Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 225

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 225
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 culminate in the placement of bound insurance coverage are also considered a single performance obligation. Kestrel considers these arrangements as a single revenue stream. Except for contractual arrangements with minimum annual fees, the effective date of bound insurance coverage is considered the point in time when Kestrel’s performance obligation is met. Control passes to the customer at the effective date of bound insurance coverage, at which point the customer has accepted the services. For contractual arrangements with minimum annual fees, Kestrel amortizes the minimum fee over the contract period. For the year ended December 31, 2024, Kestrel recognized approximately $234,000 related to minimum fees for two individual customers. All other revenue recognized for the years ended December 31, 2024 and 2023 related to the placement of insurance policies with program managers that were recognized when the insurance was considered binding. Salaries & wages. Expenses related to salaries & wages are for the employees on Kestrel’s payroll. These expenses declined approximately $123,000 for the year ended December 31, 2024 compared to the year ended December 31, 2023 due to certain non-recurring required incentive payments that were made in 2023. Kestrel anticipates adding to its employee headcount in support of its overall revenue and program growth. Professional fees. Kestrel receives professional and administrative services through a management and expense reimbursement arrangement with AmTrust North America Inc. that has common ownership and management with Kestrel. Kestrel incurred approximately $826,000 and $1,150,000 during the years ended December 31, 2024 and 2023, respectively, related to the agreement that governs Kestrel’s contractual arrangement with each of the AmTrust Insurance Companies. Legal expenses. Kestrel and certain of its officers and directors were subject to a lawsuit filed by a former employer of such persons in September 2022. This legal proceeding was fully and finally resolved pursuant to a final judgment and disposition entered in October 2022. Legal and related expenses were incurred through December 31, 2023 in connection with this proceeding and certain conditions of the resolution.

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Rent expenses. Kestrel’s principal executive offices are located at 8333 Douglas Avenue, Suite 1360, Dallas, Texas 75225, and its telephone number is (469) 423-2763. The Dallas office is leased through Kestrel’s wholly owned subsidiary, Kestrel Service Corporation, pursuant to