Financing Activities - For the year ended December 31, 2024, the company sold 372,341 ordinary shares under the ATM program for gross proceeds of $1,166,044 at an average price of $3.13 per share[164]. - During the period ended March 31, 2025, the company sold 97,715 ordinary shares under the ATM program for gross proceeds of $448,858 at an average price of $4.59 per share[165]. - On March 27, 2023, the company announced the commencement of an offering of up to $5.0 million of DeltaCat Re Tokens, with a purchase price of $10.00 per token[152]. - The aggregate amount raised in the DeltaCat Re Tokens Private Placement was $2,447,760 for the issuance of 244,776 tokens, with approximately $1,280,000 from third-party investors[153]. - On February 24, 2025, the company entered into a securities purchase agreement for an offering of approximately $3.0 million, consisting of 705,884 ordinary shares and warrants[167]. - The net proceeds from the securities purchase agreement were approximately $2.7 million after deducting fees and estimated offering expenses[169]. - The company completed a private placement on July 12, 2024, raising $2,878,048 through the issuance of 287,805 Participation Shares represented by digital tokens[157]. - The holders of the Participation Shares are entitled to a preferred return equal to the initial share price plus 20%, and 80% of any excess proceeds[156]. Revenue and Performance - Net premiums earned for the quarter ended March 31, 2025 increased to $595,000 from $549,000 for the quarter ended March 31, 2024, reflecting a growth of approximately 8.36%[185]. - Total revenue for the quarter ended March 31, 2025 was $692,000, compared to a total revenue of $(125,000) for the same period in 2024, indicating a significant turnaround[184]. - General and administrative expenses for the quarter ended March 31, 2025 increased to $505,000 from $488,000 for the quarter ended March 31, 2024, primarily due to stock-based compensation[188]. - The loss ratio remained consistent at 0% for the quarter ended March 31, 2025, compared to the same period in 2024, indicating no losses incurred[190]. - The expense ratio decreased from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31, 2025, reflecting improved operational efficiency[192]. - The combined ratio decreased from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31, 2025, indicating improved underwriting performance[193]. Cash and Investments - As of March 31, 2025, restricted cash and cash equivalents increased by $3.7 million, or 62.85%, to $9.6 million from $5.9 million as of December 31, 2024[194]. - Total investments increased by $3,000 or 2.65% to $116,000 as of March 31, 2025, primarily due to the increase in value of equity securities[195]. - Net cash provided by operating activities for the three months ended March 31, 2025 totaled $272,000, compared to a net cash used of $276,000 for the same period in 2024[203]. Reserves and Losses - As of March 31, 2025, amounts due to CatRe tokenholders increased to $1.9 million from $1.73 million at December 31, 2024, reflecting recognition of underwriting-related income[196]. - The company has no reserves for loss and loss adjustment expenses as of March 31, 2025, due to no significant events or reported claims during the current treaty period[216]. - The reserves for losses and loss adjustment expenses are based on claims reported by ceding insurers and independent actuaries, representing management's best estimate of ultimate settlement costs[213]. - Under GAAP, the company cannot establish loss reserves until an actual loss event occurs, limiting reserves to losses incurred up to the reporting date[215]. Risk Management and Underwriting - The company aims to achieve long-term growth in book value per share by writing business that generates attractive underwriting profits relative to the risk[147]. - The company focuses on underwriting fully collateralized reinsurance contracts primarily for property catastrophes in the Gulf Coast region of the United States[145]. - The company faces potential adverse effects on financial condition from catastrophic events, despite attempts to limit exposure[206]. - The company assesses whether reinsurance contracts meet risk transfer conditions, which is critical for reporting premiums written; contracts not transferring sufficient risk are accounted for as deposit liabilities[212]. - The 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[217]. - Premium revenue is recorded as earned pro-rata over the terms of reinsurance agreements, with unearned premiums recorded as a reserve[211]. - The company evaluates estimates and assumptions affecting financial statements based on historical developments, market conditions, and industry trends[207]. - The fair value measurement hierarchy prioritizes inputs for valuation techniques, with Level 1 inputs being the highest priority, reflecting unadjusted quoted prices in active markets[208]. - The company defers certain acquisition costs related to reinsurance business, which are amortized and charged to expense as premiums are earned, with recoverability dependent on continued profitability[218].
OXRE(OXBR) - 2025 Q1 - Quarterly Report