Related Parties	12 Months Ended
Dec. 31, 2021
Related Parties
Related Parties	18. Related Parties In July 2020, the CEO and founder, entered into an agreement with another significant shareholder, that provides, upon consummation of the PTAC Merger Agreement, for a payment of $3.2 million in cash and 950,000 of Porch Group, Inc. stock from the CEO to the other significant shareholder in connection with the Merger Agreement including the conversion of preferred stock to common stock. This transfer of $17.3 million in consideration was accounted for as a deemed capital contribution from the CEO and founder to the Company and induced conversion of preferred stock into common stock immediately prior to the close of the PTAC Merger Agreement. The total consideration transferred increase total net loss in determining net loss available to common shareholders by $17.3 million. In 2019, the CEO and founder of the Company purchased convertible promissory notes with an aggregate original principal balance of $1.0 million. In 2019, the Company sold a direct-to-customer security services business to a related party as one of its divestitures as it focused the business operations on its core vertical software strategy. See Note 12. In 2019, the Company entered into an acquisition deferral agreement with the former owner of a business previously acquired by the Company on March 14, 2017. The existing agreement provided for payments of $0.9 million on December 31, 2018, and $0.2 million quarterly from June 14, 2019 through March 14, 2020. The amended payment schedule provides for monthly installments of at least $0.1 million, as determined by the agreement, beginning in June 2019. The balance was paid in full in December 2021. In 2019, convertible promissory notes having an aggregate original principal balance of $16.6 million and accrued interest of $641 converted into 1,173,473 shares of Series B redeemable convertible preferred stock and warrants to purchase 70,408 shares of Series B redeemable convertible preferred stock. An existing investor affiliated with a member of the Board of Directors participated in this equity conversion and received 354,268 shares of Series B redeemable convertible preferred stock and warrants to purchase 21,256 shares of Series B redeemable convertible preferred stock. See Note 7. An immediate family member of the Company’s CEO and founder was a partner of a law firm retained by the Company in 2020 and 2019. While that family member was associated with this law firm, the Company purchased services in the amounts of $2.9 million and $0.9 million during the years ended December 31, 2020, and 2019, respectively. The amounts due to this law firm were $0 as of December 31, 2020. The family member was no longer associated with the law firm for the year-ended 2021.

Related Parties

12 Months Ended

Dec. 31, 2021

18. Related Parties

In July 2020, the CEO and founder, entered into an agreement with another significant shareholder, that provides, upon consummation of the PTAC Merger Agreement, for a payment of $3.2 million in cash and 950,000 of Porch Group, Inc. stock from the CEO to the other significant shareholder in connection with the Merger Agreement including the conversion of preferred stock to common stock. This transfer of $17.3 million in consideration was accounted for as a deemed capital contribution from the CEO and founder to the Company and induced conversion of preferred stock into common stock immediately prior to the close of the PTAC

Merger Agreement. The total consideration transferred increase total net loss in determining net loss available to common shareholders by $17.3 million.

In 2019, the CEO and founder of the Company purchased convertible promissory notes with an aggregate original principal balance of $1.0 million.

In 2019, the Company sold a direct-to-customer security services business to a related party as one of its divestitures as it focused the business operations on its core vertical software strategy. See Note 12.

In 2019, the Company entered into an acquisition deferral agreement with the former owner of a business previously acquired by the Company on March 14, 2017. The existing agreement provided for payments of $0.9 million on December 31, 2018, and $0.2 million quarterly from June 14, 2019 through March 14, 2020. The amended payment schedule provides for monthly installments of at least $0.1 million, as determined by the agreement, beginning in June 2019. The balance was paid in full in December 2021.

In 2019, convertible promissory notes having an aggregate original principal balance of $16.6 million and accrued interest of $641 converted into 1,173,473 shares of Series B redeemable convertible preferred stock and warrants to purchase 70,408 shares of Series B redeemable convertible preferred stock. An existing investor affiliated with a member of the Board of Directors participated in this equity conversion and received 354,268 shares of Series B redeemable convertible preferred stock and warrants to purchase 21,256 shares of Series B redeemable convertible preferred stock. See Note 7.

An immediate family member of the Company’s CEO and founder was a partner of a law firm retained by the Company in 2020 and 2019. While that family member was associated with this law firm, the Company purchased services in the amounts of $2.9 million and $0.9 million during the years ended December 31, 2020, and 2019, respectively. The amounts due to this law firm were $0 as of December 31, 2020. The family member was no longer associated with the law firm for the year-ended 2021.