Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 41

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 certain deferred income tax assets was $2,093 and $2,506 at June 30, 2025 and December
31, 2024, respectively.

At June 30, 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 six-month period ended June 30, 2025, or the year ended December 31, 2024.

Our effective tax rate for the six months ended June 30,
2025, was 26.2%, which was impacted by the $413 change in the recorded valuation allowance noted above. The effective tax rate for continuing
operations was 34.0% for the six months ended June 30, 2024. Federal income taxes were allocated to discontinued operations at a 21.1%
effective tax rate for the six months ended June 30, 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.

25 

We determine whether a contract is or contains a
lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control
and directs the use of identified property or equipment for a period of time in exchange for consideration. We generally must also have
the right to obtain substantially all of the economic benefits from the use of the property and equipment. Lease assets and liabilities
are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present
value of lease payments not yet paid, we estimate incremental borrowing rates based on the floating interest rate on our Line of Credit
with Wells Fargo Bank, N.A. at the lease commencement date, as rates are not implicitly stated in most leases. Lease liabilities are included
in accrued expenses and other liabilities and right-of-use assets are included in other assets in the Consolidated Balance Sheets.

There were expenses of $114 and $