Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 304

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 304
---
 following:

| ​                          
 Current income taxes       | ​ 
 ​ | ​ 
 ​ | 2024 
 ​    | ​ |      ​ | ​ | ​ 
 ​ | ​ 
 ​ | 2023 
 ​    | ​ | ​ | ​ | ​ 
 ​ |
|:---------------------------|:--|:--|:-----|:--|-------:|:--|:--|:--|:-----|:--|:--|:--|:--|
| Federal                    | ​ | ​ | ​    | $ | 15,734 | ​ | ​ | ​ | ​    | $ | — | ​ | ​ |
| State                      | ​ | ​ | ​    | ​ | 14,305 | ​ | ​ | ​ | ​    | ​ | — | ​ | ​ |
| Total current              | ​ | ​ | ​    | ​ | 30,039 | ​ | ​ | ​ | ​    | ​ | — | ​ | ​ |
| Deferred income taxes      | ​ | ​ | ​    | ​ |      ​ | ​ | ​ | ​ | ​    | ​ | ​ | ​ | ​ |
| Federal                    | ​ | ​ | ​    | ​ |      — | ​ | ​ | ​ | ​    | ​ | — | ​ | ​ |
| State                      | ​ | ​ | ​    | ​ |      — | ​ | ​ | ​ | ​    | ​ | — | ​ | ​ |
| Total deferred             | ​ | ​ | ​    | ​ |      — | ​ | ​ | ​ | ​    | ​ | — | ​ | ​ |
| Provision for income taxes | ​ | ​ | ​    | $ | 30,039 | ​ | ​ | ​ | ​    | $ | — | ​ | ​ |

A valuation allowance must be established for any portion of the deferred tax asset which is believed not to be realizable. Management reviews the need for a valuation allowance based on anticipated future earnings, reversal of future taxable differences, the available carryback and carryforward periods, and tax planning strategies that are prudent and feasible. In management’s opinion, it is more likely than not that the Company will not realize the benefit of our deferred taxes and therefore recorded a valuation allowance of $108,857 at December 31, 2024 and $170,326 at December 31, 2023.

F-12

TABLE OF CONTENTS

The tax effects of temporary differences