EDGAR 10-K Filing

Company CIK: 1463913
Filing Year: 2025
Filename: 1463913_10-K_2025_0001437749-25-008074.json

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ITEM 1. BUSINESS
ITEM 1.
BUSINESS.
Overview and History - US Alliance Corporation ("USAC") was formed as a Kansas corporation on April 24, 2009 to raise capital to form a new Kansas-based life insurance company. Our offices are located at 1303 SW First American Place, Suite 200, Topeka, Kansas 66604. Our telephone number is 785-228-0200 and our website address is www.usalliancecorporation.com.
USAC has four wholly-owned operating subsidiaries. US Alliance Life and Security Company ("USALSC") was incorporated June 9, 2011, to serve as our life insurance company. US Alliance Marketing Corporation ("USAMC") was incorporated April 23, 2012, to serve as a marketing resource. US Alliance Investment Corporation ("USAIC") was incorporated April 23, 2012 to serve as investment manager for USAC and its subsidiaries. Dakota Capital Life Insurance Company (“DCLIC”), was acquired on August 1, 2017 when USAC merged with Northern Plains Capital Corporation (“NPCC”) and was merged into USALSC on December 31, 2023. US Alliance Life and Security Company - Montana ("USALSC-Montana"), was acquired December 14, 2018. USALSC-Montana is a wholly-owned subsidiary of USALSC. Unless the context otherwise indicates, references in this registration statement to "we", "us", "our", or the "Company" refer collectively to USAC and its subsidiaries.
We initially capitalized our subsidiaries with proceeds from intrastate public offering(s) registered by qualification with the office of Kansas Securities Commissioner.
USALSC received a Certificate of Authority from the Kansas Insurance Department ("KID") effective January 2, 2012, and sold its first insurance product on May 1, 2013. USALSC re-domesticated to North Dakota in 2023. USALSC currently offers the following eight product categories:
Solid Solutions Term Life Series®, Registered Trademark No. 4,740,828. This simplified issue term life insurance product is designed to provide coverage with a face value of $250,000 or less. This product features limited underwriting and is offered with 10, 20, 25, and 30 year terms.
Sound Solutions Term Life Series®, Registered Trademark No. 4,740,827. This is a fully underwritten term life insurance product designed to provide coverage for higher face amounts. This product features multiple risk classifications and is offered with 15, 20, 25 and 30 year terms.
Pioneer Whole Life. This is a traditional whole life insurance product designed to provide permanent coverage with a limited premium paying period. This product is sold with death benefits typically ranging from $25,000 to $100,000.
Legacy Juvenile Series®, Registered Trademark No. 4,577,835. This product is term life insurance to age 25 available for purchase on children up to the age of 16 in an amount of $10,000 or $20,000 with a one-time premium payment.
American Annuity Series®, Registered Trademark No. 4,582,074. This product is a flexible premium deferred annuity with initial rates guaranteed for five years by company practice.
Thoughtful Pre-Need Series®, Registered Trademark No. 4,620,073. This series of products includes a single or multiple pay premium pre-need whole life insurance policy sold by funeral directors who are licensed by the KID in conjunction with a preplanned funeral. This product is typically sold with smaller death benefits than our traditional Pioneer Whole Life.
Group Products. This is a series of group non-medical insurance products developed for the small group marketplace. These products are sold to employers and provide benefits for their employees. Our group suite of products includes group term life insurance, group long term disability, and group short term disability.
Critical Illness. This individual policy provides cash benefits to the insured should certain defined illnesses or injuries occur.
USALSC-Montana is not marketing products at this time.
Our single pay life products (which include our Juvenile and Pre-Need products) accounted for 68% of 2024 direct premium revenue. Our individual life and Critical Illness products (which include Term Life and Whole Life products) accounted for 16% of 2024 direct premium revenue. Our group products accounted for 16% of 2024 direct written premiums.
USALSC seeks opportunities to develop and market additional products.
Our business model also seeks the acquisition by USAC and/or its subsidiaries of other insurance and insurance related companies, including third-party administrators, marketing organizations, and rights to blocks of insurance business through reinsurance or other transactions.
Material Agreements and Partners - Effective January 1, 2013, USALSC entered into a reinsurance agreement with Unified Life Insurance Company (“ULIC”) to assume 20% of a certain block of health insurance policies. This agreement renews annually unless either party provides written notice of its intent not to renew at least 120 days prior to the expiration of the then-current term. The agreement provides for monthly settlement. For the year ended December 31, 2024, USALSC assumed premiums of $4,806,183.
On September 1, 2015, USALSC entered into an agreement to provide certain insurance administrative functions, data processing systems, daily operational services, management consulting, and marketing development to DCLIC. This agreement had an initial term of 60 months (beginning on September 1, 2015), continues month to month after the initial 60 month period, and requires 90-day advance written notice to terminate. In addition, the agreement requires that certain products will be exclusively administered by USALSC and administrative services with respect to such products may not be transferred without our consent. The agreement provides for monthly settlement. On August 1, 2017, DCLIC became a wholly-owned subsidiary of USALSC as described below. Subsequent to the acquisition of DCLIC, this agreement became an intra-company agreement and is eliminated as a part of the consolidation of the financial statements of the companies. On December 31, 2023, DCLIC was merged into USALSC.
On August 1, 2017 the Company acquired NPCC pursuant to a Plan and Agreement of Merger dated May 23, 2017, under which Alliance Merger Sub, Inc. (“Acquisition”), a wholly owned subsidiary of the Company, merged with and into Northern Plains (“Merger”) with Acquisition being the surviving company. Pursuant to the agreement, the Company exchanged .5841 shares of the Company’s common stock for each share of Northern Plains common stock, or 1,644,458 shares. Subsequent to the merger, Acquisition was merged into the Company and DCLIC was contributed to USALSC.
On September 30, 2017, USALSC entered into a coinsurance agreement with American Life and Security Corporation ("ALSC”) to assume 100% of a certain block of life insurance policies (the "2017 ALSC Agreement”). USALSC is also the servicer of this block of policies. USALSC paid a ceding commission of $1,850,000 and received $7,153,663 from ALSC. The 2017 ALSC Agreement will remain in effect until all liabilities associated with this block of policies have been satisfied.
On December 14, 2018, USALSC acquired Great Western Life Insurance Company ("GWLIC") pursuant to a Stock Purchase agreement entered into on October 11, 2018 with Great Western Insurance Company, a wholly-owned subsidiary of American Enterprise Group, Inc. USALSC paid $500,000 to acquire all outstanding shares of GWLIC. Subsequent to the acquisition, GWLIC was renamed US Alliance Life and Security Company - Montana.
On April 15, 2020, with an effective date of January 1, 2020, USALSC entered into a second coinsurance agreement with ALSC (the “2020 ALSC Agreement”) to assume a quota share percentage of a block of annuity policies. As of December 31, 2024, the Company had $42.8 million in assumed annuity deposits under the 2020 ALSC Agreement.
On December 31, 2020, USALSC and ALSC agreed to terminate a portion of the 2017 ALSC Agreement, pursuant to an amendment to the 2017 ALSC Agreement. USALSC transferred assets of $9,282,836 and received a ceding commission of $927,000. On December 31, 2020, USALSC and ALSC agreed to terminate a portion of the 2017 ALSC Agreement, pursuant to an amendment to the 2017 ALSC Agreement. USALSC transferred assets of $9,282,836 and received a ceding commission of $927,000.
On December 31, 2020, DCLIC entered into an assumption agreement with ALSC where it acquired a certain block of life insurance policies (the “ALSC Assumption Agreement”). Under the ALSC Assumption Agreement, DCLIC becomes directly liable to the policyholders of this block of business. DCLIC received assets equaling $9,282,836 and paid a ceding commission of $927,000 to ALSC.
On December 31, 2023 USALSC entered into a coinsurance agreement to acquire a block of life and annuity policies from Lewer Life Insurance Company.
USAC uses the actuarial firm of Miller & Newberg to provide valuation, pricing and illustration actuarial services for its insurance subsidiaries.
Investments - USAC and USAIC contracted in 2013 with New England Asset Management, Inc. (“NEAM”), a Berkshire Hathaway subsidiary, to manage the investments of USALSC and a portion of the investments of USAC. USALSC and USALSC-Montana have investment management agreements with USAIC, who has a sub-advisory agreement with NEAM. USALSC-Montana was added to this agreement on December 14, 2018. The investment parameters are determined by North Dakota law, the NDID, and the Montana Insurance Department, as well as the internal investment policies of USALSC, USALSC-Montana and USAC.
As a part of its 2020 ALSC Agreement, USALSC contracted with 1505 Capital LLC to provide investment services on the assets, including mortgage loan participations, supporting this agreement.
USAC internally manages a portfolio of equities within its investment policy guidelines (as modified from time to time, "Investment Policy"), which consider type of investments and investment instruments, and establishes diversification benchmarks to help manage investment risk. USAC's investment in its subsidiaries is managed outside of its Investment Policy.
The USAC Investment Policy may be modified by USAC's Board of Directors (the "Board" or "Board of Directors") in compliance with applicable law.
The following summarizes USAC’s Investment Policy, effective September 13, 2018 as amended:
Approved Investment Instruments. We may invest in the following approved investment classes in accordance with the restrictions and subject to the benchmark ranges set forth in our Investment Policy and described below:
United States Government Securities - bonds or other evidences of indebtedness that are fully guaranteed or insured by the U.S. Government or any agency or instrumentality thereof.
Securities of the District of Columbia, State, Insular or Territorial Possession Government of the United States -bonds or other evidences of indebtedness, without limitation, of the District of Columbia, State, or any political subdivision of such, or Insular or Territorial Possession of the United States.
Canadian Government, Provincial and Municipal Obligations -bonds or other evidences of indebtedness issued by the Dominion of Canada, or by any Province thereof, or by any municipality, agency or instrumentality thereof.
Fixed Income Obligations - bonds or other evidence of indebtedness issued, assumed or guaranteed by a corporation.
Equity Interests - preferred stocks, common stocks, mutual funds, exchange traded funds, master limited partnerships and other securities representing equity ownership interests in a corporation, provided that we may not own more than 2% of any corporation, mutual fund, exchange traded fund, master limited partnership or other equity security.
Real Estate - real estate for use in the operations of the Company, which we refer to as "Home Office Real Estate," or for the production of income. We may also invest in shares of beneficial interest in or obligations issued by a Real Estate Investment Trust qualified under pertinent sections of the United States Internal Revenue Code.
Mortgage Loans - first-lien mortgage loans on commercial or residential property with loan to value of no greater than 80% at the time of purchase.
Mortgage - Backed Securities - mortgage-backed securities issued by the Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), or a private entity. Any such securities must be rated investment grade by Moody's, S&P or Fitch.
Asset-Backed Securities - asset-backed securities designated as investment grade by Moody's, S&P or Fitch or the equivalent rating by another nationally recognized statistical rating organization.
Certificates of Deposit, Time Deposits, Overnight Bank Deposits, Banker's Acceptances and Repurchase Agreements - certificates of deposit, time deposits, overnight bank deposits, banker's acceptances issued by federally insured banks with maturities of 270 days or less from the date of acquisition, repurchase agreements with acceptable collateral and maturities of 270 days or less from date of acquisition.
Commercial Paper - commercial paper of US corporations that are rated at least "A-2" by S&P or "P-2" by Moody's or the equivalent rating of another nationally recognized statistical rating organization if S&P or Moody's cease publishing ratings of these securities, and have maturities of 270 days or less from the date of acquisition.
Money Market Accounts or Funds - money market accounts or funds that meet the following criteria:
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A substantial portion of the assets of the money market account or fund must be comprised of certain qualifying investments instruments;
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Issuers of the fund or account's investments must have a combined capital and surplus in excess of $500,000,000;
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Maturities of 270 days or less from the date of acquisition;
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Have net assets of not less than $500,000,000; and
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Have the highest rating available of S&P, Moody's, or Fitch, or carry an equivalent rating by a nationally recognized statistical rating organization if the named rating agencies cease publishing ratings of investments.
Diversification. Our portfolio is constructed to diversify risk with respect to asset class, geographical location, quality, maturity, business sector and individual issuer and issue concentrations.
Benchmarks. We benchmark the allocation of our investments based on the criteria set forth in the table below to help assure our investments are appropriately diversified. The benchmarks may change to respond to market conditions. Based on market conditions and other considerations, investments in the approved investment instruments described are maintained in the following ranges:
% of Portfolio Cost Value
Asset Class
Minimum
Maximum
Cash/Short Term
%
%
Investment Grade Fixed Income
%
%
High Yield Fixed Income
%
%
Equity
%
%
Mortgage and Mortgage related
%
%
Real Estate (including REITs)
%
%
The Executive Committee of our Board of Directors may modify the above benchmark ranges at any time deemed appropriate based on current conditions. Any such modifications will be subject to approval by the full Board of Directors at its next regularly scheduled meeting. USALSC's, and USALSC-Montana’s investment policy, as a regulated insurance entity, contains additional investment limitations as required by law.
Reporting. The President, CEO, or their respective designees provide monthly reports to the Board of Directors reflecting the securities purchased and sold during the quarter, securities held at the end of the quarter, current benchmarks and an overall evaluation of the portfolio's investment performance.
Marketing and Distribution - USALSC uses independent consultants and referrals to market their products and build distribution channels among funeral homes, banks, accountants, independent insurance agencies, agents, insurance brokerage firms, business owners and other distribution channels as opportunities arise. USALSC works with other insurance companies who have captive or non-captive agents to broaden their product offerings.
Employees - As of December 31, 2024, USAC and its subsidiaries have thirteen full-time employees and three part-time employees.
Reports to Security Holders - We provide reports to our stockholders, along with our audited year-end financial statements. In addition, all periodic reports and other information we file with the U.S. Securities and Exchange Commission (the “SEC”) are available for inspection and copying at the public reference facilities of the Securities and Exchange Commission located at 100 F Street N E, Washington, D C 20549.
Copies of such material may be obtained by mail from the Public Reference Section of the Securities and Exchange Commission, 100 F Street, N E, Washington, D.C. 20549, at prescribed rates.
Information on the operation of the Public Reference Room may be obtained by calling the SEC at l-800-SEC-0330. In addition, the Commission maintains a World Wide Website on the Internet at: http://www.sec.gov that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. You may also find this information on our website (http://www.usalliancecorporation.com).
Implications of Having Been an Emerging Growth Company and Loss of Emerging Growth Company Status - We ceased being an emerging growth company on December 31, 2022, the last day of our fiscal year following the fifth anniversary of the completion of our initial public offering in 2017. Under the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We elected to use this extended transition period to comply with new or revised accounting standards that have different effective dates for public and private companies during the period in which we were an emerging growth company. As a result, our financial statements while we were an emerging growth company may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.
As a result of our ceasing to qualify as an emerging growth company, beginning in the fiscal year 2023, we are no longer able to take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to SEC reporting companies. Specifically, we are now required to:
• Comply with requirements that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
• Submit certain executive compensation matters to stockholder non-binding advisory votes;
• Submit for stockholder approval golden parachute payments not previously approved;
• Disclose certain executive compensation related items, although we remain subject to the scaled disclosure requirements of a smaller reporting company with respect to executive compensation disclosure.
Because the worldwide market value of our common stock held by non-affiliates, or public float, is below $250 million, we continue to qualify as a “smaller reporting company” as defined under the Exchange Act. Although we are no longer an emerging growth company, certain reduced disclosure and other requirements continue to be available to us because we are a smaller reporting company. As a smaller reporting company we are not required to:
• Have an auditor report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; and
• Present more than two years of audited financial statements in our registration statements and annual reports on Form 10-K and present any selected financial data in such registration statements and annual reports.
The additional compliance and reporting requirements resulting from the loss of our emerging growth company status may increase our legal and financial compliance costs and may result in an increase in demands on management resources. However, our continuing status as a smaller reporting company will reduce some of the additional expense and management attention necessary to be dedicated to such increased compliance obligations.

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ITEM 1A. RISK FACTORS
ITEM 1A.
RISK FACTORS.
Risks Associated with an Investment in USAC Stock
We face many significant risks in the operating of our business and may face significant unforeseen risks as well. Our significant material risks are set forth below:
SHARE OWNERSHIP RISK - An investment in our voting common stock is speculative. Shares of our voting common stock constitute a high-risk investment in a business that has experienced profit in 5 of the last 6 years with accumulated losses of $10,018,342 since inception. No assurance or guaranty can be given that any of the benefits envisioned by our business plan will prove to be available to our stockholders, nor can any assurance or guaranty be given as to the actual amount of financial return, if any, which may result from ownership of our voting Common Stock. The entire value of the shares of USAC Common Stock may be lost.
OPERATING RISK - We faced the risks inherent in our business, including limited ability to raise additional capital, challenging product markets, limited revenues, as well as competition from better-capitalized and more seasoned companies. We have no control over general economic conditions, competitors’ products or their pricing, customer demand, costs of marketing or advertising, hacking of our administrative systems, and any impact from artificial intelligence. While we have been profitable for 5 of the last 6 years, there can be no assurance that our profitability will continue. The likelihood of future success must be considered in light of our history of operations with the cumulative accumulated operating losses. These risks make it difficult to predict our future revenues or results of operations accurately. Recent changes to accounting guidance and regulatory pronouncements increase our operating results' volatility. As a result, our financial results fluctuate. The Company evaluates the financial condition of its reinsurers to minimize its exposure to losses from reinsurer insolvencies. Management believes any liabilities arising from this contingency would not be material to the Company’s financial position.
BREACH OF INTERNAL CONTROLS/FRAUD - Internal controls are established on all aspects of the business. If internal controls are breached, fraud, incorrect payment of funds, incorrect claim processing, or other material issues within the Company could result. Fraud from internal or external sources will hurt profitability and strain and limit financial resources needed for company to grow.
GENERATIVE AI RISK - Generative AI challenges quality and accuracy; repeatability; data privacy; auditability; copyright; data quality; fraudulent use; skill of prompt engineering to derive useful outputs; as well as ethical considerations regarding bias, transparency, accessibility, accountability, and regulation. The Company continues to monitor this evolving risk.
CYBER ATTACK-A variety of cyber attacks can leave any Company vulnerable to data loss or theft, system shutdown, and a large-scale timeframe of being unable to conduct business-related activities.
DEFICIENCY OF INTERNAL CONTROLS OVER FINANCIAL REPORTING-A deficiency of internal controls could leave assets vulnerable to accidental loss or loss from fraud. The integrity of the information used to make accurate business decisions could be compromised, and the business may not be in compliance with many federal, state, and local laws and regulations affecting its operation.
STRUCTURAL RISK/SYSTEMS RISK - The loss of primary, secondary, and backup power systems at the office or at cloud data facilities, failure of networking devices, file servers, server crashes, or undiagnosed errors masked by automated failure detection systems can lead to catastrophic failure of core systems and large scale downtime events.
REINSURANCE RELATIONSHIP RISK - The Company relies upon its reinsurers to provide expertise, financial strength, and growth opportunities and they play a key role in the success of the Company. The loss of a key reinsurance relationship could impact the future success of the Company.
LIQUIDITY RISK - While USAC is considered a “public company” by the SEC, there is no public market for USAC Common Stock and no assurance that one will develop or be sustained or that USAC Common Stock will become publicly traded. Our securities are not listed for trading on any national securities exchange, nor are bid or asked quotations reported in any over-the-counter quotation service, and we do not intend to seek any such listing in the foreseeable future.
PROFITABILITY - As is common among small life insurance companies, we have historically incurred significant losses. As of December 31, 2024 we had a consolidated accumulated deficit of $10.0 million. These losses were attributable primarily to costs of administration, volatility in net investment gains and losses, the substantial costs of writing new life insurance (which are deferred and amortized in accordance with our deferred acquisition policy) and include first year commissions payable to insurance agents, medical and investigation expenses as well as other expenses incidental to the issuance of new policies as well as with the reserves required to be established for each policy. However, the Company has been profitable in 2019, 2020, 2021, 2023, and 2024.
DIVIDENDS - We have not paid a cash dividend on USAC Common Stock and do not anticipate paying a cash dividend in the foreseeable future. We intend to retain available funds to be used to expand operations. The success of any investment in USAC Common Stock will depend upon any future appreciation of its value, which will depend on the success of our life insurance subsidiaries. We cannot guarantee that our common stock will appreciate in value or achieve or maintain a value equal to the price at which shares were purchased. Further, a market may never develop to sell shares of USAC Common Stock.
CAPITAL RISK - The law requires adequate capital and surplus calculated following statutory accounting principles prescribed by state insurance regulatory authorities to meet regulatory requirements. The amount of capital and surplus required is based on certain “risk-based capital” standards established by statute and regulation and administered by regulators. The “risk-based capital” system establishes a framework for evaluating the adequacy of the minimum amount of capital and surplus, calculated following statutory accounting principles, necessary for an insurance company to support its overall business operations. If we fail to maintain the required capital levels, our ability to conduct business would be compromised. Recent regulatory changes to bond classifications and other rules increase volatility and cause immediate changes to our required capital.
DILUTION RISK - In February 2010, we filed a prospectus with the Kansas Securities Commission to register shares of USAC Common Stock and warrants to purchase USAC Common Stock. In February 2015, we filed a Prospectus with the Kansas Securities Commission to register the common stock to be issued upon the exercise of the warrants, and in January 2016, filed a Supplement to the Prospectus to register an additional 1,500,000 shares of USAC Common Stock. This offering has been renewed annually by post-effective amendments to the original 2015 offering. We also commenced a private placement of USAC Common Stock in North Dakota in 2017. Both offerings were terminated in the second quarter of 2024. Any additional offerings of USAC securities that we may conduct in the future will reduce the ownership percentage of existing shareholders and be accretive to existing stockholder book value.
KEY EXECUTIVE RISK - The loss of services from a key executive could adversely affect our ability to execute our business plan. This could hamper profitability, response time, productivity, image, reputation, and confidence. USAC has entered into employment agreements with its principal executive officer and principal financial officer. Still, such agreements cannot guarantee that such officers may not separate from the Company during the terms of their respective employment agreements or thereafter. The death or disability of either of our executive officers would also harm the Company.
SEC REGISTRATION - USAC is a “public company” as defined by the Securities and Exchange Commission. As such, we incur significant legal, accounting, and other expenses under the Exchange Act and the Sarbanes-Oxley Act of 2002 and rules subsequently implemented by the SEC. These rules impose various requirements on public companies, including establishing and maintaining effective disclosure and financial controls and appropriate corporate governance practices. Our board, management, and other personnel must devote a substantial amount of time to these compliance requirements. Moreover, these rules and regulations increase our legal and financial compliance costs and are time-consuming and costly.
LOSS OF EMERGING GROWTH COMPANY STATUS - The Company ceased to be deemed an “emerging growth company” as of December 31, 2022. As a result, the costs and demands placed upon management may increase, as beginning with the fiscal year ended December 31, 2023, the Company is now required to comply with additional disclosure and accounting requirements. However, as long as the aggregate value of the Company’s common stock held by non-affiliates remains less than $250 million, the Company will qualify as a “smaller reporting company” as well as a “non-accelerated filer” eligible for relief from certain disclosure and reporting requirements. This will reduce some of the additional expense and management attention necessary for compliance.
Smaller reporting companies can provide simplified executive compensation disclosure, are exempt from the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, and have certain other reduced disclosure obligations.
POTENTIAL ACQUISITION RISK - In addition to our organic growth, we pursue strategic acquisitions of insurance-related companies that meet our acquisition criteria. However, suitable acquisition candidates may not be available on terms and conditions that are economically beneficial to us. In pursuing acquisitions, we compete with other companies, who may have greater financial and other resources than us. Further, if we succeed in consummating acquisitions, our business, financial condition, and results of operations may be negatively affected.
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An acquired business may not achieve anticipated revenues, earnings, or cash flows;
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We may assume liabilities that were not disclosed or exceed estimates;
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We may be unable to integrate acquired businesses successfully and realize anticipated economic, operational, and other benefits in a timely manner;
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Acquisitions could disrupt our ongoing business, distract our management, and divert our financial and human resources;
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We may experience difficulties operating in markets in which we have no or only limited direct experience, and
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There is the potential for loss of customers and key employees of any acquired company.
MARKETING STRATEGY RISK - Premium written depends primarily on our products, product pricing and ability to choose and timely and adequately train and motivate agents, producers, and brokers to sell our products.
Large life companies with greater financial resources, longer business histories, and possibly more products present significant competition to smaller insurance companies. These larger companies also generally have large distribution capabilities, which makes it difficult to build our company.
Independent agents are not required to sell the Company’s products and are free to sell products from other licensed companies. We are committed to working to educate and incentivize independent agents to sell our products.
THE COMPANY’S INVESTMENTS ARE SUBJECT TO MARKET AND CREDIT RISKS - Our invested assets are subject to customary risks of credit defaults and changes in fair value and/or market value. Factors that may affect the overall default rate on and fair value of the Company’s invested assets include interest rate levels and changes, availability, and cost of liquidity, financial market performance, regulatory pronouncements, and general economic conditions.
NO INSURANCE RATING RISK - USACSC and USALSC-Montana have not been rated by a rating agency. The lack of a rating could result in loss of faith from producers, E&O carriers and consumers seeking products from a rated company, as well as a negative impact on ability to compete with rated companies.
Insurance ratings reflect the rating agencies’ opinion of an insurance company’s history, financial strength, operating performance, and ability to meet its obligations to policyholders. There can be no assurance that a rating agency will rate USALSC or USALSC-Montana or that any rating, if and when received, will be favorable.
Risks Associated with Companies in the Life Insurance Industry, including USAC and its subsidiaries
GENERAL REGULATORY RISK -All insurance operations are subject to government regulation in each state where they conduct business. Such regulatory authority is vested in state agencies having broad administrative power dealing with all aspects of the insurance business, including premium rates, policy forms, and capital adequacy, and is concerned with the protection of policyholders rather than stockholders. Among other matters, the regulations require prior approval of acquisitions of insurance companies, solvency standards, licensing of insurers and their agents, investment restrictions, deposits of securities for the benefit of policyholders, approval of policy forms and premium rates, periodic examinations, and reserves for unearned premiums, losses, and other matters.
Compliance with insurance regulation is costly and time-consuming, requiring the filing of detailed annual reports, and the business and accounts are subject to examination by the applicable state insurance regulator.
Increased scrutiny has been placed upon the insurance regulatory framework during the past several years, and certain state legislatures have considered or enacted laws that alter, and in many cases increase, state authority to regulate insurance companies and insurance holding company systems. The National Association of Insurance Commissioners (“NAIC”) and state insurance regulators reexamine existing laws and regulations on an ongoing basis and focus on insurance company investments and solvency issues, risk-based capital guidelines, interpretations of existing laws, the development of new laws, the implementation of non-statutory guidelines and the circumstances under which dividends may be paid. Future NAIC initiatives and other regulatory changes may have a material adverse impact on the insurance industry. There is no assurance that the regulatory requirements of the insurance departments of their respective state of domicile or a similar department in any other state in which they may wish to transact business can be satisfied.
Individual state guaranty associations assess insurance companies to pay benefits to policyholders of insolvent or failed insurance companies. The amount of any future assessments to be made from known insolvencies cannot be predicted.
REGULATORY FACTORS RISK - Broad insurance laws in the states where we do business give insurance regulators broad regulatory authority. Combined with the Dodd-Frank Wall Street Reform and Consumer Protection Act, this authority can allow regulators to interpret and implement additional rules that may take several years to complete. The ultimate outcome of regulatory rulemaking proceedings cannot be predicted with certainty, and the regulations promulgated could have a material impact on consolidated financial results or financial conditions.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Reform Act”) reshaped financial regulations in the United States by creating new regulators, regulating new markets and firms, and providing additional enforcement powers to regulators. Virtually all major areas of the Reform Act remain subject to regulatory interpretation and implementation rules requiring rulemaking. The ultimate outcome of the regulatory rulemaking proceedings cannot be predicted. The regulations promulgated could have a material impact on consolidated financial results or financial condition.
COMPETITION RISK - Large life insurance companies that have greater financial resources, longer business histories, and may have more products present significant competition to smaller insurance companies. These larger companies also generally have large distribution opportunities, making product distribution difficult in building a small company.
ASSUMPTION RISK - In the life insurance business, assumptions about expected mortality, lapse rates, and other factors are made when developing the pricing and other terms of life insurance products. These assumptions are based on industry experience and are reviewed and revised regularly by an outside actuary to reflect actual experience on a current basis. Variation of actual experience from that assumed in developing such terms may affect a product’s profitability or sales volume and adversely impact revenues.
LIABILITY RISK-Underestimating future policy benefits results in incurring additional expenses when a company becomes aware of the inadequacy. As a result, the ability to achieve profits would suffer.
INTEREST RATE RISK-Spread is the difference between the amounts that the insurance company is required to pay under the contracts and the amounts it can earn on its investments intended to support its obligations under the contracts. Interest rate fluctuations affect an insurance company’s ability to pay policyholder benefits with operating and investment cash flows, cash on hand, and other cash sources. Annuity products expose the risk that interest rate changes will reduce spread. Spread is a key component of net income.
To the extent that interest rates credited are less than those generally available in the marketplace, policyholder lapses, policy loans and surrenders, and withdrawals of life insurance policies and annuity contracts may increase as contract holders seek to purchase products with higher returns. This process may result in cash outflows requiring that an insurance subsidiary sell investments at a time when the prices of those investments are adversely affected by the increase in market interest rates, which may result in realized investment losses.
Increases in market interest rates may negatively affect profitability in periods of increasing interest rates. The ability to replace invested assets with higher-yielding assets is needed to fund higher crediting rates, which may be necessary to keep interest-sensitive products competitive.
LAPSE AND WITHDRAWAL RISK - Policy lapses above those actuarially anticipated would have a negative impact on financial performance. Profitability would be reduced if lapse and surrender rates exceed the assumptions upon which the insurance policies were priced. Policy sales costs are deferred and recognized over the life of a policy. Excess policy lapses cause the immediate expensing or amortizing of deferred policy sales costs. In addition, some of our policies allow holders to withdraw all or some of the policy’s value, and withdrawals beyond those anticipated could impact our business.
OPERATIONAL RISK - In the insurance industry, successful incorporation and functionality of the internal audit function, the evolution of financial and administrative internal controls to safeguard human, facility, and financial assets electronically, including anti-fraud initiatives and compliance with anti-money laundering requirements as well as an effective disaster recovery program and effective business continuity programs, are necessary.
TAX LAW RISK - Congress considers legislation that could adversely affect the sale of life insurance products compared with other financial products. There can be no assurance as to whether such adverse legislation will be enacted or, if passed, whether such legislation would contain provisions with possible adverse effects on any annuity and life insurance products we and our operating subsidiaries develop.
Under the Internal Revenue Code, income taxes payable by policyholders on investment earnings is deferred during the accumulation period of certain life insurance and annuity products. This favorable tax treatment may give certain insurance products a competitive advantage over other non-insurance products. To the extent that the Internal Revenue Code may be revised to reduce the tax-deferred status of life insurance and annuity products or to increase the tax-deferred status of competing products, insurance companies would be adversely affected with respect to their ability to sell products. Also, depending on grandfathering provisions, the surrenders of existing annuity contracts and life insurance policies might increase. In addition, life insurance products are often used to fund estate tax obligations. We cannot predict what future tax initiatives may be proposed with respect to the estate tax or other taxes that may adversely affect us.
REINSURANCE RISK -In order to manage the risk of financial exposure to adverse underwriting results, reinsurers accept a portion of the risk of other insurance companies. However, the direct insurer remains liable with respect to ceded insurance should any reinsurer fail to meet the obligations assumed by the reinsurer.
COVID-19 RISK - The outbreak and world-wide spread of the COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, and created significant volatility and disruption in financial market, and the prolonged impact of COVID-19 could affect various aspects of our business. Following the initial outbreak of the virus, virtually all of USAC's operations were performed by employees working remotely. We have returned to in-office work, other than occasional temporary office closures due to exposures, and four employees who work remotely due to their geographic locations. While we have not experienced significant disruptions to our business, we have experienced higher claims on our insurance products which may be due in part to the COVID-19 pandemic. In addition, our investment portfolio may be adversely affected as a result of uncertainty surrounding the pandemic and its outcome.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B.
UNRESOLVED STAFF COMMENTS.
Not applicable.

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ITEM 2. PROPERTIES
ITEM 2.
PROPERTIES.
USAC and its subsidiaries share offices located at 1303 SW First American Place, Suite 200, Topeka, Kansas 66604 in a building purchased by DCLIC on November 15, 2020.

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3.
LEGAL PROCEEDINGS
Neither the Company nor any of its principals is presently engaged in any material pending litigation that might adversely impact its net assets.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4.
MINE SAFETY DISCLOSURES
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
(a)
Market Information
There is no established trading market for our voting common stock. Our securities are not listed for trading or quoted on any national securities exchange nor are bid or asked quotations reported in any over-the-counter quotation system.
As of December 31, 2024, we had issued and outstanding 7,748,922 shares of our voting common stock. No other equity securities of the Company have been issued.
(b)
Holders of Record
As of March 1, 2025, there are approximately 3,00 holders of record of our voting common stock.
(c)
Dividends
We have not paid dividends on USAC Common Stock and do not anticipate paying dividends in the foreseeable future. We intend to retain any future earnings for reinvestment into our business.
(d)
Securities Authorized for Issuance Under Equity Compensation Plans
During the year ended December 31, 2024, the Company issued 250,000 shares of restricted stock to members of its Board of Directors under individual Restricted Stock Agreements ("RSAs") as part of the Company's compensation program. Thes awards are intended to align the interests of the Board with those of the Company’s shareholders and to retain experienced leadership. A summary of the Company’s non-vested restricted stock awards as of December 31, 2024 and changes for the year then ended is presented below:
Plan category (1)
Number of securities to be issued upon vesting (lapse of restrictions)
Weighted-average grant date fair value
Number of securities available for future issuance under equity compensation plans (2)
N/A
Individual compensation arrangement (restricted stock award)
250,000 (2)
$ 1.00
(1) Individual restricted stock awards were authorized by the Board and not submitted for approval by the Company's shareholders.
(2) 50,000 shares of restricted stock issued to Jennifer Schmidt were forfeited upon her resignation for the Company's Board of Directors in accordance with the terms of her RSA.
(3) The Company has issued restricted stock to its Directors under individual Restricted Stock Agreements and has not adopted any equity compensation plans.
The terms of the RSAs provide that the restricted shares awarded to the Company's Directors vest equally in 20% increments over each of the following five fiscal years, beginning with the year ended December 31, 2024 and continuing through December 31, 2029. Any unvested shares of restricted stock are subject to forfeiture in the event of termination of service before the shares have vested, except in cases of death, disability, or a change in control of the Company.
(e)
Recent Sales of Unregistered Securities
During the year ended December 31, 2024, the Company did not issue any shares pursuant to an offering to residents of the state of Kansas that was registered with the Kansas Securities Commissioner (the “Kansas Offering”). This offering was terminated in the second quarter of 2024.
During the year ended December 31, 2024, the Company did not issue any shares pursuant to a private placement offering to accredited investor residents of the state of North Dakota (the “North Dakota Offering”). This offering was terminated in the second quarter of 2024.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6.
[Reserved.]

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following discussion should be read in conjunction with our consolidated financial statements and notes thereto included in this Form 10-K. In connection with, and because we desire to take advantage of, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we caution readers regarding certain forward looking statements in the following discussion and elsewhere in this report and in any other statement made by, or on our behalf, whether or not in future filings with the Securities and Exchange Commission. Forward looking statements are statements not based on historical information and which relate to future operations, strategies, financial results or other developments. Forward looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, including those relating to the Covid-19 pandemic, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward looking statements made by, or on our behalf. We disclaim any obligation to update forward looking statements.
Overview
USAC was formed as a Kansas corporation on April 24, 2009 to raise capital to form a new Kansas-based life insurance company. We presently conduct our business through our four wholly-owned subsidiaries: USALSC, a life insurance corporation; USALSC-Montana, a life insurance corporation; USAMC, an insurance marketing corporation; and USAIC, an investment management corporation
On January 2, 2012, USALSC was issued a Certificate of Authority to conduct life insurance business in the State of Kansas. We began third-party administrative services in 2015. USALSC re-domesticated to North Dakota in 2023. USALSC is currently authorized to conduct business in 18 states.
On August 1, 2017, the Company merged with Northern Plains Capital Corporation with the Company being the ultimate surviving entity. As a result of this merger, the Company acquired Dakota Capital Life Insurance Company which became a wholly owned subsidiary of USALSC. In 2023, Dakota Capital Life Insurance Company was merged into USALSC.
On December 14, 2018, the Company acquired Great Western Life Insurance Company. Great Western Life Insurance Company was renamed US Alliance Life and Security Company - Montana and is a subsidiary of USALSC.
The Company assumes business under reinsurance treaties. On January 1, 2013, the Company entered into an agreement to assume 20% of a certain block of health insurance policies from Unified Life Insurance Company. On September 30, 2017, the Company entered into an agreement (the “2017 ALSC Agreement”) t to assume 100% of a certain block of life insurance policies from American Life & Security Company (“ALSC”). On April 15, 2020, with an effective date of January 1, 2020, the Company entered into an agreement with ALSC (the “2020 ALSC Agreement “) to assume a quota share percentage of a block of annuity policies. Effective December 31, 2020 USALSC entered into an agreement with ALSC, which provided for ALSC to recapture all reserves previously ceded to USALSC with respect to a portion of the 2017 ALSC Agreement.
On December 31, 2023 USALSC entered into an agreement with Lewer Life Insurance LLIC to assume a block of life and annuity policies.
Mergers and Acquisitions
On May 23, 2017 the Company entered into a definitive merger agreement with Northern Plains Capital Corporation. The merger transaction closed on August 1, 2017. NPCC shareholders received .5841 shares of US Alliance Corporation stock for each share of NPCC stock owned. USAC issued 1,644,458 shares of common stock to holders of NPCC shares.
On October 11, 2018 the Company entered into a stock purchase agreement with Great Western Insurance Company to acquire Great Western Life Insurance Company. The transaction closed on December 14, 2018. USALSC paid $500,000 to acquire all of the outstanding shares of GWLIC.
Effective December 31, 2020, DCLIC acquired a block of life insurance policies according to the terms of an assumption agreement with ALSC. The Company acquired fixed maturity securities and cash of $9,181,100, assumed liabilities of $10,972,785 and recorded VOBA of $2,163,541.
On December 31, 2023, DCLIC was merged into its parent company, USALSC.
Critical Accounting Policies and Estimates
Our accounting and reporting policies are in accordance with GAAP. Preparation of the consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The following is an explanation of our accounting policies and the estimates considered most significant by management. These accounting policies inherently require significant judgment and assumptions and actual operating results could differ significantly from management’s estimates determined using these policies. We believe the following accounting policies, judgments and estimates are the most critical to the understanding of our results of operations and financial position. A detailed discussion of significant accounting policies is provided in this report in the Notes to Consolidated Financial Statements included with this quarterly report.
Valuation of Investments
The Company's principal investments are in fixed maturity, mortgages, and equity securities. Fixed maturity, classified as available for sale, are carried at their fair value in the consolidated balance sheets, with unrealized gains or losses recorded in comprehensive income (loss). Our fixed income investment manager utilizes external independent third-party pricing services to determine the fair values of investment securities available for sale. Equity securities are carried at their fair value in the consolidated balance sheets, with unrealized gains or losses recorded in net income. Mortgages, including mortgage loan participations, are carried at unpaid principal balances, net of any unamortized premium or discount and valuation allowances.
The recognition of credit losses on debt securities is dependent on the facts and circumstances related to the specific security. If we determine a credit loss exists, the difference between amortized cost and fair value is recognized in the consolidated statements of comprehensive income. Our membership in the Federal Home Loan Bank (“FHLB”) provides additional liquidity which further reduces the likelihood that we would be required to sell a security prior to recovery for liquidity purposes.
Mortgage loans on real estate, including mortgage loan participations, are carried at unpaid principal balances, net of any unamortized premium or discount and valuation allowances. Interest income is accrued on the principal amount of the mortgage loans based on its contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. The Company accrues interest on loans until probable the Company will not receive interest or the loan is 90 days past due. Interest income, amortization of premiums, accretion of discounts and prepayment fees are reported in investment income, net of related expenses in the consolidated statements of comprehensive income.
A mortgage loan is considered to be impaired when, based on the current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the mortgage agreement.
Valuation allowances on mortgage loans are established based upon inherent losses expected by management to be realized in connection with future dispositions or settlement of mortgage loans, including foreclosures. The Company establishes valuation allowances for estimated impairments on an individual loan basis as of the balance sheet date. Such valuation allowances are based on the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan’s original effective interest rate, the value of the loan’s collateral if the loan is in the process of foreclosure or is otherwise collateral-dependent, or the loan’s market value if the loan is being sold. These evaluations are revised as conditions change and new information becomes available. In addition to historical experience, management considers qualitative factors that include the impact of changing macro-economic conditions, which may not be currently reflected in the loan portfolio performance, and the quality of the loan portfolio.
Any interest accrued or received on the net carrying amount of the impaired loan will be included in investment income or applied to the principal of the loan, depending on the assessment of the collectability of the loan. Mortgage loans deemed to be uncollectible or that have been foreclosed would be charged off against the valuation allowances and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in net investment gains (losses) on the consolidated statements of comprehensive income.
Other invested assets include collateral loans and private credit investments. The collateral loans and private credit investments are carried at fair value. The inputs used to measure these assets are classified as Level 3 within the fair value hierarchy.
Limited partnership interests consist of an investment in Mutual Capital Investment Fund. Limited partnerships interests are carried at net asset value as determined by a third-party valuation.
Deferred Acquisition Costs
Incremental direct costs, net of amounts ceded to reinsurers, that result directly from and are essential to a product sale and would not have been incurred by us had the sale not occurred, are capitalized, to the extent recoverable, and amortized over the life of the premiums produced. Recoverability of deferred acquisition costs is evaluated periodically by comparing the current estimate of the present value of expected pretax future profits to the unamortized asset balance. If this current estimate is less than the existing balance, the difference is charged to expense.
Future Policy Benefits
We establish liabilities for amounts payable under insurance policies, including traditional life insurance and annuities. Generally, amounts are payable over an extended period of time. Liabilities for future policy benefits of traditional life insurance have been computed by using a net level premium method based upon estimates at the time of issue for investment yields, mortality and withdrawals. These estimates include provisions for experience less favorable than initially expected. Mortality assumptions are based on industry experience expressed as a percentage of standard mortality tables. Such liabilities are reviewed quarterly by an independent consulting actuary.
New Accounting Standards
A detailed discussion of new accounting standards is provided in the Notes to Consolidated Financial Statements beginning on p. of this annual report.
Discussion of Consolidated Results of Operations
Total Income. Insurance revenues are primarily generated from premium revenues and investment income. Total income for the years ended December 31, 2024 and 2023 are summarized in the table below.
Twelve Months Ended December 31,
Income:
Premium income
$ 15,338,053
$ 13,131,574
Net investment income
7,597,762
6,412,669
Net investment gains (losses)
283,423
1,016,561
Other income
553,035
353,254
Total income
23,772,273
20,914,058
Our 2024 total income increased to $23,772,273, an increase of $2,858,215 or 14% from the 2023 total income of $20,914,058. The increase is driven by increases in premium income and net investment income. The Company records unrealized gains and losses on equity securities in total income in accordance with accounting standards. This standard continues to result in increased volatility in total income.
The following graph summarizes our five-year trend of total income:
Premium income: Premium income for 2024 was $15,338,053 compared to $13,131,574 in 2023, an increase of $2,260,479 or 17%. The increase was driven by an increase in direct single and recurring premiums. Even though it is a reduction in revenue, ceded premium increases reflect the growth of our group policy premiums as we focused on small companies to assist them with their employee benefits.
Direct, assumed and ceded premiums for the years ended December 31, 2024 and 2023 are summarized in the following table:
Years Ended December 31,
Direct
$ 11,928,460
$ 9,988,176
Assumed
4,956,205
4,543,477
Ceded
(1,546,612 )
(1,400,079 )
Total
$ 15,338,053
$ 13,131,574
The Company continuously searches for new product and distribution opportunities to continue to increase premium production on a direct and assumed basis.
Investment income, net of expenses: The components of net investment income for the years ended December 31, 2024 and 2023 are as follows:
Years Ended December 31,
Fixed maturities
$ 5,985,869
$ 4,712,515
Mortgages
1,680,515
1,678,623
Equity securities
313,416
686,999
Other invested assets
197,760
218,784
Cash and cash equivalents
322,841
129,188
8,500,401
7,426,109
Less investment expenses
(902,639 )
(1,013,440 )
$ 7,597,762
$ 6,412,669
Net investment income for 2024 was $7,597,762, compared to $6,412,669 in 2023, an increase of $1,185,093, or 18%. This increase is due to improved yields.
Net investment gains (losses): Accounting standards require that the unrealized gains and losses on equity securities be reported as income on the consolidated statements of comprehensive income. For the years ended December 31, 2024 and 2023, net investment gains are summarized in the following table.
Years Ended December 31,
Recognized gains (losses) on sale of investments
$ 13,031
$ (757,601 )
Change in allowance for credit loss recognized in earnings
(34,041 )
128,729
Unrealized net gains (losses) recognized in earnings
8,414
1,711,411
Embedded Derivative
296,019
(65,978 )
Net investment gains (losses)
$ 283,423
$ 1,016,561
Net investment gains for 2024 were $283,423 compared to $1,016,561 in 2023, a decrease of $733,138 or 72%. The decrease was driven by a reduction in unrealized gains recognized in income.
Realized gains (losses): Realized gains and losses related to the sale of securities for the years ended December 31, 2024 and 2023 are summarized as follows:
Years Ended December 31,
Gross gains
$ 201,481
$ 14,399
Gross losses
(188,450 )
(772,000 )
Realized gains (losses)
$ 13,031
$ (757,601 )
Fixed maturity securities
-
-
Mortgage loans on real estate
(34,041 )
128,729
(Increase) Decrease in allowance for credit losses
$ (34,041 )
$ 128,729
Other income: Other income for the year ended December 31, 2024 was $553,035 compared to $353,254 in 2023, an increase of $199,781 or 57%. The increase was the result of implementation fees for a third-party administration agreement.
Expenses. Expenses for the year ended December 31, 2024 and 2023 are summarized in the table below.
Twelve Months Ended December 31,
Expenses:
Death claims
$ 3,983,405
$ 3,432,119
Policyholder benefits
6,883,283
6,342,303
Increase in policyholder reserves
5,566,210
4,589,538
Commissions, net of deferrals
947,548
837,560
Amortization of deferred acquisition costs
1,440,520
1,407,503
Amortization of value of business acquired
92,420
92,420
Salaries & benefits
1,701,745
1,627,644
Other operating expenses
2,624,371
1,959,242
Total expense
$ 23,239,502
$ 20,288,329
The following chart and graph summarizes our five-year expense trend:
Increase in
Other
% of Operating
Policyholder
Policy-related
Operating
Total
Expense to
Year
Reserves
Expenses
Expenses
Expenses
Total Expense
3,359,609
8,964,121
3,649,000
15,972,730
%
4,063,488
10,627,532
3,244,412
17,935,432
%
4,207,703
11,623,423
3,480,212
19,311,338
%
4,589,538
12,111,905
3,586,886
20,288,329
%
5,566,210
13,347,176
4,326,116
23,239,502
%
Increases in policyholder reserves represents funds that we maintain and invest for the future benefit of our policyholders. Other policy-related expenses represent the other expenses associated with fulfilling our obligations to our policyholders and producers. Operating expenses represent the costs to operate the company and consists of salaries and benefits and other operating expenses.
Death claims: Death benefits were $3,983,405 in the year ended December 31, 2024 compared to $3,432,119 for 2023, an increase of $551,286 or 16%. This increase is attributable to our growing block of in-force pre-need life insurance policies. We expect these claims to grow as we continue to increase the size of our in-force business.
Policyholder benefits: Policyholder benefits were $6,883,283 in the year ended December 31, 2024 compared to $6,342,303 in 2023, an increase of $540,980 or 9%. The primary driver of this increase is growing interest credited on our annuity contracts.
Increase in policyholder reserves: Policyholder reserves increased $5,566,210 in the year ended December 31, 2024, compared to $4,589,538 in 2023, an increase of $976,672 or 21%. The growth in reserves is the result of increased pre-need in-force policies.
Commissions, net of deferrals: The Company pays commissions to the ceding company on a block of assumed policies as well as commissions to agents on directly written business. Commissions, net of deferrals, were $947,548 in the year ended December 31, 2024, compared to $837,560 in 2023, an increase of $109,988 or 13%. This increase is due to an increase in and changing mix of premiums.
Amortization of deferred acquisition costs: The amortization of deferred acquisition costs ("DAC") was $1,440,520 in the year ended December 31, 2024, compared to $1,407,503 in 2023, an increase of $33,017 or 2%. The increase is driven by normal adjustments to DAC amortization, which occur over the life of a policy.
Amortization of value of business acquired: The amortization of value of business acquired (“VOBA”) was $92,420 in the years ended December 31, 2024 and 2023, respectively. VOBA is being amortized straight-line over 30 years.
Salaries and benefits: Salaries and benefits were $1,701,745 for the year ended December 31, 2024, compared to $1,627,644 in 2023, an increase of $74,101 or 5%. The increase was driven by increased employee compensation costs and additional team members.
Other expenses: Other operating expenses were $2,624,371 in the year ended December 31, 2024, compared to $1,959,242 in 2023, an increase of $665,129 or 34%. The increase is driven by increased audit and actuarial expenses which are responsible for over 70% of the other expense increase.
Federal income tax(expense) benefit: In the year ended December 31, 2024, the Company recognized federal income tax expense $61,793. In the year ended December 31, 2023, the Company recognized a deferred income tax benefit of $852,347. These are the result of changes in the deferred tax asset and deferred tax asset valuation allowance and due to current income tax expense.
Net Income: Our net income was $470,978 in the year ended December 31, 2024 compared to net income of $1,478,076 in 2023, a decrease of $1,007,098. Our net income per share was $0.06 compared to net income per share of $0.19 in 2023, basic and diluted.
The following graph illustrates our five-year trend of net income (loss) per share:
Discussion of Consolidated Balance Sheet
Assets. Assets have increased to $131,293,982 as of December 31, 2024, an increase of $5,209,346 or 5% from December 31, 2023 assets of $126,084,636. This is primarily the result of an increase in fixed maturity securities and mortgage loans.
Available for sale fixed maturity securities: As of December 31, 2024, we had available for sale fixed maturity assets of $79,578,179, an increase of $5,068,659 or 7% from the December 31, 2023 balance of $74,509,520. The increase is driven by new purchases.
Equity securities, at fair value: As of December 31, 2024, we had equity assets of $3,876,085, an increase of $290,200 or 8% from the December 31, 2023 balance of $3,585,885. This increase is driven by purchases of equity securities and improved market values.
Limited partnership interests: As of December 31, 2024, we had limited partnership interests of $428,170, an increase of 38,343 or 10% from the December 31, 2023 balance of $389,827. This is related to our investment in the Mutual Capital Investment Fund.
Mortgage loans on real estate: As of December 31, 2024, we had mortgage loans on real estate of $25,192,749, an increase of $5,575,496 or 28% from the December 31, 2023 balance of $19,617,253. The increase results from acquiring new mortgage loan participations.
Other invested assets: As of December 31, 2024, we had other invested assets of $1,109,606, a decrease of $1,130,077 or 51% from the December 31, 2023 balance of $2,239,683. The decrease was driven by maturities.
Policy loans: As of December 31, 2024, our policy loans were $31,745, an increase of $5,613 or 22% from the December 31, 2023 balance of $26,132. The increase is a result of new policy loan activity.
Real estate, net of depreciation: As of December 31, 2024, we had real estate assets of $1,652,553 related to our home office building, a decrease of $34,115 or 2% from the December 31, 2023 balance of $1,686,668. The decrease is the result of building depreciation.
Cash and cash equivalents: As of December 31, 2024, we had cash and cash equivalent assets of $6,903,783, a decrease of $2,078,355 or 23% from the December 31, 2023 balance of $8,982,138. This decrease was the result of cash being redeployed into invested assets.
Investment income due and accrued: As of December 31, 2024, our investment income due and accrued was $954,324 compared to $1,878,620 as of December 31, 2023, a decrease of $924,296 or 49%. This decrease is attributable to a reduction in accrued income due to interest payments.
Reinsurance related assets: As of December 31, 2024, our reinsurance related assets were $522,142 compared to $1,039,274 as of December 31, 2023, a decrease of $517,132 or 50%. This decrease is the result of changes in the net settlement due to/from ALSC under our 2020 ALSC Agreement.
Deferred acquisition costs, net: As of December 31, 2024, our deferred acquisition costs were $3,908,636 compared to $4,751,497 as of December 31, 2023, a decrease of $842,861 or 18%. The decrease is the result of the amortization of DAC related to our 2020 ALSC Agreement.
Value of business acquired, net: As of December 31, 2024 our value of business acquired asset was $2,333,553 compared to $2,425,973 as of December 31, 2023, a decrease of $92,420 or 4%. The decrease is the result of amortization of VOBA.
Property, equipment and software, net: As of December 31, 2024 our property, equipment and software assets were $136,353, a decrease of $1,903 or 1% from the December 31, 2023 balance of $138,256. This decrease is the result of depreciation partially offset by the purchase of computers in 2024.
Goodwill: As of December 31, 2024 and December 31, 2023, our goodwill was $277,542. Goodwill was established as a result of our merger with NPCC. We have determined that there has been no impairment to our goodwill balance.
Deferred tax asset, net of valuation allowance: The Company had a net deferred tax asset of $3,747,111 as of December 31, 2024, a decrease of $141,796 or 4% from the December 31, 2023 balance of $3,888,907. The decrease is the result of deferred federal income tax expense.
Other assets: As of December 31, 2024, our other assets were $459,102, a decrease of $41,528 or 8% from the December 31, 2023 balance of $500,630. This decrease is the result of normal business activity.
Liabilities. Our total liabilities were $120,663,564 as of December 31, 2024, an increase of $4,910,005 or 4% from our December 31, 2023 liabilities of $115,753,559. This increase is driven by an increase in our policy liabilities.
Policy liabilities: Our total policy liabilities as of December 31, 2024 were $118,188,150 compared to $112,563,626 as of December 31, 2023, an increase of $5,624,524 or 5%. This increase is the result of the growth of our in-force business.
Accounts payable and accrued expenses: As of December 31, 2024, our accounts payable and accrued expenses were $1,133,521 compared to $2,053,363 as of December 31, 2023, a decrease of $919,842 or 45%. The decrease is driven by reduced investment fees payable.
Federal Home Loan Bank advance: As of December 31, 2024 the Company’s outstanding advances were $1,250,000 compared to $1,000,000 as of December 31, 2023, an increase of $250,000 or 25%.
Other liabilities: As of December 31, 2024, we had other liabilities of $91,893 compared to $136,570 as of December 31, 2023, a decrease of $44,677 or 33%. The decrease is the result of normal business activity.
Shareholders’ Equity. Our shareholders’ equity was $10,630,418 as of December 31, 2024, an increase of $299,341 or 3% from our December 31, 2023 shareholders’ equity of $10,331,077. The increase in shareholders’ equity was driven by our net income.
Investments
Our investment philosophy is reflected by the allocation of our investments. We emphasize investment grade debt securities with smaller holdings in equity securities, mortgages and other investments. The following table shows the carrying value of our investments by investment category and cash and cash equivalents, and the percentage of each to total invested assets as of December 31, 2024 and December 31, 2023.
December 31, 2024
December 31, 2023
Carrying
Percent
Carrying
Percent
Value
of Total
Value
of Total
Fixed maturities:
US Treasury securities
$ 711,377
0.6 %
$ 724,668
0.7 %
Corporate bonds
21,491,820
18.1 %
17,813,362
16.0 %
Municipal bonds
4,741,149
4.0 %
5,636,093
5.1 %
Redeemable preferred stocks
2,411,234
2.0 %
3,305,569
3.0 %
Term Loans
12,788,304
10.8 %
17,052,420
15.4 %
Mortgage backed and asset backed securities
37,434,295
31.4 %
29,977,408
27.0 %
Total fixed maturities
79,578,179
66.9 %
74,509,520
67.1 %
Mortgage loans
25,192,749
21.2 %
19,617,253
17.7 %
Other invested assets
1,109,606
0.9 %
2,239,683
2.0 %
Limited partnership interests
428,170
0.4 %
389,827
0.4 %
Equities:
Common stock
2,395,195
2.0 %
2,116,356
1.9 %
Preferred stock
1,480,890
1.2 %
1,469,529
1.3 %
Total equities
3,876,085
3.3 %
3,585,885
3.2 %
Real estate, net of depreciation
1,652,553
1.4 %
1,686,668
1.5 %
Cash and cash equivalents
6,903,783
5.8 %
8,982,138
8.1 %
Total
$ 118,741,125
100.0 %
$ 111,010,974
100.0 %
The total value of our investments and cash and cash equivalents increased to $118,741,125 as of December 31, 2024 from $111,010,974 at December 31, 2023, an increase of $7,730,151 or 7%. Increases in investments are primarily attributable to premium income and improved market values.
The following table shows the distribution of the credit ratings of our portfolio of fixed maturity securities by carrying value as of December 31, 2024 and December 31, 2023.
December 31, 2024
December 31, 2023
Fair
Percent
Fair
Percent
Value
of Total
Value
of Total
AAA and U.S. Government
$ 5,470,235
6.9 %
$ 4,259,281
5.7 %
AA
10,469,465
13.1 %
11,274,407
15.1 %
A
15,174,048
19.1 %
18,479,331
24.8 %
BBB
35,807,023
45.0 %
33,714,311
45.3 %
BB
4,378,680
5.5 %
3,033,357
4.1 %
B
90,675
0.1 %
-
0.0 %
Not Rated - Private Placement
8,188,053
10.3 %
3,748,833
5.0 %
Total
$ 79,578,179
100.0 %
$ 74,509,520
100.0 %
The amortized cost and fair value of debt securities as of December 31, 2024 and 2023, by contractual maturity, are shown below. Equity securities do not have stated maturity dates and therefore are not included in the following maturity summary. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
As of December 31, 2024
As of December 31, 2023
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Amounts maturing in:
One year or less
$ 2,329,228
$ 2,329,228
$ 152,840
$ 147,835
After one year through five years
18,590,098
18,290,098
16,397,124
16,461,777
After five years through ten years
2,032,061
1,967,540
6,371,607
6,112,389
More than 10 years
20,606,740
17,025,901
21,488,624
18,504,542
Redeemable preferred stocks
2,562,893
2,411,234
3,622,572
3,305,569
Mortgage backed and asset backed securities
37,664,287
37,434,295
30,621,025
29,977,408
Total amortized cost and fair value
$ 83,785,307
$ 79,578,179
$ 78,653,792
$ 74,509,520
Market Risk of Financial Instruments
We hold a diversified portfolio of investments that primarily includes cash, bonds, equity securities, mortgage loans, and other invested assets. Each of these investments is subject to market risks that can affect their return and their fair value. The primary market risks affecting the investment portfolio are interest rate risk, credit risk, and equity risk.
Interest Rate Risk
Interest rate risk arises from the price sensitivity of investments to changes in interest rates. Interest represents the greatest portion of an investment's return for most fixed maturity securities in stable interest rate environments. The changes in the fair value of such investments are inversely related to changes in market interest rates. As interest rates fall, the interest and dividend streams of existing fixed-rate investments become more valuable and fair values rise. As interest rates rise, the opposite effect occurs.
We work to mitigate our exposure to adverse interest rate movements through laddering the maturities of the fixed maturity investments and through maintaining cash and other short-term investments to assure sufficient liquidity to meet our obligations and to address reinvestment risk considerations. Due to the composition of our book of insurance business, we believe it is unlikely that we would encounter large surrender activity due to an interest rate increase that would force the disposal of fixed maturities at a loss. Additionally, USALSC is a member of the FHLB of Topeka, which provides access to liquidity and further reduces the likelihood of disposing of fixed maturities at a loss.
Credit Risk
We are exposed to credit risk through counterparties and within the investment portfolio. Credit risk relates to the uncertainty associated with an obligor's ability to make timely payments of principal and interest in accordance with the contractual terms of an instrument or contract. We manage our credit risk through established investment policies and guidelines which address the quality of creditors and counterparties, concentration limits, diversification practices and acceptable risk levels. These policies and guidelines are regularly reviewed and approved by senior management and USAC's Board of Directors.
Liquidity and Capital Resources
Premium income, deposits to policyholder account balances, investment income, and capital raising are the primary sources of funds while withdrawals of policyholder account balances, investment purchases, policy benefits in the form of claims, and operating expenses are the primary uses of funds. To ensure we will be able to pay future commitments, the funds received as premium payments and deposits are invested in primarily fixed income securities. Funds are invested with the intent that the income from investments, plus proceeds from maturities, will in the future meet our ongoing cash flow needs. The approach of matching asset and liability durations and yields requires an appropriate mix of investments. Our investments consist primarily of marketable debt securities that could be readily converted to cash for liquidity needs. Cash flow projections and cash flow tests under various market interest scenarios are also performed annually to assist in evaluating liquidity needs and adequacy. The Company has one past due loan with principal in the amount of $755,663 and accrued interest of $14,005. The Company does not anticipate this to have a material impact on our financial condition or liquidity. As a member of the Federal Home Loan Bank, USALSC has immediate access to additional cash liquidity, if needed.
Net cash provided by operating activities was $9,175,556 for the year ended December 31, 2024. The primary sources of cash from operating activities were premiums received from policyholders as well as investment income. The primary uses of cash for operating activities were for payments of commissions to agents and settlement of policy liabilities. Net cash used in investing activities was $9,471,842. The primary uses of cash was purchases of fixed maturity, mortgage, and equity investments. Cash used by financing activities was $1,782,069. The primary uses of cash were withdrawals on deposit-type contracts.
At December 31, 2024, we had cash and cash equivalents totaling $6,903,783. We believe that our existing cash and cash equivalents are sufficient to fund the anticipated operating expenses and capital expenditures for the foreseeable future. We have based this estimate upon assumptions that may prove to be wrong and we could use our capital resources sooner than we currently expect. The growth of USALSC, our primary insurance subsidiary, is uncertain and may require additional capital as it continues to grow.
Cash flow from insurance activities is a non-GAAP financial measure. Cash flow from insurance activities combines cash flow from operations with the net cash received from deposit type contracts to show the impact of our insurance operations on our cash flows. Cash flow from deposit type contracts is primarily made up of funds received into our annuity products. The following table reconciles cash flow from operations to cash flow from insurance activities:
Cash Flow
Net Cash Flow
Cash Flow
From
From Deposit
from Insurance
Year
Operations
Type Contracts
Activities
2,099,401
4,592,576
$ 6,691,977
3,411,873
2,050,078
$ 5,461,951
4,787,903
2,145,995
$ 6,933,898
7,441,585
(3,942,581 )
$ 3,499,004
9,175,556
(2,034,236 )
$ 7,141,320
The following chart and graph illustrate our five-year trend of cash flow from insurance activities:
Impact of Inflation
Insurance premiums are established before the amount of losses, or the extent to which inflation may affect such losses and expenses, are known. We attempt, in establishing premiums, to anticipate the potential impact of inflation. If, for competitive reasons, premiums cannot be increased to anticipate inflation, this cost would be absorbed by us. Inflation also affects the rate of investment return on the investment portfolio with a corresponding effect on investment income.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a “smaller reporting company”, the Company is not required to provide disclosure pursuant to this item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The consolidated financial statements are included as part of this reporting beginning on page.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Crowe LLP ("Crowe") served as the Company's auditor for the years end December 31, 2024 and 2023. There are not and have not been any disagreements between USAC and its auditor, Crowe, LLP, on any matter of accounting principles, practices or financial statement disclosure.

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A.
CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls
We have established disclosure controls and procedures to ensure, among other things, material information relating to our Company, including our consolidated subsidiaries, is made known to our officers who certify our financial reports and to the other members of our senior management and the Board of Directors.
There were no changes to the Company’s internal control over financial reporting as defined in Exchange Act Rule 13a-15(f) during the year ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s control over financial reporting.
Management’s Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining an adequate system of internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. The Company’s system is designed to provide reasonable assurance to management and our Board of Directors regarding preparation of reliable published financial statements and safeguarding of our assets.
The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2024. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Intergrated Framework (2013).
There are inherent limitations to the effectiveness of any system of internal control over financial reporting, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective internal control over financial reporting controls can only provide reasonable assurance of achieving their control objectives.
This annual report does not include an audit attestation report from our registered public accounting firm on the Company’s internal control over financial reporting. Management's report was not subject to attestation by our independent registered public accounting firm due to the rules of the SEC for non-accelerated filers.

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ITEM 9B. OTHER INFORMATION
ITEM 9B.
OTHER INFORMATION
(a) During the twelve months ended December 31, 2024, none our directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.
(b) The Company has not adopted an insider trading policy governing the purchase, sale, or other disposition of the Company's securities by its officers, directors, and significant shareholders. The Company believes such a policy is not necessary as there is no trading market for the Company's securities.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by this item is set forth under the captions “Proposal One-Election of Directors,” “Corporate Governance,” “Executive Officers” and “Beneficial Ownership Reporting Compliance” in our definitive proxy statement to be filed in connection with our 2025 annual stockholders’ meeting (“2025 Proxy Statement”) and is incorporated herein by reference.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11.
EXECUTIVE COMPENSATION
The information required by this item is set forth under the captions “Director and Management Compensation” in our 2025 Proxy Statement and is incorporated herein by reference.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The information required by this item is set forth under the captions “Security Ownership” in our 2025 Proxy Statement and is incorporated herein by reference.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
The information required by this item is set forth under the captions “Certain Relationships and Related Parties” in our 2025 Proxy Statement and is incorporated herein by reference.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item is set forth under the caption “Principal Accountant Fees and Services” in our 2025 Proxy Statement and is incorporated herein by reference.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(1)
Consolidated financial statements:
The list of financial statements filed with this Annual Report on Form 10-K is provided on page.
FINANCIAL STATEMENT SCHEDULES
We have omitted schedules required by applicable SEC accounting regulations because they are either not required under the related instructions, are inapplicable, or we present the required information in the financial statements or notes thereto.
Exhibit Index
2.1
Plan and Agreement of Merger amount Northern Plains Capital Corporation, US Alliance Corporation and Acquisition Merger Sub, Inc., filed as Exhibit 2.1 to the Company's Registration Statement on Form S-4 filed on June 1, 2017 (File No. 333-218389), is incorporated herein by reference as Exhibit 2.1.
2.2
Amendment dated May 21, 2017 to Plan and Agreement of Merger among Northern Plains Capital Corporation, US Alliance Corporation and Acquisition Merger Sub, Inc., filed as Exhibit 2.2 to the Company's Registration Statement on Form S-4 filed on June 1, 2017 (File No. 333-218389), is incorporated herein by reference as Exhibit 2.2.
2.3
Stock Purchase Agreement dated October 11, 2018 between Great Western Insurance Company and US Alliance Life and Security Company, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 16, 2018 (File No. 000-55627), is incorporated herein by reference as Exhibit 2.3.
2.4
Articles of Merger dated December 29, 2023 merging Dakota Capital Life Insurance Company with and into US Alliance Life and Security Company, filed as Exhibit 2.4 to the Company’s Annual Report on Form 10-K filed on April 1, 2024 (File No. 000-55627) is incorporated herein by reference as Exhibit 2.4.
3.1
Articles of Incorporation of US Alliance Corporation (filed as Exhibit 3.1 to the Company’s Registration Statement on Form 10 filed on May 2, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.1.
3.1.1
First Amendment to the Articles of Incorporation of US Alliance Corporation, filed as Exhibit 3.1.1 to the Company’s Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.1.1.
3.1.2
Second Amendment to the Articles of Incorporation of US Alliance Corporation, filed as Exhibit 3.1.2 to the Company’s Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.1.2.
3.2
Bylaws of US Alliance Corporation (filed as Exhibit 3.2 to the Company’s Registration Statement on Form 10 filed on May 2, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.2.
3.2.1
Amendment No. 1 to the Bylaws of US Alliance Corporation, filed as Exhibit 3.2.1 to the Company’s Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.2.1.
4.1
Form of Warrant to Purchase Common Shares of US Alliance Corporation, filed as Exhibit 4.1 to the Company’s Registration Statement on Form 10 filed on May 2, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 4.1.
4.2
Description of US Alliance Corporation’s Securities Registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, filed as Exhibit 4.2 to the Company’s Annual Report on Form 10-K filed on February 2, 2020, (File No. 000-55627), is incorporated herein by reference as Exhibit 4.2.
4.3 Restricted Stock Agreement dated December 11, 2024 between US Alliance Corporation, Inc. and John Helms, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on December 18, 2024 (filed No. 000-55627, is incorporated herein by reference as Exhibit 4.3
4.4 Restricted Stock Agreement dated December 11, 2024 between US Alliance Corporation, Inc. and William Graves, filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on December 18, 2024 (filed No. 000-55627, is incorporated herein by reference as Exhibit 4.4
4.5 Restricted Stock Agreement dated December 11, 2024 between US Alliance Corporation, Inc. and James Poolman, filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on December 18, 2024 (filed No. 000-55627, is incorporated herein by reference as Exhibit 4.5.
4.6 Restricted Stock Agreement dated December 11, 2024 between US Alliance Corporation, Inc. and Juliann Mazachek, filed as Exhibit 10.5 to the Company’s Current Report on Form 8-K filed on December 18, 2024 (filed No. 000-55627, is incorporated herein by reference as Exhibit 4.6.
10.1
Automatic Yearly Term Reinsurance Agreement between US Alliance Life and Security Company and General Re Life Insurance Corporation, filed as Exhibit 10.2 to the amended Company's Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.1.
10.2
Group Long Term and Short Term Disability Reinsurance Agreement between US Alliance Life and Security Company and Reliance Standard Life Insurance Company, DBA Custom Disability Solutions, filed as Exhibit 10.3 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.2.
10.3
Automatic Reinsurance Agreement between US Alliance Life and Security Company and Optimum Re Insurance Company (schedules omitted), filed as Exhibit 10.4 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.3.
10.4
Bulk Reinsurance Agreement between US Alliance Life and Security Company and Optimum Re Insurance Company, filed as Exhibit 10.5 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.5.
10.5
Group Medical Reinsurance Agreement between US Alliance Life and Security Company and Unified Life Insurance Company, filed as Exhibit 10.6 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.5.
10.6.1
Investment Management Agreement between US Alliance Investment Corporation and General Re - New England Asset Management, Inc., filed as Exhibit 10.7.1 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.6.1.
10.6.2
Subadvisory Investment Management Agreement between US Alliance Investment Corporation and General Re - New England Asset Management, Inc., filed as Exhibit 10.17.2 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.6.2.
10.7
Third Party Insurance Services Agreement between US Alliance Life and Security Company and Dakota Capital Life Insurance Company, as amended, filed as Exhibit 10.8 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.7.
10.8
Critical Illness Reinsurance Treaty, Effective 9/1/16 between US Alliance Life and Security Company and General Re Life Corporation, filed as Exhibit 10.9 to the Company's Annual Report on Form 10-K filed February 17, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.8.
10.9
Critical Illness Reinsurance Treaty, Effective 9/1/16 between US Alliance Life and Security Company and Unified Life Insurance Company, filed as Exhibit 10.10 to the Company's Annual Report on Form 10-K filed February 17, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.9.
10.10
Coinsurance Agreement between US Alliance Life and Security Company and American Life & Security Company of Nebraska effective as of September 30, 2017, filed as Exhibit 10.11 to the Company Annual Report filed on February 21, 2018 (File No. 000-55627) is incorporated herein by reference as Exhibit 10.10
10.10.1
Amendment No. 1 to ALSC 2017 Coinsurance Agreement effective as of June 1, 2020, filed as Exhibit 10.10.1 to the Company's Annual Report on Form 10-K filed on February 23, 2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.10.1.
10.10.2
Second Amendment to ALSC 2017 Coinsurance Agreement effective as of December 31, 2020, filed as Exhibit 10.10.2 to the Company's Annual Report on Form 10-K filed on February 23, 2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.10.2.
10.11*
Employment Agreement dated June 4, 2018 between US Alliance Corporation and Jeffrey Brown, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on June 7, 2018 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.11.
10.12
Coinsurance Agreement effective January 1, 2020 between US Alliance Life and Security Company and American Life & Security Corporation, filed as Exhibit 10.12 to the Company’s Quarterly Report on Form 10-Q filed on May 12, 2020, (File No. 000-55627), is incorporated herein by reference as Exhibit 10.12.
10.13
Commercial Real Estate Contract dated November 16, 2020 between Dakota Life Insurance Company and Trinity Life Insurance Company, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 20, 2020, (File No. 000-55627), is incorporated herein by reference as Exhibit 10.13.
10.14
Assumption Reinsurance Agreement effective December 31, 2020 between Dakota Life Insurance Company and American Life & Security Corporation, filed as Exhibit 10.14 to the Company's Annual Report on Form 10-K filed on February 23, 2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.14.
10.15*
Employment Agreement dated March 15, 2021 between US Alliance Corporation and Jeffrey Brown, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 18, 2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.15.
10.15.1* Amendment to Employment Agreement dated April 12, 2024 between US Alliance Corporation and Jeffrey Brown, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 12, 2024 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.15.1.
10.16*
Employment Agreement dated September 28, 2021 between US Alliance Corporation and Jack Brier, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on October 1, 2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.16.
10.16.1* Amendment to Employment Agreement dated January 1, 2023 between US Alliance Corporation and Jack Brier, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 6, 2023 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.16.1.
10.16.2* Amendment to Employment Agreement dated December 16, 2024 between US Alliance Corporation and Jack Brier, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 16, 2024 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.16.2.
10.21
Life Insurance and Annuity Reinsurance and Administration Agreement dated December 31, 2023 between US Alliance Life and Security Company and Lewer Life Insurance LLIC, filed as Exhibit 10.18 to the Company’s Annual Report on Form 10-K (File No. 000-55627), is incorporated herein by reference as Exhibit 10.21.
21.1**
List of Subsidiaries
24.1
Power of Attorney (contained in the signature page herein)
31.1**
Certification of Chief Executive Officer of US Alliance Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2**
Certification of Principal Financial Officer of US Alliance Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**
Certifications of the Chief Executive Officer of US Alliance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**
Certifications of the Principal Financial Officer of US Alliance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS***
Inline XBRL Instance
101.SCH***
Inline XBRL Taxonomy Extension Schema
101.CAL***
Inline XBRL Taxonomy Extension Calculation
101.DEF***
Inline XBRL Taxonomy Extension Definition
101.LAB***
Inline XBRL Taxonomy Extension Labels
101.PRE***
Inline XBRL Taxonomy Extension Presentation
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
* Management or Compensatory Contract
** Filed herewith
*** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.