Reserves for unpaid losses and loss adjustment expenses of the insurance subsidiary are estimated using information derived from Company experience in addition to management’s estimate of expected future claims on those policies in force. Management’s estimate considers relevant industry information but is largely dependent upon management’s experience and judgment since prior Company experience and industry data available are extremely limited. In February, 2014, a performance bond obligee notified FSC of a claim under the bond relating to a non-performance by the principal. The total claim of approximately $83,000 was paid during the year ended May 31, 2014. Prior to 2014, FSC had experienced no claims for losses since its acquisition.
We have audited the accompanying consolidated balance sheets of Jacobs Financial Group, Inc. (the “Company”) as of May 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income (loss), cash flows, and Series A redeemable preferred stock and stockholders' deficit for each of the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
The Company held the following investments, by 	security type, that were	classified as available-for-sale and carried at fair value at May 31, 2015:
Principal repayments on U.S. government agency mortgage-backed securities held by the Company as of May 31, 2015 are estimated as follows:
As the result of the acquisition of FSC on December 30, 2005, in exchange for the purchase price of $2,900,000, the Company received cash and investments held by FSC with a fair value of $2,750,000, with the difference of $150,000 being attributed to the property and casualty licenses of FSC in the states of West Virginia, Ohio and Indiana. Such licenses have indefinite lives and are evaluated annually, or more frequently if circumstances indicate that a possible impairment has occurred, for recoverability and possible impairment loss. No impairment has been recorded in fiscal years ended May 31, 2015 and 2014.
As a result of an examination by the West Virginia Insurance Commissioner, a reserve strengthening in the form of an increase to the Loss Reserve was recorded in 2015 in the amount of approximately $800,000.
which are reflected in the accompanying financial statements as other liabilities. During July 2014, the Company satisfied its obligation to the State of West Virginia in full.
In fiscal 2014, the Company issued 691,000 shares of the Company's common stock as additional consideration in connection with new and continued borrowings totaling $666,000. The shares were valued at approximately $.006549 per share based on the average quoted closing price of the Company's stock for the 20-day period preceding the date of the transaction and totaled $4,525.
Minimum future lease payments under non-cancelable operating leases having remaining terms in excess of one year as of May 31, 2015 are:
During fiscal 2015, advances to the Company from Mr. Jacobs amounted to $1,008,717, and repayments to Mr. Jacobs amounted to $1,652,037. As of May 31, 2015, the balance due from Mr. Jacobs was $633,039. The largest aggregate amount outstanding from Mr. Jacobs in fiscal 2015 was $666,262.