Financial Data and Key Metrics Changes - Net premiums earned for the year ended December 31, 2023 increased to $1.255 million from $995,000 in the prior year due to higher rates on reinsurance contracts [16] - Net investment and other income rose to $303,000 in 2023, primarily due to higher rates on money market funds [17] - The company recorded a net loss of $9.9 million, or $1.69 per share in 2023, compared to a net loss of $1.8 million, or $0.31 per share in 2022 [19] - Total revenues were negative $7.05 million in 2023 compared to $850,000 in the prior year [17] Business Line Data and Key Metrics Changes - The loss ratio decreased to 0% for the year ending December 31, 2023, compared to 107.8% in the prior year, due to limit losses suffered on two reinsurance contracts as a result of Hurricane Ian [20] - The acquisition cost ratio increased marginally to 11.2% for the year ended December 31, 2023, compared with 11.1% in the prior year [20] - The expense ratio increased to 185.2% for the year ended December 31, 2023, from 153.1% for the prior year due to higher general and admin expenses [21] - The combined ratio decreased to 185.2% for the year ended December 31, 2023, from 260.9% for the prior year, reflecting no underwriting losses in 2023 [22] Market Data and Key Metrics Changes - The investment portfolio increased to $680,000 at December 31, 2023, from $642,000 at the prior year end, primarily due to unrealized gains from improved global capital markets [23] - Cash and cash equivalents decreased to $3.7 million at December 31, 2023, compared to $3.9 million at December 31, 2022 [23] Company Strategy and Development Direction - The company aims to achieve long-term growth and book value per share by selectively writing business that generates attractive underwriting profits [9] - Oxbridge has diversified its business by establishing SurancePlus Inc., focusing on Web3 technology and tokenized real-world assets [12] - The company is rebranding as a prominent player in the RWA Web3 sector, anticipating significant growth in the tokenized asset market [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the long-term outlook of the core reinsurance business alongside the integration of new ventures like Jet.AI and SurancePlus [14] - The company is enthusiastic about the anticipated value of its investments and the benefits they offer to shareholders [28] Other Important Information - The establishment of SurancePlus was achieved without incurring new debt or diluting equity, reflecting an efficient approach to diversification [13] - The company successfully completed a business combination with Jet.AI in August 2023, enhancing its risk profile and positioning for growth in emerging technologies [27] Summary of Q&A Session - The Q&A session concluded without any recorded questions or answers, indicating a lack of participant inquiries during this segment [31]

Executive Summary & Business Highlights Operational milestones include pioneering tokenized reinsurance securities and establishing a Web3 subsidiary for RWA tokenization growth [CEO's Strategic Vision & Operational Achievements](index=1&type=section&id=CEO's%20Strategic%20Vision%20%26%20Operational%20Achievements) The CEO highlighted SurancePlus's inaugural Tokenized Reinsurance Securities and SurancePlus Inc.'s establishment, with 2023 Delta CatRe token investors expecting over 45% returns - **SurancePlus** issued the inaugural **Tokenized Reinsurance Securities** sponsored by a publicly-traded company[3](index=3&type=chunk) - **SurancePlus Inc.**, a new Web3-focused division, was established as a wholly-owned subsidiary without debt or shareholder dilution[3](index=3&type=chunk) - Investors in 2023 Delta CatRe tokens are expected to realize returns exceeding **45%**, surpassing initial expectations of **42%**[6](index=6&type=chunk) [RWA Tokenization & SurancePlus Inc. Developments](index=1&type=section&id=RWA%20Tokenization%20%26%20SurancePlus%20Inc.%20Developments) Oxbridge Re is actively venturing into Real-World Asset (RWA) tokenization via SurancePlus Inc., aiming for substantial growth as a premier RWA Web3-focused entity - The company is enthusiastic about **RWA tokenization**, positioning **SurancePlus** for substantial growth as a premier Web3-focused entity[4](index=4&type=chunk) - **Blackrock's** intention to tokenize **$10 trillion** of assets reinforces Oxbridge Re's RWA market strategy[5](index=5&type=chunk) - The company considers itself a pioneer in the **RWA market**, energized by its repositioning and expansion into new business lines[5](index=5&type=chunk) Financial Performance Analysis The company's financial performance in 2023 was marked by increased net premiums earned but a significant net loss, primarily due to investment fluctuations and SurancePlus launch expenses [Net Premiums Earned](index=1&type=section&id=Net%20Premiums%20Earned) Net premiums earned significantly increased for both Q4 and full year 2023, driven by higher rates on reinsurance contracts | Metric | 3 Months Ended Dec 31, 2023 | 3 Months Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :------------------ | :-------------------------- | :-------------------------- | :---------------------- | :---------------------- | | Net Premiums Earned | $523,000 | $nil | $1,255,000 | $995,000 | - Increases in net premiums earned are due to **higher rates on reinsurance contracts** in force during Q4 and full year 2023[7](index=7&type=chunk) [Net Loss and EPS](index=1&type=section&id=Net%20Loss%20and%20EPS) The company reported a significant net loss for both Q4 and full year 2023, contrasting with Q4 2022 net income and an increased full year net loss | Metric | 3 Months Ended Dec 31, 2023 | 3 Months Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :-------------------- | :-------------------------- | :-------------------------- | :---------------------- | :---------------------- | | Net Loss | $(2.67) million | $678,000 | $(9.9) million | $(1.8) million | | Basic and Diluted EPS | $(0.46) | $0.12 | $(1.69) | $(0.31) | [Factors Affecting Financial Results](index=1&type=section&id=Factors%20Affecting%20Financial%20Results) Decreased financial results for 2023 were primarily due to fair market value fluctuations of the Jet.AI investment and increased SurancePlus launch expenses - The decrease in financial results for Q4 and full year 2023 is mainly attributed to **fluctuations in the fair market value of the Company's equity investment in Jet.AI**[9](index=9&type=chunk) - Slight increases in **general expenses** incurred during the **launch of SurancePlus** throughout 2023 also contributed to decreased financial results[9](index=9&type=chunk) [Total Expenses](index=2&type=section&id=Total%20Expenses) Total expenses increased for Q4 2023 due to deferred offering costs but decreased for the full year, primarily from lower loss and loss adjustment expenses | Metric | 3 Months Ended Dec 31, 2023 | 3 Months Ended Dec 31, 2022 | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :----------- | :-------------------------- | :-------------------------- | :---------------------- | :---------------------- | | Total Expenses | $536,000 | $363,000 | $2.3 million | $2.6 million | - The increase in total expenses for **Q4 2023** was due to the recognition of previously **deferred offering costs**[10](index=10&type=chunk) - The decrease in total expenses for **full year 2023** was due to lower **loss and loss adjustment expenses** (no Hurricane Ian losses), offsetting increased general and administration expenses[11](index=11&type=chunk) Financial Position The company's financial position at year-end 2023 showed a slight decrease in cash and cash equivalents [Cash and Cash Equivalents](index=2&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents, including restricted cash, slightly decreased at year-end 2023 compared to 2022 | Metric | At December 31, 2023 | At December 31, 2022 | | :---------------------------------------------------- | :------------------- | :------------------- | | Cash and cash equivalents, and restricted cash and cash equivalents | $3.7 million | $3.9 million | Key Financial Ratios Key financial ratios for 2023 reflect improved underwriting profitability with a significantly lower loss ratio, despite an increased expense ratio [Loss Ratio](index=2&type=section&id=Loss%20Ratio) The loss ratio significantly decreased to **0.0%** for 2023 from **107.8%** in 2022, indicating improved underwriting profitability due to no significant losses | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--------- | :---------------------- | :---------------------- | | Loss Ratio | 0.0% | 107.8% | - The decrease in loss ratio was due to **no limit losses** on reinsurance contracts in 2023, unlike losses from Hurricane Ian in the prior year[13](index=13&type=chunk) [Acquisition Cost Ratio](index=2&type=section&id=Acquisition%20Cost%20Ratio) The acquisition cost ratio marginally increased to **11.2%** for 2023, reflecting a slight change in operational efficiency | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :------------------ | :---------------------- | :---------------------- | | Acquisition Cost Ratio | 11.2% | 11.1% | [Expense Ratio](index=2&type=section&id=Expense%20Ratio) The expense ratio increased to **185.2%** for 2023, primarily due to higher general and administrative expenses from Form S-3 registration and SurancePlus Inc. launch | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :---------- | :---------------------- | :---------------------- | | Expense Ratio | 185.2% | 153.1% | - The increase in expense ratio was due to higher **general and administrative expenses** in 2023, primarily from deferred expenses related to **Form S-3 registration** and the **SurancePlus Inc. private placement offering** launch[15](index=15&type=chunk) [Combined Ratio](index=2&type=section&id=Combined%20Ratio) The combined ratio significantly decreased to **185.2%** for 2023, primarily driven by the lower loss ratio due to the absence of underwriting losses | Metric | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :----------- | :---------------------- | :---------------------- | | Combined Ratio | 185.2% | 260.9% | - The decrease in the combined ratio is due to the decrease in the **loss ratio** during 2023, resulting from **no underwriting losses** compared to 2022 (Hurricane Ian)[16](index=16&type=chunk) Consolidated Financial Statements The consolidated financial statements for 2023 show a significant decrease in total assets and shareholders' equity, alongside an increased net loss, primarily due to unrealized investment losses [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet shows total assets decreased from **$16.616 million** in 2022 to **$8.253 million** in 2023, driven by reduced "Other Investments," with increased liabilities and decreased shareholders' equity | Balance Sheet Item | At December 31, 2023 | At December 31, 2022 | | :-------------------------------------- | :------------------- | :------------------- | | Total Assets | $8.253 million | $16.616 million | | Total Liabilities | $2.921 million | $1.627 million | | Total Shareholders' Equity | $5.332 million | $14.989 million | | Other Investments | $2.478 million | $11.423 million | | Notes payable to DeltaCat Re Token Holders | $1.523 million | - | | Reserve for losses and loss adjustment expenses | - | $1.073 million | | Unearned premiums reserve | $915 thousand | - | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements show increased net premiums earned for 2023, but total revenue turned negative due to substantial unrealized investment losses, leading to a higher net loss | Income Statement Item | Year Ended Dec 31, 2

[Part I](index=5&type=section&id=PART%20I) [Business Overview](index=5&type=section&id=ITEM%201.%20BUSINESS) Oxbridge Re provides fully collateralized property and casualty reinsurance in the U.S. Gulf Coast, expanding into Web3 tokenized reinsurance securities in 2023 - The company's core business is providing fully collateralized property and casualty reinsurance, specializing in **medium frequency, high severity risks**, primarily for insurers in the U.S. Gulf Coast, with an emphasis on Florida[16](index=16&type=chunk) - In 2023, the company launched SurancePlus Inc. to issue **DeltaCat Re Tokens**, representing fractionalized reinsurance interests, with plans to tokenize other real-world assets[17](index=17&type=chunk) - The business strategy emphasizes disciplined underwriting, risk management, opportunistic capital deployment, and developing new **Web3-focused business offerings** leveraging tokenization experience[34](index=34&type=chunk)[39](index=39&type=chunk) - Oxbridge Reinsurance Limited and Oxbridge Re NS, the company's reinsurance subsidiaries, are licensed and regulated by the **Cayman Islands Monetary Authority (CIMA)**, adhering to its capital and solvency requirements[84](index=84&type=chunk)[85](index=85&type=chunk) - The company competes with major, well-established reinsurers including **Renaissance Re, Berkshire Hathaway, PartnerRe Ltd, Aeolus, and Nephila**[75](index=75&type=chunk)[76](index=76&type=chunk) [Risk Factors](index=18&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant business, regulatory, and tax risks, including uncertainties from its new Web3 tokenization venture, vulnerability to catastrophic events, and potential adverse U.S. tax classifications - The new **Web3-focused RWA tokenization business** is early-stage, facing risks like undeveloped trading markets, technological failures, and cyberattacks[98](index=98&type=chunk)[99](index=99&type=chunk)[102](index=102&type=chunk) - As a property catastrophe reinsurer focused on Florida, the company is highly vulnerable to unpredictable **catastrophic events like hurricanes**, which could cause substantial financial volatility[114](index=114&type=chunk) - Significant investment in **Jet.AI Inc.** is recorded at fair value, and its fluctuations could cause income statement volatility, negatively impacting earnings and shareholders' equity[125](index=125&type=chunk) - Reinsurance subsidiaries are subject to **CIMA's minimum capital and surplus requirements**, with non-compliance potentially leading to regulatory actions and business restrictions[136](index=136&type=chunk) - U.S. holders of ordinary shares face potential adverse tax consequences if the company is treated as a **Passive Foreign Investment Company (PFIC)** or a **Controlled Foreign Corporation (CFC)**[161](index=161&type=chunk)[164](index=164&type=chunk) [Unresolved Staff Comments](index=33&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company has no unresolved written comments from the Securities and Exchange Commission (SEC) staff regarding its periodic or current reports - The Company has no unresolved written comments from the staff of the **SEC**[177](index=177&type=chunk) [Cybersecurity](index=33&type=section&id=ITEM%201C.%20CYBERSECURITY) The Board oversees cybersecurity governance, managed by the CIO, with an ERM program and CIRT in place to mitigate risks, which have not materially affected the company to date - The Board of Directors oversees cybersecurity, receiving annual updates from the **Chief Information Officer (CIO)**, who manages the IT program[178](index=178&type=chunk) - A formal **Cybersecurity Incident Response Team (CIRT)**, including the CIO, CEO, CFO, and outside legal counsel, responds to incidents via a documented framework[180](index=180&type=chunk) - The company uses an **Enterprise Risk Management (ERM) program** to assess cybersecurity risks, implementing controls based on industry standards like COBIT and NIST Cybersecurity Framework[182](index=182&type=chunk) [Properties](index=34&type=section&id=ITEM%202.%20PROPERTIES) The company leases adequate office space in Georgetown, Grand Cayman, with the current lease expiring in February 2027 - The company leases office space in **Georgetown, Grand Cayman**, with the lease expiring in **February 2027**[186](index=186&type=chunk) [Legal Proceedings](index=34&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company is not currently involved in any litigation or arbitration but anticipates ordinary course legal proceedings consistent with the industry - The company is not currently involved in any litigation or arbitration[187](index=187&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company's business operations - Not applicable[188](index=188&type=chunk) [Part II](index=34&type=section&id=PART%20II) [Market for Common Equity and Related Matters](index=34&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20SHAREHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's shares and warrants trade on NASDAQ, with no dividends paid in 2023 or 2022 due to regulatory constraints on reinsurance subsidiaries' minimum net worth - The Company's ordinary shares and warrants trade on **The NASDAQ Capital Market** under symbols **"OXBR"** and **"OXBRW"**[189](index=189&type=chunk) - As of March 26, 2024, there were **13 holders of record** of the company's ordinary shares[190](index=190&type=chunk) - No dividends were paid in **2023 or 2022**, and future payments are not intended due to Cayman Islands regulations requiring reinsurance subsidiaries to maintain a minimum net worth[191](index=191&type=chunk)[192](index=192&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=35&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In 2023, the company's net loss widened to **$9.9 million** due to an **$8.9 million unrealized loss** on its Jet.AI investment, despite increased net premiums earned and zero loss expenses [Results of Operations](index=40&type=section&id=Results%20of%20Operations) In 2023, net loss widened to **$9.9 million** primarily due to an **$8.9 million unrealized loss** on Jet.AI, despite increased net premiums earned and zero loss expenses, improving the combined ratio to **185.2%** Financial Performance Summary (2023 vs. 2022) (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Premiums Earned | $1,255 | $995 | | Unrealized Loss on Other Investments | ($8,945) | ($35) | | Total Revenue | ($7,049) | $850 | | Losses and Loss Adjustment Expenses | $0 | $1,073 | | General and Administrative Expenses | $2,183 | $1,413 | | **Net Loss** | **($9,915)** | **($1,789)** | | **Loss per Share (Basic & Diluted)** | **($1.69)** | **($0.31)** | | Loss Ratio | 0.0% | 107.8% | | Combined Ratio | 185.2% | 260.9% | - The significant increase in net loss was primarily due to an **$8.9 million unrealized loss** on the company's investment in Jet.AI and higher general and administrative expenses related to the SurancePlus launch[230](index=230&type=chunk) - Losses incurred decreased to **$0 in 2023** from **$1.07 million in 2022**, as the prior year included a limit loss on two reinsurance contracts due to Hurricane Ian[232](index=232&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=41&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) As of December 31, 2023, total assets decreased to **$8.3 million** from **$16.6 million**, primarily due to a **$8.9 million decrease** in Jet.AI investment fair value, while the loss reserve was reduced to zero - Other investments decreased from **$11.4 million in 2022** to **$2.5 million in 2023** due to fair value changes of the company's equity investment in Jet.AI[243](index=243&type=chunk) - The reserve for loss and loss adjustment expenses decreased to **$0** from **$1.1 million** at year-end 2022, following Hurricane Ian claim payments and no new major loss events in 2023[244](index=244&type=chunk) - Oxbridge Reinsurance Limited and Oxbridge Re NS are subject to a **$500,000 minimum net worth requirement** by Cayman Islands regulators, which both subsidiaries exceeded as of December 31, 2023[250](index=250&type=chunk) - In 2023, net cash used in operating activities was **$1.26 million**, while net cash provided by financing activities was **$1.18 million**, primarily from DeltaCat Re Tokens issuance proceeds[252](index=252&type=chunk) [Critical Accounting Policies](index=43&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies involve significant estimates, including fair value measurement for investments like Jet.AI using a three-level hierarchy, reserves for losses based on reported claims and IBNR, and pro-rata premium revenue recognition - Fair value measurement is a critical policy, utilizing a **three-level hierarchy (Level 1, 2, 3)** for valuation inputs, particularly relevant for the Jet.AI investment[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk) - Reserves for losses and loss adjustment expenses are management's best estimate based on reported claims and IBNR, with GAAP prohibiting future catastrophic event reserves until occurrence[263](index=263&type=chunk)[265](index=265&type=chunk) - Deferred acquisition costs, including brokerage fees and premium taxes, are capitalized and amortized over the reinsurance contract term as premiums are earned[268](index=268&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is not required to provide this information as it qualifies as a smaller reporting company under SEC rules - As a **smaller reporting company**, the company is not required to provide the information under this item[269](index=269&type=chunk) [Financial Statements and Supplementary Data](index=45&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) The company's audited consolidated financial statements and supplementary data are included in this Annual Report, beginning on page 50 - The financial statements and supplementary data are filed as part of this Annual Report on Form 10-K, beginning on **page 50**[270](index=270&type=chunk) [Changes in and Disagreements with Accountants](index=45&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants regarding accounting principles, financial disclosure, or auditing scope - None[271](index=271&type=chunk) [Controls and Procedures](index=45&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) As of December 31, 2023, management concluded that disclosure controls and internal control over financial reporting were effective, with no material changes during the fourth quarter - Management concluded that the company's disclosure controls and procedures were effective as of **December 31, 2023**[273](index=273&type=chunk) - Based on a **COSO framework** evaluation, management concluded that internal control over financial reporting was effective as of **December 31, 2023**[277](index=277&type=chunk) - No material changes in internal control over financial reporting occurred during the **fourth quarter of 2023**[280](index=280&type=chunk) [Other Information](index=46&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the fiscal quarter ended December 31, 2023 - No directors or executive officers adopted, modified, or terminated a **Rule 10b5-1 trading arrangement** during the fiscal quarter ended **December 31, 2023**[281](index=281&type=chunk) [Part III](index=46&type=section&id=PART%20III) Information for Part III, including directors, executive compensation, and security ownership, is incorporated by reference from the company's definitive 2024 proxy statement [Directors, Executive Officers and Corporate Governance](index=46&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Required information is incorporated by reference from the 2024 proxy statement, and the company has adopted a code of ethics available on its website - Information required by this item is incorporated by reference from the definitive proxy statement for the **2024 Annual Meeting of Shareholders**[283](index=283&type=chunk) [Executive Compensation](index=46&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Required executive compensation information is incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the definitive proxy statement for the **2024 Annual Meeting of Shareholders**[285](index=285&type=chunk) [Security Ownership and Related Matters](index=46&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20SHAREHOLDER%20MATTERS) Required security ownership information is incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the definitive proxy statement for the **2024 Annual Meeting of Shareholders**[286](index=286&type=chunk) [Certain Relationships, Related Transactions, and Director Independence](index=47&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Required information on related transactions and director independence is incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the definitive proxy statement for the **2024 Annual Meeting of Shareholders**[287](index=287&type=chunk) [Principal Accounting Fees and Services](index=47&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Required information on principal accounting fees and services is incorporated by reference from the company's definitive 2024 proxy statement - Information required by this item is incorporated by reference from the definitive proxy statement for the **2024 Annual Meeting of Shareholders**[288](index=288&type=chunk) [Part IV](index=47&type=section&id=PART%20IV) [Exhibits, Financial Statement Schedules](index=47&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists documents filed as part of the Form 10-K, including Consolidated Financial Statements, schedules, and various exhibits - The Consolidated Financial Statements, other financial information, and financial statement schedules are filed as part of this Annual Report[289](index=289&type=chunk) [Financial Statements](index=50&type=section&id=Financial%20Statements) [Consolidated Financial Statements](index=52&type=section&id=Consolidated%20Financial%20Statements) Audited consolidated financial statements for 2023 show total assets decreased to **$8.3 million** and shareholders' equity to **$5.3 million**, driven by a **$9.9 million net loss** primarily from an **$8.9 million unrealized investment loss** Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $8,253 | $16,616 | | Total Liabilities | $2,921 | $1,627 | | Total Shareholders' Equity | $5,332 | $14,989 | Consolidated Statement of Operations Highlights (in thousands) | Account | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net Premiums Earned | $1,255 | $995 | | Unrealized Loss on Other Investments | ($8,945) | ($35) | | Losses and Loss Adjustment Expenses | $0 | $1,073 | | **Net Loss** | **($9,915)** | **($1,789)** | - Net cash used in operating activities was **$1.26 million in 2023**, while net cash provided by financing activities was **$1.18 million**, primarily from DeltaCat Re tokens issuance[313](index=313&type=chunk) [Notes to Consolidated Financial Statements](index=58&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the **$8.9 million unrealized loss** on Jet.AI investment reclassified to Level 1, SurancePlus's **$2.45 million DeltaCat Re token offering**, zero loss reserves at year-end 2023, and related party reinsurance transactions - The Jet.AI investment re-measurement resulted in an **$8.945 million unrealized loss** for 2023 and was reclassified from Level 3 to Level 1 in the fair value hierarchy after its public listing[356](index=356&type=chunk)[362](index=362&type=chunk) - SurancePlus completed its private placement of **DeltaCat Re Tokens**, raising **$2.45 million** in gross proceeds, with approximately **$1.28 million** from third-party investors[379](index=379&type=chunk) - The reserve for losses and loss adjustment expenses was **$0 at December 31, 2023**, down from **$1.073 million at year-end 2022**, due to prior year claim payments and no new losses[384](index=384&type=chunk) - In 2023, the company entered a reinsurance agreement with **TypTap Insurance Company**, a related entity, resulting in **$1.099 million** in assumed premiums for the year[442](index=442&type=chunk) - On **January 29, 2024**, the company extended the expiration date of its publicly traded warrants (**OXBRW**) from **March 26, 2024, to March 26, 2029**[410](index=410&type=chunk)

Oxbridge Re Holdings Limited (NASDAQ:OXBR) Q3 2023 Results Conference Call November 14, 2023 4:30 PM ET Company Participants Jay Madhu - Chairman, President and CEO Wrendon Timothy - CFO and Corporate Secretary Conference Call Participants Kent Engelke - Capitol Securities Management Operator Good afternoon. Welcome to Oxbridge Re's Third Quarter 2023 Earnings Call. My name is David, and I'll be your conference operator this afternoon. [Operator Instructions] Joining us for today's presentation is Oxbridge ...

PART I – FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial position significantly deteriorated in 2023, marked by decreased assets, halved equity, and increased net losses [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets and shareholders' equity significantly declined by September 30, 2023, primarily due to reduced 'Other Investments' Consolidated Balance Sheet Summary (in thousands of U.S. Dollars) | Account | At September 30, 2023 (Unaudited) | At December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$11,197** | **$16,616** | | Other Investments | $5,039 | $11,423 | | Cash and cash equivalents | $1,801 | $1,207 | | Restricted cash and cash equivalents | $1,848 | $2,721 | | **Total Liabilities** | **$3,249** | **$1,627** | | **Total Shareholders' Equity** | **$7,948** | **$14,989** | - The primary driver for the decrease in total assets was the significant reduction in the fair value of 'Other Investments', which fell by over **$6.3 million**[13](index=13&type=chunk) - Shareholders' equity decreased by approximately **47%**, from **$15.0 million** to **$7.9 million**, largely due to the accumulated deficit increasing from **($17.5 million)** to **($24.7 million)**[13](index=13&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a significantly increased net loss for the first nine months of 2023, primarily due to unrealized investment losses Consolidated Statements of Operations Summary (in thousands of U.S. Dollars) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net premiums earned | $732 | $995 | | Unrealized loss on other investments | ($6,384) | ($986) | | **Total Revenue** | **($5,144)** | **($191)** | | Losses and loss adjustment expenses | $0 | $1,073 | | General and administrative expenses | $1,708 | $1,050 | | **Total Expenses** | **$1,788** | **$2,233** | | **Net Loss** | **($7,243)** | **($2,467)** | | **Loss per Share (Basic and Diluted)** | **($1.23)** | **($0.43)** | - The significant increase in net loss for the nine-month period was driven by a **$6.38 million** unrealized loss on other investments, which turned total revenue negative[16](index=16&type=chunk) - The company incurred no losses and loss adjustment expenses in the first nine months of 2023, compared to over **$1 million** in the same period of 2022, which was related to Hurricane Ian[16](index=16&type=chunk)[180](index=180&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased, while financing activities provided cash, leading to an overall decrease in cash and equivalents Cash Flow Summary (Nine Months Ended, in thousands of U.S. Dollars) | Cash Flow Activity | September 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,356) | ($682) | | Net cash used in investing activities | ($105) | ($376) | | Net cash provided by financing activities | $1,182 | $0 | | **Net change in cash** | **($279)** | **($1,058)** | | **Cash at end of period** | **$3,649** | **$4,360** | - Financing activities in 2023 were driven by **$1.28 million** in gross proceeds from the issuance of Delta Cat Re tokens, partially offset by a **$98,000** redemption of notes payable[18](index=18&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity decreased substantially due to a net loss, increasing the accumulated deficit by September 30, 2023 Shareholders' Equity Movement (in thousands of U.S. Dollars) | Description | Amount | | :--- | :--- | | Balance at December 31, 2022 | $14,989 | | Net loss for the nine months ended Sep 30, 2023 | ($7,243) | | Stock-based compensation | $202 | | **Balance at September 30, 2023** | **$7,948** | [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail the company's structure, accounting policies, and key financial components, including the significant investment in Jet.AI and tokenized reinsurance - The company operates as a single business segment, providing reinsurance solutions through its subsidiaries and tokenized securities through its new Web3-focused subsidiary, SurancePlus[26](index=26&type=chunk) - The company's investment in Jet.AI is classified as 'Other Investments' and measured at fair value (Level 3), resulting in a significant unrealized loss of **$6.38 million** for the nine months ended September 30, 2023[75](index=75&type=chunk)[76](index=76&type=chunk) - The subsidiary SurancePlus Inc. completed a private placement of DeltaCat Re tokenized reinsurance securities, raising aggregate gross proceeds of **$2.45 million**, with proceeds used to invest in collateralized reinsurance contracts[94](index=94&type=chunk) - The company entered into a reinsurance agreement with TypTap Insurance Company, a related party, which accounted for significant portions of premiums receivable and unearned premiums as of September 30, 2023[135](index=135&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the increased net loss to unrealized investment losses in Jet.AI, while highlighting new tokenized reinsurance ventures - The net loss for Q3 2023 was **$7.3 million**, a substantial increase from a **$2.16 million** loss in Q3 2022, primarily due to unrealized losses on the company's investment in Jet.AI[176](index=176&type=chunk) - The company's business focus includes traditional fully collateralized reinsurance for property catastrophes and a new initiative in tokenized Real World Assets (RWA) through its Web3 subsidiary, SurancePlus Inc[144](index=144&type=chunk) - The company's investment in Jet.AI closed its business combination on August 10, 2023, with its fair value change being the main driver of recent financial results[157](index=157&type=chunk)[194](index=194&type=chunk) Performance Ratios to Net Premiums Earned | Ratio | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Loss ratio | 0.0% | 107.8% | | Acquisition cost ratio | 10.9% | 11.1% | | Expense ratio | 244.3% | 116.6% | | **Combined ratio** | **244.3%** | **224.4%** | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exempt from providing market risk disclosures as it qualifies as a smaller reporting company - The company is exempt from providing quantitative and qualitative disclosures about market risk because it qualifies as a smaller reporting company[221](index=221&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[222](index=222&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[223](index=223&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any litigation or arbitration but anticipates such proceedings in the ordinary course of business - As of the filing date, the company is not involved in any litigation or arbitration[224](index=224&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) The company highlights the risk of income statement volatility and equity reduction due to its significant fair-valued investment in Jet.AI Inc - The company emphasizes the risk that its significant investment in Jet.AI Inc., which is recorded at fair value, could result in income statement volatility and cause fluctuations in the company's stock price[226](index=226&type=chunk) - A decline in the fair value of the Jet.AI investment could significantly reduce both earnings and shareholders' equity[226](index=226&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales or repurchases of equity securities during the reporting period - There were no unregistered sales of equity securities or repurchases of equity securities during the reporting period[227](index=227&type=chunk)[228](index=228&type=chunk) [Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[229](index=229&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[230](index=230&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[231](index=231&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL interactive data files - Exhibits filed include certifications from the CEO and CFO as required by the Sarbanes-Oxley Act[232](index=232&type=chunk) - The financial statements and notes are also provided in XBRL format[232](index=232&type=chunk)

Oxbridge Re Holdings Limited (NASDAQ:OXBR) Q2 2023 Results Conference Call August 14, 2023 4:30 PM ET Company Participants Jay Madhu - Chairman, President and CEO Wrendon Timothy - CFO and Corporate Secretary Conference Call Participants Kent Engelke - Capitol Securities Management Operator Good afternoon, welcome to Oxbridge Re’s Second Quarter 2023 Earnings Call. My name is Chloe and I will be your conference operator this afternoon. [Operator Instructions] Joining us for today’s presentation is Oxbridge ...

Business Operations - Oxbridge Re Holdings Limited focuses on fully collateralized reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region, especially Florida [151]. - During the six-month period ending June 30, 2023, SurancePlus Inc. entered into subscription agreements for the sale of its Series DeltaCat Re tokens, representing fractionalized interest in reinsurance contracts [175]. - The business combination with Jet Token Inc. was completed on August 10, 2023, enabling Jet to continue its growth strategy of AI software development and fleet expansion [165]. Financial Performance - Total revenue for the three months ended June 30, 2023, was $691,000, an increase of 37.5% compared to $503,000 for the same period in 2022 [181]. - Net premiums earned for the six months ended June 30, 2023, decreased to $183,000 from $404,000 for the same period in 2022, representing a decline of 54.7% [184]. - General and administrative expenses for the six months ended June 30, 2023, increased to $1.1 million, up from $728,000 in the same period in 2022, reflecting a rise of 50.9% [188]. - The combined ratio for the six months ended June 30, 2023, increased to 601.6% from 191.1% in the same period in 2022, indicating a significant decline in underwriting performance [195]. - Net loss for the quarter ended June 30, 2023, was $85,000, compared to a net income of $77,000 for the same period in 2022 [181]. Cash and Investments - As of June 30, 2023, restricted cash and cash equivalents decreased by $2.35 million, or 86%, to $0.37 million from $2.72 million as of December 31, 2022 [195]. - Total investments increased by $81,000, or 13%, to $723,000 as of June 30, 2023, from $642,000 as of December 31, 2022 [196]. - Other investments increased by $505,000 to $11.93 million from $11.42 million at December 31, 2022, due to fair value changes [197]. - Net cash used in operating activities for the six months ended June 30, 2023, totaled $1,614,000, compared to $475,000 for the same period in 2022 [206]. - Notes payable to noteholders decreased by $46,000 to $118,000 as of June 30, 2023, from $216,000 at December 31, 2022 [198]. Reserves and Losses - As of June 30, 2023, the company had no reserves for loss and loss adjustment expenses due to no significant events occurring during the year and no reported claims on contracts in force [221]. - The reserves for losses and loss adjustment expenses are based on claims reported by ceding insurers and independent actuary assistance, representing management's best estimate of ultimate settlement costs [218]. - The company believes its loss reserves are adequate, but acknowledges the uncertainty in predicting future events, which could lead to material differences in required settlement amounts [219]. - Under GAAP, the company cannot establish loss reserves until an actual loss event occurs, limiting reserves to losses incurred up to the reporting date [220]. - The company's reserving methodology involves arriving at a specific point estimate for expected losses on a contract-by-contract basis due to the low frequency and high severity nature of claims [222]. Revenue Recognition - The company records premium revenue as earned pro-rata over the terms of reinsurance agreements, with unearned premiums recorded as a reserve [215]. - The company assesses reinsurance contracts for risk transfer, which is critical for reporting premiums written; if insufficient risk is transferred, the contract is accounted for as a deposit liability [217]. Investment Valuation - The fair value of investments is based on the last traded price, with indirect investments evaluated by independent valuation experts using observable and unobservable inputs [214]. - The determination of what constitutes "observable" data requires significant judgment by the company's investment custodians and management [214].

Financial Data and Key Metrics Changes - Net investment income increased to $189,000 from $33,000 due to higher rates on money market funds [13] - Net income for Q1 2023 was $142,000 or $0.02 per share, compared to a net loss of $387,000 or $0.07 per share in Q1 2022 [14] - Total revenues for Q1 2023 were $546,000, compared to none in the prior year's first quarter [42] Business Line Data and Key Metrics Changes - Net premiums earned for Q1 2023 were nil, down from $210,000 in Q1 2022 due to the acceleration of premium recognition from prior contracts [31] - Total expenses increased to $404,000 in Q1 2023 from $261,000 in the previous year [32] - The combined ratio for Q1 2023 was 0%, compared to 151.9% in Q1 2022, reflecting no premiums earned [33] Market Data and Key Metrics Changes - The investment portfolio increased to $718,000 at March 31, 2023, from $646,000 at the end of the previous year [15] - Cash and cash equivalents decreased to $3.6 million at March 31, 2023, from $3.9 million on December 31, 2022 [15] Company Strategy and Development Direction - The company aims for long-term growth in book value by selectively writing business that generates attractive underwriting profits [26] - Oxbridge Re is diversifying its business through investments in disruptive technologies and the creation of a new Web3 subsidiary, SurancePlus Inc. [10][29] - The company is optimistic about the prospects of its core reinsurance business and its investments in Oxbridge Acquisition and SurancePlus [11] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the potential of Assurance Plus to democratize access to reinsurance through blockchain technology [45] - The company remains debt-free and has a strong balance sheet, positioning itself for future opportunities [36] - Management anticipates an uptick in recognition of the SPAC investment value once the merger is closed [47] Other Important Information - Assurance Plus will issue tokenized securities representing fractionalized interests in reinsurance contracts, expected to generate a potential return of approximately 42% annually [29] - The company is on track to close the business combination with Jet.AI by the end of Q2 2023, pending SEC and shareholder approval [28] Q&A Session Summary Question: Potential value recognition for Assurance Plus - Management confirmed that SEC comments were filed and expects the process to close by the end of Q2 2023, indicating everything is on track [37] Question: Monetization of Assurance Plus - Management stated that Assurance Plus was developed in-house without dilution, allowing shareholders to own 100% of the company [38] Question: SPAC merger and value release - Management acknowledged that the full mark-to-market value on the SPAC investment will be realized post-merger, leading to an uptick in recognition [47]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Oxbridge Re Holdings Limited and its subsidiaries for the period ended March 31, 2023, including balance sheets, statements of operations, cash flows, and changes in shareholders' equity, along with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show a slight increase in total assets and shareholders' equity from December 31, 2022, to March 31, 2023, driven by increases in other investments and equity securities, while cash and cash equivalents decreased | Metric | March 31, 2023 (Unaudited, in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :-------------------------- | :------------------ | | Total assets | $16,848 | $16,616 | | Total liabilities | $1,663 | $1,627 | | Total shareholders' equity | $15,185 | $14,989 | | Equity securities, at fair value | $718 | $642 | | Cash and cash equivalents | $729 | $1,207 | | Restricted cash and cash equivalents | $2,891 | $2,721 | | Other Investments | $11,804 | $11,423 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net income of $142 thousand for Q1 2023, a significant improvement from a net loss of $387 thousand in Q1 2022, primarily due to unrealized gains on other investments and changes in fair value of equity securities | Metric | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net premiums earned | - | $210 | | Net investment and other income | $89 | $33 | | Unrealized gain (loss) on other investments | $381 | $(230) | | Change in fair value of equity securities | $76 | $(20) | | Total revenue | $546 | - | | Total expenses | $404 | $361 | | Net income (loss) | $142 | $(387) | | Earnings (Loss) per share (Basic and Diluted) | $0.02 | $(0.07) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2023, the company used cash in operating, investing, and financing activities, resulting in a net decrease in cash and cash equivalents | Cash Flow Activity | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(140) | $(69) | | Net cash used in investing activities | $(5) | $(201) | | Net cash used in financing activities | $(163) | - | | Net change during the period (Cash and restricted cash) | $(308) | $(270) | | Balance at end of period (Cash and restricted cash) | $3,620 | $5,148 | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased from $14,989 thousand at December 31, 2022, to $15,185 thousand at March 31, 2023, primarily due to net income for the period and stock-based compensation | Metric | December 31, 2022 (in thousands) | March 31, 2023 (in thousands) | | :-------------------------- | :------------------ | :----------------- | | Total Shareholders' Equity | $14,989 | $15,185 | | Net income for the period | - | $142 | | Stock-based compensation | - | $54 | | Issuance of restricted stock | - | 96,647 shares | [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes provide detailed information on the company's organization, significant accounting policies, financial instruments, regulatory compliance, and other relevant disclosures that are integral to understanding the consolidated financial statements [1. ORGANIZATION AND BASIS OF PRESENTATION](index=9&type=section&id=1.%20ORGANIZATION%20AND%20BASIS%20OF%20PRESENTATION) Oxbridge Re Holdings Limited, incorporated in the Cayman Islands, provides collateralized reinsurance in the property catastrophe market and invests in insurance-linked securities through its wholly-owned subsidiaries - Oxbridge Re Holdings Limited operates as a single business segment, providing collateralized reinsurance in the property catastrophe market and investing in insurance-linked securities through its wholly-owned subsidiaries: Oxbridge Reinsurance Limited, Oxbridge Re NS, and SurancePlus[26](index=26&type=chunk) - The unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC rules, reflecting all normal recurring adjustments[28](index=28&type=chunk) [2. SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=2.%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section details the significant accounting policies, including the treatment of cash and cash equivalents, restricted cash, investments, deferred policy acquisition costs, offering expenses, reserves for losses, premiums assumed, and stock-based compensation - Investments in equity securities and 'other investments' (Oxbridge Acquisition Corp.) are carried at fair value, with changes recorded in the consolidated statements of operations[35](index=35&type=chunk) - Offering expenses of **$252,000** at March 31, 2023, include **$133,000** for an equity distribution agreement and **$119,000** for the offering of Delta Cat Re digital securities by SurancePlus Inc[41](index=41&type=chunk) - The company manages its business on the basis of one operating segment, Property and Casualty Reinsurance[59](index=59&type=chunk) [3. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS](index=14&type=section&id=3.%20CASH%20AND%20CASH%20EQUIVALENTS%20AND%20RESTRICTED%20CASH%20AND%20CASH%20EQUIVALENTS) Total cash and cash equivalents, including restricted cash, decreased from $3,928 thousand at December 31, 2022, to $3,620 thousand at March 31, 2023 | Category | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :-------------------------- | :------------------------------ | :------------------------------- | | Cash on deposit | $729 | $1,207 | | Restricted cash held in trust | $2,891 | $2,721 | | Total | $3,620 | $3,928 | - Restricted cash held in trust is custodied with Truist Bank and maintained as collateral for reinsurance agreements[63](index=63&type=chunk) [4. INVESTMENTS](index=14&type=section&id=4.%20INVESTMENTS) The company's total investments increased to $16,142 thousand at March 31, 2023, from $15,993 thousand at December 31, 2022, primarily driven by an increase in "Other Investments" | Investment Category | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :------------------------------ | :------------------------------- | | Oxbridge Acquisition Corp. Promissory Note | $214 | $214 | | Oxbridge Acquisition Corp. Class B Ordinary Shares | $11,590 | $11,209 | | Total Other Investments | $11,804 | $11,423 | | Unrealized gain (loss) on investment in affiliate (Q1) | $381 | $(230) | - The company's beneficial interests in OXAC's Class B shares, Private Placement Warrants, and Extension Loan are recorded at fair value and classified as 'Other Investments' (Level 3 in the fair value hierarchy) due to unobservable inputs and a **25.11% discount** for lack of marketability and forfeiture risk[72](index=72&type=chunk)[80](index=80&type=chunk) - The fair value of Private Placement Warrants was determined to be **$0** at both March 31, 2023, and December 31, 2022[81](index=81&type=chunk) [5. TAXATION](index=19&type=section&id=5.%20TAXATION) The company and its subsidiaries are exempt from corporate income or capital gains taxes in the Cayman Islands until 2033 and intend to avoid being deemed engaged in a U.S. trade or business - The Company and Oxbridge Reinsurance Limited have tax concessions in the Cayman Islands, exempting them from corporate income or capital gains taxes until **April 23, 2033**, and **May 17, 2033**, respectively[85](index=85&type=chunk) - The Company intends to conduct operations to avoid being engaged in a U.S. trade or business, which would otherwise subject it to U.S. federal income tax and branch profits tax[86](index=86&type=chunk) [6. VARIABLE INTEREST ENTITIES](index=19&type=section&id=6.%20VARIABLE%20INTEREST%20ENTITIES) Oxbridge Re NS is consolidated as a VIE, and SurancePlus Inc. launched an offering of tokenized reinsurance securities, while notes payable to Series 2020-1 noteholders decreased due to partial redemption - Oxbridge Re NS is consolidated as a Variable Interest Entity (VIE) because it lacks sufficient equity capital and the Company is its primary beneficiary, owning **100% of voting shares** and having significant financial interest and control[88](index=88&type=chunk) - SurancePlus Inc., a wholly-owned subsidiary, commenced an offering of up to **$5.0 million** of DeltaCat Re tokenized reinsurance securities, which represent Series DeltaCat Preferred Shares of SurancePlus[93](index=93&type=chunk)[94](index=94&type=chunk) - Participating notes totaling **$44,000** were redeemed during Q1 2023, reducing the balance due to **$172,000** at March 31, 2023[97](index=97&type=chunk) [7. RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES](index=21&type=section&id=7.%20RESERVE%20FOR%20LOSSES%20AND%20LOSS%20ADJUSTMENT%20EXPENSES) The reserve for losses and loss adjustment expenses remained at $1,073 thousand at March 31, 2023, with no new losses incurred or paid during Q1 2023 or Q1 2022 | Metric | March 31, 2023 (in thousands) | March 31, 2022 (in thousands) | | :-------------------------- | :---------------------------- | :---------------------------- | | Balance, beginning of period | $1,073 | - | | Total incurred | - | - | | Total paid | - | - | | Balance, end of period | $1,073 | - | - The reserve for losses and LAE is based on the contractual maximum loss the Company can suffer under affected contracts, specifically for Hurricane Ian[101](index=101&type=chunk) [8. EARNINGS (LOSS) PER SHARE](index=22&type=section&id=8.%20EARNINGS%20(LOSS)%20PER%20SHARE) Basic and diluted EPS for Q1 2023 was $0.02, a positive change from $(0.07) in Q1 2022, with options and warrants being anti-dilutive in both periods | Metric | Three Months Ended March 31, 2023 (in thousands, except EPS) | Three Months Ended March 31, 2022 (in thousands, except EPS) | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $142 | $(387) | | Weighted average shares - basic | 5,857,643 | 5,751,008 | | Earnings (Loss) per share - basic | $0.02 | $(0.07) | | Earnings (Loss) per share - diluted | $0.02 | $(0.07) | - Options to purchase **846,250 ordinary shares** and **8,230,700 warrants** were anti-dilutive in Q1 2023 due to their exercise price exceeding the average market price[106](index=106&type=chunk) - Options and warrants were anti-dilutive in Q1 2022 due to the net loss during that period[107](index=107&type=chunk) [9. WARRANTS](index=22&type=section&id=9.%20WARRANTS) There were 8,230,700 warrants outstanding at March 31, 2023, exercisable at $7.50 per share until March 26, 2024, with no exercises during Q1 2023 or Q1 2022 - **8,230,700 warrants** were outstanding at March 31, 2023, and December 31, 2022[109](index=109&type=chunk) - Each warrant is exercisable for one ordinary share at **$7.50 per share**, expiring on **March 26, 2024**[109](index=109&type=chunk) - No warrants were exercised during the three-month periods ended March 31, 2023, and 2022[109](index=109&type=chunk) [10. DIVIDENDS](index=23&type=section&id=10.%20DIVIDENDS) While the Company's retained earnings are not restricted from dividend payments, funding a dividend would likely require a dividend from subsidiaries, subject to CIMA notification and minimum capital requirements - None of the Company's retained earnings were restricted from dividend payments to shareholders as of March 31, 2023[111](index=111&type=chunk) - Dividends from subsidiaries would require notification to the Cayman Islands Monetary Authority (CIMA) and must not result in breaches of prescribed and minimum capital requirements[111](index=111&type=chunk)[112](index=112&type=chunk) [11. SHARE-BASED COMPENSATION](index=23&type=section&id=11.%20SHARE-BASED%20COMPENSATION) The company granted 96,647 restricted stock awards in Q1 2023 under the 2021 Plan, with stock option compensation expense of $5 thousand and restricted stock compensation expense of $49 thousand for Q1 2023 - The Company granted **96,647 restricted stock** to directors and officers under the 2021 Plan during Q1 2023[113](index=113&type=chunk)[118](index=118&type=chunk) | Compensation Type | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | | Stock option compensation expense | $5 | $15 | | Restricted stock compensation expense | $49 | $17 | - Unrecognized compensation expense for non-vested stock options was approximately **$35,000**, and for non-vested restricted stock was approximately **$294,000** at March 31, 2023[115](index=115&type=chunk)[118](index=118&type=chunk) [12. NET WORTH FOR REGULATORY PURPOSES](index=24&type=section&id=12.%20NET%20WORTH%20FOR%20REGULATORY%20PURPOSES) Both Oxbridge Reinsurance Limited and Oxbridge Re NS exceeded their minimum and prescribed capital requirements of $500 at March 31, 2023 - Oxbridge Reinsurance Limited's net worth of **$9.1 million** exceeded its minimum and prescribed capital requirement of **$500** at March 31, 2023[120](index=120&type=chunk) - Oxbridge Re NS' net worth of **$155,000** exceeded its minimum and prescribed capital requirement of **$500** at March 31, 2023[121](index=121&type=chunk) [13. FAIR VALUE AND CERTAIN RISKS AND UNCERTAINTIES](index=25&type=section&id=13.%20FAIR%20VALUE%20AND%20CERTAIN%20RISKS%20AND%20UNCERTAINTIES) The company faces concentration of underwriting risk due to a limited number of entities, credit and counterparty risk from brokers and reinsurers, and market risk from investment fluctuations - The Company's underwriting risks are not significantly diversified, relating to a limited number of entities[125](index=125&type=chunk) - Credit and counterparty risk exists with brokers and retrocessionaires, mitigated by using reputable counterparties[126](index=126&type=chunk)[128](index=128&type=chunk) - Market risk from fluctuating asset values is mitigated by established investment guidelines[129](index=129&type=chunk) [14. LEASES](index=26&type=section&id=14.%20LEASES) The company has two operating lease obligations for office and residential facilities, with operating lease right-of-use assets and liabilities increasing to $85 thousand at March 31, 2023 | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :-------------------------- | :---------------------------- | :------------------------------- | | Operating lease right-of-use assets | $85 | $44 | | Operating lease liabilities | $85 | $44 | - Operating lease cost was **$24,000** for both the three-month periods ended March 31, 2023, and 2022[134](index=134&type=chunk) - The weighted-average remaining lease term for operating leases was **0.82 years** at March 31, 2023[134](index=134&type=chunk) [15. RELATED PARTY TRANSACTIONS](index=27&type=section&id=15.%20RELATED%20PARTY%20TRANSACTIONS) The company recorded $30 thousand in income from the Sponsor under an Administrative Services Agreement for Q1 2023, and a director received a partial redemption of $14 thousand on his participating notes - The Company recorded **$30,000 income** from the Sponsor under an Administrative Services Agreement for Q1 2023[137](index=137&type=chunk) - A balance of **$69,000** was due from a related party at March 31, 2023, including administrative fees and reimbursable expenses[138](index=138&type=chunk) - Mr. Jay Madhu, a director and officer, received a **$14,000 payment** representing partial redemption of principal and return on investment for Series 2020-1 participating notes[139](index=139&type=chunk) [16. SUBSEQUENT EVENTS](index=27&type=section&id=16.%20SUBSEQUENT%20EVENTS) The company evaluates all subsequent events and transactions for potential recognition or disclosure in its consolidated financial statements - The company evaluates all subsequent events for potential recognition or disclosure[140](index=140&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the three months ended March 31, 2023, compared to the prior year, highlighting key revenue and expense drivers, recent developments, and critical accounting policies [SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS](index=28&type=section&id=SPECIAL%20NOTE%20ABOUT%20FORWARD-LOOKING%20STATEMENTS) This section serves as a cautionary note regarding forward-looking statements in the report, emphasizing that actual results may differ materially due to risks and uncertainties detailed in the Form 10-K - The report contains forward-looking statements that are subject to risks and uncertainties, which may cause actual results to differ materially[142](index=142&type=chunk) - Readers are cautioned not to place undue reliance on these statements, and the company undertakes no obligation to publicly update or revise them[142](index=142&type=chunk) [GENERAL](index=28&type=section&id=GENERAL) Oxbridge Re Holdings Limited is a Cayman Islands specialty property and casualty reinsurer focusing on fully collateralized reinsurance contracts in the U.S. Gulf Coast, aiming for long-term growth in book value per share through underwriting and opportunistic investment profits - Oxbridge Re is a Cayman Islands specialty property and casualty reinsurer, focusing on fully collateralized reinsurance contracts primarily for property and casualty insurance companies in the U.S. Gulf Coast, with an emphasis on Florida[144](index=144&type=chunk)[145](index=145&type=chunk) - The company's goal is to achieve long-term growth in book value per share by generating attractive underwriting profits and complementing them with opportunistic investment profits[145](index=145&type=chunk) - Operating results may fluctuate due to factors like follow-on offerings, seasonality (hurricane season from **June 1 to November 30**), competition, regulation, and economic conditions[147](index=147&type=chunk) [Recent Developments](index=29&type=section&id=Recent%20Developments) Oxbridge Acquisition Corp. (SPAC), in which the Company has an indirect investment, approved an extension for its business combination deadline to August 16, 2023, and subsequently announced a business combination with Jet Token Inc. (Jet.AI Inc.) - Oxbridge Acquisition Corp. (OXAC) extended its business combination deadline from **November 16, 2022**, to **August 16, 2023**[156](index=156&type=chunk) - OXAC filed a Form 8-K announcing a business combination with Jet Token Inc. (to be named Jet.AI Inc.), expected to be completed late in the second quarter of 2023[158](index=158&type=chunk) - Oxbridge Reinsurance Limited, as the lead investor in OXAC's sponsor, holds the equivalent of **1,426,180 Class B shares**, valued at **$14,261,800** at the closing of the business combination[159](index=159&type=chunk) [PRINCIPAL REVENUE AND EXPENSE ITEMS](index=31&type=section&id=PRINCIPAL%20REVENUE%20AND%20EXPENSE%20ITEMS) The company's main revenue sources are premiums assumed, investment income, and income from an Administrative Services Agreement, while key expenses include loss and loss adjustment expenses, policy acquisition costs, and general and administrative expenses - Principal revenue sources include premiums assumed from reinsurance, income from investments (net realized and unrealized gains, interest, dividends), and income from the Administrative Services Agreement[161](index=161&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk) - Key expenses consist of losses and loss adjustment expenses, policy acquisition costs and underwriting expenses, and general and administrative expenses[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - The Administrative Services Agreement provides **$10,000 per month** from the Sponsor for office space, utilities, and administrative support[165](index=165&type=chunk) [RESULTS OF OPERATIONS](index=33&type=section&id=RESULTS%20OF%20OPERATIONS) The company achieved a net income of $142 thousand in Q1 2023, a significant improvement from a net loss of $387 thousand in Q1 2022, primarily driven by positive fair value changes in equity securities and other investments | Metric | Three Months Ended March 31, 2023 (in thousands, except EPS) | Three Months Ended March 31, 2022 (in thousands, except EPS) | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $142 | $(387) | | Net premiums earned | $0 | $210 | | Unrealized gain on other investments | $381 | $(230) | | General and administrative expenses | $404 | $338 | | Basic and Diluted EPS | $0.02 | $(0.07) | - The increase in net income is primarily due to positive changes in the fair value of equity securities and other investments[172](index=172&type=chunk) - Net premiums earned decreased to **$0** in Q1 2023 from **$210,000** in Q1 2022 due to the acceleration of premium recognition on two reinsurance contracts following a limit loss in Q3 2022[174](index=174&type=chunk) [MEASUREMENT OF RESULTS](index=34&type=section&id=MEASUREMENT%20OF%20RESULTS) The company uses gross premiums assumed, loss ratio, acquisition cost ratio, expense ratio, and combined ratio to measure business growth and underwriting profitability, with net income and return on average equity for overall profitability | Ratio | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Loss ratio | 0.0% | 0.0% | | Acquisition cost ratio | 0.0% | 11.0% | | Expense ratio | 0.0% | 171.9% | | Combined ratio | 0.0% | 171.9% | - The decrease in acquisition cost, expense, and combined ratios to **0%** in Q1 2023 is primarily due to no premiums being earned during the period[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) - The loss ratio remained **0%** in both periods as no losses were incurred[180](index=180&type=chunk) [FINANCIAL CONDITION – MARCH 31, 2023 COMPARED TO DECEMBER 31, 2022](index=35&type=section&id=FINANCIAL%20CONDITION%20%E2%80%93%20MARCH%2031%2C%202023%20COMPARED%20TO%20DECEMBER%2031%2C%202022) The company's financial condition improved slightly with increases in restricted cash, total investments, and other investments, while notes payable decreased due to partial redemption - Restricted cash and cash equivalents increased by **$170,000 (6%)** to **$2.89 million**, driven by premium deposits[185](index=185&type=chunk) - Total investments increased by **$76,000 (12%)** to **$718,000**, primarily due to an increase in the value of equity securities[186](index=186&type=chunk) - Other investments increased by **$381,000** to **$11.8 million**, attributed to fair value changes in the investment in Oxbridge Acquisition Corp[187](index=187&type=chunk) - Notes payable to noteholders decreased by **$44,000** to **$172,000** due to a partial redemption of Series 2020-1 participating notes[188](index=188&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=35&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company operates as a holding company with minimal cash needs, funded by premium receipts and investment income, maintaining a highly liquid investment portfolio, and its subsidiaries exceeded minimum net worth requirements - Primary sources of funds include premium receipts and investment income; cash is used for losses, underwriting expenses, dividends, and general and administrative expenses[190](index=190&type=chunk) - The investment portfolio, excluding OAC Sponsor Ltd., consists primarily of cash and highly liquid securities, providing sufficient flexibility for liquidity[190](index=190&type=chunk) - Subsidiaries are subject to Cayman Islands regulatory constraints, including a minimum net worth requirement of **$500**, which both exceeded as of March 31, 2023[192](index=192&type=chunk) | Cash Flow Activity | Three Months Ended March 31, 2023 (in thousands) | | :----------------------------------- | :--------------------------------------------- | | Net cash used in operating activities | $(140) | | Net cash used in investing activities | $(5) | | Net cash used in financing activities | $(163) | [OFF-BALANCE SHEET ARRANGEMENTS](index=36&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) As of March 31, 2023, the company had no off-balance sheet arrangements as defined by SEC regulations - The company had no off-balance sheet arrangements as of March 31, 2023[196](index=196&type=chunk) [EXPOSURE TO CATASTROPHES](index=36&type=section&id=EXPOSURE%20TO%20CATASTROPHES) The company's operating results are vulnerable to natural and man-made disasters, and while exposure is limited, GAAP does not permit establishing loss reserves for future expected losses - Operating results and financial condition could be adversely affected by volatile and unpredictable natural and man-made disasters[197](index=197&type=chunk) - GAAP does not permit establishing loss reserves for losses that may be incurred until an event giving rise to a claim occurs, meaning no provision for contingency reserves for expected future losses[197](index=197&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=36&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) This section highlights critical accounting policies involving significant estimates and assumptions, including fair value measurements, premium revenue recognition, risk transfer assessment, reserves for losses, and deferred acquisition costs - Critical accounting policies involve significant estimates and assumptions, particularly for fair value measurements of the investment in Oxbridge Acquisition Corp., premium revenues, risk transfer, reserves for losses and loss adjustment expenses, and deferred acquisition costs[198](index=198&type=chunk) - The fair value of the indirect investment in Oxbridge Acquisition Corp. is based on an independent valuation expert's calculation utilizing observable and unobservable inputs, classified as Level 3 in the fair value hierarchy[202](index=202&type=chunk) - As of March 31, 2023, the company had reserves of **$1.07 million** for losses and loss adjustment expenses as a result of Hurricane Ian, representing the maximum loss limit on affected reinsurance contracts[209](index=209&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Oxbridge Re Holdings Limited is not required to provide quantitative and qualitative disclosures about market risk - The company is not required to provide quantitative and qualitative disclosures about market risk as it is a smaller reporting company[212](index=212&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of March 31, 2023[213](index=213&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended March 31, 2023[214](index=214&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any litigation or arbitration but anticipates being subject to such in the ordinary course of business - The company is not currently involved in any litigation or arbitration[216](index=216&type=chunk) - It anticipates being subject to litigation and arbitration in the ordinary course of business, similar to the rest of the insurance and reinsurance industry[216](index=216&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section states that there are no new risk factors to report for the current period - No new risk factors are reported for the current period[217](index=217&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities, repurchases of equity securities, or specific uses of proceeds to report - No unregistered sales of equity securities occurred[218](index=218&type=chunk) - No repurchases of equity securities occurred[219](index=219&type=chunk) - No specific use of proceeds to report[220](index=220&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report - No defaults upon senior securities occurred[221](index=221&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the registrant[222](index=222&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) No other information to report in this section - No other information is reported in this section[223](index=223&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and XBRL formatted financial statements - Exhibits include Certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act[225](index=225&type=chunk) - XBRL formatted financial statements (Consolidated Balance Sheets, Statements of Operations, Cash Flows, Changes in Shareholders' Equity, and Notes) are filed[225](index=225&type=chunk) [Signatures](index=41&type=section&id=Signatures) The report is signed by Jay Madhu, CEO and President, and Wrendon Timothy, CFO and Secretary, on May 12, 2023 - The report was signed on **May 12, 2023**, by Jay Madhu, Chief Executive Officer and President, and Wrendon Timothy, Chief Financial Officer and Secretary[228](index=228&type=chunk)

Financial Data and Key Metrics Changes - Net premiums earned increased marginally to $995,000 in 2022 from $965,000 in 2021, primarily due to the acceleration of premium recognition on two reinsurance contracts and higher rates on reinsurance contracts [12] - The company experienced a net loss of $1.8 million or $0.31 per share in 2022, compared to net income of $8.6 million in 2021 [13] - Total revenue declined to $850,000 in 2022 from $10.2 million in the prior year, mainly due to a significant decline in unrealized gains on SPAC investments [20] - The loss ratio increased to 107.8% in 2022 from 16.4% in the prior year, attributed to losses from Hurricane Ian [45] - The combined ratio rose to 260.9% in 2022 from 162.6% in 2021, reflecting increased loss and administrative expenses [46] Business Line Data and Key Metrics Changes - The acquisition cost ratio remained stable at 11% in 2022 compared to the prior year [22] - The expense ratio increased to 153.1% in 2022 from 146.2% in the prior year, primarily due to higher general and administrative expenses [22] Market Data and Key Metrics Changes - The investment portfolio increased to $642,000 at December 31, 2022, from $577,000 in the prior year, mainly due to net purchases of equity securities [23] - Cash and cash equivalents decreased to $3.9 million at December 31, 2022, compared to $5.4 million at December 31, 2021 [24] Company Strategy and Development Direction - The company launched SurancePlus, a subsidiary that will issue tokenized reinsurance securities, aiming to democratize access to reinsurance investments [25][49] - The first offering of SurancePlus tokens is expected to raise up to $5 million, with potential returns of up to 196% over three years [26] - The company remains opportunistic about its core reinsurance business and is focused on diversifying its investment portfolio [11][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects of the core reinsurance business and the potential of new investments in emerging technologies [11][52] - The current volatility in global financial markets is impacting the investment portfolio and net income, but the company is positioned to capitalize on favorable return opportunities [18] Other Important Information - The company remains debt-free and has a strong balance sheet, positioning itself for growth in emerging technologies [52] - The company is focused on maintaining operational efficiencies and managing costs effectively [57] Q&A Session Summary Question: Clarification on SPAC investments - The company owns approximately 1.4 million shares in Oxbridge Acquisition Corp, with a cost basis of about $2.3 million, and the shares are expected to be worth $14 million at closing [54] Question: Details on reinsurance tokens offering - The first offering is about $5 million, with Oxbridge taking a small management fee and sharing profits on an 80-20 basis after the first 20% return to investors [57]