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Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2022
Schedule I: Condensed Financial Information of Registrant |
Schedule I: Condensed Financial Information of Registrant | Schedule I: Condensed Financial Information of Registrant Porch Group, Inc. Condensed Balance Sheets (Parent Company Only) (all numbers in thousands, except share amounts)
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31,
​ |  | 2022 |  | 2021
Assets |  | ​ |  | ​ |
Investment in subsidiary | ​ | $ | 497,535 | ​ | $ | 661,619
Total assets | ​ | $ | 497,535 | ​ | $ | 661,619
​ | ​ |  |  | ​ |  |
Liabilities and Stockholders’ Equity | ​ |  |  | ​ |  |
Current liabilities | ​ |  |  | ​ |  |
Accrued expenses and other current liabilities | ​ |  | 939 | ​ |  | 930
Total current liabilities | ​ |  | 939 | ​ |  | 930
Long-term debt | ​ |  | 416,492 | ​ |  | 414,585
Earnout liability, at fair value1 | ​ | ​ | 44 | ​ | ​ | 13,866
Private warrant liability, at fair value2 | ​ | ​ | 707 | ​ | ​ | 15,193
Total liabilities | ​ |  | 418,182 | ​ |  | 444,574
Commitments and contingencies3 | ​ |  |  | ​ |  |
Stockholders’ equity | ​ |  |  | ​ |  |
Common stock, $0.0001 par value: | ​ |  | 10 | ​ |  | 10
Authorized shares – 400,000,000 and 400,000,000, respectively | ​ |  |  | ​ |  |
Issued and outstanding shares – 98,455,838 and 97,961,597, respectively | ​ | ​ | ​ | ​ | ​ | ​
Additional paid-in capital | ​ |  | 670,537 | ​ |  | 641,406
Accumulated other comprehensive loss | ​ | ​ | (6,171) | ​ | ​ | (259)
Accumulated deficit | ​ |  | (585,023) | ​ |  | (424,112)
Total stockholders’ equity | ​ |  | 79,353 | ​ |  | 217,045
Total liabilities and stockholders’ equity | ​ | $ | 497,535 | ​ | $ | 661,619
​ 1 – See Note 4 (Fair Value) and Note 9 (Stock-Based Compensation) in the notes to the accompanying consolidated financial statements included in Item 8 of this Annual Report. 2 - See Note 4 (Fair Value) and Note 8 (Equity and Warrants) in the notes to the accompanying consolidated financial statements included in Item 8 of this Annual Report. 3 - See Note 16 (Commitments and Contingencies) in the notes to the accompanying consolidated financial statements included in Item 8 of this Annual Report. ​ ​ See notes to condensed financial statements. ​ Porch Group, Inc. Condensed Statements of Comprehensive Loss (Parent Company Only) (all numbers in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ |  | For the period from
​ | ​ | Year ended December 31, | ​ | December 23, 2020
​ | ​ | 2022 | ​ | 2021 |  | to December 31, 2020
Operating expenses: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
General and administrative | ​ | $ | 3,550 | ​ | $ | 4,079 | ​ | $ | 56
Operating loss | ​ |  | (3,550) | ​ |  | (4,079) | ​ |  | (56)
Other income (expense): | ​ |  |  | ​ |  |  | ​ |  |
Interest expense | ​ |  | (5,412) | ​ |  | (1,573) | ​ |  | —
Change in fair value of earnout liability1 | ​ | ​ | 13,822 | ​ | ​ | (18,519) | ​ | ​ | —
Change in fair value of private warrant liability1 | ​ | ​ | 14,486 | ​ | ​ | (15,389) | ​ | ​ | 2,427
Equity in net income (loss) of subsidiary | ​ | ​ | (175,905) | ​ | ​ | (67,046) | ​ | ​ | 1,360
Total other income (expense) | ​ |  | (153,009) | ​ |  | (102,527) | ​ |  | 3,787
Loss before income taxes | ​ |  | (156,559) | ​ |  | (106,606) | ​ |  | 3,731
Income tax benefit (expense) | ​ |  | — | ​ |  | — | ​ |  | —
Net loss attributable to Porch Group, Inc. | ​ | $ | (156,559) | ​ | $ | (106,606) | ​ | $ | 3,731
Other comprehensive loss | ​ | ​ | (5,912) | ​ | ​ | (259) | ​ | ​ | —
Comprehensive loss attributable to Porch Group, Inc. | ​ | $ | (162,471) | ​ | $ | (106,865) | ​ | $ | 3,731
​ 1 – See Note 4 (Fair Value) to the accompanying consolidated financial statements included in Item 8 of this Annual Report. ​ ​ See notes to condensed financial statements. ​ Porch Group, Inc. Condensed Statements of Cash Flows (Parent Company Only) (all numbers in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ |  | For the period from
​ | ​ | Year ended December 31, | ​ | December 23, 2020
​ |  | 2022 |  | 2021 |  | to December 31, 2020
Cash flows from operating activities: | ​ | ​ |  | ​ | ​ |  |  | ​ |
Net (loss) income | ​ | $ | (156,559) | ​ | $ | (106,606) | ​ | $ | 3,731
Adjustments to reconcile net loss to net cash used in operating activities | ​ |  | ​ | ​ |  | ​ | ​ |  |
Equity in net loss of subsidiary | ​ |  | 175,905 | ​ |  | 67,046 | ​ |  | (1,360)
Loss (gain) on remeasurement of private warrant liability | ​ |  | (14,486) | ​ |  | 15,389 | ​ |  | (2,427)
Loss (gain) on remeasurement of earnout liability | ​ | ​ | (13,822) | ​ | ​ | 18,519 | ​ | ​ | —
Interest expense (non-cash) | ​ |  | 2,225 | ​ |  | 643 | ​ |  | —
Change in operating assets and liabilities, net of acquisitions and divestitures | ​ |  |  | ​ |  |  | ​ |  |
Accrued expenses and other current liabilities | ​ |  | (9) | ​ |  | 930 | ​ |  | —
Net cash used in operating activities | ​ |  | (6,746) | ​ |  | (4,079) | ​ |  | (56)
Cash flows from investing activities: | ​ |  |  | ​ |  |  | ​ |  |
Net (investment) return of capital in subsidiary | ​ |  | 10,551 | ​ |  | (458,697) | ​ |  | (269,425)
Net cash provided by (used in) investing activities | ​ |  | 10,551 | ​ |  | (458,697) | ​ |  | (269,425)
Cash flows from financing activities: | ​ |  |  | ​ |  |  | ​ |  |
Proceeds from recapitalization and PIPE financing | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 305,133
Distribution to stockholders | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (30,000)
Transaction costs - recapitalization | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (5,652)
Proceeds from debt issuance, net of fees | ​ |  | — | ​ |  | 413,537 | ​ |  | —
Capped call transactions | ​ | ​ | — | ​ | ​ | (52,913) | ​ | ​ | —
Proceeds from exercises of warrants | ​ |  | — | ​ |  | 126,741 | ​ |  | —
Proceeds from exercises of stock options | ​ | ​ | 1,116 | ​ | ​ | 4,288 | ​ | ​ | —
Income tax withholdings paid upon vesting of restricted stock units | ​ | ​ | (3,108) | ​ | ​ | (28,877) | ​ | ​ | —
Repurchases of stock | ​ | ​ | (1,813) | ​ | ​ | — | ​ | ​ | —
Net cash provided by (used in) financing activities | ​ | ​ | (3,805) | ​ | ​ | 462,776 | ​ | ​ | 269,481
Net change in cash, cash equivalents, and restricted cash | ​ | $ | — | ​ | $ | — | ​ | $ | —
Cash, cash equivalents, and restricted cash, beginning of period | ​ | $ | — | ​ | $ | — | ​ | $ | —
Cash, cash equivalents, and restricted cash end of period | ​ | $ | — | ​ | $ | — | ​ | $ | —
​ See notes to condensed financial statements. Porch Group, Inc. Notes to Condensed Financial Statements (Parent Company Only) Basis of Presentation The accompanying condensed financial statements of Porch Group, Inc. (referred to in this section as the “Parent Company”) should be read in conjunction with the consolidated financial statements and notes thereto included in this Annual Report on Form 10-K. These condensed Parent Company only financial statements have been prepared using the same accounting principles and policies described in the notes to the accompanying consolidated financial statements included in Item 8 of this Annual Report, with the only exception being that the Parent Company accounts for investments in its subsidiaries using the equity method. Porch Group, Inc. became the Parent Company as a result of the Merger in December 2020. See Note 1 (Description of Business and Summary of Significant Accounting Policies) to the accompanying consolidated financial statements included in Item 8 of this Annual Report for additional information on the Merger included in the consolidated financial statements elsewhere in this Annual Report. As a result, these Parent Company only financial statements reflect the periods following this Merger event. Long-term Debt The information relating to long-term debt and interest expense relates to our convertible senior notes and is described in Note 7 – Debt in the notes to the accompanying consolidated financial statements. Accrued expenses and other current liabilities include accrued interest on our convertible senior notes. Condensed Statements of Comprehensive Loss On the condensed statements of comprehensive loss, other comprehensive loss represents activity of Porch.com, Inc. and includes net unrealized gains and losses on available-for-sale securities. Condensed Statements of Cash Flows The Parent Company does not hold any cash but has access to funds maintained in Porch.com, Inc. to meet its holding company obligation. Commitments and contingencies See Note 16 to the accompanying consolidated financial statements included in Item 8 of this Annual Report for information regarding pending and threatened litigation. Income Taxes The Parent Company’s financial statements recognize the current and deferred income tax consequences that result from its activities pursuant to the provisions of ASC 740 as if it were a separate taxpayer rather than a member of the Parent Company’s consolidated income tax group. No income tax benefit is recognized for its net operating loss and other deferred tax assets because realization of these future deductions does not meet the more likely than not standard such that they are subject to a full valuation allowance.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI https://asc.fasb.org/extlink&oid=126898705&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=126929396&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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