Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 1013

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 7
Chunk 1013
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. We use cash to pay losses and loss adjustment expenses, other underwriting
expenses, dividends, and general and administrative expenses. Substantially all of our surplus funds, net of funds required for cash
liquidity purposes, are invested in accordance with our business plan and investment guidelines. Our investment portfolio, except for
our investment in Jet.AI, is primarily comprised of cash and highly liquid securities, which can be liquidated, if necessary, to meet
current liabilities, we believe that we have sufficient flexibility to liquidate any securities that we own to generate liquidity.

As
of December 31, 2024, we believe we had sufficient cash flows from operations to meet our liquidity requirements. We expect that our
operational needs for liquidity will be met by cash, investment income and funds generated from underwriting activities. We have no current
plans to issue debt and expect to fund our operations for the foreseeable future from operating cash flows, as well as from potential
future equity offerings, including our ATM facility and registered direct offerings. However, we cannot provide assurances that in the future we will not incur indebtedness to implement our business
strategy, pay claims or make acquisitions.

Although
Oxbridge Re Holdings Limited is not subject to any significant legal prohibitions on the payment of dividends, its subsidiaries Oxbridge
Reinsurance Limited and Oxbridge Re NS are subject to Cayman Islands regulatory constraints that affect its ability to pay dividends
to us and include a minimum net worth requirement. Currently, the minimum net worth requirement for each subsidiary is $500. As of December
31, 2024, each subsidiary exceeded the minimum required. By law, each subsidiary is restricted from paying a dividend if such a dividend
would cause its net worth to drop to less than the required minimum.

37

Cash
Flows

Our
cash flows from operating, investing, and financing activities for the years ended December 31, 2024 and 2023 are summarized below.

Cash
Flows for the Year ended December 31, 2024 (in thousands)

Net cash used in operating activities for the year ended December 31, 2024
totaled $1,232, which consisted primarily of cash received on net written premiums less cash disbursed for operating expenses. Net cash
provided by investing activities of $780 which is due proceeds from sale of equity securities, as well as proceeds from redemption of
investment in note receivable and Series A-1 Preferred Stock from Jet.AI. Net cash provided by financing activities