Company: OXBRW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001493152-25-021063
Chunk: 58

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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 reasonable. These estimates
are continually reviewed and adjusted if necessary. Such adjustments are reflected in current operations.

The
Company consolidates in these consolidated financial statements the results of operations and financial position of all voting interest
entities (“VOE”) in which the Company has a controlling financial interest and all variable interest entities (“VIE”)
in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether
an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity.

All
significant intercompany balances and transactions have been eliminated.

    7

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes
to Consolidated Financial Statements (unaudited)

September
30, 2025

2.
SIGNIFICANT ACCOUNTING POLICIES

Revenue
Recognition: SurancePlus incentive, technology, origination and management (“ITOM”) fee income represents fee income
related to the completion of the SurancePlus’ CatRe tokenized reinsurance securities as well as placement of the underlying insurance
policies. The Company recognizes the associated revenue at the time of the placement of the underlying insurance policies as the performance
obligation is satisfied at that time.

Cash
and cash equivalents: Cash and cash equivalents are comprised of cash and short- term investments with original maturities of
three months or less.

Restricted
cash and cash equivalents: Restricted cash and cash equivalents represent funds held in accordance with the Company’s trust
agreements with ceding insurers and trustees, which requires the Company to maintain collateral with a market value greater than or equal
to the limit of liability, less unpaid premium.

Investments:
The Company from time to time invests in fixed-maturity debt securities and equity securities, and for which its fixed-maturity debt
securities are classified as available-for-sale. The Company’s available for sale debt investments are carried at fair value with
changes in fair value included as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity.
For the Company’s investment in equity securities,  the changes in fair value are recorded within the consolidated statements of operations. At September 30, 2025 and
December 31, 2024 the Company did not own any fixed maturity debt securities.

Unrealized
gains or losses are determined by comparing the fair market value of the securities with their cost or amortized cost. Realized gains
and losses on investments are recorded on