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

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

Trupanion, Inc. Condensed Statements of Operations and Comprehensive Loss (Parent Company Only, in thousands)
	Year Ended December 31,
	2019			2018			2017
Expenses:
Veterinary invoice expense	$	697		$	571		$	354
Other cost of revenue	353			357			239
Technology and development	1,085			512			528
General and administrative	5,974			4,879			4,204
Sales and marketing	2,137			1,355			889
Total expenses	10,246			7,674			6,214
Gain (loss) from investment in joint venture	(205		)	—			—
Operating loss	(10,451		)	(7,674		)	(6,214		)
Interest expense	1,327			1,184			529
Other (income) expense, net	(4,156		)	(2,557		)	(4,101		)
Loss before equity in undistributed earnings of subsidiaries	(7,622		)	(6,301		)	(2,642		)
Income tax benefit	5,423			4,042			5,302
Equity (loss) in undistributed earnings of subsidiaries	390			1,332			(4,163		)
Net loss	$	(1,809	)	$	(927	)	$	(1,503	)
Other comprehensive income (loss), net of taxes:
Other comprehensive income (loss) of subsidiaries	1,003			(661		)	285
Other comprehensive income (loss)	1,003			(661		)	285
Comprehensive loss	$	(806	)	$	(1,588	)	$	(1,218	)

Trupanion, Inc. Condensed Balance Sheets (Parent Company Only) (In thousands, except share data)
	December 31,
	2019			2018
Assets
Current assets:
Cash and cash equivalents	$	1,242		$	2,133
Accounts and other receivables	2,933			2,094
Prepaid expenses and other assets	361			661
Total current assets	4,536			4,888
Restricted cash	1,400			1,400
Property and equipment, net	663			568
Intangible assets, net	5,356			5,076
Other long-term assets	14,146			6,515
Advances to and investments in subsidiaries	138,174			125,475
Total assets	$	164,275		$	143,922
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable, accrued liabilities, and other current liabilities	$	311		$	885
Total current liabilities	311			885
Long-term debt	26,086			12,862
Deferred tax liabilities	1,118			1,002
Total liabilities	27,515			14,749
Stockholders’ equity:
Common stock: $0.00001 par value per share, 100,000,000 shares authorized at December 31, 2019 and December 31, 2018, 35,876,882 and 34,947,017 shares issued and outstanding at December 31, 2019; 34,781,121 and 34,025,136 shares issued and outstanding at December 31, 2018	—			—
Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized at December 31, 2019 and December 31, 2018, and 0 shares issued and outstanding at December 31, 2019 and December 31, 2018	—			—
Additional paid-in capital	232,731			219,838
Accumulated other comprehensive income (loss)	250			(753		)
Accumulated deficit	(85,520		)	(83,711		)
Treasury stock, at cost: 929,865 shares at December 31, 2019 and 755,985 shares at December 31, 2018	(10,701		)	(6,201		)
Total stockholders’ equity	136,760			129,173
Total liabilities and stockholders’ equity	$	164,275		$	143,922

Trupanion, Inc. Condensed Statements of Cash Flows (Parent Company Only, in thousands)
	Year Ended December 31,
	2019			2018			2017
Operating activities
Net loss	$	(1,809	)	$	(927	)	$	(1,503	)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
(Income) loss attributable to investments in subsidiaries	(390		)	(1,332		)	4,163
Depreciation and amortization	211			436			697
Stock-based compensation expense	6,846			4,775			3,419
Gain on sale of equity method investment	—			—			(1,036		)
Other, net	48			108			(380		)
Changes in operating assets and liabilities	(601		)	(97		)	743
Net cash provided by (used in) operating activities	4,305			2,963			6,103
Investing activities
Proceeds from sale of equity method investment	—			—			1,402
Purchases of property and equipment	(728		)	(164		)	(135		)
Advances to and investments in subsidiaries	(11,931		)	(67,884		)	(12,168		)
Other investments	(7,019		)	(4,237		)	(2,668		)
Net cash used in investing activities	(19,678		)	(72,285		)	(13,570		)
Financing activities
Proceeds from public offering of common stock, net of offering costs	—			65,671			—
Proceeds from exercise of stock options	2,982			3,601			2,545
Taxes paid related to net share settlement of equity awards	(1,667		)	(1,839		)	(1,170		)
Proceeds from debt financing, net of financing fees	13,167			13,430			4,400
Repayments of debt financing	—			(10,000		)	—
Other financing	—			287			(604		)
Net cash provided by financing activities	14,482			71,150			5,170
Net change in cash, cash equivalents, and restricted cash	(891		)	1,828			(2,297		)
Cash, cash equivalents, and restricted cash at beginning of period	3,533			1,705			4,001
Cash, cash equivalents, and restricted cash at end of period	$	2,642		$	3,533		$	1,705
Supplemental disclosures
Interest paid	$	1,166		$	1,007		$	333
Noncash investing and financing activities:
Property and equipment acquired under capital lease	—			—			471
Cashless exercise of common stock warrants	4,500			3,000			—
Issuance of common stock for acquisition of corporate real estate	$	—		$	9,640		$	—

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 $3.9 million, $2.2 million and $2.7 million for the years ended December 31, 2019, 2018 and 2017, 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, debt financing, stock-based compensation, stockholders’ equity, and income taxes are set forth in Notes 4, 8, 10, 11, 13, and 16, respectively, to the Consolidated Financial Statements.