Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1809

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 6
Chunk 1809
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 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 our consolidated financial statements, which is
expected to result in enhanced disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, “Income Statement
- Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.”
This guidance is intended to improve disclosures about a public business entity's expenses and address requests from investors for more
detailed information about the types of expenses in commonly presented expense captions. Such information should allow investors to better
understand an entity's performance, assess future cash flows, and compare performance over time and with other entities. The amendments
will require public business entities to disclose in the notes to the financial statements, at each interim and annual reporting period,
specific information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and intangible
asset amortization included in each expense caption presented on the face of the statement of operations, and the total amount of an entity's
selling expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods
beginning after December 15, 2027, and may be applied either prospectively or retrospectively. Early adoption is permitted. The Company
is currently evaluating the impact of adopting this guidance on the consolidated financial statements.

3.       Summary
of Significant Accounting Policies and Basis of Presentation

Basis of Consolidation

Our consolidated financial statements, which we
have prepared in accordance with GAAP, include our accounts and those of our wholly-owned subsidiaries, including Battle Creek, which
was consolidated as a variable interest entity (“VIE”) with an associated non-controlling interest prior to January 2, 2024.
We have eliminated all significant intercompany accounts and transactions in consolidation.

56 

Use of Estimates

In preparing our consolidated financial statements,
management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet,
and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.

We make estimates and assumptions that can have
a significant effect on amounts and disclosures we report