Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 157

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 15
Chunk 157
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 the Company’s investment custodians and management. The investment custodians
consider observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not
proprietary, and provided by independent sources that are actively involved in the relevant markets.

    F-8

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES 

Notes
to Consolidated Financial Statements, Continued

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Deferred
policy acquisition costs (“DAC”): Policy acquisition costs consist of brokerage fees, federal excise taxes and other
costs related directly to the successful acquisition of new or renewal insurance contracts and are deferred and amortized over the terms
of the reinsurance agreements to which they relate. The Company evaluates the recoverability of DAC by determining if the sum of future
earned premiums and anticipated investment income is greater than the expected future claims and expenses. 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