Q2 2026 Oxbridge Re Holdings Ltd Earnings Call

August 13, 2026

Speaker #1: Thank you for calling. May I have the conference you wish to join, please? the OXBRIDGE—thank you. And your name? Thank you. I will get your line in just a moment.

Operator 2: Thank you for calling. May I have the conference you wish to join, please?

David Brown: Yes, it's the Oxbridge Re Holdings.

Operator 2: The Oxbridge?

David Brown: Correct.

Operator 2: Thank you. And your name?

David Brown: David Brown.

Operator 2: Thank you. I will get your line in just a moment.

David Brown: Thank you.

Speaker #1: You are welcome. Ladies and gentlemen, we thank you for your patience, and please continue to stand by. The event will start shortly. Again, we thank you for your patience.

Operator 2: You are welcome. Ladies and gentlemen, we thank you for your patience and please continue to stand by. The event will start shortly. Again, we thank you for your patience. Please continue to stand by. The event will begin shortly.

Speaker #1: Please continue to stand by. The event will begin shortly. 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: Good afternoon. Welcome to Oxbridge's Q2 2026 earnings call. My name is Irene, and I will be your conference operator this afternoon. At this time, all participants will be in a listen-only mode. 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 27 August 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.

Speaker #1: At this time, all participants will be in listen-only mode. Joining us for today's presentation are Oxbridge's Chairman, President, and Chief Executive Officer, Jay Madhu, and Chief Financial Officer and Corporate Secretary, Rendan Timothy.

Speaker #1: 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.

Speaker #1: Details for the telephone replay are included in the press release issued today. Now, I would like to turn the call over to Rendan 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.

Speaker #2: Thank you, Aurora. 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.

Wrendon Timothy: 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 simplify 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 30 March 2026, with the Securities and Exchange Commission.

Speaker #2: 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.

Speaker #2: 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 earnings, which in turn can cause significant market price and trading volume fluctuations for our securities.

Wrendon Timothy: 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 speaks only as of the date of this conference call. 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 Chairman, President, and Chief Executive Officer, Jay Madhu. Jay?

Speaker #2: Any forward-looking statements made on this conference call speak only as of the date of this conference call. 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.

Speaker #2: Now, I would like to turn the call over to our Chairman, President, and Chief Executive Officer, Jay Madhu. Jay?

Speaker #3: Thank you, Rendan, 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.

Jay Madhu: Thank you, Rendon, 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 Q2 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 Eta Cat Re and Zeta Cat 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.

Speaker #3: During the second quarter and subsequent period, we continued to build on the growth of our tokenized reinsurance business. We 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.

Speaker #3: Through Shorance Plus, we have continued to build our track record on tokenized reinsurance, with a 2025-2026 treaty year, our ADACAT re and ZADACAT re offerings targeted annual returns of 20 and 42 percent respectively.

Speaker #3: 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 five tokenized reinsurance offerings on the Solana blockchain.

Jay Madhu: For the 2026 and 2027 treaty year, we successfully closed five tokenized reinsurance offerings on the Solana blockchain, raising $7.1 million in aggregated gross proceeds. These included our T-20 and T-42 offering with a current targeted annual return of 26% and 32% 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 242%. 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.

Speaker #3: Raising $7.1 million in aggregated gross proceeds. These included our T20 and T42 offering, with the to with the current targeted annual return of 26 and 32 percent respectively, assuming no underwriting losses.

Speaker #3: 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 HCI Re 2026 Series A targets an annual return of $242 percent.

Speaker #3: HCI Re's 2026 Series B targets $122 percent, and HCI Re 2026 Series C targets 17 percent. In each case, assuming no underwriting losses. This represents an important expansion of the Shorance Plus platform beyond reinsurance originating through our own operations and demonstrates its ability to structure and tokenize reinsurance opportunities originated by third parties.

Speaker #3: 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 a development pipeline.

Jay Madhu: 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 a 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 Rendon to take us through our financial results.

Speaker #3: We believe Shorance Plus and AI Gridworks provide Oxbridge with two distinct but complementary growth platforms, creating multiple avenues for long-term growth and shareholder value creation.

Speaker #3: I will now turn the call over to Rendan to take us through our financial results.

Speaker #4: 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.

Wrendon Timothy: Thank you, Jay. I would like to remind you that our typical contract period is from 1 June to 31 May of the following year. Net income for the quarter ended 30 June 2026 was USD 176,000, or USD 0.02 basic and diluted income per share, compared to a net loss of USD 1.87 million, or USD 0.25 basic and diluted loss per share for the quarter ended 30 June 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 30 June 2026. SurancePlus management fee income, along with reduced professional fees and overall compensation, contributed towards the net income results for the quarter.

Speaker #4: Net income for the quarter ended June 30, 2026, was $176,000, or $0.02 based on diluted income per share, compared to a net loss of $1.87 million, or $0.25 based on diluted loss per share, for the quarter ended June 30, 2025.

Speaker #4: The increase in net income, or 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.

Speaker #4: Shorance Plus management fee income along with reduced professional fees and overall compensation contributed towards the net income results for the quarter. Net income for the six months ended June 30, 2026, was $198,000 or 2 cents based on diluted income per share compared to a net loss of $2.01 million or 28 cents per basic undiluted loss per share for the six months ended June 30, 2025.

Wrendon Timothy: Net income for the six months ended 30 June 2026 was USD 198,000, or USD 0.02 basic and diluted income per share, compared to a net loss of USD 2.01 million, or USD 0.28 per basic and diluted loss per share for the six months ended 30 June 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 30 June 2026. SurancePlus management fee income, along with reduced professional fees and reduced overall compensation, contributed towards the improved result for the six months ended 30 June 2026. Net premiums earned for the quarter ended 30 June 2026 decreased to USD 368,000 from USD 582,000 for the quarter ended 30 June 2025.

Speaker #4: 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.

Speaker #4: Again, Shorance Plus management fee income, along with reduced professional fees and reduced overall compensation, contributed towards the improved result for the six months ended June 30, 2026.

Speaker #4: 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 low-weighted average rate on reinsurance contracts enforced during the quarter.

Wrendon Timothy: The decrease is due to a lower weighted average rate on reinsurance contracts in force during the quarter, as well as the low amount of capital deployed into reinsurance contracts during the quarter when compared to the prior period. Net premiums earned for the six months ended 30 June 2026 decreased to USD 924,000 from USD 1.1 million for the six months ended 30 June 2025. The decrease again is due to lower weighted average rate on reinsurance contracts in force during the six-month period, as well as lower amount of capital deployed into reinsurance contracts during the six-month period when compared with the prior period. Earned investment income and other income for the three and six months ended 30 June 2026 decreased to USD 71,000 from USD 93,000 and USD 139,000 from USD 173,000 respectively when compared with the prior comparable periods.

Speaker #4: As well as a low 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 $1.1 million for the six months ended June 30, 2025.

Speaker #4: The decrease again is due to a low-weighted average rate on reinsurance contracts enforced during the six-month period as well as a low amount of capital deployed into reinsurance contracts during the six-month period.

Speaker #4: When compared with the prior period. When an 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.

Speaker #4: 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 periods, respectively.

Wrendon Timothy: Along with net premiums and management fee income our total revenue for three and six months ended 30 June 2026 amounted to USD 940,000 and USD 1.5 million compared to USD 64,000 and USD 1.3 million in the prior year comparable periods respectively. For the quarter ended 30 June 2026, total expenses, including policy acquisition costs and general admin expenses, decreased to USD 647,000 from USD 3.6 million for the quarter ended 30 June 2025. The decrease is primarily due to no underwriting losses recognized for the quarter ended 30 June 2026. Reduced professional fees and reduced overall compensation also contributed to the decrease for the quarter. For the six months ended 30 June 2026, total expenses increased to USD 1.2 million from USD 4.2 million for the six months ended 30 June 2025.

Speaker #4: For the quarter ended June 30, 2026, total expenses, including policy acquisition costs and general administrative expenses, decreased to $647,000 from $3.6 million for the quarter ended June 30, 2025.

Speaker #4: 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.

Speaker #4: For the six months ended June 30, 2026, total expenses increased to $1.2 million from $4.2 million for the six months ended June 30, 2025.

Speaker #4: The decrease again is primarily due to no underwriting losses in good and recognized for the period and reduced professional fees and reduced overall compensation also contributed towards the decrease.

Wrendon Timothy: 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 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 underwriting profitability of our reinsurance business. The loss ratio decreased to 0% from 394% for the quarter ended 30 June 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 with a three-month period ended 30 June 2025.

Speaker #4: As we have discussed before, no 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.

Speaker #4: The loss ratio is the ratio of loss and loss adjustment expenses incurred to premiums earned and measures underwriting profitability of our reinsurance business. The loss ratio decreased to 0 percent from $394 percent for the quarter ended June 30, 2026, when compared with the comparable period.

Speaker #4: 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 in the three-month period ended June 30, 2025.

Speaker #4: The loss ratio also decreased to 0 percent from $194.8 percent for the six-month period ended June 30, 2026, when compared with the prior comparative period.

Wrendon Timothy: The loss ratio also decreased to 0% from 194.8% for the six-month period ended 30 June 2026 when compared with the prior comparative period. The decrease was due to no losses being recorded during the six-month period ended 30 June 2026, whereas a full limit loss was recognized for one of our reinsurance contracts during the similar six-month period, 30 June 2025. Our acquisition cost ratio, which measures operational efficiency compared to policy acquisition costs earned. The acquisition cost ratio increased marginally to 12% from 11% for the quarter ended 30 June 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, ending 30 June 2026, when compared to the prior year comparable period.

Speaker #4: 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.

Speaker #4: During this similar six-month period, June 30, 2025. Our acquisition cost ratio, which measures operational efficiency compared to policy acquisition costs and net premiums earned, the acquisition cost ratio increased marginally to 12 percent from 11 percent for the quarter ended June 30, 2026, when compared to the prior comparable period.

Speaker #4: The increase in the acquisition costs 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.

Speaker #4: The acquisition costs increased marginally to 11.4 percent from 11 percent for the six-month period ended June 30, 2026, when compared with the prior comparable period.

Wrendon Timothy: The acquisition costs increased marginally to 11.4% from 11% for the six-month period ending 30 June 2026, when compared with the prior comparable period. The increase in acquisition costs was due to reduced net premiums earned and marginal premium adjustments recognized during the six-month period ending 30 June 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 ending 30 June 2026, the expense ratio decreased to 175.8% from 227% for the quarter ending 30 June 2025. For the six months ending 30 June 2026, the expense ratio decreased to 133.1% from 160.7% for the six-month period ending 30 June 2025. The decrease in both periods are primarily due to reduced professional fees and reduced overall compensation during the quarter when compared with the prior comparable periods.

Speaker #4: Again, the increase in acquisition costs 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.

Speaker #4: Our expense ratio, which measures operating performance compared to 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 percent from $227 percent for the quarter ended June 30, 2025.

Speaker #4: For the six-month ended June 30, 2026, the expense ratio decreased to $133.1 percent from $160.7 percent for the six-month period ended June 30, 2025.

Speaker #4: The decrease in both periods are primarily due to reduced professional fees and reduced overall compensation during the quarter, when compared with the prior year comparable periods.

Speaker #4: 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 percent from 621 percent for the quarter ended June 30, 2025.

Wrendon Timothy: 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 ending 30 June 2026, the combined ratio decreased to 175.8% from 621% for the quarter ending 30 June 2025. The combined ratio also decreased to 133.1% from 355% for the six-month period ending 30 June 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 ending 30 June 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 31 December 2025.

Speaker #4: The combined ratio also decreased to 133.1 percent from 355 percent 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.

Speaker #4: Ended June 30, 2026, when compared with the prior year comparable periods. Noted into 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.

Speaker #4: The increases in 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-month ended June 30, 2026.

Wrendon Timothy: The increase is a 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 ending 30 June 2026. I'd like to turn the call back over to Jay, who will wrap up before we take your questions. Jay?

Speaker #4: Now, I'd like to turn the call back over to Jay, who will wrap up before we take your questions. Jay.

Speaker #1: Thank you, Brendan. As Brendan 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.

Jay Madhu: Thank you, Rendon. As Rendon mentioned, we have $19.82 million in restricted cash and cash equivalents as of 30 June 2026. Having said that, I would like to spend a few minutes looking ahead on 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.

Speaker #1: First, insurance plus. Since launching our reinsurance tokenization platform, insurance plus 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.

Speaker #1: The addition of third-party reinsurance opportunities represents an important evolution of the platform. It demonstrates that InsurancePlus can extend beyond reinsurance originated through Oxbridge and provide the infrastructure to structure and tokenize real-world assets originated by third parties.

Speaker #1: We believe this expands the potential of Insurance Plus 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 Insurance Plus.

Jay Madhu: 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 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 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.

Speaker #1: While insurance plus 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.

Speaker #1: 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.

Speaker #1: 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.

Jay Madhu: 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 seven years of data center infrastructure experience at Meta across five 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 capabilities deployed by SurancePlus to tokenize interest in AI infrastructure assets and associated revenue streams.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: As AI Gridworks develops these assets, we intend to leverage the real-world asset structure or RWA structuring and tokenization capable sorry, capabilities deployed by insurance plus to tokenize interest in AI infrastructure assets and associated revenue streams.

Speaker #1: 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.

Jay Madhu: This creates a cohesive strategy for Oxbridge in 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 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. 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.

Speaker #1: We believe Insurance Plus 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.

Speaker #1: 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.

Speaker #2: Thank you, sir. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star and then one on your telephone keypad.

Operator: Thank you, sir. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star and then one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and then two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. The first question we have is from Allen Klee of Maxim Group. Please go ahead.

Speaker #2: A confirmation tone will indicate your line is in the question queue. You may press star and then two if you would like to remove your question from the queue.

Speaker #2: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Speaker #2: The first question we have is from Ellen Klee of Maxim Group. Please go ahead.

Operator: The first question we have is from Allen Klee of Maxim Group. Please go ahead.

Allen Klee: Hi, Jay and Rendon. 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 what you're targeting, how you're thinking about where it makes sense to do this, and maybe the type of tenants and the type of, I don't know, the type of demand that it might be taking, and any thoughts on the financing of it. Thank you.

Speaker #3: Hi, Jay and Brendan. 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 your targeting, how you're thinking about where it makes sense to do this and maybe the type of tenants and the type of I don't know, the type of demand that it might be taking.

Speaker #3: And any thoughts on the financing of it? Thank you.

Speaker #1: Wow, Ellen, 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 not targeting gigawatt centers, right?

Jay Madhu: Wow, Allen. That's a lot to unpack over there with a small question. No, that's an absolutely perfect question, right? Our AI data centers, we're not targeting gigawatt centers. Frankly, 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 US. The type of tenant will depend on, A, the location. It'll also depend 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? Part of this is what kind of data center you're building.

Speaker #1: Frankly, 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.

Speaker #1: We're targeting the Southeast of the US. The type of tenant will depend on, A, the location. It'll also depend on a number of various things over here.

Speaker #1: 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?

Speaker #1: 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.

Jay Madhu: 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.

Speaker #1: 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.

Speaker #1: And the flexibility of those options and optionality gives us a better view of the potential tenant as that tenant develops, or as that data center develops.

Speaker #3: Okay, great. Best of luck. Thank you so much.

Allen Klee: Okay, great. Best of luck. Thank you so much.

Speaker #1: Thank you.

Jay Madhu: Thank you.

Speaker #2: Ladies and gentlemen, I would just like to give a reminder. If you wish to ask a question, you may press star and then one.

Operator: Ladies and gentlemen, I would just like to give a reminder. If you wish to ask a question, you may press star and then one. The next question we have is from Kent Engelke of Capitol Securities. Please go ahead.

Speaker #2: The next question we have is from Kent Engelke of Capital Securities. Please go ahead.

Operator: The next question we have is from Kent Engelke of Capitol Securities. Please go ahead.

Speaker #4: Hey, Brendan. Hey, Jay. How are you all doing today? Seems like you guys always have a lot on the table. I think it's great all the activity you all are doing.

Kent Engelke: Hey, Rendon. Hey, Jay. How are you all doing today? Seems like you guys always have a lot on the table. I think it is great, all the activity you all are doing. Jay, can you expand a little bit more about on the optionality aspect? That is really interesting on a lot of different levels, especially on the vertical integration. Can you expand a little bit more on that?

Speaker #4: Jay, can you expand a little bit more on the optionality aspect? That's really interesting on a lot of different levels, especially with regard to the vertical integration.

Speaker #4: Could you please elaborate a bit further on that point?

Speaker #1: Yes. Absolutely, Kent. So the way we are viewing 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.

Jay Madhu: Yes. Absolutely, Kent. The way we are viewing our business, it is just not a publicly traded story, right? The story is a publicly traded company with deep experience in that realm. Then we have 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, we have a gentleman that has been with Meta for the last 7 and a half years. He has put together close to 3 gigawatts of AI data centers. Every step of the way, we have options.

Speaker #1: 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.

Speaker #1: But then also on the infrastructure side. The infrastructure side, we have a gentleman that's been with Meta. For the last seven and a half years, he's put together close to three gigawatts of AI data centers.

Speaker #1: 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 and taking land and moving it into that next step where you have your entitlements that are put into place, and you also have your power—that's your power letters.

Jay Madhu: Hypothetically, as we go forward, talk about real estate, as we move forward, there is a tremendous amount of value creation in taking land and moving it into that next step where you have your entitlements that are put into place, and you also have your power letters. That creates a significant upside over there. At that point, we have two 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. We are 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 one step further when you go vertical with this and you have your data center.

Speaker #1: That creates a significant upside over there. At that point, we have two options. We have a potential of either A, moving forward and going vertical with the building, or we can sell the asset.

Speaker #1: 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.

Speaker #1: 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 where you have tenants that come in over here because you have everything put together.

Jay Madhu: You can section off your data center into data center halls, at which point you can simply be a landlord where you have tenants that come in over here because you have everything put together. They will bring in their GPUs, and you are off to the races. You can have data center halls, and you can put that strategy in 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. All along the way, there is not only value creation, but there is flexibility, and the flexibility comes from every single step that we have taken from the ground up, making sure that we have not over-committed or overpaid on any of these assets because we are controlling that value chain. Now, you asked about how does it play out with SurancePlus.

Speaker #1: 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 in 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.

Speaker #1: 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.

Speaker #1: Because we are controlling that value chain. Now, think about, now you asked about how does it play out with the insurance plus. I think it plays out beautifully with insurance plus, right?

Jay Madhu: I think it plays out beautifully in SurancePlus because data centers are, when you talk about RWA, it is 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 is a hot topic, but part of this hot topic over here is most people do not 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. Not only can we raise capital through the traditional methods, banks are looking at data centers hot and heavy. There is huge opportunity for banks to come in over here and finance these things.

Speaker #1: Because data centers are, when you talk about RWA, a real-world asset. People understand data centers, for better or worse—they understand data centers.

Speaker #1: They talk about the pluses, they talk about the minuses. It's a hot topic. But 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.

Speaker #1: Insurance Plus, our other subsidiary, can fill that void. So not only can we raise capital through the traditional methods, but banks are looking at data centers hot and heavy.

Speaker #1: It's something that banks have this huge opportunity for banks to come in over here and finance these things. But in addition, we have through insurance plus, on our platform, people can come in with checks with smaller size checks where we can do AML and KYC in close to three minutes and they can wire in their funds or tokens or whatever it is that they're going to be sending in.

Jay Madhu: But in addition, we have through SurancePlus on 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 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.

Speaker #1: And now we have a piece of a data center. So, multiple levers to deploy, not only in financing these opportunities, but also multiple levers to deploy in making sure that both our businesses are very complementary to doing what we're looking to get done as we move forward.

Speaker #4: So, if I heard you correctly, you could use RWAs for part of the financing—the raising funds and stuff like that. That's how the individual could actually own part of the data center itself.

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

Speaker #1: 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.

Jay Madhu: 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.

Speaker #1: 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.

Speaker #1: Tokenization.

Speaker #4: Bring them in. Let them bring them in and let them share with some of the wealth. Absolutely.

Kent Engelke: Bring them in and let them share with some of the wealth. Absolutely.

Speaker #1: Absolutely. Absolutely.

Jay Madhu: Absolutely.

Speaker #4: Okay. Thank you.

Kent Engelke: Okay. Thank you.

Speaker #1: Thank you, Kent.

Jay Madhu: Thank you, Kent.

Speaker #2: Ladies and gentlemen, I would just like to give another reminder. If you wish to ask a question, you may press star, then one.

Operator: Ladies and gentlemen, I would just like to give another reminder. If you wish to ask a question, you may press star and then one. We will pause for a moment to see if we have any further questions. 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.

Speaker #2: We will pause for a moment to see if we have any further questions. 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.

Operator: We will pause for a moment to see if we have any further questions. 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.

Speaker #1: 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 insurance plus and AI gridworks.

Jay Madhu: Thank you for joining us on today's call. We appreciate everyone joining us today 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?

Speaker #1: 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.

Speaker #1: Options and optionality. Real-world assets. Insurance plus and AI gridworks. We look forward to updating you on our progress. Thank you again for your time today.

Speaker #1: Operator.

Speaker #2: 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 in the investor section of the company's website.

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.