Trupanion (TRUP) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2016	Apr. 28, 2016
Entity Information [Line Items]
Entity Registrant Name	TRUPANION INC.
Entity Central Index Key	1,371,285
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		28,655,461

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue	$ 42,699	$ 33,310
Claims expenses	30,604	23,351
Other cost of revenue	4,791	4,377
Gross profit	7,304	5,582
Sales and marketing	3,840	3,651
Technology Services Costs	2,287	2,798
General and administrative	3,722	3,697
Total operating expenses	9,849	10,146
Operating loss	(2,545)	(4,564)
Interest expense	30	245
Other (income) expense, net	(17)	19
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(2,558)	(4,828)
Income tax expense	14	108
Net loss	$ (2,572)	$ (4,936)
Net loss per share: Basic and diluted (per share)	$ (0.09)	$ (0.18)
Weighted average shares used to compute net loss per share: Basic and diluted (in shares)	27,999,248	27,337,302

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net loss	$ (2,572)	$ (4,936)
Foreign currency translation adjustments	289	(129)
Change in unrealized losses on available-for-sale securities	2	(8)
Other comprehensive income (loss), net of taxes	291	(137)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (2,281)	$ (5,073)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Cash and cash equivalents	$ 17,526	$ 17,956
Short-term Investments	25,567	25,288
Accounts and other receivables	8,464	8,196
Prepaid expenses and other assets	2,038	2,193
Total current assets	53,595	53,633
Investments in fixed maturities, at fair value	2,489	2,388
Equity Method Investments	296	300
Property and equipment, net	9,587	9,719
Other long term assets	4,865	4,854
Other Assets, Noncurrent	38	23
Total assets	70,870	70,917
Accounts payable	1,027	1,289
Accrued liabilities	2,988	4,189
Claims reserve	6,854	6,274
Deferred Revenue, Current	11,785	11,042
Deferred Tax Liabilities, Net, Current	169	169
Other payables	809	654
Total current liabilities	23,632	23,617
Long-term debt	968	0
Deferred tax liabilities	1,431	1,433
Other liabilities	531	511
Total liabilities	26,562	25,561
Common stock: $0.00001 par value per share	0	0
Preferred Stock, Value, Outstanding	0	0
Additional paid-in capital	124,077	122,844
Accumulated other comprehensive loss	(211)	(502)
Accumulated deficit	(76,957)	(74,385)
Treasury stock, at cost	(2,601)	(2,601)
Stockholders' Equity Attributable to Parent	44,308	45,356
Total liabilities and stockholders' equity	$ 70,870	$ 70,917

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Liabilities, Current	$ 23,632	$ 23,617
Held-to-maturity Securities, Fair Value	25,567	25,288
Available-for-sale Securities, Amortized Cost Basis	$ 2,541	$ 2,442
Common Stock [Member]
Common Stock, Par or Stated Value Per Share	$ 0	$ 0
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	29,195,507	29,017,168
Common Stock, Shares, Outstanding	28,574,528	28,396,189
Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0	$ 0
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Treasury Stock [Member]
Treasury Stock, Shares	620,979	620,979

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net loss	$ (2,572)	$ (4,936)
Depreciation and amortization	785	566
Stock-based compensation expense	696	703
Increase (Decrease) in Other Operating Assets	9	(116)
Accounts receivables	(234)	75
Prepaid expenses and other current assets	153	(152)
Accounts payable	(200)	(387)
Accrued liabilities	(1,267)	(736)
Increase (Decrease) in Claims Reserve and Loss Adjustment	521	76
Deferred revenue	676	329
Other payables	135	(330)
Net cash used in operating activities	(1,298)	(4,908)
Payments to Acquire Held-to-maturity Securities	(3,959)	(3,206)
Proceeds from Sale and Maturity of Held-to-maturity Securities	3,700	4,245
Purchases of property and equipment	(653)	(1,590)
Payments for (Proceeds from) Investments	(34)	0
Net cash used in investing activities	(946)	(551)
Payments Related to Tax Withholding for Share-based Compensation	0	(384)
Proceeds from exercise of stock options	486	367
Proceeds from (Repayments of) Debt	987	(14,900)
Net cash provided by (used in) financing activities	1,473	(14,917)
Effect of foreign exchange rates on cash, net	341	(228)
Net change in cash and cash equivalents	(430)	(20,604)
Cash and cash equivalents at beginning of period	17,956	53,098
Cash and cash equivalents at end of period	17,526	32,494
Income taxes paid	0	(98)
Interest paid	(16)	(249)
Increase in payables for property and equipment	$ 58	$ 367

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Nature of Operations and Summary of Significant Accounting Policies Description of Business Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance plans for cats and dogs throughout the United States, Canada and Puerto Rico. Basis of Presentation The consolidated balance sheet data as of December 31, 2015 was derived from audited consolidated financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for unaudited consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 17, 2016. The accompanying unaudited consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Company’s financial position and results of its operations, as of and for the periods presented. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or for any other period. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies and the reported amounts of revenue and expenses. Significant items subject to such estimates and assumptions include the valuation of deferred tax assets, stock-based compensation, claims reserve, useful lives of software developed for internal use and income tax uncertainties. Actual results could differ from the estimates used in preparing the consolidated financial statements. Accumulated Other Comprehensive Loss There were no reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2016 and 2015. Recent Accounting Pronouncements In May 2015, the FASB issued an ASU amending short-term insurance contract disclosures and requiring more detailed disclosures to enable users of financial statements to understand information relating to liabilities for unpaid claims and claims adjustment expenses. Additionally, the amendments will also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate these liabilities. This guidance is effective for annual reporting periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. Early adoption of this guidance is permitted, and must be applied retrospectively by providing comparative disclosures for each period presented. The Company plans to adopt this guidance as of January 1, 2016. The Company is in the process of assessing the impact of this guidance. In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current on the consolidated balance sheet. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. The Company plans to prospectively adopt this guidance as of January 1, 2017. The Company is in the process of assessing the impact of this guidance. In February 2016, the FASB issued an ASU amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the balance sheet. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2019. The Company is in the process of assessing the impact of this guidance. In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Additionally, tax withholding of shares will be allowed to be up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2017. The Company is in the process of assessing the impact of this guidance.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. Excluded from the weighted-average number of shares outstanding are shares that have been issued and are subject to future vesting and unvested restricted stock. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock method. Potentially dilutive common stock equivalents are comprised of unvested restricted stock, stock options, and warrants. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. The following potentially dilutive equity securities are not included in the diluted net loss per common share calculation because they would have had an antidilutive effect: As of March 31, 2016 2015 Stock options 4,760,535 4,677,592 Restricted stock awards and units 472,384 592,625 Warrants 869,999 869,999

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	Investment Securities The amortized cost, gross unrealized holding losses, and fair value of available-for-sale and short-term investments by major security type and class of security were as follows as of March 31, 2016 and December 31, 2015 (in thousands): Amortized Gross Fair As of March 31, 2016 Available-for-sale: Foreign deposits $ 1,541 $ — $ 1,541 Municipal bond 1,000 (52 ) 948 $ 2,541 $ (52 ) $ 2,489 Short-term investments: U.S. Treasury securities $ 5,891 $ — $ 5,891 Certificates of deposit 670 — 670 U.S. government funds 19,006 — 19,006 $ 25,567 $ — $ 25,567 Amortized Gross Fair As of December 31, 2015 Available-for-sale: Foreign deposits $ 1,442 $ — $ 1,442 Municipal bond 1,000 (54 ) 946 $ 2,442 $ (54 ) $ 2,388 Short-term investments: U.S. Treasury securities $ 5,683 $ — $ 5,683 Certificates of deposit 1,551 — 1,551 U.S. government funds 18,054 — 18,054 $ 25,288 $ — $ 25,288 Maturities of debt securities classified as available-for-sale were as follows (in thousands): March 31, 2016 Amortized Fair Available-for-sale: Due under one year $ — $ — Due after one year through five years 1,541 1,541 Due after five years through ten years 1,000 948 Due after ten years — — $ 2,541 $ 2,489 The Company had one investment with an unrealized loss of $0.1 million and a fair value of $0.9 million at M arch 31, 2016 and December 31, 2015, respectively. The debt security has been in the unrealized loss position for more than 12 months. The Company has assessed the bond for credit impairment and has determined that there is no intent to sell this bond and it is likely that it will hold the investment for a period of time sufficient to allow for a recovery. Furthermore, future payments on this bond are insured by a financial guarantee insurer. Therefore, the Company believes that the unrealized loss on this bond constitutes a temporary impairment.

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	Fair Value The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 inputs: Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of March 31, 2016 Fair Value Level 1 Level 2 Level 3 Assets Foreign deposits $ 1,541 $ 1,541 $ — $ — Municipal bond 948 — 948 — Money market funds 6,954 6,954 — — Total $ 9,443 $ 8,495 $ 948 $ — As of December 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets Foreign deposits $ 1,442 $ 1,442 $ — $ — Municipal bond 946 — 946 — Money market funds 7,545 7,545 — — Total $ 9,933 $ 8,987 $ 946 $ — The Company estimates fair value for its long-term debt based upon rates currently available to the Company for debt with similar terms and remaining maturities. This is a Level 3 measurement. Based upon the terms of the debt, the carrying amount of long term debt approximated fair value at March 31, 2016. The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers between levels for the three months ended March 31, 2016 and 2015. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Investment securities: Long-term investments classified as available-for-sale are measured using quoted market prices when quoted market prices are available. If quoted market prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices of similar instruments and other significant inputs derived from observable market data obtained from third-party data providers. Short-term investments are carried at amortized cost and the fair value is disclosed in Note 3. Fair value is determined in the same manner as available-for-sale securities and is considered a Level 2 measurement.

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Debt The Company has a revolving line of credit with a bank, which is secured by any and all interest the Company has in assets that are not otherwise restricted. The revolving line of credit bears a variable interest rate equal to the greater of 4.5% or 1.25% plus the prime rate . Interest expense is due monthly on the outstanding principal amount with all amounts outstanding under the revolving line of credit due upon maturity in July 2017. The credit agreement requires the Company to comply with various financial and non-financial covenants. As of March 31, 2016, the Company is in compliance with all covenants. This facility also currently has a compensating balance requirement of $0.5 million and an irrevocable standby letter of credit totaling $1.1 million , which reduces the amount available on the line of credit. As of March 31, 2016, the Company had $17.4 million available under its revolving line of credit. Borrowings on the revolving line of credit are limited to the lesser of $20.0 million in 2016 and 2015, and the total amount of cash and securities held by American Pet Insurance Company (APIC), less up to $3.0 million for obligations the Company may have outstanding for other ancillary services in the future. As of March 31, 2016, the Company had $1.0 million outstanding under this facility.

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Commitments and Contingencies During 2016, the Company has entered into strategic marketing and service provider agreements, as well as other agreements with various parties. As of the March 31, 2016, these agreements resulted in an increase in future commitments of $1.3 million for the remainder of 2016, $0.3 million in 2017 and $0.1 million in 2018. The Company received an inquiry from the Washington State Office of the Insurance Commissioner (OIC) in December 2012 concerning whether subsidiaries of the Company were properly licensed, and whether certain of its employees were properly licensed, under Washington law. A regulatory examination took place during the third and fourth quarters of 2014. On September 22, 2015, the OIC issued its report and the Company timely issued a response during the fourth quarter of 2015. As of March 31, 2016 and December 31, 2015, the Company had accrued liabilities of $0.4 million for this matter. Adverse outcomes beyond recorded amounts are reasonably possible. At this stage in the matter, however, the Company is unable to estimate a possible loss or range of possible loss beyond amounts accrued. The outcomes of the Company’s legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to the Company's operating results and cash flows for a particular period. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability beyond previously accrued amounts has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.

Segments

Segments	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Segments The Company operates in two segments: subscription business and other business. The subscription business segment includes monthly subscriptions related to the Company’s medical plan which are marketed directly to consumers, while the other business segment includes all other business which is not directly marketed to consumers. The chief operating decision maker uses two measures to evaluate segment performance: revenue and gross profit. Additionally, other operating expenses, such as sales and marketing expenses, are allocated to each segment and evaluated when material. Interest and other expenses and income taxes are not allocated to the segments, nor included in the measure of segment profit or loss. The Company does not analyze discrete segment balance sheet information related to long-term assets. Revenue and gross profit of the Company’s segments were as follows (in thousands): Three Months Ended March 31, 2016 2015 Revenue: Subscription business $ 39,143 $ 30,056 Other business 3,556 3,254 42,699 33,310 Claims expenses: Subscription business 28,510 21,502 Other business 2,094 1,849 30,604 23,351 Other cost of revenue: Subscription business 3,693 3,264 Other business 1,098 1,113 4,791 4,377 Gross profit: Subscription business 6,940 5,290 Other business 364 292 7,304 5,582 Sales and marketing: Subscription business 3,802 3,625 Other business 38 26 3,840 3,651 Technology and development 2,287 2,798 General and administrative 3,722 3,697 Operating loss $ (2,545 ) $ (4,564 ) The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended March 31, 2016 2015 United States $ 34,477 $ 25,831 Canada 8,222 7,479 Total revenue $ 42,699 $ 33,310 Substantially all of the Company’s long-lived assets were located in the United States as of March 31, 2016 and December 31, 2015.

Subsequent Events (Notes)

Subsequent Events (Notes)	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent Events On April 11, 2016, the Company entered into a two year lease agreement to lease office furniture and information technology equipment. Lease payments are anticipated to begin during the second quarter of 2016. The total amount available over the life the lease will be up to $0.8 million at an interest rate of 3.5% to 4.7% for hardware costs and non-hardware costs.

Nature of Operations and Summ15

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Basis of Presentation [Text Block]	Description of Business Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance plans for cats and dogs throughout the United States, Canada and Puerto Rico.
Description of Business and Basis of Presentation	Basis of Presentation The consolidated balance sheet data as of December 31, 2015 was derived from audited consolidated financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for unaudited consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 17, 2016. The accompanying unaudited consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Company’s financial position and results of its operations, as of and for the periods presented. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or for any other period.
Use of Estimates [Policy Text Block]	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies and the reported amounts of revenue and expenses. Significant items subject to such estimates and assumptions include the valuation of deferred tax assets, stock-based compensation, claims reserve, useful lives of software developed for internal use and income tax uncertainties. Actual results could differ from the estimates used in preparing the consolidated financial statements.
Comprehensive Income, Policy [Policy Text Block]	Accumulated Other Comprehensive Loss There were no reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2016 and 2015.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2015, the FASB issued an ASU amending short-term insurance contract disclosures and requiring more detailed disclosures to enable users of financial statements to understand information relating to liabilities for unpaid claims and claims adjustment expenses. Additionally, the amendments will also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate these liabilities. This guidance is effective for annual reporting periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. Early adoption of this guidance is permitted, and must be applied retrospectively by providing comparative disclosures for each period presented. The Company plans to adopt this guidance as of January 1, 2016. The Company is in the process of assessing the impact of this guidance. In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current on the consolidated balance sheet. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. The Company plans to prospectively adopt this guidance as of January 1, 2017. The Company is in the process of assessing the impact of this guidance. In February 2016, the FASB issued an ASU amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the balance sheet. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2019. The Company is in the process of assessing the impact of this guidance. In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Additionally, tax withholding of shares will be allowed to be up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2017. The Company is in the process of assessing the impact of this guidance.

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The following potentially dilutive equity securities are not included in the diluted net loss per common share calculation because they would have had an antidilutive effect: As of March 31, 2016 2015 Stock options 4,760,535 4,677,592 Restricted stock awards and units 472,384 592,625 Warrants 869,999 869,999

Investment Securities Available

Investment Securities Available-for-Sale (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Investment [Table Text Block]	The amortized cost, gross unrealized holding losses, and fair value of available-for-sale and short-term investments by major security type and class of security were as follows as of March 31, 2016 and December 31, 2015 (in thousands): Amortized Gross Fair As of March 31, 2016 Available-for-sale: Foreign deposits $ 1,541 $ — $ 1,541 Municipal bond 1,000 (52 ) 948 $ 2,541 $ (52 ) $ 2,489 Short-term investments: U.S. Treasury securities $ 5,891 $ — $ 5,891 Certificates of deposit 670 — 670 U.S. government funds 19,006 — 19,006 $ 25,567 $ — $ 25,567 Amortized Gross Fair As of December 31, 2015 Available-for-sale: Foreign deposits $ 1,442 $ — $ 1,442 Municipal bond 1,000 (54 ) 946 $ 2,442 $ (54 ) $ 2,388 Short-term investments: U.S. Treasury securities $ 5,683 $ — $ 5,683 Certificates of deposit 1,551 — 1,551 U.S. government funds 18,054 — 18,054 $ 25,288 $ — $ 25,288
Available-for-sale Securities [Table Text Block]	Maturities of debt securities classified as available-for-sale were as follows (in thousands): March 31, 2016 Amortized Fair Available-for-sale: Due under one year $ — $ — Due after one year through five years 1,541 1,541 Due after five years through ten years 1,000 948 Due after ten years — — $ 2,541 $ 2,489

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair value, asset & liabilities measured on recurring basis [Table Text Block]	The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of March 31, 2016 Fair Value Level 1 Level 2 Level 3 Assets Foreign deposits $ 1,541 $ 1,541 $ — $ — Municipal bond 948 — 948 — Money market funds 6,954 6,954 — — Total $ 9,443 $ 8,495 $ 948 $ — As of December 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets Foreign deposits $ 1,442 $ 1,442 $ — $ — Municipal bond 946 — 946 — Money market funds 7,545 7,545 — — Total $ 9,933 $ 8,987 $ 946 $ —

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	The following table presents information regarding stock options granted, exercised and forfeited for the periods presented: Number Of Options Weighted-Average Exercise Price Aggregate Intrinsic Value (in thousands) December 31, 2015 4,871,949 $ 3.71 $ 29,644 Granted 180,373 8.62 Exercised (179,737 ) 2.74 1,170 Forfeited (112,050 ) 6.73 March 31, 2016 4,760,535 3.87 28,655 Vested and exercisable at March 31, 2016 3,523,513 $ 2.48 $ 26,045 As of March 31, 2016, the stock options outstanding had a remaining contractual life of 6.0 years.
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	The expense recognized in each category is provided in the table below: Three Months Ended March 31, 2016 2015 (in thousands) Claims expenses $ 58 $ 53 Other cost of revenue 8 16 Sales and marketing 82 130 Technology and development 55 121 General and administrative 493 383 Total stock-based compensation $ 696 $ 703
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Stock-Based Compensation The following table presents information regarding stock options granted, exercised and forfeited for the periods presented: Number Of Options Weighted-Average Exercise Price Aggregate Intrinsic Value (in thousands) December 31, 2015 4,871,949 $ 3.71 $ 29,644 Granted 180,373 8.62 Exercised (179,737 ) 2.74 1,170 Forfeited (112,050 ) 6.73 March 31, 2016 4,760,535 3.87 28,655 Vested and exercisable at March 31, 2016 3,523,513 $ 2.48 $ 26,045 As of March 31, 2016, the stock options outstanding had a remaining contractual life of 6.0 years. Stock-based compensation expense includes stock options and restricted stock awards and units granted to employees and non-employees and has been reported in the Company’s statements of operations in claims expenses, other cost of revenue, sales and marketing, technology and development, and general and administrative expenses depending on the function performed by the employee or non-employee. The Company measures compensation expense on a straight-line basis except for restricted stock with a performance condition which is measured on a graded vesting schedule. The remaining 467,508 shares of unvested restricted stock measured on a graded vesting schedule are expected to vest over the remaining service term of approximately 3.5 years. As of March 31, 2016, the Company had unrecognized stock-based compensation of $5.0 million , which is expected to vest over a weighted-average period of approximately 2.3 years. As of March 31, 2016, the Company had 1,199,911 unvested stock options and 472,384 restricted stock awards and units that are expected to vest. No net tax benefits related to the stock-based compensation costs have been recognized since the Company’s inception. The expense recognized in each category is provided in the table below: Three Months Ended March 31, 2016 2015 (in thousands) Claims expenses $ 58 $ 53 Other cost of revenue 8 16 Sales and marketing 82 130 Technology and development 55 121 General and administrative 493 383 Total stock-based compensation $ 696 $ 703

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Revenue and Gross Profit from Segments [Table Text Block]	Revenue and gross profit of the Company’s segments were as follows (in thousands): Three Months Ended March 31, 2016 2015 Revenue: Subscription business $ 39,143 $ 30,056 Other business 3,556 3,254 42,699 33,310 Claims expenses: Subscription business 28,510 21,502 Other business 2,094 1,849 30,604 23,351 Other cost of revenue: Subscription business 3,693 3,264 Other business 1,098 1,113 4,791 4,377 Gross profit: Subscription business 6,940 5,290 Other business 364 292 7,304 5,582 Sales and marketing: Subscription business 3,802 3,625 Other business 38 26 3,840 3,651 Technology and development 2,287 2,798 General and administrative 3,722 3,697 Operating loss $ (2,545 ) $ (4,564 )
Revenue from External Customers by Geographic Areas [Table Text Block]	The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended March 31, 2016 2015 United States $ 34,477 $ 25,831 Canada 8,222 7,479 Total revenue $ 42,699 $ 33,310

Nature of Operations and Summ21

Nature of Operations and Summary of Significant Accounting Policies (Details) OCI - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 0	$ 0
Accumulated other comprehensive loss: unrealized loss on available for sale securities	52,000		$ 54,000
Unrealized foreign currency gain (loss)	$ 289,000	$ (129,000)

Net Loss per Share (Details) Sc

Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,760,535	4,871,949
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,760,535		4,677,592
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Restricted stock, outstanding	472,384		592,625
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common shares attributable to dilutive effect of warrants	869,999		869,999

Investment Securities (Details)

Investment Securities (Details) Investment Schedule - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investment [Line Items]
Held-to-maturity securities, amortized cost	$ 25,567	$ 25,288
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	25,567	25,288
Available-for-sale securities, amortized cost	2,541	2,442
Available-for-sale securities, gross unrealized holding losses	(52)	(54)
Marketable Securities, Noncurrent	2,489	2,388
Available-for-sale securities, fair value	2,489	2,388
Deposits [Member]
Investment [Line Items]
Available-for-sale securities, amortized cost	1,541	1,442
Available-for-sale securities, gross unrealized holding losses	0	0
Marketable Securities, Noncurrent	1,541	1,442
Available-for-sale securities, fair value	1,541	1,442
Municipal Bonds [Member]
Investment [Line Items]
Available-for-sale securities, amortized cost	1,000	1,000
Available-for-sale securities, gross unrealized holding losses	(52)	(54)
Marketable Securities, Noncurrent	948	946
Available-for-sale securities, fair value	948	946
U.S. Treasury securities
Investment [Line Items]
Held-to-maturity securities, amortized cost	5,891	5,683
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	5,891	5,683
Certificates of deposit
Investment [Line Items]
Held-to-maturity securities, amortized cost	670	1,551
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	670	1,551
US government debt securities
Investment [Line Items]
Held-to-maturity securities, amortized cost	19,006	18,054
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	$ 19,006	$ 18,054

Investment Securities (Detail24

Investment Securities (Details) Narrative - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Accumulated other comprehensive loss: unrealized loss on available for sale securities	$ 52	$ 54
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	948
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	$ 900	$ 100

Investment Securities (Detail25

Investment Securities (Details) Held-to-Maturity - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Held-to-maturity securities, amortized cost	$ 25,567	$ 25,288
Held-to-maturity securities, fair value	$ 25,567	$ 25,288

Investment Securities (Detail26

Investment Securities (Details) Available-for-Sale - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 900	$ 100
Available-for-sale securities, debt maturities, next twelve months, amortized cost basis	0
Available-for-sale securities, debt maturities, next twelve months, fair value	0
Available-for-sale securities, debt maturities, year two through five, amortized cost basis	1,541
Available-for-sale securities, debt maturities, year two through five, fair value	1,541
Available-for-sale securities, debt maturities, year six through ten, amortized cost basis	1,000
Available-for-sale securities, debt maturities, year six through ten, fair value	948
Available-for-sale securities, debt maturities, after ten years, amortized cost basis	0
Available-for-sale securities, debt maturities, after ten years, fair value	0
Available-for-sale securities, amortized cost	2,541	2,442
Available-for-sale securities, debt maturities, fair value	$ 2,489	$ 900

Fair Value (Details) Unobservab

Fair Value (Details) Unobservable - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	$ 2,489	$ 2,388
Assets, Fair Value Disclosure	9,443	9,933
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	8,495	8,987
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	948	946
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	0	0
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	6,954	7,545
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	6,954	7,545
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Municipal bond
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	948	946
Municipal bond | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	0	0
Municipal bond | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	948	946
Municipal bond | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	0	0
Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	1,541	1,442
Deposits [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	1,541	1,442
Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	0	0
Deposits [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	$ 0	$ 0

Fair Value (Details) Narrative

Fair Value (Details) Narrative - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value Hierarchy [Abstract]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	$ 0	$ 0

Debt (Details) Narrative

Debt (Details) Narrative - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Line of credit facility, interest rate description	greater of 4.5% or 1.25% plus the prime rate
Compensating balance	$ 0.5
Line of Credit Facility, Maximum Amount Outstanding During Period	20	$ 20
Line of Credit Facility, Ancillary Services	3
Line of Credit, Current	1
Letters of Credit Outstanding, Amount	1.1
Line of Credit Facility, Remaining Borrowing Capacity	$ 17.4

Commitment and Contingencies (D

Commitment and Contingencies (Details) Narrative - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Long-term Purchase Commitment, Amount	$ 0.1	$ 0.3	$ 1.3
Loss contingency accrual				$ 0.4	$ 0.4

Stock-based Compensation (Detai

Stock-based Compensation (Details) Options Granted, Exercised and Forfeited - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation, options, forfeited, weighted-average exercise price	$ 6.73
Stock-based compensation, options, outstanding, number of shares	4,760,535	4,871,949
Stock-based compensation, options, outstanding, weighted-average exercise price	$ 3.87	$ 3.71
Stock-based compensation, options, outstanding, aggregate intrinsic value	$ 28,655	$ 29,644
Stock-based compensation, options, granted, number of options	180,373
Stock-based compensation, options, granted, weighted-average exercise price	$ 8.62
Stock-based compensation, options, exercised, weighted-average exercise price	$ 2.74
Stock-based compensation, options, exercised	(179,737)
Stock-based compensation, options, exercised, aggregate intrinsic value	$ 1,170
Stock-based compensation, options, forfeited	(112,050)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	3,523,513
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 2.48
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$ 26,045

Stock-based Compensation (Det32

Stock-based Compensation (Details) Expense Category - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$ 696	$ 703
Claims expense
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	58	53
Other Expense [Member]
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	8	16
Sales and marketing
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	82	130
Technology services costs [Member]
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	55	121
General and administrative
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$ 493	$ 383

Stock-based Compensation (Det33

Stock-based Compensation (Details) Narrative $ in Millions	3 Months Ended	195 Months Ended
	Mar. 31, 2016USD ($)shares	Mar. 31, 2016USD ($)shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $		$ 0
Unvested Portion of Restricted Stock Grant with IPO Performance Condition | shares	467,508	467,508
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $	$ 5	$ 5
Unvested RSUs with IPO Performance Condition, Remaining Vesting Period	3 years 6 months
Remaining contractual life, share-based payments, weighted average	6 years 2 days
Share-based compensation arrangement , non-employee, weighted average remaining vesting period	2 years 3 months 15 days
Share-based compensation arrangement by share-based payment award, options, nonvested, number of shares | shares	1,199,911	1,199,911

Segments (Details) Business Seg

Segments (Details) Business Segment - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 42,699	$ 33,310
Claims expenses	30,604	23,351
Other cost of revenue	4,791	4,377
Gross profit	7,304	5,582
Sales and marketing	3,840	3,651
Technology Services Costs	2,287	2,798
General and administrative	3,722	3,697
Operating loss	(2,545)	(4,564)
Subscription business
Segment Reporting Information [Line Items]
Revenue	39,143	30,056
Claims expenses	28,510	21,502
Other cost of revenue	3,693	3,264
Gross profit	6,940	5,290
Sales and marketing	3,802	3,625
Other business
Segment Reporting Information [Line Items]
Revenue	3,556	3,254
Claims expenses	2,094	1,849
Other cost of revenue	1,098	1,113
Gross profit	364	292
Sales and marketing	$ 38	$ 26

Segments (Details) Revenue by G

Segments (Details) Revenue by Geography - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Revenues	$ 42,699	$ 33,310
CANADA
Segment Reporting Information [Line Items]
Revenues	8,222	7,479
UNITED STATES
Segment Reporting Information [Line Items]
Revenues	$ 34,477	$ 25,831

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] $ in Millions	3 Months Ended
	Jun. 30, 2016USD ($)
Subsequent Event [Line Items]
Capital Lease Obligations Incurred	$ 0.8
Capital Lease interest rate description	3.5% to 4.7%