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ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||
UNREALIZED LOSSES ON AVAILABLE FOR SALE SECURITIES | FOREIGN CURRENCY GAIN | ||||||
Balance at December 31, 2013 | $ | (168 | ) | $ | 4 | ||
Other comprehensive loss | 35 | 51 | |||||
Balance at March 31, 2014 | (133 | ) | 55 | ||||
Other comprehensive loss | 60 | (27 | ) | ||||
Balance at June 30, 2014 | (73 | ) | 28 | ||||
Other comprehensive loss | 17 | 25 | |||||
Balance at September 30, 2014 | $ | (56 | ) | $ | 53 |
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AMORTIZED COST | GROSS UNREALIZED HOLDING GAINS | GROSS UNREALIZED HOLDING LOSSES | FAIR VALUE | ||||||||||||
As of September 30, 2014 | |||||||||||||||
Available-for-sale: | |||||||||||||||
Municipal bond | $ | 1,000 | $ | — | $ | (56 | ) | $ | 944 | ||||||
$ | 1,000 | $ | — | $ | (56 | ) | $ | 944 | |||||||
Held-to-maturity: | |||||||||||||||
U.S. Treasury securities | $ | 5,777 | $ | — | $ | — | $ | 5,777 | |||||||
Certificates of deposit | 700 | — | — | 700 | |||||||||||
U.S. government funds | 12,820 | — | — | 12,820 | |||||||||||
$ | 19,297 | $ | — | $ | — | $ | 19,297 | ||||||||
AMORTIZED COST | GROSS UNREALIZED HOLDING GAINS | GROSS UNREALIZED HOLDING LOSSES | FAIR VALUE | ||||||||||||
As of December 31, 2013 | |||||||||||||||
Available-for-sale: | |||||||||||||||
Municipal bond | $ | 1,000 | $ | — | $ | (168 | ) | $ | 832 | ||||||
$ | 1,000 | $ | — | $ | (168 | ) | $ | 832 | |||||||
Held-to-maturity: | |||||||||||||||
U.S. Treasury securities | $ | 5,778 | $ | — | $ | — | $ | 5,778 | |||||||
Certificates of deposit | 2,700 | — | — | $ | 2,700 | ||||||||||
U.S. government funds | 7,610 | — | — | $ | 7,610 | ||||||||||
$ | 16,088 | $ | — | $ | — | $ | 16,088 |
SEPTEMBER 30, 2014 | |||||||
AMORTIZED COST | FAIR VALUE | ||||||
Available-for-sale: | |||||||
Due under one year | $ | — | $ | — | |||
Due after one year through five years | — | — | |||||
Due after five years through ten years | 1,000 | 944 | |||||
Due after ten years | — | — | |||||
$ | 1,000 | $ | 944 |
SEPTEMBER 30, 2014 | |||||||
AMORTIZED COST | FAIR VALUE | ||||||
Held-to-maturity: | |||||||
Due under one year | $ | 19,297 | $ | 19,297 | |||
Due after one year through five years | — | — | |||||
Due after five years through ten years | — | — | |||||
Due after ten years | — | — | |||||
$ | 19,297 | $ | 19,297 |
|
• | Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. |
• | Level 2 inputs: Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. |
• | Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
AS OF SEPTEMBER 30, 2014 | |||||||||||||||
FAIR VALUE | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets | |||||||||||||||
Municipal bond | 944 | — | 944 | — | |||||||||||
Money market funds | $ | 50,500 | $ | 50,500 | $ | — | $ | — | |||||||
Total | $ | 51,444 | $ | 50,500 | $ | 944 | $ | — | |||||||
AS OF DECEMBER 31, 2013 | |||||||||||||||
FAIR VALUE | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets | |||||||||||||||
Restricted cash | $ | 3,000 | $ | 3,000 | $ | — | $ | — | |||||||
Municipal bond | 832 | — | 832 | — | |||||||||||
Total | $ | 3,832 | $ | 3,000 | $ | 832 | $ | — | |||||||
Liabilities | |||||||||||||||
Warrant liabilities | $ | 4,900 | $ | — | $ | — | $ | 4,900 | |||||||
Total | $ | 4,900 | $ | — | $ | — | $ | 4,900 |
WARRANT LIABILITIES | |||||||
2014 | 2013 | ||||||
Balance at January 1, | $ | 4,900 | $ | 551 | |||
Issuance of warrants | — | 44 | |||||
Change in fair value upon remeasurement | 1,219 | 98 | |||||
Balance at March 31, | 6,119 | 693 | |||||
Settlement of warrant liability upon exercise | (999 | ) | — | ||||
Change in fair value upon remeasurement | (740 | ) | 28 | ||||
Balance at June 30, | $ | 4,380 | $ | 721 | |||
Issuance of warrants | 1,123 | — | |||||
Settlement of warrant liability upon exercise | (270 | ) | — | ||||
Change in fair value upon remeasurement | (2,053 | ) | 3 | ||||
Reclassification to stockholders' equity | (3,180 | ) | — | ||||
Balance at September 30, | — | 724 |
• | Investment securities: Debt securities classified as available-for-sale are measured using quoted market prices when quoted market prices are available. If quoted market prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices of similar instruments and other significant inputs derived from observable market data obtained from third-party data providers. Held-to-maturity securities are carried at amortized cost and the fair value is disclosed in Note 3. Fair value is determined in the same manner as available-for-sale securities and is considered a Level 2 measurement. |
• | Warrant liabilities: These liabilities are valued using the Black-Scholes-Merton option-pricing model using certain unobservable inputs that are estimated by the Company. These inputs include a measure of volatility using an average of peer companies’ publicly traded stock volatility, expected dividend payments based on management’s assertion that no dividends will be paid in the near term, the remaining contractual term and a discount rate using an average equivalent bond yield calculation. The range of inputs used is as follows: |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||
2014 | 2013 | 2014 | 2013 | ||||
Expected volatility | 40%-41% | 38%-40% | 34%-46% | 35%-46% | |||
Expected dividends | —% | —% | —% | —% | |||
Risk-free rate | 1.69%-1.71% | 1.01%-2.02% | 0.03%-2.02% | 0.10%-2.02% | |||
Term | 3.5-5.0 years | 4.3-6.5 years | 0.1-6.0 years | 0.6-7.0 years |
|
BALANCE | INTEREST RATE | MATURITY | |||
Line of credit | $14,900 | 5% | July 23, 2016 |
|
|
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue: | |||||||||||||||
Subscription business | $ | 27,517 | $ | 20,007 | $ | 75,965 | $ | 55,392 | |||||||
Other business | 2,795 | 2,127 | 8,077 | 4,426 | |||||||||||
30,312 | 22,134 | 84,042 | 59,818 | ||||||||||||
Claims expenses: | |||||||||||||||
Subscription business | 20,611 | 14,002 | 54,534 | 38,442 | |||||||||||
Other business | 1,197 | 808 | 3,285 | 1,878 | |||||||||||
21,808 | 14,810 | 57,819 | 40,320 | ||||||||||||
Other cost of revenue: | |||||||||||||||
Subscription business | 2,793 | 2,115 | 7,990 | 5,847 | |||||||||||
Other business | 1,266 | 1,090 | 3,882 | 2,095 | |||||||||||
4,059 | 3,205 | 11,872 | 7,942 | ||||||||||||
Gross profit: | |||||||||||||||
Subscription business | 4,113 | 3,890 | 13,441 | 11,103 | |||||||||||
Other business | 332 | 229 | 910 | 453 | |||||||||||
4,445 | 4,119 | 14,351 | 11,556 | ||||||||||||
Sales and marketing | 2,934 | 2,013 | 8,390 | 6,853 | |||||||||||
Technology and development | 2,532 | 1,156 | 7,285 | 3,191 | |||||||||||
General and administrative | 4,385 | 2,033 | 10,463 | 5,982 | |||||||||||
Operating loss | $ | (5,406 | ) | $ | (1,083 | ) | $ | (11,787 | ) | $ | (4,470 | ) |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
United States | $ | 22,609 | $ | 15,765 | $ | 62,430 | $ | 41,467 | |||||||
Canada | 7,703 | 6,369 | 21,612 | 18,351 | |||||||||||
Total revenue | $ | 30,312 | $ | 22,134 | $ | 84,042 | $ | 59,818 |
|
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||
UNREALIZED LOSSES ON AVAILABLE FOR SALE SECURITIES | FOREIGN CURRENCY GAIN | ||||||
Balance at December 31, 2013 | $ | (168 | ) | $ | 4 | ||
Other comprehensive loss | 35 | 51 | |||||
Balance at March 31, 2014 | (133 | ) | 55 | ||||
Other comprehensive loss | 60 | (27 | ) | ||||
Balance at June 30, 2014 | (73 | ) | 28 | ||||
Other comprehensive loss | 17 | 25 | |||||
Balance at September 30, 2014 | $ | (56 | ) | $ | 53 |
|
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||
UNREALIZED LOSSES ON AVAILABLE FOR SALE SECURITIES | FOREIGN CURRENCY GAIN | ||||||
Balance at December 31, 2013 | $ | (168 | ) | $ | 4 | ||
Other comprehensive loss | 35 | 51 | |||||
Balance at March 31, 2014 | (133 | ) | 55 | ||||
Other comprehensive loss | 60 | (27 | ) | ||||
Balance at June 30, 2014 | (73 | ) | 28 | ||||
Other comprehensive loss | 17 | 25 | |||||
Balance at September 30, 2014 | $ | (56 | ) | $ | 53 |
|
AMORTIZED COST | GROSS UNREALIZED HOLDING GAINS | GROSS UNREALIZED HOLDING LOSSES | FAIR VALUE | ||||||||||||
As of September 30, 2014 | |||||||||||||||
Available-for-sale: | |||||||||||||||
Municipal bond | $ | 1,000 | $ | — | $ | (56 | ) | $ | 944 | ||||||
$ | 1,000 | $ | — | $ | (56 | ) | $ | 944 | |||||||
Held-to-maturity: | |||||||||||||||
U.S. Treasury securities | $ | 5,777 | $ | — | $ | — | $ | 5,777 | |||||||
Certificates of deposit | 700 | — | — | 700 | |||||||||||
U.S. government funds | 12,820 | — | — | 12,820 | |||||||||||
$ | 19,297 | $ | — | $ | — | $ | 19,297 | ||||||||
AMORTIZED COST | GROSS UNREALIZED HOLDING GAINS | GROSS UNREALIZED HOLDING LOSSES | FAIR VALUE | ||||||||||||
As of December 31, 2013 | |||||||||||||||
Available-for-sale: | |||||||||||||||
Municipal bond | $ | 1,000 | $ | — | $ | (168 | ) | $ | 832 | ||||||
$ | 1,000 | $ | — | $ | (168 | ) | $ | 832 | |||||||
Held-to-maturity: | |||||||||||||||
U.S. Treasury securities | $ | 5,778 | $ | — | $ | — | $ | 5,778 | |||||||
Certificates of deposit | 2,700 | — | — | $ | 2,700 | ||||||||||
U.S. government funds | 7,610 | — | — | $ | 7,610 | ||||||||||
$ | 16,088 | $ | — | $ | — | $ | 16,088 |
SEPTEMBER 30, 2014 | |||||||
AMORTIZED COST | FAIR VALUE | ||||||
Available-for-sale: | |||||||
Due under one year | $ | — | $ | — | |||
Due after one year through five years | — | — | |||||
Due after five years through ten years | 1,000 | 944 | |||||
Due after ten years | — | — | |||||
$ | 1,000 | $ | 944 |
SEPTEMBER 30, 2014 | |||||||
AMORTIZED COST | FAIR VALUE | ||||||
Held-to-maturity: | |||||||
Due under one year | $ | 19,297 | $ | 19,297 | |||
Due after one year through five years | — | — | |||||
Due after five years through ten years | — | — | |||||
Due after ten years | — | — | |||||
$ | 19,297 | $ | 19,297 |
|
AS OF SEPTEMBER 30, 2014 | |||||||||||||||
FAIR VALUE | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets | |||||||||||||||
Municipal bond | 944 | — | 944 | — | |||||||||||
Money market funds | $ | 50,500 | $ | 50,500 | $ | — | $ | — | |||||||
Total | $ | 51,444 | $ | 50,500 | $ | 944 | $ | — | |||||||
AS OF DECEMBER 31, 2013 | |||||||||||||||
FAIR VALUE | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
Assets | |||||||||||||||
Restricted cash | $ | 3,000 | $ | 3,000 | $ | — | $ | — | |||||||
Municipal bond | 832 | — | 832 | — | |||||||||||
Total | $ | 3,832 | $ | 3,000 | $ | 832 | $ | — | |||||||
Liabilities | |||||||||||||||
Warrant liabilities | $ | 4,900 | $ | — | $ | — | $ | 4,900 | |||||||
Total | $ | 4,900 | $ | — | $ | — | $ | 4,900 |
WARRANT LIABILITIES | |||||||
2014 | 2013 | ||||||
Balance at January 1, | $ | 4,900 | $ | 551 | |||
Issuance of warrants | — | 44 | |||||
Change in fair value upon remeasurement | 1,219 | 98 | |||||
Balance at March 31, | 6,119 | 693 | |||||
Settlement of warrant liability upon exercise | (999 | ) | — | ||||
Change in fair value upon remeasurement | (740 | ) | 28 | ||||
Balance at June 30, | $ | 4,380 | $ | 721 | |||
Issuance of warrants | 1,123 | — | |||||
Settlement of warrant liability upon exercise | (270 | ) | — | ||||
Change in fair value upon remeasurement | (2,053 | ) | 3 | ||||
Reclassification to stockholders' equity | (3,180 | ) | — | ||||
Balance at September 30, | — | 724 |
• | Warrant liabilities: These liabilities are valued using the Black-Scholes-Merton option-pricing model using certain unobservable inputs that are estimated by the Company. These inputs include a measure of volatility using an average of peer companies’ publicly traded stock volatility, expected dividend payments based on management’s assertion that no dividends will be paid in the near term, the remaining contractual term and a discount rate using an average equivalent bond yield calculation. The range of inputs used is as follows: |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||
2014 | 2013 | 2014 | 2013 | ||||
Expected volatility | 40%-41% | 38%-40% | 34%-46% | 35%-46% | |||
Expected dividends | —% | —% | —% | —% | |||
Risk-free rate | 1.69%-1.71% | 1.01%-2.02% | 0.03%-2.02% | 0.10%-2.02% | |||
Term | 3.5-5.0 years | 4.3-6.5 years | 0.1-6.0 years | 0.6-7.0 years |
|
BALANCE | INTEREST RATE | MATURITY | |||
Line of credit | $14,900 | 5% | July 23, 2016 |
|
NUMBER OF OPTIONS | WEIGHTED- AVERAGE EXERCISE PRICE | AGGREGATE INTRINSIC VALUE | ||||||||
December 31, 2013 | 4,663,445 | $ | 2.12 | $ | 30,406 | |||||
Granted | 665,100 | 10.04 | ||||||||
Exercised | (138,878 | ) | 1.16 | 1,020 | ||||||
Forfeited | (107,167 | ) | 5.16 | |||||||
September 30, 2014 | 5,082,500 | 3.12 | 28,332 |
NUMBER OF OPTIONS | WEIGHTED- AVERAGE FAIR VALUE | WEIGHTED- AVERAGE EXERCISE PRICE | WEIGHTED- AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) | AGGREGATE INTRINSIC VALUE | ||||||||||||
Vested and exercisable at December 31, 2013 | 2,719,609 | $ | 1.32 | $ | 1.38 | 6.03 | $ | 19,908 | ||||||||
Vested and exercisable at September 30, 2014 | 3,418,197 | 1.47 | 1.63 | 6.06 | 23,497 |
NUMBER OF OPTIONS | WEIGHTED- AVERAGE EXERCISE PRICE | AGGREGATE INTRINSIC VALUE | ||||||||
December 31, 2013 | 4,663,445 | $ | 2.12 | $ | 30,406 | |||||
Granted | 665,100 | 10.04 | ||||||||
Exercised | (138,878 | ) | 1.16 | 1,020 | ||||||
Forfeited | (107,167 | ) | 5.16 | |||||||
September 30, 2014 | 5,082,500 | 3.12 | 28,332 |
NUMBER OF OPTIONS | WEIGHTED- AVERAGE FAIR VALUE | WEIGHTED- AVERAGE EXERCISE PRICE | WEIGHTED- AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) | AGGREGATE INTRINSIC VALUE | ||||||||||||
Vested and exercisable at December 31, 2013 | 2,719,609 | $ | 1.32 | $ | 1.38 | 6.03 | $ | 19,908 | ||||||||
Vested and exercisable at September 30, 2014 | 3,418,197 | 1.47 | 1.63 | 6.06 | 23,497 |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Claims expenses | $ | 60 | $ | 44 | $ | 168 | $ | 116 | |||||||
Other cost of revenue | 18 | 12 | 55 | 28 | |||||||||||
Sales and marketing | 115 | 147 | 408 | 492 | |||||||||||
Technology and development | 110 | 84 | 306 | 249 | |||||||||||
General and administrative | 1,698 | 191 | 2,257 | 479 | |||||||||||
Total stock-based compensation | $ | 2,001 | $ | 478 | $ | 3,194 | $ | 1,364 |
THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Claims expenses | $ | 60 | $ | 44 | $ | 168 | $ | 116 | |||||||
Other cost of revenue | 18 | 12 | 55 | 28 | |||||||||||
Sales and marketing | 115 | 147 | 408 | 492 | |||||||||||
Technology and development | 110 | 84 | 306 | 249 | |||||||||||
General and administrative | 1,698 | 191 | 2,257 | 479 | |||||||||||
Total stock-based compensation | $ | 2,001 | $ | 478 | $ | 3,194 | $ | 1,364 |
|
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue: | |||||||||||||||
Subscription business | $ | 27,517 | $ | 20,007 | $ | 75,965 | $ | 55,392 | |||||||
Other business | 2,795 | 2,127 | 8,077 | 4,426 | |||||||||||
30,312 | 22,134 | 84,042 | 59,818 | ||||||||||||
Claims expenses: | |||||||||||||||
Subscription business | 20,611 | 14,002 | 54,534 | 38,442 | |||||||||||
Other business | 1,197 | 808 | 3,285 | 1,878 | |||||||||||
21,808 | 14,810 | 57,819 | 40,320 | ||||||||||||
Other cost of revenue: | |||||||||||||||
Subscription business | 2,793 | 2,115 | 7,990 | 5,847 | |||||||||||
Other business | 1,266 | 1,090 | 3,882 | 2,095 | |||||||||||
4,059 | 3,205 | 11,872 | 7,942 | ||||||||||||
Gross profit: | |||||||||||||||
Subscription business | 4,113 | 3,890 | 13,441 | 11,103 | |||||||||||
Other business | 332 | 229 | 910 | 453 | |||||||||||
4,445 | 4,119 | 14,351 | 11,556 | ||||||||||||
Sales and marketing | 2,934 | 2,013 | 8,390 | 6,853 | |||||||||||
Technology and development | 2,532 | 1,156 | 7,285 | 3,191 | |||||||||||
General and administrative | 4,385 | 2,033 | 10,463 | 5,982 | |||||||||||
Operating loss | $ | (5,406 | ) | $ | (1,083 | ) | $ | (11,787 | ) | $ | (4,470 | ) |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
United States | $ | 22,609 | $ | 15,765 | $ | 62,430 | $ | 41,467 | |||||||
Canada | 7,703 | 6,369 | 21,612 | 18,351 | |||||||||||
Total revenue | $ | 30,312 | $ | 22,134 | $ | 84,042 | $ | 59,818 |
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