the ability of the Company to refinance redeemable preferred stock and notes payable maturing in March 2004 and April 2004, respectively;
Net loss to common shareholders $ (4,194 ) $ (5,051 ) $(21,518 )
All other Financial Statement Schedules are omitted because they are not applicable or the required Information is shown in the Financial Statements or notes thereto.
The Company’s revenues result primarily from premiums and fees from the insurance products sold by its wholly-owned subsidiaries National Foundation Life Insurance Company (“NFL”), Freedom Life Insurance Company of America (“FLICA”), National Financial Insurance Company (“NFIC”) and American Insurance Company of Texas (“AICT”), and together with NFL, NFIC and FLICA, collectively, the “Insurance Subsidiaries”, and marketed by NationalCare® Marketing, Inc. (“NCM”), also a wholly-owned subsidiary. The Insurance Subsidiaries are licensed to conduct business in 40 states and the District of Columbia. Each of the following states accounted for more than 5% of premium revenue for the year ended December 31, 2002: Florida - 17%, Texas - 15% and Oklahoma - 6%. The Company has no significant concentrations of credit risks.
In June, 1998, the FASB issued SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“SFAS 133”). This statement (as amended by SFAS No. 137, “Accounting For Derivative Instruments and Hedging Activities, Deferral of the Effective Date of SFAS No. 133, an amendment of SFAS No. 133”) is effective for fiscal years beginning after June 15, 2000. The pronouncement established accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. The adoption of SFAS 133 did not have a material impact on the Company’s results of operations, liquidity or financial position.
During 2002, Ascent paid preferred stock dividends through the issuance of 3,261 additional shares of preferred stock and $1,831 in cash for fractional shares. During 2001, the Company paid preferred stock dividends through the issuance of 2,930 additional shares of preferred stock and $1,603 in cash for fractional shares. In December 2000, the Company paid preferred stock dividends through the issuance of 2,575 additional shares of preferred stock and $825 in cash for fractional shares.
The Insurance Subsidiaries are precluded from paying dividends during 2003 without prior approval of the Texas Insurance Commissioner as the companies’ earned surplus is negative. On September 30, 2000, NFL transferred its 100% ownership of FLICA to Ascent through an extraordinary dividend approved by the Texas Department of Insurance. Generally, all states require insurance companies to maintain statutory capital and surplus that is reasonable in relation to their existing liabilities and adequate to their financial needs. The Texas Department of Insurance also maintains discretionary powers relative to the declaration and payment of dividends based upon an insurance company’s financial position. Due to recent statutory losses incurred by the Insurance Subsidiaries, the Company does not expect to receive any dividends from the Insurance Subsidiaries for the foreseeable future.
Decrease in deferred tax asset valuation allowance attributable to unrealized gain on investments