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Accounting Changes and Error Corrections | 3 Months Ended
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Mar. 31, 2023
Accounting Changes and Error Corrections [Abstract] |
Error Correction | 3) RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL STATEMENTS Subsequent to the issuance of the Form 10-Q as of and for the three months ended March 31, 2023, the Company concluded it should restate its previously issued financial statements for both 2023 and 2022 to accurately present discontinued operations, including activities that directly support its former subsidiary, UPC, in accordance with ASC 205-20. The Company had previously excluded these supporting activities, assets, and liabilities, presenting only the results, assets and liabilities of UPC as discontinued operations. In addition, the Company concluded it should restate its previously issued financial statements to accurately present its tax provision (benefit) related to both continuing and discontinued operations. Previously, the calculation of this provision (benefit) incorrectly included the benefit of the use of certain deferred tax assets held by UPC after the disposition of UPC occurred and incorrectly allocated this provision between continuing and discontinued operations. In accordance with SEC Staff Accounting Bulletin No. 99, the Company evaluated the errors and has determined that the related impact was material to the previously filed financial statements that contained the error, reported in the Company’s Form 10-Q for the quarterly period ended March 31, 2023. Therefore, the Company concluded that the affected quarterly periods should be restated to present continuing and discontinued operations appropriately and recognize the additional provision for income taxes for the period and allocate appropriately to continuing and discontinued operations. As such, the Company is reporting these restated financial statements in this amended quarterly report. The previously filed Form 10-Q should no longer be relied upon. The impact of the restatement on the financial statements for the affected quarterly periods are presented below. Restated Condensed Consolidated Balance Sheets (Unaudited)
|  | As of March 31, 2023
|  | As Previously Reported |  | Adjustment |  | As Restated
ASSETS |  |  |  |  |  |
Property and equipment, net |  | 18,118 |  |  | (13,395) |  |  | 4,723 |
Other Assets |  | 15,426 |  |  | 2,050 |  |  | 17,476 |
Assets held for disposal |  | — |  |  | 13,395 |  |  | 13,395 |
Total Assets |  | $ | 1,445,386 |  |  | 2,050 |  |  | $ | 1,447,436 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |
Liabilities: |  |  |  |  |  |
Other liabilities |  | 36,242 |  |  | (6,169) |  |  | 30,073 |
Liabilities held for disposal |  | — |  |  | 1,817 |  |  | 1,817 |
Total Liabilities |  | $ | 1,361,898 |  |  | (4,352) |  |  | $ | 1,357,546 |
Stockholders' Equity: |  |  |  |  |  |
Retained earnings (deficit) |  | $ | (286,422) |  |  | 6,402 |  |  | $ | (280,020) |
Total Stockholders' Equity (Deficit) |  | $ | 83,488 |  |  | 6,402 |  |  | $ | 89,890 |
|  | As of December 31, 2022
|  | As Previously Reported |  | Adjustment |  | As Restated
ASSETS |  |  |  |  |  |
Property and equipment, net |  | 19,591 |  |  | (14,298) |  |  | 5,293 |
Deferred policy acquisition costs, net |  | 60,979 |  |  | (8,610) |  |  | 52,369 |
Assets held for disposal |  | 1,411,907 |  |  | 22,908 |  |  | 1,434,815 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |
Liabilities: |  |  |  |  |  |
Accounts payable and accrued expenses |  | 75,374 |  |  | (988) |  |  | 74,386 |
Other liabilities |  | 17,466 |  |  | (11,617) |  |  | 5,849 |
Liabilities held for disposal |  | 1,642,212 |  |  | 12,605 |  |  | 1,654,817 |
Restated Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
|  | Three Months Ended March 31, 2023
REVENUE: |  | As Previously Reported |  | Adjustment |  | As Restated
Management fee income |  | 9,668 |  |  | (9,668) |  |  | — |
Other revenue |  | 4,075 |  |  | (4,059) |  |  | 16 |
Total revenue |  | 104,047 |  |  | (13,727) |  |  | 90,320 |
EXPENSES: |  |  |  |  |  |
Losses and loss adjustment expenses |  | 19,073 |  |  | (2,661) |  |  | 16,412 |
Policy acquisition costs |  | 26,927 |  |  | 45 |  |  | 26,972 |
Operating expenses |  | 5,651 |  |  | (3,483) |  |  | 2,168 |
General and administrative expenses |  | 9,837 |  |  | (1,044) |  |  | 8,793 |
Total expenses |  | 61,488 |  |  | (7,143) |  |  | 54,345 |
Income before other income |  | 39,840 |  |  | (6,584) |  |  | 33,256 |
Income before income taxes |  | 40,428 |  |  | (6,584) |  |  | 33,844 |
Provision for income taxes |  | 9,855 |  |  | (6,378) |  |  | 3,477 |
Income from continuing operations, net of tax |  | $ | 30,573 |  |  | $ | (206) |  |  | $ | 30,367 |
Income from discontinued operations, net of tax |  | 230,305 |  |  | 6,608 |  |  | 236,913 |
Net income |  | $ | 260,878 |  |  | $ | 6,402 |  |  | $ | 267,280 |
Earnings available to UIHC common stockholders per share |  |  |  |  |  |
Basic |  |  |  |  |  |
Continuing operations |  | $ | 0.71 |  |  | $ | (0.01) |  |  | $ | 0.70 |
Discontinued operations |  | 5.34 |  |  | 0.15 |  |  | 5.49 |
Total |  | $ | 6.05 |  |  | $ | 0.14 |  |  | $ | 6.19 |
Diluted |  |  |  |  |  |
Continuing operations |  | $ | 0.70 |  |  | $ | — |  |  | $ | 0.70 |
Discontinued operations |  | 5.29 |  |  | 0.15 |  |  | 5.44 |
Total |  | $ | 5.99 |  |  | $ | 0.15 |  |  | $ | 6.14 |
|  | Three Months Ended March 31, 2022
REVENUE: |  | As Previously Reported |  | Adjustment |  | As Restated
Management fee income |  | 50,206 |  |  | (50,206) |  |  | — |
Other revenue |  | 8,738 |  |  | (8,723) |  |  | 15 |
Total revenue |  | 117,361 |  |  | (58,929) |  |  | 58,432 |
EXPENSES: |  |  |  |  |  |
Losses and loss adjustment expenses |  | 32,518 |  |  | (6,203) |  |  | 26,315 |
Policy acquisition costs |  | 52,152 |  |  | (31,844) |  |  | 20,308 |
Operating expenses |  | 10,603 |  |  | (6,896) |  |  | 3,707 |
General and administrative expenses |  | 15,435 |  |  | (7,371) |  |  | 8,064 |
Total expenses |  | 113,067 |  |  | (52,314) |  |  | 60,753 |
Income (loss) before other income |  | 4,294 |  |  | (6,615) |  |  | (2,321) |
Income (loss) before income taxes |  | 5,627 |  |  | (6,615) |  |  | (988) |
Provision (benefit) for income taxes |  | 980 |  |  | (1,695) |  |  | (715) |
Income (loss) from continuing operations, net of tax |  | $ | 4,647 |  |  | $ | (4,920) |  |  | $ | (273) |
Loss from discontinued operations, net of tax |  | (37,904) |  |  | 4,920 |  |  | (32,984) |
Net loss |  | $ | (33,257) |  |  | $ | — |  |  | $ | (33,257) |
Restated Condensed Consolidated Statements of Cash Flows (Unaudited)
|  | Three Months Ended March 31, 2023
|  | As Previously Reported |  | Adjustment |  | As Restated
OPERATING ACTIVITIES |  |  |  |  |  |
Net income (loss) |  | $ | 260,878 |  |  | $ | 6,402 |  |  | $ | 267,280 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |  |  |  |
Disposition of former subsidiary |  | (229,183) |  |  | (9,257) |  |  | (238,440) |
Changes in operating assets and liabilities: |  |  |  |  |  |
Other liabilities |  | (6,416) |  |  | 2,855 |  |  | (3,561) |
Restated Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended (Unaudited)
|  | Three Months Ended March 31, 2023
|  | As Previously Reported |  | Adjustment |  | As Restated
Net Income for the three months ended March 31, 2023 |  | $ | 260,878 |  |  | $ | 6,402 |  |  | $ | 267,280 |
Retained Earnings (Deficit) as of March 31, 2023 |  | (286,422) |  |  | 6,402 |  |  | (280,020) |
Stockholders Equity (Deficit) attributable to UIHC at March 31, 2023 |  | 83,488 |  |  | 6,402 |  |  | 89,890 |
Total Stockholders' Equity (Deficit) |  | 83,488 |  |  | 6,402 |  |  | 89,890 |
In connection with these changes, our Notes to Unaudited Condensed Consolidated Financial Statements have also been restated where applicable.

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- Definition The entire disclosure for reporting error correction. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-7 + Details
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