Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 35

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 35
---
.

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 $115 and $122 related to these
leases during the three months ended March 31, 2025 and 2024, respectively.

Additional information regarding the Company’s leases are as
follows:

     As of and For the Three Months Ended March 31,      2025   2024   Operating lease cost  $91   $96   Finance lease cost:            Amortization of right-of-use assets   20    20   Interest on lease liabilities   4    6   Finance lease cost   24    26   Total lease cost  $115   $122                Other information on leases:            Cash payments included in operating cash flows from operating leases  $97   $101   Cash payments included in operating cash flows from finance leases   4    6   Cash payments included in financing cash flows from finance leases   26    25   Right-of-use assets obtained in exchange for new operating lease liabilities   —    —   Right-of-use assets obtained in exchange for new finance lease liabilities   —    —   Weighted average discount rate – operating leases   4.47%    3.94%   Weighted average discount rate – finance leases   8.50%    8.50%   Weighted average remaining lease