Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1228

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 3
Chunk 1228
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    Other 
     140  
     318 
  
    Total deferred income tax liabilities 
     6,116  
     9,254 

    Net deferred income tax asset 
     9,830  
     8,918 

    Valuation allowance 
     (2,506) 
     (505)
  
    Deferred income tax asset, net 
    $7,324  
    $8,413 

At December 31, 2024 and 2023, 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 years ended December 31, 2024, 2023, or 2022.

At December 31, 2024 and 2023, the Company had no
income tax related carryforwards for alternative minimum tax credits or capital losses.

At December 31, 2024, the Company had $2.5 million
in state net operating loss deferred tax assets, all of which are offset by a valuation allowance due to the Company’s judgment
that it is more likely than not that it will be unable to realize the benefits.

Battle Creek, which was required to file its federal
income tax returns on a stand-alone basis until the demutualization on January 2, 2024, had net operating loss carryforwards of $3,756
and $3,963 at December 31, 2023 and 2022, respectively. Subsequent to the demutualization, Battle Creek will be included in the NI Holdings
consolidated tax return. As a result of the demutualization, the Battle Creek net operating loss carryforwards were written off in 2024
as they will not be available to offset income within the NI Holdings consolidated tax return, and the $505 associated valuation allowance
was no longer necessary.

Westminster, which became part of the Company’s
consolidated federal income tax return beginning in 2020, had $1,270 of net operating loss carryforward at December 31, 2022. This net
operating loss carryforward expired in 2023.

88 

15.       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