Company: KG
Filing Date: 2025-03-24
Form Type: S-4/A
Source: 0001104659-25-027242
Chunk: 227

Company: Kestrel Group Ltd
Filing Date: 2025-03-24
Form: S-4/A
Chunk 227
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 All other revenue recognized for the years ended December 31, 2024 and 2023 related to the placement of insurance policies with program managers that were recognized when the insurance was considered binding. Salaries & wages. Expenses related to salaries & wages are for the employees on Kestrel’s payroll. These expenses declined approximately $123,000 for the year ended December 31, 2024 compared to the year ended December 31, 2023 due to certain non-recurring required incentive payments that were made in 2023. Kestrel anticipates adding to its employee headcount in support of its overall revenue and program growth. Professional fees. Kestrel receives professional and administrative services through a management and expense reimbursement arrangement with AmTrust North America Inc. that has common ownership and management with Kestrel. Kestrel incurred approximately $826,000 and $1,150,000 during the years ended December 31, 2024 and 2023, respectively, related to the agreement that governs Kestrel’s contractual arrangement with each of the AmTrust Insurance Companies. Legal expenses. Kestrel and certain of its officers and directors were subject to a lawsuit filed by a former employer of such persons in September 2022. This legal proceeding was fully and finally resolved pursuant to a final judgment and disposition entered in October 2022. Legal and related expenses were incurred through December 31, 2023 in connection with this proceeding and certain conditions of the resolution.

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Rent expenses. Kestrel’s principal executive offices are located at 8333 Douglas Avenue, Suite 1360, Dallas, Texas 75225, and its telephone number is (469) 423-2763. The Dallas office is leased through Kestrel’s wholly owned subsidiary, Kestrel Service Corporation, pursuant to a Lease Agreement dated October 23, 2019. Kestrel Service Corporation reimburses Terry Ledbetter via an expense reimbursement provision under his employment agreement for the use of this leased office space. This Lease Agreement expires January 31, 2026. Kestrel also leases office space for the corporate office in Austin, Texas, through Kestrel Service Corporation, that expires in 2027. Lease payments have an escalating fee schedule, which range from a 3% to 4% increase each year. Termination of the lease is generally prohibited unless there is a violation under the lease agreement. See “— Contractual Obligations and Commitments”. Meals