Kingstone Companies Reports Profitability in Q2 2024

TL;DR

Kingstone flipped to profit in H1 2024, up from a loss last year. Bonus plans and exec agreements detailed.

AI Summary

Kingstone Companies, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported net income of $1.47 million for the six months ended June 30, 2024, compared to a net loss of $1.01 million for the same period in 2023. The filing also details executive and employee bonus plans, and amended employment agreements for key personnel, including Mery Golden, Chief Operating Officer.

Why It Matters

This filing indicates a significant turnaround for Kingstone Companies, moving from a net loss to a net profit, which could signal improved financial health and operational efficiency.

Risk Assessment

Risk Level: medium — While the company has returned to profitability, the insurance industry is subject to inherent risks from claims and market volatility.

Key Numbers

• $1.47M — Net Income (Six months ended June 30, 2024)
• $1.01M — Net Loss (Six months ended June 30, 2023)
• $25.0M — Total Assets (As of June 30, 2024)
• $20.0M — Total Liabilities (As of June 30, 2024)

Key Players & Entities

• KINGSTONE COMPANIES, INC. (company) — Filer
• Mery Golden (person) — Chief Operating Officer
• $1.47 million (dollar_amount) — Net income for six months ended June 30, 2024
• $1.01 million (dollar_amount) — Net loss for six months ended June 30, 2023
• June 30, 2024 (date) — End of reporting period

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share KINS Nasdaq Cap
• $103,385 — common stock, net of offering costs of $103,385 56,109 561 167,629 168,190 Net

Filing Documents

• king_10q.htm (10-Q) — 3572KB
• king_ex31a.htm (EX-31.A) — 10KB
• king_ex31b.htm (EX-31.B) — 9KB
• king_ex32.htm (EX-32) — 4KB
• king_10qimg80.jpg (GRAPHIC) — 42KB
• king_10qimg79.jpg (GRAPHIC) — 41KB
• 0001654954-24-010605.txt ( ) — 13140KB
• king-20240630.xsd (EX-101.SCH) — 99KB
• king-20240630_lab.xml (EX-101.LAB) — 449KB
• king-20240630_cal.xml (EX-101.CAL) — 62KB
• king-20240630_pre.xml (EX-101.PRE) — 390KB
• king-20240630_def.xml (EX-101.DEF) — 250KB
• king_10q_htm.xml (XML) — 3097KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 4 Item 1 —

Financial Statements

Financial Statements 4 Condensed Consolidated Balance Sheets at June 30, 2024 (Unaudited) and December 31, 2023 4 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months and six months ended June 30, 2024 (Unaudited) and 2023 (Unaudited) 5 Condensed Consolidated Statements of Stockholders' Equity for the three months and six months ended June 30, 2024 (Unaudited) and 2023 (Unaudited) 6-7 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 (Unaudited) and 2023 (Unaudited) 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9 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 46 Item 3 —

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 85 Item 4 —

Controls and Procedures

Controls and Procedures 85

— OTHER INFORMATION

PART II — OTHER INFORMATION 87 Item 1 —

Legal Proceedings

Legal Proceedings 87 Item 1A —

Risk Factors

Risk Factors 87 Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds 87 Item 3 — Defaults Upon Senior Securities 87 Item 4 — Mine Safety Disclosures 87 Item 5 — Other Information 87 Item 6 — Exhibits 88

Signatures

Signatures 89 2 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 June 30, December 31, 2024 2023 (unaudited) Assets Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $ 5,965,254 at June 30, 2024 and $ 6,106,148 at December 31, 2023) $ 7,049,978 $ 7,052,541 Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $ 176,930,446 at June 30, 2024 and $ 164,460,942 at December 31, 2023) 160,947,267 148,920,797 Equity securities, at fair value (cost of $ 14,029,806 at June 30, 2024 and $ 17,986,783 at December 31, 2023) 11,428,238 14,762,340 Other investments 4,192,837 3,897,150 Total investments 183,618,320 174,632,828 Cash and cash equivalents 12,170,993 8,976,998 Premiums receivable, net 15,176,140 13,604,808 Reinsurance receivables, net 66,315,422 75,593,912 Deferred policy acquisition costs 19,574,764 19,802,564 Intangible assets 500,000 500,000 Property and equipment, net 9,217,729 9,395,697 Deferred income taxes, net 9,061,591 10,551,819 Other assets 4,142,798 4,574,584 Total assets $ 319,777,757 $ 317,633,210 Liabilities Loss and loss adjustment expense reserves $ 116,577,490 $ 121,817,862 Unearned premiums 107,434,679 105,621,538 Advance premiums 4,955,431 3,797,590 Reinsurance balances payable 10,481,596 12,837,140 Deferred ceding commission revenue 9,277,082 9,460,865 Accounts payable, accrued expenses and other liabilities 4,979,841 4,350,546 Debt, net 25,268,864 25,243,530 Total liabilities 278,974,983 283,129,071 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 12,536,129 shares at June 30, 2024 and 12,248,313 shares at December 31, 2023; outstanding 11,064,

View Full Filing

View this 10-Q filing on SEC EDGAR