Company: OXBRW
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000736
Chunk: 424

Company: OXBRIDGE RE HOLDINGS Ltd
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 424
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 and current registration statement. We have not maintained a current registration statement
relating to the sale of the shares of common stock underlying the warrants. As a result, you would be unable to exercise the warrants
in a cash exercise and will be required to engage in a cashless exercise in which a number of warrant shares equal to the fair market
value of the exercised shares will be withheld. In those circumstances, we may, but are not required to, redeem the warrants by payment
in cash. Consequently, there is a possibility that you will never be able to exercise the warrants and receive the underlying ordinary
shares. This potential inability to exercise the warrants in a cash exercise, our right to cancel the warrants under certain circumstances,
and the possibility that we may redeem the warrants for nominal value, may have an adverse effect on demand for the warrants and the
prices that can be obtained from reselling them.

Risks
Relating to Taxation

We
may become subject to taxation in the Cayman Islands which would negatively affect our results.

Under
current Cayman Islands law, we are not obligated to pay any taxes in the Cayman Islands on either income or capital gains. The Governor-in-Cabinet
of Cayman Islands has granted us an exemption from the imposition of any such tax on us for twenty years from April 23, 2013. We cannot
be assured that after such date we would not be subject to any such tax. If we were to become subject to taxation in the Cayman Islands,
our financial condition and results of operations could be significantly and negatively affected.

We
may be subject to United States federal income taxation.

We
are incorporated under the laws of the Cayman Islands and intend to operate in a manner that will not cause us to be treated as engaging
in a United States trade or business and will not cause us to be subject to current United States federal income taxation on our income.
However, because there are no definitive standards provided by the Internal Revenue Code of 1986, as amended (the “Code”),
regulations or court decisions as to the specific activities that constitute being engaged in the conduct of a trade or business within
the United States, and as any such determination is essentially factual in nature, we cannot assure you that the United States Internal
Revenue Service, or the IRS, will not successfully assert that we are engaged in a trade or business in the United States and thus are
subject to current United States federal income taxation.

23

We
may be treated as a