Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 220

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 220
---
943 2,749,996 5,053,828 2,749,996 Basic and diluted (loss) earnings from continuing operations per share attributable to Kestrel shareholders$(0.53)$(0.16)$12.99 $(0.49)Basic and diluted loss from discontinued operations per share attributable to Kestrel shareholders(0.12)— (0.29)— Basic and diluted (loss) earnings per share attributable to Kestrel shareholders:$(0.65)$(0.16)$12.70 $(0.49)(1) There were no potentially dilutive securities for the three and nine months ended September 30, 2025 and 2024.

13. Income Taxes

The Company recognized income tax expense of $7 and $102 for the three and nine months ended September 30, 2025 compared to $0 for the same respective periods in 2024 . The effective tax rate on the Company's net loss differs from the statutory rate of zero percent under Bermuda law due to tax on foreign operations, primarily the U.S. A valuation allowance has been established against the net U.S. and International deferred tax assets which is primarily attributable to net operating losses in the respective regions. At this time, the Company believes it is necessary to establish a valuation allowance against the U.S. and International net deferred tax assets as more evidence is needed regarding the utilization of these losses.At September 30, 2025, the Company has available net operating loss carry-forwards of $446,633 (December 31, 2024: $358) for income tax purposes. Approximately $365,302 (December 31, 2024: $0) of net operating loss ("NOL") carryforwards expire in various years beginning in 2029. As of September 30, 2025, approximately $81,331 or 18.2% of the Company's NOL carryforwards have no expiry date under the relevant U.S. tax law (December 31, 2024 - $358 or 100.0%).

 49

KESTREL GROUP LTD NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)(in thousands of U.S. dollars, except share and per share data)

14. Assets Held for Sale

Sale of Swedish Subsidiaries and Related IIS OperationsAs discussed in "Note 1. Basis of Presentation", on November 29, 2024,