Schedule 1-Parent Only Disclosures [Schedule] (Notes)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule 1 - Condensed Financial Information of Registrant

Trupanion, Inc. Condensed Statements of Operations and Comprehensive Loss (Parent Company Only, in thousands)
	Year Ended December 31,
	2022		2021		2020
Expenses:
Veterinary invoice expense	$	4,144	$	4,538	$	1,118
Other cost of revenue	2,340		2,610		468
Technology and development	4,930		3,130		1,087
General and administrative	16,346		11,714		7,055
New pet acquisition expense	9,351		9,177		2,799
Depreciation and amortization	289		473		328
Total expenses	37,400		31,642		12,855
Loss from investment in joint venture	(192)		(33)		(108)
Operating loss	(37,592)		(31,675)		(12,963)
Interest expense	4,255		(2)		1,361
Other income, net	(8,047)		(5,755)		(4,845)
Loss before equity in undistributed earnings of subsidiaries	(33,800)		(25,918)		(9,479)
Income tax benefit	14,544		12,272		8,460
Equity (loss) in undistributed earnings of subsidiaries	(25,416)		(21,884)		(4,821)
Net loss	$	(44,672)	$	(35,530)	$	(5,840)
Other comprehensive income (loss), net of taxes:
Other comprehensive income (loss) of subsidiaries	(9,378)		6		2,821
Other comprehensive income (loss)	(9,378)		6		2,821
Comprehensive loss	$	(54,050)	$	(35,524)	$	(3,019)

Trupanion, Inc. Condensed Balance Sheets (Parent Company Only) (In thousands, except share data)
	December 31,
	2022		2021
Assets
Current assets:
Cash and cash equivalents	$	16,052	$	33,957
Accounts and other receivables	5,739		5,452
Prepaid expenses and other assets	697		591
Total current assets	22,488		40,000
Restricted cash	19,032		13,469
Property and equipment, net	2,398		904
Intangible assets, net	5,710		5,620
Other long-term assets	13,960		16,519
Advances to and investments in subsidiaries	312,559		257,198
Total assets	$	376,147	$	333,710
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable, accrued liabilities, and other current liabilities	$	484	$	254
Long-term debt - current portion	750		—
Total current liabilities	1,234		254
Long-term debt	68,354		—
Deferred tax liabilities	1,100		1,094
Other liabilities	162		162
Total liabilities	70,850		1,510
Stockholders’ equity:
Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 42,041,344 and 41,013,158 shares issued and outstanding at December 31, 2022; 41,408,350 and 40,475,185 shares issued and outstanding at December 31, 2021	—		—
Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding	—		—
Additional paid-in capital	499,694		466,792
Accumulated other comprehensive income (loss)	(6,301)		3,077
Accumulated deficit	(171,562)		(126,890)
Treasury stock, at cost: 1,028,186 and 933,165 shares at December 31, 2022 and 2021	(16,534)		(10,779)
Total stockholders’ equity	305,297		332,200
Total liabilities and stockholders’ equity	$	376,147	$	333,710

Trupanion, Inc. Condensed Statements of Cash Flows (Parent Company Only, in thousands)
	Year Ended December 31,
	2022		2021		2020
Operating activities
Net loss	$	(44,672)	$	(35,530)	$	(5,840)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
(Income) loss attributable to investments in subsidiaries	19,331		17,501		170
Depreciation and amortization	289		473		328
Stock-based compensation expense	33,393		28,226		8,912
Other, net	533		(161)		240
Changes in operating assets and liabilities	(166)		(1,219)		(1,142)
Net cash provided by operating activities	8,708		9,290		2,668
Investing activities
Cash paid in business acquisition, net of cash acquired	(15,034)		—		(48,133)
Purchases of property and equipment	(516)		(280)		(341)
Advances to and investments in subsidiaries	(71,671)		(71,721)		(24,885)
Dividends from subsidiaries	6,942		5,567		4,651
Other investments	(1,598)		(1,755)		—
Net cash used in investing activities	(81,877)		(68,189)		(68,708)
Financing activities
Issuance of common stock, net of offering costs	—		—		192,265
Repurchase of common stock	(5,755)		—		—
Proceeds from exercise of stock options	2,290		3,607		6,013
Taxes paid related to net share settlement of equity awards	(4,359)		(4,732)		(1,115)
Proceeds from debt financing, net of financing fees	69,138		—		6,213
Repayments of debt financing	(487)		—		(32,450)
Other financing	—		—		(78)
Net cash (used in) provided by financing activities	60,827		(1,125)		170,848
Net change in cash, cash equivalents, and restricted cash	(12,342)		(60,024)		104,808
Cash, cash equivalents, and restricted cash at beginning of period	47,426		107,450		2,642
Cash, cash equivalents, and restricted cash at end of period	$	35,084	$	47,426	$	107,450

1. Organization and Presentation

The accompanying condensed financial statements present the financial position, results of operations and cash flows for Trupanion, Inc. These condensed unconsolidated financial statements should be read in conjunction with the consolidated financial statements of Trupanion, Inc. and its subsidiaries and the notes thereto (the Consolidated Financial Statements). Investments in subsidiaries are accounted for using the equity method of accounting. Trupanion, Inc. received cash dividends from a subsidiary of $6.9 million, $5.6 million and $4.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. These cash dividends were recorded within Trupanion, Inc.'s other income and were eliminated within the consolidated financial statements of Trupanion, Inc.

Additional information about Trupanion, Inc.’s accounting policies pertaining to intangible assets, commitments and contingencies, stock-based compensation, stockholders’ equity, and income taxes are set forth in Notes 5, 9, 12, 13, and 17, respectively, to the Consolidated Financial Statements.