Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 804

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1C
Chunk 804
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 was required to file its federal
income tax returns on a stand-alone basis until the demutualization on January 2, 2024, had net operating loss carryforwards of $3,756
and $3,963 at December 31, 2023 and 2022, respectively. Subsequent to the demutualization, Battle Creek will be included in the NI Holdings
consolidated tax return. As a result of the demutualization, the Battle Creek net operating loss carryforwards were written off in 2024
as they will not be available to offset income within the NI Holdings consolidated tax return, and the $505 associated valuation allowance
was no longer necessary.

Westminster, which became part of the Company’s
consolidated federal income tax return beginning in 2020, had $1,270 of net operating loss carryforward at December 31, 2022. This net
operating loss carryforward expired in 2023.

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15.       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.

Effective for the year ended December 31, 2022,
the Company adopted the updated guidance for leases. See Part II, Item 8, Note 2 “Recent Accounting Pronouncements” for additional
information. 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