Employee Benefit Plans

3 Months Ended

Mar. 31, 2026

Employee Benefit Plans

Employee Benefit Plans

Employee Benefit Plans

Bonus Plans

Employee Bonus Plan

For the three months ended March 31, 2026 and 2025, the Company accrued approximately $0 and $123,932, respectively, of cash payments related to an employee bonus plan (the "Bonus Plan"), of which $0 and $28,257, respectively, is allocated and recorded in loss and LAE, and $0 and $95,676, respectively, is recorded in other underwriting expenses on the accompanying condensed consolidated statements of operations and comprehensive (loss) income. In addition to the cash payments, the Bonus Plan provides for a restricted stock award ("RSA") to the Company's senior leadership team ("SLT") and other members of management in an amount up to their cash payments if certain performance metrics have been met. The performance metrics for the three months ended March 31, 2026 and 2025 were not met, and, accordingly, no stock-based compensation liability has been accrued for the three months ended March 31, 2026 and 2025 for the SLT RSA bonus.

Executive Bonus Plan

For the three months ended March 31, 2026 and 2025, the Company accrued approximately $0 and $26,000, respectively, for a bonus pursuant to the Third Amended Golden Employment Agreement of which $0 and $23,000, respectively, is recorded in other underwriting expenses, and $0 and $3,000, respectively, is recorded in other operating expenses on the accompanying condensed consolidated statements of operations and comprehensive (loss) income.

401(k) Plan

The Company maintains a salary reduction plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for its qualified employees. The Company matches 100% of each participant’s contribution up to 4% of the participant’s eligible contribution. The Company incurred approximately $138,000 and $113,000, respectively, of expense for the three months ended March 31, 2026 and 2025, related to the 401(k) Plan, which is recorded in other underwriting expenses on the accompanying condensed consolidated statements of operations and comprehensive (loss) income.