Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 1034

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 7
Chunk 1034
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 circumstances to make these estimates. Although considerable variability
is likely to be inherent in these estimates, management believes that the amounts provided are reasonable. These estimates are continually
reviewed and adjusted if necessary. Such adjustments are reflected in current operations.

    F-7

OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES 

Notes
to Consolidated Financial Statements, Continued

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue
Recognition

SurancePlus
incentive, technology, origination and management (“ITOM”) fee income represents fee income related to the completion of
the SurancePlus’ CatRe tokenized reinsurance securities as well as placement of the underlying insurance policies. The Company
recognizes the associated revenue at the time of the placement of the underlying insurance policies as the performance obligation is
satisfied at that time.

Cash
and cash equivalents: Cash and cash equivalents are comprised of cash and short- term investments with original maturities of
three months or less.

Restricted
cash and cash equivalents: Restricted cash and cash equivalents represent funds held in accordance with the Company’s trust
agreements with ceding insurers and trustees, which requires the Company to maintain collateral with a market value greater than or equal
to the limit of liability, less unpaid premium.

Investments:
The Company from time to time invests in fixed-maturity securities and equity securities, and for which its fixed-maturity securities
are classified as available-for-sale. The Company’s available for sale fixed-maturity investments are carried at fair value with
changes in fair value included as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity.
For the Company’s investment in equity securities, and for the Company’s investment in Jet.AI. classified as “other
investments”, the changes in fair value are recorded within the consolidated statements of operations. At December 31, 2024 and
2023, the Company did not own any fixed maturity debt securities.

Unrealized
gains or losses are determined by comparing the fair market value of the securities with their cost or amortized cost. Realized gains
and losses on investments are recorded on the trade date and are included in the consolidated statements of operations. The cost of securities
sold is based on the specified identification method. Investment income is recognized as earned and discounts or premiums arising from
the purchase of debt securities are recognized in investment income using the interest method over the remaining term of the security.

Non-controlling