NASDAQ: HIT

HIT was founded on the belief that self-funded benefits plans and
stop loss insurance should be simple and streamlined with significant transparency. With over 30 years of industry experience of
our management team, we understand the complexities of the healthcare insurance market, and we know how to integrate the multifaceted
aspects of the industry. Our solutions and technology platforms do exactly this through vertical integration, process simplification,
automation, and digitalization.

Service Solutions

We offer a suite of service solutions designed to meet the diverse
needs of our clients. Available for seamless integration or as standalone offerings, our services are delivered through the three wholly-owned
subsidiaries (i) Stone Mountain Risk, LLC (“SMR”), (ii) International Captive Exchange, LLC (“ICE”),
and (iii) HI Card LLC’s HI Card platform (“HI Card”). Collectively, these services embody the comprehensive value
proposition of HIT. For the year ended December 31, 2025, the percentage of our total revenue attributed to each of SMR, ICE and HI Card
was 79.4%, 20.6%, and 0.0%, respectively. Program services provided by SMR and MGU activities provided by ICE (including eDIYBS) are
interdependent, as they cannot function effectively without being combined. Services provided by HI Card are optional add-on to our services,
and it cannot be offered on a standalone basis. Brokers are not obligated to utilize our HI Card service.

1 Centers for Medicare & Medicaid Services (CMS), National
Health Expenditure Accounts (NHEA) Fact Sheet (2024).

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SMR: SMR is a program manager specializing in customized
self-funded benefits plans for businesses. It designs health plans, selects networks, manages vendors, and sets up the benefits plan
on the marketplace including benefits structures, coverage options, and provider networks. Licensed brokers can log in to the marketplace
to select and sell self-funded benefits plans to businesses. Our offerings encompass reference-based pricing, group insurance captives,
community health plans, and association health programs. SMR collaborates with TPAs and licensed brokers to design health plans that
meet the specific needs of the employers.

ICE: ICE is an MGU, which specializes in underwriting
and providing administrative functions on behalf of stop loss carriers. ICE assists with underwriting activities through its sophisticated
web-based SaaS quoting platform, eDIYBS (Enhance Do It Yourself Benefit System). This platform not only monitors and manages claims
activities but also facilitates reinsurance reporting and monthly reinsurance filings. Collaborating with TPAs, ICE empowers business
groups to fund their own claims and lowers the risk pool of insured, mitigating the risk associated with high-dollar medical claims.
ICE medically underwrites the employees. The aim of this strategic approach to self-funding is to achieve competitively lower rates for
low-risk employers with comparatively healthy employees, as compared with the community rating of many fully insured large carriers where
premiums are the same for everyone in the community.

The eDIYBS quoting platform can be used to quote health insurance
for employers. By integrating AI-backed solutions using machine learning and a web-based Point of Sales (POS) system, eDIYBS drastically
reduces friction and complexities in the underwriting process when compared to a manual underwriting process that involves the underwriter
manually reviewing health applications completed by each employee seeking insurance. Our platform allows licensed brokers to upload specific
data to eDIYBS to generate bindable quotes efficiently, reducing errors associated with human interaction and manual processes. In most
cases, this streamlined approach reduces processing time to approximately two minutes for small employers, compared to the traditional
manual quoting model that involves sending multiple documents to underwriters for manual review, which can take several days to generate
bindable quotes based on feedback we have received from brokers who engaged us for our services. Approximately 80% of bindable quotes
are provided solely using AI without further manual review. According to brokers’ feedback, depending on employer size, it otherwise
can take anywhere from two weeks to three months to receive bindable quotes from other channels. The data used in our eDIYBS platform
is provided by third party vendors that utilize machine learning tools, which are connected to our system by an application programming
interface. We then feed the data to our internal risk scoring model to generate a risk score and to calculate premiums that are within
insurance underwriting guidelines and carriers’ risk acceptance threshold. Our internal proprietary system consistently improves
results through machine learning tools and data feeds from third party vendors, and this process is governed by our internal governance
policy on utilizing AI technology.

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HI Card: HI Card seeks to simplify healthcare management
with a single standardized transaction and service platform, designed to streamline the management of medical records and claims through
one platform using one login. All health-related information is aggregated through this single platform. The platform provides 24/7 access
to its users, including patients, healthcare providers, brokers and TPAs, among others. By partnering with hospitals across the nation,
HI Card has developed a community health plan aimed at significantly reducing corporate health insurance premiums through an automated
platform thus reducing administrative costs of processes that are traditionally done manually, while simultaneously enhancing benefit
offerings through self-funding mechanisms. Additionally, the platform facilitates secure, immediate access to crucial health data for
healthcare providers, encompassing health insurance plan specifics, medical records, and personal identification details. Moreover, HI
Card empowers members to effortlessly obtain vital health information, ranging from claims status and plan particulars to directories
of in-network doctors, all tailored for both themselves and their dependents, and all using one login.

HI Card also provides clients with HIT’s HI Performance Network
(“HPN”), a series of hospital facilities and providers that deliver Medicare-based reimbursement pricing. HI Performance Network
(HPN) now provides direct Medicare contracts in 50 states with 1,317,732 providers that are licensed nationwide, including hospitals,
as of December 31, 2025. In accordance with our internal practices and procedures, we evaluate our contracts with HPN providers on the
basis of cost and to ensure they adhere to our standards. An assessment is done annually to determine which providers to keep in the HPN
and therefore the number of HPN providers may fluctuate from year-to-year.

Although it is not part of HIT’s core business, we will strategically
invest our assets to maximize risk-adjusted returns to shareholders. We provided a three-year promissory note to Kang Youle Limited,
an independent third party with access to a network of insurance sectors internationally. Furthermore, certain business customers elect
for a discount on premiums payable to carriers. In exchange for such discount, carriers are entitled to collect and retain such business
customers’ claim fund balance amounts (such positive claim fund balance amounts, the “Deferred Administrative Surplus”).
HIT as the platform company tracks and processes claims for carriers. Having all required information for collection on our platform,
we signed an agreement to give us the sole collection rights. The initial purchase amount equals 53% of collection amount, and the final
purchase amount equals 20% of collection amount. Given HIT in our role of providing services on a day-to-day basis for our customers,
we negotiated such collection rights. We continue to evaluate business opportunities and may expand on these business opportunities based
upon their success in the future.

Health in Tech — Power on Your Health Plan

We created HIT because traditional self-funding can be overly complicated
for many participants, costing both time and money, especially for the small business community. According to the U.S. Small Business
Association (SBA), in 2026, small businesses with 500 employees or fewer make up 99.9% of all U.S. businesses and represent
43.5% of GDP. However, small businesses are drastically underserved in their access to affordable, competitive health insurance. Compared
to large businesses, small businesses face higher year-over-year premium increases and pay more on average for less coverage. According
to the Kaiser Family Foundation (“KFF”) in its KFF 2025 Employer Health Benefits Survey (which surveys employers with ten
or more workers), 59% of small firms (10–199 workers) offer health benefits, implying that approximately 41% do not. Health insurance
remains the most important benefit for small businesses to attract and retain talent when competing against larger corporations.

Self-funded benefits plans and stop loss insurance policies generally
have lower administrative and operating costs, effective claim management, and can create large savings for businesses. Self-insured
businesses can also keep unused claim fund dollars. However, self-funded benefits plans are usually only designed for large corporations
due to program complexities. Many TPAs, brokers and managing general underwriters (MGUs) avoid selling stop loss insurance for self-funded
benefits plans even when products are available, because the complicated manual sales process is not easy and may not reduce expenses.

We founded HIT to solve these problems and to provide small businesses
with access to the high-quality, low-cost health care plans that are originally only available to large corporations. We seek to integrate
all aspects of self-funded benefits plans and stop loss insurance for small businesses with 10-100 employees, and larger sized businesses
with over 100 employees.

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Leveraging AI-backed technology from our third-party service providers,
our Enhanced Do It Yourself Benefit System (eDIYBS) is a rapid medical underwriting and broker quoting system. This technology simplifies
and automates the manual quoting and plan development process, meaningfully reducing the complexity and time associated with these tasks.
By removing friction and eliminating human factors, brokers can obtain a bindable proposal, a proposal containing all of the binding terms
of coverage, that has 12 plans with four tier rates in about two minutes. We also developed the HI Performance Network (HPN), which delivers
Medicare-based reimbursement pricing to a series of hospital facilities and providers. Our HPN now provides direct Medicare contracts
in 50 states with 1,317,732 providers that are licensed nationwide, including hospitals, as of December 31, 2025.

Additionally, our web-based HI Card platform has a user-friendly interface
designed to enable patients, TPAs, and businesses to access all of their benefits in one place. HI Card’s secure, proprietary technology
leverages existing systems to create a single, standardized transaction platform for providers, payers, and patients alike. With HI Card,
each participant in the healthcare transaction has secure real-time access to the same vital patient information — from
medical and drug histories to coverage eligibility and more.

As of December 31, 2025, we had clients in 40 states, with our
services and platforms actively utilized by 583 brokers, 12 Third-Party Administrators (TPAs), and 263 additional third-party agencies.
The self-funded benefits plans and stop loss insurance policies were sold to 795 business clients with 22,515 employees, and we managed
to maintain profitability while experiencing growth with a year-over-year revenue increase of 71% from 2024 to 2025.

Challenges in the Healthcare Market for Small Businesses Drive
Innovation

High healthcare costs and low value of health benefits for small
businesses. Healthcare costs have consistently outpaced inflation in recent years, and healthcare spending typically grows faster
than the economy. According to the Centers for Medicare & Medicaid Services’ National Health Expenditure Data, U.S. health
care spending grew 7.2% in 2024, reaching $5.3 trillion, or $15,474 per person. As a share of the nation’s Gross Domestic
Product (“GDP”), healthcare spending accounted for 18.0% in 2024.

Small businesses are underserved primarily due to a lack of insurance
service solutions and lack of competition. Self-funded benefits plans and stop loss insurance services offered by our platform are medically
underwritten through an automated process for a large majority of cases within the machine-learning algorithm. HIT aims to meaningfully
reduce costs compared to fully funded insurance services through an automated platform for low risk and small employers with comparatively
healthy employees, reducing processing times compared to a manual underwriting process that involves underwriters manually reviewing
health applications completed by each employee. We seek to offer a high value proposition for businesses to manage down their healthcare
costs.

Complicated insurance transaction procedures and manual processes
can be inefficient, costly, and difficult to scale. Based on our experience and feedback from brokers, traditional manual underwriting
and quoting workflows for self-funded benefits plans and associated stop-loss coverage may take approximately twelve days to three months
depending on the size of groups as these processes often require multiple documents to be compiled, reviewed and submitted manually.
By contrast, HIT has developed eDIYBS, a fast and user-friendly AI-backed system that is designed to shorten the sales cycle. In most
cases, our platform can produce a medical plan proposal in approximately two minutes to two weeks, subject to the receipt of required
underwriting information. Actual timelines may vary based on group-specific factors, data completeness, and underwriting requirements.

Lack of transparency in the healthcare industry has an adverse
impact in building trust and inability to manage costs. There are substantial difficulties for consumers to determine the true cost
of services before seeking care, and they often are unable to effectively compare costs when seeking the most suitable treatment. HIT
provides personalized and secured access to healthcare data through its HI Card platform, which is available 24/7 with maximal transparency.
Medical care specialists can facilitate and assist businesses in determining cost effective solutions without compromising quality. Healthcare
providers can view patients’ historical medical and the transactional information after obtaining the patient’s permission.
This makes diagnoses easier and more accurate.

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Massive and Growing Market Opportunities Across Employers of All
Sizes

U.S. healthcare spending remains sizeable and continues to grow. According
to the Centers for Medicare & Medicaid Services (“CMS”), U.S. health care spending reached approximately $5.32
trillion in 2024, or $15,474 per person, representing 18.0% of U.S. GDP.

Third-party market research estimates the U.S. group health insurance
market totaled approximately $1.413 trillion in 2024. Employer-sponsored
coverage represents a significant portion of this ecosystem, and self-funded arrangements are also widely adopted. According to the KFF
2025 Employer Health Benefits Survey, in 2024, 67% of covered workers were enrolled in a self-funded health plan, representing a $0.9
trillion market, and the survey notes that employers sponsoring self-funded plans often purchase stop-loss coverage to limit liability.

We believe the employer market is also highly fragmented. According
to the U.S. Small Business Administration Office of Advocacy, small businesses (generally firms with fewer than 500 employees) comprise
99.9%4 of U.S. firms and employ 62.3 million people.

Historically, our customer base has been concentrated among small
employers seeking more affordable and flexible alternatives to traditional fully insured coverage. However, as our underwriting and automation
capabilities have expanded, we are increasingly able to support employers across a broader range of sizes, including mid- and large-sized
employers. As of December 31, 2025, the total policies sold by third-party agents using our services approached $220 million
with 22,515 business employee participants.

As a result, while small employers remain an important and substantial
portion of our current customer base, we believe our addressable opportunity extends to employers of all sizes participating in self-funded
and other alternative funding arrangements supported by stop-loss coverage.

2 Centers for Medicare & Medicaid Services (CMS), National
Health Expenditure Accounts (NHEA) Fact Sheet (2024).

3 Grand View Research U.S. Group Health Insurance Market (2025
- 2030).

4 U.S. Small Business Administration Office of Advocacy posted
on Feb 3, 2026

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Our Strengths

Marketplace Innovator. Our AI-powered platforms using machine
learning, eDIYBS and HI Card, aim to deliver efficiency, availability, and security features. Our eDIYBS platform empowers licensed brokers
to sell stop loss insurance policy for self-funded benefits plans to employers. HIT seeks to make a difference in the growing healthcare
market with a distinctive business model that: (a) strives to democratize access to self-funded benefits plans and stop loss insurance
policies for business organizations, significantly broadening the client base; (b) leverages an AI machine learning technology to
streamline and simplify the offering, underwriting, and closing processes for self-funded benefits plan and stop loss insurance programs;
(c) enables TPAs and brokers to produce bindable proposals directly to business clients; (d) offers a mutually beneficial solution
that assists business clients in reducing total medical expenses without sacrificing coverage quality; and (e) hopes to ensure a
positive experience for both business clients and individual employees, in order to offer significant improvements in accessibility to
comprehensive health networks in the future.

Our web-based HI Card platform has a user-friendly interface, including
both web and mobile based features, are currently under continuous beta testing for a select group of customers. It is designed to enable
patients, TPAs, and businesses to access all of their benefits in one place.

●
24/7 transparency — patients can easily
obtain their plan design and deductible accumulator information. Patients can also authorize medical information and share with doctors
to save time.

●
Unlimited access to data — brokers are
empowered to manage customer information to improve efficiency, enable employers to better manage employee insurance information
to save costs, assist patients, manage health care and medical data to make better decisions.

●
Reference-based pricing — lower costs
for patients, streamlined claims processing for payers, faster payment turnaround for providers.

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Growing Distribution Channels

As of December 31, 2025, we had 583 brokers, 12 Third-Party Administrators
(TPAs), and 263 additional third-party agencies in 40 states registered on our platforms and selling our services. We coordinate all
aspects of programs and seek to provide our business customers with suitable and affordable insurance policies and health benefits plans
in the market. We plan to leverage our online quoting tools and HI Card to add strategic partnerships with large insurance brokerage
firms to the platform and continue to strengthen our distribution channels.

We are a health insurance marketplace where insurance companies can
list various stop-loss policy options for self-funded benefits plans. Our customers are employers of all sizes that need health insurance
plans. As a marketplace and platform company, we have contractual relationships with TPAs, carriers and employers. Our fees are earned
from employers and carriers upon a broker or TPA successfully selling a stop loss policy for self-funded benefits plans.

Our proprietary technology enables us to medically underwrite insurance
policies for carriers. We also offer customization of health benefits plans, vendors, claims, and network services. When licensed brokers
log in to our platform, they upload a census, select policy, design plans, obtain a bindable quote and sell them to businesses. These
offered services are interdependent, and cannot function effectively without being combined. Services provided by HI Card are optional
add-on to our services, and it cannot be offered on a standalone basis. Brokers are not obligated to utilize our HI Card service. Customers
use the HI Performance Network offering by HI Card, which is a series of hospital facilities and providers that deliver Medicare-based
reimbursement pricing. The HI Performance Network now provides direct Medicare contracts in 50 states with 1,317,732 providers that are
licensed nationwide, including hospitals, as of December 31, 2025. Except HI Card, which are optional add-on to our services, and
cannot function on a standalone basis, customers using any of our platforms have access to other platforms. Customers can also choose
other networks, if they prefer to use a preferred provider organization (PPO). We seek to obtain our customers by consistently improving
our platforms and services, and by providing convenience, speed and cost efficiency.

Our Contractual Relationships

SMR and HI Card contract with TPAs, which are contracted and authorized
by the business employers to enter into services contracts with SMR and HI Card on behalf of the business employers. We do not directly
interact with our employer customers, and primarily rely on TPAs and brokers, to set up the health benefits plan programs based on requirements
and preferences of the business employer. We are not a TPA. SMR and HI Card are not providing services to the TPAs, but instead,
have contracts to collaborate with the TPAs. For example, SMR collaborates with TPAs to facilitate the administration of health benefit
plans and stop-loss insurance policies to our customers, which are the business employers. The TPA will administer the purchased health
benefits plan and manage the multiple service providers associated with the health benefits plan and stop-loss insurance policy. Such
service providers are listed on the bindable quotes via the bindable sold case breakdown, which outlines the individual stop loss insurance
and benefits service offerings selected by the business and the cost of each. SMR selects health care vendors and creates different plans.
Once the business employer selects a plan, the platform will generate the sold case breakdown. Only the business employer can start or
terminate the relationship with the SMR and HI Card. The TPA cannot start or terminate the relationship with the SMR or HI Card. As a
third-party administrator, TPAs are contractually authorized and directed by the businesses to enter into agreements with other service
providers like SMR on behalf of the businesses. This is because businesses may lack the expertise and resources to manage self-funded
health benefits service providers. TPA’s responsibilities include paying fees to contracted vendors on behalf of business employers,
processing claims, managing enrollment through working with the underwriter, and administering self-funded health plans.

There is no contractual relationship between HIT and the brokers.
HIT’s platform provides credentialing for licensed brokers, allowing them to access our marketplace to select and sell self-funded
benefits plans for the business employer at no cost. Brokers are paid by the businesses, with no contractual relationship between HIT
and the brokers, only a credentialing process, and free access is provided.

ICE, acting as an underwriter for the carrier, contracts directly
with carriers. Carriers provide stop-loss insurance policies for the self-funded health benefits plans, and have contracts with ICE and
the businesses when a policy is sold. ICE, underwrites the policies and accepts insurance premiums from enrolled employees on behalf
of the carrier.

Program services provided by SMR and MGU activities conducted by ICE
(including eDIYBS) are interdependent and must be combined to function effectively. SMR selects health care vendors and creates different
plans. The stop-loss insurance policy and self-funded health benefits plans together help businesses manage and limit the risk exposure
of health benefits plans. HI Card services are an optional add-on and cannot be offered on a standalone basis.

Businesses pay fees based on the sold case breakdown. All the
fees are collected by TPAs pursuant to the sold case breakdown and are passed through to the respective vendors. Self-funded health plans
typically consist of 10 different vendors. Below is an outline of the flow of fees for our services.

●
SMR: Once the aggregate monthly fees are collected by the TPA from a business employer, the TPA
will then disburse the contracted fees to SMR based on the bindable sold case breakdown. The SMR’s services fee per employee
paid by the business employer per month ranges from $2 to $50 depending on selected services.

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●
ICE: ICE collects premiums from businesses on behalf of the carrier in accordance with the underwriting
guidelines. After collecting ICE’s underwriting fee and paying other acquisition costs on behalf of the carrier, the net premium
is transferred to the carrier. Underwriting fee is 12% – 13% of premium.

●
HI Card: Once the aggregate monthly fees are collected by the TPA from a business employer, the
TPA will then disburse the contracted fees to HI Card based on the bindable sold case breakdown. The average fee per employee paid
by the business employer for HI Card’s services is about $15 per month.

The contract term of a stop-loss health benefits plan is 12 months
of coverage plus a six month run-out period, a period of time after the end of the plan year which allows employees to request a reimbursement
for medical expenses that were incurred during the plan year. Fees and premium are paid monthly during the 12 month coverage period. Monthly
fees and premiums may vary based on enrollment changes (a change in the employee headcount). From time-to-time, a re-underwrite is required
pursuant to the carrier’s guidelines. In such cases, SMR and ICE provide ongoing services throughout the contract terms.

Dedicated Management Team with Extensive Industry Experience to
Drive Success

Our management team has in-depth know-how in the insurance industry
with significant experience in senior positions at large insurance healthcare businesses and entrepreneurship roles, including self-funded
benefits plans, stop loss insurance, medical insurance companies, TPAs, MGUs, retail brokerages, and health plan consulting firms. With
extensive industry experience, HIT is poised to continue innovating and simplifying the sales, communication, and underwriting processes
within the insurance and healthcare sectors. Our technological advancements are a direct result of our deep understanding and extensive
experience with various facets of insurance and healthcare interactions.

Proprietary Technology and Data Improve Efficiency and Transparency

Our frontend platform is a web-based portal, easily accessible, with
limited requirements for brokers to upload the basic minimum data. The uploaded data on the eDIYBS portal is instantly analyzed by an
AI-backed engine and our internal algorithm. Our proprietary underwriting algorithm leverages big-data analytics and nearly millions
of internal and external data points to produce a health score for an individual employee as of December 31, 2025. Our digitally enabled
approach to quoting has successfully reduced the need for human involvement in a significant part of the process. In most cases, this
system enables the generation of bindable quotes for an employer with enrolled individuals within the carrier’s accepted risk threshold
in about two minutes. All bindable quotes are within the carrier’s accepted risk threshold, which are developed and programmed
by our proprietary system. Any quotes outside of the risk acceptance threshold will be declined by the system automatically. For individuals
with health scores that surpass the carrier’s risk tolerance, our system intelligently produces a contingent proposal. In such
cases, brokers are guided to employ an electronic health application, enabling customers to supply additional information necessary to
finalize the sale and generate a comprehensive proposal.

Our Growth Strategy

Build a Marketplace for All Employers and All Insurance Carriers.
We are building a unified insurance marketplace designed to enable multiple insurance carriers to offer their products through a
single platform. We intend to advance this marketplace by continuing to expand participation across carriers and distribution partners.
We expect to focus initially on healthcare-related offerings and, over time, to broaden the marketplace into additional insurance verticals,
including Property & Casualty (“P&C”), as we build the necessary product capabilities and carrier relationships.

Offer a Full Suite of Insurance Products for Employers of All Sizes.
We intend to expand the breadth of products available to employers through our platform. Our current offering includes self-funded
stop-loss medical insurance. Over time, we plan to expand into additional product categories, including P&C and workers’ compensation,
which we currently expect to pursue as future expansion opportunities. We believe offering a broader suite of products can increase the
value of our platform to employers and distribution partners and support additional cross-sell opportunities.

Vertical Full Services Integration. We intend to deepen vertical
full services integration across our ecosystem by expanding one-stop vendor management and administrative services. We also plan to continue
growing sales distribution through broker agencies and to develop additional AI-enabled claims processing and reporting capabilities
designed to improve operational efficiency and scalability.

Data Analytics Services. We plan to offer data analytics services
to insurance carriers and provide insights intended to support cost containment and decision-making for employers and members. We believe
these analytics capabilities can enhance the value proposition of our platform and support improved outcomes across underwriting, plan
management, and ongoing administration.

Our Intellectual Property

We currently have seven registered trademarks, one pending trademark
application, three patents, and one pending patent application. Our patents cover our HI Card system, which is used to store, process
and access data. We have also registered the trademarks “HI Card,” “Health In Tech” and “HIT.” “SMR”
and “eDIYBS.”

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Use of Artificial Intelligence

Our eDIYBS platform is backed by third-party AI technology utilizing
machine learning. Our customers’ sensitive, proprietary, or confidential information could be leaked, disclosed, or revealed as
a result of or in connection with our vendors’ use of generative AI technologies. Any such information that we input into a third-party
machine learning platform could be revealed to others, including if information is used to train the third party’s machine learning
models. Additionally, where a machine learning model ingests personal information and makes connections using such data, those technologies
may reveal other sensitive, proprietary, or confidential information generated by the model.

Moreover, machine learning models may create incomplete, inaccurate,
or otherwise flawed outputs, some of which may appear correct. We use machine learning outputs from our vendors to make certain decisions.
Specifically, we provide information we receive from our customers, which may include sensitive health information, to third party vendors
who input that data into AI-backed models to determine a risk profile of each potential insurance plan member in order to quote the insurance
plan. Unlike many of our competitors, which only provide initial quotes using AI-backed risk profiles, but that are finally bindable
only after each employee to be insured completes a health application detailing the employee’s health history and other risks,
and the health application is reviewed by the underwriter to price the self-insured program, we provide bindable quotes solely using
our AI-backed eDIYBS platform within about two minutes, unless the eDIYBS platform raises certain unknown risk flags that require further
manual review via a health application completed by the employee and manually reviewed by an underwriter. Approximately 80% of bindable
quotes are provided solely using AI without further manual review. Providing bindable quotes solely using AI-backed technology can lead
to errors in the actual risk profile of the employee pool being insured, leading to higher insurance costs than originally anticipated
during the quoting process. The direct risk is borne by the insurance company providing the policy, however, if there is an increase
in such errors, insurance companies may refuse to continue allowing our eDIYBS platform to provide bindable quotes, reducing the value
of eDIYBS as compared to some of our competitors’ platforms, which may require greater usage of manual reviews of health applications,
thereby increasing quoting times, and reducing usage of our eDIYBS platform by brokers, TPAs, MGUs and others. Additionally, there may
be potential flaws in how the AI-backed models assesses risk profiles that could lead our eDIYBS platform to create higher risk profiles
that bias certain individuals or classes of individuals and adversely impact their rights. Although any such biased outcomes are currently
unknown to us, if any of these errors occur, we could face adverse consequences, including exposure to reputational and competitive harm,
customer loss, or regulatory and legal liability.

We have implemented an Artificial Intelligence Governance Policy to
establish a framework for the ethical and responsible use of AI technologies within our company, which aims to ensure that AI systems
are used, developed, deployed, and managed in a manner that aligns with our organizational values, regulatory requirements, and industry
best practices. This policy applies to all employees, contractors, and third parties involved in the use, development, deployment, management,
and use of AI systems within our company. The policy requires that we provide regular training and awareness programs for our employees
on AI technologies, ethical considerations, and compliance requirements, and to engage with customers, regulators, and the public, to
gather feedback and ensure transparency in the use of AI systems. It also requires that the AI systems be designed and implemented to
prevent bias and ensure fairness, and that we regularly audit our service providers to identify and mitigate any such biases. Any non-compliance
with the policy by an employee or service provider may result in disciplinary action, up to and including termination of employment or
contracts.

In compliance with the policy, we carefully select and conduct due
diligence of third-party vendors, evaluating their reputation, track record, and compliance with industry standards and fairness. We
establish clear contractual agreements that define the responsibilities and obligations of third parties concerning data security and
privacy, including clauses for data breach notification and compliance with relevant regulations such as HIPAA. We conduct regular
security assessments and audits to identify any potential vulnerabilities and ensure third-party systems adhere to security and fairness
standards. Additionally, we enforce data encryption both in transit and at rest, along with strict access control measures, limits data
access to authorized personnel only.

We leverage continuous monitoring mechanisms which are vital for detecting
and responding to security incidents involving third-party systems, supported by tools like Security Information and Event Management
(SIEM) to track and analyze security events. In addition, we conduct risk assessments which helps evaluate the potential effects of third-party
data processing on individual privacy and mitigate associated risks. Data acquired from our third party service providers is checked
against our claims data and/or health applications regularly. Our underwriting team tests samples of groups of claims data on a routine
basis to validate that the results from our third party service providers are performing as expected. Parameters are in place on every
code call to our third party service provider to validate that the data returned is within our defined tolerances. Data outside of those
tolerances are flagged for manual underwriting review. The Company does not currently use any form of AI within our eDIYBS application,
and relies solely on third party service providers.

The agreement with the AI data service provider was entered into on
January 26, 2022. The agreement provides services including predictive modeling solutions utilizing the service provider’s software
and decision engine that is hosted and managed by the service provider. The agreement is subject to a new work order which extends three
years from October 1, 2024 to September 30, 2027. The Company will have the one time right to terminate the agreement for any reason
at the end of the second year with 60 days prior written notice. Pursuant to the agreement, the Company agreed to pay the service provider
on a per user basis based on the number of users, with a minimum monthly fee of $60,000.

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We have also developed a robust incident response plan, integrating
third parties into the process, and ensuring their awareness of roles and responsibilities further strengthen security measures. We conduct
regular training and awareness programs for employees and third-party personnel on data security and privacy best practices. Adopting
the principle of data minimization ensures that only necessary data is shared with third parties, and unnecessary data is regularly reviewed
and purged. Finally, we ensure compliance with legal and regulatory requirements by staying updated on changes in data protection laws
which are crucial for reducing data exposure risks and maintaining secure AI operations.

Automated systems rely on vast amounts of data to find patterns or
correlations, including AI technology that utilizes machine learning, and then apply those patterns to new data to perform tasks or make
recommendations and predictions. While these tools can be useful, these tools also have the potential to produce outcomes that result
in unlawful discrimination. Various federal agencies have issued statements on their agencies’ response to AI risks related to
civil rights and consumer protection law. The statements outlined ongoing work on AI issues and listed as categories of potential sources
of discrimination in automated systems:

●
Data and datasets, including datasets that are unrepresentative or
incorporate historical bias.

●
Model opacity and access.

●
Design and use, including the context for use of automated systems.

Although we believe the current AI-related regulations are not a material
risk to our business, there can be no assurances that interpretations of existing regulations or the implementation of new regulations
will create material regulatory risk to us in the future.

Regulation

Our business operates in a heavily regulated industry. Various aspects
of our business are, may become, or may be viewed by regulators from time to time as subject, directly or indirectly, to U.S. federal
and state laws and regulations. We are affected by laws and regulations that apply to businesses in general and the insurance services
industry, as well as to businesses operating on the internet and through mobile applications. This includes a continually expanding and
evolving range of laws, regulations and standards that address information security, data protection, privacy and data collection, among
other things. We are also subject to laws governing marketing and advertising activities conducted by telephone, email, mobile devices
and the Internet.

We are an insurance technology company that provides a platform to
facilitate self-insured private employer health plans. Self-insured private employer health plans generally fall under the jurisdiction
of the Employee Retirement Income Security Act of 1974 (ERISA), a federal law enforced by the US Department of Labor and the Employee
Benefits Security Administration, which limits the ability of states to regulate such plans to avoid duplicative or conflicting regulations
which would make it more difficult for employer to offer health insurance to its employees. As a result of the ERISA preemption, we are
able to offer our insurance technology platform throughout the states and make employer-sponsored health insurance plans accessible for
businesses and deliver cost and time savings for employers, employees, members, brokers, Third-party Administrators (TPAs), and providers.

In addition, SMR is a licensed insurance agent in the State of South
Carolina. As such, SMR is licensed to sell or broker insurance products in South Carolina should SMR choose to sell or broker any products.
SMR has not sold or brokered any insurance products to date and may not do so in the future. Accordingly, except as noted for SMR in
South Carolina, neither HIT nor any of its other subsidiaries acts in any of these roles that require a state insurance license in providing
its insurance related services and products.

Because the laws and regulations governing insurance services, privacy,
data security and marketing are constantly evolving and striving to keep pace with innovations in technology and media, it is possible
that we may need to materially alter the way we conduct some parts of our business activities or be prohibited from conducting such activities
altogether at some point in the future.

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Our Leadership Team

We have assembled an experienced management team with deep insurance
and technology experience. Our management team has in-depth know-how in the insurance sector through experience in senior positions in
large insurance healthcare companies and entrepreneurship at self-funded benefits, stop loss insurance and medical insurance companies,
TPAs, MGUs, retail brokerages, and health plan consulting firms. With extensive industry experience, we believe we can create solutions
that simplify the sales process, digitalize and automate underwriting, and streamline the communication process. The technology we have
constructed is based on the knowledge and experience of our management in insurance and healthcare sector. Members of our team bring
experience from multiple insurance companies including AIG, CB, HealthSmart, Lucent Health, and Fidelity Life, among others.

Our Corporate Information

We were incorporated in Nevada in November 2021. We have our
headquarters in Stuart, Florida, with many of our team members working remotely throughout the United States. Our principal executive
office is located at 701 S. Colorado Ave, Suite 1, Stuart, FL 34994, and our phone number is 888-373-0333. In September 2013,
our founder, Tim Johnson, established International Captive Exchange, LLC, an Iowa limited liability company, which as of November 2021
is our wholly-owned subsidiary. In March 2022, International Captive Exchange merged with DIYBS, LLC, an Iowa limited liability
company, with International Captive Exchange surviving the merger. In December 2014, our founder, Tim Johnson, established Stone
Mountain Risk, LLC, an Iowa limited liability company, which as of November 2021, is a wholly owned subsidiary of HIT. In March 2017,
Mr. Johnson, established HI Card LLC, an Iowa limited liability company which as of November 2021, is a wholly owned subsidiary
of HIT.

Our website address is www.healthintech.com. The information
contained on our website is not a part of this Report, and you should not consider any information contained on, or that can be accessed
through, our website as part of this Report or in deciding whether to purchase our Class A common stock.

Competition

The insurance services technology industry is characterized by a rapid
evolution of technologies, significant competition and strong defense of intellectual property. While we believe that our platforms,
technology, knowledge, experience, and resources provide us with unique competitive advantages, we expect to face competition from established
insurance carriers and other companies that offer self-funded health plan solutions to employer groups.

Our competitors include insurance carriers that provide self-funded
insurance products and related administrative services to employers, including UnitedHealth Group Incorporated (NYSE: UNH), The Cigna
Group (NYSE: CI), CVS Health Corporation (NYSE: CVS), Elevance Health, Inc. (NYSE: ELV), and Humana Inc. (NYSE: HUM). These companies
generally offer broad employer health benefit solutions, including access to provider networks, administrative services, and stop-loss
or other risk-bearing insurance products.

We are not carriers that
assume underwriting risk. Instead, our platform supports the underwriting and quoting process by applying carrier’s underwriting
criteria and workflow automation to facilitate the placement of self-funded health plan products. As a result, we compete primarily on
the basis of speed, efficiency, technology integration, and ease of use, rather than by taking insurance risk onto our own balance sheet.

Many of the companies against which we may compete have significantly
greater financial resources and expertise in research and development. Smaller or early-stage companies may also prove to be significant
competitors, particularly through collaborative arrangements with large and established companies. These early stage and more established
competitors also compete with us in recruiting and retaining qualified insurance services and technology personnel and establishing new
technology, as well as in acquiring technologies complementary to, or necessary for, our platforms.

Initial Public Offering

On December 24, 2024, we completed our Initial Public Offering of
2,300,000 shares of Class A Common Stock at a price of $4.00 per share. The total gross proceeds received from the initial public offering
was $9.2 million before deducting underwriting discounts and commissions.

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Implications of Being an Emerging Growth Company

We are an “emerging growth company,” as defined in Section 2(a) of
the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups
Act of 2012, or the JOBS Act. As such, we are eligible to take advantage of certain exemptions from various reporting requirements
that are applicable to other public companies that are not emerging growth companies including, but not limited to:

●
not being required to comply with the auditor attestation requirements of Section 404 of the
Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act;

●
reduced disclosure obligations regarding executive compensation in our periodic reports, proxy
statements, and registration statements; and

●
exemptions from the requirements of holding a non-binding advisory vote on executive compensation
and stockholder approval of any golden parachute payments not previously approved.

If some investors find our Class A Common Stock less attractive
as a result of these exemptions, there may be a less active trading market for our Class A Common Stock and the price of our Class A
Common Stock may be more volatile.

In addition, Section 107 of the JOBS Act also provides that an
emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We intend to take advantage of the benefits of
this extended transition period.

We will remain an emerging growth company until the earlier of: (1) the
last day of the fiscal year (a) following the fifth anniversary of the completion of our initial public offering, (b) in
which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated
filer, which means the market value of our Class A Common Stock that is held by non-affiliates exceeds $700 million as of the
prior June 30, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt securities during
the prior three-year period. References herein to emerging growth company will have the meaning associated with it in the JOBS Act.

Implications of Being a Smaller Reporting Company

Additionally, we are a “smaller reporting company” as
defined in Rule 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure
obligations, including, among other things, providing only two years of audited financial statements. We will remain a smaller reporting
company until the last day of the fiscal year in which (1) the market value of our Class A Common Stock held by non-affiliates
equals or exceeds $250 million as of the end of that year’s second fiscal quarter, or (2) our annual revenues equaled
or exceeded $100 million during such completed fiscal year and the market value of our Class A Common Stock held by non-affiliates
equals or exceeds $700 million as of the end of that year’s second fiscal quarter.

Facilities

Our headquarters is in Stuart, Florida where we currently lease office
space with approximately 4,900 square feet under a five year lease starting in November 2022, under which we currently pay approximately
$10,660 per month. We believe that this space is sufficient to meet our needs for the foreseeable future and that any additional space
we may require will be available on commercially reasonable terms. Additionally, we intend to continue to maintain our business model
designed to leverage virtual technology to minimize brick and mortar facilities while optimizing our ability to attract top talented
employees that may reside in any geography.

Employees

As of December 31, 2025, we had a total of 87 full-time employees
and 4 part-time employees. We believe that we maintain a satisfactory working relationship with our employees, and we have not experienced
any significant labor disputes or any difficulty in recruiting staff for our operations. None of our employees is represented by a labor
union.

Human Capital Resources

Employee Engagement, Talent Development & Benefits. We
believe that our future success largely depends upon our continued ability to attract and retain highly skilled employees. We provide
our employees with competitive salaries and bonuses, and intend to provide opportunities for equity ownership.

Diversity, Inclusion, and Culture. Much of our success is rooted
in the diversity of our teams and our commitment to inclusion. We value diversity at all levels and continue to focus on extending our
diversity and inclusion initiatives across our entire workforce. We believe that our business benefits from the different perspectives
a diverse workforce brings, and we pride ourselves on having a strong, inclusive and positive culture based on our shared mission and
values.

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