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Subsequent Events | 6 Months Ended
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Jun. 30, 2025
Subsequent Events [Abstract] |
Subsequent Events | Subsequent Events The Company has evaluated events that occurred subsequent to June 30, 2025 through the date these condensed consolidated financial statements were issued for matters that required disclosure or adjustment in these condensed consolidated financial statements. Reinsurance Effective July 1, 2025, KICO entered into new excess of loss and catastrophe reinsurance treaties (see Note 6 – Property and Casualty Insurance Activity - “Reinsurance”). The new catastrophe reinsurance treaties includes the issuance of a $125,000,000 catastrophe bond ("Series 2025-1 Notes"). The Series 2025-1 Notes were priced at 4.5% and issued through a Bermuda-registered special purpose insurer, 1886 Re Ltd., providing KICO with $125,000,000 of collateralized reinsurance protection. The notes offer multi-year protection against named storm events across New York, New Jersey, Connecticut, Massachusetts and Rhode Island on an indemnity trigger and per-occurrence basis. The notes, which were structured and placed by Aon Securities LLC, will cover four annual risk periods from July 1, 2025, through June 30, 2029. Income Taxes On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted. The Act includes significant federal tax law changes which, among other impacts, modify and make permanent certain business tax provisions originally enacted in the 2017 Tax Cuts and Jobs Act. The Act is subject to further clarification from the issuance of future technical guidance by the U.S. Department of Treasury. The Company is currently evaluating the impacts of the Act but does not expect it to have a material impact on its results of operations or financial condition. Dividend Declared On July 22, 2025, the Company’s Board of Directors approved a quarterly dividend of $0.05 per share payable in cash on August 26, 2025 to stockholders of record as of the close of business on August 11, 2025 (see Note 8 – Stockholders’ Equity). Employment Agreement - New Chief Financial Officer Randy Patten, Vice President, Treasurer and Chief Financial Officer (effective August 25, 2025) On July 23, 2025, the Company and Randy Patten entered into an employment agreement (the “Patten Employment Agreement”) pursuant to which Mr. Patten will serve as the Company’s Chief Financial Officer, Vice President and Treasurer. Mr. Patten will also serve as KICO’s Chief Financial Officer, Vice President and Treasurer. The Patten Employment Agreement will be effective as of August 25, 2025 (the "Effective Date") and will expire on August 25, 2028 (the "Expiration Date"). The term of Patten Employment Agreement shall automatically be extended for one year periods beyond the Expiration Date unless either party provides written notice to the other party, no later than four months preceding the Expiration Date (or the end of the Term, if extended) of its or his desire that the term of this Agreement not be extended. Pursuant to the Patten Employment Agreement, Mr. Patten is entitled to receive an annual base salary of $400,000 and shall participate in the Company's Bonus Plan and SLT RSA bonus (see Note 12 – Employee Benefit Plans, Employee Bonus Plan). In accordance with the Bonus Plan, Mr. Patten's Cash Bonus target will be 25% of his base salary, and in no event, will the Cash Bonus for the calendar year ending December 31, 2025 be less than $35,000. On or about the Effective Date, the Company will pay to Mr. Patten a sign-on bonus of $200,000 (the “Sign-on Bonus”). In the event that, prior to the first anniversary of the Effective Date, Mr. Patten's employment with the Company is terminated by the Company for cause or by the Employee without good reason, Mr. Patten would be obligated to promptly repay the Sign-on Bonus to the Company. At its option, the Company shall have the right to offset such Sign-on Bonus repayment obligation against any and all amounts payable to Mr. Patten. On or about the Effective Date, Mr. Patten will be entitled to receive a restricted stock grant of a number of shares of Common Stock determined by dividing $600,000 by the fair market value of the Company’s Common Stock on the date of grant. Such stock grant will become vested with respect to 25% of the award on each of the first and second anniversary dates of the grant date and 50% on the third anniversary dates of the grant date. There were no other subsequent events identified requiring recognition or disclosure in these condensed consolidated financial statements.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 855 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/855/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 855 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483399/855-10-50-2 + Details
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