RELATED PARTY TRANSACTIONS |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS |
15. RELATED PARTY TRANSACTIONS
HCI and Tailrow Insurance exchange (“HCI”) Contract
During the three months ended March 31, 2026, the Company entered into a reinsurance agreement with HCI, which is a related entity through common directorship. At March 31, 2026, included within premium receivable, deferred policy acquisition costs and unearned premium reserve on the consolidated balance sheets are amounts equal to $230,000, $19,000 and $172,000 respectively, relating to the reinsurance agreement with HCI. During the three-month period ended March 31, 2026, included within assumed premiums, change in unearned premium reserve and policy acquisition costs and underwriting expenses on the consolidated statements of operations are amounts equal to $0, $250,000 and $27,000, respectively.
EpsilonCat Re Tokens
During the year ended December 31, 2024, Mr. Jay Madhu, a director and officer of the Company and its subsidiaries, entered into subscription agreement to purchase a total of Series Epsilon Cat Re tokens at a purchase price of $ per token for aggregate gross proceeds of $92,447. Ownership of EpsilonCat Re tokenized reinsurance securities indirectly conferred fractionalized interests in reinsurance contracts underwritten by Oxbridge Re NS for the 2024-2025 treaty year.
Promissory Note
On February 11, 2026, the Company entered into a Promissory Note (the “Note”) pursuant to which the Company borrowed $1,000,000 in principal amount. The Note has a 6-month maturity, with the outstanding principal and interest due and payable on August 14, 2026, unless repaid earlier. The Note bears interest at a rate of 16% per annum, and should an event of default occur, interest accrues at a rate of 36% per annum, or the maximum rate permitted by applicable law. The Note may be prepaid at any time without premium or penalty. The Note is secured by a Security Agreement granting the lender a security interest in substantially all assets of the Company. Included within accounts payable and other liabilities is $21,000 of accrued interest payable on the promissory note.
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