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KINGSTONE COMPANIES INC

For the period ended Mar 31, 2024. Filed May 15, 2024.

View on SEC.gov

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 15, 2024

KINS$22.74+3.8%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits

Item 1. — Financial Statements

KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 31,December 31,
20242023
(unaudited)
Assets
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $6,043,911 at March 31, 2024 and $6,106,148 at December 31, 2023)$7,051,252$7,052,541
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $177,344,695 at March 31, 2024 and $164,460,942 at December 31, 2023)161,247,070148,920,797
Equity securities, at fair value (cost of $16,119,554 at March 31, 2024 and $17,986,783 at December 31, 2023)13,536,83314,762,340
Other investments4,074,1763,897,150
Total investments185,909,331174,632,828
Cash and cash equivalents3,199,3008,976,998
Premiums receivable, net13,902,79713,604,808
Reinsurance receivables, net70,723,93775,593,912
Deferred policy acquisition costs19,427,15119,802,564
Intangible assets500,000500,000
Property and equipment, net9,340,1599,395,697
Deferred income taxes, net10,290,86710,551,819
Other assets4,999,1814,574,584
Total assets$318,292,723$317,633,210
Liabilities
Loss and loss adjustment expense reserves$122,498,439$121,817,862
Unearned premiums104,949,777105,621,538
Advance premiums4,580,9343,797,590
Reinsurance balances payable10,797,38612,837,140
Deferred ceding commission revenue9,290,1009,460,865
Accounts payable, accrued expenses and other liabilities5,168,0074,350,546
Debt, net25,258,27325,243,530
Total liabilities282,542,916283,129,071
Commitments and Contingencies (Note 11)
Stockholders' Equity
Preferred stock, $0.01 par value; authorized 2,500,000 shares--
Common stock, $0.01 par value; authorized 20,000,000 shares; issued 12,479,422 shares at March 31, 2024 and 12,248,313 shares at December 31, 2023; outstanding 11,008,016 shares at March 31, 2024 and 10,776,907 shares at December 31, 2023124,794122,483
Capital in excess of par75,595,09675,338,010
Accumulated other comprehensive loss(12,714,971)(12,274,563)
Accumulated deficit(21,687,631)(23,114,310)
41,317,28840,071,620
Treasury stock, at cost, 1,471,406 shares at March 31, 2024 and December 31, 2023(5,567,481)(5,567,481)
Total stockholders' equity35,749,80734,504,139
Total liabilities and stockholders' equity$318,292,723$317,633,210
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)
For the Three Months Ended
March 31,
20242023
Revenues
Net premiums earned$28,819,902$28,254,953
Ceding commission revenue4,567,1115,445,407
Net investment income1,502,8601,541,492
Net gains on investments726,3911,224,871
Other income148,913161,040
Total revenues35,765,17736,627,763
Expenses
Loss and loss adjustment expenses17,859,58725,039,410
Commission expense7,851,8128,539,762
Other underwriting expenses5,880,6056,871,619
Other operating expenses778,082662,634
Depreciation and amortization596,513808,130
Interest expense993,8751,009,891
Total expenses33,960,47442,931,446
Income (loss) from operations before taxes1,804,703(6,303,683)
Income tax expense (benefit)378,024(1,248,973)
Net income (loss)1,426,679(5,054,710)
Other comprehensive (loss) income, net of tax
Gross change in unrealized (losses) gains
on available-for-sale-securities(560,347)2,467,426
Reclassification adjustment for losses
included in net income (loss)2,8672,639
Net change in unrealized (losses) gains,
on available-for-sale-securities(557,480)2,470,065
Income tax benefit (expense) related to items
of other comprehensive (loss) income117,072(518,713)
Other comprehensive (loss) income, net of tax(440,408)1,951,352
Comprehensive income (loss)$986,271$(3,103,358)
Earnings (loss) per common share:
Basic$0.13$(0.47)
Diluted$0.12$(0.47)
Weighted average common shares outstanding
Basic10,999,66210,756,913
Diluted11,791,52010,756,913
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity (Unaudited)
Three months ended March 31, 2024 and 2023
Accumulated
Capital · Other
Preferred Stock · Common Stock · in Excess · Comprehensive · Accumulated · Treasury Stock
Shares · Amount · Shares · Amount · of Par · Loss · Deficit · Shares · Amount · Total
Balance, January 1, 2023-$-12,171,512$121,715$74,519,590$(15,958,428)$(16,945,964)1,471,406$(5,567,481)$36,169,432
Stock-based compensation----216,767----216,767
Vesting of restricted stock awards--60,951610(610)-----
Shares deducted from restricted stock awards for payment of withholding taxes--(498)(5)(832)----(837)
Net loss------(5,054,710)--(5,054,710)
Change in unrealized gains on available- for-sale securities, net of tax-----1,951,352---1,951,352
Balance, March 31, 2023-$-12,231,965$122,320$74,734,915$(14,007,076)$(22,000,674)1,471,406$(5,567,481)$33,282,004
Accumulated
Capital · Other
Preferred Stock · Common Stock · in Excess · Comprehensive · Accumulated · Treasury Stock
Shares · Amount · Shares · Amount · of Par · Loss · Deficit · Shares · Amount · Total
Balance, January 1, 2024-$-12,248,313$122,483$75,338,010$(12,274,563)$(23,114,310)1,471,406$(5,567,481)$34,504,139
Stock-based compensation----265,789----265,789
Vesting of restricted stock awards--233,6272,336(2,336)-----
Shares deducted from restricted stock awards for payment of withholding taxes--(2,518)(25)(6,367)----(6,392)
Net income------1,426,679--1,426,679
Change in unrealized losses on available- for-sale securities, net of tax-----(440,408)---(440,408)
Balance, March 31, 2024-$-12,479,422$124,794$75,595,096$(12,714,971)$(21,687,631)1,471,406$(5,567,481)$35,749,807
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three Months ended March 31, · 2024 · 2023
Cash flows from operating activities:
Net income (loss)$1,426,679$(5,054,710)
Adjustments to reconcile net income (loss) to net cash flows
provided by (used in) operating activities:
Net losses on investments92,3572,639
Net unrealized gains on equity investments(641,722)(863,713)
Net unrealized gains on other investments(177,026)(363,797)
Depreciation and amortization596,513808,130
Bad debt expense8,90519,504
(Accretion of bond discount) amortization of bond premium, net(61,218)(37,795)
Amortization of discount and issuance costs on debt296,919296,919
Stock-based compensation265,789216,767
Deferred income tax benefit378,024(1,248,973)
Decrease (increase) in operating assets:
Premiums receivable, net(306,894)521,963
Reinsurance receivables, net4,869,975(11,553,545)
Deferred policy acquisition costs375,4131,127,409
Other assets(424,596)(172,487)
Increase (decrease) in operating liabilities:
Loss and loss adjustment expense reserves680,5775,782,305
Unearned premiums(671,761)(2,332,884)
Advance premiums783,3442,821,363
Reinsurance balances payable(2,039,754)7,048,246
Deferred ceding commission revenue(170,765)119,860
Accounts payable, accrued expenses and other liabilities817,461(504,006)
Net cash flows provided by (used in) operating activities6,098,220(3,366,805)
Cash flows from investing activities:
Purchase - fixed-maturity securities available-for-sale(45,625,725)(10,974,819)
Sale and maturity - fixed-maturity securities available-for-sale32,801,61213,554,928
Sale - equity securities1,777,73875,554
Acquisition of property and equipment(540,975)(466,073)
Net cash flows (used in) provided by investing activities(11,587,350)2,189,590
Cash flows from financing activities:
Principal payments on equipment financing(282,176)(266,160)
Issue costs on 2022 Notes-(13,263)
Withholding taxes paid on vested restricted stock awards(6,392)(837)
Net cash flows used in financing activities(288,568)(280,260)
Decrease in cash and cash equivalents$(5,777,698)$(1,457,475)
Cash and cash equivalents, beginning of period8,976,99811,958,228
Cash and cash equivalents, end of period$3,199,300$10,500,753
Supplemental disclosures of cash flow information:
Cash paid for income taxes$-$-
Cash paid for interest$98,456$434,155
Supplemental schedule of non-cash investing and financing activities:
Other comprehensive (loss) income, net of tax$(440,408)$1,951,352

See accompanying notes to condensed consolidated financial statements.

KINGSTONE COMPANIES, INC. AND SUBSIDIARIES

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.