RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS
HCI and Tailrow Insurance exchange (“HCI”) Contract
During the six months ended June 30, 2025, the Company entered into a reinsurance agreement with HCI, which is a related entity through common directorship. This contract expired at May 31, 2026. At June 30, 2026, there are no balances relating to the reinsurance agreement with HCI on the consolidated balance sheets. During the six-month period ended June 30, 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, $430,000 and $47,000, respectively.
HCI 2026 Series Tokens and Collateral and Trust Agreements
During the six months ended June 30, 2026, the Company completed the HCI 2026 Series A, B and C tokenized interests offering and entered into related collateral and trust agreements with HCI Group. Refer to Note 6.
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. This liability was fully paid off on June 17, 2026 along with $55,000 of accrued interest on the promissory note.
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