RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company has restated its previously reported unaudited consolidated financial statements for the three and nine months ended September 30, 2018 and September 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 losses and gain on change in fair value of equity investments in the consolidated statement of operations 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"). Correcting these errors increased the Company’s net loss by $0.1 million for the three months ended September 30, 2018 (a decrease to net loss of $0.0 million for the nine months ended September 30, 2018) and decreased the Company’s net loss by $0.2 million for the three months ended September 30, 2017 (an increase to net loss of $0.2 million for the nine months ended September 30, 2017).

Along with restating our financial statements for the three and nine months ended September 30, 2018 and September 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. Recording these certain immaterial accounting adjustments decreased the Company’s net loss by $0.8 million for the three months ended September 30, 2018 (an increase to net loss of $1.4 million for the nine months ended September 30, 2018). For the three and nine months ended September 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 September 30, 2018:



(in thousands)				September 30, 2018
	As Previously Reported			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	$	11,076		$	—		$	—		$	—		$	—			$	11,076
Equity investments, at fair value	1,334			243			—			—			—				1,577
Limited liability investments	6,230			3,536			(3,710		)	—			(740		)	(a), (b)	5,316
Limited liability investments, at fair value	4,529			3,455			23,580			—			—				31,564
Investments in private companies, at adjusted cost	—			—			3,884			—			731			(a)	4,615
Real estate investments, at fair value	—			—			10,662			—			—				10,662
Other investments, at cost which approximates fair value	1,917			1,399			—			—			—				3,316
Short-term investments, at cost which approximates fair value	151			—			—			—			—				151
Total investments	25,237			8,633			34,416			—			(9		)		68,277
Cash and cash equivalents	23,591			—			456			(14,167		)	(835		)	(c)	9,045
Restricted cash	—			—			—			14,167			—				14,167
Investment in investee	2,827			—			—			—			—				2,827
Accrued investment income	194			—			165			—			—				359
Service fee receivable	6,747			—			—			—			40			(d)	6,787
Other receivables	7,877			—			53			—			1,056			(c)	8,986
Deferred acquisition costs, net	6,899			—			—			—			—				6,899
Property and equipment	104,196			—			—			—			—				104,196
Goodwill	73,928			—			—			—			731			(e)	74,659
Intangible assets	84,359			—			—			—			(569		)	(e)	83,790
Other assets	2,560			—			—			—			—				2,560
Assets held for sale	133,365			(8,633		)	(12,698		)	—			—				112,034
Total Assets	$	471,780		$	—		$	22,392		$	—		$	414			$	494,586
Liabilities and Shareholders' Equity

Liabilities:
Accrued expenses and other liabilities	$	11,492		$	—		$	425		$	—		$	(590	)	(c), (d), (e), (f), (g)	$	11,327
Income taxes payable	2,501			—			—			—			—				2,501
Deferred service fees	46,275			—			—			—			(290		)	(c), (d),(h)	45,985
Unpaid loss and loss adjustment expenses	2,292			—			—			—			—				2,292
Bank loan	4,167			—			—			—			—				4,167
Notes payable	183,561			—			16,873			—			—				200,434
Subordinated debt, at fair value	53,614			—			—			—			—				53,614
Net deferred income tax liabilities	28,472			—			—			—			26			(e)	28,498
Liabilities held for sale	107,076			—			—			—			—				107,076
Total Liabilities	439,450			—			17,298			—			(854		)		455,894

Redeemable Class A preferred stock	5,486			—			—			—			471			(f)	5,957

Shareholders' Equity:
Common stock	—			—			—			—			—				—
Additional paid-in capital	354,141			—			—			—			(627		)	(f)	353,514
Accumulated deficit	(369,771		)	—			(399		)	—			1,481			(b), (d),(e), (f), (g), (h)	(368,689		)
Accumulated other comprehensive income	36,961			—			205			—			—				37,166



Shareholders' equity attributable to common shareholders	21,331		—		(194		)	—		854				21,991
Noncontrolling interests in consolidated subsidiaries	5,513		—		5,288			—		(57		)	(c), (d)	10,744
Total Shareholders' Equity	26,844		—		5,094			—		797				32,735
Total Liabilities and Shareholders' Equity	$	471,780	$	—	$	22,392		$	—	$	414			$	494,586

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			(d)	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	)	(c), (d),(f), (g)	$	10,359
Income taxes payable	2,644			—			—			—			—				2,644
Deferred service fees	42,257			—			—			—			(1,144		)	(c), (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 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 September 30, 2018:



(in thousands)	Three months ended September 30, 2018
	As Previously Reported			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	$	9,104		$	—		$	—		$	—	$	767		(h)	$	9,871
Rental income	3,341			—			—			—		—				3,341
Other income	(17		)	—			—			—		—				(17		)
Total revenues	12,428			—			—			—		767				13,195
Operating expenses:
Claims authorized on vehicle service agreements	1,442			—			—			—		—				1,442
Loss and loss adjustment expenses	(19		)	—			—			—		—				(19		)
Commissions	971			—			—			—		—				971
Cost of services sold	2,033			—			—			—		—				2,033
General and administrative expenses	5,410			—			5			—		(11		)	(d), (f)	5,404
Leased real estate segment interest expense	1,540			—			—			—		—				1,540
Total operating expenses	11,377			—			5			—		(11		)		11,371
Operating income (loss)	1,051			—			(5		)	—		778				1,824
Other revenues (expenses), net:
Net investment (loss) income	(84		)	(155		)	352			—		516			(a)	629
Net realized losses	(414		)	—			—			—		—				(414		)
Gain on change in fair value of equity investments	337			—			—			—		—				337
Gain (loss) on change in fair value of limited liability investments, at fair value	—			—			385			—		(516		)	(a)	(131		)
Net change in unrealized gain on private company investments	—			—			19			—		—				19
Non-operating other income	32			—			(18		)	—		—				14
Interest expense not allocated to segments	(1,571		)	—			(329		)	—		—				(1,900		)
Amortization of intangible assets	(1,356		)	—			—			—		17			(e)	(1,339		)
Loss on change in fair value of debt	(1,450		)	—			—			—		—				(1,450		)
Equity in net loss of investee	(339		)	—			—			—		—				(339		)
Total other revenues (expenses), net	(4,845		)	(155		)	409			—		17				(4,574		)
(Loss) income from continuing operations before income tax benefit	(3,794		)	(155		)	404			—		795				(2,750		)
Income tax benefit	(147		)	—			—			—		3			(e)	(144		)
(Loss) income from continuing operations	(3,647		)	(155		)	404			—		792				(2,606		)
Income (loss) from discontinued operations, net of taxes	740			155			(478		)	—		—				417
Loss on disposal of discontinued operations, net of taxes	(1,172		)	—			—			—		—				(1,172		)
Net (loss) income	(4,079		)	—			(74		)	—		792				(3,361		)
Less: net income attributable to noncontrolling interests in consolidated subsidiaries	110			—			104			—		(14		)	(d), (h)	200
Less: dividends on preferred stock, net of tax	132			—			—			—		133			(f)	265
Net (loss) income attributable to common shareholders	$	(4,321	)	$	—		$	(178	)	$	—	$	673			$	(3,826	)
(Loss) earnings per share - continuing operations:
Basic:	$	(0.18	)	$	—		$	0.01		$	—	$	0.03			$	(0.14	)
Diluted:	$	(0.18	)	$	—		$	0.01		$	—	$	0.03			$	(0.14	)
Loss per share - discontinued operations:
Basic:	$	(0.02	)	$	0.01		$	(0.02	)	$	—	$	—			$	(0.03	)
Diluted:	$	(0.02	)	$	0.01		$	(0.02	)	$	—	$	—			$	(0.03	)
(Loss) income per share – net (loss) income attributable to common shareholders:
Basic:	$	(0.20	)	$	—		$	(0.01	)	$	—	$	0.03			$	(0.18	)
Diluted:	$	(0.20	)	$	—		$	(0.01	)	$	—	$	0.03			$	(0.18	)
Weighted average shares outstanding (in ‘000s):
Basic:	21,708			—			—			—		—				21,708
Diluted:	21,708			—			—			—		—				21,708



(in thousands)	Three months ended September 30, 2017
	As Previously Reported			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	$	7,670		$	—		$	—		$	—	$	17		(h)	$	7,687
Rental income	3,345			—			—			—		—				3,345
Other income	93			—			—			—		—				93
Total revenues	11,108			—			—			—		17				11,125
Operating expenses:
Claims authorized on vehicle service agreements	1,387			—			—			—		—				1,387
Loss and loss adjustment expenses	266			—			—			—		—				266
Commissions	525			—			—			—		—				525
Cost of services sold	1,951			—			—			—		—				1,951
General and administrative expenses	6,515			—			15			—		(8		)	(f)	6,522
Leased real estate segment interest expense	1,563			—			—			—		—				1,563
Total operating expenses	12,207			—			15			—		(8		)		12,214
Operating income (loss)	(1,099		)	—			(15		)	—		25				(1,089		)
Other revenues (expenses), net:
Net investment income (loss)	1,289			441			529			—		(1,126		)	(a)	1,133
Gain on change in fair value of limited liability investments, at fair value	—			913			409			—		1,126			(a)	2,448
Non-operating other income	599			—			(17		)	—		—				582
Interest expense not allocated to segments	(1,261		)	—			(341		)	—		—				(1,602		)
Amortization of intangible assets	(286		)	—			—			—		17			(e)	(269		)
Loss on change in fair value of debt	(1,178		)	—			—			—		—				(1,178		)
Equity in net loss of investee	(897		)	—			—			—		—				(897		)
Total other revenues (expenses), net	(1,734		)	1,354			580			—		17				217
(Loss) income from continuing operations before income tax expense	(2,833		)	1,354			565			—		42				(872		)
Income tax expense	120			—			—			—		4			(e)	124
(Loss) income from continuing operations	(2,953		)	1,354			565			—		38				(996		)
Income (loss) from discontinued operations, net of taxes	1,391			(1,354		)	(408		)	—		—				(371		)
Net (loss) income	(1,562		)	—			157			—		38				(1,367		)
Less: net income attributable to noncontrolling interests in consolidated subsidiaries	79			—			114			—		2			(h)	195
Less: dividends on preferred stock, net of tax	(115		)	—			—			—		518			(f)	403
Net (loss) income attributable to common shareholders	$	(1,526	)	$	—		$	43		$	—	$	(482	)		$	(1,965	)
(Loss) earnings per share - continuing operations:
Basic:	$	(0.14	)	$	0.06		$	0.03		$	—	$	(0.02	)		$	(0.07	)
Diluted:	$	(0.14	)	$	0.06		$	0.03		$	—	$	(0.02	)		$	(0.07	)
Earnings (loss) per share - discontinued operations:
Basic:	$	0.06		$	(0.06	)	$	(0.02	)	$	—	$	—			$	(0.02	)
Diluted:	$	0.06		$	(0.06	)	$	(0.02	)	$	—	$	—			$	(0.02	)
Loss per share – net loss attributable to common shareholders:
Basic:	$	(0.07	)	$	—		$	—		$	—	$	(0.02	)		$	(0.09	)
Diluted:	$	(0.07	)	$	—		$	—		$	—	$	(0.02	)		$	(0.09	)
Weighted-average shares outstanding (in ‘000s):
Basic:	21,559			—			—			—		—				21,559
Diluted:	21,559			—			—			—		—				21,559



(in thousands)	Nine months ended September 30, 2018
	As Previously Reported			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	$	28,938		$	—		$	—		$	—	(556		)	(c), (h)	$	28,382
Rental income	10,033			—			—			—		1				10,034
Other income	304			—			—			—		—				304
Total revenues	39,275			—			—			—		(555		)		38,720
Operating expenses:
Claims authorized on vehicle service agreements	4,206			—			—			—		—				4,206
Loss and loss adjustment expenses	1,628			—			—			—		—				1,628
Commissions	2,843			—			—			—		(125		)	(c)	2,718
Cost of services sold	5,749			—			—			—		—				5,749
General and administrative expenses	20,078			—			29			—		68			(d), (f)	20,175
Leased real estate segment interest expense	4,638			—			—			—		—				4,638
Total operating expenses	39,142			—			29			—		(57		)		39,114
Operating income (loss)	133			—			(29		)	—		(498		)		(394		)
Other revenues (expenses), net:
Net investment (loss) income	(697		)	(768		)	1,419			—		2,323			(a), (b)	2,277
Net realized (losses) gains	(405		)	137			251			—		—				(17		)
Gain on change in fair value of equity investments	951			130			—			—		—				1,081
Gain (loss) on change in fair value of limited liability investments, at fair value	—			—			740			—		(2,332		)	(a)	(1,592		)
Net change in unrealized loss on private company investments	—			—			(136		)	—		—				(136		)
Non-operating other income	1,019			—			(52		)	—		(932		)	(g)	35
Interest expense not allocated to segments	(4,476		)	—			(985		)	—		—				(5,461		)
Amortization of intangible assets	(1,899		)	—			—			—		51			(e)	(1,848		)
Loss on change in fair value of debt	(2,511		)	—			—			—		—				(2,511		)
Gain on disposal of subsidiary	17			—			—			—		—				17
Equity in net loss of investee	(623		)	—			—			—		—				(623		)
Total other revenues (expenses), net	(8,624		)	(501		)	1,237			—		(890		)		(8,778		)
(Loss) income from continuing operations before income tax expense	(8,491		)	(501		)	1,208			—		(1,388		)		(9,172		)
Income tax expense	291			—			—			—		9			(e)	300
(Loss) income from continuing operations	(8,782		)	(501		)	1,208			—		(1,397		)		(9,472		)
Income (loss) from discontinued operations, net of taxes	2,069			501			(1,173		)	—		—				1,397
Loss on disposal of discontinued operations, net of taxes	(7,800		)	—			—			—		—				(7,800		)
Net (loss) income	(14,513		)	—			35			—		(1,397		)		(15,875		)
Less: net income attributable to noncontrolling interests in consolidated subsidiaries	353			—			382			—		(18		)	(d), (h)	717
Less: dividends on preferred stock, net of tax	391			—			—			—		386			(f)	777
Net loss attributable to common shareholders	$	(15,257	)	$	—		$	(347	)	$	—	$	(1,765	)		$	(17,369	)
(Loss) earnings per share - continuing operations:
Basic:	$	(0.44	)	$	(0.02	)	$	0.03		$	—	$	(0.08	)		$	(0.51	)
Diluted:	$	(0.44	)	$	(0.02	)	$	0.03		$	—	$	(0.08	)		$	(0.51	)
(Loss) earnings per share - discontinued operations:
Basic:	$	(0.26	)	$	0.02		$	(0.05	)	$	—	$	—			$	(0.29	)
Diluted:	$	(0.26	)	$	0.02		$	(0.05	)	$	—	$	—			$	(0.29	)
Loss per share – net loss attributable to common shareholders:
Basic:	$	(0.70	)	$	—		$	(0.02	)	$	—	$	(0.08	)		$	(0.80	)
Diluted:	$	(0.70	)	$	—		$	(0.02	)	$	—	$	(0.08	)		$	(0.80	)
Weighted average shares outstanding (in ‘000s):
Basic:	21,708			—			—			—		—				21,708
Diluted:	21,708			—			—			—		—				21,708



(in thousands)	Nine months ended September 30, 2017
	As Previously Reported			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	$	20,738		$	—		$	—		$	—	$	168		(h)	$	20,906
Rental income	10,041			—			—			—		(1		)		10,040
Other income	601			—			—			—		—				601
Total revenues	31,380			—			—			—		167				31,547
Operating expenses:
Claims authorized on vehicle service agreements	4,066			—			—			—		—				4,066
Loss and loss adjustment expenses	266			—			—			—		(1		)		265
Commissions	2,154			—			—			—		—				2,154
Cost of services sold	4,546			—			—			—		—				4,546
General and administrative expenses	18,740			—			291			—		(24		)	(f)	19,007
Leased real estate segment interest expense	4,706			—			—			—		—				4,706
Total operating expenses	34,478			—			291			—		(25		)		34,744
Operating income (loss)	(3,098		)	—			(291		)	—		192				(3,197		)
Other revenues (expenses), net:
Net investment income	126			1,225			1,420			—		394			(a)	3,165
Net realized losses	(1		)	—			—			—		—				(1		)
(Loss) gain on change in fair value of limited liability investments, at fair value	—			(47		)	1,230			—		(394		)	(a)	789
Net change in unrealized loss on private company investments	—			—			(1,265		)	—		—				(1,265		)
Non-operating other income	660			—			(52		)	—		—				608
Interest expense not allocated to segments	(3,636		)	—			(1,014		)	—		—				(4,650		)
Amortization of intangible assets	(866		)	—			—			—		51			(e)	(815		)
Contingent consideration benefit	212			—			—			—		—				212
Loss on change in fair value of debt	(5,769		)	—			—			—		—				(5,769		)
Equity in net income of investee	1,343			—			—			—		—				1,343
Total other revenues (expenses), net	(7,931		)	1,178			319			—		51				(6,383		)
(Loss) income from continuing operations before income tax expense	(11,029		)	1,178			28			—		243				(9,580		)
Income tax expense	1,636			—			—			—		12			(e)	1,648
(Loss) income from continuing operations	(12,665		)	1,178			28			—		231				(11,228		)
Income (loss) from discontinued operations, net of taxes	960			(1,178		)	(250		)	—		—				(468		)
Gain on disposal of discontinued operations, net of taxes	1,017			—			—			—		—				1,017
Net (loss) income	(10,688		)	—			(222		)	—		231				(10,679		)
Less: net income (loss) attributable to noncontrolling interests in consolidated subsidiaries	284			—			(247		)	—		19			(h)	56
Less: dividends on preferred stock, net of tax	213			—			—			—		778			(f)	991
Net (loss) income attributable to common shareholders	$	(11,185	)	$	—		$	25		$	—	$	(566	)		$	(11,726	)
(Loss) earnings per share - continuing operations:
Basic:	$	(0.61	)	$	0.06		$	0.01		$	—	$	(0.03	)		$	(0.57	)
Diluted:	$	(0.61	)	$	0.06		$	0.01		$	—	$	(0.03	)		$	(0.57	)
Earnings (loss) per share - discontinued operations:
Basic:	$	0.09		$	(0.05	)	$	(0.01	)	$	—	$	—			$	0.03
Diluted:	$	0.09		$	(0.05	)	$	(0.01	)	$	—	$	—			$	0.03
Loss per share – net loss attributable to common shareholders:
Basic:	$	(0.52	)	$	—		$	—		$	—	$	(0.03	)		$	(0.55	)
Diluted:	$	(0.52	)	$	—		$	—		$	—	$	(0.03	)		$	(0.55	)
Weighted-average shares outstanding (in ‘000s):
Basic:	21,492			—			—			—		—				21,492
Diluted:	21,492			—			—			—		—				21,492

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 nine months ended September 30, 2018:



(in thousands)	Nine months ended September 30, 2018
	As Previously Reported			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	$	(14,513	)	$	—		$	35		$	—	$	(1,397	)	(b), (d), (e), (f), (g), (h)	$	(15,875	)
Adjustments to reconcile net (loss) income income to net cash used in operating activities:
(Income) loss from discontinued operations, net of taxes	(2,069		)	(501		)	1,173			—		—				(1,397		)
Loss on disposal of discontinued operations, net of taxes	7,800			—			—			—		—				7,800
Equity in net loss of investee	623			—			—			—		—				623
Dividend received from investee	780			—			—			—		—				780
Equity in net income of limited liability investments	(275		)	(72		)	135			—		9			(b)	(203		)
Loss on change in fair value of limited liability investment	1,492			840			—			—		(2,332		)	(a)	—
Depreciation and amortization expense	5,149			—			—			—		(50		)	(e)	5,099
Stock-based compensation benefit, net of forfeitures	(1,881		)	—			—			—		—				(1,881		)
Net realized losses (gains)	405			(137		)	(251		)	—		—				17
Gain on change in fair value of equity investments	(951		)	(130		)	—			—		—				(1,081		)
Loss on change in fair value of limited liability investments, at fair value	—			—			(740		)	—		2,332			(a)	1,592
Net change in unrealized loss on private company investments	—			—			136			—		—				136
Loss on change in fair value of debt	2,511			—			—			—		—				2,511
Deferred income taxes	(273		)	—			—			—		8			(e)	(265		)
Amortization of fixed maturities premiums and discounts	47			—			—			—		—				47
Amortization of note payable premium	(707		)	—			—			—		—				(707		)
Gain on disposal of subsidiary	17			—			—			—		(34		)	(c)	(17		)
Changes in operating assets and liabilities:
Service fee receivable, net	(2,461		)	—			—			—		105			(d)	(2,356		)
Other receivables, net	(1,341		)	—			(101		)	—		(297		)	(c)	(1,739		)
Deferred acquisition costs, net	(574		)	—			—			—		—				(574		)
Unpaid loss and loss adjustment expenses	963			—			—			—		—				963
Deferred service fees	4,018			—			—			—		854			(c), (d), (h)	4,872
Other, net	(2,617		)	—			(4,712		)	—		690			(c), (d), (f), (g)	(6,639		)
Cash (used in) provided by operating activities - continuing operations	(3,857		)	—			(4,325		)	—		(112		)		(8,294		)
Cash (used in) provided by operating activities - discontinued operations	(12,670		)	5,292			—			—		—				(7,378		)
Net cash (used in) provided by operating activities	(16,527		)	5,292			(4,325		)	—		(112		)		(15,672		)
Investing activities:
Proceeds from sales and maturities of fixed maturities	5,241			—			—			—		—				5,241
Proceeds from sales of equity investments	4,966			—			—			—		—				4,966
Purchases of fixed maturities	(1,885		)	—			—			—		—				(1,885		)
Purchases of equity investments	(857		)	—			—			—		—				(857		)
Net acquisitions of limited liability investments	(1,489		)	—			5,602			—		—				4,113
Net purchases of limited liability investments, at fair value	—			—			(945		)	—		—				(945		)
Purchases of investments in private companies	—			—			119			—		—				119
Net proceeds from other investments	404			—			—			—		—				404
Proceeds from sale of investee	1,001			—			—			—		—				1,001
Proceeds from disposal of subsidiary	565			—			—			—		—				565
Net proceeds from sale of discontinued operations	1,129			—			—			—		—				1,129
Net disposals of property and equipment	550			—			—			—		—				550
Cash provided by (used in) investing activities - continuing operations	9,625			—			4,776			—		—				14,401
Cash provided by (used in) investing activities - discontinued operations	7,270			(5,293		)	—			—		—				1,977
Net cash provided by (used in) investing activities	16,895			(5,293		)	4,776			—		—				16,378



Financing activities:
Principal payments on bank loan	(750		)	—		—			—		—				(750		)
Principal payments on notes payable	(2,201		)	—		(306		)	—		—				(2,507		)
Cash provided by financing activities - continuing operations	(2,951		)	—		(306		)	—		—				(3,257		)
Cash provided by financing activities - discontinued operations	—			—		—			—		—				—
Net cash provided by financing activities	(2,951		)	—		(306		)	—		—				(3,257		)
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations	2,817			—		145			—		(112		)		2,850
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	23,512			—		—			—		—				23,512
Cash and cash equivalents and restricted cash of continuing operations at beginning of period	20,774			—		311			—		(723		)	(c)	20,362
Cash and cash equivalents and restricted cash of continuing operations at end of period	$	23,591		$	—	$	456		$	—	$	(835	)		$	23,212



(in thousands)										Nine months ended September 30, 2017
	As Previously Reported			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	$	(10,688	)	$	—		$	(222	)	$	—	$	231		(e), (f), (h)	$	(10,679	)
Adjustments to reconcile net (loss) income to net cash used in operating activities:							—			—		—				—
(Income) loss from discontinued operations, net of taxes	(960		)	1,178			250			—		—				468
Gain on disposal of discontinued operations, net of taxes	(1,017		)	—			—			—		—				(1,017		)
Equity in net income of investee	(1,343		)	—			—			—		—				(1,343		)
Equity in net loss (income) loss of limited liability investments	258			(1,225		)	26			—		—				(941		)
Loss on change in fair value of limited liability investment	372			—			—			—		(372		)	(a)	—
Depreciation and amortization expense	4,089			—			—			—		(50		)	(e)	4,039
Contingent consideration benefit	(212		)	—			—			—		—				(212		)
Stock-based compensation expense, net of forfeitures	887			—			—			—		—				887
Net realized losses	1			—			—			—		—				1
Loss (gain) on change in fair value of limited liability investments, at fair value	—			47			(1,230		)	—		394			(a)	(789		)
Net change in unrealized loss on private company investments	—			—			1,265			—		—				1,265
Loss on change in fair value of debt	5,769			—			—			—		—				5,769
Deferred income taxes	1,123			—			—			—		12			(e)	1,135
Amortization of fixed maturities premiums and discounts	72			—			—			—		—				72
Amortization of note payable premium	(722		)	—			—			—		—				(722		)
Changes in operating assets and liabilities:
Service fee receivable, net	(1,311		)	—			—			—		—				(1,311		)
Other receivables, net	(2,663		)	—			18			—		(134		)	(c)	(2,779		)
Deferred acquisition costs, net	(414		)	—			—			—		—				(414		)
Unpaid loss and loss adjustment expenses	(708		)	—			—			—		—				(708		)
Deferred service fees	1,603			—			—			—		(170		)	(c), (h)	1,433
Other, net	3,623			—			3,516			—		26			(a), (c), (d), (f), (g)	7,165
Cash (used in) provided by operating activities - continuing operations	(2,241		)	—			3,623			—		(63		)		1,319
Cash used in operating activities - discontinued operations	(11,283		)	(1,914		)	—			—		—				(13,197		)
Net cash (used in) provided by operating activities	(13,524		)	(1,914		)	3,623			—		(63		)		(11,878		)
Investing activities:
Proceeds from sales and maturities of fixed maturities	982			—			—			—		—				982
Purchases of fixed maturities	(192		)	—			—			—		—				(192		)
Purchases of equity investments	(4,654		)	—			—			—		—				(4,654		)
Net acquisitions of limited liability investments	(1,650		)	—			(1,483		)	—		—				(3,133		)



Net purchases of limited liability investments, at fair value	—			—		(1,314		)	—		—				(1,314		)
Purchases of investments in private companies	—			—		(521		)	—		—				(521		)
Net proceeds from other investments	3			—		—			—		—				3
Net proceeds from short-term investments	250			—		—			—		—				250
Net proceeds from sale of discontinued operations	860			—		—			—		—				860
Net disposals of property and equipment	34			—		—			—		—				34
Cash used in investing activities - continuing operations	(4,367		)	—		(3,318		)	—		—				(7,685		)
Cash provided by investing activities - discontinued operations	13,981			1,913		—			—		—				15,894
Net cash provided by (used in) investing activities	9,614			1,913		(3,318		)	—		—				8,209
Financing activities:
Principal payments on note payable	(1,951		)	—		(292		)	—		—				(2,243		)
Cash used in financing activities - continuing operations	(1,951		)	—		(292		)	—		—				(2,243		)
Cash used in financing activities - discontinued operations	—			—		—			—		—				—
Net cash used in financing activities	(1,951		)	—		(292		)	—		—				(2,243		)
Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations	(8,559		)	—		13			—		(63		)		(8,609		)
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	4,524			—		—			—		—				4,524
Cash and cash equivalents and restricted cash of continuing operations at beginning of period	31,951			—		325			—		(795		)	(c)	31,481
Cash and cash equivalents and restricted cash of continuing operations at end of period	$	23,392		$	—	$	338		$	—	$	(858	)		$	22,872


(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.