UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
Commission File Number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
(Address of principal executive offices, including zip code)
(
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered |
|---|---|---|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of March 31, 2026, the registrant had
Form type: 10-Q
Period end: 2026-03-31
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Commission revenue | ||
| Net gains (losses) on investments | -1,015,347 | -137,979 |
| Net investment income | ||
| Net premiums earned | ||
| Other revenue | ||
| Total Revenue | ||
| Total COGS | ||
| Gross Profit | ||
| Commission expense | ||
| Interest expense, operating | ||
| Other operating costs | ||
| Other operating expenses | ||
| Other underwriting expenses | ||
| Total Expenses | ||
| Operating income | - | |
| Income before income taxes | - | |
| Income tax expense (benefit) | - | |
| Net Income | - | |
| Basic earnings per share | - | |
| Diluted earnings per share | - | |
| Weighted average shares outstanding, basic | ||
| Weighted average shares outstanding, diluted |
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Net income | -5,808,250 | 3,882,660 |
| Other comprehensive income (loss), net of tax | - | |
| Comprehensive income | - |
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Debt securities available for sale | 289,037,190 | |
| Debt securities held to maturity | 6,042,348 | |
| Deferred policy acquisition costs | ||
| Deferred tax assets | ||
| Intangible assets, net | ||
| Finite-lived intangible assets, accumulated amortization | ||
| Operating lease right-of-use assets | ||
| Other assets (derived) | ||
| Other invested assets | 9,839,800 | 10,056,595 |
| Other investments | ||
| Premiums receivable | ||
| Prepaid reinsurance premiums | ||
| Property, plant and equipment | ||
| Reinsurance recoverables | 33,232,000 | |
| Restricted cash and equivalents | 11,355,391 | 12,178,730 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable and accrued liabilities | ||
| Debt, current | 4,440,127 | |
| Deposits | 0 | 765,172 |
| Long-term debt | ||
| Operating lease liabilities, current | ||
| Other liabilities (derived) | ||
| Unearned premiums | ||
| Unpaid claims and claims adjustment expenses | ||
| Total Liabilities | ||
| Equity | ||
| Preferred stock | ||
| Preferred stock, par value per share | ||
| Preferred stock, shares authorized | ||
| Preferred stock, shares issued | ||
| Accumulated other comprehensive income (loss) | - | - |
| Common stock | ||
| Common stock, par value per share | ||
| Common stock, shares authorized | ||
| Common stock, shares issued | ||
| Common stock, shares outstanding | ||
| Other stockholders equity (derived) | ||
| Retained earnings (accumulated deficit) | ||
| Treasury stock, at cost | - | - |
| Treasury stock, common shares held | ||
| Total Equity | ||
| Total liabilities and equity | ||
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | - | |
| Depreciation and amortization | ||
| Stock-based compensation | ||
| Deferred income taxes | - | - |
| Change in income taxes payable | ||
| Change in other operating assets | - | |
| Change in contract liabilities | - | - |
| Change in accounts payable and accrued liabilities | - | |
| Changes in operating assets and liabilities, net | ||
| Net cash from operating activities | ||
| Investing activities | ||
| Purchases of property and equipment | - | - |
| Other investing activities (derived) | - | - |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Dividends paid | - | |
| Proceeds from exercise of stock options | ||
| Proceeds from issuance of common stock | ||
| Other financing activities (derived) | - | - |
| Net cash from financing activities | - | |
| Net change in cash | - | |
| Cash at beginning of period | 28,669,441 | |
| Cash at end of period | 37,490,182 | |
| Supplemental cash flow information | ||
| Cash paid for interest | ||
| Cash paid for income taxes | ||
| Cash paid for income taxes, state and local | ||
| Common stock | Retained earnings (accumulated deficit) | Accumulated other comprehensive income (loss) | Treasury stock, at cost | Other stockholders equity (derived) | Total | |
|---|---|---|---|---|---|---|
| Balance at December 31, 2024 | 144,482 | -4,755,874 | -12,175,476 | -5,568,007 | 89,063,326 | 66,708,451 |
| Net income | ||||||
| Other equity movements | 8,352 | 0 | 2,223,186 | 0 | 9,387,314 | 11,618,852 |
| Balance at March 31, 2025 | 152,834 | -873,214 | -9,952,290 | -5,568,007 | 98,450,640 | 82,209,963 |
| Balance at December 31, 2025 | - | - | 99,624,713 | |||
| Net income | - | - | ||||
| Dividends | - | - | ||||
| Other equity movements | 850 | 0 | -2,055,257 | 0 | 358,194 | -1,696,213 |
| Balance at March 31, 2026 | - | - | 99,982,907 |
Kingstone Companies, Inc. is a public reporting company operating in the fire, marine and casualty insurance industry, and its executive offices are located in Kingston, New York. The accompanying unaudited condensed financial statements of the Company as of and for the period ended March 31, 2026 have been prepared from the Company's connected books and records, and the results of operations for this interim period are not necessarily indicative of the results that may be expected for the full year. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the periods presented, and they should be read in conjunction with the Company's audited annual financial statements. The Company's primary market risk exposure is interest rate risk on cash, cash equivalents and short-term investments, and the Company does not have material foreign currency or commodity price exposure. The Company is involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements.
Total revenue for the period ended March 31, 2026 was $59,775,736. Net premiums earned were $55,868,814, compared with $43,523,063 in the comparative period, an increase of 28.4%, and net investment income was $3,337,581, compared with $2,048,596, an increase of 62.9%. Commission revenue was $1,276,750, compared with $3,252,404, a decrease of 60.7%, and other revenue was $307,938, compared with $1,812,691, a decrease of 83.0%. The Company recorded net losses on investments of $1,015,347, compared with net losses of $137,979 in the comparative period. Unearned premiums totaled $153,642,731 at March 31, 2026, compared with $132,231,352, an increase of 16.2%, and premiums receivable were $19,027,968, compared with $17,012,840, an increase of 11.8%. Deferred policy acquisition costs were $27,799,748, compared with $24,400,992, an increase of 13.9%. The Company reported a net loss of $5,808,250 for the period, and recognized an income tax benefit of $1,592,992, all of which was deferred, compared with income tax expense of $835,681 in the comparative period.
Basic and diluted loss per share were each $0.40 for the period ended March 31, 2026, based on weighted-average basic shares outstanding of 14,453,747, with no dilutive adjustment to the share count because the effect of potentially dilutive securities would have been anti-dilutive. At March 31, 2026, the Company's debt consisted of current debt of $1,315,984 and long-term debt of $2,806,987, and the Company had no deposits outstanding. Current debt increased 6.0% from $1,241,294 in the comparative period, while long-term debt decreased 31.9% from $4,122,971. Interest expense was $69,855 for the period, compared with $227,454 in the comparative period, a decrease of 69.3%. The Company's operating lease liabilities, all of which are current, totaled $128,036 at March 31, 2026, and operating lease cost, which represented total lease cost for the period, was $13,391; no right-of-use assets were obtained in exchange for operating lease liabilities during the period. Operating lease right-of-use assets were $128,036, compared with $193,545 in the comparative period, a decrease of 33.8%. Total liabilities were $350,834,533 at March 31, 2026, including unpaid claims and claims adjustment expenses of $171,748,662, compared with $135,334,723, an increase of 26.9%, and accounts payable and accrued liabilities of $4,984,969, compared with $11,967,825, a decrease of 58.3%.
Total stockholders' equity was $114,504,510 at March 31, 2026. Stockholders' equity consisted of common stock of $160,066, other stockholders' equity of $99,982,907, retained earnings of $28,066,331, accumulated other comprehensive loss of $8,136,787 and treasury stock, at cost, of $5,568,007. Common stock increased 4.7% from $152,834 in the comparative period, and other stockholders' equity increased 1.6% from $98,450,640. Retained earnings of $28,066,331 compared with an accumulated deficit of $873,214 in the comparative period. Accumulated other comprehensive loss improved to $8,136,787 from $9,952,290, reflecting a change of 18.2%, and treasury stock, at cost, was unchanged at $5,568,007. [COMPLETE: description of common stock issuances, dividends and other equity transactions during the period, if any].
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the applicable rules and regulations of the Securities and Exchange Commission. In the opinion of management, the financial statements reflect all adjustments necessary for a fair statement of the financial position, results of operations, and cash flows for the periods presented.
The financial statements include the accounts of the Company and its consolidated subsidiaries, if any. All intercompany balances and transactions have been eliminated in consolidation.
Property and equipment are stated at cost less accumulated depreciation. Depreciation is recognized over the estimated useful lives of the related assets, generally on a straight-line basis. Expenditures for maintenance and repairs are expensed as incurred.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When the carrying amount of an asset or asset group is not recoverable, an impairment loss is recognized for the amount by which the carrying amount exceeds fair value.
The Company determines whether an arrangement is or contains a lease at inception. For leases with terms greater than twelve months, a right-of-use asset and a corresponding lease liability are recognized at the lease commencement date, measured at the present value of the remaining lease payments over the lease term.
Debt is carried at amortized cost. Debt issuance costs and discounts or premiums are presented as an adjustment to the carrying amount of the related debt and amortized to interest expense over the contractual term of the debt.
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized when it is more likely than not that some portion of the deferred tax assets will not be realized.
Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock, except when the effect would be antidilutive.
Equity instruments issued by the Company are classified in stockholders' equity based on their terms. The components of stockholders' equity and the changes in those components for the periods presented are set forth in the equity note.
The Company evaluates the applicability and impact of Accounting Standards Updates issued by the Financial Accounting Standards Board as they are issued. Adopted updates and updates not yet effective are not expected to have a material effect on the financial statements, except as otherwise described in these notes.
| Current | Prior | |
|---|---|---|
| Debt, current | ||
| Deposits | 0 | |
| Long-term debt | ||
| Operating lease liabilities, current | ||
| Total debt | 4,251,007 | 8,484,735 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | ||
| Total property and equipment | 8,017,975 | 7,897,675 |
| Current | Prior | |
|---|---|---|
| Net carrying amount | 500,000 | 500,000 |
| Current | Prior | |
|---|---|---|
| Accumulated other comprehensive income (loss) | - | - |
| Common stock | ||
| Other stockholders equity (derived) | 99,982,907 | 99,624,713 |
| Retained earnings (accumulated deficit) | ||
| Treasury stock, at cost | - | - |
| Total stockholders' equity | 114,504,510 | 122,731,249 |
| Current | Prior | |
|---|---|---|
| Weighted average shares outstanding, basic | ||
| Dilutive effect of potential common shares | ||
| Weighted average shares outstanding, diluted | ||
| Basic earnings per share | -0.40 | 0.29 |
| Diluted earnings per share | - |
| Current | Prior | |
|---|---|---|
| Operating lease cost | ||
| Total lease cost | ||
| Right-of-use assets obtained in exchange for operating lease liabilities |
| Amount | |
|---|---|
| Total deferred | ( |
| Total income tax expense (benefit) | (1,592,992.00) |
| Current | Prior | |
|---|---|---|
| Deferred tax assets, gross | ||
| Operating loss carryforwards | ||
| Other deferred tax assets | ||
| Valuation allowance | ||
| Tax credit carryforwards | ||
| Deferred income | ||
| Unrealized losses on trading securities | ||
| Operating loss carryforwards, pre-tax | ||
| Deferred income tax liabilities | ||
| Property and equipment | ||
| Intangible assets | ||
| Investments | ||
| Deferred expenses |
| Current | Prior | |
|---|---|---|
| Depreciation and amortization | 715,507 | 623,863 |
Kingstone Companies, Inc. is a public reporting company classified under Fire, Marine & Casualty Insurance. For the quarter ended March 31, 2026, we reported total revenue of $59,775,736 and a net loss of $5,808,250. The net loss represented basic loss per share of $0.40 on weighted-average basic shares outstanding of 14,453,747. The following discussion compares our results of operations for the quarter to the comparable prior-year period and should be read together with our condensed consolidated financial statements and the related notes.
Net premiums earned, our largest revenue component, increased 28.4% to $55,868,814 from $43,523,063 in the prior-year period. Growth in the book of business was also reflected on the balance sheet, where unearned premiums increased 16.2% to $153,642,731 from $132,231,352 and premiums receivable increased 11.8% to $19,027,968 from $17,012,840. Net investment income increased 62.9% to $3,337,581 from $2,048,596, consistent with the expansion of our portfolio of debt securities available for sale to $293,800,426 from $204,282,369. These increases were partially offset by a 60.7% decline in commission revenue to $1,276,750 from $3,252,404, an 83.0% decline in other revenue to $307,938 from $1,812,691, and net losses on investments of $1,015,347 compared with net losses of $137,979 in the prior-year period.
Other operating expenses increased 66.5% to $46,289,891 from $27,798,941, representing the most significant driver of the increase in total expenses, while the liability for unpaid claims and claims adjustment expenses increased 26.9% to $171,748,662 from $135,334,723. Commission expense increased 9.5% to $10,195,412 from $9,312,880, other underwriting expenses increased 12.9% to $8,361,273 from $7,405,422, and other operating costs increased 118.3% to $2,260,547 from $1,035,737. Deferred policy acquisition costs increased 13.9% to $27,799,748 from $24,400,992 in connection with the growth in premiums written. Interest expense decreased 69.3% to $69,855 from $227,454, reflecting the reduction of long-term debt to $2,806,987 from $4,122,971. We recorded an income tax benefit of $1,592,992 for the quarter compared with income tax expense of $835,681 in the prior-year period, and deferred tax assets increased to $6,318,887 from $5,132,770.
Our principal sources of liquidity are premiums collected, investment income, and proceeds from the sale and maturity of investments, and our principal uses are the payment of claims, operating expenses, and debt service. Cash and cash equivalents at March 31, 2026 were [COMPLETE: cash and cash equivalents balance and comparison to prior period]. Restricted cash and equivalents decreased 69.7% to $11,355,391 from $37,490,182, while accounts payable and accrued liabilities decreased 58.3% to $4,984,969 from $11,967,825. At quarter-end, our investment portfolio consisted of debt securities available for sale of $293,800,426, debt securities held to maturity of $6,041,016, other invested assets of $9,839,800, and other investments of $3,756,749. Reinsurance recoverables were $57,996,924 compared with $60,818,148, and prepaid reinsurance premiums were $4,934,974 compared with none in the prior-year period. Our outstanding indebtedness consisted of current debt of $1,315,984, long-term debt of $2,806,987, and current operating lease liabilities of $128,036. Total liabilities were $350,834,533 and total stockholders' equity was $114,504,510 at March 31, 2026. Accumulated other comprehensive loss narrowed to $8,136,787 from $9,952,290, and treasury stock remained unchanged at $5,568,007. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Management believes that our existing cash, investment portfolio, and cash flows from operations will be sufficient to meet our liquidity needs for at least the next twelve months [COMPLETE: confirm management's assessment of liquidity sufficiency and any planned capital actions].
Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. Primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. The company does not have material foreign currency or commodity price exposure. Market risk represents the potential for loss arising from adverse changes in market prices and rates, and we manage this exposure principally through the composition and duration of our investment portfolio. KINGSTONE COMPANIES, INC. is a public reporting company classified under Fire, Marine & Casualty Insurance, and our investment portfolio is held to support the payment of policyholder obligations, including Unpaid claims and claims adjustment expenses of $171,748,662 and Unearned premiums of $153,642,731 at March 31, 2026.
Changes in interest rates directly affect the fair value of our fixed-income securities, with rising rates generally reducing fair value and declining rates generally increasing it. At March 31, 2026, Debt securities available for sale were $293,800,426 compared with $204,282,369 in the prior period, an increase of 43.8%, and Debt securities held to maturity were $6,041,016 compared with $7,046,023, a decrease of 14.3%. We also held Other invested assets of $9,839,800 and Other investments of $3,756,749, along with Restricted cash and equivalents of $11,355,391 compared with $37,490,182 in the prior period. Reflecting the larger fixed-income portfolio and prevailing yields, Net investment income was $3,337,581 for the period compared with $2,048,596 in the prior period, an increase of 62.9%. We recognized net losses on investments of $1,015,347 compared with net losses of $137,979 in the prior period. Unrealized changes in the fair value of our available-for-sale portfolio are reflected in stockholders' equity, and our accumulated other comprehensive loss was $8,136,787 at March 31, 2026 compared with $9,952,290 in the prior period. [COMPLETE: table quantifying the estimated change in fair value of the fixed-income portfolio under hypothetical parallel shifts in interest rates of 100 and 200 basis points]
Our borrowings expose us to a more limited degree of interest rate risk. At March 31, 2026, current debt was $1,315,984 compared with $1,241,294 in the prior period, and long-term debt was $2,806,987 compared with $4,122,971, a decrease of 31.9%. Interest expense was $69,855 for the period compared with $227,454 in the prior period, a decrease of 69.3%. [COMPLETE: description of the fixed or variable rate terms of outstanding borrowings and the estimated effect of a change in market interest rates on interest expense] We do not use derivative financial instruments for trading or speculative purposes, and we will continue to monitor our interest rate exposure and adjust our portfolio as market conditions and our liability profile warrant.
Kingstone Companies, Inc. maintains disclosure controls and procedures designed to ensure that information required to be disclosed in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to management, including [COMPLETE: titles of the principal executive officer and principal financial officer], to allow timely decisions regarding required disclosure. Management evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report and concluded that they were effective at the reasonable assurance level. This evaluation was performed as of March 31, 2026, the end of the quarter covered by this quarterly report.
There were no changes in the Company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting. Management continues to monitor the design and operation of its controls and will report any future changes that meet this threshold in the period in which they occur.
Management recognizes that any system of controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that its objectives will be met, and that the design of any control system must reflect resource constraints and judgments about the likelihood of future events. [COMPLETE: Management must review and formally adopt the conclusion language above, including the effectiveness determination and the statement regarding changes in internal control over financial reporting, before this report is filed.]
Kingstone Companies, Inc. is a public reporting company classified under Fire, Marine & Casualty Insurance, and in the ordinary course of conducting that business, the Company is involved in legal proceedings arising in the ordinary course of business from time to time. Such matters may include claims-related litigation and other disputes that are incidental to the operation of a property and casualty insurance business.
Management does not currently believe any pending matter is material to the financial statements. The Company evaluates the status of pending matters on an ongoing basis and records accruals when a loss is considered probable and reasonably estimable in accordance with applicable accounting guidance. The outcome of litigation is inherently uncertain, and there can be no assurance that the ultimate resolution of any pending or future matter will not have an adverse effect on the Company's results of operations or cash flows in a particular reporting period.
As of March 31, 2026, the Company was not a party to any legal proceedings that management considers material to its financial condition or results of operations. The Company is involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements.
Our business and financial results are subject to a number of risks and uncertainties, and the risk factors described in our Annual Report on Form 10-K for the fiscal year ended [COMPLETE: fiscal year end date of the most recent Annual Report on Form 10-K] should be read together with the information below. KINGSTONE COMPANIES, INC. is a public reporting company classified under Fire, Marine & Casualty Insurance, and as a property and casualty insurer our results depend heavily on the adequacy of our pricing and reserving, the frequency and severity of insured losses, and the availability and cost of reinsurance. For the period ended March 31, 2026, we reported revenue of $59,775,736 and a net loss of $5,808,250, and there can be no assurance that we will return to profitability in future periods.
Our exposure to underwriting and claims risk has grown with the size of our book of business. Net premiums earned increased to $55,868,814 from $43,523,063 in the prior period, an increase of 28.4%, while unearned premiums rose 16.2% to $153,642,731, and any inadequacy in the rates we charge on this larger volume of business would be reflected in future underwriting results. Our liability for unpaid claims and claims adjustment expenses increased 26.9% to $171,748,662 from $135,334,723, and if actual losses develop unfavorably relative to these estimates we would be required to increase reserves, which would reduce earnings and stockholders' equity. We also rely on reinsurance, with reinsurance recoverables of $57,996,924 and prepaid reinsurance premiums of $4,934,974 as of the end of the period, and the failure of a reinsurer to meet its obligations, or an increase in the cost or reduction in the availability of reinsurance, could adversely affect our results. Other operating expenses increased 66.5% to $46,289,891 from $27,798,941, and other operating costs increased 118.3% to $2,260,547, and continued growth in our expense base that is not matched by premium growth would further pressure our margins.
Our investment portfolio exposes us to market risk. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Debt securities available for sale increased 43.8% to $293,800,426 from $204,282,369, and changes in interest rates or credit spreads could result in unrealized losses that reduce our accumulated other comprehensive income and stockholders' equity. We recognized net losses on investments of $1,015,347 in the current period compared with net losses of $137,979 in the prior period, while net investment income increased 62.9% to $3,337,581, and future investment results may be volatile and may not offset underwriting losses.
Our liquidity, capital position, and regulatory standing are also subject to risk. Restricted cash and equivalents declined 69.7% to $11,355,391 from $37,490,182, and total liabilities of $350,834,533 compared with total equity of $114,504,510 as of the end of the period, and a deterioration in our capital position could limit our ability to write new business or satisfy regulatory capital requirements. We had long-term debt of $2,806,987 and current debt of $1,315,984, and our ability to service or refinance these obligations depends on our operating cash flows and access to capital markets. We are involved in legal proceedings arising in the ordinary course of business from time to time, and although management does not currently believe any pending matter is material to the financial statements, an adverse outcome in litigation could have a material adverse effect on our results. Management evaluated our disclosure controls and procedures as of the end of the period and concluded they were effective at the reasonable assurance level, and no changes materially affected internal control over financial reporting during the quarter; however, any future failure to maintain effective controls could impair our ability to report our financial results accurately and on a timely basis.
The following information is provided by Kingstone Companies, Inc. with respect to the quarterly period ended March 31, 2026. The company is involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements.
Pursuant to Item 408(a) of Regulation S-K, the company discloses below the adoption and termination of Rule 10b5-1 trading arrangements by its directors and officers during the quarter. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]