Oxbridge Re Holdings Limited Aktie

Good afternoon. Welcome to Oxbridge Third Quarter 2026 Earnings Call. My name is Dashmeina, and I will be your conference operator this afternoon. [Operator Instructions] Joining us for today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon Timothy. Following their remarks, we will open the call up for questions. I would like to remind everyone that this call will be available via telephone replay until November 23, 2026.

Details for the telephone replay are included in the press release issued today. Now I'd like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge, who will be providing the necessary cautions regarding the forward-looking statements that will be made by management during this call. -

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipates, estimates, expects, intends, plans, projects and other similar words and expressions are intended to signify forward-looking statements.

Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled Risk Factors contained in our Form 10-K filed on March 31 -- March 30, 2026, with the Securities and Exchange Commission.

The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition and the volatility of our earnings, which in turn can cause significant market price and trading volume fluctuations for securities. Any forward-looking statements made on this conference call speaks only as of the date of this conference call. And except as required by law, the company undertakes no obligation to update any forward-looking statements contained on this call or in any company presentation, even if the company's expectations or any related events, conditions or circumstances change. Now I'd like to turn the call over to our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. I'll start with a brief update on AssurancePlus and AI GridWorks. Then I'll turn it over to Wrendon for the financial results. After that, I'll come back to talk about how we're developing AI GridWorks and where it fits in Oxbridge's strategy. AssurancePlus is our real-world asset or RWA tokenization platform. We're in our fourth consecutive treaty year of tokenizing reinsurance offerings. As we previously announced, we've completed 5 offerings for the 2026, 2027 treaty year with approximately $7.1 million in aggregated gross proceeds. 2 were tied to reinsurance originated by Oxbridge. The other 3 associated with HCI Group and Fortex Re were our first offerings tied to third-party reinsurance. That matters because it shows how we can use the platform to structure and issue securities tied to reinsurance originated outside Oxbridge.

On October 21, HCI said it expected Hurricane Isaias to affect only Series B among its 3 offerings and that Series B remained profitable at the time of that update. Actual returns depend on underwriting results. At AI GridWorks, our initial work has focused on building the development team, evaluating sites and working with the utilities to understand how much power could be available and when. We've also been speaking with relevant local authorities to understand the zoning and infrastructure requirements for the sites we're evaluating. With that brief overview, Wrendon, over to you for the financial results.

Thank you, Jay. I'd like to remind everyone that our typical contract period is from June 1 to May 31st of the following year. With respect to net loss, net loss for the quarter ended September 30th, 2026, was $421,000, or $0.05 per basic and diluted loss per share, compared to a net loss of $187,000, or $0.02 per basic and diluted loss per share for the quarter ended September 30th, 2025. The increase in net loss is primarily due to a decline in net premiums earned for the period ended September 30th, 2026, the result of less capital being put to work, which was partially offset by a higher net investment and other income and lower general and administrative expenses.

Net loss for the 9 months ended September 30th, 2026, was $223,000, or $0.03 per basic and diluted loss per share, compared to a net loss of $2.19 million, or $0.30 per basic and diluted loss per share for the nine months ended September 30th, 2025. The decrease in net loss is primarily due to a decrease in loss and loss adjustment expenses, as there were no underwriting losses recorded for the period ended September 30th, 2026. SurancePlus management fee income, along with reduced professional fees and overall compensation, contributed toward the decrease in net loss for the 9-month period ended September 30th, 2026. Net premium earned for the quarter ended September 30th, 2026, decreased to $86,000 from $555,000 for the quarter ended September 30th, 2025.

The decrease is due to a lower amount of capital deployed into reinsurance contracts during the quarter when compared to prior period as a result of the company's pivot. Net premiums earned for the nine months ended September 30th, 2026, decreased to $1.01 million from $1.73 million for the nine months ended September 30th, 2025. The decrease is due to a lower amount of capital deployed into reinsurance contracts during the 9-month period when compared to the prior period. Our net investment and other income for the 3 months and 9 months ended September 30th, 2026, increased to $175,000 from $79,000 and $312,000 from $251,000 respectively when compared with prior year comparable periods.

Along with net premiums and management fee income, our total revenue for the 3 months and 9 months ended September 30th, 2026, amounted to $261,000 and $1.8 million compared to $645,000 and $2 million in the prior year comparable periods respectively. With regards to total expenses for the quarter ended September 30th, 2026, total expenses, including policy acquisition costs and general and admin expenses, decreased to $647,000 from $815,000 for the quarter ended September 30th, 2025.

The decrease is primarily due to reduced professional fees and overall compensation for the 3 months ended September 30th, 2026. For the 9-month period ended September 30th, 2026, total expenses, which includes policy acquisition costs and general admin expenses, decreased to $1.87 million from $4.99 million for the nine months ended September 30th, 2025. The decrease is primarily due to no underwriting losses incurred and recognized for the nine months ended September 30th, 2026.

Reduced professional fees and reduced overall compensation also contributed towards the decrease for the 9-month period ended September 30th, 2026. As we have discussed before on our investor calls, we use various measures to analyze the growth and profitability of our business operations. For reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio, and combined ratio. The loss ratio is the ratio of loss and loss adjustment expenses incurred to premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the 3-month period ended September 30th, 2026, when compared with the prior year comparative period. The loss ratio decreased to 0% from 132.4% for the 9-month period ended September 30th, 2026, when compared with prior comparative period.

This was due to no losses being recognized for the 9-month period ended September 30th, 2026, whereas a full limit loss was recognized for one of our reinsurance contracts during the 9-month period ended September 30th, 2025. Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and net premiums earned. The acquisition cost ratio decreased marginally to 10.5% from 11% for the quarter ended September 30th, 2026, when compared to the prior comparable period. The decrease in acquisition cost ratio is due to reduced net premiums earned during the period ended September 30th, 2026, when compared to prior comparable period. The acquisition cost ratio increased marginally to 11.3% from 11% for the 9-month period ended September 30, 2026, when compared to prior comparable period.

The increase in acquisition cost ratio is due to a reduced net premiums earned and marginal premium adjustments recognized during the period ended September 30th, 2026, when compared to the prior comparable period. Our expense ratio, which measures operating performance, compares policy acquisition costs and general and admin expenses with net premiums earned.

For the quarter ended September 30th, 2026, the expense ratio increased to 752.3% from 146.8% for the quarter ended September 30th, 2025. The increase is primarily due to reduced net premiums earned during the quarter when compared with the prior year period. For the 9-month ended September 30th, 2026, the expense ratio increased to 185.8% from 156.2% for the 9-month period ended September 30th, 2025. The increase is again primarily due to reduced net premiums earned during the 9-month period ended September 30, 2026, when compared with the prior year comparable period.

Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and expense ratio. For the quarter ended September 30th, 2026, the combined ratio increased to 752.3% from 146.8% for the quarter ended September 30th, 2025. The increase is primarily due to reduced net premiums earned during the quarter when compared with the prior period.

For the 9-month ended September 30th, 2026, the combined ratio decreased to 185.8% from 288.6% for the 9-month period ended September 30th, 2025. The decrease is primarily due to reduced net premiums earned during the 9-month period ended September 30th, 2025, when compared with the prior period. Now turning to the balance sheet. As of September 30th, 2026, our combined cash and restricted cash and cash equivalents increased by $12.5 million to $19.5 million from $6.9 million as of December 31st, 2025.

The increase is the net result of the investment in new tokenized securities, the release of collateral from the '25-'26 successful reinsurance treaty contracts, and premium deposits made during the nine months ended September 30, 2026. Now I'd like to turn the call back over to Jay, who will wrap up before we take any of your questions. Jay?

Thank you, Wrendon. Let's turn back to AI GridWorks and where we fit in the data center business. Our focus is on land, the utility power, and the facility. We develop the infrastructure and customers and operating partners to use, to install, and run their computing equipment. We're primarily focused on projects in the 10 MW to 100 MW range. Since launching in August, we've assembled a team with 44 years of combined experience across data center operations, utilities, power infrastructure, engineering, and site development. That experience matters when you're taking a site from initial evaluation through utility coordination, permitting, and construction planning. Oxbridge's capital markets and corporate finance teams help us assess project economics and decide when to commit capital. The first decisions are about site control, how much power can be delivered and when, and which approvals the projects need. Working through these questions early gives us choices.

On some projects, it may make sense to sell a powered site or bring in a partner. On others, we may develop a powered shell, retain ownership, and lease some or all of the space. We can also operate facility power and cooling systems and fit out additional data halls as customer demands warrants. We've also presented at industry and investor conferences and met with institutional investors, capital providers, and prospective partners for both businesses.

Now to talk about project financing and tokenization. This is where two businesses can complement each other. AI GridWorks develops the infrastructure. Through SurancePlus, we have the experience structuring and issuing securities using RWA tokenization. For selected projects, that experience could give us another financing option alongside traditional sources. We'll evaluate those options project by project when the timing and economics warrant it.

Depending on the project, that would mean project-level debt, a fractional ownership interest in the entity that owns a facility, or an investment tied to the facility's cash flow. The results associated with the investment could be represented on-chain. That could give eligible investors a way to participate with a smaller commitment. For context, the HCI reinsurance offering had an announced minimum of $5,000. One idea we could explore is giving eligible residents of the county hosting a data center priority access to portions of the project's offerings. We could use our RWA tokenization platform to administer that allocation and verify residency during investor onboarding. The terms and eligibility would depend on the project and applicable security laws. With that, let's open the call for questions. Operator, please go ahead.

[Operator Instructions] Our first question is from Allen Klee with Maxim Group, LLC.

In the data center area, could you talk a little about the type of opportunities that you think are out there that fit for you and potential interest and any current impacts of the recent elections?

I'll talk about the state of affairs, political state of affairs. Our projects are smaller projects. We're talking about nano data centers, 10 megawatt to 100 megawatt. That could potentially lead to larger, obviously. Since the elections, we have reached out to various government officials in the states and the counties that we are considering doing something, and we have been assured that the thoughts are still data center.

Obviously, we will have to prove and make sure we have the various different approvals that would be needed. By and large, they are for it. In terms of what we are looking at and what sets us apart, so to speak, nano data centers, power first, we're looking at distribution. Primarily, we're looking at centers where we can get 2027 power and a scale-up and a ramp-up in very short order.

Counties that want us is where we are looking to move forward with. Power first, make sure we have all the various different approvals, et cetera, and we can get those in short order. That's what we're looking for, and that's what we are spending all our time making sure we're in those areas. And it looks good.

And then kind of, in terms of potentially financing some of the project with your tokenization, does that I guess I'm trying to think about, like, is there an issue of, like, these projects are very capital-intensive and kind of need You have to get the money up front. Does that create an issue of being able to think you can get enough and certainty with high-net-worth individuals? Or was it just like, that would be one piece of the financing?

Yes. Tokenization is a piece of the financing, absolutely. We would utilize everything that is afforded to us. We would look for our traditional capital structures that we can take advantage of. But the tokenization, I think, would be extremely interesting. Especially given the fact that we can geocode. So hypothetically, in a particular county, we can reserve an allocation to residents of that county. All the other different ways of tokenizing and all the different ways of raising capital would be there.

Now, to your point, yes, these data centers are highly capital-intensive, but in the starting phases, when you're talking about land, you're talking about making sure you have the various different items that needed to be going forward, that's a small dollar amount. We have some capital, and as we go forward, we have the ability to raise a little bit of capital.

We're doing this sequentially, and at every different stage, we would do what's needed to be done, but we would be acutely aware of dilution. Dilution is something that's very important to us, important to our shareholders. Tokenizing these data centers would give us an opportunity, or tokenizing the investment gives us an opportunity to raise capital from all over the world, but it's not the end-all be-all.

Our next question is from Kent Engelke with Capitol Securities.

One of my questions was already answered about the political climate and the like. I am happy to hear that you are going to counties, and the counties and their localities are still very interested in you all and the like. What is the timing on this stuff? Can you give us any insight on the timing of all this?

We have been targeting areas where there isn't critical mass in data centers. Thus, there haven't been any major moratoriums that have come forward in terms with data centers. Having said that definitely adds and is good for us. I'm sorry, what was the other part?

The other part is the timing. I'm very much relieved that you're not getting any sort of political pushback. I know the locality I'm in, we're having a lot of political pushback, and I'm very happy to hear that you're having no political pushback and you're being welcomed. What is the timing of when possible construction and the like may actually commence and the like?

Yes. So timing is critical. We are targeting 2027 power, and with being able to ramp up significantly in short order. Timing, very short timing. The political aspect is helping us in terms of the direction and where we're going, but timing, we're acutely aware, it's a race. We're targeting 2027.

I was thinking some of these localities is the tax base would be quite lucrative, and just your ideas of letting the residents participate via the RWAs and the like, I think that's a very good idea, so good job.

This really blends well, and it brings forward one of our businesses, which are very complementary to the addition of the AI data center space. As we've always said, we're looking to grow the opportunity, grow the business, and in this way, we're able to grow it hand in hand and tandem.

[Operator Instructions] At this time, this concludes our question-and-answer session. I'd like to turn the call back over to Mr. Madhu for closing remarks.

Thank you for your questions and for taking the time to join us today. We appreciate your continued interest in Oxbridge and look forward to keeping you updated. Operator, I'll turn it back to you.

Before we conclude today's call, I would like to remind everyone that a recording of today's call will be available for replay via a link available in the investors section of the company's website. Thank you for joining us today for our presentation. You may now disconnect.

Good afternoon. Welcome to Oxbridge's Second Quarter 2026 Earnings Call. My name is Irene, and I will be your conference operator this afternoon. [Operator Instructions] Joining us for today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon Timothy. Following their remarks, we will open up the call for your questions.

I would like to remind everyone that this call will be available via telephone replay until August 27, 2026. Details for telephone replay are included in the press release issued today.

Now I would like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call.

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995.

Words such as anticipates, estimates, expects, intends, plans, projects and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties.

A detailed discussion of these risks and uncertainties that could cause actual results and events to differ materially from forward-looking statements is included in the section entitled Risk Factors contained in our Form 10-K filed on March 30, 2026, with the Securities and Exchange Commission.

The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial conditions and the volatility of our earnings, which in turn can cause significant market price and trading volume fluctuations for our securities. Any forward-looking statements made on this conference call speaks only as of the date of this conference call.

And except as required by law, the company undertakes no obligation to update any forward-looking statements contained on this call or in any company presentation, even if the company's expectations or any related events, conditions or circumstances change.

Now I'd like to turn the call over to our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we are proud of the strong performance of our business and progress we are making on our long-term strategy.

During the second quarter and subsequent period, we continued to build on the growth of our tokenized reinsurance business, expanded the platform to include third-party opportunities and established a new AI infrastructure business focused on developing, owning and operating AI data centers and related infrastructure. Through SurancePlus, we have continued to build our track record on tokenized reinsurance. For the 2025, 2026 treaty year, our EtaCat Re and ZetaCat Re offerings targeted annual returns of 20% and 42%, respectively. We are pleased to report that these offerings exceeded their original targets, delivering annualized returns of 29.3% and 43.4%, respectively.

For the 2026 and 2027 treaty year, we successfully closed 5 tokenized reinsurance offerings on the Solana blockchain, raising $7.1 million in aggregated gross proceeds. These included a T20 and T42 offering with a current targeted annual return of 26% (sic) [ 20% ] and 32% (sic) [ 42% ], respectively, assuming no underwriting losses. The 5 offerings also included 3 third-party offerings associated with HCI Group, a leading Florida-based property and casualty insurance company and Fortex Re. HCI Re 2026 Series A targets an annual return of 242% (sic) [ 224%], HCI Re's 2026 Series B targets 122%, and HCI Re 2026 Series C targets 17% in each case, assuming no underwriting losses. This represents an important expansion of the SurancePlus platform beyond reinsurance originating through our own operations and demonstrates its ability to structure and tokenize reinsurance opportunities originated by third parties.

In parallel, we launched AI GridWorks, a newly formed Oxbridge subsidiary focused on developing, owning and operating AI data centers and related infrastructure. Since launching the initiative, we have moved quickly to assemble an experienced infrastructure team and advance our development pipeline. We believe SurancePlus and AI GridWorks provide Oxbridge with 2 distinct but complementary growth platforms, creating multiple avenues for long-term growth and shareholder value creation.

I will now turn the call over to Wrendon to take us through our financial results.

Thank you, Jay. I would like to remind you that our typical contract period is from June 1 to May 31 of the following year. Net income for the quarter ended June 30, 2026, was $176,000 or $0.02 basic and diluted income per share, compared to a net loss of $1.87 million or $0.25 basic and diluted loss per share for the quarter ended June 30, 2025. The increase in net income, decrease in net loss, is primarily due to a decrease in loss and loss adjustment expenses as there were no underwriting losses recorded for the period ended June 30, 2026. SurancePlus management fee income, along with reduced professional fees and overall compensation, contributed towards the net income results for the quarter.

Net income for the 6 months ended June 30, 2026, was $198,000 or $0.02 basic and diluted income per share compared to a net loss of $2.01 million or $0.28 per basic and diluted loss per share, for the 6 months ended June 30, 2025. The decrease in net loss is due primarily to a decrease in loss and loss adjustment expenses as there were no underwriting losses recorded for the period ended June 30, 2026. Again, SurancePlus management fee income, along with reduced professional fees and reduced overall compensation, contributed towards the improved result for the 6 months ended June 30, 2026.

Net premiums earned for the quarter ended June 30, 2026, decreased to $368,000 from $582,000 for the quarter ended June 30, 2025. The decrease is due to a lower weighted average rate on reinsurance contracts in force during the quarter as well as a lower amount of capital deployed into reinsurance contracts during the quarter when compared to the prior period.

Net premiums earned for the 6 months ended June 30, 2026 decreased to $924,000 from $1.11 million for the 6 months ended June 30, 2025. The decrease again is due to lower weighted average rate on reinsurance contracts in force during the 6-month period as well as a lower amount of capital deployed into reinsurance contracts during the 6-month period when compared with the prior period.

Our net investment income and other income for the 3 and 6 months ended June 30, 2026, decreased to $71,000 from $93,000 and $139,000 from $173,000, respectively, when compared with the prior comparable periods. Along with net premiums and management fee income, our total revenue for 3 and 6 months ended June 30, 2026, amounted to $940,000 and $1.5 million compared to $664,000 and $1.3 million in the prior year comparable period, respectively.

For the quarter ended June 30, 2026, total expenses, including policy acquisition costs and general and admin expenses, decreased to $647,000 from $3.6 million for the quarter ended June 30, 2025. The decrease is primarily due to no underwriting losses recognized for the quarter ended June 30, 2026. Reduced professional fees and reduced overall compensation also contributed to the decrease for the quarter.

For the 6 months ended June 30, 2026, total expenses decreased to $1.2 million from $4.2 million for the 6 months ended June 30, 2025. The decrease again is primarily due to no underwriting losses incurred and recognized for the period and reduced professional fees and reduced overall compensation also contributed towards the decrease.

As we have discussed before on our investor calls, we use various measures to analyze the growth and profitability of our business operations. For reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio and combined ratio. The loss ratio is the ratio of losses and loss adjustment expenses incurred to premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio decreased to 0% from 394% for the quarter ended June 30, 2026, when compared with the comparable period. The decrease was due to no underwriting losses being recorded for the quarter, whereas a full limit loss was recognized for one of the reinsurance contracts during the 3-month period ended June 30, 2025.

The loss ratio also decreased to 0% from 194.8% for the 6-month period ended June 30, 2026, when compared with the prior comparative period. The decrease was due to no losses being recorded during the 6-month period ended June 30, 2026, again, whereas a full limit loss was recognized for one of our reinsurance contracts during the similar 6-month period ended June 30, 2025.

Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and net premiums earned. The acquisition cost ratio increased marginally to 12% from 11% for the quarter ended June 30, 2026, when compared to the prior comparable period. The increase in acquisition cost ratio is due to reduced net premiums earned and marginal premium adjustments recognized during the quarter ended June 30, 2026, when compared to the prior year comparable period.

The acquisition costs increased marginally to 11.4% from 11% for the 6-month period ended June 30, 2026, when compared with the prior comparable period. Again, the increase in acquisition cost was due to reduced net premiums earned and marginal premium adjustments recognized during the 6-month period ended June 30, 2026, when compared with the prior year comparable period.

Our expense ratio, which measures operating performance, compares policy acquisition costs and general admin expenses with net premiums earned. For the quarter ended June 30, 2026, the expense ratio decreased to 175.8% from 227% for the quarter ended June 30, 2025.

For the 6 months ended June 30, 2026, the expense ratio decreased to 133.1% from 160.7% for the 6-month period ended June 30, 2025. The decrease in both periods are primarily due to reduced professional fees and reduced overall compensation during the quarter when compared to the prior year comparable period.

Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. For the 3 months ended June 30, 2026, the combined ratio decreased to 175.8% from 621% for the quarter ended June 30, 2025. The combined ratio also decreased to 133.1% from 355% for the 6-month period ended June 30, 2025. The decreases are primarily due to decreased underwriting losses as well as reduced professional fees and reduced overall compensation during the quarter and the 6-month period ended June 30, 2026, when compared with the prior comparable period.

Now turning to the balance sheet. Restricted cash and cash equivalents increased by $12.85 million to $19.82 million from $6.98 million as of December 31, 2025. The increase is the net result of the investment in new tokenized securities, the release of collateral from the 2025, 2026 reinsurance treaty contracts and premium deposits made during the 6 months ended June 30, 2026.

Now I'd like to turn the call back over to Jay, who will wrap up before we take your questions. Jay?

Thank you, Wrendon. As Wrendon mentioned, we have $19.82 million in restricted cash and cash equivalents as of June 30, 2026. Having said that, I would like to spend a few minutes looking ahead and expanding on how we see our 2 platforms developing.

First, SurancePlus. Since launching our reinsurance tokenization platform, SurancePlus has completed offerings across 4 consecutive treaty years, issuing approximately 1.27 million tokenized securities, raising more than $16 million in cumulative gross proceeds across multiple blockchain platforms, backing over $31 million of deployed capital in tokenized reinsurance contracts.

The addition of third-party reinsurance opportunities represents an important evolution of the platform. It demonstrates that SurancePlus can extend beyond reinsurance originated through Oxbridge and provide the infrastructure to structure and tokenize real-world assets originated by third parties. We believe this expands the potential of SurancePlus as we continue to develop our real-world asset strategies or RWAs.

Turning to AI GridWorks. AI GridWorks builds upon the broader RWA, or real-world asset, strategy we have established through SurancePlus. While SurancePlus has demonstrated our ability to structure and tokenize real-world assets, AI GridWorks expands our strategy into the development and ownership of the underlying physical infrastructure supported -- supporting the growth and artificial growth of artificial intelligence, or AI.

Our strategy is focused on identifying and securing strategic sites, developing powered land, and developing, owning and operating data centers infrastructure. We are initially targeting projects ranging from 10 to 100 megawatts with an initial focus around 50 megawatts, while maintaining flexibility to pursue larger opportunities when appropriate. To support this initiative, we have assembled an experienced AI infrastructure team with deep expertise across strategic real estate, site development, and power infrastructure and data centers. Our AI data center team brings experience originating close to 3 gigawatts of powered land opportunities.

On the infrastructure side, our leadership includes 7 years of data center infrastructure experience at Meta across 5 data center campuses, representing 2.5 gigawatts of deployed capacity, together with the extensive mission-critical infrastructure development experience. AI GridWorks is being developed first and foremost as an AI infrastructure business focused on developing, owning and operating the underlying physical infrastructure.

As AI GridWorks develops these assets, we intend to leverage the real-world asset structure, or RWA structuring and tokenization cap -- sorry, capabilities deployed by SurancePlus to tokenize interest in AI infrastructure assets and associated revenue streams. This creates a cohesive strategy for Oxbridge, developing and owning real estate assets while leveraging our established financial structure to structure and provide investor assets or access to those assets through tokenization.

We believe SurancePlus and AI GridWorks represent 2 complementary growth platforms for Oxbridge, providing multiple avenues for long-term growth and shareholder value creation. We create optionality at every stage of the data center value chain. Or put another way, this is a flexible, vertically integrated strategy. Our focus continues to remain on disciplined execution and creating long-term shareholder value.

With that, we are ready to open the call for questions. Operator, please provide the appropriate instructions.

[Operator Instructions] The first question we have is from Allen Klee of Maxim Group.

Good to hear from you guys and great to see all the steps going forward. For your AI data center initiatives, can you talk a little strategically of kind of what you're targeting, how you're thinking about like where it makes sense to do this and maybe the type of tenants and the type of -- I don't know, the type of like demand that it might be taking and any thoughts on the financing of it?

Wow, Allen, that's a lot to unpack over there with a small question. No, that's -- no, that's an absolutely perfect question, right? So our AI data centers, we're targeting -- we're not targeting gigawatt centers, right? We're, frankly, that's -- at this time, that's a step too far. What we are targeting is the nano data centers, 10 to 100 megawatts. That way, we have an opportunity to play in a space where we are not competing with some of the juggernauts in the space. We're targeting the Southeast of the U.S. The type of tenant will depend on, a, the location. It will also depend on the -- on various number of things over here.

But in talking to some of the larger AEC type companies, what we're finding is there is a significant amount of demand, but the demand is also dependent a little bit strategically, right? As part of this is what kind of data center you're building. But what we are doing and the way we look at this is flexibility. As we take down opportunities or as we look at opportunities, and we're looking at opportunity from the ground up, we have options and optionality. And the flexibility of that options and optionality gives us a better view of the potential tenant as that tenant develops or as that data center develops.

The next question we have is from Kent Engelke of Capitol Securities.

It seems like you guys always have a lot on the table. I think it's great all the activity you all are doing. Jay, can you expand a little bit more about on the optionality aspect? That's really interesting on a lot of different levels, especially on the vertical integration. Can you expand a little bit more on that?

Yes. Absolutely, Kent. So the way we are viewing our business, it's just not a publicly traded story, right? The story is a publicly traded company with deep experience in the -- in that realm. But then we've also deepened our bench with the execution team, the execution of the strategy. We have folks with deep subject matter knowledge, not only on the real estate side because this is a real estate play as well, but then also on the infrastructure side.

The infrastructure side, I have a gentleman that's been with Meta for the last 7.5 years. He's put together close to 3 gigawatts of AI data centers. So every step of the way, we have options. So hypothetically, as we go forward, I talked about real estate, as we move forward, there is a tremendous amount of value creation in getting -- in taking land and moving it into that next step where you have your entitlements that are put into place and you also have power that's your power letters. That creates a significant upside over there.

At that point, we have 2 options. We have a potential of either, a, moving forward and going vertical with the building or we can sell the asset. The multiple from where we start and where we would sell it is significant. The amount of value creation is significant. And we're going to be looking at multiple of these opportunities at any given time and moving forward with multiple of these opportunities at any given time. You take that step -- you take that one step further when you go vertical with this and you have your data center, you can section off your data center into data center halls, at which point you can simply be a landlord or you have tenants that come in over here because you have everything put together.

They will bring in their GPUs and you're off to the races. So you can have data center halls and you can put that strategy and a portion of that building, you can decide whether you want to be an operator of this data center and put in your own GPUs. So all along the way, there is not only value creation, but there's flexibility and the flexibility comes from every single step that we've taken from the ground up, making sure that we have not overcommitted or overpaid on any of these assets because we are controlling that value chain.

Now think about -- you asked about how does it play out with the -- with SurancePlus. I think it plays out beautifully in SurancePlus, right, because data centers are -- when you talk about RWA, it's a real-world asset. People understand data centers from good or bad, they understand data centers. They talk about the pluses, they talk about the minuses. It's a hot topic. But part of this hot topic over here is most people don't have an opportunity to invest in data centers because the dollar amounts that are used for an investor to come in, banks would want or investment houses or companies would want folks to write pretty significant checks.

SurancePlus, our other subsidiary, can fill that void. So not only can we raise capital through the traditional methods. Banks are looking at data centers hot and heavy. It's something that banks have -- there's huge opportunity for banks to come in over here and finance these things. But in addition, we have through, SurancePlus and our platform, people can come in with checks, with smaller size checks where we can do AML and KYC in close to 3 minutes, and they can wire in their funds or tokens or whatever it is that they're going to be sending in and now have a piece of a data center. So multiple levers to deploy in -- not only in financing these opportunities, but also multiple levers to deploy and making sure that both our businesses are very complementary to doing what we're looking to get done as we move forward.

So if I heard you correctly, you could use RWAs for part of the financing and raising funds and stuff like that, that's how the individual could actually own part of the data center itself.

Absolutely, absolutely. And I think it also helps a little bit to the story. I'm not saying it's the end all be all, but it helps in the story about folks, the popular acronym now is NIMBY, not in my backyard. It might help with that rhetoric when people see that they actually own or have an opportunity to own that piece of real estate or that data center, and it's part of their thought process, their investment strategy, tokenization.

Bring them in and let them share with some of the wealth.

Absolutely. Absolutely.

[Operator Instructions] At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Madhu for his closing remarks.

Thank you for joining us on today's call. We appreciate everyone joining us today on our -- and your continued interest in Oxbridge. We are excited about the opportunities ahead and the potential we see across both SurancePlus and AI GridWorks. We believe we have established a strong foundation for the next phase of Oxbridge's growth. Our priorities are clear, and our focus remains on disciplined execution across both businesses and creating long-term shareholder value, options and optionality, real-world assets, SurancePlus and AI GridWorks. We look forward to updating you on our progress. Thank you again for your time today. Operator?

Before we conclude today's call, I would like to remind everyone that a recording of today's call will be available for replay via a link available in the Investors section of the company's website. Thank you for joining us today for our presentation. You may now disconnect.

Good afternoon. Welcome to Oxbridge's First Quarter 2026 Earnings Call. My name is Denise, and I will be your conference operator this afternoon. [Operator Instructions] Joining us on today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon Timothy.

Following their remarks, we will open up the call for your questions. I would like to remind everyone that this call will be available via telephone replay until May 21, 2026. Details for the telephone replay are included in the press release issued today.

Now I would like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call. Please go ahead, sir.

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge Re's future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995.

Words such as anticipates, estimates, expects, intends, plans, projects and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties.

A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled Risk Factors contained in our Form 10-K filed on March 30, 2026, with the Securities and Exchange Commission.

The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition and the volatility of our earnings, which in turn can cause significant market price and trading volume fluctuations for our securities. Any forward-looking statements made on this conference call speak only as of the date of this conference call.

And except as required by law, the company undertakes no obligation to update any forward-looking statements contained on this call or in any company presentation, even if the company's expectations or any related events, conditions or circumstances.

Now I would like to turn the call over to our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we're proud of the strong performance of our business and progress we're making executing on our long-term strategy. At our core, we are a disciplined reinsurance business, writing fully collateralized policies covering property catastrophe risk.

We compete through selective data-driven underwriting with a focus on generating attractive risk-adjusted returns and long-term growth in book value per share. Our strategy centers on low frequency, high severity risks, where sufficient data exists to rigorously evaluate the risk return profile.

We emphasize disciplined risk selection, appropriate pricing and thoughtful structuring, supported by fully collateralization to ensure transparency and alignment. At the same time, we continue advancing SurancePlus and our broader real-world asset initiatives, expanding access tokenized reinsurance opportunities through strategic ecosystems relationships involving Solana, Alphaledger and LayerZero.

As we approach May 31, 2026, conclusion of the current contract season, our existing tokenized reinsurance offerings remain unaffected with the balance yield token currently tracking 25% ahead of its original 20% targeted return, while the high-yield token remains on track towards its 42% targeted return.

We believe this combination of underwriting discipline, platform development and expanding ecosystem relationships positions Oxbridge well as we continue executing on opportunities within the growing real-world asset market.

I will now turn the call over to Brandon to take us through our financial results. Wrendon?

Thank you, Jay. I would like to remind you that our typical contract period is from June 1 to May 31 of the following year. Net premiums written for the 3 months ended March 31, 2026, decreased to $555,000 from $595,000 for the quarter ended March 31, 2025.

The decrease is due to a lower weighted average rate on reinsurance contracts in during the quarter ended March 31, 2026, when compared with the prior period. Our net investment income and other income for the 3 months ended March 31, 2026, decreased to $68,000 from $29,000 from prior comparable period.

Along with net premiums, our total revenue amounted to $623,000 for the 3 months ended March 31, 2026, compared to $692,000 in the prior year comparable period. For the 3 months ended March 31, 2026, total expenses included policy acquisition costs and general admin expenses increased to $583,000 from $578,000 for the quarter ended March 31, 2025. The increase is primarily due to professional costs, investor relations and our work through subsidiary marketing.

Net income for the quarter ended March 31, 2026, was $22,000 or 0 basic and diluted income per share compared to a net loss of $139,000 or $0.02 basic and diluted loss per share for the prior year quarter. The decrease in net loss is primarily due to a decreased allocation of underwriting income to token holders as the company itself is a major contributor in the 2025, 2026 treaty contract in place.

Coupled with a decrease in unrealized loss on other investments during the quarter ended March 31, 2026, when compared with the prior period. As we have discussed before on our investor calls, we use various measures to analyze the growth and profitability of our business operations. For our reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio and combined ratio.

The loss ratio is a ratio of loss sales and loss adjustment expenses include the premiums earned and it measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the 3 months ended March 31, 2026, when compared with the prior year comparative period. Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and net premiums earned.

The acquisition cost ratio increased marginally to 11% for the quarter ended March 31, 2026, up from 10.9% for the prior year quarter. Our expense ratio, which measures operating performance compares policy acquisition costs and general and admin expenses with net premiums earned. For the 3-month period ended March 31, 2026, the expense ratio increased to $105,000 from $95,800 for the 3 months ended March 31, 2025.

The increase is primarily due to increased professional costs, investor relations and our work through marketing and operations. Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. For the 3 months ended March 31, 2026, the combined ratio increased to 105% from 95.8% for the 3 months ended March 31, 2025. The increase again is primarily due to increased professional costs related to Investor Relations and our W3 subsidiary marketing and operations.

Now turning to the balance sheet. Cash and cash equivalents and restricted cash and cash equivalents increased by $1.21 million to $8.19 million, up from $6.98 million as of December 31, 2025. The increase is a net result of premium deposits made in the 3-month period ended March 31, 2026, as well as $1 million proceeds from a short-term loan that was secured.

I'll now turn the call back over to Jay to wrap up before we take your questions. Jay?

Thank you, Wrendon. We are encouraged by the strong performance of our 2025, '26 tokenized reinsurance contracts. As we approach the conclusion of the current contract season, our existing offerings remain unaffected with the balance sheet token currently tracking 25% ahead of its original 20% targeted return, while the high-yield token remains on track towards this 42% targeted return.

These results reflect our disciplined underwriting approach and further demonstrate the ability of tokenized reinsurance structures to provide differentiated uncorrelated returns with the approximately $750 billion global reinsurance market. We have also continued advancing the reach and visibility of SurancePlus platform through strategic relations involving Solana, Alphaledger and LayerZero, supporting expanded interoperability and ecosystem access across more than 160 blockchain networks.

We believe these relationships position SurancePlus within a growing ecosystem for real-world asset adoption. As we look ahead to the 2026, '27 underwriting cycle, we are preparing our T20 and T42 offerings targeting annual returns of 20% and 42%, respectively. Recent forecast from the Colorado State University indicate the potential for a more constructive hurricane environment relative to recent years, supported in part by anticipated El Nino conditions.

In parallel, we are making meaningful progress in advancing opportunities to broaden the SurancePlus model into additional high-quality cash-generating asset categories, including initiatives involving tokenized data center revenue streams and infrastructure aligned with the continued growth of artificial intelligence. As of March 31, 2026, the company reported $8.19 million in cash and restricted cash, supporting our ongoing strategic initiatives and long-term growth opportunities.

Overall, we remain focused on disciplined execution, expanding ecosystem relationships and scaling our business through our growing real-world asset initiatives as we continue building long-term shareholder value. With that, we are ready to open the call for questions.

Operator, please provide the appropriate instructions.

[Operator Instructions] The first question we have comes from Kent Engelke of Capitol Securities.

Again, I'm very interested in the comments that you're making about using tokenized data center for revenue streams and the like and just the infrastructure growth within AI and stuff like that.

Larry Fink the other day, predicted that there's going to be a massive futures market for computing power using tokenized assets and the like. Can you give a little bit more color on that really, I think, really cool part of your organization?

Yes. Thank you, Kent. We've been tokenizing reinsurance contracts, right? So reinsurance is a significantly large TAM market. The AI data center space over here could probably dwarf that significantly as well. And since we've been tokenizing reinsurance, we've made great strides over there.

And we could potentially tokenize other opportunities as well, while it's a little early for us to talk about that just yet. But in the past, people have asked us, when would you probably consider tokenizing other items, right? And I think the timing is right.

As you just mentioned, not only Larry Fink, but various other folks have talked about tokenization. And we seem to have -- we seem to be doing this under the 4 corners of the SEC. So I believe we have an amazing opportunity ahead of us, and we definitely plan on seizing that.

Cool. So it is an exciting new industry on so many different levels, competing with some very deep pocketed people that see something as similar as you do. And obviously, hoping that Oxbridge is going to be at the forefront of all this.

Yes, absolutely.

[Operator Instructions] We have a question from Duane Roberts of Charis Industries.

When you're talking -- when you're saying that you're looking to tokenize -- maybe I didn't hear it right, you're going to looking to tokenize other assets. Is that correct? Besides reinsurance?

Yes, potentially, yes. But I, unfortunately, Duane, can't speak in detail about that. It's opportunities we're still evaluating. But as I just mentioned, if we're able to tokenize an elusive asset such as reinsurance, it gives us -- we feel well about the potential of SurancePlus going forward with other assets.

Okay. You may not comment on this, like how hard is that like the process? The one thing that you mentioned earlier with the other caller was that it was under the SEC, so which is I would assume is significant. So how you're looking at other potential assets back office part, all of the software on it? How hard is it?

Yes, it's extremely hard, right? Because if it wasn't hard, other people will be doing it. And because the barrier to entry is also high, it's an opportunity that Oxbridge can take advantage of it.

[Operator Instructions] At this stage, there seems to be no further questions on the conference. I will now hand back to Jay Madhu for closing remarks. Please go ahead, sir.

Thank you for joining us on today's call. Before we conclude, I would like to extend my gratitude to our employees, business partners and investors for their unwavering support. I particularly want to acknowledge our dedicated Oxbridge team whose extensive experience has been instrumental in navigating and advancing our business amidst these challenging circumstances.

We anticipate providing you with future updates on our progress during our next call. And should you have any additional questions, please do not hesitate to reach out to us any time. Once again, thank you for your time and attention today and for your ongoing interest in Oxbridge. Operator?

Thank you, sir. Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. You may now disconnect your lines.

Good afternoon. Welcome to Oxbridge's Fiscal 2025 Earnings Call. My name is Shamali, and I will be your conference operator this afternoon. [Operator Instructions]

Joining us for today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon Timothy. Following their remarks, we will open up the call for your questions. I would like to remind everyone that this call will be available via telephone replay until April 13, 2026. Details for the telephone replay are included in the press release issued today.

Now I would like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call.

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge's future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipates, estimates, expects, intends, plans, projects and other similar words and expressions are intended to signify forward-looking statements.

Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from forward-looking statements is included in the section entitled Risk Factors contained in our Form 10-K filed today, March 30, 2026, with the Securities and Exchange Commission. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition and the volatility of our earnings, which in turn could cause significant market price and trade volume fluctuations for our securities.

Any forward-looking statements made on this conference call speak only as of the date of this conference call. And except as required by law, the company undertakes no obligation to update any forward-looking statements contained on this call or in any company presentation, even if the company's expectations or any related events, conditions or circumstances change.

Now I'd like to turn the call over to our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we are proud of the significant steps we have taken to fortify and innovate our business by bringing reinsurance on chain and broadening investor access. At our core, we are a disciplined reinsurance business, writing fully collateralized policies covering property catastrophe risk. We compete through selective data-driven underwriting with a focus on generating attractive risk-adjusted returns and long-term growth in book value per share.

Our strategy centers on low frequency, high severity risk where significant data exists to rigorously evaluate the risk return profile. We emphasize disciplined risk selection, appropriate pricing and thoughtful structuring, supported by our fully collateralization to ensure transparency and alignment. Building on this foundation, SurancePlus continues to expand our ability to bring reinsurance on chain in a compliant and scalable manner, broadening access to an asset class that has historically been limited to institutional partnerships.

We believe this combination of underwriting discipline and evolving platform capabilities positions Oxbridge well as we continue to execute our strategy and pursue opportunities within the growing real estate asset market -- pardon me, growing real-world asset market.

We now turn things over to Wrendon to take us through our financial results. Wrendon?

Thank you, Jay. I would like to remind you that our typical contract period is from June 1 to May 31 of the following year. Net premiums earned for the 3 months ended December 31, 2025, decreased to $555,000 from $595,000 for the quarter ended December 31, 2024. The decrease is due to lower weighted average rate on reinsurance contracts in force during the quarter ended December 31, 2025, when compared with the prior period.

Net premiums earned for the years ended December 31, 2025 and 2024 was approximately $2.3 million. Our net investment income for the 3 months ended December 31, 2025, increased to $63,000 from $68,000 from prior comparable period. There was a decrease in the fair value of equity securities during this period. And along with net premiums, our total revenue amounted to $576,000 for the 3 months ended December 31, 2025, compared to $422,000 in the prior year comparable period.

Our net investment and other income for the fiscal year ended December 31, 2025, increased to $314,000 from $248,000 from the prior year comparable period. Along with net premiums, change in fair value of equity securities and other investments resulted in total revenues of $2.58 million for the fiscal year ended December 31, 2025, compared to $546,000 in the prior year comparable period.

Regarding total expenses for the 3 months ended December 31, 2025, total expenses, including policy acquisition costs and general and admin expenses and underwriting costs increased to $1.04 million from $497,000 for the quarter ended December 31, 2024. The increase is primarily due to the recording of underwriting losses incurred on Hurricane Milton, which occurred in 2024 as a result of adverse loss development as well as increased general and admin expenses when compared with the prior period.

For the year ended December 31, 2025, total expenses, which includes policy acquisition costs, loss and loss adjustment expenses and general and admin expenses increased to $6.04 million from $2.17 million for the year ended December 31, 2024. Again, the increase is due primarily to the recording of losses on reinsurance contracts affected by Hurricane Milton in 2024, increased professional costs relating to investor relations, our web3 subsidiary tokenization costs, S-3 related costs, increased human resources and personnel and legal expenditures.

Net income for the quarter ended December 31, 2025, was $120,000 or $0.02 per basic and diluted income per share compared to a net loss of $460,000 or $0.05 basic and diluted loss per share for the quarter ended December 31, 2024. The decrease in net loss is primarily due to the allocation of underwriting losses to token holders coupled with a decrease in negative change in fair value of equity securities and unrealized loss on other investments, an increase in investment income and other income during the quarter ended December 31, 2025, when compared with the prior period.

Net loss for the year December 31, 2025, was $2.08 million or $0.28 basic and diluted loss per share compared to a net loss of $2.73 million or $0.45 basic and diluted loss per share for the year ended December 31, 2024. The change is primarily due to higher overall revenues driven by a significant decrease in unrealized loss on investments, partially offset by higher expenses and higher underwriting losses borne by token holders during the year ended December 31, 2025, when compared with the prior period.

As we have discussed before on our investor calls, we use various measures to analyze the growth and profitability of our business operations. For our reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio and combined ratio. The loss ratio is the ratio of loss and loss adjusted expenses incurred to premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio increased to 80.9% for the 3-month period ended December 2025 when compared with the prior comparative period. The loss ratio increased 119.9% for the fiscal year ended December 31, 2025, when compared with the prior comparative period. These increases were due to losses recognized on reinsurance contracts affected by Hurricane Milton, which was a loss event occurring in 2024.

Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and net premiums earned. The acquisition cost ratio remained consistent at 11% for the quarter and year ended December 31, 2025, when compared with the prior comparative period. Our expense ratio measures operating performance compares policy acquisition costs and general and admin expenses with net premiums earned. For the 3 months ended December 31, 2025, the expense ratio increased to 106.7% from 83.5% for the 3-month period ended December 31, 2024.

For the year ended December 31, 2025, the expense ratio increased to 144.2% from 94.3% for the year ended December 31, 2024. The increase are primarily due to increased professional costs relating to our Investor Relations and marketing, our web3 subsidiary costs, renewed S-3 related costs, increased human resources and personnel and legal costs during the quarter and year ended December 31, 2025, when compared with the prior comparable periods.

Our combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and expense ratio. For the 3-month period ended December 31, 2025, the combined ratio increased to 187.6% from 83.5% for the 3-month period ended December 31, 2024. For the year ended December 31, 2025, the combined ratio increased to 264% from 94.3% for the year ended December 31, 2024. Again, the increase is due to higher general and admin expenses and losses incurred due to Hurricane Milton that have been recorded during the quarter and the year ended December 31, 2025, when compared with prior comparable periods.

Now turning to the balance sheet. Our investment portfolio decreased to 0 at December 31, 2025, from $113,000 at the prior year-end, primarily due to the sale of our 2 equity securities during the year ended December 31, 2025. Cash and cash equivalents and restricted cash and cash equivalents increased by $1.08 million to approximately $7 million from $5.89 million as of December 31, 2024. The increase is due primarily to new collateral deposits for the current treaty year ended May 31, 2026, more than offset in fund being released from the underlying trust or loss payments during 2025 relating to Hurricane Milton.

I'll now turn the call back over to Jay to wrap up before we take your questions. Jay?

Thank you, Wrendon. We are encouraged by the performance of our 2025 and 2026 tokenized reinsurance contracts. The balance yield token is tracking 25% ahead of its 20% target, and the high-yield token is tracking its 42% target. These results reflect our disciplined underwriting approach and demonstrate the ability of our platform to deliver attractive uncorrelated returns within the global reinsurance market.

We have also made meaningful progress expanding our platform through strategic relationships, including our entry into the Solana ecosystem and expanded distribution across more than 160 blockchain networks enabled by Layer 0 through the Alphaledger platform. These developments significantly broaden access to our offering and position SurancePlus within one of the leading blockchain ecosystems for real-world asset adoption.

As we look ahead to the 2026, 2027 contract cycle, we are targeting returns of 20% and 42% for our T20 and T42 offerings. Industry commentary, including reports from Artemis include -- indicate that El Nino conditions may support a favorable risk environment, and we are optimistic about the opportunities these presents. In parallel, we are exploring opportunities to extend our model into additional high-quality cash-generating assets such as the tokenization of data center revenue streams, particularly as it relates to the growth of artificial intelligence, AI.

We also believe our current market valuation does not fully reflect the strength of our balance sheet, including our cash and restricted cash positions nor the opportunities we are actively evaluating to significantly drive shareholder value. Overall, we remain focused on our disciplined execution, expanding distribution and scaling our platform as we continue to build long-term shareholder value.

With that, we are ready to open the call for questions.

[Operator Instructions]

Our first question comes from the line of Peter Roy with Bloomberg.

Peter are you on the line? And it appears that Peter, there's no one on the line of Peter.

[Operator Instructions]

Our next question comes from the line of Kent Engelke with Capitol Securities.

Jay, in the press release, you mentioned this 2 different times, and you also said it in your comments as well. Can you expand a little bit more about when you're talking about the tokenization of artificial intelligence infrastructure. Can you expand on that at all? That sounds really, really intriguing. On top of that, it sounds like you got a bunch of stuff going on. And some of the stuff is -- looks like it's just about to hit. But first off, can you expand on the tokenization of data center revenue?

Yes, absolutely. Thanks, Ken, for that question. So the data center revenue, let me kind of back -- take it back a little further, right? So SurancePlus, the reinsurance tokenization, that's moving along. But reinsurance cycles, as you guys are well aware, are June 1 to May 31 of the following year. So once we get through this next month, 1.5 months, 2 months, we look for new and additional things to go forward to, right?

So the data center revenue streams, what we're considering doing is we're evaluating entering into strategic relationships with partners, developers, customers, operators. But the interesting thing over here is not only would that be significant for our shareholder valuation for Oxbridge, but also significant value proposition for SurancePlus. So while we are working on the other endeavors that we've already talked about, we're evaluating some extremely interesting endeavors that will be -- that could be very interesting.

Look forward to following that as you go along. Also, it appears as though you have plenty of cash to go forward and the like. Am I reading that correctly in regards to your cash balances and your restricted cash?

Yes. Yes. We have about $6.9 million in cash and restricted cash. That puts us in great position not only to do things with the reinsurance tokenization, but also to evaluate other opportunities. So great position, great opportunities ahead.

I look forward to following you -- have been following you for a long time and it looks like there's just a bunch of things that is about to come to fruition and look forward to seeing it.

At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Madhu for his closing remarks.

Thank you for joining us on today's call. Before we conclude, I would like to extend my gratitude to our employees, business partners and investors for their unwavering support. I particularly want to acknowledge our dedicated Oxbridge team whose extensive expertise has been instrumental in navigating and advancing our business. We anticipate providing you with further updates to our progress during the next call. And should you have any additional questions, please do not hesitate to reach out to us any time. Once again, thank you for your time and attention today and for your ongoing interest in Oxbridge. Operator?

Before we conclude today's call, I would like to remind everyone that a recording of today's call will be available for replay via a link available in the Investors section of the company's website. Thank you for joining us today for our presentation. You may now disconnect.

Good afternoon. Welcome to Oxbridge's Third Quarter 2025 Earnings Call. My name is Rochelle, and I will be your conference operator this afternoon. [Operator Instructions] Joining us for today's presentation is Oxbridge's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon Timothy. Following their remarks, we will open up the call for your questions.

I would now like to remind everyone that this call will be available via telephone replay until November 20, 2025. Details for telephone replay are included in the press release issued today.

Now I would like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge, who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call. Please go ahead.

Thank you, operator. During today's call, there will be forward-looking statements made regarding future events, including Oxbridge future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipates, estimates, expects, intends, plans, projects and other similar words and expressions are intended to signify forward-looking statements.

Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled Risk Factors contained in our Form 10-K filed March 26, 2025, with the Securities and Exchange Commission.

The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition and the volatility of our earnings, which could, in turn, cause significant market price and trading volume fluctuations for our securities. Any forward-looking statements made on this conference call speak only as of the date of this conference call. And except as required by law, the company undertakes no obligation to update any forward-looking statements contained on this call or in any company presentation, even if the company's expectations or any related events, conditions or circumstances change.

Now I would like to turn the call over to our Chairman, President and Chief Executive Officer, Jay Madhu. Jay?

Thank you, Wrendon, and welcome, everyone. Thank you for joining us today. Let me start by saying we are proud of the significant steps we have taken to fortify and innovate our business by bringing reinsurance on chain and broadening investor access. While we remain solidly rooted in our core reinsurance business, underwriting fully collateralized policies that cover property losses from specific catastrophes, we continue to compete effectively with large carriers by focusing on selective data-driven underwriting.

Our objective is to achieve long-term growth in book value per share by writing business on a selective and opportunistic basis that will generate attractive underwriting profits relative to risk. We specialize in low frequency, high severity risk where sufficient data exists to analyze the risk return profile with discipline.

We are intentional about risk selection, pricing and structure, and we maintain full collateralization to protect counterparties and ensure transparency. Building on this foundation, in 2022, we started SurancePlus, our Web3 real-world asset or RWA subsidiary dedicated to bringing reinsurance on chain.

SurancePlus specializes in democratizing tokenized real-world assets or RWAs, offering tokenized reinsurance securities as alternative investment opportunities. These securities leverage blockchain technology to support transparency and regulatory compliance, representing a meaningful advantage in the digital securities market. This initiative is designed to broaden investor participation, intending opportunities beyond what traditionally has been a select group of ultra-high net worth investors.

We believe we are the first publicly traded company to issue tokenized reinsurance securities. We are advancing this focus and momentum. Our blend of disciplined underwriting and modern compliant technology is positioning Oxbridge for the opportunities ahead.

Looking ahead, we remain focused on expanding Oxbridge's presence in the RWA and Web3 sector. In summary, we maintain a strong sense of optimism regarding the long-term outlook of our core reinsurance business alongside the successful integration of SurancePlus as we embrace the RWA market more comprehensively. I will turn things over now to Wrendon to take us through our financial results. Wrendon?

Thank you, Jay. I'd like to remind you that our typical contract period is from June 1 to May 31 of the following year. Net premiums earned for the quarter ended September 30, 2025, decreased to $555,000 from $595,000 for the quarter ended September 30, 2024. The decrease is due to lower weighted average rate on reinsurance contracts in force during the quarter ended September 30, 2025, when compared with the prior period.

Net premiums earned for the 9-month period ended September 30, 2025, increased to $1.73 million from $1.71 million for the 9-month period ended September 30, 2024. The increase is due to higher weighted average rate on reinsurance contracts in force during the 9-month period ended September 30, 2025, when compared to the prior period.

Our net investment income and other income for the 3 months ended September 30, 2025, increased to $79,000 from $62,000 from prior year third quarter. There was an increase in the fair value of equity securities during this period of $11,000. And along with net premiums, our total revenue amounted to $645,000 for the 3-month period ended September 30, 2025, compared to $205,000 in the prior year third quarter.

Our net investment and other income for the 9 months ended September 30, 2025, increased to $251,000 from $188,000 from the prior period. The lower net premiums and along with the change in the fair value of equity securities and other investments resulted in total revenues of $2 million for the 9-month period ended September 30, 2025, compared to $124,000 in the prior year.

For the 3 months ended September 30, 2025, total expenses, including policy acquisition costs general and admin expenses increased to $815,000 from $498,000 for the quarter ended September 30, 2024. The increase is primarily due to increased professional costs related to Investor Relations, our Web3 subsidiary tokenization costs, S-3 related costs, increased human resource and personnel costs and legal expenditures when compared with prior comparable period.

For the 9 months ended September 30, 2025, total expenses, including policy acquisition costs, loss and loss adjustment expenses and general and admin expenses increased to $4.99 million from $1.67 million for the 9 months ended September 30, 2024. The increase is primarily due to the recording of full limit loss on one of our reinsurance contracts during the quarter ended June 30, 2025, along with increased professional costs, increased human resource and personnel costs and legal expenditures.

Net income for the quarter ended September 30, 2025, was $187,000 or $0.02 to basic and diluted loss per share compared to a net loss of $540,000 or $0.09 basic and diluted loss per share for the quarter ended September 30, 2024. The decrease in net loss is primarily due to the decrease in the unrealized loss on other investments during the quarter ended September 30, 2025, when compared with the prior period.

Net loss for the 9 months ended September 30, 2025, was $2.19 million or $0.30 basic and diluted loss per share compared to a net loss of $2.7 million or $0.37 basic and diluted loss per share for the 9 months ended September 30, 2024.

Again, the decrease in net loss is primarily due to the decrease in unrealized loss on other investments in the 9-month period ended September 30, 2025, when compared with the prior period.

As we have discussed before on investor calls, we use various measures to analyze the growth and profitability of our business operations. For reinsurance business, we measure underwriting profitability by examining our loss ratio, acquisition ratio, expense ratio and combined ratio. Our loss ratio, which measures underwriting profitability, is the ratio of losses and loss adjustment expenses includes net premiums.

Loss ratio. The loss ratio is the ratio of loss adjustment expenses incurred the premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the 3-month period ended September 30, 2025, when compared with the prior comparative period. The loss ratio, however, increased to 132.4% for the 9-month period ended September 30, 2025, when compared with the prior comparative period. This was due again to the full limit loss on one of our reinsurance contracts affected by Hurricane Milton.

Our acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs to net premiums earned. The acquisition cost ratio remained consistent at 11% for the quarter and 9-month period ended September 30, 2025, when compared to the prior comparative period.

The expense ratio, which measures operating performance compares policy acquisition costs and general and admin expenses with net premiums earned. For the quarter ended September 30, 2025, the expense ratio increased to 146.8% from 83.7% for the 3-month period ended September 30, 2024. For the 9-month period ended September 30, 2025, the expense ratio increased to 156.2% from 98% for the 9-month period ended September 30, 2024. The increase is primarily due to the increased professional costs related to the investor relating to Investor Relations of overseas subsidiary, marketing and operations, renewed S-3 related costs, increased human resources, personnel and legal expenditures during the quarter ended September 30, 2025, when compared with prior comparable period.

Now turning to the balance sheet. Our investment portfolio increased to $115,000 at September 30, 2025, from $113,000 at the prior year-end, primarily due to the increase in fair value of the equity securities during the 9-month period ended September 30, 2025.

Cash and cash equivalents and restricted cash and cash equivalents increased by $1.28 million to $7.18 million from $5.9 million at December 31, 2024. The increase is the net result of premium deposits during the 9-month period ended September 30, 2025, the registered direct offering that generated $2.7 million net of expenses and payment of Hurricane Milton losses and general and admin expenses.

Now I'd like to turn the call back over to Jay to wrap up before we take your questions. Jay?

Thank you, Wrendon. We are encouraged by the compelling performance of our 2025, 2026 tokenized reinsurance contracts. The Balanced Yield Token, EtaCat Re is on pace to achieve approximately 25%, exceeding its 20% target, while the High Yield Token, ZetaCat Re remains on track to achieve its 42% return target. These results reflect disciplined underwriting and show how our tokenized platform is delivering attractive high-quality uncorrelated returns within the $750 billion TAM for reinsurance.

Equally important, our structure is built for transparency and alignment. We write fully collateralized one-on-one contracts and do not use leverage. Our risk selection focuses on low frequency, high severity perils, where the data support rigorous analysis for expected loss and trail risk -- tail risk, pardon me.

Tokenization provides compliant digital access and enables clearer, more frequent reporting for investors. Looking ahead, we are evaluating a move towards regular dividend payouts for our security-backed CatRe tokens, moving away from a purely annual payout model. This new approach aligns with current Web3 market demand and investor preference.

Consistent presence at marquee industry events continues to expand our partner platform and investor pipeline and elevate awareness across traditional finance and Web3. Since the prior quarter updates, we have participated in TOKEN2049 in Singapore, Rare Evo, which is in Las Vegas and Spectrum Cayman in Grand Cayman.

Operationally, we are focused on 3 priorities: one, maintaining underwriting quality and diversification across cedents and perils; two, scaling compliant distribution channels that support broadened investor participation; and three, advancing product enhancements such as regular dividends that improve accessibility without compromising risk controls.

Taken together, these efforts position Oxbridge and SurancePlus to deepen our roles in bringing reinsurance returns on chain. With continued discipline, strategic relationships and technology-driven product innovation, we remain focused on building long-term shareholder value and expanding investor access to this unique uncorrelated asset class. With that, we are open to calls for questions.

[Operator Instructions] And it appears there are no questions. I will turn the call back over to the speakers for any additional or closing remarks.

Thank you for joining us on today's call. Before we conclude, I would like to extend my gratitude to our employees, business partners and investors for their unwavering support.

I particularly want to acknowledge our dedicated Oxbridge team whose extensive expertise has been instrumental in navigating and advancing our business amidst these challenging circumstances. We anticipate providing you with further updates on our progress during our next call. And should you have any additional questions, please do not hesitate to reach out to us any time. Once again, thank you for your time and attention today and for your ongoing interest in Oxbridge. Operator?

Thank you. That will conclude today's call. We thank you for your participation. You may now disconnect.