14. LEASES

 

Operating lease right-of-use assets and operating lease liabilities are recognized in the consolidated balance sheets. We determine if a contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Lease agreements that have lease and non-lease components, are accounted for as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

 

The Company has two operating lease obligations namely for the Company’s office facilities located at Suite 201, 42 Edward Street Grand Cayman, Cayman Islands and residential space at Turnberry Villas in Grand Cayman, Cayman Islands. At December 31, 2025, the office lease has a remaining lease term of approximately fourteen (14) months. The residential lease term ended on December 31, 2025 and was renewed for a period of one (1) year.

 

 

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes to Consolidated Financial Statements, Continued

 

14. LEASES (continued)

 

The components of lease expense and other lease information as of and during the years ended December 31, 2025 and 2024 are as follows:

 

(in thousands)  2025   2024 
   Year Ended December 31, 
(in thousands)  2025   2024 
Operating Lease Cost (1)  $114   $107 
           
Cash paid for amounts included in the measurement of lease liabilities          
Operating cash flows from operating leases  $114   $107 

 

(1) Includes short-term leases

 

(in thousands)  2025   2024 
   At December 31, 
(in thousands)  2025   2024 
Operating lease right-of-use assets  $43   $148 
           
Operating lease liabilities  $43   $148 
           
Weighted-average remaining lease term - operating leases   0.75 years     1.18 years  
           
Weighted-average discount rate - operating leases   9.5%   9.03%

 

Future minimum lease payments under non-cancellable leases as of December 31, 2025 and 2024, reconciled to our discounted operating lease liability presented on the consolidated balance sheets are as follows:

 

(in thousands)  2025   2024 
   At December 31, 
(in thousands)  2025   2024 
2025  $-   $114 
2026  $39   $39 
thereafter  $6   $6 
Total future minimum lease payments  $45   $159 
           
Less imputed interest  (2)   (11)
Total operating lease liabilities  $43   $148 

 

 

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes to Consolidated Financial Statements, Continued

 

Historical Timeline

Fiscal YearFiled
2025Mar 30, 2026Showing above
2024Mar 26, 2025
2023Mar 26, 2024
2022Mar 30, 2023
2021Mar 30, 2022
2020Mar 29, 2021
2019Mar 23, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.