Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 137

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 137
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 with Wells Fargo Bank,
N.A. The terms of the line of credit include a floating interest rate of 2.50% above the daily simple secured overnight financing rate.
There were no outstanding amounts during the six months ended June 30, 2025, or the year ended December 31, 2024. This line of credit
is scheduled to expire on December 13, 2025.

  13. 
  Income Taxes

We record any change to a previously recorded valuation allowance
as a result of re-measuring existing temporary differences and loss carryforwards as a component of income tax expense (benefit) from
continuing operations. The valuation allowance against certain deferred income tax assets was $2,093 and $2,506 at June 30, 2025 and December
31, 2024, respectively.

At June 30, 2025, and December 31, 2024, we had no unrecognized
tax benefits, no accrued interest and penalties, and no significant uncertain tax positions. No interest and penalties were recognized
during the six-month period ended June 30, 2025, or the year ended December 31, 2024.

Our effective tax rate for the six months ended June 30,
2025, was 26.2%, which was impacted by the $413 change in the recorded valuation allowance noted above. The effective tax rate for continuing
operations was 34.0% for the six months ended June 30, 2024. Federal income taxes were allocated to discontinued operations at a 21.1%
effective tax rate for the six months ended June 30, 2024.

  14. 
  Leases

Primero leases a facility in Spearfish, South Dakota under
a non-cancellable operating lease expiring in 2028. Direct Auto leases a facility in Chicago, Illinois under a non-cancellable operating
lease expiring in 2029. Nodak Insurance leases a facility in Fargo, North Dakota under a non-cancellable operating lease expiring in 2029.
In addition, Nodak Insurance leases server equipment under a non-cancellable finance lease expiring in 2026.

25 

We determine whether a contract is or contains a
lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control
and directs the use of identified property or equipment for a period of time in exchange for consideration. We