Company: OXBRW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023960
Chunk: 32

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 incurs to the extent that any third-party reinsurer is unable or unwilling to make timely payments
under reinsurance agreements. The Company would also be liable in the event that its ceding companies were unable to collect amounts
due from underlying third-party reinsurers.

The
Company mitigates its concentrations of credit and counterparty risk by using reputable and several counterparties which decreases the
likelihood of any significant concentration of credit risk with any one counterparty.

Market
risk

Market
risk exists to the extent that the values of the Company’s monetary assets fluctuate as a result of changes in market prices. Changes
in market prices can arise from factors specific to individual securities or their respective issuers, or factors affecting all securities
traded in a particular market. Relevant factors for the Company are both volatility and liquidity of specific securities and markets
in which the Company holds investments. The Company has established investment guidelines that seek to mitigate significant exposure
to market risk.

    21

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes
to Consolidated Financial Statements (unaudited)

June
30, 2025

14.
LEASES

Operating
lease right-of-use assets and operating lease liabilities are disclosed as line in the consolidated balance sheets. We determine if a
contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the
present value of the future minimum lease payments at the commencement date. As our leases do not provide an implicit rate, we use our
incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments.
Lease agreements that have lease and non-lease components, are accounted for as a single lease component. Lease expense is recognized
on a straight-line basis over the lease term.

The
Company has two operating lease obligations for the Company’s office facilities located at Suite 201, 42 Edward Street Grand Cayman,
Cayman Islands, and its residential lease at Turnberry Villas in Grand Cayman, Cayman Islands. The office lease has a remaining lease
term of approximately twenty (20) months and includes an option to extend the lease. Under the terms of the lease, the Company also has
the right to terminate the lease after twenty four (24) months upon giving appropriate notice in writing to the Lessor. The residential
lease has a remaining lease term of approximately six (6) months.

The
components of lease expense and other lease information as of