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SUBSEQUENT EVENTS | 6 Months Ended
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Jun. 30, 2021
Subsequent Events [Abstract] |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On August 11, 2021, we and Carvana (“CVNA”) announced an investment agreement, or agreement, to embed Root’s telematics-based auto insurance products into Carvana’s industry-leading, online car buying platform, or Integrated Platform. In connection with the agreement, Carvana will invest approximately $126 million of primary capital in a convertible preferred security, convertible at $9.00 per share, into approximately 14 million Class A shares of Root, or an ownership interest of 5.0% on a fully-diluted basis as of August 11, 2021. The agreement also includes eight tranches of warrants that will be issued to Carvana (three tranches of which are “short-term warrants” and five tranches of which are “long-term warrants”). The short-term warrants will expire three years following the earlier of the date of completion of the Integrated Platform or 18 months following closing (such earlier date, the “Reference Date”) and long-term warrants will expire five years after the Reference Date. The short-term warrants will have exercise prices of $10.00 to $12.00 and the long-term warrants will have exercise prices of $10.00 to $30.00. The warrants will be subject to certain conditions to exercise, including relating to the achievement of defined milestones tied to the development of the Integrated Platform and insurance sales through the Integrated Platform. These warrants would enable Carvana to acquire additional shares of Class A Common Stock, up to an amount representing 29.9% of the aggregate number of issued and outstanding shares of the Company’s common stock (including shares of the Company’s Class B common stock) on a fully-diluted basis as of August 11, 2021. The exclusive partnership includes a commercial arrangement incorporating agent commissions payable to Carvana for policy origination, and an enterprise total loss replacement vehicle solution. We plan to close the transaction during the second half of 2021, subject to customary regulatory approvals.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -URI http://asc.fasb.org/topic&trid=2122774 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6842918&loc=SL6314017-165662 + Details
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