OXRE(US:OXBR)2025-11-06 21:02Fundraising Activities - The company raised $2,447,760 from the issuance of 244,776 DeltaCat Re Tokens, with approximately $1,280,000 from third-party investors and $1,167,000 from Oxbridge Re Holdings Limited[154]. - The company completed a private placement on July 31, 2025, raising $3,611,910 from the issuance of 361,191 Participation Shares represented by digital tokens[159]. - The company has sold 287,915 ordinary shares under the ATM program for gross proceeds of $900,531 at an average price of $3.13 per share[165]. - The company entered into a new offering agreement on July 9, 2025, allowing for the sale of up to $5 million of ordinary shares[162]. Financial Performance - Net premiums earned for the quarter ended September 30, 2025 decreased to $555,000 from $595,000 for the same period in 2024, attributed to lower average rates on reinsurance contracts[186]. - Net premiums earned for the nine-month period ended September 30, 2025 increased to $1.73 million from $1.71 million for the same period in 2024, due to higher average rates on reinsurance contracts[187]. - Total revenue for the quarter ended September 30, 2025 was $645,000, compared to $205,000 for the same period in 2024[184]. - Total expenses for the nine-month period ended September 30, 2025 were $4.99 million, compared to $1.67 million for the same period in 2024[184]. - The net loss for the nine-month period ended September 30, 2025 was $2.19 million, or ($0.30) per share, compared to a net loss of $2.27 million, or ($0.37) per share, for the same period in 2024[185]. Losses and Expenses - The company recognized a full limit loss of $2.3 million from Hurricane Milton during the nine-month period ended September 30, 2025, impacting equity by $1.18 million after accounting for external tokenholders[188]. - General and administrative expenses for the quarter ended September 30, 2025 increased to $754,000 from $432,000 for the same period in 2024, primarily due to increased professional costs[192]. - General and administrative expenses for the nine-month period ended September 30, 2025 rose to $2.52 million from $1.49 million for the same period in 2024, driven by higher professional costs[193]. - The loss ratio for the nine-month period ended September 30, 2025 increased to 132.4%, compared to 0% in the prior period, due to losses from Hurricane Milton[196]. - The combined ratio for the nine-month period ended September 30, 2025 increased to 288.6% from 98% in the prior period, reflecting higher expenses and losses incurred[199]. Assets and Cash Flow - As of September 30, 2025, restricted cash and cash equivalents increased by $1.28 million or 21.7%, totaling $7.18 million compared to $5.9 million as of December 31, 2024[200]. - Total investments rose by $2,000 or 1.77%, reaching $115,000 from $113,000 as of December 31, 2024, primarily due to an increase in the value of equity securities[201]. - Unearned premiums reserve increased by $490,000 to $1.48 million from $991,000 at December 31, 2024, attributed to new reinsurance contracts for the 2025-2026 treaty year[203]. - Net cash used in operating activities for the nine months ended September 30, 2025, totaled $1,781,000, while net cash provided by financing activities was $3,001,000 from share issuance[210]. - The net impact of Hurricane Milton's loss on the company's equity was $1.18 million after accounting for losses borne by external tokenholders[223]. Operational Strategy - The company focuses on fully collateralized reinsurance contracts primarily for property catastrophes in the Gulf Coast region of the United States[146]. - 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[148]. - The company has initiated the development of tokenized reinsurance securities, with plans to issue additional series following the DeltaCat Re Token[147]. - Cash flows from operations are expected to meet liquidity requirements in the short term, with no plans to issue debt for the foreseeable future[207]. - The company has no off-balance sheet arrangements as of September 30, 2025[212]. - Each subsidiary exceeded the minimum net worth requirement of $500 as of September 30, 2025, allowing for potential dividend payments[208]. - The company’s investment portfolio is primarily comprised of cash and highly liquid securities, ensuring sufficient liquidity to meet current liabilities[206]. Seasonal Influences - The company’s operational results may be seasonal, influenced by the timing of hurricanes and tropical storms from June 1 to November 30[149]. - Amounts due to CatRe tokenholders decreased to $1.2 million from $1.73 million at December 31, 2024, due to shared losses from a reinsurance contract affected by Hurricane Milton[202]. - The company maintains a competitive position due to its low overhead expenses and expense efficiency compared to larger competitors[151].