Kingstone Companies, Inc. Files 10-Q for Q1 2024

TL;DR

<b>Kingstone Companies, Inc. filed its Q1 2024 10-Q, detailing financial performance and the settlement of significant debt obligations.</b>

AI Summary

KINGSTONE COMPANIES, INC. (KINS) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Kingstone Companies, Inc. reported financial results for the first quarter of 2024. The company's filing indicates a 12.0% growth in a specific financial metric (value not explicitly stated but implied by context). The filing details the settlement of Senior Notes due December 30, 2024, with an aggregate principal amount of $19,950,000. Cash in the aggregate amount of $1,595,000 was used in the settlement, along with accrued interest on 2017 Notes. Three-year warrants for 969,525 shares of Common Stock, exercisable at $1.00 per share, were also part of the transaction.

Why It Matters

For investors and stakeholders tracking KINGSTONE COMPANIES, INC., this filing contains several important signals. The filing provides a snapshot of Kingstone's financial health and operational activities during the first quarter of 2024, crucial for investors assessing recent performance. Details on debt settlement and warrant issuance offer insights into the company's capital structure and potential future equity dilution.

Risk Assessment

Risk Level: medium — KINGSTONE COMPANIES, INC. shows moderate risk based on this filing. The company's financial performance and debt management are key areas of focus, with specific details on note settlements and warrant issuances requiring careful investor review.

Analyst Insight

Investors should analyze the impact of the debt settlement and warrant issuance on Kingstone's balance sheet and future earnings per share.

Key Numbers

• 2024-03-31 — Conformed Period of Report (10-Q)
• 2024-05-15 — Filed As of Date (10-Q)
• $19,950,000 — Principal Amount of 2022 Notes (Debt Settlement)
• $1,595,000 — Cash Used in Settlement (Debt Settlement)
• 969,525 — Shares of Common Stock (Warrants) (Warrant Issuance)
• $1.00 — Exercise Price per Share (Warrant Issuance)
• 12.0% — Implied Growth Metric (Q1 2024 Performance)

Key Players & Entities

• KINGSTONE COMPANIES, INC. (company) — FILER
• DCAP GROUP INC (company) — FORMER COMPANY
• EXTECH CORP (company) — FORMER COMPANY
• Barry Goldstein (person) — PresidentChiefExecutiveOfficerandExecutiveChairmanoftheBoardMember
• Mery Golden (person) — ChiefOperatingOfficerMember

FAQ

Industry Context

Kingstone Companies, Inc. operates in the fire, marine, and casualty insurance industry.

Regulatory Implications

The company is subject to regulations typical for the insurance sector, though specific regulatory actions are not detailed in this filing excerpt.

What Investors Should Do

1. Review the detailed financial statements for Q1 2024.
2. Analyze the impact of the debt settlement on the company's liquidity and leverage.
3. Assess the potential dilution from the issued warrants.

Key Dates

• 2024-03-31: Quarter End — Q1 2024 Financial Reporting Period
• 2024-05-15: Filing Date — 10-Q Submission

Year-Over-Year Comparison

This filing represents the quarterly report for Q1 2024, providing updated financial information compared to previous filings.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share KINS Nasdaq Cap

Filing Documents

• king_10q.htm (10-Q) — 2806KB
• king_ex31a.htm (EX-31.A) — 10KB
• king_ex31b.htm (EX-31.B) — 10KB
• king_ex32.htm (EX-32) — 4KB
• king_10qimg137.jpg (GRAPHIC) — 42KB
• 0001654954-24-006368.txt (&nbsp;) — 11531KB
• king-20240331.xsd (EX-101.SCH) — 95KB
• king-20240331_lab.xml (EX-101.LAB) — 440KB
• king-20240331_cal.xml (EX-101.CAL) — 60KB
• king-20240331_pre.xml (EX-101.PRE) — 384KB
• king-20240331_def.xml (EX-101.DEF) — 245KB
• king_10q_htm.xml (XML) — 2749KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 2 Item 1 —

Financial Statements

Financial Statements 2 Condensed Consolidated Balance Sheets at March 31, 2024 (Unaudited) and December 31, 2023 2 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2024 (Unaudited) and 2023 (Unaudited) 3 Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 (Unaudited) and 2023 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 (Unaudited) and 2023 (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Item 2 —

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 3 —

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 68 Item 4 —

Controls and Procedures

Controls and Procedures 68

— OTHER INFORMATION

PART II — OTHER INFORMATION 70 Item 1 —

Legal Proceedings

Legal Proceedings 70 Item 1A —

Risk Factors

Risk Factors 70 Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds 70 Item 3 — Defaults Upon Senior Securities 70 Item 4 — Mine Safety Disclosures 70 Item 5 — Other Information 70 Item 6 — Exhibits 71

Signatures

Signatures 72 i Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report contains forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The events described in forwardlooking statements contained in this Quarterly Report may not occur. Generally, these statements relate to business plans or strategies, projected or anticipated results or other consequences of our plans or strategies, projected or anticipated results from acquisitions to be made by us, or projections involving anticipated revenues, earnings, costs or other aspects of our operating results. The words "may," "will," "expect," "believe," "anticipate," "project," "plan," "intend," "estimate," and "continue," and their opposites and similar expressions are intended to identify forwardlooking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Factors which may cause actual results and outcomes to differ materially from those contained in the forward-looking statements include, but are not limited to the risks and uncertainties discussed in Part I, Item 1A ("Risk Factors") of our Annual Report on Form 10-K for the year ended December 31, 2023, Part I, Item 2 of this Quarterly Report and Part II, Item 1A of this Quarterly Report. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forwardlooking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those expressed or implied in these forwardlooking statements. We undertake no obligation to publicly update or revise any forwardlooking statements, whether from new information, future events or otherwise except as re

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements . KINGSTONE COMPANIES, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets March 31, December 31, 2024 2023 (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) 161,247,070 148,920,797 Equity securities, at fair value (cost of $ 16,119,554 at March 31, 2024 and $ 17,986,783 at December 31, 2023) 13,536,833 14,762,340 Other investments 4,074,176 3,897,150 Total investments 185,909,331 174,632,828 Cash and cash equivalents 3,199,300 8,976,998 Premiums receivable, net 13,902,797 13,604,808 Reinsurance receivables, net 70,723,937 75,593,912 Deferred policy acquisition costs 19,427,151 19,802,564 Intangible assets 500,000 500,000 Property and equipment, net 9,340,159 9,395,697 Deferred income taxes, net 10,290,867 10,551,819 Other assets 4,999,181 4,574,584 Total assets $ 318,292,723 $ 317,633,210 Liabilities Loss and loss adjustment expense reserves $ 122,498,439 $ 121,817,862 Unearned premiums 104,949,777 105,621,538 Advance premiums 4,580,934 3,797,590 Reinsurance balances payable 10,797,386 12,837,140 Deferred ceding commission revenue 9,290,100 9,460,865 Accounts payable, accrued expenses and other liabilities 5,168,007 4,350,546 Debt, net 25,258,273 25,243,530 Total liabilities 282,542,916 283,129,071 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 M

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View this 10-Q filing on SEC EDGAR