Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 302

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 302
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 not provide an implicit rate, the Company uses its incremental borrowing rate in determining the present value of lease payments. The Company has made a policy election to use a risk-free rate (the rate of a zero-coupon U.S. Treasury instrument) for the initial and subsequent measurement of all lease liabilities. The risk-free rate is determined using a period comparable with the lease term. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company accounts for lease and non-lease components separately. The lease components consist of its office building, and non-lease components consist of common area and other maintenance costs and are expensed in the period incurred. Lease Summary The Company is party to one lease for a corporate office that expires in 2027. Lease payments have an escalating fee schedule, which range from 3% to 4% each year. Termination of the leases is generally prohibited unless there is a violation under the lease agreement. Lease cost recognized on a straight-line basis was $78,992 for the years ended December 31, 2024 and 2023. Other required information for the years ended December 31, 2024 and 2023 are as follows:

| ​                                                | ​ | ​ | 2024 |   |        |   | ​ | ​ | 2023 |   |        |   | ​ |
| Other information related to operating lease:    | ​ | ​ |    ​ | ​ |      ​ | ​ | ​ | ​ |    ​ | ​ |      ​ | ​ | ​ |
| Operating cash flows from operating lease        | ​ | ​ |    ​ | ​ | 80,006 | ​ | ​ | ​ |    ​ | ​ | 77,070 | ​ | ​ |
| Weighted-average remaining lease term (in years) | ​ | ​ |    ​ | ​ |   2.92 | ​ | ​ | ​ |    ​ | ​ |   3.92 | ​ | ​ |
| Weighted-average discount rate                   | ​ | ​ |    ​ | ​ |   3.9% | ​ | ​ | ​ |    ​ | ​ |   3.9% | ​ | ​ |

Future minimum lease payments and reconciliation to the consolidated balance sheets as of December 31, 2024 are as follows:

| ​ |                              2025 | ​