RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company has restated its previously reported unaudited consolidated financial statements for the three and six months ended June 30, 2018 and June 30, 2017. The restatements reflect corrections of errors identified in connection with the preparation of the consolidated financial statements for the year ended December 31, 2018, and relate primarily to i) the reclassification of certain investments acquired from Mendota Insurance Company and Mendakota Casualty Company on October 18, 2018 from assets held for sale to equity investments, limited liability investments, limited liability investments, at fair value and other investments in the consolidated balance sheet; and the reclassification of investment income, related to these investments, from loss from discontinued operations, net of taxes to net investment income, net realized gains (losses) and (loss) gain on change in fair value of equity investments in the consolidated statement of operations ("Error 1"); ii) the consolidation of certain limited liability investments that had previously been accounted for under the equity method of accounting ("Error 2"); and iii) the reclassification from cash and cash equivalents to restricted cash in the consolidated balance sheets ("Error 3"). For the three months ended June 30, 2018, correcting these errors increased the Company’s net loss by $0.4 million (decrease to net loss of $0.1 million for the six months ended June 30, 2018). For the three and six months ended June 30, 2017, correcting these errors increased the Company’s net loss by $0.5 million and$0.4 million, respectively.

Along with restating our financial statements for the three and six months ended June 30, 2018 and June 30, 2017 to correct the errors discussed above, the Company has recorded certain immaterial accounting adjustments related to the periods covered by this Form 10-Q/A. For the three and six months ended June 30, 2018, recording these certain immaterial accounting adjustments increased the Company’s net loss by $1.5 million and $2.2 million, respectively. For the three and six months ended June 30, 2017, recording these certain immaterial accounting adjustments decreased the Company’s net loss by $0.0 million and $0.2 million, respectively. Refer to the notes under the tables below for descriptions of these immaterial accounting adjustments.

In addition to these items, certain other amounts have been reclassified in the consolidated statements of operations and consolidated balance sheet to conform to current year presentation. Such reclassifications had no impact on previously reported net loss or total shareholders' equity.

The following table presents the effects of the error corrections, immaterial accounting adjustments and reclassifications on the Company’s consolidated balance sheet at June 30, 2018:



(in thousands)												June 30, 2018
	As Previously Reported on Form 10-Q filed August 8, 2018		Correction of Error 1			Correction of Error 2			Correction of Error 3			Immaterial Accounting Adjustments and Reclassifications				As Restated
Assets:
Investments:
Fixed maturities, at fair value	$	11,361	$	—		$	—		$	—		$	—			$	11,361
Equity investments, at fair value	2,189		244			—			—			—				2,433
Limited liability investments	5,217		3,515			(890		)	—			(764		)	(a), (b)	7,078
Limited liability investments, at fair value	4,869		3,629			22,918			—			—				31,416
Investments in private companies, at adjusted cost	—		—			3,865			—			755			(a)	4,620
Real estate investments, at fair value	—		—			10,662			—			—				10,662
Other investments, at cost which approximates fair value	1,916		1,400			—			—			—				3,316
Short-term investments, at cost which approximates fair value	151		—			—			—			—				151
Total investments	25,703		8,788			36,555			—			(9		)		71,037
Cash and cash equivalents	24,713		—			612			(13,760		)	(947		)	(c)	10,618
Restricted cash	—		—			—			13,760			—				13,760
Investment in investee	4,947		—			—			—			—				4,947
Accrued investment income	161		—			140			—			—				301
Service fee receivable	5,173		—			—			—			45			(d)	5,218
Other receivables	7,907		—			(53		)	—			1,010			(c)	8,864
Deferred acquisition costs, net	6,662		—			—			—			—				6,662
Property and equipment	105,246		—			—			—			—				105,246
Goodwill	80,112		—			—			—			731			(e)	80,843
Intangible assets	79,519		—			—			—			(584		)	(e)	78,935
Other assets	3,592		—			—			—			—				3,592
Assets held for sale	138,804		(8,788		)	(14,909		)	—			—				115,107
Total Assets	$	482,539	$	—		$	22,345		$	—		$	246			$	505,130
Liabilities and Shareholders' Equity

Liabilities:
Accrued expenses and other liabilities	$	10,946	$	—		$	437		$	—		$	(129	)	(a), (c), (d), (f), (g)	$	11,254
Income taxes payable	2,801		—			—			—			—				2,801
Deferred service fees	41,221		—			—			—			3,147			(a), (c), (d), (h)	44,368
Unpaid loss and loss adjustment expenses	5,209		—			—			—			(2,615		)	(a)	2,594
Bank loan	4,417		—			—			—			—				4,417
Notes payable	184,567		—			16,976			—			—				201,543
Subordinated debt, at fair value	52,822		—			—			—			—				52,822
Net deferred income tax liabilities	28,796		—			—			—			23			(e)	28,819
Liabilities held for sale	112,866		—			—			—			—				112,866
Total Liabilities	443,645		—			17,413			—			426				461,484

Redeemable Class A preferred stock	5,477		—			—			—			215			(f)	5,692

Shareholders' Equity:
Common stock	—		—			—			—			—				—
Additional paid-in capital	356,609		—			—			—			(362		)	(f)	356,247



Accumulated deficit	(364,917		)	—		(221		)	—		10			(b), (d)(e), (f), (g), (h)	(365,128		)
Accumulated other comprehensive income	36,322			—		224			—		—				36,546
Shareholders' equity attributable to common shareholders	28,014			—		3			—		(352		)		27,665
Noncontrolling interests in consolidated subsidiaries	5,403			—		4,929			—		(43		)	(d), (h)	10,289
Total Shareholders' Equity	33,417			—		4,932			—		(395		)		37,954
Total Liabilities, Class A preferred stock and Shareholders' Equity	$	482,539		$	—	$	22,345		$	—	$	246			$	505,130

The following table presents the effects of the error corrections, immaterial accounting adjustments and reclassifications on the Company’s consolidated balance sheet at December 31, 2017:



(in thousands)													December 31, 2017
	As Previously Reported in Exhibit 99.2 to the Form 8-K filed November 7, 2018			Correction of Error 1			Correction of Error 2			Correction of Error 3			Immaterial Accounting Adjustments and Reclassifications				As Restated
Assets:
Investments:
Fixed maturities, at fair value	$	14,541		$	—		$	—		$	—		$	—			$	14,541
Equity investments, at fair value	4,476			113			—			—			—				4,589
Limited liability investments	4,922			6,113			(1,091		)	—			(850		)	(a)	9,094
Limited liability investments, at fair value	5,771			4,545			21,895			—			—				32,211
Investments in private companies, at adjusted cost	—			—			4,020			—			850			(a)	4,870
Real estate investments, at fair value	—			—			10,662			—			—				10,662
Other investments, at cost which approximates fair value	2,321			1,400			—			—			—				3,721
Short-term investments, at cost which approximates fair value	151			—			—			—			—				151
Total investments	32,182			12,171			35,486			—			—				79,839
Cash and cash equivalents	20,774			—			310			(14,985		)	(722		)	(c)	5,377
Restricted cash	—			—			—			14,985			—				14,985
Investment in investee	5,230			—			—			—			—				5,230
Accrued investment income	331			—			176			—			—				507
Service fee receivable	4,286			—			—			—			145			(c)	4,431
Other receivables	6,536			—			(48		)	—			759			(c)	7,247
Deferred acquisition costs, net	6,325			—			—			—			—				6,325
Property and equipment	108,008			—			—			—			—				108,008
Goodwill	80,112			—			—			—			731			(e)	80,843
Intangible assets	80,062			—			—			—			(616		)	(e)	79,446
Other assets	4,302			—			—			—			—				4,302
Assets held for sale	136,452			(12,171		)	(14,136		)	—			—				110,145
Total Assets	$	484,600		$	—		$	21,788		$	—		$	297			$	506,685
Liabilities and Shareholders' Equity

Liabilities:
Accrued expenses and other liabilities	$	10,924		$	—		$	432		$	—		$	(997	)	(a), (c), (d), (f), (g)	$	10,359
Income taxes payable	2,644			—			—			—			—				2,644
Deferred service fees	42,257			—			—			—			(1,144		)	(a), (h)	41,113
Unpaid loss and loss adjustment expenses	1,329			—			—			—			—				1,329
Bank loan	4,917			—			—			—			—				4,917
Notes payable	186,469			—			17,179			—			—				203,648
Subordinated debt, at fair value	52,105			—			—			—			—				52,105
Net deferred income tax liabilities	28,745			—			—			—			18			(e)	28,763
Liabilities held for sale	105,900			—			—			—			—				105,900
Total Liabilities	435,290			—			17,611			—			(2,123		)		450,778

Redeemable Class A preferred stock	5,461			—			—			—			(281		)	(f)	5,180

Shareholders' Equity:
Common stock	—			—			—			—			—				—
Additional paid-in capital	356,021			—			—			—			150			(f)	356,171
Accumulated deficit	(313,487		)	—			(51		)	—			2,585			(d), (e), (f), (g), (h)	(310,953		)
Accumulated other comprehensive loss	(3,852		)	—			—			—			—				(3,852		)
Shareholders' equity attributable to common shareholders	38,682			—			(51		)	—			2,735				41,366



Noncontrolling interests in consolidated subsidiaries	5,167		—		4,228		—		(34		)	(d), (h)	9,361
Total Shareholders' Equity	43,849		—		4,177		—		2,701				50,727
Total Liabilities, Class A preferred stock and Shareholders' Equity	$	484,600	$	—	$	21,788	$	—	$	297			$	506,685

The following table presents the effects of the error corrections, immaterial accounting adjustments and reclassifications on the Company’s consolidated statement of operations for the three months ended June 30, 2018:



(in thousands)	Three months ended June 30, 2018
	As Previously Reported on Form 10-Q filed August 8, 2018			Correction of Error 1			Correction of Error 2			Correction of Error 3		Immaterial Accounting Adjustments and Reclassifications				As Restated

Revenues:
Service fee and commission income	$	9,479		$	—		$	—		$	—	$	(619	)	(a), (c), (h)	$	8,860
Rental income	3,341			—			—			—		4			(c)	3,345
Other income	108			—			—			—		—				108
Total revenues	12,928			—			—			—		(615		)		12,313
Operating expenses:
Claims authorized on vehicle service agreements	—			—			—			—		1,392			(a)	1,392
Loss and loss adjustment expenses	2,625			—			—			—		(1,324		)	(a)	1,301
Commissions	932			—			—			—		(98		)	(c)	834
Cost of services sold	1,464			—			—			—		—				1,464
General and administrative expenses	7,305			—			10			—		(20		)	(c), (d), (f)	7,295
Leased real estate segment interest expense	1,546			—			—			—		—				1,546
Total operating expenses	13,872			—			10			—		(50		)		13,832
Operating loss	(944		)	—			(10		)	—		(565		)		(1,519		)
Other revenues (expenses), net:
Net investment income	18			(70		)	635			—		427			(a)	1,010
Net realized (losses) gains	(1		)	133			—			—		—				132
Loss on change in fair value of equity investments	(248		)	(173		)	—			—		—				(421		)
Loss on change in fair value of limited liability investments, at fair value	—			—			(98		)	—		(427		)	(a)	(525		)
Net change in unrealized loss on private company investments	—			—			(155		)	—		—				(155		)
Non-operating other income	973			—			(16		)	—		(943		)	(g)	14
Interest expense not allocated to segments	(1,519		)	—			(325		)	—		—				(1,844		)
Amortization of intangible assets	(271		)	—			—			—		17			(e)	(254		)
Loss on change in fair value of debt	(142		)	—			—			—		—				(142		)
Gain on disposal of subsidiary	—			—			—			—		17			(c)	17
Equity in net income of investee	(385		)	—			—			—		—				(385		)
Total other revenues (expenses), net	(1,575		)	(110		)	41			—		(909		)		(2,553		)
(Loss) income from continuing operations before income tax expense	(2,519		)	(110		)	31			—		(1,474		)		(4,072		)
Income tax expense	187			—			—			—		3			(e)	190
(Loss) income from continuing operations	(2,706		)	(110		)	31			—		(1,477		)		(4,262		)
Income (loss) from discontinued operations, net of taxes	911			110			(432		)	—		5			(c)	594
Loss on disposal of discontinued operations, net of taxes	(6,611		)	—			—			—		(17		)	(c)	(6,628		)
Net loss	(8,406		)	—			(401		)	—		(1,489		)		(10,296		)
Less: net income attributable to noncontrolling interests in consolidated subsidiaries	108			—			48			—		2			(d), (h)	158
Less: dividends on preferred stock, net of tax	130			—			—			—		129			(f)	259
Net loss attributable to common shareholders	$	(8,644	)	$	—		$	(449	)	$	—	$	(1,620	)		$	(10,713	)
Loss per share - continuing operations:
Basic:	$	(0.14	)	$	(0.01	)	$	—		$	—	$	(0.07	)		$	(0.22	)
Diluted:	$	(0.14	)	$	(0.01	)	$	—		$	—	$	(0.07	)		$	(0.22	)
Loss per share - discontinued operations:



Basic:	$	(0.26	)	$	—	$	(0.02	)	$	—	$	—		$	(0.28	)
Diluted:	$	(0.26	)	$	—	$	(0.02	)	$	—	$	—		$	(0.28	)
Loss per share – net loss attributable to common shareholders:
Basic:	$	(0.40	)	$	—	$	(0.02	)	$	—	$	(0.07	)	$	(0.49	)
Diluted:	$	(0.40	)	$	—	$	(0.02	)	$	—	$	(0.07	)	$	(0.49	)
Weighted average shares outstanding (in ‘000s):
Basic:	21,708			—		—			—		—			21,708
Diluted:	21,708			—		—			—		—			21,708



(in thousands)										Three months ended June 30, 2017
	As Previously Reported on Form 10-Q filed August 8, 2018			Correction of Error 1			Correction of Error 2			Correction of Error 3		Immaterial Accounting Adjustments and Reclassifications				As Restated

Revenues:
Service fee and commission income	$	6,584		—			—			—		(20		)	(a), (c), (h)	6,564
Rental income	3,347			—			—			—		7			(c)	3,354
Other income	211			—			—			—		—				211
Total revenues	10,142			—			—			—		(13		)		10,129
Operating expenses:
Claims authorized on vehicle service agreements	—			—			—			—		1,318			(a)	$	1,318
Loss and loss adjustment expenses	1,338			—			—			—		(1,339		)	(a)	$	(1	)
Commissions	811			—			—			—		23			(c)	834
Cost of services sold	1,291			—			—			—		—				$	1,291
General and administrative expenses	6,522			—			7			—		(16		)	(f)	6,513
Leased real estate segment interest expense	1,569			—			—			—		—				1,569
Total operating expenses	11,531			—			7			—		(14		)		11,524
Operating (loss) income	(1,389		)	—			(7		)	—		1				(1,395		)
Other revenues (expenses), net:
Net investment (loss) income	(1,347		)	475			444			—		1,292			(a)	864
Net realized losses	(1		)	—			—			—		—				(1		)
(Loss) gain on change in fair value of limited liability investments, at fair value	—			(821		)	400			—		(1,292		)	(a)	(1,713		)
Net change in unrealized loss on private company investments	—			—			(1,512		)	—		—				(1,512		)
Non-operating other income	31			—			(18		)	—		—				13
Interest expense not allocated to segments	(1,216		)	—			(333		)	—		—				(1,549		)
Amortization of intangible assets	(289		)	—			—			—		17			(e)	(272		)
Contingent consideration benefit	212			—			—			—		—				212
Loss on change in fair value of debt	(2,702		)	—			—			—		—				(2,702		)
Equity in net income of investee	(145		)	—			—			—		—				(145		)
Total other revenues (expenses), net	(5,457		)	(346		)	(1,019		)	—		17				(6,805		)
(Loss) income from continuing operations before income tax expense	(6,846		)	(346		)	(1,026		)	—		18				(8,200		)
Income tax expense	1,251			—			—			—		4			(e)	1,255
(Loss) income from continuing operations	(8,097		)	(346		)	(1,026		)	—		14				(9,455		)
(Loss) income from discontinued operations, net of taxes	(562		)	346			573			—		9			(c)	366
Gain on disposal of discontinued operations, net of taxes	1,017			—			—			—		—				$	1,017
Net (loss) income	(7,642		)	—			(453		)	—		23				(8,072		)
Less: net income (loss) attributable to noncontrolling interests in consolidated subsidiaries	100			—			(438		)	—		—				(338		)
Less: dividends on preferred stock, net of tax	154			—			$	—		—		132			(f)	$	286
Net loss attributable to common shareholders	$	(7,896	)	$	—		$	(15	)	$	—	$	(109	)		$	(8,020	)
Loss per share - continuing operations:
Basic:	$	(0.39	)	$	—		$	—		$	—	$	—			$	(0.39	)



Diluted:	$	(0.39	)	$	(0.01	)	$	(0.03	)	$	—	$	(0.01	)	$	(0.44	)
(Loss) earnings per share - discontinued operations:
Basic:	$	0.02		$	0.01		$	0.03		$	—	$	—		0.06
Diluted:	$	0.02		$	0.01		$	0.03		$	—	$	—		0.06
Loss per share – net loss attributable to common shareholders:
Basic:	$	(0.37	)	$	—		$	—		$	—	$	—		$	(0.37	)
Diluted:	$	(0.37	)	$	—		$	—		$	—	$	—		$	(0.37	)
Weighted-average shares outstanding (in ‘000s):
Basic:	21,458			—			—			—		—			21,458
Diluted:	21,458			—			—			—		—			21,458



(in thousands)	Six months ended June 30, 2018
	As Previously Reported on Form 10-Q filed August 8, 2018			Correction of Error 1			Correction of Error 2			Correction of Error 3		Immaterial Accounting Adjustments and Reclassifications				As Restated

Revenues:
Service fee and commission income	$	19,670		$	—		$	—		$	—	(1,159		)	(a), (c), (h)	$	18,511
Rental income	6,682			—			—			—		11			(c)	6,693
Other income	321			—			—			—		—				321
Total revenues	26,673			—			—			—		(1,148		)		25,525
Operating expenses:
Claims authorized on vehicle service agreements	—			—			—			—		2,764			(a)	2,764
Loss and loss adjustment expenses	4,247			—			—			—		(2,600		)	(a)	1,647
Commissions	1,817			—			—			—		(70		)	(c)	1,747
Cost of services sold	3,716			—			—			—		—				3,716
General and administrative expenses	14,702			—			23			—		46			(c),(d), (f)	14,771
Leased real estate segment interest expense	3,098			—			—			—		—				3,098
Total operating expenses	27,580			—			23			—		140				27,743
Operating loss	(907		)	—			(23		)	—		(1,288		)		(2,218		)
Other revenues (expenses), net:
Net investment (loss) income	(613		)	(613		)	1,067			—		1,807			(a), (b)	1,648
Net realized gains	9			137			251			—		—				397
Gain on change in fair value of equity investments	614			130			—			—		—				744
Gain (loss) on change in fair value of limited liability investments, at fair value	—			—			355			—		(1,816		)	(a)	(1,461		)
Net change in unrealized loss on private company investments	—			—			(155		)	—		—				(155		)
Non-operating other income	987			—			(33		)	—		(933		)	(g)	21
Interest expense not allocated to segments	(2,905		)	—			(656		)	—		—				(3,561		)
Amortization of intangible assets	(543		)	—			—			—		34			(e)	(509		)
Loss on change in fair value of debt	(1,061		)	—			—			—		—				(1,061		)
Gain on disposal of subsidiary	—			—			—			—		17			(c)	17
Equity in net loss of investee	(284		)	—			—			—		—				(284		)
Total other revenues (expenses), net	(3,796		)	(346		)	829			—		(891		)		(4,204		)
(Loss) income from continuing operations before income tax expense	(4,703		)	(346		)	806			—		(2,179		)		(6,422		)
Income tax expense	438			—			—			—		6			(e)	444
(Loss) income from continuing operations	(5,141		)	(346		)	806			—		(2,185		)		(6,866		)
Income (loss) from discontinued operations, net of taxes	1,318			346			(696		)	—		12			(c)	980
Loss on disposal of discontinued operations, net of taxes	(6,611		)	—			—			—		(17		)	(c)	(6,628		)
Net loss	(10,434		)	—			110			—		(2,190		)		(12,514		)
Less: net income (loss) attributable to noncontrolling interests in consolidated subsidiaries	243			—			278			—		(4		)	(d), (h)	517
Less: dividends on preferred stock, net of tax	259			—			—			—		253			(f)	512
Net loss attributable to common shareholders	$	(10,936	)	$	—		$	(168	)	$	—	$	(2,439	)		$	(13,543	)
(Loss) earnings per share - continuing operations:
Basic:	$	(0.26	)	$	(0.01	)	$	0.02		$	—	$	(0.11	)		$	(0.36	)
Diluted:	$	(0.26	)	$	(0.01	)	$	0.02		$	—	$	(0.11	)		$	(0.36	)
(Loss) earnings per share - discontinued operations:
Basic:	$	(0.24	)	$	0.01		$	(0.03	)	$	—	$	—			$	(0.26	)
Diluted:	$	(0.24	)	$	0.01		$	(0.03	)	$	—	$	—			$	(0.26	)



Loss per share – net loss attributable to common shareholders:
Basic:	$	(0.50	)	$	—	$	(0.01	)	$	—	$	(0.11	)	$	(0.62	)
Diluted:	$	(0.50	)	$	—	$	(0.01	)	$	—	$	(0.11	)	$	(0.62	)
Weighted average shares outstanding (in ‘000s):
Basic:	21,708			—		—			—		—			21,708
Diluted:	21,708			—		—			—		—			21,708



(in thousands)										Six months ended June 30, 2017
	As Previously Reported on Form 10-Q filed August 8, 2018			Correction of Error 1			Correction of Error 2			Correction of Error 3		Immaterial Accounting Adjustments and Reclassifications				As Restated

Revenues:
Service fee and commission income	$	12,946		$	—		$	—		$	—	$	273		(a), (c), (h)	$	13,219
Rental income	6,694			—			—			—		13			(c)	6,707
Other income	569			—			—			—		—				569
Total revenues	20,209			—			—			—		286				20,495
Operating expenses:
Claims authorized on vehicle service agreements	—			—			—			—		2,679			(a)	2,679
Loss and loss adjustment expenses	2,557			—			—			—		(2,558		)	(a)	(1		)
Commissions	1,579			—			—			—		50			(c)	1,629
Cost of services sold	2,595			—			—			—		—				2,595
General and administrative expenses	12,273			—			275			—		(35		)	(c), (f)	12,513
Leased real estate segment interest expense	3,143			—			—			—		—				3,143
Total operating expenses	22,147			—			275			—		136				22,558
Operating (loss) income	(1,938		)	—			(275		)	—		150				(2,063		)
Other revenues (expenses), net:
Net investment (loss) income	(1,163		)	785			890			—		1,520			(a)	2,032
Net realized losses	(1		)	—			—			—		—				(1		)
(Loss) gain on change in fair value of limited liability investments, at fair value	—			(960		)	821			—		(1,520		)	(a)	(1,659		)
Net change in unrealized loss on private company investments	—			—			(1,265		)	—		—				(1,265		)
Non-operating other loss	—			—			(35		)	—		—				(35		)
Interest expense not allocated to segments	(2,375		)	—			(673		)	—		—				(3,048		)
Amortization of intangible assets	(580		)	—			—			—		34			(e)	(546		)
Contingent consideration benefit	212			—			—			—		—				212
Loss on change in fair value of debt	(4,591		)	—			—			—		—				(4,591		)
Equity in net loss of investee	2,240			—			—			—		—				2,240
Total other revenues (expenses), net	(6,258		)	(175		)	(262		)	—		34				(6,661		)
(Loss) income from continuing operations before income tax expense	(8,196		)	(175		)	(537		)	—		184				(8,724		)
Income tax expense	1,516			—			—			—		8			(e)	1,524
(Loss) income from continuing operations	(9,712		)	(175		)	(537		)	—		176				(10,248		)
(Loss) income from discontinued operations, net of taxes	(431		)	175			156			—		19			(c)	(81		)
Gain on disposal of discontinued operations, net of taxes	1,017			—			—			—		—				1,017
Net (loss) income	(9,126		)	$	—		(381		)	—		195				(9,312		)
Less: net income (loss) attributable to noncontrolling interests in consolidated subsidiaries	205			—			(361		)	—		17			(h)	(139		)
Less: dividends on preferred stock, net of tax	328			—			—			—		260			(f)	588
Net loss attributable to common shareholders	$	(9,659	)	$	—		$	(20	)	$	—	$	(82	)		$	(9,761	)
Loss per share - continuing operations:
Basic:	$	(0.48	)	$	(0.01	)	$	(0.01	)	$	—	$	—			$	(0.50	)
Diluted:	$	(0.48	)	$	(0.01	)	$	(0.01	)	$	—	$	—			$	(0.50	)



Earnings per share - discontinued operations:
Basic:	$	0.03		$	0.01	$	—	$	—	$	—	0.04
Diluted:	$	0.03		$	0.01	$	—	$	—	$	—	0.04
Loss per share – net loss attributable to common shareholders:
Basic:	$	(0.45	)	$	—	$	—	$	—	$	—	$	(0.45	)
Diluted:	$	(0.45	)	$	—	$	—	$	—	$	—	$	(0.45	)
Weighted-average shares outstanding (in ‘000s):
Basic:	21,458			—		—		—		—		21,458
Diluted:	21,458			—		—		—		—		21,458

The following table presents the effects of the error corrections, immaterial accounting adjustments and reclassifications on the Company’s consolidated statement of cash flows for the six months ended June 30, 2018:



(in thousands)	Six months ended June 30, 2018
	As Previously Reported on Form 10-Q filed August 8, 2018			Correction of Error 1			Correction of Error 2			Correction of Error 3		Immaterial Accounting Adjustments and Reclassifications				As Restated
Cash provided by (used in):
Operating activities:
Net (loss) income	$	(10,434	)	$	—		$	110		$	—	$	(2,190	)	(b), (d), (e), (f), (g), (h)	$	(12,514	)
Adjustments to reconcile net (loss) income to net cash used in operating activities:							—			—
(Income) loss from discontinued operations, net of taxes	(1,318		)	(346		)	696			—		(12		)	(c)	(980		)
Loss on disposal of discontinued operations, net of taxes	6,611			—			—			—		17			(c)	6,628
Equity in net loss of investee	284			—			—			—		—				284
Equity in net (loss) income of limited liability investments	(164		)	(51		)	25			—		9			(b)	(181		)
Loss on change in fair value of limited liability investment	1,152			664			—			—		(1,816		)	(a)	—
Depreciation and amortization expense	2,704			—			—			—		(26		)	(e)	2,678
Stock-based compensation expense, net of forfeitures	588			—			—			—		—				588
Net realized gains	(9		)	(137		)	(251		)	—		—				(397		)
Gain on change in fair value of equity investments	(614		)	(130		)	—			—		—				(744		)
Loss (gain) on change in fair value of limited liability investments, at fair value	—			—			(355		)	—		1,816			(a)	1,461
Net change in unrealized loss on private company investments	—			—			155			—		—				155
Loss on change in fair value of debt	1,061			—			—			—		—				1,061
Deferred income taxes	51			—			—			—		5			(e)	56
Amortization of fixed maturities premiums and discounts	32			—			—			—		—				32
Amortization of note payable premium	(473		)	—			—			—		—				(473		)
Gain on disposal of subsidiary	—			—			—			—		(17		)	(c)	(17		)
Changes in operating assets and liabilities:
Service fee receivable, net	(887		)	—			—			—		100			(d)	(787		)
Other receivables, net	(1,371		)	—			5			—		(251		)	(c)	(1,617		)
Deferred acquisition costs, net	(337		)	—			—			—		—				(337		)
Unpaid loss and loss adjustment expenses	1,101			—			—			—		164			(a)	1,265
Deferred service fees	1,480			—			—			—		1,775			(a), (c), (d), (h)	3,255
Other, net	(1,193		)	—			(2,115		)	—		(258		)	(a),(c), (d), (f) (g)	(3,566		)
Cash used in operating activities - continuing operations	(1,736		)	—			(1,730		)	—		(684		)		(4,150		)
Cash (used in) provided by operating activities - discontinued operations	(4,651		)	2,742			—			—		—				(1,909		)
Net cash (used in) provided by operating activities	(6,387		)	2,742			(1,730		)	—		(684		)		(6,059		)
Investing activities:
Proceeds from sales and maturities of fixed maturities	4,965			—			—			—		—				4,965
Proceeds from sales of equity investments	3,704			—			—			—		—				3,704
Purchases of fixed maturities	(1,885		)	—			—			—		—				(1,885		)
Purchases of equity investments	(806		)	—			—			—		—				(806		)
Net (acquisitions of) proceeds from limited liability investments	(606		)	—			2,805			—		—				2,199
Net purchases of limited liability investments, at fair value	—			—			(666		)	—		—				(666		)



Net proceeds from investments in private companies	—			—			95			—		—				95
Net proceeds from other investments	405			—			—			—		—				405
Proceeds from disposal of subsidiary	—			—			—			—		565			(c)	565
Net proceeds from sale of discontinued operations	1,900			—			—			—		(771		)	(c)	1,129
Net disposals of property and equipment and intangible assets	(80		)	—			—			—		673			(c)	593
Cash provided by investing activities - continuing operations	7,597			—			2,234			—		467				10,298
Cash used in investing activities - discontinued operations	(337		)	(2,749		)	—			—		—				(3,086		)
Net cash provided by (used in) investing activities	7,260			(2,749		)	2,234			—		467				7,212
Financing activities:
Principal payments on bank loan	(500		)	—			—			—		—				(500		)
Principal payments on notes payable	(1,429		)	—			(203		)	—		—				(1,632		)
Cash provided by financing activities - continuing operations	(1,929		)	—			(203		)	—		—				(2,132		)
Cash provided by financing activities - discontinued operations	—			—			—			—		—				—
Net cash provided by financing activities	(1,929		)	—			(203		)	—		—				(2,132		)
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations	3,932			—			301			—		(217		)		4,016
Cash and cash equivalents and restricted cash at beginning of period	44,286			—			311			—		(723		)	(c)	43,874
Less: cash and cash equivalents and restricted cash of discontinued operations at beginning of period	23,505			—			—			—		7			(c)	23,512
Cash and cash equivalents and restricted cash of continuing operations at beginning of period	20,781			—			311			—		(730		)		20,362
Cash and cash equivalents and restricted cash of continuing operations at end of period	$	24,713		$	—		$	612		$	—	$	(947	)		$	24,378



(in thousands)							Six months ended June 30, 2017
	As Previously Reported on Form 10-Q filed August 8, 2018			Correction of Error 1			Correction of Error 2			Correction of Error 3		Immaterial Accounting Adjustments and Reclassifications				As Restated
Cash provided by (used in):
Operating activities:
Net (loss) income	$	(9,126	)	$	—		$	(381	)	$	—	$	195		(e), (f), (h)	$	(9,312	)
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Loss (income) from discontinued operations, net of taxes	431			(175		)	(156		)	—		(19		)	(c)	81
Gain on disposal of discontinued operations, net of taxes	(1,017		)	—			—			—		—				(1,017		)
Equity in net income of investee	(2,240		)	—			—			—		—				(2,240		)
Equity in net loss (income) of limited liability investments	166			(785		)	19			—		—				(600		)
Loss on change in fair value of limited liability investment	1,473			—			—			—		(1,473		)	(a)	—
Depreciation and amortization expense	3,187			—			—			—		(34		)	(e)	3,153
Contingent consideration benefit	(212		)	—			—			—		—				(212		)
Stock-based compensation expense, net of forfeitures	588			—			—			—		—				588
Net realized losses	1			—			—			—		—				1
Loss (gain) on change in fair value of limited liability investments, at fair value	—			960			(821		)	—		1,520			(a)	1,659
Net change in unrealized loss on private company investments	—			—			1,265			—		—				1,265
Loss on change in fair value of debt	4,591			—			—			—		—				4,591
Deferred income taxes	1,090			—			—			—		8			(e)	1,098
Amortization of fixed maturities premiums and discounts	47			—			—			—		—				47
Amortization of note payable premium	(483		)	—			—			—		—				(483		)
Changes in operating assets and liabilities:
Service fee receivable, net	(88		)	—			—			—		—				(88		)
Other receivables, net	(1,647		)	—			9			—		(95		)	(c)	(1,733		)
Deferred acquisition costs, net	(227		)	—			—			—		—				(227		)
Unpaid loss and loss adjustment expenses	(523		)	—			—			—		121			(a)	(402		)
Deferred service fees	2,061			—			—			—		39			(a), (c), (h)	2,100
Other, net	(817		)	—			2,754			—		(359		)	(a),(c), (d), (f), (g)	1,578
Cash (used in) provided by operating activities - continuing operations	(2,745		)	—			2,689			—		(97		)		(153		)
Cash used in operating activities - discontinued operations	(5,118		)	(1,848		)	—			—		—				(6,966		)
Net cash (used in) provided by operating activities	(7,863		)	(1,848		)	2,689			—		(97		)		(7,119		)
Investing activities:
Proceeds from sales and maturities of fixed maturities	145			—			—			—		—				145
Purchases of fixed maturities	(192		)	—			—			—		—				(192		)
Purchases of equity investments	(506		)	—			—			—		—				(506		)
Net acquisitions of limited liability investments	(1,000		)	—			(1,408		)	—		—				(2,408		)
Net purchases of limited liability investments, at fair value	—			—			(484		)	—		—				(484		)
Net purchases of investments in private companies	—			—			(171		)	—		—				(171		)
Net proceeds from other investments	373			—			—			—		—				373
Net proceeds from short-term investments	250			—			—			—		—				250
Net proceeds from sale of discontinued operations	1,017			—			—			—		—				1,017



Net purchases of property and equipment	(450		)	—		—			—		11			(c)	(439		)
Cash (used in) provided by investing activities - continuing operations	(363		)	—		(2,063		)	—		11				(2,415		)
Cash provided by investing activities - discontinued operations	6,772			1,840		—			—		—				8,612
Net cash provided by (used in) investing activities	6,409			1,840		(2,063		)	—		11				6,197
Financing activities:
Principal payments on note payable	(1,264		)	—		(193		)	—		—				(1,457		)
Cash used in financing activities - continuing operations	(1,264		)	—		(193		)	—		—				(1,457		)
Cash used in financing activities - discontinued operations	—			—		—			—		—				—
Net cash used in financing activities	(1,264		)	—		(193		)	—		—				(1,457		)
Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations	(4,372		)	—		433			—		(86		)		(4,025		)
Cash and cash equivalents and restricted cash at beginning of period	36,475			—		325			—		(795		)	(c)	36,005
Less: cash and cash equivalents and restricted cash of discontinued operations at beginning of period	4,513			—		—			—		11			(c)	4,524
Cash and cash equivalents and restricted cash of continuing operations at beginning of period	31,962			—		325			—		(806		)		31,481
Cash and cash equivalents and restricted cash of continuing operations at end of period	$	27,590		$	—	$	758		$	—	$	(892	)		$	27,456


(a)	Reclassifications to conform to current presentation. Such reclassifications have no impact on previously reported net loss or total shareholders' equity.


(b)	Adjustment to record equity-pick up loss related to a limited liability investment, with a corresponding decrease to net investment income and an increase to accumulated deficit.


(c)	Reclassifications as a result of misclassifications of amounts in a previous filing. Such reclassifications have no impact on previously reported net loss or total shareholders' equity.


(d)	Adjustments to Extended Warranty segment service fee receivable, accrued expenses and other liabilities and deferred service fees, with offsetting adjustments to accrued expenses and other liabilities, general and administrative expenses and accumulated deficit.

(e)

Adjustment to increase goodwill, with offsetting decreases to intangible assets, amortization of intangible assets and accumulated deficit, related to the Company's acquisition of Argo Management in 2016. Also includes the related tax impact of these adjustments, resulting in an increase to net deferred income tax liabilities, with offsetting decreases to income tax benefit and accumulated deficit.

(f)

Adjustment to decrease redeemable Class A preferred stock, with an offsetting increase to additional paid-in capital and an offsetting decrease to general and administrative expenses related to the Company’s issuance of Class A preferred stock and Class C Warrants on February 3, 2014. Also includes the related reclassifications of accrued dividends on equity-classified warrants from accrued expenses and other liabilities to redeemable Class A preferred stock and dividend expense from accumulated deficit to additional paid-in-capital.


(g)	Adjustment to decrease accrued expenses and other liabilities with an offsetting decrease to accumulated deficit and an offsetting decrease to non-operating other income, related to escheat liability.


(h)	Adjustment to Extended Warranty deferred service fees, with an offsetting adjustment to service fee and commission income and accumulated deficit, related to revenue recognition.