Business Disposition

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Business Disposition

Business Disposition

Sale of Metromile Enterprise

As of March 31, 2022, the Company committed to a plan to sell its Enterprise Business Solutions segment. The assets and liabilities of Enterprise Business Solutions have been classified as held for sale in the Company's consolidated balance sheets beginning with the period ended March 31, 2022. Revenues and earnings are not material to the Company's Consolidated Results of Operations for the three months ended March 31, 2022 and 2021 (unaudited). Under GAAP accounting guidance, only disposals of components of an entity that represent a strategic shift and that have a major

effect on a reporting entity’s operations and financial results are reported as discontinued operations. Because Metromile’s primary business continues to be property and casualty insurance, as well as the immaterial expected impact on the Company’s ongoing results of operations, the sale of Enterprise Business Solutions was not reported as a discontinued operation. The business does not meet the criteria to be classified as a discontinued operation; therefore, the results are reflected within continuing operations on the consolidated statement of operations.

The pending sale did not result in an estimated loss on the sale, and as such, no accrual for the estimated before tax loss is included as a reduction of the carrying value of assets held for sale in the Company's Condensed consolidated balance sheets as of March 31, 2022 (unaudited).

The carrying value of assets and liabilities to be transferred in connection with the sale is as follows:

	March 31, 2022
	(unaudited)
Assets
Cash and cash equivalents	2,393
Prepaid expenses and other assets	1,705
Website and software development costs, net	5,155
Total assets	$	9,253
Liabilities
Deferred revenue	5,906
Accounts payable and accrued expenses	250
Total liabilities	$	6,156