Company: KG
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028251
Chunk: 228

Company: Kestrel Group Ltd
Filing Date: 2025-03-26
Form: 424B3
Chunk 228
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 |        |   | ​ |
| Federal income taxes                       | ​ | ​ |    ​ | ​ | 21.0%  | ​ | ​ | ​ |    ​ | ​ | 21.0%  | ​ | ​ |
| State income taxes, net of federal benefit | ​ | ​ |    ​ | ​ | 4.0%   | ​ | ​ | ​ |    ​ | ​ | 0.0%   | ​ | ​ |
| Permanent differences                      | ​ | ​ |    ​ | ​ | 1.4%   | ​ | ​ | ​ |    ​ | ​ | -0.8%  | ​ | ​ |
| Valuation allowance for passthrough losses | ​ | ​ |    ​ | ​ | -17.9% | ​ | ​ | ​ |    ​ | ​ | -20.2% | ​ | ​ |
| Provision for income taxes                 | ​ | ​ |    ​ | ​ | 8.5%   | ​ | ​ | ​ |    ​ | ​ | 0.0%   | ​ | ​ |

Liquidity and Capital Resources Kestrel finances its operations through a combination of contributed equity and cash generated internally from operations. Kestrel believes that there will be access to debt capital in the near future as its business continues to scale. Kestrel will continue to evaluate all capital sources available to it in order to efficiently fund Kestrel’s anticipated growth. Kestrel currently has no debt outstanding. Kestrel considers all liquid investments with original maturities of three months or less to be cash equivalents. Kestrel does not consider uninvested cash held in investment accounts as cash or cash equivalents. As of December 31, 2024 and 2023, cash equivalents consisted primarily of money market accounts.

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TABLE OF CONTENTS

As of December 31, 2024 and 2023, Kestrel’s cash accounts exceeded federally insured limits by approximately $3,236,000 and $4,515,000 respectively. Cash Flow The following table sets forth certain cash flow information for each of the periods indicated:

| ​                                            | ​ | ​ | 2024 |   |            |   | ​ | ​ | 2023 |   |            |   | ​ |
| Net cash used in operating activities        | ​ | ​ |    ​ | ​ | -1,266,841 | ​ | ​ | ​ |    ​