Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 254

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 8
Chunk 254
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. If a loss is probable on the
unexpired portion of policies in force, a premium deficiency loss is recognized.

Offering
Expenses:

During
the year ended December 31, 2024 and 2023, the Company recognized in the consolidated statements of operations $167,000
and $236,000, respectively, of offering expenses in relation to the offering of EpsilonCat Re and DeltaCat Re participation shares, respectively,
issuable by the Company’s subsidiary, SurancePlus Inc. (See Note 6).

In
accordance with the terms of the equity distribution agreement with Maxim, we intend to offer and sell ordinary shares having an aggregate
offering price of up to $6.3 million from time to time. (See Note 9).

Property
and equipment: Property and equipment are recorded at cost when acquired. Property and equipment are comprised of motor vehicles,
furniture and fixtures, computer equipment and leasehold improvements and are depreciated, using the straight-line method, over their
estimated useful lives, which are five years for furniture and fixtures and computer equipment and four years for motor vehicles. Leasehold
improvements are amortized over the lesser of the estimated useful lives of the assets or remaining lease term. The Company periodically
reviews property and equipment that have finite lives, and that are not held for sale, for impairment by comparing the carrying value
of the assets to their estimated future undiscounted cash flows. For the years ended December 31, 2024 and 2023, there were no impairments
in property and equipment.

Reserves
for losses and loss adjustment expenses: The Company determines its reserves for losses and loss adjustment expenses, if any,
on the basis of the claims reported by the Company’s ceding insurers and for losses incurred but not reported (“IBNR”),
management uses the assistance of an independent actuary. The reserves for losses and loss adjustment expenses represent management’s
best estimate of the ultimate settlement costs of all losses and loss adjustment expenses. Management believes that the amounts are adequate;
however, the inherent impossibility of predicting future events with precision, results in uncertainty as to the amount which will ultimately
be required for the settlement of losses and loss expenses, and the differences could be material. Adjustments are reflected in the consolidated
statements of operations in the period in which they are determined.

Loss
experience refund payable: Certain contracts include retrospective provisions that adjust premiums or result in profit commissions
in the event losses are minimal or zero.