Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 113

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 14
Chunk 113
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 be sustained upon examination
by the relevant tax authority, including resolution of any related appeals or litigation processes, based on the technical merits of
the position. For income tax positions meeting the more likely than not threshold, the tax amount recognized in the consolidated financial
statements, if any, is reduced by the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate
settlement with the relevant taxing authority. The application of this authoritative guidance has had no effect on the Company’s
consolidated financial statements because the Company had no uncertain tax positions at December 31, 2024.

Loss
Per Share: Basic loss per share has been computed on the basis of the weighted-average number of ordinary shares outstanding
during the years presented. Diluted loss per share is computed based on the weighted-average number of ordinary shares outstanding and
reflects the assumed exercise or conversion of diluted securities, such as stock options and warrants, computed using the treasury stock
method.

Share-Based
Compensation: The Company accounts for share-based compensation under the fair value recognition provisions of GAAP which requires
the measurement and recognition of compensation for all stock-based awards made to employees and directors, including stock options and
restricted stock issuances based on estimated fair values. The Company measures compensation for restricted stock based on the price
of the Company’s ordinary shares at the grant date. Determining the fair value of stock options at the grant date requires significant
estimation and judgment. The Company uses an option-pricing model (Black-Scholes option pricing model) to assist in the calculation of
fair value for stock options. When estimating the expected volatility, the Company takes into consideration the historical volatility
of entities similar to itself. The Company considers factors such as an entity’s industry, stage of life cycle, size and financial
leverage when selecting similar entities. The Company may use a sample peer group of companies in the reinsurance industry and/or the
Company’s own historical volatility in determining the expected volatility

    F-10

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES 

Notes
to Consolidated Financial Statements, Continued

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Additionally,
the Company uses the guidance in the SEC’s Staff Accounting Bulletin No. 107 to determine the estimated life of options issued
and has assumed no forfeitures during the life of the options.

The
Company uses the straight-line attribution method for all grants that include only a service condition. Compensation expense