Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 34

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 34
---
 Using the Company’s quarter-end market price of $14.26 per share, the fair value of the unearned ESOP shares was $649 at March
31, 2025.

  12.
  Line of Credit

NI Holdings has a $3,000 line of credit 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 three months ended March 31, 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 March 31, 2025 and
December 31, 2024, respectively.

At March 31, 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 three-month period ended March 31, 2025, or the year ended December 31, 2024.

23 

Our effective tax rate for the three months ended March
31, 2025, was 16.6%, which was impacted by the $413 change in the recorded valuation allowance noted above. The effective tax rate for
continuing operations was 21.5% for the three months ended March 31, 2024. Federal income taxes were allocated to discontinued operations
at a 21.0% effective tax rate for the three months ended March 31, 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