Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 307

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 307
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 EpsilonCat Re
and DeltaCat Re Tokens). If we are not able to develop this business as planned, we may not be able to generate material revenues
from our developing tokenization business.

Developing
a Web3.0-focused business around the tokenization of RWAs involves significant risks.

Our
planned tokenization business activities are based on a new area of technology and carries significant risks, including the following:

    ●
    an active trading market for tokenized RWAs may not
    develop or be sustained;

    ●
    there is no guarantee that tokenized RWAs will hold
    their value or increase in value;

    ●
    tokenized RWAs of SurancePlus may not be listed on
    any securities exchange and may not be available to trade on any alternative trading system (“ATS”), which would result
    in limited liquidity for holders;

    ●
    if the tokenized RWAs become available for trading
    on an ATS, the number of securities traded on such ATS may be very small, making the market price more easily manipulated;

    ●
    technology on which an ATS relies for its operations
    may not function properly;

    ●
    blockchain networks are relatively new technologies;

    ●
    asset tokenization via blockchain technologies is a
    relatively new digital innovation;

    ●
    blockchain network transaction fees may significantly
    increase over the duration of the investment;

    ●
    smart contracts may have implementation errors that
    vitiate them;

    ●
    blockchain transactions may be taken advantage of for
    financial crimes; and

    ●
    the Avalanche blockchain the tokenized RWAs rely upon
    and the tokenized RWAs themselves may be the target of malicious cyberattacks.

13

Failure
to become rated by A.M. Best, or receipt of a negative rating, could significantly and negatively affect our ability to grow.

Companies,
insurers and reinsurance brokers use ratings from independent ratings agencies as an important means of assessing the financial strength
and quality of reinsurers. This rating reflects the rating agency’s opinion of our financial strength, operating performance and
ability to meet obligations. It is not an evaluation directed toward the protection of investors or a recommendation to buy, sell or
hold our securities. A.M. Best assigns ratings based on its analysis of balance sheet strength, operating performance and business profile.

Currently,
A.M Best has not assigned us a financial strength rating, and we do not intend to seek a rating in the foreseeable