管理層發言
Good afternoon. Welcome to Oxbridge's Second Quarter 2026 Earnings Call. My name is Irene, and I will be your conference operator this afternoon. The call will include standard operator instructions for participants to ask questions during the Q&A session. 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'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 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 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 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 the 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 2026–2027 treaty year, we successfully closed five tokenized reinsurance offerings on the Solana blockchain, raising $7.1 million in aggregated gross proceeds. These included T20 and T42 offerings with current targeted annual returns of 20% and 42%, respectively, assuming no underwriting losses. The five offerings also included three 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 224%, HCI Re 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 two 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 and 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 toward the net income results for the quarter. Net income for the six 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 basic and diluted loss per share, for the six 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 toward the improved result for the six 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 six months ended June 30, 2026, decreased to $924,000 from $1.11 million for the six months ended June 30, 2025. The decrease again is due to a lower weighted average rate on reinsurance contracts in force during the six-month period as well as a lower amount of capital deployed into reinsurance contracts during the six-month period when compared with the prior period. Our net investment income and other income for the three and six 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 the three and six 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 administrative 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 six months ended June 30, 2026, total expenses decreased to $1.2 million from $4.2 million for the six 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 toward 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 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 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 three-month period ended June 30, 2025. The loss ratio also decreased to 0% from 194.8% for the six-month period ended June 30, 2026, when compared with the prior comparable period. The decrease was due to no losses being recorded during the six-month period ended June 30, 2026, again, whereas a full limit loss was recognized for one of our reinsurance contracts during the similar six-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 cost ratio increased marginally to 11.4% from 11% for the six-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 six-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 and administrative 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 six months ended June 30, 2026, the expense ratio decreased to 133.1% from 160.7% for the six-month period ended June 30, 2025. The decrease in both periods is 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 three 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 six-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 six-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 six 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 two platforms developing. First, SurancePlus. Since launching our reinsurance tokenization platform, SurancePlus has completed offerings across four 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 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 supporting the 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 center 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, 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 seven years of data center infrastructure experience at Meta across five data center campuses, representing 2.5 gigawatts of deployed capacity, together with 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 structuring and tokenization capabilities deployed by SurancePlus to tokenize interests 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 provide investor access to those assets through tokenization. We believe SurancePlus and AI GridWorks represent two 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.
分析師問答
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 about what you're targeting, how you're thinking about where it makes sense to do this, the type of tenants and the type of demand that it might be taking, and any thoughts on the financing of it?
Allen, that's a great question and there's a lot to unpack. For our AI data centers, we're not targeting gigawatt campuses at this time; that's a step too far for our current strategy. We are targeting smaller-scale data centers in the 10 to 100 megawatt range, with flexibility to pursue larger opportunities when appropriate. That allows us to operate in a space where we are not directly competing with the largest players. Geographically, we're targeting the Southeast of the U.S. The type of tenant will depend on the location and the specific characteristics of the data center. In conversations with larger architecture, engineering, and construction (AEC) firms, we are seeing significant demand, although tenant interest depends on the specific type of data center being built. Our approach is centered on flexibility and optionality. As we evaluate and secure opportunities from the ground up, we maintain options that give us line of sight into potential tenants as projects develop. We can pursue multiple paths: developing land and entitlements to create powered land, selling those assets, or moving vertically to build and operate data centers. There is significant value creation in taking entitled land with power letters to the next step. If we build data centers, we can subdivide into halls and act as a landlord to tenants who bring their own equipment, or we can operate and deploy our own compute infrastructure. Financing will be multi-levered: traditional bank financing is available and active for data centers, and SurancePlus provides an additional channel to raise capital through tokenized real-world assets. SurancePlus enables investors to participate with smaller check sizes, with streamlined AML and KYC processes, allowing us to offer fractionalized ownership of infrastructure assets. That combination of traditional financing and tokenized capital provides multiple levers to finance these opportunities and makes the two businesses very complementary.
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 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. We view the business not only as a publicly traded story, but as a company with deep execution capability. We've strengthened our team with subject matter experts across real estate and infrastructure. For example, we have a leader with roughly seven years' experience at Meta who has been involved in nearly three gigawatts of AI data center land opportunities. Every step of the value chain is an opportunity for optionality and value creation. One path is to acquire land, obtain entitlements and power letters, and then sell the entitled, powered land for a multiple over our entry cost. Another path is to move vertically by constructing data centers. Once built, those facilities can be partitioned into halls leased to tenants who bring their own GPUs and equipment, or we can operate the data center and deploy our own compute resources. This multi-path approach provides flexibility and aligns with disciplined capital allocation—we will not overcommit or overpay because we control the value chain. Regarding SurancePlus, the platform complements AI GridWorks by enabling investors to access data center investments through tokenization. Data centers are well-understood real-world assets, but typical ticket sizes for direct investment are large. SurancePlus fills that gap by allowing smaller investors to participate, with faster AML/KYC and the ability to invest via fiat or tokens. So between traditional bank financing and tokenized capital via SurancePlus, we have multiple levers to finance and de-risk these opportunities, and both businesses support one another.
So if I heard you correctly, you could use RWAs for part of the financing and raising funds and that’s how an individual could actually own part of the data center itself?
Absolutely. It provides another channel for investors to participate. It may also help address local community concerns when people see they can own or have an investment stake in a local asset, which can be useful in addressing 'not in my backyard' sentiment. Tokenization can broaden the investor base and allow more people to share in the value created by these assets.
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 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.