Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 14

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 are not expected to have a material impact on the Company’s results of operations.

10 

Discontinued Operations

On May 7, 2024, NI Holdings entered into a Stock
Purchase Agreement (“Purchase Agreement”) to sell its subsidiary, Westminster, to Scott Insurance Holdings, a privately owned
Maryland limited liability company. Scott Insurance Holdings is affiliated with John Scott, Sr., the father of the president of Westminster,
John Scott, Jr. The sale closed on June 30, 2024. The Purchase Agreement included a cash purchase price of $10,500, subject to certain
post-closing adjustments, including a post-closing payment to NI Holdings for the amount by which the ending statutory surplus balance
for Westminster exceeded $20,000. The post-closing payment received from Scott Insurance Holdings during the third quarter of 2024 was
$1,772 and has been included as an adjustment to the purchase price for the calculation of the loss on the sale of Westminster. The sale
of Westminster, which represented the majority of our Commercial segment in prior periods, was a strategic shift that has had a major
effect on our operations and financial results. Therefore, Westminster has been reported as discontinued operations in the Consolidated
Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Cash Flows for all periods presented in this Form
10-Q. All current and prior periods reflected in this Form 10-Q have been presented as continuing and discontinued operations, unless
otherwise noted. For additional information see Part I, Item 1, Note 19 “Discontinued Operations” of this Form 10-Q.

Recent Accounting Pronouncements

Adopted

For information regarding accounting pronouncements
that the Company adopted during the periods presented, see Part II, Item 8, Note 2 “Recent Accounting Pronouncements” section
of the 2024 Annual Report.

Not Yet Adopted

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, “Income
Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires that an entity, on an annual basis, disclose
additional income tax information, primarily related to the rate reconciliation and income taxes paid. The guidance is intended to enhance
the transparency and decision usefulness of income tax disclosures. The amendments in this update are effective for annual periods beginning
after December 15, 2024. We are currently evaluating the impact of the new standard on