Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 16

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 12
Chunk 16
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 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
in property and equipment.

Reserves
for losses and loss adjustment expenses: The Company determines its reserves for losses and loss adjustment expenses, if any,
on the basis of the claims reported by the Company’s ceding insurers and for losses incurred but not reported (“IBNR”),
management uses the assistance of an independent actuary. The reserves for losses and loss adjustment expenses represent management’s
best estimate of the ultimate settlement costs of all losses and loss adjustment expenses. Management believes that the amounts are adequate;
however, the inherent impossibility of predicting future events with precision, results in uncertainty as to the amount which will ultimately
be required for the settlement of losses and loss expenses, and the differences could be material. Adjustments are reflected in the consolidated
statements of operations in the period in which they are determined.

Loss
experience refund payable: Certain contracts include retrospective provisions that adjust premiums or result in profit commissions
in the event losses are minimal or zero. In accordance with GAAP, the Company will recognize a liability in the period in which the absence
of loss experience obligates the Company to pay cash or other consideration under the contracts. On the contrary, the Company will derecognize
such liability in the period in which a loss experience arises. Such adjustments to the liability, which accrue throughout the contract
terms, will reduce the liability should a catastrophic loss event covered by