Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 136

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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 anticipated that the only assets held by the ESOP will be shares
of the Company’s common stock. Participants in the ESOP cannot direct the investment of any assets allocated to their accounts.
The ESOP participants are employees of Nodak Insurance. The employees of Primero, Direct Auto, and Westminster do not participate in the
ESOP.

Each employee of Nodak Insurance automatically becomes a participant
in the ESOP if such employee is at least 21 years old, has completed a minimum of one thousand hours of service with Nodak Insurance,
and has completed an Eligibility Computation Period. Employees are not permitted to make any contributions to the ESOP. Participants in
the ESOP receive annual reports from the Company showing the number of shares of common stock of the Company allocated to the participants’
accounts and the market value of those shares. The shares are allocated to participants based on compensation as provided for in the ESOP.

In connection with the establishment of the ESOP, the Company created
a contra-equity account on the Consolidated Balance Sheet equal to the ESOP’s basis in the shares. The basis of those shares was
set at $10.00 per share as part of the IPO. As shares are released from the ESOP suspense account, the contra-equity account is credited,
which reduces the impact of the contra-equity account on the Company’s Consolidated Balance Sheets over time. The Company records
compensation expense related to the shares released, equal to the number of shares released from the suspense account multiplied by the
average market value of the Company’s stock during the period.

The Company recognized compensation expense related to the ESOP of
$78 and $92 during the three months ended June 30, 2025 and 2024, respectively, and $167 and $176 during the six months ended June 30,
2025 and 2024, respectively.

Through June 30, 2025, and December 31, 2024, the Company had released
and allocated 194,520 ESOP shares to participants, with a remainder of 45,480 ESOP shares in suspense at June 30, 2025, and December 31,
2024. Using the Company’s quarter-end market price of $12.74 per share, the fair value of the unearned ESOP shares was $579 at June
30, 2025.

  12. 
  Line of Credit

NI Holdings has a $3,000 line of credit