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INVESTMENTS

9 Months Ended

Sep. 30, 2024

Investments, All Other Investments [Abstract]

4. INVESTMENTS

The Company from time to time invests in fixed-maturity debt securities and equity securities, with its fixed-maturity debt securities classified as available-for-sale. At September 30, 2024 and December 31, 2023, the Company did not hold any available-for-sale securities.

There were no sales of equity securities for three months ended September 30, 2024, nor the three- and nine-month periods ended September 30, 2023. Proceeds received, and the gross realized gains and losses from sale of equity securities, for the nine-month period ended September 30, 2024 are as follows:

	Equity securities, Gross proceeds from sales		Equity securities, Gross Realized Gains		Equity securities, Gross Realized Losses
	Gross proceeds from sales		Gross Realized Gains		Gross Realized Losses
	($ in thousands)
Nine Months Ended September 30, 2024
Equity securities	$	307	$	-	$	-

Other Investments

On August 7, 2023, OXAC held an extraordinary general meeting at which the business combination with Jet Token, Inc. was approved by OXAC shareholders. In conjunction with the business combination, OXAC was redomesticated as a Delaware entity, and changed its name to Jet.AI Inc. The business combination was closed on August 10, 2023, and on August 11, 2023, OXAC common stock and warrants began trading on the Nasdaq Global Market under the new ticker symbols JTAI and JTAIW.

The Company’s beneficial interests in Jet. AI’s common stock, public warrants and Series A-1 Preferred Shares are recorded at fair value and are classified in “Other Investments” on the consolidated balance sheets. The fair value calculation of the Company’s beneficial interest in Jet.AI’s common stock and public warrants is dependent on the observable trading prices of JetAI’s common stock and public warrants. The fair value calculation of the Company’s beneficial interest in the Series A-1 Preferred Share is estimated to be the pro-rata original principal amount of the Preferred Share due to the short-term nature.

The Sponsor holds 575 Series A-1 preferred shares with purchase price of $1,000 each, and previously held 2,875,000 ordinary shares along with 4,897,500 warrants. One of the Company’s executive officers is an independent member of Jet.AI’s board. The Company’s wholly-owned licensed reinsurance subsidiary, Oxbridge Reinsurance Limited (“Oxbridge Reinsurance”), was the lead investor in the Sponsor and at June 30, 2024, held the equivalent of 1,423,827 of Jet.AI Inc’s common stock (NASDAQ: JTAI) and 3,094,999 of Jet.AI Inc’s warrants (NASDAQ: JTAIW). On July 29, 2024, the Company’s 3,094,999 warrants were converted into 945,211 of Jet.AI’s common stock in accordance with Jet.AI’s Tender Offer Statement (as amended) as filed with the Securities and Exchange Commission on July 23, 2024. In August 2024, upon the anniversary of Jet.AI’s business combination, the ordinary shares held by the Sponsor became unrestricted and was distributed pro-rata to the Sponsor’s investors. At September 30, 2024, the Company held 2,369,037 of Jet.AI common stock.

As a result of the re-measurement of our investment in Jet.AI, we recognized for the nine months ended September 30, 2024, an unrealized loss of $1,937,000 within our consolidated statements of operations.

Other investments as of September 30, 2024 and December 31, 2023 consist of the following (in thousands):

SCHEDULE OF OTHER INVESTMENTS

	September 30, 2024			December 31, 2023

Jet.AI. Series A-1 Preferred Shares	$	285		$	285
Jet.AI common stock (2022: Class B Ordinary Shares)		256			2,193
Total	$	541		$	2,478

Beginning of year	$	2,478		$	11,423
Unrealized loss on investment in affiliate		(1,937	)		(8,945	)
End of year	$	541		$	2,478

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

September 30, 2024

4. INVESTMENTS (continued)

Assets Measured at Estimated Fair Value on a Recurring Basis

The following table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis that is reflected in the consolidated balance sheets at carrying value. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of September 30, 2024 and December 31, 2023:


	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of September 30, 2024	($ in thousands)
Financial Assets:
Cash and cash equivalents	$	1,406	$	-	$	-	$	1,406

Restricted cash and cash equivalents	$	3,412	$	-	$	-	$	3,412

Other investments	$	256	$	-	$	285	$	541

Equity securities	$	185	$	-	$	-	$	185

Total	$	5,259	$	-	$	285	$	5,544


	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of December 31, 2023	($ in thousands)
Financial Assets:
Cash and cash equivalents	$	495	$	-	$	-	$	495

Restricted cash and cash equivalents	$	3,250	$	-	$	-	$	3,250

Other investments	$	2,193	$	-	$	285	$	2,478

Equity securities	$	680	$	-	$	-	$	680

Total	$	6,618	$	-	$	285	$	6,903

There were no transfers between Levels 1, 2 or 3 during the nine months ended September 30, 2024 and 2023.

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for the other investments classified as Level 3:

	Other
	Investments
	(in thousands)
Fair value of Level 3 other investment at January 1, 2024	$	285
Investment in affiliate		-
Change in valuation inputs or other assumptions		-
Fair value of Level 3 other investment at September 30, 2024	$	285

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

September 30, 2024