||||||||||||||||
Series A
|
| | | $ | 4,459 | | | | | $ | 0.5909 | | | | | | 0% | | | | | | 63.00% | | | | | | 0.27% | | | | | | 0.46 | | |
Series C
|
| | | $ | 883 | | | | | $ | 4.3189 | | | | | | 0% | | | | | | 61.00% | | | | | | 0.27% | | | | | | 0.46 | | |
Series D
|
| | | $ | 1,163 | | | | | $ | 5.0763 | | | | | | 0% | | | | | | 61.00% | | | | | | 0.09% | | | | | | 0.46 | | |
Series E
|
| | | $ | 3,763 | | | | | $ | 6.2894 | | | | | | 0% | | | | | | 60.00% | | | | | | 0.58% | | | | | | 0.46 | | |
Series E
|
| | | $ | 73,162 | | | | | $ | 6.2894 | | | | | | 0% | | | | | | 60.00% | | | | | | 0.09% | | | | | | 0.46 | | |
Series E
|
| | | $ | 222 | | | | | $ | 8.6560 | | | | | | 0% | | | | | | 60.00% | | | | | | 0.09% | | | | | | 0.46 | | |
| | |
As of December 31, 2019
|
| |||||||||||||||||||||
|
Amortized
Cost |
| |
Unrealized
Gain |
| |
Unrealized
Loss |
| |
Estimated
Fair Value |
| ||||||||||||||
Marketable securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | 7,848 | | | | | $ | 4 | | | | | $ | — | | | | | $ | 7,852 | | |
Asset backed securities
|
| | | | 1,499 | | | | | | 1 | | | | | | — | | | | | | 1,500 | | |
Total marketable securities
|
| | | $ | 9,347 | | | | | $ | 5 | | | | | $ | — | | | | | $ | 9,352 | | |
Marketable securities – restricted | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | 12,481 | | | | | $ | 24 | | | | | $ | — | | | | | $ | 12,505 | | |
U.S. treasury securities
|
| | | | 11,659 | | | | | | 23 | | | | | | — | | | | | | 11,682 | | |
Commercial paper
|
| | | | 6,273 | | | | | | — | | | | | | — | | | | | | 6,273 | | |
Asset backed securities
|
| | | | 6,495 | | | | | | 8 | | | | | | — | | | | | | 6,503 | | |
Total marketable securities – restricted
|
| | | $ | 36,908 | | | | | $ | 55 | | | | | $ | — | | | | | $ | 36,963 | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
|
Amortized
Cost |
| |
Unrealized
Gain |
| |
Unrealized
Loss |
| |
Estimated
Fair Value |
| ||||||||||||||
Marketable securities – restricted | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities
|
| | | $ | 5,938 | | | | | $ | 17 | | | | | $ | — | | | | | $ | 5,955 | | |
U.S. treasury securities
|
| | | | 6,994 | | | | | | — | | | | | | — | | | | | | 6,994 | | |
Commercial paper
|
| | | | 8,791 | | | | | | — | | | | | | — | | | | | | 8,791 | | |
Asset backed securities
|
| | | | 2,911 | | | | | | — | | | | | | — | | | | | | 2,911 | | |
Total marketable securities – restricted
|
| | | $ | 24,634 | | | | | $ | 17 | | | | | $ | — | | | | | $ | 24,651 | | |
| | | | ||||||||||
|
Amortized
Cost |
| |
Estimated
Fair Value |
| ||||||||
Due within one year
|
| | | $ | 44,057 | | | | | $ | 44,105 | | |
Due between one to five years
|
| | | | 2,198 | | | | | | 2,210 | | |
| | | | $ | 46,255 | | | | | $ | 46,315 | | |
| | | | ||||||||||
|
Amortized
Cost |
| |
Estimated
Fair Value |
| ||||||||
Due within one year
|
| | | $ | 21,603 | | | | | $ | 21,629 | | |
Due between one to five years
|
| | | | 3,031 | | | | | | 3,022 | | |
| | | | $ | 24,634 | | | | | $ | 24,651 | | |
| | | | ||||||||||
| | |
2020
|
| |||||||||
Telematics devices
|
| | | $ | 14,061 | | | | | $ | 14,018 | | |
Equipment
|
| | | | 2,102 | | | | | | 2,677 | | |
Leasehold improvements
|
| | | | 2,785 | | | | | | 7,324 | | |
Property and equipment, gross
|
| | | | 18,948 | | | | | | 24,019 | | |
Less accumulated depreciation and amortization
|
| | | | (8,378) | | | | | | (11,303) | | |
Telematics devices, improvements, and equipment, net
|
| | | $ | 10,570 | | | | | $ | 12,716 | | |
| | | | ||||||||||
| | |
2020
|
| |||||||||
Capitalized website and software development costs
|
| | | $ | 51,370 | | | | | $ | 64,478 | | |
Less accumulated amortization
|
| | | | (34,889) | | | | | | (46,077) | | |
Capitalized website and software development costs, net
|
| | | $ | 16,481 | | | | | $ | 18,401 | | |
| | | | ||||||||||
| | |
2020
|
| |||||||||
Deferred policy acquisition costs
|
| | | $ | 9,731 | | | | | $ | 10,511 | | |
Less deferred ceding commission
|
| | | | (1,242) | | | | | | (1,202) | | |
Less accumulated amortization
|
| | | | (7,068) | | | | | | (8,653) | | |
| | | | ||||||||||
| | |
2020
|
| |||||||||
Deferred policy acquisition costs, net
|
| | | $ | 1,421 | | | | | $ | 656 | | |
|
| | | | ||||||||||
| | |
2020
|
| |||||||||
Balance at January 1
|
| | | $ | 41,185 | | | | | $ | 52,222 | | |
Less reinsurance recoverable
|
| | | | (17,643) | | | | | | (28,837) | | |
Net balance at January 1
|
| | | | 23,542 | | | | | | 23,385 | | |
Incurred related to: | | | | | | | | | | | | | |
Current year
|
| | | | 31,706 | | | | | | 16,140 | | |
Prior years
|
| | | | (1,082) | | | | | | 4,793 | | |
Total incurred
|
| | | | 30,622 | | | | | | 20,933 | | |
Paid related to: | | | | | | | | | | | | | |
Current year
|
| | | | 17,032 | | | | | | 6,425 | | |
Prior years
|
| | | | 13,747 | | | | | | 14,741 | | |
Total paid
|
| | | | 30,779 | | | | | | 21,166 | | |
Net balance at end of period
|
| | | | 23,385 | | | | | | 23,152 | | |
Plus reinsurance recoverable
|
| | | | 28,837 | | | | | | 33,941 | | |
Balance at end of period
|
| | | $ | 52,222 | | | | | $ | 57,093 | | |
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Years
|
| | | | 1 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | 5 | | | | | | 6 | | | | | | 7 | | | | | | 8 | | | | | | 9 | | | | | | 10 | | |
|
Automobile
|
| | | | 47% | | | | | | 28% | | | | | | 11% | | | | | | 9% | | | | | | 3% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accident
Year |
| |
Automobile
|
| |
As of December 31, 2020
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Incurred loss and loss adjustment expenses,
net of reinsurance For the Years Ended December 31, |
| |
Total of
IBNR Liabilities Plus Expected Development on Reported |
| |
Cumulative
Number of Reported |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
2011*
|
| |
2012*
|
| |
2013*
|
| |
2014*
|
| |
2015*
|
| |
2016*
|
| |
2017*
|
| |
2018*
|
| |
2019*
|
| |
2020
|
| |
Claims
|
| |
Claims
|
| ||||||||||||||||||||||||||||||||||||||
2011
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | — | | |
2012
|
| | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
2013
|
| | | | | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
2014
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
2015
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
2016
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,530 | | | | | | 3,107 | | | | | | 2,818 | | | | | | 3,030 | | | | | | 3,215 | | | | | | 29 | | | | | | 1,633 | | |
2017
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 34,309 | | | | | | 36,244 | | | | | | 36,326 | | | | | | 37,529 | | | | | | 793 | | | | | | 29,121 | | |
2018
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 37,879 | | | | | | 36,501 | | | | | | 38,657 | | | | | | 2,448 | | | | | | 44,090 | | |
2019
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31,705 | | | | | | 32,954 | | | | | | 5,220 | | | | | | 51,016 | | |
2020
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16,140 | | | | | | 7,469 | | | | | | 36,291 | | |
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 128,495 | | | | | | | | | | | | | | |
Accident Year
|
| |
Automobile
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Cumulative paid loss and loss adjustment expenses, net of reinsurance
For the Years Ended December 31, |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
2011*
|
| |
2012*
|
| |
2013*
|
| |
2014*
|
| |
2015*
|
| |
2016*
|
| |
2017*
|
| |
2018*
|
| |
2019*
|
| |
2020
|
| ||||||||||||||||||||||||||||||||
2011
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
2012
|
| | | | | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accident Year
|
| |
Automobile
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
|
Cumulative paid loss and loss adjustment expenses, net of reinsurance
For the Years Ended December 31, |
| ||||||||||||||||||||||||||||||||||||||||||||||||||
|
2011*
|
| |
2012*
|
| |
2013*
|
| |
2014*
|
| |
2015*
|
| |
2016*
|
| |
2017*
|
| |
2018*
|
| |
2019*
|
| |
2020
|
| |||||||||||||||||||||||
2013
|
| | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
2014
|
| | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
2015
|
| | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
2016
|
| | | | | | | | | | | | | | | | | | | | | | | | | 1038 | | | | | | 2,254 | | | | | | 2,640 | | | | | | 3,004 | | | | | | 3,096 | | |
2017
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21,246 | | | | | | 29,988 | | | | | | 33,987 | | | | | | 36,121 | | |
2018
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20,771 | | | | | | 30,154 | | | | | | 34,465 | | |
2019
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 17,032 | | | | | | 25,235 | | |
2020
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 6,426 | | |
Total
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 105,343 | | |
All outstanding liabilities before 2011, net of reinsurance
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | |
Liabilities for loss and
LAE, net of reinsurance |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 23,152 | | |
|
|
Total incurred losses and loss adjustment expenses, net of reinsurance
|
| | | $ | 128,495 | | |
|
Total paid losses and loss adjustment expenses, net of reinsurance
|
| | | | (105,343) | | |
|
Liabilities for loss and LAE, net of reinsurance
|
| | | | 23,152 | | |
|
Reinsurance recoverable on losses and LAE
|
| | | | 33,941 | | |
|
Loss and loss adjustment expense reserves, gross of reinsurance
|
| | | $ | 57,093 | | |
| | | | ||||||||||||||||||||||||||||
|
Premium
Written |
| |
Premium
Earned |
| |
Unearned
Premium |
| |
Losses and
LAE Incurred |
| |
Loss and
LAE Reserves |
| |||||||||||||||||
Direct
|
| | | $ | 103,280 | | | | | $ | 102,238 | | | | | $ | 15,171 | | | | | $ | 87,359 | | | | | $ | 52,222 | | |
Ceded
|
| | | | (79,678) | | | | | | (75,608) | | | | | | (12,904) | | | | | | (56,736) | | | | | | (28,837) | | |
Net
|
| | | $ | 23,602 | | | | | $ | 26,630 | | | | | $ | 2,267 | | | | | $ | 30,623 | | | | | $ | 23,385 | | |
| | | | ||||||||||||||||||||||||||||
|
Premium
Written |
| |
Premium
Earned |
| |
Unearned
Premium |
| |
Losses and
LAE Incurred |
| |
Loss and
LAE Reserves |
| |||||||||||||||||
Direct
|
| | | $ | 100,611 | | | | | $ | 99,712 | | | | | $ | 16,070 | | | | | $ | 74,943 | | | | | $ | 57,093 | | |
Ceded
|
| | | | (85,504) | | | | | | (84,740) | | | | | $ | (13,668) | | | | | | (54,010) | | | | | | (33,941) | | |
Net
|
| | | $ | 15,107 | | | | | $ | 14,972 | | | | | $ | 2,402 | | | | | $ | 20,933 | | | | | $ | 23,152 | | |
| | | | ||||||||||
| | |
2020
|
| |||||||||
2019 Loan and Security Agreement
|
| | | | 25,000 | | | | | | 25,000 | | |
Subordinated Note Purchase and Security Agreement
|
| | | | — | | | | | | 32,461 | | |
Paycheck Protection Program Loan
|
| | | | — | | | | | | 5,880 | | |
Principal Amount Due
|
| | | | 25,000 | | | | | | 63,341 | | |
Less: Unamortized debt issuance costs and discounts
|
| | | | (898) | | | | | | (11,407) | | |
Notes payable, net
|
| | | $ | 24,102 | | | | | $ | 51,934 | | |
Year Ended December 31,
|
| |
Amount
|
| |||
2021
|
| | | $ | 1,307 | | |
2022
|
| | | | 14,573 | | |
2023
|
| | | | 10,000 | | |
2024
|
| | | | 5,000 | | |
2025
|
| | | | 32,461 | | |
Thereafter
|
| | | | — | | |
Total minimum principal payments
|
| | | $ | 63,341 | | |
Year Ended December 31,
|
| |
Purchase
Obligations |
| |
Leases
|
| |
Total
|
| |||||||||
2021
|
| | | $ | 3,949 | | | | | $ | 3,276 | | | | | $ | 7,225 | | |
2022
|
| | | | — | | | | | | 3,093 | | | | | | 3,093 | | |
2023
|
| | | | — | | | | | | 3,181 | | | | | | 3,181 | | |
2024
|
| | | | — | | | | | | 3,190 | | | | | | 3,190 | | |
2025
|
| | | | — | | | | | | 2,433 | | | | | | 2,433 | | |
Thereafter
|
| | | | — | | | | | | 11,186 | | | | | | 11,186 | | |
Total minimum lease payments
|
| | | $ | 3,949 | | | | | $ | 26,359 | | | | | $ | 30,308 | | |
Series
|
| | | ||||||||||||||||||||||
|
Number of Shares
|
| |
Aggregate
Balance |
| |
Aggregate
Liquidation Preference |
| |||||||||||||||||
|
Authorized
|
| |
Issued and
Outstanding |
| ||||||||||||||||||||
Series A Senior
|
| | | | 7,260,666 | | | | | | 6,939,098 | | | | | $ | 4,032 | | | | | $ | 4,100 | | |
Series B Senior
|
| | | | 5,805,056 | | | | | | 5,805,057 | | | | | | 9,949 | | | | | | 10,000 | | |
Series C Senior
|
| | | | 9,304,900 | | | | | | 9,224,670 | | | | | | 39,613 | | | | | | 39,840 | | |
Series D Senior
|
| | | | 19,371,524 | | | | | | 18,915,820 | | | | | | 93,727 | | | | | | 96,023 | | |
Series E Senior
|
| | | | 23,850,034 | | | | | | 14,787,031 | | | | | | 90,468 | | | | | | 93,001 | | |
Series E-1 Senior (non-voting)
|
| | | | 11,412,474 | | | | | | 11,412,474 | | | | | | 57,933 | | | | | | 57,933 | | |
Junior Preferred
|
| | | | 1,692,464 | | | | | | 1,692,464 | | | | | | 1,479 | | | | | | 1,500 | | |
| | | | | 78,697,118 | | | | | | 68,776,614 | | | | | $ | 297,201 | | | | | $ | 302,397 | | |
Common stock: | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares
|
| | | | 97,485,929 | | | | | | 8,865,933 | | | | | | | | | | | | | | |
Less shares subject to restriction
|
| | | | — | | | | | | (423) | | | | | | | | | | | | | | |
Total
|
| | | | 97,485,929 | | | | | | 8,865,510 | | | | | | | | | | | | | | |
Series
|
| | | ||||||||||||||||||||||
|
Number of Shares
|
| |
Aggregate
Balance |
| |
Aggregate
Liquidation Preference |
| |||||||||||||||||
|
Authorized
|
| |
Issued and
Outstanding |
| ||||||||||||||||||||
Series A Senior
|
| | | | 7,260,666 | | | | | | 6,939,098 | | | | | $ | 4,032 | | | | | $ | 4,100 | | |
Series B Senior
|
| | | | 5,805,056 | | | | | | 5,805,057 | | | | | $ | 9,949 | | | | | $ | 10,000 | | |
Series C Senior
|
| | | | 9,304,900 | | | | | | 9,224,670 | | | | | $ | 39,613 | | | | | $ | 39,840 | | |
Series D Senior
|
| | | | 30,449,674 | | | | | | 25,209,401 | | | | | $ | 125,675 | | | | | $ | 127,971 | | |
Series E Senior
|
| | | | 23,850,034 | | | | | | 14,787,031 | | | | | $ | 90,468 | | | | | $ | 93,001 | | |
Series E-1 Senior (non-voting)
|
| | | | 11,412,474 | | | | | | 5,118,893 | | | | | $ | 25,985 | | | | | $ | 25,985 | | |
Junior Preferred
|
| | | | 1,692,464 | | | | | | 1,692,464 | | | | | $ | 1,479 | | | | | $ | 1,500 | | |
| | | | | 89,775,268 | | | | | | 68,776,614 | | | | | $ | 297,201 | | | | | $ | 302,397 | | |
Common stock
|
| | | | 111,702,628 | | | | | | 8,992,463 | | | | | | | | | | | | | | |
Shares Subject to
Warrants |
| |
Issue Date
|
| |
Underlying
Security |
| |
Reason
for Grant |
| |
Warrants
Outstanding |
| |
Exercise Price
per Share |
| |
Expiration
|
| ||||||
Series A Preferred
|
| | | |
Series A
Preferred |
| |
Financing
|
| | | | 321,568 | | | | | $ | 0.5909 | | | |
5 years post IPO
|
| |
Common
|
| | July 30, 2015 | | |
Common
Stock |
| |
Services
|
| | | | 77,176 | | | | | $ | 0.8567 | | | | | |
Series C Preferred
|
| | | |
Series C
Preferred |
| |
Financing
|
| | | | 80,229 | | | | | $ | 4.3189 | | | | | ||
Series D Preferred
|
| | July 16, 2018 | | |
Series D
Preferred |
| |
Financing
|
| | | | 114,241 | | | | | $ | 5.0763 | | | | | |
Series D Preferred
|
| | | |
Series D
Preferred |
| |
Financing
|
| | | | 7,139 | | | | | $ | 5.0763 | | | | | ||
Series E Preferred
|
| | | |
Series E
Preferred |
| |
Financing
|
| | | | 346,762 | | | | | $ | 6.2894 | | | | |
Shares Subject to
Warrants |
| |
Issue Date
|
| |
Underlying
Security |
| |
Reason
for Grant |
| |
Warrants Outstanding
|
| |
Exercise Price
per Share |
| |
Expiration
|
| ||||||
Series A Preferred
|
| | | |
Series A Preferred
|
| |
Financing
|
| | | | 321,568 | | | | | $ | 0.5909 | | | |
5 years post IPO
|
| |
Series C Preferred
|
| | | |
Series C Preferred
|
| |
Financing
|
| | | | 80,229 | | | | | $ | 4.3189 | | | | | ||
Series D Preferred
|
| | July 16, 2018 | | |
Series D Preferred
|
| |
Financing
|
| | | | 114,241 | | | | | $ | 5.0763 | | | | | |
Series D Preferred
|
| | | |
Series D Preferred
|
| |
Financing
|
| | | | 7,139 | | | | | $ | 5.0763 | | | | | ||
Series E Preferred
|
| | December 5, 2019 | | |
Series E Preferred
|
| |
Financing
|
| | | | 346,762 | | | | | $ | 6.2894 | | | | | |
Series E Preferred
|
| | July 29, 2020 | | |
Series E Preferred
|
| |
Financing
|
| | | | 8,669,076 | | | | | $ | 6.2894 | | | | | |
Series E Preferred
|
| | | |
Series E Preferred
|
| |
Other
|
| | | | 35,541 | | | | | $ | 8.6560 | | | | |
| | |
Years ended December 31,
|
| |||
| | |
2020
|
| |||
Forfeiture rate
|
| |
15.77% – 19.76%
|
| |
19.62% – 25.76%
|
|
Volatility
|
| |
45.00%
|
| |
47.00% – 62.00%
|
|
Expected term (years)
|
| |
6.02 – 6.08
|
| |
4.95 – 7.00
|
|
Risk-free interest rate
|
| |
1.39% – 2.49%
|
| |
0.26% – 1.73%
|
|
Expected dividends
|
| |
—
|
| |
—
|
|
| | |
Stock
Number of Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value (in thousands) |
| ||||||||||||
Outstanding as of December 31, 2018
|
| | | | 5,785,513 | | | | | | | | | | | | | | | | | | | | |
Options granted
|
| | | | 2,336,057 | | | | | $ | 2.95 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (810,312) | | | | | $ | 1.69 | | | | | | | | | | | | | | |
Options cancelled or expired and returned to plan
|
| | | | (1,729,479) | | | | | $ | 2.35 | | | | | | | | | | | | | | |
Outstanding as of December 31, 2019
|
| | | | 5,581,779 | | | | | $ | 2.34 | | | | | | 7.97 | | | | | $ | 6,642 | | |
Options granted
|
| | | | 3,336,116 | | | | | $ | 3.13 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (126,529) | | | | | $ | 1.91 | | | | | | | | | | | | | | |
Options cancelled or expired and returned to plan
|
| | | | (2,860,342) | | | | | $ | 2.73 | | | | | | | | | | | | | | |
Outstanding as of December 31, 2020
|
| | | | 5,931,024 | | | | | $ | 2.61 | | | | | | 8.10 | | | | | $ | 70,192 | | |
Vested and expected to vest as of December 31, 2019
|
| | | | 4,763,448 | | | | | $ | 2.29 | | | | | | 7.99 | | | | | $ | 5,968 | | |
Vested and exercisable as of December 31, 2019
|
| | | | 5,581,748 | | | | | $ | 2.34 | | | | | | 7.96 | | | | | $ | 6,403 | | |
Vested and expected to vest as of December 31, 2020
|
| | | | 4,512,737 | | | | | $ | 2.45 | | | | | | 7.55 | | | | | $ | 52,705 | | |
Vested and exercisable as of December 31, 2020
|
| | | | 2,194,860 | | | | | $ | 2.00 | | | | | | 6.38 | | | | | $ | 27,324 | | |
| | | | ||||||||||
|
2019
|
| |
2020
|
| ||||||||
Cost of revenues
|
| | | $ | 56 | | | | | $ | 104 | | |
Research and development
|
| | | | 525 | | | | | | 714 | | |
Sales and marketing
|
| | | | 115 | | | | | | 44 | | |
Other operating expenses
|
| | | | 731 | | | | | | 595 | | |
Total stock-based compensation
|
| | | $ | 1,427 | | | | | $ | 1,457 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |||||||||
Current
|
| | | $ | — | | | | | $ | — | | |
Deferred
|
| | | | 37 | | | | | | (84) | | |
Income tax expense (benefit)
|
| | | $ | 37 | | | | | $ | (84) | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |||||||||
Statutory tax expense (benefit)
|
| | | $ | (12,001) | | | | | $ | (25,241) | | |
Warrants – mark to market
|
| | | | 19 | | | | | | 14,552 | | |
Research and development
|
| | | | (1,530) | | | | | | (1,170) | | |
Change in valuation allowance
|
| | | | 13,488 | | | | | | 11,435 | | |
Other, net
|
| | | | 61 | | | | | | 340 | | |
Income tax expense (benefit)
|
| | | $ | 37 | | | | | $ | (84) | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |||||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards
|
| | | $ | 61,824 | | | | | $ | 73,364 | | |
Tax credit forwards
|
| | | | 3,704 | | | | | | 4,780 | | |
Unearned premium reserves
|
| | | | 97 | | | | | | 103 | | |
Discounting of unpaid losses
|
| | | | 155 | | | | | | 167 | | |
Stock compensation
|
| | | | 395 | | | | | | 501 | | |
Other
|
| | | | — | | | | | | 1,048 | | |
Total deferred tax assets
|
| | | | 66,175 | | | | | | 79,963 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Depreciation & Amortization
|
| | | | (3,914) | | | | | | (3,691) | | |
Other
|
| | | | (185) | | | | | | — | | |
Total deferred tax liabilities
|
| | | | (4,099) | | | | | | (3,691) | | |
Net deferred tax assets
|
| | | | 62,076 | | | | | | 76,272 | | |
Less valuation allowance
|
| | | | (62,160) | | | | | | (76,272) | | |
Balance end of year
|
| | | $ | (84) | | | | | $ | — | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2020
|
| |||||||||
Gross unrecognized tax benefit, beginning of the year
|
| | | $ | 854 | | | | | $ | 1,364 | | |
Increases related to tax positions taken during current year
|
| | | | 510 | | | | | | 390 | | |
Gross unrecognized tax benefit, ending balance
|
| | | $ | 1,364 | | | | | $ | 1,754 | | |
| | |
Years Ended
December 31, |
| |||||||||
| | |
2020
|
| |||||||||
Revenue: | | | | | | | | | | | | | |
Insurance services
|
| | | $ | 51,955 | | | | | $ | 29,395 | | |
Enterprise business solutions
|
| | | | 800 | | | | | | 5,669 | | |
Total revenue
|
| | | $ | 52,755 | | | | | $ | 35,064 | | |
Contribution: | | | | | | | | | | | | | |
Insurance services
|
| | | $ | 1,545 | | | | | $ | 11,914 | | |
Enterprise business solutions
|
| | | | (2,817) | | | | | | (563) | | |
Total contribution
|
| | | $ | (1,272) | | | | | $ | 11,351 | | |
| | |
Years Ended
December 31, |
| |||||||||
| | |
2020
|
| |||||||||
Total segment contribution
|
| | | $ | (1,272) | | | | | $ | 11,351 | | |
Ceded premium, losses and LAE
|
| | | | (7,304) | | | | | | 15,443 | | |
Other income
|
| | | | 1,849 | | | | | | 2,421 | | |
Policy services expenses and other
|
| | | | 2,100 | | | | | | 2,676 | | |
Sales, marketing, and other acquisition costs
|
| | | | 23,553 | | | | | | 5,029 | | |
Research and development
|
| | | | 5,839 | | | | | | 2,433 | | |
Amortization of capitalized software
|
| | | | 10,648 | | | | | | 11,188 | | |
Other operating expenses
|
| | | | 18,896 | | | | | | 16,981 | | |
Loss from operations
|
| | | $ | (56,853) | | | | | $ | (44,820) | | |
| | |
Years Ended
December 31, |
| |||||||||
| | |
2020
|
| |||||||||
California
|
| | | $ | 59,287 | | | | | $ | 58,276 | | |
Washington
|
| | | | 10,765 | | | | | | 11,391 | | |
New Jersey
|
| | | | 10,353 | | | | | | 9,155 | | |
Oregon
|
| | | | 8,066 | | | | | | 7,232 | | |
Illinois
|
| | | | 5,168 | | | | | | 4,474 | | |
Arizona
|
| | | | 3,304 | | | | | | 4,527 | | |
Pennsylvania
|
| | | | 3,418 | | | | | | 2,932 | | |
Virginia
|
| | | | 1,877 | | | | | | 1,725 | | |
Total premiums earned
|
| | | $ | 102,238 | | | | | $ | 99,712 | | |
| | |
Years Ended
December 31 |
| |||||||||
|
2019
|
| |
2020
|
| ||||||||
Statutory capital and surplus
|
| | | $ | 25,076 | | | | | $ | 22,453 | | |
Statutory net loss
|
| | | $ | (3,595) | | | | | $ | (2,078) | | |
| | |
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| Exhibit A | | | Certain Definitions | |
| Exhibit B | | | Form of Certificate of Formation of the Surviving Company | |
| Exhibit C | | | Form of Limited Liability Company Agreement of the Surviving Company | |
| Exhibit D | | | Voting and Support Agreement | |
| | | | By: | | |
/s/ Daniel Schreiber
|
|
| | | | Name: | | | Daniel Schreiber | |
| | | | Title: | | | Chief Executive Officer | |
| | | | By: | | |
/s/ Shai Wininger
|
|
| | | | Name: | | | Shai Wininger | |
| | | | Title: | | | Chief Executive Officer | |
| | | | By: | | |
/s/ Daniel Schreiber
|
|
| | | | Name: | | | Daniel Schreiber | |
| | | | Title: | | | President | |
| | | | By: | | |
/s/ Shai Wininger
|
|
| | | | Name: | | | Shai Wininger | |
| | | | Title: | | | Secretary | |
| | | | By: | | |
/s/ Daniel Schreiber
|
|
| | | | Name: | | | Daniel Schreiber | |
| | | | Title: | | | President | |
| | | | By: | | |
/s/ Shai Wininger
|
|
| | | | Name: | | | Shai Wininger | |
| | | | Title: | | | Secretary | |
| | | | By: | | |
/s/ Dan Preston
|
|
| | | | Name: | | | Dan Preston | |
| | | | Title: | | | Chief Executive Officer | |
| | | | LEMONADE, INC. | |
| | | |
By:
|
|
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Name: Daniel Schreiber
Title: Chief Executive Officer |
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By:
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Name: Shai Wininger
Title: Chief Executive Officer |
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| | | | [STOCKHOLDER] | |
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By:
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Name:
Title: |
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| Dated: | | |
Print Name:
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Exhibit
Number |
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Description
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| 2.1*† | | | Agreement and Plan of Merger, dated as of November 8, 2021, by and among Lemonade, Inc., Metromile, Inc., Citrus Merger Sub A, Inc., a wholly owned subsidiary of Lemonade, Inc. and Citrus Merger Sub B, LLC, a wholly owned subsidiary of Lemonade, Inc. (included as Annex A to the proxy statement/prospectus forming a part of this registration statement) | |
| 3.1* | | | | |
| 3.2* | | | | |
| 4.1* | | | | |
| 4.2* | | | | |
| 5.1 | | | | |
| 10.1* | | | | |
| 10.2* | | | | |
| 10.3* | | | | |
| 10.4* | | | | |
| 10.5* | | | | |
| 10.6* | | | |
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Exhibit
Number |
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Description
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| 10.7* | | | | |
| 10.8* | | | | |
| 10.9* | | | | |
| 10.10* | | | | |
| 10.11* | | | | |
| 10.12* | | | | |
| 10.13* | | | | |
| 10.14* | | | | |
| 10.15* | | | | |
| 10.16* | | | | |
| 21.1* | | | | |
| 23.1 | | | Consent of Ernst & Young LLP, independent registered public accounting firm of Lemonade, Inc. | |
| 23.2 | | | | |
| 23.3 | | | | |
| 24.1* | | | | |
| 99.1* | | | | |
| 99.2* | | | |
| | | | Lemonade, Inc. | | |||
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By:
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/s/ Daniel Schreiber
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Name:
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Title:
Co-Chief Executive Officer
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By:
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/s/ Tim Bixby
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Name:
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Title:
Chief Financial Officer
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Signature
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Title
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Date
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/s/ Daniel Schreiber
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Co-Chief Executive Officer (Principal Executive Officer) and Chairman of the Board of Directors
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/s/ Shai Wininger
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Co-Chief Executive Officer
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/s/ Tim Bixby
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Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
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*
Joel Cutler
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Director
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*
Michael Eisenberg
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Director
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*
Silvija Martincevic
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Director
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*
Irina Novoselsky
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Director
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*
Mwashuma Nyatta
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Director
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*
Caryn Seidman-Becker
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Director
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| By: | | | /s/ Daniel Schreiber | |
| | | | Name: Daniel Schreiber | |
| | | | Title: Co-Chief Executive Officer | |
This ‘S-4/A’ Filing | Date | Other Filings | ||
---|---|---|---|---|
1/11/36 | ||||
9/1/35 | ||||
12/31/31 | ||||
7/29/30 | ||||
1/1/30 | ||||
12/31/29 | ||||
12/31/25 | ||||
12/14/25 | ||||
12/12/25 | ||||
11/18/25 | ||||
9/8/25 | ||||
6/30/25 | ||||
6/5/24 | ||||
6/30/23 | ||||
2/9/23 | ||||
1/1/23 | ||||
12/31/22 | ||||
12/15/22 | ||||
11/8/22 | ||||
8/8/22 | ||||
1/1/22 | ||||
12/31/21 | 10-K | |||
Filed as of: | 12/28/21 | |||
Filed on: | 12/27/21 | CORRESP | ||
12/23/21 | ||||
12/21/21 | ||||
12/15/21 | ||||
12/14/21 | S-4 | |||
12/13/21 | ||||
12/10/21 | ||||
12/8/21 | 4 | |||
12/6/21 | 4 | |||
12/3/21 | ||||
11/18/21 | ||||
11/9/21 | 10-Q, 8-K | |||
11/8/21 | 8-K | |||
11/7/21 | ||||
11/6/21 | ||||
11/5/21 | 4 | |||
11/4/21 | ||||
11/3/21 | 4 | |||
11/2/21 | ||||
11/1/21 | 4 | |||
10/29/21 | ||||
10/27/21 | ||||
10/26/21 | ||||
10/25/21 | ||||
10/21/21 | ||||
10/19/21 | ||||
10/18/21 | 4 | |||
10/14/21 | ||||
10/13/21 | ||||
10/10/21 | ||||
10/8/21 | ||||
10/7/21 | ||||
10/6/21 | ||||
10/5/21 | ||||
10/4/21 | ||||
10/3/21 | ||||
10/2/21 | ||||
10/1/21 | ||||
9/30/21 | 10-Q | |||
9/29/21 | ||||
9/28/21 | ||||
9/27/21 | ||||
9/23/21 | ||||
9/21/21 | ||||
9/19/21 | ||||
9/18/21 | ||||
9/14/21 | ||||
9/13/21 | 4 | |||
9/9/21 | ||||
9/8/21 | ||||
9/6/21 | ||||
9/2/21 | ||||
9/1/21 | 4 | |||
8/31/21 | ||||
8/27/21 | ||||
8/26/21 | ||||
8/24/21 | ||||
8/23/21 | ||||
8/20/21 | ||||
8/19/21 | ||||
8/17/21 | ||||
8/16/21 | ||||
8/13/21 | ||||
8/12/21 | ||||
8/11/21 | 10-Q | |||
8/10/21 | ||||
8/9/21 | ||||
8/6/21 | ||||
8/5/21 | ||||
7/28/21 | ||||
6/30/21 | 10-Q | |||
6/2/21 | 4 | |||
5/17/21 | ||||
5/1/21 | ||||
4/30/21 | DEF 14A, DEFA14A | |||
3/31/21 | 10-Q | |||
3/30/21 | ||||
3/8/21 | 10-K, S-8 | |||
2/28/21 | ||||
2/16/21 | 4, SC 13G | |||
2/12/21 | SC 13G | |||
2/9/21 | ||||
2/8/21 | ||||
2/1/21 | ||||
1/31/21 | ||||
1/28/21 | SC 13G | |||
1/26/21 | ||||
1/21/21 | 4 | |||
1/19/21 | 4 | |||
1/14/21 | 424B4, EFFECT | |||
1/13/21 | EFFECT, S-1MEF | |||
1/12/21 | ||||
1/11/21 | CORRESP, DRS, S-1 | |||
1/1/21 | ||||
12/31/20 | 10-K, DRS, DRSLTR | |||
12/30/20 | ||||
12/27/20 | ||||
12/15/20 | ||||
11/24/20 | 4 | |||
11/16/20 | 4 | |||
11/3/20 | ||||
9/30/20 | 10-Q | |||
9/8/20 | ||||
9/2/20 | ||||
7/30/20 | ||||
7/29/20 | ||||
7/23/20 | ||||
7/16/20 | ||||
7/7/20 | 4, 8-K | |||
7/2/20 | 3, 424B4, 8-A12B, CERT, EFFECT, S-8 | |||
7/1/20 | EFFECT, S-1/A | |||
6/30/20 | 10-Q, CORRESP, S-1/A, UPLOAD | |||
6/8/20 | CORRESP, DRS, DRS/A, S-1 | |||
5/1/20 | ||||
4/30/20 | ||||
3/31/20 | ||||
3/27/20 | ||||
3/12/20 | ||||
2/18/20 | ||||
1/1/20 | ||||
12/31/19 | ||||
12/15/19 | ||||
12/5/19 | ||||
9/4/19 | ||||
5/1/19 | ||||
4/30/19 | ||||
3/18/19 | ||||
1/22/19 | ||||
1/1/19 | ||||
12/31/18 | ||||
12/12/18 | ||||
12/3/18 | ||||
10/11/18 | ||||
7/16/18 | ||||
5/1/18 | ||||
4/30/18 | ||||
12/31/17 | ||||
10/24/17 | ||||
5/1/17 | ||||
1/1/17 | ||||
12/31/16 | ||||
12/14/15 | ||||
7/30/15 | ||||
6/17/15 | ||||
1/1/13 | ||||
9/7/12 | ||||
12/31/11 | ||||
1/14/11 | ||||
1/1/11 | ||||
3/12/01 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 12/14/21 Lemonade, Inc. S-4 180:31M Toppan Merrill/FA 11/09/21 Lemonade, Inc. 10-Q 9/30/21 77:8.6M 11/09/21 Lemonade, Inc. 8-K:1,2,7,911/08/21 13:9.5M 8/11/21 Lemonade, Inc. 10-Q 6/30/21 75:6.8M 7/26/21 Lemonade, Inc. 8-K:5 7/21/21 10:174K 6/14/21 Lemonade, Inc. 8-K:5,9 6/09/21 10:183K 5/12/21 Lemonade, Inc. 10-Q 3/31/21 69:5.7M 4/30/21 Lemonade, Inc. DEF 14A 4/30/21 1:1.2M 4/26/21 Lemonade, Inc. 8-K:5 4/21/21 12:181K 3/08/21 Lemonade, Inc. 10-K 12/31/20 110:16M 7/10/20 Lemonade, Inc. 8-K:5,9 7/07/20 3:278K Toppan Merrill/FA 6/23/20 Lemonade, Inc. S-1/A 20:9M Toppan Merrill-FA 6/08/20 Lemonade, Inc. S-1 18:7.2M Toppan Merrill-FA |