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Supplemental Financial Statement Information | 12 Months Ended
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Dec. 31, 2024
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, 2024 |  | December 31, 2023
Cash | $ | 10,927 |  |  | $ | 7,114 |
Cash equivalents | 28,270 |  |  | 108,608 |
Cash and cash equivalents | 39,197 |  |  | 115,722 |
Restricted cash | 3,090 |  |  | 3,090 |
Total cash, cash equivalents and restricted cash | $ | 42,287 |  |  | $ | 118,812 |
As of December 31, 2024 and 2023, we had $3.1 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, 2024. 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 Income (Loss). There were no write-offs during the years ended December 31, 2024 and 2023. The change in the allowance for credit losses is summarized as follows (in thousands):
| December 31, 2024 |  | December 31, 2023
Beginning balance | $ | 2,118 |  |  | $ | 2,398 |
Change in allowance | 104 |  |  | (280) |
Ending balance | $ | 2,222 |  |  | $ | 2,118 |
Our contract assets – commissions receivable activities, net of credit loss allowances, are summarized as follows (in thousands):
| Year Ended December 31, 2024
| Medicare Segment |  | E&I Segment |  | Total |  |
Beginning balance | $ | 847,332 |  |  | $ | 70,845 |  |  | $ | 918,177 |  |  |
Commission revenue from members approved during the period | 412,887 |  |  | 16,463 |  |  | 429,350 |  |  |
Commission revenue from renewals of small business members during the period | — |  |  | 9,562 |  |  | 9,562 |  |  |
Net commission revenue from members approved in prior periods | 18,678 |  |  | 4,057 |  |  | 22,735 |  |  |
Cash receipts | (341,860) |  |  | (37,870) |  |  | (379,730) |  |  |
Net change in credit loss allowance | (97) |  |  | (7) |  |  | (104) |  |  |
Ending balance | $ | 936,940 |  |  | $ | 63,050 |  |  | $ | 999,990 |  |  |
| 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 period | 326,087 |  |  | 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 periods | 33,544 |  |  | 14,531 |  |  | 48,075 |
Cash receipts | (329,600) |  |  | (40,731) |  |  | (370,331) |
Net change in credit loss allowance | 258 |  |  | 22 |  |  | 280 |
Ending balance | $ | 847,332 |  |  | $ | 70,845 |  |  | $ | 918,177 |
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 $5.0 million as of December 31, 2024. See Note 4 – Fair Value Measurements for additional 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, 2024 |  | December 31, 2023
Humana | 28 | % |  | 27 | %
UnitedHealthcare (1) | 27 | % |  | 26 | %
Aetna (1) | 17 | % |  | 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, 2024 |  | December 31, 2023
Prepaid software and maintenance contracts | $ | 5,582 |  |  | $ | 5,328 |
Prepaid expenses | 2,405 |  |  | 1,808 |
Prepaid licenses | 2,358 |  |  | 2,739 |
Prepaid insurance | 1,296 |  |  | 1,436 |
Other current assets | 1,320 |  |  | 733 |
Prepaid expenses and other current assets | $ | 12,961 |  |  | $ | 12,044 |
Property and Equipment, net – Our property and equipment, net are summarized as follows (in thousands):
| December 31, 2024 |  | December 31, 2023
Computer equipment and software | $ | 9,183 |  |  | $ | 9,008 |
Office equipment and furniture | 928 |  |  | 2,875 |
Leasehold improvements | 3,403 |  |  | 4,124 |
Property and equipment, gross | 13,514 |  |  | 16,007 |
Less: accumulated depreciation and amortization | (9,077) |  |  | (11,143) |
Property and equipment, net | $ | 4,437 |  |  | $ | 4,864 |
Depreciation and amortization expense related to property and equipment for the years ended December 31, 2024 and 2023 was $2.0 million and $2.5 million, respectively. During 2024, we recognized $0.5 million of property and equipment impairment as a result of impairment charges on certain leased office spaces in the “Impairment, restructuring and other charges” line in our Consolidated Statements of Comprehensive Income (Loss). See Note 11 – Impairment, Restructuring and Other Charges for further discussion on our impairment charge in 2024. Intangible Assets – As of December 31, 2024 and 2023, 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, 2024 and 2023, 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, 2024 and 2023.

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