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Supplemental Financial Statement Information
 12 Months Ended
Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]  
Supplemental Financial Statement Information Supplemental Financial Statement Information
Cash, Cash Equivalents and Restricted Cash

Our cash, cash equivalents and restricted cash balances are summarized as follows (in thousands):
December 31, 2023December 31, 2022
Cash$7,114 $17,776 
Cash equivalents108,608 126,625 
Cash and cash equivalents115,722 144,401 
Restricted cash3,090 3,239 
Total cash, cash equivalents and restricted cash$118,812 $147,640 

As of December 31, 2023 and 2022, we had $3.1 million and $3.2 million of restricted cash which was classified as a non-current asset on our Consolidated Balance Sheets. This amount collateralizes letters of credit related to certain lease commitments.

Contract Assets and Accounts Receivable

We do not require collateral or other security for our contract assets and accounts receivable. We believe the potential for collection issues with any of our customers was minimal as of December 31, 2023.

We estimate an allowance for credit losses using relevant available information from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Specifically, for the purpose of measuring the probability of default parameters, we utilize Capital IQ’s, Standard & Poor’s and Moody’s analytics. Our estimates of loss given default are determined by using our historical collections data as well as historical information obtained through our research and review of other insurance related companies. Our estimated exposure at default is determined by applying these internal and external data sources to our commissions receivable balances. As such, we apply an immediate reversion method and revert to historical loss information when computing our credit loss exposure. Credit loss expenses are assessed quarterly and included in the “General and administrative” line in our Consolidated Statements of Comprehensive Loss. There were no write-offs during the years ended December 31, 2023, 2022 and 2021.

The change in the allowance for credit losses is summarized as follows (in thousands):
December 31, 2023December 31, 2022
Beginning balance$2,398 $2,198 
Change in allowance(280)200 
Ending balance$2,118 $2,398 
Our contract assets – commissions receivable activities, net of credit loss allowances, are summarized as follows (in thousands):
Year Ended December 31, 2023
Medicare Segment
E&I Segment
Total
Beginning balance$817,043 $67,261 $884,304 
Commission revenue from members approved during the period326,087 19,789 345,876 
Commission revenue from renewals of small business members during the period— 9,973 9,973 
Net commission revenue from members approved in prior periods33,544 14,531 48,075 
Cash receipts(329,600)(40,731)(370,331)
Net change in credit loss allowance258 22 280 
Ending balance$847,332 $70,845 $918,177 
Year Ended December 31, 2022
Medicare Segment
E&I Segment
Total
Beginning balance$837,474 $70,788 $908,262 
Commission revenue from members approved during the period322,506 22,358 344,864 
Commission revenue from renewals of small business members during the period— 9,981 9,981 
Net commission revenue from members approved in prior periods(2,326)8,727 6,401 
Cash receipts(340,426)(44,578)(385,004)
Net change in credit loss allowance(185)(15)(200)
Ending balance$817,043 $67,261 $884,304 


Credit Risk

Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents, marketable securities, contract assets – commissions receivable and accounts receivable. We invest our cash and cash equivalents with major banks and financial institutions and, at times, such investments are in excess of federally insured limits. We also have deposits with major banks in China that are denominated in both U.S. dollars and Chinese Yuan Renminbi and are not insured by the U.S. federal government. The deposits in China were $3.2 million as of December 31, 2023. See Note 4 – Fair Value Measurements for more information regarding our marketable securities.

We do not require collateral or other security for either our contract assets or accounts receivable. Carriers that represented 10% or more of our total contract assets – commissions receivable and accounts receivable balances are summarized as follows:
 December 31, 2023December 31, 2022
Humana27 %26 %
UnitedHealthcare(1)
26 %24 %
Aetna(1)
16 %16 %
_______

(1)Percentages include the carriers' subsidiaries.
Prepaid Expenses and Other Current Assets – Our prepaid expenses and other current assets are summarized as follows (in thousands):
December 31, 2023December 31, 2022
Prepaid software and maintenance contracts$5,328 $5,211 
Prepaid licenses2,739 1,116 
Prepaid expenses1,808 2,858 
Prepaid insurance1,436 1,893 
Other current assets733 223 
Prepaid expenses and other current assets$12,044 $11,301 

Property and Equipment – Our property and equipment are summarized as follows (in thousands):
 December 31, 2023December 31, 2022
Computer equipment and software$9,008 $8,727 
Office equipment and furniture2,875 3,556 
Leasehold improvements4,124 5,992 
Property and equipment, gross16,007 18,275 
Less: accumulated depreciation and amortization(11,143)(12,774)
Property and equipment, net$4,864 $5,501 

Depreciation and amortization expense related to property and equipment for the years ended December 31, 2023, 2022 and 2021 was $2.5 million, $3.8 million and $5.4 million, respectively. During 2022, we recognized impairment charges of $2.2 million related to computer equipment, office equipment and furniture and leasehold improvements as a result of our sublease and vacating of certain leased office spaces in the “Impairment, restructuring and other charges” line in our Consolidated Statements of Comprehensive Loss.

Intangible Assets – As of December 31, 2023 and 2022, our intangible assets subject to amortization had a gross carrying value of $17.2 million and life-to-date accumulated amortization and impairment charges of $17.2 million. As of December 31, 2023 and 2022, our indefinite-lived intangible assets had a gross carrying value of $5.1 million and life-to-date impairment charges of $3.2 million. We had no amortization expense related to intangible assets for the years ended December 31, 2023 and 2022. Amortization expense related to intangible assets for the year ended December 31, 2021 was $0.5 million. We recorded $6.1 million of impairment charges related to our intangible assets in the “Impairment, restructuring and other charges” line in our Consolidated Statements of Comprehensive Loss for the year ended December 31, 2021. See Note 11 - Impairment, Restructuring and Other Charges for further discussion on our impairment charge in 2021.