Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001722438 | |
Entity Registrant Name | Doma Holdings, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39754 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1956909 | |
Entity Address, Address Line One | 101 Mission Street, Suite 1050 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 650 | |
Local Phone Number | 419-3827 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,436,915 | |
Warrant [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants, 25 whole warrants exercisable for one share of common stock at an exercise price of $287.50 per share | |
Trading Symbol | DOMAW | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Trading Symbol | DOMA | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 77,610 | $ 78,450 |
Restricted cash | 4,934 | 2,933 |
Investments: | ||
Held-to-maturity debt securities, at amortized cost (net of allowance for credit losses of $254 at June 30, 2023 and $440 at December 31, 2022) | 41,578 | 90,328 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 57,021 | 58,254 |
Mortgage loans | 46 | 297 |
Total investments | 98,645 | 148,879 |
Trade and other receivables (net of allowance for credit losses of $1,428 at June 30, 2023 and $1,488 at December 31, 2022) | 24,963 | 21,292 |
Prepaid expenses, deposits and other assets | 5,468 | 8,124 |
Lease right-of-use assets | 13,424 | 18,634 |
Fixed assets (net of accumulated depreciation of $26,998 at June 30, 2023 and $24,532 at December 31, 2022) | 36,497 | 39,383 |
Title plants | 2,716 | 14,533 |
Goodwill | 27,009 | 46,280 |
Total assets | 291,266 | 378,508 |
Liabilities and stockholders’ equity | ||
Accounts payable | 2,128 | 2,909 |
Accrued expenses and other liabilities | 19,478 | 28,892 |
Lease liabilities | 21,740 | 27,489 |
Senior secured credit agreement, net of debt issuance costs and original issue discount | 153,164 | 154,790 |
Liability for loss and loss adjustment expenses | 83,660 | 82,070 |
Warrant liabilities | 347 | 347 |
Sponsor Covered Shares liability | 96 | 219 |
Total liabilities | 280,613 | 296,716 |
Commitments and contingencies (see Note 12) | ||
Stockholders’ equity: | ||
Common stock, 0.0001 par value; 80,000,000 shares authorized at June 30, 2023; 13,350,733 and 13,165,919 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 1 | 1 |
Additional paid-in capital | 584,525 | 577,515 |
Accumulated deficit | (572,787) | (494,787) |
Accumulated other comprehensive income | (1,086) | (937) |
Total stockholders’ equity | 10,653 | 81,792 |
Total liabilities and stockholders’ equity | $ 291,266 | $ 378,508 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Held-to-maturity debt securities, allowance for credit loss | $ 254 | $ 440 |
Available-for-sale debt securities, amortized cost | 58,106 | 59,191 |
Receivables, allowance for credit losses | 1,428 | 1,488 |
Fixed assets, accumulated depreciation | $ 26,998 | $ 24,532 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued (in shares) | 13,350,733 | 13,165,919 |
Common stock, outstanding (in shares) | 13,350,733 | 13,165,919 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenues: | |||||
Net premiums written (1) | [1] | $ 78,962 | $ 108,926 | $ 145,732 | $ 204,592 |
Escrow, other title-related fees and other | [2] | 8,292 | 14,366 | 14,890 | 30,479 |
Investment, dividend and other income | 1,599 | 452 | 2,599 | 880 | |
Total revenues | 88,853 | 123,744 | 163,221 | 235,951 | |
Expenses: | |||||
Premiums retained by Third-Party Agents (2) | [3],[4] | 58,164 | 74,638 | 107,348 | 135,240 |
Title examination expense | 4,164 | 5,146 | 6,164 | 11,127 | |
Provision for claims | 5,780 | 6,310 | 9,739 | 10,921 | |
Personnel costs | 27,622 | 73,233 | 68,191 | 151,026 | |
Other operating expenses | 13,924 | 23,637 | 29,363 | 46,391 | |
Long-lived asset impairment | 1,290 | 0 | 1,471 | 0 | |
Gain on sale of title plant | (3,825) | 0 | (3,825) | 0 | |
Total operating expenses | 107,119 | 182,964 | 218,451 | 354,705 | |
Loss from operations | (18,266) | (59,220) | (55,230) | (118,754) | |
Other (expense) income: | |||||
Change in fair value of Warrant and Sponsor Covered Shares liabilities | 108 | 5,193 | 123 | 19,093 | |
Interest expense | (5,943) | (4,489) | (10,932) | (8,696) | |
Loss on sale of business | (11,591) | 0 | (11,591) | 0 | |
Loss before income taxes | (35,692) | (58,516) | (77,630) | (108,357) | |
Income tax expense | (185) | (136) | (370) | (321) | |
Net loss | $ (35,877) | $ (58,652) | $ (78,000) | $ (108,678) | |
Earnings per share: | |||||
Net loss per share attributable to stockholders - basic and diluted (in dollars per share) | $ (2.69) | $ (4.51) | $ (5.88) | $ (8.38) | |
Weighted average shares outstanding common stock - basic and diluted (in shares) | 13,324,215 | 12,994,869 | 13,259,894 | 12,975,354 | |
[1]Net premiums written includes revenues from a related party of $33.5 million and $33.7 million during the three months ended June 30, 2023 and 2022, respectively. Net premiums written includes revenues from a related party of $63.5 million and $61.3 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[2]Includes fee income from closings, escrow, title exams, ceding commission income, as well as premiums retained by Direct Agents.[3]Premiums retained by Third-Party Agents includes expenses associated with a related party of $27.1 million and $27.2 million during the three months ended June 30, 2023 and 2022, respectively. Premiums retained by Third-Party Agents includes expenses associated with a related party of $51.2 million and $49.6 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[4]This expense represents a deduction from the net premiums written for the amounts that are retained by Direct Agents and Third-Party Agents as compensation for their efforts to generate premium income for our Underwriting segment. The impact of premiums retained by our Direct Agents and the expense for reinsurance or co-insurance procured on Direct Agent sourced premiums are eliminated in consolidation. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Net premiums written (1) | [1] | $ 78,962 | $ 108,926 | $ 145,732 | $ 204,592 |
Premiums retained by Third-Party Agents (2) | [2],[3] | 58,164 | 74,638 | 107,348 | 135,240 |
Related Parties [Member] | |||||
Net premiums written (1) | 33,500 | 33,700 | 63,500 | 61,300 | |
Premiums retained by Third-Party Agents (2) | $ 27,100 | $ 27,200 | $ 51,200 | $ 49,600 | |
[1]Net premiums written includes revenues from a related party of $33.5 million and $33.7 million during the three months ended June 30, 2023 and 2022, respectively. Net premiums written includes revenues from a related party of $63.5 million and $61.3 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[2]Premiums retained by Third-Party Agents includes expenses associated with a related party of $27.1 million and $27.2 million during the three months ended June 30, 2023 and 2022, respectively. Premiums retained by Third-Party Agents includes expenses associated with a related party of $51.2 million and $49.6 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[3]This expense represents a deduction from the net premiums written for the amounts that are retained by Direct Agents and Third-Party Agents as compensation for their efforts to generate premium income for our Underwriting segment. The impact of premiums retained by our Direct Agents and the expense for reinsurance or co-insurance procured on Direct Agent sourced premiums are eliminated in consolidation. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net loss | $ (35,877) | $ (58,652) | $ (78,000) | $ (108,678) |
Other comprehensive loss, net of tax: | ||||
Unrealized gain (loss) on available-for-sale debt securities, net of tax | (483) | 237 | (149) | 237 |
Comprehensive loss | $ (36,360) | $ (58,415) | $ (78,149) | $ (108,441) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member] Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 0 | 12,933,912 | ||||||||
Balance at Dec. 31, 2021 | $ 0 | $ 0 | $ (399) | $ 0 | $ (399) | $ 1 | $ 543,102 | $ (192,179) | $ 0 | $ 350,924 |
Exercise of stock options (in shares) | 38,305 | |||||||||
Exercise of stock options | $ 0 | (97) | 0 | 0 | (97) | |||||
Vesting of RSU awards (in shares) | 1,712 | |||||||||
Stock-based compensation expense | $ 0 | 11,579 | 0 | 0 | 11,579 | |||||
Net loss | $ 0 | 0 | (50,026) | 0 | (50,026) | |||||
Balance (in shares) at Mar. 31, 2022 | 12,973,929 | |||||||||
Balance at Mar. 31, 2022 | $ 1 | 554,584 | (242,604) | 0 | 311,981 | |||||
Balance (in shares) at Dec. 31, 2021 | 0 | 12,933,912 | ||||||||
Balance at Dec. 31, 2021 | $ 0 | $ 0 | $ (399) | $ 0 | $ (399) | $ 1 | 543,102 | (192,179) | 0 | 350,924 |
Net loss | (108,678) | |||||||||
Balance (in shares) at Jun. 30, 2022 | 13,019,903 | |||||||||
Balance at Jun. 30, 2022 | $ 1 | 563,297 | (301,256) | 237 | 262,279 | |||||
Balance (in shares) at Mar. 31, 2022 | 12,973,929 | |||||||||
Balance at Mar. 31, 2022 | $ 1 | 554,584 | (242,604) | 0 | 311,981 | |||||
Exercise of stock options (in shares) | 27,700 | |||||||||
Exercise of stock options | $ 0 | 271 | 0 | 0 | 271 | |||||
Vesting of RSU awards (in shares) | 18,274 | |||||||||
Stock-based compensation expense | $ 0 | 8,442 | 0 | 0 | 8,442 | |||||
Net loss | 0 | 0 | (58,652) | 0 | (58,652) | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | 237 | 237 | |||||
Balance (in shares) at Jun. 30, 2022 | 13,019,903 | |||||||||
Balance at Jun. 30, 2022 | $ 1 | 563,297 | (301,256) | 237 | 262,279 | |||||
Balance (in shares) at Dec. 31, 2022 | 13,165,919 | |||||||||
Balance at Dec. 31, 2022 | $ 1 | 577,515 | (494,787) | (937) | 81,792 | |||||
Exercise of stock options (in shares) | 16,120 | |||||||||
Exercise of stock options | $ 0 | 182 | 0 | 0 | 182 | |||||
Vesting of RSU awards (in shares) | 37,338 | |||||||||
Stock-based compensation expense | $ 0 | 5,697 | 0 | 0 | 5,697 | |||||
Net loss | 0 | 0 | (42,123) | 0 | (42,123) | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | 334 | 334 | |||||
Balance (in shares) at Mar. 31, 2023 | 13,219,377 | |||||||||
Balance at Mar. 31, 2023 | $ 1 | 583,394 | (536,910) | (603) | 45,882 | |||||
Balance (in shares) at Dec. 31, 2022 | 13,165,919 | |||||||||
Balance at Dec. 31, 2022 | $ 1 | 577,515 | (494,787) | (937) | $ 81,792 | |||||
Exercise of stock options (in shares) | 17,774 | |||||||||
Net loss | $ (78,000) | |||||||||
Balance (in shares) at Jun. 30, 2023 | 13,350,733 | |||||||||
Balance at Jun. 30, 2023 | $ 1 | 584,525 | (572,787) | (1,086) | 10,653 | |||||
Balance (in shares) at Mar. 31, 2023 | 13,219,377 | |||||||||
Balance at Mar. 31, 2023 | $ 1 | 583,394 | (536,910) | (603) | 45,882 | |||||
Exercise of stock options (in shares) | 2,569 | |||||||||
Exercise of stock options | $ 0 | 1 | 0 | 0 | 1 | |||||
Vesting of RSU awards (in shares) | 128,787 | |||||||||
Stock-based compensation expense | $ 0 | 1,130 | 0 | 0 | 1,130 | |||||
Net loss | 0 | 0 | (35,877) | 0 | (35,877) | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | (483) | (483) | |||||
Balance (in shares) at Jun. 30, 2023 | 13,350,733 | |||||||||
Balance at Jun. 30, 2023 | $ 1 | $ 584,525 | $ (572,787) | $ (1,086) | $ 10,653 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flow from operating activities: | ||
Net loss | $ (78,000) | $ (108,678) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Interest expense - paid in kind | 5,228 | 4,960 |
Depreciation and amortization | 6,146 | 6,983 |
Stock-based compensation expense | 6,827 | 20,021 |
Amortization of debt issuance costs and original issue discount | 2,354 | 1,332 |
Provision for doubtful accounts (reduction for expected credit losses) | (116) | 495 |
Deferred income taxes | 294 | 229 |
Realized gain on debt securities | 0 | 18 |
Loss on disposal of fixed assets and title plants | 796 | 51 |
Loss on sale of business | 11,591 | 0 |
Gain on sale of title plant | (3,825) | 0 |
Net amortization of premiums and accretion of discounts on fixed maturity securities | (495) | 495 |
Change in fair value of Warrant and Sponsor Covered Shares liabilities | (123) | (19,093) |
Long-lived asset impairment | 1,471 | 0 |
Change in operating assets and liabilities, net of effects from sale of business and title plant: | ||
Trade and other receivables | 6,994 | 1,825 |
Prepaid expenses, deposits and other assets | 2,586 | 5,413 |
Lease right-of-use assets and lease liabilities | (1,147) | 733 |
Accounts payable | (787) | (3,625) |
Accrued expenses and other liabilities | (10,449) | (16,416) |
Liability for loss and loss adjustments expenses | 1,589 | 4,669 |
Net cash used in operating activities | (49,066) | (100,588) |
Cash flow from investing activities: | ||
Proceeds from calls and maturities of investments: Held-to-maturity | 110,486 | 16,981 |
Proceeds from calls and maturities of investments: Available-for-sale | 1,493 | 0 |
Proceeds from sales and principal repayments of investments: Mortgage loans | 251 | 890 |
Proceeds from sale of business, net of costs to sell and working capital adjustments | 6,765 | 0 |
Purchases of investments: Held-to-maturity | 0 | (2,103) |
Purchases of investments: Available-for-sale | (61,464) | (49,640) |
Proceeds from sales of fixed assets | 90 | 0 |
Purchases of fixed assets | (5,610) | (20,555) |
Proceeds from sale of title plants, net of costs to sell, and dividends from title plants | 7,241 | 311 |
Net cash provided by (used in) investing activities | 59,252 | (54,116) |
Cash flow from financing activities: | ||
Exercise of stock options | 183 | 174 |
Repayments on senior secured credit agreement | (9,208) | 0 |
Net cash provided by (used in) financing activities | (9,025) | 174 |
Net change in cash and cash equivalents and restricted cash | 1,161 | (154,530) |
Cash and cash equivalents and restricted cash at the beginning period | 81,383 | 383,828 |
Cash and cash equivalents and restricted cash at the end of period | 82,544 | 229,298 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 4,814 | 3,974 |
Supplemental disclosure of non-cash investing activities: | ||
Unrealized gain (loss) on available-for-sale debt securities | $ (149) | $ 237 |
Note 1 - Organization and Busin
Note 1 - Organization and Business Operations | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and business operations On July 28, 2021 ( March 2, 2021, March 18, 2021, 3 Unless the context otherwise requires, references herein to “company,” “Company,” “Doma,” “we,” “us,” “our” and similar terms refer to Doma Holdings, Inc. (f/k/a Capitol Investment Corp. V) and its consolidated subsidiaries. References to “Capitol” refer to our legal predecessor company prior to the consummation of the Business Combination. References to “Old Doma” refer to Old Doma prior to the Business Combination and to States Title, the wholly owned subsidiary of Doma, upon the consummation of the Business Combination. Headquartered in San Francisco, California, Doma is a real estate technology company that is architecting the future of real estate transactions. Using machine intelligence and our proprietary technology solutions, we are creating a vastly more simple, efficient, and affordable real estate closing experience for current and prospective homeowners, lenders, title agents and real estate professionals. We are licensed to underwrite title insurance in 47 states and the District of Columbia. Old Doma was initially formed as a wholly-owned subsidiary of States Title Inc. (“Legacy States Title”) to combine the operations of Legacy States Title and the retail agency and title insurance underwriting business (the “Acquired Business”) of North American Title Group, LLC (“NATG”), a subsidiary of Lennar Corporation (“Lennar”). We conduct our operations through two reportable segments, ( 1 2 7 |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Summary of significant accounting policies Basis of presentation The accompanying condensed consolidated balance sheet as of June 30, 2023 three six June 30, 2023 2022 six June 30, 2023 2022 These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not June 30, 2023 three six June 30, 2023 2022 six June 30, 2023 2022 three six June 30, 2023 not December 31, 2023 References to the Accounting Standard Codification (“ASC”) and Accounting Standard Updates (“ASU”) included hereinafter refer to the Accounting Standards Codification and Updates issued by the Financial Accounting Standards Board (“FASB”) as the source of authoritative U.S. GAAP. The accompanying condensed consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reverse stock split On June 29, 2023, 1 11:59 June 29, 2023 ( As a result of the Reverse Stock Split, every 25 shares of the Company’s issued and outstanding common stock were automatically converted into one No first one Proportionate adjustments were made to the number of shares issuable upon the exercise or vesting of all stock options, restricted stock awards, restricted stock units, performance restricted stock units or market-based awards (the “Stock-Based Awards”) and warrants outstanding at the Effective Time, which resulted in a proportional decrease in the number of shares of the Company’s common stock reserved for issuance upon exercise or vesting of such Stock-Based Awards and warrants. In the case of stock options and warrants, proportionate adjustments also included a proportional increase in the exercise price of such stock options and warrants. In addition, the number of shares reserved for issuance under the Company’s 2021 Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from the estimates made by management. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. Significant items subject to such estimates and assumptions include, but are not not 2 Trade and other receivables, net Trade and other receivables include the following: June 30, December 31, 2023 2022 Trade receivables $ 5,957 $ 7,168 Accrued net premiums written from Third-Party Agent referrals 3,125 2,409 Trade receivables, gross $ 9,082 $ 9,577 Allowance for credit losses (1,428 ) (1,488 ) Trade receivables, net $ 7,654 $ 8,089 WFG Deferred Payment receivable 10,928 — Receivable from HSCM 4,604 — Investment trade receivables — 10,065 Miscellaneous other receivables 1,777 3,138 Other receivables $ 17,309 $ 13,203 Trade and other receivables, net $ 24,963 $ 21,292 Trade receivables are generally due within thirty ninety 3. 2, Title plants Title plants are carried at cost, with costs incurred to maintain, update and operate title plants expensed as incurred. Because properly maintained title plants have indefinite lives and do not no may not not three six June 30, 2023 2022 June 9, 2023, Goodwill Goodwill represents the excess of the acquisition price over the fair value of assets acquired and liabilities assumed in a business combination. Goodwill is assigned to one October 1 not one first not not not Reinsurance The Company utilizes excess of loss and quota share reinsurance programs to limit its maximum loss exposure by reinsuring certain risks with other insurers. The Company has two Under the Excess of Loss Treaty, we cede liability over $15.0 million on all files. Excess of loss reinsurance coverage protects the Company from a large loss from a single loss occurrence. The Excess of Loss Treaty provides for ceding liability above the retention of $15.0 million for all policies up to a liability cap of $500.0 million. Under the Quota Share Treaty, effective February 24, 2021, Payments and recoveries on reinsured losses for the Company’s title insurance business were immaterial during the three six June 30, 2023 2022 Ceding commission from reinsurance transactions are presented as revenue within the “Escrow, other title-related fees and other” revenue line item in the consolidated statements of operations. Total premiums ceded in connection with reinsurance are netted against the written premiums in the consolidated statements of operations. Gross premiums earned and ceded premiums are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gross premiums earned 79,038 109,506 145,953 206,748 Ceded premiums (76 ) (580 ) (221 ) (2,156 ) Net premiums earned 78,962 108,926 145,732 204,592 Percentage of amount assumed to net 99.9 % 99.5 % 99.8 % 99.0 % Income taxes Our effective tax rate for the six June 30, 2023 2022 June 30, 2023 December 31, 2022 not not June 30, 2023 December 31, 2022 2018 2036. no 2030. 2019 2021 2018 2021 June 30, 2023 no June 30, 2023 Leases The Company determines if a contract contains a lease at inception of the contract. The Company's inventory of leases primarily consists of operating office space and office equipment leases which are recorded as a lease obligation liability and as a lease right-of-use asset on the accompanying condensed consolidated balance sheet. The lease right-of-use asset represents the Company's right to use each underlying asset for the lease term and the lease obligation liability represents the Company's obligation over the lease term. The Company's lease obligation is recorded at the present value of the lease payments based on the term of the lease. The Company applies an incremental borrowing rate of interest as of the effective date of adoption or the lease effective date equivalent to a collateralized borrowing rate with similar terms. The discount rate used to calculate the present value of our future minimum lease payments is based, where appropriate, on the Company's incremental borrowing rate of its current loan and security agreement. Lease expenses for lease payments, where appropriate, are recognized on a straight-line basis over the lease term. Short-term leases of 12 17 Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in financial institutions and our investment portfolio. The Company has not not Additionally, we manage the exposure to credit risk in our investment portfolio by investing in high quality securities and diversifying our holdings. Our investment portfolio is comprised of corporate debt, foreign government securities, certificates of deposit, single-family residential mortgage loans, and U.S. Treasuries. Emerging Growth Company and Smaller Reporting Company The Company is an “emerging growth company,” as defined in Section 2 2012 may not not not 404 not Further, Section 102 1 not not not may Additionally, the Company is a “smaller reporting company” as defined in Item 10 1 may two Recently issued and adopted accounting pronouncements In June 2016, No. 2016 13 326 December 15, 2019. December 15, 2022, January 1, 2022 4 no not 4. In February 2016, 2016 02, 2016 02” 2016 02 12 2016 02. 2020 05, 2016 02 December 15, 2021, December 15, 2022. January 1, 2022 840. not January 1, 2022. not 840. January 1, 2022. January 1, 2022, no not 17. In January 2020, 2019 12, 740 2019 12 740 2019 12 2019 12 December 15, 2020, December 15, 2020. 2019 12 December 15, 2021, December 15, 2022, 2019 12 January 1, 2022, not not Recently issued but not In August 2018, 2018 12, 944 December 15, 2022 June 2020, 2018 12 one 19. may not not not not |
Note 3 - Business Combinations
Note 3 - Business Combinations | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. Capitol Business Combination As described in Note 1, March 2, 2021, July 28, 2021. No Immediately after the Closing Date, 53,026 shares of common stock held by the Sponsor became subject to vesting, contingent upon the price of Doma’s common stock, par value $0.0001 (“Doma common stock”) exceeding certain thresholds (the “Sponsor Covered Shares”). As of June 30, 2023 On December 4, 2020, 25 16 Immediately after the Closing Date, 20% of the aggregate of our common stock held by certain investors (collectively, the “Sponsor”) two one 20 30 tenth one 20 30 tenth March 2, 2021 ( ten June 30, 2023 none no Also following the Closing Date, the Sellers have the contingent right to receive up to an additional number of shares equal to 5% of the sum of (i) the aggregate number of outstanding shares of our common stock (including restricted common stock, but excluding Sponsor Covered Shares), plus (ii) the maximum number of shares underlying our options that are vested and the maximum number of shares underlying warrants to purchase shares of Doma common stock issued as replacement warrants for Old Doma warrants, in each case of these clauses (i) and (ii), as of immediately following the Closing Date (the “Seller Earnout Shares”). The Seller Earnout Shares are contingently issuable to the Sellers in two one 20 30 fifth one 20 30 fifth none June 30, 2023 no June 30, 2023 Unless the context otherwise requires or otherwise indicates, share counts of Doma common stock provided in this Quarterly Report exclude both the Sponsor Covered Shares and the Seller Earnout Shares. North American Title Acquisition On January 7, 2019, third West Coast Local Retail Branch Sale On May 19, 2023, May 19, 2023 ( 12 In conjunction with the WFG Asset Sale, we recognized a pre-tax loss on sale of business of $11.6 million in the loss on sale of business line on the condensed consolidated statements of operations in the second 2023. June 30, 2023. 3 The total transaction costs, including legal fees, professional fees and other, incurred in connection with the WFG Asset Sale were $3.7 million. The following table presents the assets sold in connection with the WFG Asset Sale: Title plants $ 8,806 Fixed assets 549 Other assets 122 $ 9,477 In accordance with ASC 350, Goodwill The Company reviews goodwill for impairment annually on October 1 may June 30, 2023 no not The changes in the carrying value of goodwill, by segment, were as follows: Distribution Underwriting Total Beginning balance, January 1, 2023 $ 22,867 $ 23,413 $ 46,280 Allocation to WFG Asset Sale (19,271 ) - (19,271 ) Ending balance, June 30, 2023 $ 3,596 $ 23,413 $ 27,009 Accumulated impairment losses to goodwill were $65.2 million as of June 30, 2023 |
Note 4 - Investments and Fair V
Note 4 - Investments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Investment [Text Block] | 4. Investments and fair value measurements Held-to-maturity debt securities The cost basis, fair values and gross unrealized gains and losses of our held-to-maturity debt securities are as follows: June 30, 2023 December 31, 2022 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Corporate debt securities (1) $ 37,869 $ 2 $ (988 ) $ 36,883 $ 61,308 $ 5 $ (1,640 ) $ 59,673 U.S. Treasury securities 3,526 — (73 ) 3,453 24,152 — (165 ) 23,987 Foreign government securities — — — — 5,003 — (4 ) 4,999 Certificates of deposit 437 — — 437 305 — — 305 Total $ 41,832 $ 2 $ (1,061 ) $ 40,773 $ 90,768 $ 5 $ (1,809 ) $ 88,964 ( 1 The cost basis of held-to-maturity debt securities includes an adjustment for the amortization of premium or discount since the date of purchase. Held-to-maturity debt securities valued at approximately $2.7 million and $5.9 million were on deposit with various governmental authorities at June 30, 2023 December 31, 2022 The change in net unrealized gains and losses on held-to-maturity debt securities for the six June 30, 2023 2022 Net realized gains of held-to-maturity debt securities are computed using the specific identification method and are included in the condensed consolidated statements of operations. The following table presents certain information regarding contractual maturities of our held-to-maturity debt securities: June 30, 2023 Maturity % of % of Amortized Cost Total Fair Value Total One year or less $ 27,897 67 % $ 27,685 68 % After one year through five years 13,935 33 % 13,088 32 % Total $ 41,832 100 % $ 40,773 100 % There were no five may Net unrealized losses on held-to-maturity debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: June 30, 2023 December 31, 2022 Corporate U.S. Corporate U.S. Foreign debt Treasury debt Treasury government securities securities Total securities securities securities Total Less than 12 months Fair value $ — $ 2,727 $ 2,727 $ 48,798 $ 19,834 $ 4,999 $ 73,631 Unrealized losses $ — $ (67 ) $ (67 ) $ (614 ) $ (101 ) $ (4 ) $ (719 ) Greater than 12 months Fair value $ 20,576 $ 725 $ 21,301 $ 8,546 $ 4,125 $ — $ 12,671 Unrealized losses $ (988 ) $ (6 ) $ (994 ) $ (1,026 ) $ (64 ) $ — $ (1,090 ) Total Fair value $ 20,576 $ 3,452 $ 24,028 $ 57,344 $ 23,959 $ 4,999 $ 86,302 Unrealized losses $ (988 ) $ (73 ) $ (1,061 ) $ (1,640 ) $ (165 ) $ (4 ) $ (1,809 ) We believe that any unrealized losses on our held-to-maturity debt securities at June 30, 2023 no not not Under the CECL model, the Company recognizes credit losses for its held-to-maturity debt securities by setting up an allowance which is remeasured each reporting period, with changes in the allowance recorded in the condensed consolidated statements of operations. The Company establishes an allowance for credit losses based on a number of factors including the current economic conditions, management's expectations of future economic conditions and performance indicators, such as credit agency ratings and payment and default history. As of June 30, 2023 B2. For our held-to-maturity debt securities, the Company's model estimates expected credit loss by multiplying the exposure at default by both the probability of default and loss given default (“LGD”). The probability of default and LGD percentages are estimated after considering historical experience with global default rates and unsecured bond recovery rates for horizons aligning to the Company’s held-to-maturity debt security portfolio. The calculated allowance is recorded as an offset to held-to-maturity debt securities in the condensed consolidated balance sheets and in the investment, dividend and other income line on the condensed consolidated statements of operations. Rollforward of Credit Loss Allowance for Held-to-Maturity Debt Securities Beginning balance, January 1, 2023 $ 440 Current-period provision (reduction) for expected credit losses (186 ) Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for credit losses, June 30, 2023 $ 254 Rollforward of Credit Loss Allowance for Held-to-Maturity Debt Securities Beginning balance, January 1, 2022 $ 399 Current-period provision (reduction) for expected credit losses 44 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for credit losses, June 30, 2022 $ 443 The current-period provision for expected credit losses is due to changes in portfolio composition, the maturity of certain securities, and changes in the credit ratings of certain securities. Available-for-sale debt securities The cost basis, fair values and gross unrealized gains and losses of our available-for-sale debt securities are as follows: June 30, 2023 December 31, 2022 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Corporate debt securities (1) $ 25,949 $ — $ (438 ) $ 25,511 $ 27,251 $ — $ (363 ) $ 26,888 U.S. Treasury securities 30,670 — (612 ) 30,058 30,467 — (544 ) 29,923 Foreign government securities 1,487 — (35 ) 1,452 1,473 — (30 ) 1,443 Total $ 58,106 $ — $ (1,085 ) $ 57,021 $ 59,191 $ — $ (937 ) $ 58,254 ( 1 Includes both U.S. and foreign corporate debt securities. The cost basis of available-for-sale debt securities includes an adjustment for the amortization of premium or discount since the date of purchase. The change in net unrealized gains on available-for-sale debt securities for the six June 30, 2023 2022 June 30, 2023 Net realized gains on disposition of available-for-sale debt securities are computed using the specific identification method and are included in the condensed consolidated statements of operations. The following table presents certain information regarding contractual maturities of our available-for-sale debt securities: Maturity June 30, 2023 % of % of Amortized Cost Total Fair Value Total One year or less $ 16,690 29 % $ 16,422 29 % After one year through five years 41,416 71 % 40,599 71 % Total $ 58,106 100 % $ 57,021 100 % There were no five may Net unrealized losses on available-for-sale debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: June 30, 2023 December 31, 2022 Corporate U.S. Foreign Corporate U.S. Foreign debt Treasury government debt Treasury government securities securities securities Total securities securities securities Total Less than 12 months Fair value $ 25,511 $ 30,057 $ 1,453 $ 57,021 $ 26,886 $ 29,923 $ 1,444 $ 58,253 Unrealized losses $ (438 ) $ (612 ) $ (35 ) $ (1,085 ) $ (363 ) $ (544 ) $ (30 ) $ (937 ) Greater than 12 months Fair value $ — $ — $ — $ — $ — $ — $ — $ — Unrealized losses $ — $ — $ — $ — $ — $ — $ — $ — Total Fair value $ 25,511 $ 30,057 $ 1,453 $ 57,021 $ 26,886 $ 29,923 $ 1,444 $ 58,253 Unrealized losses $ (438 ) $ (612 ) $ (35 ) $ (1,085 ) $ (363 ) $ (544 ) $ (30 ) $ (937 ) We believe that any unrealized losses on our available-for-sale debt securities at June 30, 2023 no not not As of June 30, 2023 not Mortgage loans The mortgage loan portfolio as of June 30, 2023 six June 30, 2023 not Mortgage loans, which include contractual terms to maturity of thirty not may six June 30, 2023 The cost and estimated fair value of mortgage loans are as follows: June 30, 2023 December 31, 2022 Estimated Fair Estimated Fair Cost Value Cost Value Mortgage loans $ 46 $ 46 $ 297 $ 297 Total $ 46 $ 46 $ 297 $ 297 Investment income Investment income from securities consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Available-for-sale debt securities $ 536 $ 63 $ 1,067 $ 63 Held-to-maturity debt securities 525 358 1,282 746 Mortgage loans 1 18 4 40 Other 300 6 432 125 Total $ 1,362 $ 445 $ 2,785 $ 974 Accrued interest receivable Accrued interest receivable from investments is included in trade and other receivables, net in the condensed consolidated balance sheets. The following table reflects the composition of accrued interest receivable for investments: June 30, 2023 December 31, 2022 Corporate debt securities $ 633 $ 834 U.S. Treasury securities 224 281 Foreign government securities 5 42 Accrued interest receivable on investment securities $ 862 $ 1,157 The Company does not three Fair value measurement ASC 820, 820” 1 3 The three 820 Level 1 Quoted prices (unadjusted) in active markets for identical asset or liability at the measurement date are used. Level 2 Pricing inputs are other than quoted prices included within Level 1 2 not Level 3 Pricing inputs are unobservable and include situations where there is little, if any, market activity for the asset or liability. The inputs used in determination of fair value require significant judgment and estimation. When fair value inputs fall within different levels of the fair value hierarchy, the level in the fair value hierarchy within which the asset or liability is categorized in its entirety is determined based on the lowest level input that is significant to the asset or liability. Assessing the significance of a particular input to the valuation of an asset or liability in its entirety requires judgment and considers factors specific to the asset or liability. The categorization of an asset or liability within the hierarchy is based upon the pricing transparency of the asset or liability and does not The following table summarizes the Company’s investments measured at fair value. The Company’s available-for-sale securities in the following table are recorded at fair value on the accompanying condensed consolidated balance sheets. Assets June 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Held-to-maturity: Corporate debt securities $ — $ 36,883 $ — $ 36,883 $ — $ 59,673 $ — $ 59,673 U.S. Treasury securities 3,453 — — 3,453 23,987 — — 23,987 Foreign government securities — — — — — 4,999 — 4,999 Certificate of deposits — 437 — 437 — 305 — 305 Total held-to-maturity debt securities $ 3,453 $ 37,320 $ — $ 40,773 $ 23,987 $ 64,977 $ — $ 88,964 Available-for-sale: Corporate debt securities $ — $ 25,511 $ — $ 25,511 $ — $ 26,888 $ — $ 26,888 U.S. Treasury securities 30,058 — — 30,058 29,923 — — 29,923 Foreign government securities — 1,452 — 1,452 — 1,443 — 1,443 Total available-for-sale debt securities $ 30,058 $ 26,963 $ — $ 57,021 $ 29,923 $ 28,331 $ — $ 58,254 Mortgage loans $ — $ — $ 46 $ 46 $ — $ — $ 297 $ 297 Total $ 33,511 $ 64,283 $ 46 $ 97,840 $ 53,910 $ 93,308 $ 297 $ 147,515 The Company classifies U.S. Treasury bonds within Level 1 2 may 3 The Company’s liabilities in the following table are recorded at fair value on the accompanying condensed consolidated balance sheets. The following table summarizes the Company’s liabilities measured at fair value: Liabilities June 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Public Warrants $ 230 $ — $ — $ 230 $ 230 $ — $ — $ 230 Private Placement Warrants — 117 — 117 — 117 — 117 Sponsor Covered Shares — — 96 96 — — 219 219 Total $ 230 $ 117 $ 96 $ 443 $ 230 $ 117 $ 219 $ 566 The Company considers the Public Warrants to be Level 1 June 30, 2023. 2. The fair value of the Sponsor Covered Shares was determined using a Monte Carlo simulation valuation model using a distribution of potential stock price outcomes on a daily basis over the original 10-year vesting period. The unobservable significant inputs to the valuation model were as follows: June 30, 2023 Current stock price $ 4.94 Expected volatility 65.0 % Risk-free interest rate 4.0 % Expected term (years) 8.2 Expected dividend yield — % Annual change in control probability 2.0 % The changes for Level 3 Sponsor Covered Shares Fair value as of December 31, 2022 $ 219 Change in fair value of Sponsor Covered Shares (123 ) Fair value as of June 30, 2023 $ 96 There were no 1 2 three six June 30, 2023 December 31, 2022 no 3 three six June 30, 2023 December 31, 2022 Cash and cash equivalents, restricted cash, trade and other receivables, prepaid expenses and other assets, accounts payable, and accrued expenses and other liabilities approximate fair value and are therefore excluded from the leveling table above. The cost basis is determined to approximate fair value due to the short term duration of these financial instruments. |
Note 5 - Revenue Recognition
Note 5 - Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 5. Revenue recognition Disaggregation of revenue Our revenue consists of: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue Stream Statements of Operations Classification Segment Total Revenue Total Revenue Revenue from insurance contracts: Direct Agents title insurance premiums Net premiums written Underwriting $ 8,261 $ 19,328 $ 15,176 $ 41,741 Third-Party Agent title insurance premiums Net premiums written Underwriting 70,701 89,598 130,556 162,851 Total revenue from insurance contracts $ 78,962 $ 108,926 $ 145,732 $ 204,592 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Distribution $ 5,250 $ 10,537 $ 9,425 $ 22,368 Other title-related fees and income Escrow, title-related and other fees Distribution 9,375 19,476 17,070 41,925 Other title-related fees and income Escrow, title-related and other fees Underwriting 595 535 1,160 1,338 Other title-related fees and income Escrow, title-related and other fees Elimination (1) (6,928 ) (16,182 ) (12,765 ) (35,152 ) Total revenue from contracts with customers $ 8,292 $ 14,366 $ 14,890 $ 30,479 Other revenue: Interest and investment income (2) Investment, dividend and other income Distribution $ 542 $ 34 $ 1,065 $ 75 Interest and investment income (2) Investment, dividend and other income Underwriting 1,218 508 2,138 917 Realized gains and losses, net Investment, dividend and other income Distribution (168 ) (67 ) (609 ) (94 ) Realized gains and losses, net Investment, dividend and other income Underwriting 7 (23 ) 5 (18 ) Total other revenues $ 1,599 $ 452 $ 2,599 $ 880 Total revenues $ 88,853 $ 123,744 $ 163,221 $ 235,951 ( 1 Premiums retained by Direct Agents are recognized as income to the Distribution segment, and expense to the Underwriting segment. Upon consolidation, the impact of these internal segment transactions is eliminated. See Note 7. ( 2 Interest and investment income consists primarily of interest payments received on held-to-maturity debt securities, available-for-sale debt securities and mortgage loans. |
Note 6 - Liability for Loss and
Note 6 - Liability for Loss and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 6. Liability for loss and loss adjustment expenses A summary of the changes in the liability for loss and loss adjustment expenses for the six June 30, 2023 2022 June 30, 2023 2023 2022 Balance at the beginning of the year $ 82,070 $ 80,267 Provision for claims related to: Current year $ 7,582 $ 13,025 Prior years 2,157 (2,104 ) Total provision for claims $ 9,739 $ 10,921 Paid losses related to: Current year $ (248 ) $ (1,608 ) Prior years (7,901 ) (4,644 ) Total paid losses $ (8,149 ) $ (6,252 ) Balance at the end of the period $ 83,660 $ 84,936 Provision for claims as a percentage of net written premiums 6.7 % 5.3 % We continually update our liability for loss and loss adjustment expense estimates as new information becomes known, new loss patterns emerge, or as other contributing factors are considered and incorporated into the analysis. Estimating future title loss payments is difficult because of the complex nature of title claims, the long periods of time over which claims are paid, significantly varying dollar amounts of individual claims, and other factors. Current year incurred and paid losses includes current year reported claims as well as estimated future losses on such claims. For the six June 30, 2023 2016 2022 2023, six June 30, 2022 2018, 2020, 2021. six June 30, 2022 The liability for loss and loss adjustment expenses of $83.7 million and $82.1 million, as of June 30, 2023 December 31, 2022 not |
Note 7 - Segment Information
Note 7 - Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. Segment information The Company’s chief operating decision maker reviews financial performance and makes decisions about the allocation of resources for our operations through two 1 2 A description of each of our reportable segments is as follows. • Distribution: Our Distribution segment reflects our Direct Agents operations of acquiring customer orders and providing title and escrow services for real estate closing transactions. We acquire customers through our partnerships with realtors, attorneys and non-centralized loan originators via a 53-branch footprint across seven states as of June 30, 2023 18 no • Underwriting: Our Underwriting segment reflects the results of our title insurance underwriting business, including policies referred through our Direct Agents and Third-Party Agents channels. The referring agents typically retain approximately 82% - 84% of the policy premiums in exchange for their services. The retention varies by state and agent. We use adjusted gross profit as the primary profitability measure for making decisions regarding ongoing operations. Adjusted gross profit is calculated by subtracting direct costs, such as premiums retained by agents, direct labor, other direct costs, and provision for claims, from total revenue. Our chief operating decision maker evaluates the results of the aforementioned segments on a pre-tax basis. Segment adjusted gross profit excludes certain items which are included in net loss, such as depreciation and amortization, corporate and other expenses, goodwill impairment, long-lived asset impairment, change in the fair value of Warrant and Sponsor Covered Shares liabilities, interest expense, loss on sale of business, gain on sale of title plant, and income tax expense, as these items are not not not The following table summarizes the operating results of the Company’s reportable segments: Three Months Ended June 30, 2023 Distribution Underwriting Eliminations Consolidated total Net premiums written $ — $ 78,962 $ — $ 78,962 Escrow, other title-related fees and other (1) 14,625 595 (6,928 ) 8,292 Investment, dividend and other income 374 1,225 — 1,599 Total revenue $ 14,999 $ 80,782 $ (6,928 ) $ 88,853 Premiums retained by agents (2) $ — $ 65,092 $ (6,928 ) $ 58,164 Direct labor (3) 7,045 2,886 — 9,931 Other direct costs (4) 3,551 2,609 — 6,160 Provision for claims 451 5,329 — 5,780 Adjusted gross profit $ 3,952 $ 4,866 $ — $ 8,818 Six Months Ended June 30, 2023 Distribution Underwriting Eliminations Consolidated total Net premiums written $ — $ 145,732 $ — $ 145,732 Escrow, other title-related fees and other (1) 26,495 1,160 (12,765 ) 14,890 Investment, dividend and other income 456 2,143 — 2,599 Total revenue $ 26,951 $ 149,035 $ (12,765 ) $ 163,221 Premiums retained by agents (2) $ — $ 120,113 $ (12,765 ) $ 107,348 Direct labor (3) 17,095 5,773 — 22,868 Other direct costs (4) 5,563 4,414 — 9,977 Provision for claims 1,251 8,488 — 9,739 Adjusted gross profit $ 3,042 $ 10,247 $ — $ 13,289 Three Months Ended June 30, 2022 Distribution Underwriting Eliminations Consolidated total Net premiums written $ — $ 108,926 $ — $ 108,926 Escrow, other title-related fees and other (1) 30,013 535 (16,182 ) 14,366 Investment, dividend and other income (33 ) 485 — 452 Total revenue $ 29,980 $ 109,946 $ (16,182 ) $ 123,744 Premiums retained by agents (2) $ — $ 90,820 $ (16,182 ) $ 74,638 Direct labor (3) 21,091 2,799 — 23,890 Other direct costs (4) 5,374 2,642 — 8,016 Provision for claims 1,257 5,053 — 6,310 Adjusted gross profit $ 2,258 $ 8,632 $ — $ 10,890 Six Months Ended June 30, 2022 Distribution Underwriting Eliminations Consolidated total Net premiums written $ — $ 204,592 $ — $ 204,592 Escrow, other title-related fees and other (1) 64,293 1,338 (35,152 ) 30,479 Investment, dividend and other income (19 ) 899 — 880 Total revenue $ 64,274 $ 206,829 $ (35,152 ) $ 235,951 Premiums retained by agents (2) $ — $ 170,392 $ (35,152 ) $ 135,240 Direct labor (3) 46,644 5,044 — 51,688 Other direct costs (4) 11,433 5,409 — 16,842 Provision for claims 1,856 9,065 — 10,921 Adjusted gross profit $ 4,341 $ 16,919 $ — $ 21,260 ( 1 Includes fee income from closings, escrow, title exams, ceding commission income, as well as premiums retained by Direct Agents. ( 2 This expense represents a deduction from the net premiums written for the amounts that are retained by Direct Agents and Third-Party Agents as compensation for their efforts to generate premium income for our Underwriting segment. The impact of premiums retained by our Direct Agents and the expense for reinsurance or co-insurance procured on Direct Agent sourced premiums are eliminated in consolidation. ( 3 Includes all compensation costs, including salaries, bonuses, incentive payments, and benefits, for personnel involved in the direct fulfillment of title and/or escrow services. Direct labor excludes severance costs. ( 4 Includes title examination expense, office supplies, and premium and other taxes. The following table provides a reconciliation of the Company’s total reportable segments’ adjusted gross profit to its total loss before income taxes: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Adjusted gross profit $ 8,818 $ 10,890 $ 13,289 $ 21,260 Depreciation and amortization 3,071 3,747 6,146 6,983 Corporate and other expenses (1) 26,548 66,363 64,727 133,031 Long-lived asset impairment 1,290 — 1,471 — Change in fair value of Warrant and Sponsor Covered Shares liabilities (108 ) (5,193 ) (123 ) (19,093 ) Interest expense 5,943 4,489 10,932 8,696 Loss on sale of business 11,591 — 11,591 — Gain on sale of title plant (3,825 ) — (3,825 ) — Loss before income taxes $ (35,692 ) $ (58,516 ) $ (77,630 ) $ (108,357 ) ( 1 Includes corporate and other costs not As of June 30, 2023 December 31, 2022 three six June 30, 2023 three six June 30, 2022 |
Note 8 - Debt
Note 8 - Debt | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Debt Senior secured credit agreement On December 31, 2020, January 29, 2021 ( five first June 30, 2023 24 not On May 19, 2023, third five The estimated fair value of the Senior Debt at June 30, 2023 No 3 |
Note 9 - Stock Compensation Exp
Note 9 - Stock Compensation Expense | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 9. Stock compensation expense The Company issued stock options (incentive stock options (“ISOs”), non-statutory stock options (“NSOs”) and restricted stock awards (“RSAs”) to employees and key advisors under the Company’s 2019 not one may one The Company issues restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”) under the 2021 first twelve fourth In June 2022, 2021 90 one third sixteen fourth In May 2023, May 20, 2024; not not 718, second 2023, June 30, 2023 For the three June 30, 2022, Stock-based compensation expense for the three June 30, 2023 2022 six June 30, 2023 2022 Stock options (ISO and NSO) During the six June 30, 2023 Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Life Intrinsic Stock Options Price ($) (In years) Value ($) Outstanding as of December 31, 2022 703,422 $ 14.46 6.74 $ 191 Granted — — — Exercised (17,774 ) 13.41 0.51 Cancelled or forfeited (199,108 ) 14.46 1.59 Outstanding as of June 30, 2023 486,540 $ 14.50 5.73 $ 60 Options exercisable as of June 30, 2023 448,186 $ 14.23 5.60 $ 60 As of June 30, 2023 RSAs, RSUs and PRSUs During the six June 30, 2023 Number of Average RSAs, RSUs Grant Date and PRSUs Fair Value ($) Non-vested at December 31, 2022 1,619,222 $ 44.19 Granted 312,716 10.81 Vested (244,412 ) 56.30 Adjustment for PRSUs expected to vest — — Cancelled or Forfeited (365,080 ) 60.45 Non-vested at June 30, 2023 1,322,446 $ 29.57 As of June 30, 2023 Market-based awards The market-based awards were measured at fair market value on the grant date, and stock-based compensation expense is recognized as the shares vest with a corresponding offset credited to additional paid-in-capital. The fair value of the market-based awards was determined using a Monte Carlo simulation valuation model using a distribution of potential stock price outcomes on a daily basis over the original 4-year vesting period. The unobservable significant inputs to the valuation model at the time of award issuance were as follows: Stock price at issuance $ 23.00 Expected volatility 75.0 % Risk-free interest rate 3.14 % Expected term 3.9 Expected dividend yield — % During the six June 30, 2023 Number of Average Market-based Grant Date awards Fair Value ($) Non-vested at December 31, 2022 97,413 $ 7.92 Granted — — Vested — — Cancelled or Forfeited — — Non-vested at June 30, 2023 97,413 $ 7.92 As of June 30, 2023 |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. Earnings per share The calculation of the basic and diluted EPS is as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator Net loss attributable to Doma Holdings, Inc. $ (35,877 ) $ (58,652 ) $ (78,000 ) $ (108,678 ) Denominator Weighted-average common shares – basic and diluted 13,324,215 12,994,869 13,259,894 12,975,354 Net loss per share attributable to stockholders Basic and diluted $ (2.69 ) $ (4.51 ) $ (5.88 ) $ (8.38 ) As we have reported net loss for each of the periods presented, all potentially dilutive securities are antidilutive. The following potential outstanding shares of common stock and contingently issuable shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the contingent criteria has not As of June 30, 2023 2022 Outstanding stock options 486,540 825,096 Warrants for common and preferred stock 693,333 720,910 RSA’s, RSU’s and PRSU’s 1,322,446 1,731,217 Market-based awards 97,413 97,413 Sponsor Covered Shares and Seller Earnout Shares 702,787 713,051 Total antidilutive securities 3,302,519 4,087,687 |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 11. Related party transactions Equity held by Lennar In connection with the North American Title Acquisition, subsidiaries of Lennar were granted equity in the Company. As of June 30, 2023 Transactions with Lennar In the routine course of its business, Doma Title Insurance, Inc. (“DTI”) underwrites title insurance policies for a subsidiary of Lennar. The Company recorded the following revenues and premiums retained by Third-Party Agents from these transactions, which are included within our Underwriting segment: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues $ 33,508 $ 33,663 $ 63,486 $ 61,331 Premiums retained by Third-Party Agents 27,106 27,150 51,201 49,610 June 30, 2023 December 31, 2022 Net receivables $ 3,183 $ 4,175 These amounts are included in trade and other receivables, net in the Company’s condensed consolidated balance sheets. On April 27, 2023, September 1, 2023 September 30, 2026. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. Commitments and contingencies Legal matters The Company is subject to claims and litigation matters in the ordinary course of business. Management does not Commitments and other contingencies The Company also administers escrow deposits as a service to customers, a substantial portion of which are held at third June 30, 2023 December 31, 2022 not not not See Note 17 |
Note 13 - Accrued Expenses and
Note 13 - Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 13. Accrued expenses and other liabilities Accrued expenses and other liabilities include the following: June 30, December 31, 2023 2022 Employee benefits $ 4,415 $ 7,140 Severance 662 5,749 Contract terminations 3,219 5,248 Premium taxes 1,341 3,862 Employee compensation 3,769 3,380 Other 6,072 3,513 Total accrued expenses and other liabilities $ 19,478 $ 28,892 Workforce reduction plans In 2022, three 2022 December 31, 2022 September 30, 2023. Liabilities associated with the Reduction Plans are included in accrued expenses and other liabilities in the condensed consolidated balance sheet as of June 30, 2023 The following table summarizes activity related to the liabilities associated with the Reduction Plans: Total Balance as of January 1, 2023 $ 5,749 Charges incurred (1) 8,087 Payments and other adjustments (13,174 ) Balance as of June 30, 2023 $ 662 ( 1 Charges incurred include interim salary for employees with known departure dates, employee benefits, severance, payroll taxes and related facilitation costs offset by forfeitures of bonus. In the three six June 30, 2023 Contract terminations Associated with the Company’s Reduction Plans and vendor management initiatives during the year ended December 31, 2022 three June 30, 2023 2022 June 30, 2023 |
Note 14 - Employee Benefit Plan
Note 14 - Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Defined Contribution Plan [Text Block] | 14. Employee benefit plan The Company sponsors a defined contribution 401 may 401 1986. 18 first January 1, 2022, first For the three June 30, 2023 2022, six June 30, 2023 2022 |
Note 15 - Research and Developm
Note 15 - Research and Development | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | 15. Research and development For the three six June 30, 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Research and development expenses incurred $ 2,127 $ 5,485 $ 3,354 $ 11,088 Capitalized internally developed software costs 2,077 8,858 4,736 17,210 Research and development spend, inclusive of capitalized internally developed software cost $ 4,204 $ 14,343 $ 8,090 $ 28,298 Our research and development costs reflect certain payroll-related costs of employees directly associated with such activities and certain software subscription costs, which are included in personnel costs and other operating expenses, respectively, in the condensed consolidated statements of operations. Capitalized internally developed software and acquired software costs are included in fixed assets, net in the condensed consolidated balance sheets. |
Note 16 - Warrant Liabilities
Note 16 - Warrant Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Warrant Liabilities [Text Block] | 16. Warrant liabilities As a result of the Business Combination, the Company assumed, as of the Closing Date, Public Warrants to purchase an aggregate of 460,000 shares of our common stock and Private Placement Warrants to purchase an aggregate of 233,333 shares of our common stock. Twenty five one The Warrants became exercisable commencing on December 4, 2021, one 1934, Redemption of Public Warrants when the price per share of our common stock equals or exceeds $450.00 The Company may • in whole and not • at a price of $0.01 per Public Warrant; • upon not 30 • if, and only if, the last reported sale price of our common stock equals or exceeds $450.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like and for certain issuances of common stock and equity-linked securities as described above) for any 20 30 three The Company will not 30 may Redemption of Public Warrants when the price per share of our common stock equals or exceeds $250.00 The Company may • in whole and not • at $0.10 per Public Warrant upon a minimum of 30 • if, and only if, the last reported sale price of our common stock equals or exceeds $250.00 per share (as adjusted per stock splits, stock dividends, reorganizations, reclassifications, recapitalizations and the like and for certain issuances of common stock and equity-linked securities as described above) on the trading day prior to the date on which the Company sends the notice of redemption to the Public Warrant holders; and • if, and only if, the last reported sale price of common stock is less than $450.00 per share (as adjusted for stock for stock splits, stock dividends, reorganizations, recapitalizations and the like and for certain issuances of common stock and equity-linked securities), the Private Placement Warrants are also concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. Beginning on the date the notice of redemption is given until the Public Warrants are redeemed or exercised, holders may ten no The Private Placement Warrants are identical to the Public Warrants except that the Private Placement Warrants, (i) subject to limited exceptions, are not may December 1, 2020, On September 3, 2021, 1 No. 333 258942 September 8, 2021; March 30, 2022), June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 815 40 |
Note 17 - Leases
Note 17 - Leases | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 17. The Company has operating leases consisting of office space and office equipment. Lease terms and options vary in the Company's operating leases dependent upon the underlying leased asset. We exclude options to extend or terminate a lease from our recognition as part of our right-of-use assets and lease liabilities until those options are known and/or executed, as we typically do not June 30, 2023 may no Six Months Ended June 30, 2023 2022 Components of lease expense: Operating lease expense $ 4,140 $ 6,021 Less sublease income (124 ) (161 ) Net lease expense 4,016 5,860 Cash flow information related to leases: Operating cash outflow from operating leases during the six months ended June 30, 2023 and 2022 $ 5,445 $ 5,384 June 30, 2023 June 30, 2022 Right-of-use assets obtained during the six months ended June 30, 2023 and 2022 in exchange for new operating lease liabilities $ 894 7,961 Weighted average remaining lease term (years) 3.87 4.41 Weighted average discount rate 10 % 10 % Maturities of lease liabilities: June 30, 2023 2023 $ 4,098 2024 7,411 2025 5,738 2026 4,530 2027 3,160 Thereafter 1,304 Total lease payments 26,241 Less imputed interest (4,501 ) Lease liabilities $ 21,740 During the three June 30, 2023 360, 2 three June 30, 2022 |
Note 18 - Subsequent Events
Note 18 - Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 18. Subsequent events Local Retail Branch Sales In separate transactions, on July 14, 2023, July 28, 2023, not no The Company determined that the execution of these agreements, in combination with the WFG Asset Sale discussed in Note 3 205 20 45, 10 September 30, 2023. 2023 On August 2, 2023, “2023 The 2023 2023 2023 December 31, 2023. August On August 3, 2023, six four 18 In the preparation of the accompanying condensed consolidated financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements, noting no |
Item 5 - Other Information
Item 5 - Other Information | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Issuer Rule 10b5-1, Material Terms [Text Block] | 5. On August 3, 2023, August 3, 2023) may August 3, 2023, ( one one 50% six 4 18 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation The accompanying condensed consolidated balance sheet as of June 30, 2023 three six June 30, 2023 2022 six June 30, 2023 2022 These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not June 30, 2023 three six June 30, 2023 2022 six June 30, 2023 2022 three six June 30, 2023 not December 31, 2023 References to the Accounting Standard Codification (“ASC”) and Accounting Standard Updates (“ASU”) included hereinafter refer to the Accounting Standards Codification and Updates issued by the Financial Accounting Standards Board (“FASB”) as the source of authoritative U.S. GAAP. The accompanying condensed consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Stockholders' Equity, Policy [Policy Text Block] | Reverse stock split On June 29, 2023, 1 11:59 June 29, 2023 ( As a result of the Reverse Stock Split, every 25 shares of the Company’s issued and outstanding common stock were automatically converted into one No first one Proportionate adjustments were made to the number of shares issuable upon the exercise or vesting of all stock options, restricted stock awards, restricted stock units, performance restricted stock units or market-based awards (the “Stock-Based Awards”) and warrants outstanding at the Effective Time, which resulted in a proportional decrease in the number of shares of the Company’s common stock reserved for issuance upon exercise or vesting of such Stock-Based Awards and warrants. In the case of stock options and warrants, proportionate adjustments also included a proportional increase in the exercise price of such stock options and warrants. In addition, the number of shares reserved for issuance under the Company’s 2021 |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from the estimates made by management. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. Significant items subject to such estimates and assumptions include, but are not not 2 |
Receivable [Policy Text Block] | Trade and other receivables, net Trade and other receivables include the following: June 30, December 31, 2023 2022 Trade receivables $ 5,957 $ 7,168 Accrued net premiums written from Third-Party Agent referrals 3,125 2,409 Trade receivables, gross $ 9,082 $ 9,577 Allowance for credit losses (1,428 ) (1,488 ) Trade receivables, net $ 7,654 $ 8,089 WFG Deferred Payment receivable 10,928 — Receivable from HSCM 4,604 — Investment trade receivables — 10,065 Miscellaneous other receivables 1,777 3,138 Other receivables $ 17,309 $ 13,203 Trade and other receivables, net $ 24,963 $ 21,292 Trade receivables are generally due within thirty ninety 3. 2, |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block] | Title plants Title plants are carried at cost, with costs incurred to maintain, update and operate title plants expensed as incurred. Because properly maintained title plants have indefinite lives and do not no may not not three six June 30, 2023 2022 June 9, 2023, |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess of the acquisition price over the fair value of assets acquired and liabilities assumed in a business combination. Goodwill is assigned to one October 1 not one first not not not |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance The Company utilizes excess of loss and quota share reinsurance programs to limit its maximum loss exposure by reinsuring certain risks with other insurers. The Company has two Under the Excess of Loss Treaty, we cede liability over $15.0 million on all files. Excess of loss reinsurance coverage protects the Company from a large loss from a single loss occurrence. The Excess of Loss Treaty provides for ceding liability above the retention of $15.0 million for all policies up to a liability cap of $500.0 million. Under the Quota Share Treaty, effective February 24, 2021, Payments and recoveries on reinsured losses for the Company’s title insurance business were immaterial during the three six June 30, 2023 2022 Ceding commission from reinsurance transactions are presented as revenue within the “Escrow, other title-related fees and other” revenue line item in the consolidated statements of operations. Total premiums ceded in connection with reinsurance are netted against the written premiums in the consolidated statements of operations. Gross premiums earned and ceded premiums are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gross premiums earned 79,038 109,506 145,953 206,748 Ceded premiums (76 ) (580 ) (221 ) (2,156 ) Net premiums earned 78,962 108,926 145,732 204,592 Percentage of amount assumed to net 99.9 % 99.5 % 99.8 % 99.0 % |
Income Tax, Policy [Policy Text Block] | Income taxes Our effective tax rate for the six June 30, 2023 2022 June 30, 2023 December 31, 2022 not not June 30, 2023 December 31, 2022 2018 2036. no 2030. 2019 2021 2018 2021 June 30, 2023 no June 30, 2023 |
Lessee, Leases [Policy Text Block] | Leases The Company determines if a contract contains a lease at inception of the contract. The Company's inventory of leases primarily consists of operating office space and office equipment leases which are recorded as a lease obligation liability and as a lease right-of-use asset on the accompanying condensed consolidated balance sheet. The lease right-of-use asset represents the Company's right to use each underlying asset for the lease term and the lease obligation liability represents the Company's obligation over the lease term. The Company's lease obligation is recorded at the present value of the lease payments based on the term of the lease. The Company applies an incremental borrowing rate of interest as of the effective date of adoption or the lease effective date equivalent to a collateralized borrowing rate with similar terms. The discount rate used to calculate the present value of our future minimum lease payments is based, where appropriate, on the Company's incremental borrowing rate of its current loan and security agreement. Lease expenses for lease payments, where appropriate, are recognized on a straight-line basis over the lease term. Short-term leases of 12 17 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in financial institutions and our investment portfolio. The Company has not not Additionally, we manage the exposure to credit risk in our investment portfolio by investing in high quality securities and diversifying our holdings. Our investment portfolio is comprised of corporate debt, foreign government securities, certificates of deposit, single-family residential mortgage loans, and U.S. Treasuries. |
Emerging Growth Company [Policy Text Block] | Emerging Growth Company and Smaller Reporting Company The Company is an “emerging growth company,” as defined in Section 2 2012 may not not not 404 not Further, Section 102 1 not not not may Additionally, the Company is a “smaller reporting company” as defined in Item 10 1 may two |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently issued and adopted accounting pronouncements In June 2016, No. 2016 13 326 December 15, 2019. December 15, 2022, January 1, 2022 4 no not 4. In February 2016, 2016 02, 2016 02” 2016 02 12 2016 02. 2020 05, 2016 02 December 15, 2021, December 15, 2022. January 1, 2022 840. not January 1, 2022. not 840. January 1, 2022. January 1, 2022, no not 17. In January 2020, 2019 12, 740 2019 12 740 2019 12 2019 12 December 15, 2020, December 15, 2020. 2019 12 December 15, 2021, December 15, 2022, 2019 12 January 1, 2022, not not Recently issued but not In August 2018, 2018 12, 944 December 15, 2022 June 2020, 2018 12 one 19. may not not not not |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Trade and Other Receivables [Table Text Block] | June 30, December 31, 2023 2022 Trade receivables $ 5,957 $ 7,168 Accrued net premiums written from Third-Party Agent referrals 3,125 2,409 Trade receivables, gross $ 9,082 $ 9,577 Allowance for credit losses (1,428 ) (1,488 ) Trade receivables, net $ 7,654 $ 8,089 WFG Deferred Payment receivable 10,928 — Receivable from HSCM 4,604 — Investment trade receivables — 10,065 Miscellaneous other receivables 1,777 3,138 Other receivables $ 17,309 $ 13,203 Trade and other receivables, net $ 24,963 $ 21,292 |
Effects of Reinsurance [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gross premiums earned 79,038 109,506 145,953 206,748 Ceded premiums (76 ) (580 ) (221 ) (2,156 ) Net premiums earned 78,962 108,926 145,732 204,592 Percentage of amount assumed to net 99.9 % 99.5 % 99.8 % 99.0 % |
Note 3 - Business Combinations
Note 3 - Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Title plants $ 8,806 Fixed assets 549 Other assets 122 $ 9,477 |
Schedule of Goodwill [Table Text Block] | Distribution Underwriting Total Beginning balance, January 1, 2023 $ 22,867 $ 23,413 $ 46,280 Allocation to WFG Asset Sale (19,271 ) - (19,271 ) Ending balance, June 30, 2023 $ 3,596 $ 23,413 $ 27,009 |
Note 4 - Investments and Fair_2
Note 4 - Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Debt Securities, Held-to-Maturity [Table Text Block] | June 30, 2023 December 31, 2022 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Corporate debt securities (1) $ 37,869 $ 2 $ (988 ) $ 36,883 $ 61,308 $ 5 $ (1,640 ) $ 59,673 U.S. Treasury securities 3,526 — (73 ) 3,453 24,152 — (165 ) 23,987 Foreign government securities — — — — 5,003 — (4 ) 4,999 Certificates of deposit 437 — — 437 305 — — 305 Total $ 41,832 $ 2 $ (1,061 ) $ 40,773 $ 90,768 $ 5 $ (1,809 ) $ 88,964 June 30, 2023 Maturity % of % of Amortized Cost Total Fair Value Total One year or less $ 27,897 67 % $ 27,685 68 % After one year through five years 13,935 33 % 13,088 32 % Total $ 41,832 100 % $ 40,773 100 % June 30, 2023 December 31, 2022 Corporate U.S. Corporate U.S. Foreign debt Treasury debt Treasury government securities securities Total securities securities securities Total Less than 12 months Fair value $ — $ 2,727 $ 2,727 $ 48,798 $ 19,834 $ 4,999 $ 73,631 Unrealized losses $ — $ (67 ) $ (67 ) $ (614 ) $ (101 ) $ (4 ) $ (719 ) Greater than 12 months Fair value $ 20,576 $ 725 $ 21,301 $ 8,546 $ 4,125 $ — $ 12,671 Unrealized losses $ (988 ) $ (6 ) $ (994 ) $ (1,026 ) $ (64 ) $ — $ (1,090 ) Total Fair value $ 20,576 $ 3,452 $ 24,028 $ 57,344 $ 23,959 $ 4,999 $ 86,302 Unrealized losses $ (988 ) $ (73 ) $ (1,061 ) $ (1,640 ) $ (165 ) $ (4 ) $ (1,809 ) |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Table Text Block] | Rollforward of Credit Loss Allowance for Held-to-Maturity Debt Securities Beginning balance, January 1, 2023 $ 440 Current-period provision (reduction) for expected credit losses (186 ) Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for credit losses, June 30, 2023 $ 254 Rollforward of Credit Loss Allowance for Held-to-Maturity Debt Securities Beginning balance, January 1, 2022 $ 399 Current-period provision (reduction) for expected credit losses 44 Write-off charged against the allowance, if any — Recoveries of amounts previously written off, if any — Ending balance of the allowance for credit losses, June 30, 2022 $ 443 |
Debt Securities, Available-for-Sale [Table Text Block] | June 30, 2023 December 31, 2022 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Corporate debt securities (1) $ 25,949 $ — $ (438 ) $ 25,511 $ 27,251 $ — $ (363 ) $ 26,888 U.S. Treasury securities 30,670 — (612 ) 30,058 30,467 — (544 ) 29,923 Foreign government securities 1,487 — (35 ) 1,452 1,473 — (30 ) 1,443 Total $ 58,106 $ — $ (1,085 ) $ 57,021 $ 59,191 $ — $ (937 ) $ 58,254 Maturity June 30, 2023 % of % of Amortized Cost Total Fair Value Total One year or less $ 16,690 29 % $ 16,422 29 % After one year through five years 41,416 71 % 40,599 71 % Total $ 58,106 100 % $ 57,021 100 % June 30, 2023 December 31, 2022 Corporate U.S. Foreign Corporate U.S. Foreign debt Treasury government debt Treasury government securities securities securities Total securities securities securities Total Less than 12 months Fair value $ 25,511 $ 30,057 $ 1,453 $ 57,021 $ 26,886 $ 29,923 $ 1,444 $ 58,253 Unrealized losses $ (438 ) $ (612 ) $ (35 ) $ (1,085 ) $ (363 ) $ (544 ) $ (30 ) $ (937 ) Greater than 12 months Fair value $ — $ — $ — $ — $ — $ — $ — $ — Unrealized losses $ — $ — $ — $ — $ — $ — $ — $ — Total Fair value $ 25,511 $ 30,057 $ 1,453 $ 57,021 $ 26,886 $ 29,923 $ 1,444 $ 58,253 Unrealized losses $ (438 ) $ (612 ) $ (35 ) $ (1,085 ) $ (363 ) $ (544 ) $ (30 ) $ (937 ) |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, 2023 December 31, 2022 Estimated Fair Estimated Fair Cost Value Cost Value Mortgage loans $ 46 $ 46 $ 297 $ 297 Total $ 46 $ 46 $ 297 $ 297 |
Investment Income [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Available-for-sale debt securities $ 536 $ 63 $ 1,067 $ 63 Held-to-maturity debt securities 525 358 1,282 746 Mortgage loans 1 18 4 40 Other 300 6 432 125 Total $ 1,362 $ 445 $ 2,785 $ 974 |
Interest and Other Income [Table Text Block] | June 30, 2023 December 31, 2022 Corporate debt securities $ 633 $ 834 U.S. Treasury securities 224 281 Foreign government securities 5 42 Accrued interest receivable on investment securities $ 862 $ 1,157 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets June 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Held-to-maturity: Corporate debt securities $ — $ 36,883 $ — $ 36,883 $ — $ 59,673 $ — $ 59,673 U.S. Treasury securities 3,453 — — 3,453 23,987 — — 23,987 Foreign government securities — — — — — 4,999 — 4,999 Certificate of deposits — 437 — 437 — 305 — 305 Total held-to-maturity debt securities $ 3,453 $ 37,320 $ — $ 40,773 $ 23,987 $ 64,977 $ — $ 88,964 Available-for-sale: Corporate debt securities $ — $ 25,511 $ — $ 25,511 $ — $ 26,888 $ — $ 26,888 U.S. Treasury securities 30,058 — — 30,058 29,923 — — 29,923 Foreign government securities — 1,452 — 1,452 — 1,443 — 1,443 Total available-for-sale debt securities $ 30,058 $ 26,963 $ — $ 57,021 $ 29,923 $ 28,331 $ — $ 58,254 Mortgage loans $ — $ — $ 46 $ 46 $ — $ — $ 297 $ 297 Total $ 33,511 $ 64,283 $ 46 $ 97,840 $ 53,910 $ 93,308 $ 297 $ 147,515 Liabilities June 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Public Warrants $ 230 $ — $ — $ 230 $ 230 $ — $ — $ 230 Private Placement Warrants — 117 — 117 — 117 — 117 Sponsor Covered Shares — — 96 96 — — 219 219 Total $ 230 $ 117 $ 96 $ 443 $ 230 $ 117 $ 219 $ 566 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | June 30, 2023 Current stock price $ 4.94 Expected volatility 65.0 % Risk-free interest rate 4.0 % Expected term (years) 8.2 Expected dividend yield — % Annual change in control probability 2.0 % |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Sponsor Covered Shares Fair value as of December 31, 2022 $ 219 Change in fair value of Sponsor Covered Shares (123 ) Fair value as of June 30, 2023 $ 96 |
Note 5 - Revenue Recognition (T
Note 5 - Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue Stream Statements of Operations Classification Segment Total Revenue Total Revenue Revenue from insurance contracts: Direct Agents title insurance premiums Net premiums written Underwriting $ 8,261 $ 19,328 $ 15,176 $ 41,741 Third-Party Agent title insurance premiums Net premiums written Underwriting 70,701 89,598 130,556 162,851 Total revenue from insurance contracts $ 78,962 $ 108,926 $ 145,732 $ 204,592 Revenue from contracts with customers: Escrow fees Escrow, title-related and other fees Distribution $ 5,250 $ 10,537 $ 9,425 $ 22,368 Other title-related fees and income Escrow, title-related and other fees Distribution 9,375 19,476 17,070 41,925 Other title-related fees and income Escrow, title-related and other fees Underwriting 595 535 1,160 1,338 Other title-related fees and income Escrow, title-related and other fees Elimination (1) (6,928 ) (16,182 ) (12,765 ) (35,152 ) Total revenue from contracts with customers $ 8,292 $ 14,366 $ 14,890 $ 30,479 Other revenue: Interest and investment income (2) Investment, dividend and other income Distribution $ 542 $ 34 $ 1,065 $ 75 Interest and investment income (2) Investment, dividend and other income Underwriting 1,218 508 2,138 917 Realized gains and losses, net Investment, dividend and other income Distribution (168 ) (67 ) (609 ) (94 ) Realized gains and losses, net Investment, dividend and other income Underwriting 7 (23 ) 5 (18 ) Total other revenues $ 1,599 $ 452 $ 2,599 $ 880 Total revenues $ 88,853 $ 123,744 $ 163,221 $ 235,951 |
Note 6 - Liability for Loss a_2
Note 6 - Liability for Loss and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | June 30, 2023 2023 2022 Balance at the beginning of the year $ 82,070 $ 80,267 Provision for claims related to: Current year $ 7,582 $ 13,025 Prior years 2,157 (2,104 ) Total provision for claims $ 9,739 $ 10,921 Paid losses related to: Current year $ (248 ) $ (1,608 ) Prior years (7,901 ) (4,644 ) Total paid losses $ (8,149 ) $ (6,252 ) Balance at the end of the period $ 83,660 $ 84,936 Provision for claims as a percentage of net written premiums 6.7 % 5.3 % |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended June 30, 2023 Distribution Underwriting Eliminations Consolidated total Net premiums written $ — $ 78,962 $ — $ 78,962 Escrow, other title-related fees and other (1) 14,625 595 (6,928 ) 8,292 Investment, dividend and other income 374 1,225 — 1,599 Total revenue $ 14,999 $ 80,782 $ (6,928 ) $ 88,853 Premiums retained by agents (2) $ — $ 65,092 $ (6,928 ) $ 58,164 Direct labor (3) 7,045 2,886 — 9,931 Other direct costs (4) 3,551 2,609 — 6,160 Provision for claims 451 5,329 — 5,780 Adjusted gross profit $ 3,952 $ 4,866 $ — $ 8,818 Six Months Ended June 30, 2023 Distribution Underwriting Eliminations Consolidated total Net premiums written $ — $ 145,732 $ — $ 145,732 Escrow, other title-related fees and other (1) 26,495 1,160 (12,765 ) 14,890 Investment, dividend and other income 456 2,143 — 2,599 Total revenue $ 26,951 $ 149,035 $ (12,765 ) $ 163,221 Premiums retained by agents (2) $ — $ 120,113 $ (12,765 ) $ 107,348 Direct labor (3) 17,095 5,773 — 22,868 Other direct costs (4) 5,563 4,414 — 9,977 Provision for claims 1,251 8,488 — 9,739 Adjusted gross profit $ 3,042 $ 10,247 $ — $ 13,289 Three Months Ended June 30, 2022 Distribution Underwriting Eliminations Consolidated total Net premiums written $ — $ 108,926 $ — $ 108,926 Escrow, other title-related fees and other (1) 30,013 535 (16,182 ) 14,366 Investment, dividend and other income (33 ) 485 — 452 Total revenue $ 29,980 $ 109,946 $ (16,182 ) $ 123,744 Premiums retained by agents (2) $ — $ 90,820 $ (16,182 ) $ 74,638 Direct labor (3) 21,091 2,799 — 23,890 Other direct costs (4) 5,374 2,642 — 8,016 Provision for claims 1,257 5,053 — 6,310 Adjusted gross profit $ 2,258 $ 8,632 $ — $ 10,890 Six Months Ended June 30, 2022 Distribution Underwriting Eliminations Consolidated total Net premiums written $ — $ 204,592 $ — $ 204,592 Escrow, other title-related fees and other (1) 64,293 1,338 (35,152 ) 30,479 Investment, dividend and other income (19 ) 899 — 880 Total revenue $ 64,274 $ 206,829 $ (35,152 ) $ 235,951 Premiums retained by agents (2) $ — $ 170,392 $ (35,152 ) $ 135,240 Direct labor (3) 46,644 5,044 — 51,688 Other direct costs (4) 11,433 5,409 — 16,842 Provision for claims 1,856 9,065 — 10,921 Adjusted gross profit $ 4,341 $ 16,919 $ — $ 21,260 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Adjusted gross profit $ 8,818 $ 10,890 $ 13,289 $ 21,260 Depreciation and amortization 3,071 3,747 6,146 6,983 Corporate and other expenses (1) 26,548 66,363 64,727 133,031 Long-lived asset impairment 1,290 — 1,471 — Change in fair value of Warrant and Sponsor Covered Shares liabilities (108 ) (5,193 ) (123 ) (19,093 ) Interest expense 5,943 4,489 10,932 8,696 Loss on sale of business 11,591 — 11,591 — Gain on sale of title plant (3,825 ) — (3,825 ) — Loss before income taxes $ (35,692 ) $ (58,516 ) $ (77,630 ) $ (108,357 ) |
Note 9 - Stock Compensation E_2
Note 9 - Stock Compensation Expense (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Life Intrinsic Stock Options Price ($) (In years) Value ($) Outstanding as of December 31, 2022 703,422 $ 14.46 6.74 $ 191 Granted — — — Exercised (17,774 ) 13.41 0.51 Cancelled or forfeited (199,108 ) 14.46 1.59 Outstanding as of June 30, 2023 486,540 $ 14.50 5.73 $ 60 Options exercisable as of June 30, 2023 448,186 $ 14.23 5.60 $ 60 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Number of Average RSAs, RSUs Grant Date and PRSUs Fair Value ($) Non-vested at December 31, 2022 1,619,222 $ 44.19 Granted 312,716 10.81 Vested (244,412 ) 56.30 Adjustment for PRSUs expected to vest — — Cancelled or Forfeited (365,080 ) 60.45 Non-vested at June 30, 2023 1,322,446 $ 29.57 Number of Average Market-based Grant Date awards Fair Value ($) Non-vested at December 31, 2022 97,413 $ 7.92 Granted — — Vested — — Cancelled or Forfeited — — Non-vested at June 30, 2023 97,413 $ 7.92 |
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | Stock price at issuance $ 23.00 Expected volatility 75.0 % Risk-free interest rate 3.14 % Expected term 3.9 Expected dividend yield — % |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator Net loss attributable to Doma Holdings, Inc. $ (35,877 ) $ (58,652 ) $ (78,000 ) $ (108,678 ) Denominator Weighted-average common shares – basic and diluted 13,324,215 12,994,869 13,259,894 12,975,354 Net loss per share attributable to stockholders Basic and diluted $ (2.69 ) $ (4.51 ) $ (5.88 ) $ (8.38 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | As of June 30, 2023 2022 Outstanding stock options 486,540 825,096 Warrants for common and preferred stock 693,333 720,910 RSA’s, RSU’s and PRSU’s 1,322,446 1,731,217 Market-based awards 97,413 97,413 Sponsor Covered Shares and Seller Earnout Shares 702,787 713,051 Total antidilutive securities 3,302,519 4,087,687 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues $ 33,508 $ 33,663 $ 63,486 $ 61,331 Premiums retained by Third-Party Agents 27,106 27,150 51,201 49,610 June 30, 2023 December 31, 2022 Net receivables $ 3,183 $ 4,175 |
Note 13 - Accrued Expenses an_2
Note 13 - Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30, December 31, 2023 2022 Employee benefits $ 4,415 $ 7,140 Severance 662 5,749 Contract terminations 3,219 5,248 Premium taxes 1,341 3,862 Employee compensation 3,769 3,380 Other 6,072 3,513 Total accrued expenses and other liabilities $ 19,478 $ 28,892 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Total Balance as of January 1, 2023 $ 5,749 Charges incurred (1) 8,087 Payments and other adjustments (13,174 ) Balance as of June 30, 2023 $ 662 |
Note 15 - Research and Develo_2
Note 15 - Research and Development (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule Of Research And Development Expenses [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Research and development expenses incurred $ 2,127 $ 5,485 $ 3,354 $ 11,088 Capitalized internally developed software costs 2,077 8,858 4,736 17,210 Research and development spend, inclusive of capitalized internally developed software cost $ 4,204 $ 14,343 $ 8,090 $ 28,298 |
Note 17 - Leases (Tables)
Note 17 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Six Months Ended June 30, 2023 2022 Components of lease expense: Operating lease expense $ 4,140 $ 6,021 Less sublease income (124 ) (161 ) Net lease expense 4,016 5,860 Cash flow information related to leases: Operating cash outflow from operating leases during the six months ended June 30, 2023 and 2022 $ 5,445 $ 5,384 June 30, 2023 June 30, 2022 Right-of-use assets obtained during the six months ended June 30, 2023 and 2022 in exchange for new operating lease liabilities $ 894 7,961 Weighted average remaining lease term (years) 3.87 4.41 Weighted average discount rate 10 % 10 % |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Maturities of lease liabilities: June 30, 2023 2023 $ 4,098 2024 7,411 2025 5,738 2026 4,530 2027 3,160 Thereafter 1,304 Total lease payments 26,241 Less imputed interest (4,501 ) Lease liabilities $ 21,740 |
Note 1 - Organization and Bus_2
Note 1 - Organization and Business Operations (Details Textual) | 6 Months Ended |
Jun. 30, 2023 | |
Number of States in which Entity Operates | 47 |
Number of Reportable Segments | 2 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 29, 2023 | Jun. 09, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Proceeds from Sale of Intangible Assets | $ 7,241 | $ 311 | |||||||||
Gain (Loss) on Disposition of Intangible Assets | $ 3,825 | $ 0 | $ 3,825 | $ 0 | |||||||
Number Of Reinsurance Treaties | 2 | ||||||||||
Reinsurance, Amount Retained, Per Policy | $ 15,000 | ||||||||||
Reinsurance Retention Policy, Excess Retention, Maximum Amount Reinsured | $ 500,000 | ||||||||||
Reinsurance, Reinsured Risk, Percentage | 25% | ||||||||||
Effective Income Tax Rate Reconciliation, Percent | (1.00%) | (1.00%) | |||||||||
Operating Loss Carryforwards, Subject To Expiration | 200 | $ 200 | |||||||||
Income Tax Examination, Penalties and Interest Accrued | 0 | 0 | |||||||||
Equity, Attributable to Parent | 10,653 | 262,279 | 10,653 | $ 262,279 | $ 45,882 | $ 81,792 | $ 311,981 | $ 350,924 | |||
Operating Lease, Liability | 21,740 | 21,740 | 27,489 | ||||||||
Operating Lease, Right-of-Use Asset | 13,424 | 13,424 | 18,634 | ||||||||
Retained Earnings [Member] | |||||||||||
Equity, Attributable to Parent | (572,787) | (301,256) | $ (572,787) | (301,256) | $ (536,910) | (494,787) | $ (242,604) | (192,179) | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||||
Equity, Attributable to Parent | (399) | ||||||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | |||||||||||
Equity, Attributable to Parent | $ (399) | ||||||||||
Accounting Standards Update 2016-13 [Member] | |||||||||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss | $ 400 | ||||||||||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | |||||||||||
Equity, Attributable to Parent | (400) | ||||||||||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||||
Operating Lease, Liability | 24,400 | ||||||||||
Operating Lease, Right-of-Use Asset | $ 23,800 | ||||||||||
Domestic Tax Authority [Member] | |||||||||||
Open Tax Year | 2019 2020 2021 2022 | ||||||||||
State and Local Jurisdiction [Member] | |||||||||||
Open Tax Year | 2018 2019 2020 2021 2022 | ||||||||||
Accrued Liabilities And Other Liabilities [Member] | |||||||||||
Deferred Income Tax Liabilities, Net | 500 | $ 500 | $ 400 | ||||||||
Title Plant [Member] | |||||||||||
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill) | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Proceeds from Sale of Intangible Assets | $ 7,600 | ||||||||||
Disposal Group, Transaction Costs | 700 | ||||||||||
Gain (Loss) on Disposition of Intangible Assets | $ 3,800 | ||||||||||
Reverse Stock Split [Member] | |||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 25 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Trade and Other Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Trade receivables | $ 5,957 | $ 7,168 |
Accrued net premiums written from Third-Party Agent referrals | 3,125 | 2,409 |
Trade receivables, gross | 9,082 | 9,577 |
Allowance for credit losses | (1,428) | (1,488) |
Trade receivables, net | 7,654 | 8,089 |
WFG Deferred Payment receivable | 10,928 | 0 |
Receivable from HSCM | 4,604 | 0 |
Investment trade receivables | 0 | 10,065 |
Miscellaneous other receivables | 1,777 | 3,138 |
Other receivables | 17,309 | 13,203 |
Trade and other receivables, net | $ 24,963 | $ 21,292 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Effects of Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Gross premiums earned | $ 79,038 | $ 109,506 | $ 145,953 | $ 206,748 | |
Ceded premiums | (76) | (580) | (221) | (2,156) | |
Net premiums earned | [1] | $ 78,962 | $ 108,926 | $ 145,732 | $ 204,592 |
Percentage of amount assumed to net | 99.90% | 99.50% | 99.80% | 99% | |
[1]Net premiums written includes revenues from a related party of $33.5 million and $33.7 million during the three months ended June 30, 2023 and 2022, respectively. Net premiums written includes revenues from a related party of $63.5 million and $61.3 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11). |
Note 3 - Business Combination_2
Note 3 - Business Combinations (Details Textual) $ / shares in Units, $ in Thousands | May 19, 2023 USD ($) | Jul. 28, 2021 $ / shares shares | Jan. 07, 2019 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Sep. 03, 2021 shares | Dec. 04, 2020 $ / shares shares |
Common Stock, Shares, Outstanding (in shares) | shares | 13,350,733 | 13,165,919 | |||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Preferred Stock, Shares Outstanding (in shares) | shares | 0 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 693,333 | ||||||
Goodwill | $ 27,009 | $ 46,280 | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 65,200 | ||||||
West Coast Local Retail Branch Sale [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Williston Financial Group LLC (WFG) [Member] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 24,500 | ||||||
Proceeds from Sale of Productive Assets | 10,500 | ||||||
Disposal Group, Including Discontinued Operation, Consideration, Deferred Payment | $ 14,000 | ||||||
Disposal Group, Including Discontinued Operation, Consideration, Deferred Payment, Period After 12 Year (Day) | 30 days | ||||||
Number of Retail Title Locations and Operations Centers Sold | 22 | ||||||
Entity Number of Employees | 123 | ||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 11,600 | ||||||
Disposal Group, Including Discontinued Operation, Consideration, Fair Value | 21,400 | ||||||
Disposal Group, Including Discontinued Operation, Consideration, Deferred Payment, Fair Value | 10,900 | ||||||
Disposal Group, Transaction Costs | 3,700 | ||||||
Disposal Group, Including Discontinued Operation, Goodwill | $ 19,300 | ||||||
North American Title Acquisition [Member] | |||||||
Business Combination, Consideration Transferred | $ 171,700 | ||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 87,000 | ||||||
Goodwill | $ 111,500 | ||||||
Public Warrants [Member] | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 460,000 | 460,000 | 11,500,000 | ||||
Class of Warrant or Right, Number of Securities Called by Each Twenty-Five Warrant or Right (in shares) | shares | 1 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 287.50 | ||||||
Private Placement Warrants [Member] | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 233,333 | 233,333 | 5,833,333 | ||||
Class of Warrant or Right, Number of Securities Called by Each Twenty-Five Warrant or Right (in shares) | shares | 0 | 1 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 287.50 | $ 287.50 | |||||
Sponsor Covered Shares [Member] | |||||||
Common Stock, Shares, Outstanding (in shares) | shares | 53,026 | 53,026 | |||||
Reverse Recapitalization, Contingent Consideration, Percentage Of Shares Subject To Vesting | 20% | ||||||
Reverse Recapitalization, Contingent Consideration, Threshold Period Of Change In Control (Year) | 10 years | ||||||
Sponsor Covered Shares [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||||
Reverse Recapitalization, Contingent Consideration, Stock Price Trigger (in dollars per share) | $ / shares | $ 375 | ||||||
Sponsor Covered Shares [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||||||
Reverse Recapitalization, Contingent Consideration, Stock Price Trigger (in dollars per share) | $ / shares | $ 437.50 | ||||||
Earnout Shares [Member] | |||||||
Reverse Recapitalization, Contingent Consideration, Additional Shares Receivable, Percentage | 5% |
Note 3 - Business Combination_3
Note 3 - Business Combinations - Assets Sold (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - Williston Financial Group LLC (WFG) [Member] - West Coast Local Retail Branch Sale [Member] $ in Thousands | Jun. 30, 2023 USD ($) |
Title plants | $ 8,806 |
Fixed assets | 549 |
Other assets | 122 |
Disposal Group, Including Discontinued Operation, Assets | $ 9,477 |
Note 3 - Business Combination_4
Note 3 - Business Combinations - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Beginning balance | $ 46,280 |
Allocation to WFG Asset Sale | (19,271) |
Ending balance | 27,009 |
Distribution Segment [Member] | |
Beginning balance | 22,867 |
Allocation to WFG Asset Sale | (19,271) |
Ending balance | 3,596 |
Underwriting Segment [Member] | |
Beginning balance | 23,413 |
Allocation to WFG Asset Sale | 0 |
Ending balance | $ 23,413 |
Note 4 - Investments and Fair_3
Note 4 - Investments and Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Securities, Held-to-Maturity, Restricted | $ 2,700 | $ 2,700 | $ 5,900 | ||
Debt Securities, Available-For-Sale, Net Unrealized Gain (Loss) | 700 | $ (2,700) | (200) | $ 300 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | $ 0 | $ 0 | |||
Sponsor Covered Shares [Member] | |||||
Derivative, Term of Contract (Year) | 10 years |
Note 4 - Investments and Fair_4
Note 4 - Investments and Fair Value Measurements - Held-to-Maturity Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt securities, held-to-maturity, amortized cost | $ 41,832 | $ 90,768 | |
Debt securities, held-to-maturity, unrealized gains | 2 | 5 | |
Debt securities, held-to-maturity, unrealized losses | (1,061) | (1,809) | |
Debt securities, held-to-maturity, fair value | 40,773 | 88,964 | |
One year or less, held-to-maturity, amortized cost | $ 27,897 | ||
One year or less, held-to-maturity, amortized cost percentage | 67% | ||
One year or less, held-to-maturity, fair value | $ 27,685 | ||
One year or less, held-to-maturity, fair value percentage | 68% | ||
After one year through five years, held-to-maturity, amortized cost | $ 13,935 | ||
After one year through five years, held-to-maturity, amortized cost percentage | 33% | ||
After one year through five years, held-to-maturity, fair value | $ 13,088 | ||
After one year through five years, held-to-maturity, fair value percentage | 32% | ||
Total, held-to-maturity, amortized cost | $ 41,832 | 90,768 | |
Total, held-to-maturity, amortized cost percentage | 100% | ||
Total, held-to-maturity, fair value | $ 40,773 | 88,964 | |
Total, held-to-maturity, fair value percentage | 100% | ||
Debt securities, held-to-maturity, less than 12 months, fair value | $ 48,798 | ||
Debt securities, held-to-maturity, less than 12 months, unrealized losses | (614) | ||
Debt securities, held-to-maturity, greater than 12 months, fair value | 8,546 | ||
Debt securities, held-to-maturity, greater than 12 months, unrealized losses | (1,026) | ||
Debt securities, held-to-maturity, fair value | 57,344 | ||
Debt securities, held-to-maturity, unrealized losses | (1,640) | ||
Corporate Debt Securities [Member] | |||
Debt securities, held-to-maturity, amortized cost | 37,869 | [1] | 61,308 |
Debt securities, held-to-maturity, unrealized gains | 2 | 5 | |
Debt securities, held-to-maturity, unrealized losses | (988) | (1,640) | |
Debt securities, held-to-maturity, fair value | 36,883 | 59,673 | |
Total, held-to-maturity, amortized cost | 37,869 | [1] | 61,308 |
Total, held-to-maturity, fair value | 36,883 | 59,673 | |
Debt securities, held-to-maturity, less than 12 months, fair value | 0 | 19,834 | |
Debt securities, held-to-maturity, less than 12 months, unrealized losses | 0 | (101) | |
Debt securities, held-to-maturity, greater than 12 months, fair value | 20,576 | 4,125 | |
Debt securities, held-to-maturity, greater than 12 months, unrealized losses | (988) | (64) | |
Debt securities, held-to-maturity, fair value | 20,576 | 23,959 | |
Debt securities, held-to-maturity, unrealized losses | (988) | (165) | |
US Treasury Securities [Member] | |||
Debt securities, held-to-maturity, amortized cost | 3,526 | 24,152 | |
Debt securities, held-to-maturity, unrealized gains | 0 | 0 | |
Debt securities, held-to-maturity, unrealized losses | (73) | (165) | |
Debt securities, held-to-maturity, fair value | 3,453 | 23,987 | |
Total, held-to-maturity, amortized cost | 3,526 | 24,152 | |
Total, held-to-maturity, fair value | 3,453 | 23,987 | |
Debt securities, held-to-maturity, less than 12 months, fair value | 2,727 | 4,999 | |
Debt securities, held-to-maturity, less than 12 months, unrealized losses | (67) | (4) | |
Debt securities, held-to-maturity, greater than 12 months, fair value | 725 | 0 | |
Debt securities, held-to-maturity, greater than 12 months, unrealized losses | (6) | 0 | |
Debt securities, held-to-maturity, fair value | 3,452 | 4,999 | |
Debt securities, held-to-maturity, unrealized losses | (73) | (4) | |
Debt Security, Government, Non-US [Member] | |||
Debt securities, held-to-maturity, amortized cost | 0 | 5,003 | |
Debt securities, held-to-maturity, unrealized gains | 0 | 0 | |
Debt securities, held-to-maturity, unrealized losses | 0 | (4) | |
Debt securities, held-to-maturity, fair value | 0 | 4,999 | |
Total, held-to-maturity, amortized cost | 0 | 5,003 | |
Total, held-to-maturity, fair value | 0 | 4,999 | |
Debt securities, held-to-maturity, less than 12 months, fair value | 2,727 | 73,631 | |
Debt securities, held-to-maturity, less than 12 months, unrealized losses | (67) | (719) | |
Debt securities, held-to-maturity, greater than 12 months, fair value | 21,301 | 12,671 | |
Debt securities, held-to-maturity, greater than 12 months, unrealized losses | (994) | (1,090) | |
Debt securities, held-to-maturity, fair value | 24,028 | 86,302 | |
Debt securities, held-to-maturity, unrealized losses | (1,061) | (1,809) | |
Certificates of Deposit [Member] | |||
Debt securities, held-to-maturity, amortized cost | 437 | 305 | |
Debt securities, held-to-maturity, unrealized gains | 0 | 0 | |
Debt securities, held-to-maturity, unrealized losses | 0 | 0 | |
Debt securities, held-to-maturity, fair value | 437 | 305 | |
Total, held-to-maturity, amortized cost | 437 | 305 | |
Total, held-to-maturity, fair value | $ 437 | $ 305 | |
[1]Includes both U.S. and foreign corporate debt securities. |
Note 4 - Investments and Fair_5
Note 4 - Investments and Fair Value Measurements - Debt Securities Held-to-Maturity Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Balance | $ 440 | $ 399 |
Current-period provision (reduction) for expected credit losses | (186) | 44 |
Write-off charged against the allowance, if any | 0 | 0 |
Recoveries of amounts previously written off, if any | 0 | 0 |
Balance | $ 254 | $ 443 |
Note 4 - Investments and Fair_6
Note 4 - Investments and Fair Value Measurements - Debt Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available-for-sale debt securities, amortized cost | $ 58,106 | $ 59,191 |
Debt securities, available-for-sale, unrealized gains | 0 | 0 |
Debt securities, available-for-sale, unrealized losses | (1,085) | (937) |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 57,021 | 58,254 |
One year or less, amortized cost | $ 16,690 | |
One year or less, amortized cost percentage | 29% | |
One year or less, fair value | $ 16,422 | |
One year or less, fair value percentage | 29% | |
After one year through five years, amortized cost | $ 41,416 | |
After one year through five years, amortized cost percentage | 71% | |
After one year through five years, fair value | $ 40,599 | |
After one year through five years, fair value percentage | 71% | |
Total, amortized cost | $ 58,106 | |
Total, amortized cost percentage | 100% | |
Total, fair value | $ 57,021 | |
Total, fair value percentage | 100% | |
Debt securities, available-for-sale, less than 12 months, fair value | $ 57,021 | 58,253 |
Debt securities, available-for-sale, less than 12 months, unrealized losses | (1,085) | (937) |
Debt securities, available-for-sale, greater than 12 months, fair value | 0 | 0 |
Debt securities, available-for-sale, greater than 12 months, unrealized losses | 0 | 0 |
Debt securities, available-for-sale, fair value | 57,021 | 58,253 |
Debt securities, available-for-sale, unrealized losses | (1,085) | (937) |
Corporate Debt Securities [Member] | ||
Available-for-sale debt securities, amortized cost | 25,949 | 27,251 |
Debt securities, available-for-sale, unrealized gains | 0 | 0 |
Debt securities, available-for-sale, unrealized losses | (438) | (363) |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 25,511 | 26,888 |
Debt securities, available-for-sale, less than 12 months, fair value | 25,511 | 26,886 |
Debt securities, available-for-sale, less than 12 months, unrealized losses | (438) | (363) |
Debt securities, available-for-sale, greater than 12 months, fair value | 0 | 0 |
Debt securities, available-for-sale, greater than 12 months, unrealized losses | 0 | 0 |
Debt securities, available-for-sale, fair value | 25,511 | 26,886 |
Debt securities, available-for-sale, unrealized losses | (438) | (363) |
US Treasury Securities [Member] | ||
Available-for-sale debt securities, amortized cost | 30,670 | 30,467 |
Debt securities, available-for-sale, unrealized gains | 0 | 0 |
Debt securities, available-for-sale, unrealized losses | (612) | (544) |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 30,058 | 29,923 |
Debt securities, available-for-sale, less than 12 months, fair value | 30,057 | 29,923 |
Debt securities, available-for-sale, less than 12 months, unrealized losses | (612) | (544) |
Debt securities, available-for-sale, greater than 12 months, fair value | 0 | 0 |
Debt securities, available-for-sale, greater than 12 months, unrealized losses | 0 | 0 |
Debt securities, available-for-sale, fair value | 30,057 | 29,923 |
Debt securities, available-for-sale, unrealized losses | (612) | (544) |
Debt Security, Government, Non-US [Member] | ||
Available-for-sale debt securities, amortized cost | 1,487 | 1,473 |
Debt securities, available-for-sale, unrealized gains | 0 | 0 |
Debt securities, available-for-sale, unrealized losses | (35) | (30) |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 1,452 | 1,443 |
Debt securities, available-for-sale, less than 12 months, fair value | 1,453 | 1,444 |
Debt securities, available-for-sale, less than 12 months, unrealized losses | (35) | (30) |
Debt securities, available-for-sale, greater than 12 months, fair value | 0 | 0 |
Debt securities, available-for-sale, greater than 12 months, unrealized losses | 0 | 0 |
Debt securities, available-for-sale, fair value | 1,453 | 1,444 |
Debt securities, available-for-sale, unrealized losses | $ (35) | $ (30) |
Note 4 - Investments and Fair_7
Note 4 - Investments and Fair Value Measurements - Mortgage Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Mortgage loans | $ 46 | $ 297 |
Reported Value Measurement [Member] | ||
Mortgage loans | 46 | 297 |
Estimate of Fair Value Measurement [Member] | ||
Mortgage loans | $ 46 | $ 297 |
Note 4 - Investments and Fair_8
Note 4 - Investments and Fair Value Measurements - Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investment income | $ 1,362 | $ 445 | $ 2,785 | $ 974 |
Available-for-Sale Debt Securities [Member] | ||||
Investment income | 536 | 63 | 1,067 | 63 |
Held-to-Maturity Debt Securities [Member] | ||||
Investment income | 525 | 358 | 1,282 | 746 |
Mortgages [Member] | ||||
Investment income | 1 | 18 | 4 | 40 |
Other Security Investments [Member] | ||||
Investment income | $ 300 | $ 6 | $ 432 | $ 125 |
Note 4 - Investments and Fair_9
Note 4 - Investments and Fair Value Measurements - Accrued Interest Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Corporate Debt Securities [Member] | ||
Accrued interest receivable on investments | $ 633 | $ 834 |
US Treasury Securities [Member] | ||
Accrued interest receivable on investments | 224 | 281 |
Foreign Government Debt [Member] | ||
Accrued interest receivable on investments | 5 | 42 |
Debt Securities [Member] | ||
Accrued interest receivable on investments | $ 862 | $ 1,157 |
Note 4 - Investments and Fai_10
Note 4 - Investments and Fair Value Measurements - Investments Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt securities, held-to-maturity, fair value | $ 40,773 | $ 88,964 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 57,021 | 58,254 |
Corporate Debt Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 36,883 | 59,673 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 25,511 | 26,888 |
US Treasury Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 3,453 | 23,987 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 30,058 | 29,923 |
Debt Security, Government, Non-US [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 4,999 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 1,452 | 1,443 |
Certificates of Deposit [Member] | ||
Debt securities, held-to-maturity, fair value | 437 | 305 |
Fair Value, Recurring [Member] | ||
Debt securities, held-to-maturity, fair value | 40,773 | 88,964 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 57,021 | 58,254 |
Mortgage loans | 46 | 297 |
Total | 97,840 | 147,515 |
Liabilities, fair value | 443 | 566 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 36,883 | 59,673 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 25,511 | 26,888 |
Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 3,453 | 23,987 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 30,058 | 29,923 |
Fair Value, Recurring [Member] | Debt Security, Government, Non-US [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 4,999 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 1,452 | 1,443 |
Fair Value, Recurring [Member] | Certificates of Deposit [Member] | ||
Debt securities, held-to-maturity, fair value | 437 | 305 |
Fair Value, Recurring [Member] | Public Warrants [Member] | ||
Liabilities, fair value | 230 | 230 |
Fair Value, Recurring [Member] | Private Placement Warrants [Member] | ||
Liabilities, fair value | 117 | 117 |
Fair Value, Recurring [Member] | Sponsor Covered Shares [Member] | ||
Liabilities, fair value | 96 | 219 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Debt securities, held-to-maturity, fair value | 3,453 | 23,987 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 30,058 | 29,923 |
Mortgage loans | 0 | 0 |
Total | 33,511 | 53,910 |
Liabilities, fair value | 230 | 230 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 3,453 | 23,987 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 30,058 | 29,923 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Debt Security, Government, Non-US [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Public Warrants [Member] | ||
Liabilities, fair value | 230 | 230 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Private Placement Warrants [Member] | ||
Liabilities, fair value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Sponsor Covered Shares [Member] | ||
Liabilities, fair value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt securities, held-to-maturity, fair value | 37,320 | 64,977 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 26,963 | 28,331 |
Mortgage loans | 0 | 0 |
Total | 64,283 | 93,308 |
Liabilities, fair value | 117 | 117 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 36,883 | 59,673 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 25,511 | 26,888 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Security, Government, Non-US [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 4,999 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 1,452 | 1,443 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Debt securities, held-to-maturity, fair value | 437 | 305 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Public Warrants [Member] | ||
Liabilities, fair value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Private Placement Warrants [Member] | ||
Liabilities, fair value | 117 | 117 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Sponsor Covered Shares [Member] | ||
Liabilities, fair value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 0 | 0 |
Mortgage loans | 46 | 297 |
Total | 46 | 297 |
Liabilities, fair value | 96 | 219 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Security, Government, Non-US [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Available-for-sale debt securities, at fair value (amortized cost $58,106 at June 30, 2023 and $59,191 at December 31, 2022) | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ||
Debt securities, held-to-maturity, fair value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Public Warrants [Member] | ||
Liabilities, fair value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Private Placement Warrants [Member] | ||
Liabilities, fair value | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Sponsor Covered Shares [Member] | ||
Liabilities, fair value | $ 96 | $ 219 |
Note 4 - Investments and Fai_11
Note 4 - Investments and Fair Value Measurements - Valuation Assumptions (Details) - Sponsor Covered Shares [Member] | Jun. 30, 2023 $ / shares |
Stock price at issuance (in dollars per share) | $ 4.94 |
Measurement Input, Price Volatility [Member] | |
Liability, measurement input | 0.650 |
Measurement Input, Risk Free Interest Rate [Member] | |
Liability, measurement input | 0.040 |
Measurement Input, Expected Term [Member] | |
Liability, measurement input | 8.2 |
Measurement Input, Expected Dividend Rate [Member] | |
Liability, measurement input | 0 |
Change in Control Probability [Member] | |
Liability, measurement input | 0.020 |
Note 4 - Investments and Fai_12
Note 4 - Investments and Fair Value Measurements - Unobservable Input Reconciliation (Details) - Sponsor Covered Shares [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Fair value | $ 219 |
Change in fair value of Sponsor Covered Shares | (123) |
Fair value | $ 96 |
Note 5 - Revenue Recognition -
Note 5 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Total revenue from insurance contracts | [1] | $ 78,962 | $ 108,926 | $ 145,732 | $ 204,592 |
Total revenue from contracts with customers | [2] | 8,292 | 14,366 | 14,890 | 30,479 |
Total other revenues | 1,599 | 452 | 2,599 | 880 | |
Total revenues | 88,853 | 123,744 | 163,221 | 235,951 | |
Operating Segments [Member] | Underwriting Segment [Member] | |||||
Total revenue from insurance contracts | 78,962 | 108,926 | 145,732 | 204,592 | |
Total revenue from contracts with customers | [2] | 595 | 535 | 1,160 | 1,338 |
Interest and investment income (2) | [3] | 1,218 | 508 | 2,138 | 917 |
Realized gains and losses, net | 7 | (23) | 5 | (18) | |
Total other revenues | 1,225 | 485 | 2,143 | 899 | |
Total revenues | 80,782 | 109,946 | 149,035 | 206,829 | |
Operating Segments [Member] | Underwriting Segment [Member] | Direct Agent Title Insurance Premiums [Member] | |||||
Total revenue from insurance contracts | 8,261 | 19,328 | 15,176 | 41,741 | |
Operating Segments [Member] | Underwriting Segment [Member] | Third Party Agent Title Insurance Premiums [Member] | |||||
Total revenue from insurance contracts | 70,701 | 89,598 | 130,556 | 162,851 | |
Operating Segments [Member] | Underwriting Segment [Member] | Other Title Fees [Member] | |||||
Total revenue from contracts with customers | 595 | 535 | 1,160 | 1,338 | |
Operating Segments [Member] | Distribution Segment [Member] | |||||
Total revenue from insurance contracts | 0 | 0 | 0 | 0 | |
Total revenue from contracts with customers | [2] | 14,625 | 30,013 | 26,495 | 64,293 |
Interest and investment income (2) | [3] | 542 | 34 | 1,065 | 75 |
Realized gains and losses, net | (168) | (67) | (609) | (94) | |
Total other revenues | 374 | (33) | 456 | (19) | |
Total revenues | 14,999 | 29,980 | 26,951 | 64,274 | |
Operating Segments [Member] | Distribution Segment [Member] | Escrow Fees [Member] | |||||
Total revenue from contracts with customers | 5,250 | 10,537 | 9,425 | 22,368 | |
Operating Segments [Member] | Distribution Segment [Member] | Other Title Fees [Member] | |||||
Total revenue from contracts with customers | 9,375 | 19,476 | 17,070 | 41,925 | |
Consolidation, Eliminations [Member] | |||||
Total revenue from insurance contracts | 0 | 0 | 0 | 0 | |
Total revenue from contracts with customers | [2] | (6,928) | (16,182) | (12,765) | (35,152) |
Total other revenues | 0 | 0 | 0 | 0 | |
Total revenues | (6,928) | (16,182) | (12,765) | (35,152) | |
Consolidation, Eliminations [Member] | Other Title Fees [Member] | |||||
Total revenue from contracts with customers | [4] | $ (6,928) | $ (16,182) | $ (12,765) | $ (35,152) |
[1]Net premiums written includes revenues from a related party of $33.5 million and $33.7 million during the three months ended June 30, 2023 and 2022, respectively. Net premiums written includes revenues from a related party of $63.5 million and $61.3 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[2]Includes fee income from closings, escrow, title exams, ceding commission income, as well as premiums retained by Direct Agents.[3]Interest and investment income consists primarily of interest payments received on held-to-maturity debt securities, available-for-sale debt securities and mortgage loans.[4]Premiums retained by Direct Agents are recognized as income to the Distribution segment, and expense to the Underwriting segment. Upon consolidation, the impact of these internal segment transactions is eliminated. See Note 7. Segment information for additional breakdown. |
Note 6 - Liability for Loss a_3
Note 6 - Liability for Loss and Loss Adjustment Expenses (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Prior Year Claims and Claims Adjustment Expense | $ 2,157 | $ (2,104) | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 83,660 | $ 84,936 | $ 82,070 | $ 80,267 |
Liability for Unpaid Claims and Claims Adjustment Expense, Reserve for Settlement of Claims | $ 300 | $ 200 |
Note 6 - Liability for Loss a_4
Note 6 - Liability for Loss and Loss Adjustment Expenses - Summary of Changes in Liability for Loss and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Balance at the beginning of the year | $ 82,070 | $ 80,267 | ||
Current year | 7,582 | 13,025 | ||
Prior years | 2,157 | (2,104) | ||
Total provision for claims | $ 5,780 | $ 6,310 | 9,739 | 10,921 |
Current year | (248) | (1,608) | ||
Prior years | (7,901) | (4,644) | ||
Total paid losses | (8,149) | (6,252) | ||
Balance at the end of the period | $ 83,660 | $ 84,936 | $ 83,660 | $ 84,936 |
Provision for claims as a percentage of net written premiums | 6.70% | 5.30% | 6.70% | 5.30% |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Number of Reportable Segments | 2 | ||||
Number of States in which Entity Operates | 47 | 47 | |||
Goodwill | $ 27,009 | $ 27,009 | $ 46,280 | ||
Goodwill, Translation and Purchase Accounting Adjustments | 0 | $ 0 | 0 | $ 0 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 0 | |
Distribution Segment [Member] | |||||
Number Of Branches | 53 | ||||
Number of States in which Entity Operates | 7 | 7 | |||
Goodwill | $ 3,596 | $ 3,596 | 22,867 | ||
Underwriting Segment [Member] | |||||
Goodwill | $ 23,413 | $ 23,413 | $ 23,413 | ||
Underwriting Segment [Member] | Minimum [Member] | |||||
Percentage Of Premiums Retained By Agents | 82% | ||||
Underwriting Segment [Member] | Maximum [Member] | |||||
Percentage Of Premiums Retained By Agents | 84% |
Note 7 - Segment Information -
Note 7 - Segment Information - Schedule of Operating Results by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Net premiums written (1) | [1] | $ 78,962 | $ 108,926 | $ 145,732 | $ 204,592 |
Escrow, other title-related fees and other | [2] | 8,292 | 14,366 | 14,890 | 30,479 |
Investment, dividend and other income | 1,599 | 452 | 2,599 | 880 | |
Total revenues | 88,853 | 123,744 | 163,221 | 235,951 | |
Premiums retained by Third-Party Agents (2) | [3],[4] | 58,164 | 74,638 | 107,348 | 135,240 |
Direct labor (3) | [5] | 9,931 | 23,890 | 22,868 | 51,688 |
Other direct costs (4) | [6] | 6,160 | 8,016 | 9,977 | 16,842 |
Provision for claims | 5,780 | 6,310 | 9,739 | 10,921 | |
Adjusted gross profit | 8,818 | 10,890 | 13,289 | 21,260 | |
Operating Segments [Member] | Distribution Segment [Member] | |||||
Net premiums written (1) | 0 | 0 | 0 | 0 | |
Escrow, other title-related fees and other | [2] | 14,625 | 30,013 | 26,495 | 64,293 |
Investment, dividend and other income | 374 | (33) | 456 | (19) | |
Total revenues | 14,999 | 29,980 | 26,951 | 64,274 | |
Premiums retained by Third-Party Agents (2) | [4] | 0 | 0 | 0 | 0 |
Direct labor (3) | [5] | 7,045 | 21,091 | 17,095 | 46,644 |
Other direct costs (4) | [6] | 3,551 | 5,374 | 5,563 | 11,433 |
Provision for claims | 451 | 1,257 | 1,251 | 1,856 | |
Adjusted gross profit | 3,952 | 2,258 | 3,042 | 4,341 | |
Operating Segments [Member] | Underwriting Segment [Member] | |||||
Net premiums written (1) | 78,962 | 108,926 | 145,732 | 204,592 | |
Escrow, other title-related fees and other | [2] | 595 | 535 | 1,160 | 1,338 |
Investment, dividend and other income | 1,225 | 485 | 2,143 | 899 | |
Total revenues | 80,782 | 109,946 | 149,035 | 206,829 | |
Premiums retained by Third-Party Agents (2) | [4] | 65,092 | 90,820 | 120,113 | 170,392 |
Direct labor (3) | [5] | 2,886 | 2,799 | 5,773 | 5,044 |
Other direct costs (4) | [6] | 2,609 | 2,642 | 4,414 | 5,409 |
Provision for claims | 5,329 | 5,053 | 8,488 | 9,065 | |
Adjusted gross profit | 4,866 | 8,632 | 10,247 | 16,919 | |
Consolidation, Eliminations [Member] | |||||
Net premiums written (1) | 0 | 0 | 0 | 0 | |
Escrow, other title-related fees and other | [2] | (6,928) | (16,182) | (12,765) | (35,152) |
Investment, dividend and other income | 0 | 0 | 0 | 0 | |
Total revenues | (6,928) | (16,182) | (12,765) | (35,152) | |
Premiums retained by Third-Party Agents (2) | [4] | (6,928) | (16,182) | (12,765) | (35,152) |
Direct labor (3) | [5] | 0 | 0 | 0 | 0 |
Other direct costs (4) | [6] | 0 | 0 | 0 | 0 |
Provision for claims | 0 | 0 | 0 | 0 | |
Adjusted gross profit | $ 0 | $ 0 | $ 0 | $ 0 | |
[1]Net premiums written includes revenues from a related party of $33.5 million and $33.7 million during the three months ended June 30, 2023 and 2022, respectively. Net premiums written includes revenues from a related party of $63.5 million and $61.3 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[2]Includes fee income from closings, escrow, title exams, ceding commission income, as well as premiums retained by Direct Agents.[3]Premiums retained by Third-Party Agents includes expenses associated with a related party of $27.1 million and $27.2 million during the three months ended June 30, 2023 and 2022, respectively. Premiums retained by Third-Party Agents includes expenses associated with a related party of $51.2 million and $49.6 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[4]This expense represents a deduction from the net premiums written for the amounts that are retained by Direct Agents and Third-Party Agents as compensation for their efforts to generate premium income for our Underwriting segment. The impact of premiums retained by our Direct Agents and the expense for reinsurance or co-insurance procured on Direct Agent sourced premiums are eliminated in consolidation.[5]Includes all compensation costs, including salaries, bonuses, incentive payments, and benefits, for personnel involved in the direct fulfillment of title and/or escrow services. Direct labor excludes severance costs.[6]Includes title examination expense, office supplies, and premium and other taxes. |
Note 7 - Segment Information _2
Note 7 - Segment Information - Reconciliation of Reportable Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Adjusted gross profit | $ 8,818 | $ 10,890 | $ 13,289 | $ 21,260 | |
Depreciation and amortization | 3,071 | 3,747 | 6,146 | 6,983 | |
Corporate and other expenses (1) | [1] | 26,548 | 66,363 | 64,727 | 133,031 |
Long-lived asset impairment | 1,290 | 0 | 1,471 | 0 | |
Change in fair value of Warrant and Sponsor Covered Shares liabilities | (108) | (5,193) | (123) | (19,093) | |
Interest expense | 5,943 | 4,489 | 10,932 | 8,696 | |
Loss on sale of business | 11,591 | 0 | 11,591 | 0 | |
Gain on sale of title plant | (3,825) | 0 | (3,825) | 0 | |
Loss before income taxes | $ (35,692) | $ (58,516) | $ (77,630) | $ (108,357) | |
[1]Includes corporate and other costs not allocated to segments including corporate support function costs, such as legal, finance, human resources, technology support and certain other indirect operating expenses, such as sales and management payroll, and incentive related expenses. |
Note 8 - Debt (Details Textual)
Note 8 - Debt (Details Textual) - USD ($) | May 19, 2023 | Dec. 31, 2020 | Jun. 30, 2023 | Sep. 03, 2021 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 693,333 | |||
Penny Warrants [Member] | ||||
Class of Warrant Or Right, Percentage Of Fully Diluted Shares Called by Each Warrant or Right | 1.35% | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 200,000 | |||
Senior First Lien Note [Member] | Senior Notes [Member] | ||||
Debt Instrument, Face Amount | $ 150,000,000 | |||
Debt Instrument, Term (Year) | 5 years | |||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | |||
Debt Instrument, Interest Rate, Stated Percentage, Current Cash Basis | 5% | |||
Debt Instrument, Debt Default, Interest Rate | 15% | |||
Debt Instrument, Covenant, Minimum Liquidity | $ 20,000,000 | |||
Debt Instrument, Covenant, Minimum Consolidated Revenue | $ 130,000,000 | |||
Debt Instrument, Covenant, Prepayment, Minimum Proceeds From Dispositions | $ 750,000 | |||
Debt Instrument, Covenant, Prepayment, Percentage of Excess Net Cash Proceeds | 100% | |||
Long-Term Debt, Fair Value | $ 157,700,000 |
Note 9 - Stock Compensation E_3
Note 9 - Stock Compensation Expense (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement, Reversal of Expense | $ 2.2 | |||||
Deferred Compensation Share-Based Arrangements, Liability, Current and Noncurrent | $ 0.2 | $ 0.2 | ||||
Increase (Decrease) In Share-Based Payment Arrangement Expense | $ (3) | |||||
Share-Based Payment Arrangement, Expense | 1.3 | $ 8.3 | 7 | $ 19.7 | ||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 3.9 | $ 3.9 | ||||
Share-Based Payment Arrangement, Option [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 10 years | |||||
Share-Based Payment Arrangement, Option [Member] | Minimum [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Month) | 7 months | |||||
Share-Based Payment Arrangement, Option [Member] | Maximum [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Month) | 60 months | |||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 25% | |||||
Market-Based Awards [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Month) | 4 years | |||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 0.5 | $ 0.5 | ||||
Market-Based Awards [Member] | Omnibus Incentive Plan 2021 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Month) | 4 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 97,413 | 97,413 | ||||
Market-Based Awards [Member] | Share-Based Payment Arrangement, Tranche One [Member] | Omnibus Incentive Plan 2021 [Member] | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Weighted Average Price Threshold (in dollars per share) | $ 125 | $ 125 | ||||
Market-Based Awards [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | Omnibus Incentive Plan 2021 [Member] | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Weighted Average Price Threshold (in dollars per share) | 187.50 | 187.50 | ||||
Market-Based Awards [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | Omnibus Incentive Plan 2021 [Member] | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Weighted Average Price Threshold (in dollars per share) | $ 250 | $ 250 | ||||
Restricted and Performance Stock Awards [Member] | ||||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 36.1 | $ 36.1 |
Note 9 - Stock Compensation E_4
Note 9 - Stock Compensation Expense - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Outstanding options (in shares) | shares | 703,422 | |
Outstanding options, weighted average exercise price (in dollars per share) | $ / shares | $ 14.46 | |
Outstanding options, weighted average remaining contractual life (Year) | 5 years 8 months 23 days | 6 years 8 months 26 days |
Outstanding options, aggregate intrinsic value | $ | $ 60 | $ 191 |
Granted options (in shares) | shares | 0 | |
Granted options, weighted average exercise price (in dollars per share) | $ / shares | $ 0 | |
Exercised options (in shares) | shares | (17,774) | |
Exercised options, weighted average exercise price (in dollars per share) | $ / shares | $ 13.41 | |
Exercised options weighted average remaining contractual life (Year) | 6 months 3 days | |
Cancelled or forfeited options (in shares) | shares | (199,108) | |
Cancelled or forfeited options, weighted average exercise price (in dollars per share) | $ / shares | $ 14.46 | |
Cancelled or forfeited options, weighted average contractual life (Year) | 1 year 7 months 2 days | |
Outstanding options (in shares) | shares | 486,540 | 703,422 |
Outstanding options, weighted average exercise price (in dollars per share) | $ / shares | $ 14.50 | $ 14.46 |
Options exercisable (in shares) | shares | 448,186 | |
Options exercisable, weighted average remaining contractual life (in dollars per share) | $ / shares | $ 14.23 | |
Options exercisable, weighted average contractual life (Year) | 5 years 7 months 6 days | |
Options exercisable aggregate intrinsic value | $ | $ 60 |
Note 9 - Stock Compensation E_5
Note 9 - Stock Compensation Expense - Stock Award Activity (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Restricted and Performance Stock Awards [Member] | |
Non-vested (in shares) | shares | 1,619,222 |
Non-vested, average grant date fair value (in dollars per share) | $ / shares | $ 44.19 |
Granted, other than options (in shares) | shares | 312,716 |
Granted, other than options, average grant date fair value (in dollars per share) | $ / shares | $ 10.81 |
Vested, other than options (in shares) | shares | (244,412) |
Vested, other than options, average grant date fair value (in dollars per share) | $ / shares | $ 56.30 |
Adjustment for PRSUs expected to vest (in shares) | shares | 0 |
Adjustment for PRSUs expected to vest, average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Cancelled or Forfeited, other than options (in shares) | shares | (365,080) |
Cancelled or Forfeited, other than options, average grant date fair value (in dollars per share) | $ / shares | $ 60.45 |
Non-vested (in shares) | shares | 1,322,446 |
Non-vested, average grant date fair value (in dollars per share) | $ / shares | $ 29.57 |
Market-Based Awards [Member] | |
Non-vested (in shares) | shares | 97,413 |
Non-vested, average grant date fair value (in dollars per share) | $ / shares | $ 7.92 |
Granted, other than options (in shares) | shares | 0 |
Granted, other than options, average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Vested, other than options (in shares) | shares | 0 |
Vested, other than options, average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Cancelled or Forfeited, other than options (in shares) | shares | 0 |
Cancelled or Forfeited, other than options, average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Non-vested (in shares) | shares | 97,413 |
Non-vested, average grant date fair value (in dollars per share) | $ / shares | $ 7.92 |
Note 9 - Stock Based Compensati
Note 9 - Stock Based Compensation - Valuation Assumptions (Details) - Market-Based Awards [Member] | 6 Months Ended |
Jun. 30, 2023 $ / shares | |
Stock price at issuance (in dollars per share) | $ 23 |
Expected volatility | 75% |
Risk-free interest rate | 3.14% |
Expected term (Year) | 3 years 10 months 24 days |
Expected dividend yield | 0% |
Note 10 - Earnings Per Share -
Note 10 - Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net loss | $ (35,877) | $ (42,123) | $ (58,652) | $ (50,026) | $ (78,000) | $ (108,678) |
Weighted-average common shares – basic and diluted (in shares) | 13,324,215 | 12,994,869 | 13,259,894 | 12,975,354 | ||
Net loss per share attributable to stockholders - basic and diluted (in dollars per share) | $ (2.69) | $ (4.51) | $ (5.88) | $ (8.38) |
Note 10 - Earnings Per Share _2
Note 10 - Earnings Per Share - Antidilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Total antidilutive securities (in shares) | 3,302,519 | 4,087,687 |
Share-Based Payment Arrangement, Option [Member] | ||
Total antidilutive securities (in shares) | 486,540 | 825,096 |
Warrant [Member] | ||
Total antidilutive securities (in shares) | 693,333 | 720,910 |
Restricted and Performance Stock Awards [Member] | ||
Total antidilutive securities (in shares) | 1,322,446 | 1,731,217 |
Market-Based Awards [Member] | ||
Total antidilutive securities (in shares) | 97,413 | 97,413 |
Sponsor Covered Shares and Seller Earnout Shares [Member] | ||
Total antidilutive securities (in shares) | 702,787 | 713,051 |
Note 11 - Related Party Trans_3
Note 11 - Related Party Transactions (Details Textual) - USD ($) $ in Millions | Jun. 30, 2023 | Apr. 27, 2023 |
Lennar Corporation [Member] | Sublease Agreement [Member] | ||
Lessor, Operating Lease, Payment to be Received | $ 0.2 | |
Lennar Corporation [Member] | Doma Holdings, Inc. [Member] | ||
Equity Method Investment, Ownership Percentage | 24.60% |
Note 11 - Related Party Trans_4
Note 11 - Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||
Revenues | [1] | $ 78,962 | $ 108,926 | $ 145,732 | $ 204,592 | |
Premiums retained by Third-Party Agents | [2],[3] | 58,164 | 74,638 | 107,348 | 135,240 | |
Trade and other receivables (net of allowance for credit losses of $1,428 at June 30, 2023 and $1,488 at December 31, 2022) | 24,963 | 24,963 | $ 21,292 | |||
Affiliated Entity [Member] | Lennar Corporation [Member] | ||||||
Revenues | 33,508 | 33,663 | 63,486 | 61,331 | ||
Premiums retained by Third-Party Agents | 27,106 | $ 27,150 | 51,201 | $ 49,610 | ||
Trade and other receivables (net of allowance for credit losses of $1,428 at June 30, 2023 and $1,488 at December 31, 2022) | $ 3,183 | $ 3,183 | $ 4,175 | |||
[1]Net premiums written includes revenues from a related party of $33.5 million and $33.7 million during the three months ended June 30, 2023 and 2022, respectively. Net premiums written includes revenues from a related party of $63.5 million and $61.3 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[2]Premiums retained by Third-Party Agents includes expenses associated with a related party of $27.1 million and $27.2 million during the three months ended June 30, 2023 and 2022, respectively. Premiums retained by Third-Party Agents includes expenses associated with a related party of $51.2 million and $49.6 million during the six months ended June 30, 2023 and 2022, respectively (see Note 11).[3]This expense represents a deduction from the net premiums written for the amounts that are retained by Direct Agents and Third-Party Agents as compensation for their efforts to generate premium income for our Underwriting segment. The impact of premiums retained by our Direct Agents and the expense for reinsurance or co-insurance procured on Direct Agent sourced premiums are eliminated in consolidation. |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Escrow Deposit Contingent Liability [Member] | ||
Loss Contingency, Estimate of Possible Loss | $ 67 | $ 77.4 |
Note 13 - Accrued Expenses an_3
Note 13 - Accrued Expenses and Other Liabilities (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | 18 Months Ended | |
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | |
Number Of Workforce Reduction Plans | 3 | |||
Restructuring Reserve, Forfeiture Of Stock-Based Compensation | $ 1,500 | $ 2,300 | ||
Restructuring Reserve | 662 | $ 5,749 | 662 | |
Contract Termination [Member] | ||||
Restructuring And Related Cost, Accelerated Contract Charges | 0 | $ 0 | $ 5,200 | |
Restructuring Reserve | $ 3,200 | $ 3,200 | ||
Workforce Reduction Plan [Member] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 1,076 | |||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 52% |
Note 13 - Accrued Expenses an_4
Note 13 - Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Employee benefits | $ 4,415 | $ 7,140 |
Severance | 662 | 5,749 |
Contract terminations | 3,219 | 5,248 |
Premium taxes | 1,341 | 3,862 |
Employee compensation | 3,769 | 3,380 |
Other | 6,072 | 3,513 |
Total accrued expenses and other liabilities | $ 19,478 | $ 28,892 |
Note 13 - Accrued Expenses an_5
Note 13 - Accrued Expenses and Other Liabilities - Liabilities Associated with Restructuring (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) | ||
Balance | $ 5,749 | |
Charges incurred (1) | 8,087 | [1] |
Payments and other adjustments | (13,174) | |
Balance | $ 662 | |
[1]Charges incurred include interim salary for employees with known departure dates, employee benefits, severance, payroll taxes and related facilitation costs offset by forfeitures of bonus. |
Note 14 - Employee Benefit Pl_2
Note 14 - Employee Benefit Plan (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee with Employer Match, Percent | 3.50% | |||
Defined Contribution Plan, Cost | $ 0.5 | $ 1.1 | $ 1.2 | $ 2.3 |
First Match Tranche [Member] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 1% | |||
Second Match Tranche [Member] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5% |
Note 15 - Research and Develo_3
Note 15 - Research and Development - Schedule of Research and Development Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Research and development expenses incurred | $ 2,127 | $ 5,485 | $ 3,354 | $ 11,088 |
Capitalized internally developed software costs | 2,077 | 8,858 | 4,736 | 17,210 |
Research and development spend, inclusive of capitalized internally developed software cost | $ 4,204 | $ 14,343 | $ 8,090 | $ 28,298 |
Note 16 - Warrant Liabilities (
Note 16 - Warrant Liabilities (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 04, 2021 | Sep. 03, 2021 | Jul. 28, 2021 | Dec. 04, 2020 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 693,333 | |||||
Warrants and Rights Outstanding, Term (Year) | 1 year | |||||
Warrants and Rights Outstanding | $ 347 | $ 347 | ||||
Public Warrants [Member] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 460,000 | 460,000 | 11,500,000 | |||
Class of Warrant or Right, Number of Securities Called by Each Twenty-Five Warrant or Right (in shares) | 1 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 287.50 | |||||
Class Of Warrant Or Right, Fair Market Value Price, Conversion Ratio Maximum (in dollars per share) | $ 0.014 | |||||
Warrants and Rights Outstanding | $ 200 | $ 200 | ||||
Public Warrants [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Class Of Warrant Or Right, Stock Price Threshold For Redemption Of Warrants Or Right (in dollars per share) | 450 | |||||
Class Of Warrant Or Right, Redemption Price (in dollars per share) | 0.01 | |||||
Public Warrants [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Class Of Warrant Or Right, Stock Price Threshold For Redemption Of Warrants Or Right (in dollars per share) | 250 | |||||
Class Of Warrant Or Right, Redemption Price (in dollars per share) | $ 0.10 | |||||
Private Placement Warrants [Member] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 233,333 | 233,333 | 5,833,333 | |||
Class of Warrant or Right, Number of Securities Called by Each Twenty-Five Warrant or Right (in shares) | 0 | 1 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 287.50 | $ 287.50 | ||||
Warrants and Rights Outstanding | $ 100 | $ 100 |
Note 17 - Leases (Details Textu
Note 17 - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Lease, Impairment Loss | $ 600 | $ 0 |
Minimum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Day) | 30 days | |
Lessee, Operating Lease, Renewal Term (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Remaining Lease Term (Day) | 6 years 3 months 18 days | |
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Note 17 - Leases - Components o
Note 17 - Leases - Components of Operating Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating lease expense | $ 4,140 | $ 6,021 |
Less sublease income | (124) | (161) |
Net lease expense | 4,016 | 5,860 |
Operating cash outflow from operating leases during the six months ended June 30, 2023 and 2022 | 5,445 | 5,384 |
Right-of-use assets obtained during the six months ended June 30, 2023 and 2022 in exchange for new operating lease liabilities | $ 894 | $ 7,961 |
Weighted average remaining lease term (years) (Year) | 3 years 10 months 13 days | 4 years 4 months 28 days |
Weighted average discount rate | 10% | 10% |
Note 17 - Leases - Maturities o
Note 17 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
2023 | $ 4,098 | |
2024 | 7,411 | |
2025 | 5,738 | |
2026 | 4,530 | |
2027 | 3,160 | |
Thereafter | 1,304 | |
Total lease payments | 26,241 | |
Less imputed interest | (4,501) | |
Lease liabilities | $ 21,740 | $ 27,489 |
Note 18 - Subsequent Events (De
Note 18 - Subsequent Events (Details Textual) shares in Millions, $ in Millions | 6 Months Ended | ||
Aug. 03, 2023 shares | Aug. 02, 2023 USD ($) | Jun. 30, 2023 | |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 25% | ||
Subsequent Event [Member] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 70 | ||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 17% | ||
Restructuring and Related Cost, Expected Cost Remaining | $ | $ 0.7 | ||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | shares | 1 | ||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 50% |
Item 5 - Other Information (Det
Item 5 - Other Information (Details Textual) - USD ($) | 6 Months Ended | |
Aug. 03, 2023 | Jun. 30, 2023 | |
Chief Executive Officer [Member] | ||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 750,000 | |
Chief Executive Officer [Member] | Subsequent Event [Member] | ||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 525,000 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted (in shares) | 135,000 | |
Chief Financial Officer [Member] | ||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 375,000 | |
Chief Financial Officer [Member] | Subsequent Event [Member] | ||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 263,000 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted (in shares) | 60,000 |