Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 264

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 264
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 class actions and individual
suits alleging breach of fiduciary or other duties, including our obligations to indemnify directors and officers in connection with certain
legal matters. We are also subject to litigation arising out of our general business activities such as contractual and employment relationships
and claims regarding the infringement of the intellectual property of others. Plaintiffs in class action and other lawsuits against us
may seek large or indeterminate amounts of damages, including punitive and treble damages, which may remain unknown for substantial periods
of time.

New or changes to existing accounting rules and standards could adversely
impact our reported results of operations. 

Our consolidated financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America (“GAAP”), as promulgated by the Financial Accounting Standards
Board (“FASB”), subject to the accounting-related rules and interpretations of the SEC. New accounting rules or changes in
accounting standards or how they apply to our business may impact our reported financial condition or results of operations, and could
cause increased volatility in reported earnings, which could affect the trading price of our common stock or our credit ratings.

Risks Related to Our Common Stock

Nodak Mutual Group’s majority control
of our common stock will enable it to exercise voting control over most matters put to a vote of shareholders.

Nodak Mutual Group owns a majority of our outstanding
common stock and, through its Board of Directors, is able to exercise voting control over most matters put to a vote of shareholders.
The votes cast by Nodak Mutual Group may not be in the best interests of all shareholders. For example, Nodak Mutual Group may exercise
its voting control to defeat a shareholder nominee for election to the Board of Directors of NI Holdings.

In addition, certain provisions of our Articles
of Incorporation, such as the prohibition of cumulative voting for the election of directors and the prohibition on any person or group
acquiring and having the right to vote in excess of 10% of our outstanding stock without the prior approval of the Board of Directors
will make removal of the Company’s management difficult.

Our status as an insurance holding company
with no direct operations could adversely affect our ability to fund operations, execute future share repurchases, or meet potential future
shareholder dividend and/or debt obligations.

NI Holdings is an insurance holding company that
transacts substantially all of its business through its subsidiaries. A significant source of funds available to us for the payment of
operating expenses, share repurchases, and