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Supplemental Financial Statement Information
 3 Months Ended
Mar. 31, 2025
Balance Sheet Related Disclosures [Abstract]  
Supplemental Financial Statement Information Supplemental Financial Statement Information
Cash, Cash Equivalents and Restricted Cash

We consider all investments with an original maturity of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents are stated at fair value. We also invest in marketable securities that are measured and recorded at fair value. See Note 4 – Fair Value Measurements for further discussion about our marketable securities.

Our cash, cash equivalents and restricted cash balances are summarized as follows (in thousands):
March 31, 2025December 31, 2024
Cash$27,982 $10,927 
Cash equivalents93,110 28,270 
Cash and cash equivalents121,092 39,197 
Restricted cash3,090 3,090 
Total cash, cash equivalents and restricted cash$124,182 $42,287 

As of March 31, 2025 and December 31, 2024, we had $3.1 million of restricted cash which was classified as a non-current asset on our Condensed Consolidated Balance Sheets. This amount collateralizes letters of credit related to certain lease commitments.
Contract Assets and Accounts Receivable

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 Condensed Consolidated Statements of Comprehensive Income (Loss). There were no write-offs during the three months ended March 31, 2025 or for the year ended December 31, 2024.

The change in the allowance for credit losses is summarized as follows (in thousands): 
March 31, 2025December 31, 2024
Beginning balance$2,222 $2,118 
Change in allowance(315)104 
Ending balance$1,907 $2,222 


Our contract assets – commissions receivable activities, net of credit loss allowances, are summarized as follows (in thousands):
Medicare Segment
E&I Segment
Total
Beginning balance at December 31, 2024
$936,940 $63,050 $999,990 
Commission revenue from members approved during the period81,754 3,858 85,612 
Commission revenue from renewals of small business members during the period— 2,850 2,850 
Net commission revenue from members approved in prior periods7,965 2,519 10,484 
Cash receipts(168,715)(7,279)(175,994)
Net change in credit loss allowance293 22 315 
Ending balance at March 31, 2025
$858,237 $65,020 $923,257 

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 $2.4 million as of March 31, 2025. 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:
 March 31, 2025December 31, 2024
Humana29 %28 %
UnitedHealthcare (1)
29 %27 %
Aetna (1)
17 %17 %
_____________
(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):
 March 31, 2025December 31, 2024
Prepaid software and maintenance contracts$5,996 $5,582 
Prepaid marketing and other expenses2,742 2,405 
Prepaid licenses1,924 2,358 
Prepaid insurance957 1,296 
Other current assets1,355 1,320 
Prepaid expenses and other current assets$12,974 $12,961